06 » Accounts Receivable
Accounts receivable consist mainly of the currencies US dollar, euro, and Chinese renminbi and are as follows:
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Collective loss allowance |
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Individual loss allowance |
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Total |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
Not yet due |
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Past due |
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Past due |
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|
|
|
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Not credit-impaired |
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Not credit-impaired |
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Not credit-impaired |
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Credit-impaired |
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Credit-impaired |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, gross |
|
2,073 |
|
428 |
|
60 |
|
63 |
|
135 |
|
2,759 |
Weighted average loss rate |
|
1.5% |
|
6.2% |
|
22.0% |
|
42.8% |
|
98.2% |
|
8.3% |
Loss allowance |
|
(31) |
|
(26) |
|
(13) |
|
(27) |
|
(133) |
|
(230) |
Accounts receivable, net |
|
2,042 |
|
402 |
|
47 |
|
36 |
|
2 |
|
2,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, gross |
|
1,900 |
|
277 |
|
15 |
|
40 |
|
150 |
|
2,383 |
Weighted average loss rate |
|
0.9% |
|
5.1% |
|
42.5% |
|
65.4% |
|
96.1% |
|
8.7% |
Loss allowance |
|
(17) |
|
(14) |
|
(6) |
|
(26) |
|
(145) |
|
(208) |
Accounts receivable, net |
|
1,884 |
|
263 |
|
8 |
|
14 |
|
6 |
|
2,175 |
|
|
2022 |
|
2021 |
|---|---|---|---|---|
Loss allowances at January 1 |
|
208 |
|
267 |
Net remeasurement of loss allowances |
|
33 |
|
(61) |
Write-offs charged against the loss allowance accounts |
|
(12) |
|
(3) |
Currency translation differences |
|
0 |
|
7 |
Other changes |
|
1 |
|
(1) |
Loss allowances at December 31 |
|
230 |
|
208 |
As at December 31, 2022, the loss allowance for not credit-impaired accounts receivable in the amount of € 204 million and credit-impaired accounts receivable in the amount of € 1 million was not recognized as adidas holds credit enhancement instruments, mainly in the form of credit insurance and bank guarantees, which mitigate the credit risk of those financial assets.
There are no material balances of accounts receivable written off but subject to enforcement activity.
As of December 31, 2022, accounts receivable amounting to € 112 million (2021: € 99 million) were derecognized in connection with factoring agreements.
Further information about credit risks is contained in these Notes. SEE NOTE 29
