UNITED BREWERIES CO INC | CIK:0000888746 |

Note 10 Trade and other receivables

 

The trade and other receivables are detailed as follows:

 

		As of December 31, 2017						As of December 31, 2016
		Current			Non current			Current			Non current
		ThCh$			ThCh$			ThCh$			ThCh$
Accounts receivables:
Chile operating segment			159,465,654			-			145,670,490			-
International business operating segment			62,587,204			-			63,602,409			-
Wines operating segment			40,284,490			-			42,958,093			-
Impairment loss estimate			(4,154,752)			-			(3,837,914)			-
Total commercial debtors			258,182,596			-			248,393,078			-
Others accounts receivables (1)			28,031,002			3,330,606			32,395,055			3,563,797
Total other accounts receivable			28,031,002			3,330,606			32,395,055			3,563,797
Total			286,213,598			3,330,606			280,788,133			3,563,797

 

 

The Company’s accounts receivable are denominated in the following currencies:

 

		As of December 31, 2017			As of December 31, 2016
		ThCh$			ThCh$
Chilean Peso			183,948,334			179,896,747
Argentine Peso			54,882,590			56,773,947
US Dollar			27,810,990			24,451,001
Euro			9,326,882			7,025,446
Unidad de Fomento			2,590,736			3,613,395
Uruguayan Peso			4,372,909			5,304,719
Paraguayan Guaraní			5,495,532			6,030,014
Others Currencies			1,116,231			1,256,661
Total			289,544,204			284,351,930

 

The detail of the accounts receivable maturities as of December 31, 2017, is detailed as follows:

 

								Overdue balances
		Total			Current balance			0 a 3 months			3 a 6 months			6 a 12 months			More than 12 months
		ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
Accounts receivables:
Chile operating segment			159,465,654			150,256,296			4,960,461			1,037,876			1,358,009			1,853,012
International business operating segment			62,587,204			56,180,536			4,978,409			595,173			318,551			514,535
Wines operating segment			40,284,490			36,270,918			3,347,465			219,135			224,487			222,485
Impairment loss estimate			(4,154,752)			-			(421,560)			(695,114)			(1,001,699)			(2,036,379)
Total commercial debtors			258,182,596			242,707,750			12,864,775			1,157,070			899,348			553,653
Others accounts receivables			28,031,002			27,768,858			97,052			165,092			-			-
Total other accounts receivable			28,031,002			27,768,858			97,052			165,092			-			-
Total current			286,213,598			270,476,608			12,961,827			1,322,162			899,348			553,653
Others accounts receivables			3,330,606			3,330,606			-			-			-			-
Total non-current			3,330,606			3,330,606			-			-			-			-

The detail of the accounts receivable maturities as of December 31, 2016, is detailed as follows:

 

								Overdue balances
		Total			Current balance			0 a 3 months			3 a 6 months			6 a 12 months			More than 12 months
		ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
Accounts receivables:
Chile operating segment			145,670,490			134,545,838			8,090,616			1,136,211			638,417			1,259,408
International business operating segment			63,602,409			55,231,951			7,521,071			130,299			275,300			443,788
Wines operating segment			42,958,093			39,499,120			3,028,707			208,628			137,671			83,967
Impairment loss estimate			(3,837,914)			-			(1,130,545)			(478,707)			(542,389)			(1,686,273)
Total commercial debtors			248,393,078			229,276,909			17,509,849			996,431			508,999			100,890
Others accounts receivables			32,395,055			31,917,416			186,213			291,426			-			-
Total other accounts receivable			32,395,055			31,917,416			186,213			291,426			-			-
Total current			280,788,133			261,194,325			17,696,062			1,287,857			508,999			100,890
Others accounts receivables			3,563,797			3,563,797			-			-			-			-
Total non-current			3,563,797			3,563,797			-			-			-			-

 

The Company markets its products through wholesale customers, retail and supermarket chains. As of December 31, 2017, the accounts receivable from the three most important supermarket chains in Chile and Argentina represent 28.1% (27.1% in 2016) of the total accounts receivable.

 

As indicated in the Risk management note (Note 5), for Credit Risk purposes, the Company acquires credit insurance policies to cover approximately 90% and 99% of the significant accounts receivable balances domestic and export, respectively, of the total of the account receivables. Regarding amounts aged more than 6 months and for which no allowances have been constituted, they correspond mainly to amounts already covered by the credit insurance policies. In addition, there are amounts overdue within ranges for which, in accordance with current policies are only partially impaired for, based on a case by case analysis.

 

For the above mentioned, management estimates that it does not require establishing allowances for further deterioration, in addition to those already constituted based on an aging analysis of these balances.

 

The write-offs of our doubtful clients are once all pre-trial and judicial, efforts have been made and exhausted all means of payment, with the proper demonstration of the insolvency of customers. This process of punishment normally takes more than 1 year.

 

The movement of the impairment losses provision for accounts receivable is as follows:

 

		As of December 31, 2017			As of December 31, 2016
		ThCh$			ThCh$
Balance at the beginning of year			(3,837,914)			(3,936,871)
Impairment estimate for accounts receivable			(1,948,264)			(1,352,722)
Uncollectible accounts			634,256			219,222
Add back of unused provisions			832,704			1,031,841
Effect of translation into presentation currency			164,466			200,616
Total			(4,154,752)			(3,837,914)