22. Trade Accounts Receivable

Trade accounts receivable less impairment losses amounted to €9,933 million (2014: €9,097 million) on the closing date and were comprised as follows:

Trade Accounts Receivable

 

 

2014

 

2015

 

 

€ million

 

€ million

Trade accounts receivable (before impairments)

 

9,330

 

10,181

Accumulated impairment losses

 

(233)

 

(248)

Carrying amount, December 31

 

9,097

 

9,933

of which noncurrent

 

32

 

46

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

Impairments of Trade Accounts Receivable

 

 

2014

 

2015

 

 

€ million

 

€ million

Accumulated impairment losses, January 1

 

(200)

 

(233)

Impairment losses in the reporting period

 

(73)

 

(84)

Impairment loss reversals or utilization

 

39

 

46

Exchange differences

 

1

 

23

Accumulated impairment losses, December 31

 

(233)

 

(248)

Trade accounts receivable amounting to €9,858 million (2014: €9,029 million) were not individually impaired. Of this amount, €1,251 million (2014: €1,105 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

 

 

 

up to 3 months

3 – 6 months

6 – 12 months

more than 12 months

 

 

 

 

€ million

 

€ million

 

€ million

€ million

€ million

€ million

 

€ million

December 31, 2015

 

9,933

 

8,607

 

823

202

109

117

 

75

December 31, 2014

 

9,097

 

7,924

 

738

165

85

117

 

68

The gross carrying amount of individually impaired trade accounts receivable was €245 million (2014: €217 million). The impairment losses recognized on these assets totaled €170 million (2014: €149 million), resulting in a net carrying amount of €75 million (2014: €68 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 2015 or 2014, 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 2015 totaled €168 million (2014: €183 million).

An excess-of-loss policy exists for the HealthCare subgroup as part of a global credit insurance program. More than 80% of the receivables of the HealthCare subgroup are insured up to a maximum total annual compensation payment of €100 million (2014: €100 million).

A further €559 million (2014: €459 million) of receivables was secured by advance payments, letters of credit or guarantees or by liens on land, buildings or harvest yields.