|
(in millions of euros) |
2017 | 2016 | 2015 |
|
Net book value of trade receivables in the opening balance |
4,964 | 4,876 | 4,612 |
|
Business related variations |
267 | (87) | 59 |
|
Changes in the scope of consolidation |
6 | 78 | 189 |
|
Translation adjustment |
(33) | (122) | 21 |
|
Reclassifications and other items (1) |
(29) | 219 | (5) |
|
Reclassification to assets held for sale |
- |
- |
- |
|
Net book value of trade receivables in the closing balance |
5,175 | 4,964 | 4,876 |
|
(1) In 2016, included foremost receivables resulting from financial lease offers on firm's equipments proposed by Orange Lease, which have been reclassified in “trade receivables” to uniform the treatment of the offers resulting from deferred payment (see accounting policies). |
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Following the commercialization to its clients of sales offers to buy mobile telephones with payment by installments over 24 months, in 2015 Orange Espagne implemented a sale without recourse program for the related receivables. Those receivables are derecognized from the balance sheet. The receivables sold as at December 31, 2017 generated an early receipt of approximately 84 million euros (approximately 185 million euros at December 31, 2016 and 100 million euros at December 31, 2015).
|
(in millions of euros) |
December 31, 2017 |
December 31, 2016 |
December 31, 2015 |
|
Trade receivables depreciated according to their age |
1,078 | 905 | 920 |
|
Trade receivables depreciated according to other criteria |
443 | 568 | 466 |
|
Net trade receivables past due |
1,521 | 1,473 | 1,386 |
|
Not past due |
3,655 | 3,491 | 3,490 |
|
Net trade receivables |
5,175 | 4,964 | 4,876 |
|
o/w short-term trade receivables |
4,851 | 4,683 | 4,773 |
|
o/w long-term trade receivables (1) |
324 | 281 | 103 |
|
o/w net trade receivables from telecoms activities |
5,175 | 4,964 | 4,876 |
|
o/w net trade receivables from Orange Bank |
- |
- |
- |
|
(1) Includes receivables from sales of handset with payment on instalments that are payable in more than 12 months and receivables from financial lease offers on firm's equipment (see accounting policies). |
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The following table provides an aging balance at closure of the net trade receivables which are past due and impaired according to their age:
|
(in millions of euros) |
December 31, 2017 |
December 31, 2016 |
December 31, 2015 |
|
Past due - under 180 days |
723 | 569 | 585 |
|
Past due - 180 to 360 days (1) |
140 | 143 | 169 |
|
Past due - over 360 days (1) |
215 | 193 | 166 |
|
Total net trade receivables past due and depreciated according to their age |
1,078 | 905 | 920 |
|
(1) Mainly includes receivables from government departments, local authorities and telecommunications operators. |
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The table below provides an analysis of the change in impairment for trade receivables in the statement of financial position:
|
(in millions of euros) |
2017 | 2016 | 2015 |
|
Allowances on trade receivables in the opening balance |
(774) | (820) | (661) |
|
Net addition with impact on income statement |
(251) | (275) | (279) |
|
Losses on trade receivables |
257 | 315 | 390 |
|
Changes in the scope of consolidation |
(1) | (3) | (233) |
|
Translation adjustment |
7 | 18 | (5) |
|
Reclassifications and other items |
2 | (9) | (32) |
|
Reclassification to assets held for sale |
- |
- |
- |
|
Allowances on trade receivables in the closing balance |
(760) | (774) | (820) |
|
The trade receivables are mainly short-term with no stated interest rate and are measured at original invoice amount. Those receivables which include deferred payment terms over 12 or 24 months for the benefit of customers are discounted and classified as current items. Receivables from financial lease offers on firms’ equipment are recognized as current operating receivables because they are acquired in the normal course of business. Impairment of trade receivables is based on two methods: ■ a collective statistical method: this is based on historical losses and leads to a separate impairment rate for each aging balance category. This analysis is performed over a homogenous group of receivables with similar credit characteristics because they belong to a customer category (mass-market, small offices and home offices); ■ a stand-alone method: the assessment of impairment probability and its amount are based on a set of relevant qualitative factors (ageing of late payment, other balances with the counterpart, rating from independent agencies, geographical area). This method is used for carriers and operators (national and international), local, regional and national authorities and for large accounts of Enterprise Communication Services. Impairment losses identified for a group of receivables represent the step preceding impairment identification for individual receivables. When information is available (clients in bankruptcy or subject to equivalent judicial proceedings), these receivables are then excluded from the statistical impairment database and individually impaired. The trade receivables may be part of securitization programs. When they are sold to consolidated special purpose entities, they are still recognized in the statement of financial position. Other sales to financial institutions may lead to receivables de-recognition. |