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.