Trade Accounts Receivable

Trade accounts receivable less impairment losses amounted to €10,969 million (2015: €9,933 million) on the closing date and were comprised as follows:

Trade Accounts Receivable

 

 

2015

 

2016

 

 

€ million

 

€ million

Trade accounts receivable (before impairments)

 

10,181

 

11,377

Accumulated impairment losses

 

(248)

 

(408)

Carrying amount, December 31

 

9,933

 

10,969

of which noncurrent

 

46

 

144

Changes in impairment losses on trade accounts receivable were as follows:

Impairments of Trade Accounts Receivable

 

 

2015

 

2016

 

 

€ million

 

€ million

Accumulated impairment losses, January 1

 

(233)

 

(248)

Impairment losses in the reporting period

 

(84)

 

(165)

Impairment loss reversals or utilization

 

46

 

35

Exchange differences

 

23

 

(30)

Accumulated impairment losses, December 31

 

(248)

 

(408)

Trade accounts receivable amounting to €10,954 million (2015: €9,858 million) were not individually impaired. Of this amount, €1,161 million (2015: €1,251 million) was past due or due immediately on the closing date.

The amounts of impaired and past-due trade accounts receivable are summarized in the following table:

Impaired and Past-Due Trade Accounts Receivable

 

 

 

 

Of which neither impaired nor past due at the closing date

 

Of which unimpaired but past due at the closing date

 

Of which impaired at the closing date

Carrying amount
€ million

 

 

 

 

 

up to 3 months

3–6 months

6–12 months

more than 12 months

 

 

December 31, 2016

 

10,969

 

9,793

 

780

162

125

94

 

15

December 31, 2015

 

9,933

 

8,607

 

823

202

109

117

 

75

The gross carrying amount of individually impaired trade accounts receivable was €192 million (2015: €245 million). The impairment losses recognized on these assets totaled €177 million (2015: €170 million), resulting in a net carrying amount of €15 million (2015: €75 million).

The unimpaired receivables were deemed to be collectible on the basis of established credit management processes and individual assessments of customer risks. Recognized impairment losses included an appropriate allowance for the default risk as of the end of the reporting period.

Receivables from government health service institutions, especially in Greece, Italy, Portugal and Spain, are under special observation in view of the government debt crisis. Although there were no material defaults on such receivables in 2016 or 2015, it is possible that future developments in these countries could result in payment delays and / or defaults. This could necessitate the recognition of impairment losses due to new occurrences. Trade accounts receivable from government health service institutions in the above countries at the end of 2016 totaled €134 million (2015: €168 million).

An excess-of-loss policy exists for the Pharmaceuticals, Consumer Health and Animal Health segments as part of a global credit insurance program. More than 80% of the receivables of these segments are insured up to a maximum total annual compensation payment of €150 million (2015: €100 million). A global excess-of-loss policy has also existed for the Crop Science segment since January 2016. In this global credit insurance program, more than 80% of this segment’s receivables are insured up to a maximum total annual compensation payment of €300 million.

A further €743 million (2015: €559 million) of receivables was secured by advance payments, letters of credit or guarantees or by liens on land, buildings or harvest yields.