E3. Trade receivables

AP Accounting principles

Trade receivables are recognized at amortized cost after a provision is made for doubtful receivables. The provision for doubtful receivables is based on an individual assessment of each customer. Any impairment of trade receivables affects Essity’s operating profit in the form of a selling expense. Essity’s trade receivables are generally current and are not discounted.

Trade receivables

SEKm

2017

2016

2015

Trade receivables, gross

17,864

16,116

15,017

Provision to reserves for doubtful receivables

–257

–273

–209

BS TE3:1 Total

17,607

15,843

14,808

TE3:1 Analysis of credit risk exposure in trade receivables

SEKm

2017

2016

2015

Trade receivables neither overdue nor impaired

15,529

14,175

13,432

Trade receivables overdue but not impaired

 

 

 

< 30 days

1,389

1,161

897

30–90 days

425

276

245

> 90 days

264

231

234

Trade receivables overdue but not impaired

2,078

1,668

1,376

Total

17,607

15,843

14,808

Essity’s customer structure is dispersed, with customers in many different areas of business. In 2017, Essity’s ten largest customers accounted for 22.9% (26.6; 26.4) of Essity’s sales. The single largest customer accounted for 3.6% (4.0) of sales. More information is available in the Risks and risk management section.

In total, the Group has collateral mainly in the form of credit insurance taken out amounting to SEK 1,329m (867; 1,593). Of this amount, SEK 203m (59; 767) relates to the category Trade receivables overdue but not impaired.

Provision to reserves for doubtful receivables

SEKm

2017

2016

2015

Value, January 1

–273

–209

–192

Provision for possible loan losses

–61

–95

–67

Confirmed losses

12

21

38

Increase due to acquisitions

–53

Decrease due to reversal of provisions for possible loan losses

116

15

4

Translation differences

2

–5

8

Value, December 31

–257

–273

–209

The expense for the period for doubtful receivables amounted to SEK –55m (–80; –63).