Mercedes 2009 Annual Report Download - page 208

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In 2009, a risk sharing agreement between Daimler and its
independent dealers in connection with residual values was modi-
fied, which also affected existing lease contracts accounted for
as finance leases and shown under retail receivables. Due to these
contractual changes, the affected lease contracts were reclassified
as operating leases. In consequence, these lease contracts with
a carrying amount of €1.2 billion are reported under equipment
on operating leases.
All cash flow effects attributable to receivables from financial
services are presented within cash provided by (used for) operat-
ing activities in the consolidated statement of cash flows.
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 €853 million (2008: €730
million; 2007: €487 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 other-
wise be past due or impaired as of December 31, 2009 was €135
million (2008: €222 million).
Further information on financial risks and nature of risks is
provided in Note 30.
Finance leases. Finance leases consist of sales-types leases of
vehicles to the Group’s direct retail customers and of direct-
financing leases of vehicles to customers of the Group’s indepen-
dent dealers including leveraged leases of non-automotive
assets to third parties.
Maturities of the finance lease contracts are comprised as follows:
2007
20082009
934
850
(446)
(165)
–
(5)
1,168
924
457
(321)
(153)
(310)
(3)
594
594
712
(237)
(131)
–
(4)
934
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,
2008
2009
1,219
442
121
78
184
2,044
1,164
38,478
35,270 39,027
1,458
443
127
59
127
2,214
1,146
42,387
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 €
At December 31, 2008
Total
> 5 years
1 year up to
5 years< 1 year
At December 31, 2009
Total> 5 years
1 year up to
5 years< 1 year
13,633
662
14,295
(2,123)
12,172
(481)
11,691
1,869
147
2,016
(334)
1,682
(6)
1,676
7,114
322
7,436
(1,168)
6,268
(284)
5,984
4,650
193
4,843
(621)
4,222
(191)
4,031
18,802
713
19,515
(3,681)
15,834
(532)
15,302
3,824
260
4,084
(1,325)
2,759
(4)
2,755
9,825
331
10,156
(1,626)
8,530
(393)
8,137
5,153
122
5,275
(730)
4,545
(135)
4,410
in millions of €
Contractual future lease payments
Unguaranteed residual values
Gross investment
Unearned finance income
Gross carrying amount
Allowances for doubtful accounts
Carrying amount, net