Mercedes 2012 Annual Report Download - page 215

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18. Inventories
Inventories are comprised as shown in table  7. 38 .
The amount of write-down of inventories to net realizable
value recognized as expense in cost of sales was €294 million
in 2012 (2011: €317 million). Inventories that are expected
to be turned over after more than twelve months amounted
to €691 million at December 31, 2012 (2011: €726 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 €584 million (2011: €494 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 €70 million in 2012 (2011: €89 million). The
utilization of these assets occurs in the context of the normal
business cycle.
19. Trade receivables
Trade receivables are comprised as shown in table  7.39.
As of December 31, 2012, €117 million of the trade receivables
mature after more than one year (2011: €118 million).
Allowances. Table  7.4 0 includes changes in the allowance
account for trade receivables.
The total expenses relating to the impairment losses
of trade receivables amounted to €129 million in 2012
(2011: €165 million).
Credit risks. Table  7. 41 gives an overview of credit risks
included in trade receivables.
Receivables not subject to an individual impairment
assessment are grouped and subject to collective impairment
allowances to cover credit losses.
Further information on financial risk and types of risk
is provided in Note 31.
Inventories
At December 31,
2012 2011
In millions of euros
Raw materials and manufacturing supplies 2,137 1,802
Work in progress 2,292 2,451
Finished goods, parts and products held for resale 13,235 12,737
Advance payments to suppliers 56 91
17,720 17,081
7. 3 8
Trade receivables
At December 31,
2012 2011
In millions of euros
Gross carrying amount 7,945 8,316
Allowances for doubtful accounts -402 -467
Carrying amount, net 7,543 7,849
7. 3 9
Changes in the allowance account for trade receivables
2012 2011
In millions of euros
Balance at January 1 467 406
Charged to costs and expenses 61 117
Amounts written off-123 -82
Currency translation and other changes -3 26
Balance at December 31 402 467
7. 4 0
Credit risks included in trade receivables
At December 31,
2012 2011
In millions of euros
Receivables neither past due nor impaired
individually
5,137
5,083
Receivables past due, not impaired individually
less than 30 days 631 668
30 to 59 days 132 106
60 to 89 days 47 36
90 to 119 days 22 21
120 days or more 53 84
Total 885 915
Receivables impaired individually 1,521 1,851
Carrying amount, net 7,543 7,849
7. 41