Mercedes 2006 Annual Report Download - page 188

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16. Trade Receivables
As of December 31, 2006, €81 million of the trade receivables
mature after more than one year (2005: €115 million).
Changes in the allowance for doubtful accounts for trade
receivables were as follows:
17. Receivables from Financial Services
Receivables from financial services are comprised of the
following:
As of December 31, 2006, receivables from financial services
with a carrying amount of €29,585 million mature after more than
one year (2005: €37,896 million). Receivables from financial
services are generally secured by vehicles or other assets.
Types of receivables. Retail receivables include loans and finance
leases to end users of the Group’s products who purchased their
vehicles either from a dealer or directly from DaimlerChrysler.
Wholesale receivables represent loans for floor-plan financing
programs for vehicles sold to dealers by the Group’s automotive
businesses or loans for assets purchased by dealers from third
parties, primarily used vehicles traded in by dealers’ customers
or real estate such as dealer showrooms.
Other receivables mainly represent non-automotive assets from
contracts of the financial services business with third parties
(leveraged leases).
Presentation in the Consolidated Statements of Cash Flows.
Wholesale receivables from the sale of vehicles from the Group’s
inventory to independent dealers as well as retail receivables
from the sale of DaimlerChrysler’s vehicles directly to retail cus-
tomers relate to the sale of the Group’s inventory. The cash
flow effects of such receivables are presented as “net changes in
inventory-related receivables from financial services” within
the consolidated cash flows from operating activities. All cash flow
effects attributable to receivables from financial services that
are not related to the sale of inventory to DaimlerChrysler’s inde-
pendent dealers or direct customers are classified as investing
activities within the consolidated statements of cash flows.
Allowances. Changes in the allowance for doubtful accounts for
receivables from financial services were as follows:
At December 31,
2005
2006
7,835
(476)
7,359
8,135
(540)
7,595
Receivables from sales of goods and services
Allowance for doubtful accounts
(in millions of €)
Year ended December 31,
2004
20052006
540
25
(67)
(22)
476
591
41
(75)
(17)
540
587
49
(160)
115
591
Balance at beginning of year
Charged to costs and expenses
Amounts written off
Currency translation and
other changes
Balance at end of year
(in millions of €)
At December 31,
2005
2006
38,681
11,620
2,819
53,120
(786)
52,334
46,947
11,961
3,367
62,275
(1,174)
61,101
Receivables from:
Retail
Wholesale
Other
Allowance for doubtful accounts
(in millions of €)
Year ended December 31,
2004
20052006
1,174
392
(527)
(107)
(146)
786
1,107
559
(420)
(137)
65
1,174
1,265
467
(413)
(84)
(128)
1,107
Balance at beginning of year
Charged to costs and expenses
Amounts written off
Reversals
Currency translation and
other changes
Balance at end of year
(in millions of €)