18 – Receivables and miscellaneous assets

Other receivables and other assets (in million €)

 

 

December 31, 2014

December 31, 2013

 

 

noncurrent

current

noncurrent

current

Loans and interest receivables

 

855

173

315

765

Derivatives with positive fair values

 

177

656

90

329

Receivables from finance leases

 

39

4

29

Insurance compensation received

 

10

11

Other

 

88

839

154

501

Other receivables and assets which qualify as financial instruments

 

1,159

1,682

588

1,606

Prepaid expenses

 

49

238

49

204

Defined benefit assets

 

91

47

Tax refund claims

 

62

831

34

676

Employee receivables

 

11

29

15

53

Precious metal trading items

 

933

875

Other

 

126

319

144

300

Other receivables and assets which do not qualify as financial instruments

 

339

2,350

289

2,108

Other receivables and assets

 

1,498

4,032

877

3,714

The decrease in current loans and interest receivables was primarily due to the repayment of loans granted by W & G Beteiligungs-GmbH & Co. KG, Kassel, Germany, to NEL Gastransport GmbH, Kassel, Germany, and GASCADE Gastransport GmbH, Kassel, Germany, in the amount of €628 million. The issuance of new, noncurrent loans amounting to €697 million by WIGA Transport Beteiligungs-GmbH & Co. KG, Kassel, Germany, to NEL Gastransport GmbH and GASCADE Gastransport GmbH led to a corresponding increase in noncurrent loans and interest receivables.

The increase in derivatives with positive fair values is attributable to the increased fair value of commodity and currency derivatives.

In 2014, prepaid expenses included prepayments for operating expenses of €58 million (2013: €72 million) as well as prepayments for insurance premiums of €31 million (2013: €25 million).

The increase in other receivables from tax refund claims is largely due to the higher corporate income tax receivables of BASF SE and to foreign income tax receivables arising from a tax agreement between Germany and the Netherlands.

Precious metal trading items primarily comprise physical items and precious metal accounts as well as long positions in precious metals, which are largely hedged through sales or derivatives. The increase in precious metal trading items was primarly attributable to an increased amount of such items.

In other receivables which qualify as financial instruments, financial receivables such as receivables from the sale of assets are reported. The increase in 2014 was particularly due to the sale of BASF’s share in Styrolution to INEOS.

The item other receivables and assets which do not qualify as financial instruments remained at the prior year’s level.

Valuation allowances for doubtful receivables 2014 (in million €)

 

 

Balance as of January 1, 2014

Additions recognized in income

Reversals recognized in income

Additions not recognized in income

Reversals not recognized in income

Balance as of December 31, 2014

Accounts receivable, trade

 

326

86

47

24

52

337

Other receivables

 

101

1

1

25

18

108

Total

 

427

87

48

49

70

445

Valuation allowances for doubtful receivables 2013 (in million €)

 

 

Balance as of January 1, 2013

Additions recognized in income

Reversals recognized in income

Additions not recognized in income

Reversals not recognized in income

Balance as of December 31, 2013

Accounts receivable, trade

 

340

72

39

24

71

326

Other receivables

 

100

1

5

28

23

101

Total

 

440

73

44

52

94

427

A portion of receivables is covered by credit insurance.

The changes recognized in income contained individual valuation allowances, group-wise individual valuation allowances and valuation allowances due to transfer risks.

The changes not recognized in income were primarily related to changes in the scope of consolidation, translation adjustments and derecognition of uncollectible receivables.

Even in the current economic environment, BASF does not note any material changes in the credit quality of its receivables. In 2014, after being individually assessed for impairment, valuation allowances of €65 million were recognized for trade accounts receivable and €23 million were reversed. For other receivables, individual valuation allowances recognized in the income statement were added in the amount of €1 million and reversed in the amount of €1 million. In 2013, after being individually assessed for impairment, valuation allowances of €50 million were recognized for trade accounts receivable and €18 million were reversed. For other receivables, individual valuation allowances recognized in the income statement were added in the amount of €1 million and reversed in the amount of €5 million. Contractual conditions of receivables were not renegotiated to any major extent in 2014 and 2013.

Overdue trade accounts receivable which have not been individually assessed for impairment were included in credit insurance policies in the amount of €136 million on December 31, 2014 (December 31, 2013: €148 million).

Aging analysis of trade accounts receivable (in million €)

 

 

December 31, 2014

December 31, 2013

 

 

Gross value

Valuation allowances

Gross value

Valuation allowances

Not yet due

 

9,465

29

9,381

28

Past due less than 30 days

 

697

4

630

1

Past due between 30 and 89 days

 

136

3

132

8

Past due more than 90 days

 

424

301

416

289

Total

 

10,722

337

10,559

326

As of December 31, 2014, there were no material other receivables classified as financial instruments that were overdue and for which no valuation allowance was made.