Mercedes 2008 Annual Report Download - page 177

Consolidated Financial Statements |Notes to Consolidated Financial Statements |173
Types of receivables. Retail receivables include loans and
finance leases to end users of the Group’s products who
purchased their vehicle either from a dealer or directly from
Daimler.
Wholesale receivables represent loans for floor financing pro-
grams for vehicles sold by the Group’s automotive businesses to
dealers or loans for assets purchased by dealers from third par-
ties, primarily used vehicles traded in by dealers’ customer or real
estate such as dealer showrooms.
Other receivables mainly represent non-automotive assets from
contracts of the financial services business with third parties.
Wholesale receivables from the sale of vehicles from the Group’s
inventory to independent dealers as well as retail receivables
from the sale of Daimler’s vehicles directly to retail customers
relate to the sale of the Group’s inventory. The cash flow effects
of such receivables are presented within the consolidated cash
provided by operating activities. All cash flow effects attributable
to receivables from financial services that are not related to the
sale of inventory to Daimler’s independent dealers or direct
customers are classified within cash used for investing activities.
Allowances. Changes in the allowance account for receivables
from financial services were as follows:
The total expense relating to impairment losses on receivables
from financial services amounted to €730 million (2007: €487
million; 2006: €465 million).
Credit risks. The following chart gives an overview of credit risks
included in receivables from financial services:
Receivables not subject to an individual impairment assessment
are grouped and subject to collective impairment allowances to
cover credit losses.
The carrying amount of receivables from financial services, of
which the terms have been renegotiated and that would otherwise
be past due or impaired as of December 31, 2008 was €222
million (2007: €63 million).
Further information on financial risks and nature of risks is pro-
vided in Note 30.
2006
20072008
594
712
(237)
(131)
–
(4)
934
1,305
462
(641)
(108)
–
(94)
924
924
457
(321)
(153)
(310)
(3)
594
in millions of €
Balance at January 1
Charged to costs and expenses
Amounts written off
Reversals
Disposal of Chrysler activities
Currency translation
and other changes
Balance at December 31
At December 31,
2007
2008
39,027
1,458
443
127
59
127
2,214
1,146
42,387
35,592
1,152
295
104
35
86
1,672
1,949
39,213
Receivables, neither past due nor impaired individually
Receivables past due, not impaired individually
less than 30 days
30 to 59 days
60 to 89 days
90 to 119 days
120 days or more
Total
Receivables impaired individually
Carrying amount, net
in millions of €