Trade accounts receivable amounting to € 2,114.6 million (2011: € 2,328.3 million) only existed vis-à-vis third parties:
Trade accounts receivable past due were as follows:
| XLS |
|
|
|
|
|
€ million |
Dec. 31, 2012 |
Dec. 31, 2011 |
|
Neither past due nor impaired |
1,556.9 |
1,676.0 |
|
Past due, but not impaired |
|
|
|
up to 3 months |
210.5 |
196.5 |
|
up to 6 months |
24.7 |
29.2 |
|
up to 12 months |
13.3 |
17.7 |
|
up to 24 months |
6.6 |
7.6 |
|
over 2 year |
3.6 |
2.8 |
|
Impaired |
299.0 |
398.5 |
|
Book value |
2,114.6 |
2,328.3 |
The corresponding allowances developed as follows:
| XLS |
|
|
|
|
|
€ million |
2012 |
2011 |
|
January 1 |
–149.0 |
–58.9 |
|
Additions |
–68.3 |
–123.0 |
|
Reversals |
42.4 |
9.2 |
|
Utilizations |
20.6 |
23.6 |
|
Currency translation and other changes |
–0.5 |
0.1 |
|
December 31 |
–154.8 |
–149.0 |
Due to the large number of products we offer, trade accounts receivable exist vis-à-vis a large number of customers. This diversification helps to reduce risk with respect to potential defaults on receivables.
In addition, established credit management processes that take individual customer risks into account are used to assess the recoverability of receivables. If there are indications that individual trade accounts receivable are partly or fully impaired, corresponding allowances are recognized. Additions to allowances relate mainly to receivables from state hospitals and health care organizations in Italy, Spain, Greece and Portugal.
In the period from January 1 to December 31, 2012 trade receivables in Italy and Spain with a nominal value of € 256.9 million were sold for € 246.5 million. Previous write-downs in this context amounting to € 10.4 million were reversed and disclosed under other operating income. The sold receivables do not involve any further rights of recovery vis-à-vis Merck.
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