Mercedes 2015 Annual Report Download - page 223

230 E | CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Allowances
Changes in the allowance account for receivables from
financial services are shown in table  E.37.
The total expense from the impairment of receivables
from financial services amounted to €502 million in 2015
(2014: €433 million).
Credit risks
Table  E.38 provides 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.
Further information on financial risks and nature of risks
is provided in Note 32.
At December 31, 2015, receivables from financial services with
a carrying amount of €4,048 million (2014: €3,068 million)
were pledged as collateral for liabilities from ABS transactions
(see also Note 24).
Within the context of the ongoing concentration on the
automotive business, Daimler Financial Services sold
non-automotive assets that were subject to finance lease
contracts in 2015. This resulted in a cash inflow of
€73 million (2014: €69 million). In 2015, the sale of these
assets had no significant impact on the consolidated
statement of income and the EBIT of the Daimler Financial
Services segment (2014: €45 million).
15. Marketable debt securities
The marketable debt securities with a carrying amount
of €8,273 million (2014: €6,634 million) are part of the
Group’s liquidity management and comprise debt instruments
classified as available-for-sale. When a short-term liquidity
requirement is covered with quoted securities, those securities
are presented as current assets.
At December 31, 2015, a pool of marketable debt securities
with a carrying amount of €4 million (2014: €204 million)
was pledged as collateral, exclusively for liabilities to financial
institutions.
Further information on marketable debt securities
is provided in Note 31.
16. Other financial assets
The line item other financial assets presented in the
consolidated statement of financial position is comprised
as shown in table  E.39.
In 2015, equity instruments measured at cost with a carrying
amount of €3 million were sold (2014: €1 million). The gains
realized on the sales were €17 million in 2015 (2014: €5 million).
As of December 31, 2015, the Group did not generally intend
to dispose of any of the reported equity instruments.
Financial assets recognized at fair value through profit
or loss relate exclusively to derivative financial instruments
which are not used in hedge accounting.
At December 31, 2015, receivables with a carrying amount
of €633 million (2014: €302 million) were pledged as collateral
for liabilities (see also Note 24).
Further information on other financial assets is provided
in Note 31.
17. Other assets
Non-financial other assets are comprised as shown
in table  E.40.
Other expected reimbursements predominantly relate
to recovery claims from our suppliers in connection with
issued product warranties.
Changes in the allowance account
for receivables from financial services
2015 2014
In millions of euros
Balance at January 1 921 871
Charged to costs and expenses 500 421
Amounts written off -212 -208
Reversals -152 -166
Currency translation and other changes -41 3
Balance at December 31 1,016 921
E.37
Credit risks included in receivables
from financial services
At December 31,
2015 2014
In millions of euros
Receivables, neither past due
nor impaired individually
69,746
58,142
Receivables past due, not impaired individually
less than 30 days 1,534 1,517
30 to 59 days 287 330
60 to 89 days 71 75
90 to 119 days 41 42
120 days or more 95 116
Total 2,028 2,080
Receivables impaired individually 1,740 1,457
Net carrying amount 73,514 61,679
E.38