18 – Receivables and miscellaneous assets
Other receivables and miscellaneous assets (million €) |
|||||
|
|
December 31, 2016 |
December 31, 2015 |
||
---|---|---|---|---|---|
|
|
Noncurrent |
Current |
Noncurrent |
Current |
Loans and interest receivables |
|
568 |
250 |
811 |
194 |
Derivatives with positive fair values |
|
176 |
342 |
384 |
474 |
Receivables from finance leases |
|
29 |
5 |
33 |
8 |
Insurance compensation receivables |
|
6 |
14 |
– |
16 |
Miscellaneous |
|
126 |
406 |
130 |
357 |
Other receivables and assets which qualify as financial instruments |
|
905 |
1,017 |
1,358 |
1,049 |
Prepaid expenses |
|
62 |
258 |
61 |
176 |
Defined benefit assets |
|
66 |
– |
133 |
– |
Tax refund claims |
|
114 |
747 |
102 |
875 |
Employee receivables |
|
– |
10 |
– |
21 |
Precious metal trading items |
|
– |
690 |
– |
663 |
Miscellaneous |
|
63 |
356 |
66 |
311 |
Other receivables and assets which do not qualify as financial instruments |
|
305 |
2,061 |
362 |
2,046 |
Other receivables and miscellaneous assets |
|
1,210 |
3,078 |
1,720 |
3,095 |
The decline in noncurrent loans and interest receivables in 2016 was predominantly due to the reduction of loans granted by WIGA Transport Beteiligungs-GmbH & Co. KG, Kassel, Germany, to NEL Gastransport GmbH, Kassel, Germany, and GASCADE Gastransport GmbH, Kassel, Germany, by €139 million to €259 million to finance the pipeline network. Furthermore, loans granted by BASF Belgium Coordination Center Comm. V., Antwerp, Belgium, mainly to finance the business expansion of Asian companies, were reduced by €72 million to €144 million in 2016. As in the previous year, 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 million.
The reduction of noncurrent derivatives positive fair market values primarily affected the market valuation of combined interest rate and currency swaps. The change in current derivatives with positive fair market values was largely attributable to the lower fair values of precious metal and foreign currency derivatives.
Prepaid expenses in 2016 included prepayments of €64 million related to operating activities compared with €41 million in 2015, as well as €54 million in prepayments for insurance in 2016 compared with €30 million in 2015. Prepayments for license costs increased from €36 million to €48 million in 2016.
The reduction in current tax refund claims can largely be traced back to the settlement of open tax income receivables.
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.
Valuation allowances for receivables 2016 (million €) |
|||||||
|
|
Balance as of January 1, 2016 |
Additions recognized in income |
Reversals recognized in income |
Additions not recognized in income |
Reversals not recognized in income |
Balance as of December 31, 2016 |
---|---|---|---|---|---|---|---|
Accounts receivable, trade |
|
298 |
106 |
35 |
40 |
39 |
370 |
Other receivables |
|
75 |
27 |
1 |
24 |
7 |
118 |
Total |
|
373 |
133 |
36 |
64 |
46 |
488 |
Valuation allowances for receivables 2015 (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 |
Changes recognized in income contained individual valuation allowances, group-wise individual valuation allowances and valuation allowances due to transfer risks.
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 2016, individual valuation allowances of €71 million were recognized for accounts receivable, trade, and valuation allowances of €22 million were reversed. In 2015, individual valuation allowances of €57 million were recognized for trade accounts receivable and valuation allowances of €17 million were reversed.
At BASF, a 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. No compensation claims were incurred in either 2016 or 2015.
In 2016, individual valuation allowances of €27 million were recognized for other receivables and €1 million reversed. In 2015, individual valuation allowances of €18 million were recognized for other receivables.
Aging analysis of accounts receivable, trade (million €) |
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|
|
December 31, 2016 |
December 31, 2015 |
||
---|---|---|---|---|---|
|
|
Gross value |
Valuation allowances |
Gross value |
Valuation allowances |
Not yet due |
|
10,295 |
26 |
8,822 |
22 |
Past due less than 30 days |
|
381 |
2 |
435 |
3 |
Past due between 30 and 89 days |
|
159 |
8 |
135 |
8 |
Past due more than 90 days |
|
487 |
334 |
422 |
265 |
Total |
|
11,322 |
370 |
9,814 |
298 |
As of December 31, 2016, there were no material other receivables classified as financial instruments that were overdue and for which no valuation allowance was made.