18 – Receivables and miscellaneous assets

Other receivables and miscellaneous assets (in million €)

 

 

December 31, 2015

December 31, 2014

 

 

Noncurrent

Current

Noncurrent

Current

Loans and interest receivables

 

811

194

855

173

Derivatives with positive fair values

 

384

474

177

656

Receivables from finance leases

 

33

8

39

4

Insurance compensation receivables

 

16

10

Other

 

130

357

88

839

Other receivables and assets which qualify as financial instruments

 

1,358

1,049

1,159

1,682

Prepaid expenses

 

61

176

49

238

Defined benefit assets

 

133

91

Tax refund claims

 

102

875

62

831

Employee receivables

 

21

11

29

Precious metal trading items

 

663

933

Other

 

66

311

126

319

Other receivables and assets which do not qualify as financial instruments

 

362

2,046

339

2,350

Other receivables and assets

 

1,720

3,095

1,498

4,032

Noncurrent loans and interest receivables in 2015 predominantly included loans granted by WIGA Transport Beteiligungs-GmbH & Co. KG, Kassel, Germany, to NEL Gastransport GmbH, Kassel, Germany, and GASCADE Gastransport GmbH, Kassel, Germany, in the amount of €398 million to finance the pipeline network, as well as loans granted by BASF Belgium Coordination Center Comm. V., Antwerp, Belgium, in the amount of €216 million mainly to finance the business expansion of Asian companies. This item also included receivables in favor of BASF SE from the BASF Pensionskasse arising from an agreement regarding the granting of profit participation capital in the amount of €80 milion.

The increase in noncurrent derivatives with positive fair values was largely attributable to the increase in interest rate and currency swaps. The decrease in current derivatives with positive fair values was mainly due to the disposal of WINGAS GmbH, Kassel, Germany. In connection with this, derivatives with positive fair values amounting to €158 million were derecognized. This was partially offset by increasing fair values of precious metal derivatives.

Prepaid expenses in 2015 included prepayments of €41 million related to operating activities compared with €58 million in 2014, as well as €36 million in prepayments for license costs in 2015 compared with €29 million in 2014. At €30 million, prepayments for insurance in 2015 remained at the prior-year level.

The increase in other receivables from tax refund claims was largely due to higher income tax receivables as a result of prepayments.

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. In comparison with the previous year, there was a decline particularly relating to the physical items.

Other receivables and assets which qualify as financial instruments include financial receivables, such as receivables from the sale of assets. The decrease in 2015 was primarily attributable to the settlement of the receivable in the amount of €200 million arising from the sale of Styrolution Holding GmbH.

Valuation allowances for receivables 2015 (in million €)

 

 

Balance as of January 1, 2015

Additions recognized in income

Reversals recognized in income

Additions not recognized in income

Reversals not recognized in income

Balance as of December 31, 2015

Accounts receivable, trade

 

337

80

41

33

111

298

Other receivables

 

108

18

19

70

75

Total

 

445

98

41

52

181

373

Valuation allowances for 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

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 has not observed any material changes in the credit quality of its receivables. In 2015, individual valuation allowances of €57 million were recognized for accounts receivable, trade, and valuation allowances of €17 million were reversed. In 2014, individual valuation allowances of €65 million were recognized for trade accounts receivable and valuation allowances of €23 million were reversed.

At BASF, a new comprehensive, global credit insurance program covers trade accounts receivable incurred since January 1, 2015. As part of a global excess of loss policy, an essential part of future bad debts of the BASF Group are insured. There were no compensation claims in 2015.

In 2015, individual valuation allowances of €18 million were recognized for other receivables. In 2014, individual valuation allowances of €1 million were recognized for other receivables and €1 million were reversed.

The recognition and reversal of individual valuation allowances for trade accounts receivable and other receivables are recognized in the income statement.

Aging analysis of accounts receivable, trade (in million €)

 

 

December 31, 2015

December 31, 2014

 

 

Gross value

Valuation allowances

Gross value

Valuation allowances

Not yet due

 

8,822

22

9,465

29

Past due less than 30 days

 

435

3

697

4

Past due between 30 and 89 days

 

135

8

136

3

Past due more than 90 days

 

422

265

424

301

Total

 

9,814

298

10,722

337

As of December 31, 2015, there were no material other receivables classified as financial instruments that were overdue and for which no valuation allowance was made.