Mercedes 2010 Annual Report Download - page 204

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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
parties, 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.
All cash flow effects attributable to receivables from financial
services are presented within cash provided by/used for
operating activities in the consolidated statement of cash flows.
Allowances. Changes in the allowance account for receivables
from financial services were as follows:
2010 2009
In millions of euros
Balance at January 1 1,168 934
Charged to costs and expenses 534 850
Amounts written off -439 -446
Reversals -241 -165
Currency translation and other changes 62 -5
Balance at December 31 1,084 1,168
The total expense relating to impairment losses on receivables
from financial services amounted to €536 million in 2010
(2009: €853 million).
Credit risks. The following chart gives an overview of credit
risks included in receivables from financial services:
At December 31,
2010 2009
In millions of euros
Receivables, neither past due nor impaired
individually
37,827
35,270
Receivables past due, not impaired individually
less than 30 days 1,195 1,219
30 to 59 days 367 442
60 to 89 days 99 121
90 to 119 days 52 78
120 days or more 255 184
Total 1,968 2,044
Receivables impaired individually 1,235 1,164
Carrying amount, net 41,030 38,478
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, 2010 was
€399 million (2009: €260 million).
Further information on financial risks and nature of risks is pro-
vided in Note 31.
Finance leases. Finance leases consist of leasing contracts for
which all substantial risks and rewards incidental to the leasing
objects are transferred to the lessee.