Mercedes 2009 Annual Report Download - page 211

Consolidated Financial Statements |Notes to Consolidated Financial Statements |207
16. Inventories
The amount of write-down of inventories to net realizable value
recognized as expense in cost of sales was €299 million in 2009
(2008: €245 million; 2007: €111 million). The reversals of write-
down on inventories were €7 million in 2009 (2008: €5 million;
2007: €12 million). At December 31, 2009, €1,482 million (2008:
€1,894 million) of the total inventories were carried at net realiz-
able value. Inventories that are expected to be turned over after
more than twelve months amounted to €634 million at December
31, 2009 (2008: €583 million) and are primarily spare parts.
Based on the requirement to provide collateral for certain vested
employee benefits in Germany, the value of company cars
included in inventories at Daimler AG in an amount of €457 million
(2008: €464 million) was pledged as collateral to the Daimler
Pension Trust e.V.
The carrying amount of inventories recognized during the period
by taking possession of collateral held as security amounted
to €136 million in 2009 (2008: €102 million). The utilization of
these assets occurs in the context of normal business cycle.
17. Trade receivables
As of December 31, 2009, €8 million of the trade receivables
mature after more than one year (2008: €26 million).
Allowances. Changes in the allowance account for trade
receivables were as follows:
The total expenses relating to the impairment losses of trade
receivables amounted to €186 million (2008: €282 million;
2007: €126 million).
Credit risks. The following chart gives an overview of credit risks
included in trade receivables:
At December 31,
2008
2009
1,517
1,626
9,666
36
12,845
1,725
1,880
13,066
134
16,805
Raw materials and manufacturing supplies
Work-in-process
Finished goods, parts and products held for resale
Advance payments to suppliers
in millions of €
At December 31,
2008
2009
5,675
(390)
5,285
7,619
(620)
6,999
Gross carrying amount
Allowances for doubtful accounts
Carrying amount, net
in millions of €
2007
20082009
620
50
(281)
–
1
390
476
12
(78)
(22)
(11)
377
377
280
(42)
–
5
620
in millions of €
Balance at January 1
Charged to costs and expenses
Amounts written off
Disposal of Chrysler activities
Currency translation
and other changes
Balance at December 31
At December 31,
2008
2009
512
110
62
34
394
1,112
1,147
5,285
3,026 4,162
660
174
62
54
226
1,176
1,661
6,999
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 €