With respect to the trade receivables that are neither impaired nor past due, there are no indications as of the reporting date that the debtors will not meet their payment obligations.
The following table shows the development of allowances on trade
receivables:
| 2010 millions of € |
2009 millions of € |
|
|---|---|---|
| Allowances as of January 1 | 1,178 | 1,023 |
| Currency translation adjustments | 15 | (11) |
| Additions (allowances recognized as expense) | 822 | 676 |
| Use | (529) | (447) |
| Reversal | (163) | (63) |
| Allowances as of December 31 | 1,323 | 1,178 |
The following table presents expenses for the full write-off of trade
receivables as well as income from recoveries on trade receivables
written off:
| 2010 millions of € |
2009 millions of € |
2008 millions of € |
|
|---|---|---|---|
| Expenses for full write-off of receivables | 138 | 327 | 424 |
| Income from recoveries on receivables written off |
7 | 39 | 55 |
All income and expenses relating to allowances and write-offs of trade receivables are reported under selling expenses.
| Dec. 31, 2010 millions of € |
Dec. 31, 2009 millions of € |
|
|---|---|---|
| Raw materials and supplies | 167 | 193 |
| Work in process | 108 | 48 |
| Finished goods and merchandise | 1,033 | 929 |
| Advance payments | 2 | 4 |
| 1,310 | 1,174 | |
Of the inventories reported as of December 31, 2010, write-downs of EUR 50 million (2009: EUR 33 million; 2008: EUR 53 million) on the net realizable value were recognized in profit or loss.
The carrying amount of inventories recognized as expense amounted to EUR 5,774 million (2009: EUR 6,311 million; 2008: EUR 6,188 million).
4 Non-current assets and disposal groups held for sale.
As of December 31, 2010, current assets recognized in the consolidated statement of financial position included EUR 51 million in non-current assets and disposal groups held for sale. These mainly relate to real estate of Deutsche Telekom AG (Group Headquarters & Shared Services) as a result of measures to make the use of floor space more efficient, especially in technical facilities. The non-current assets and disposal groups held for sale are not included in the other disclosures in the notes to the consolidated financial statements or presented as a reconciliation.
The decrease of EUR 6.5 billion compared with December 31, 2009 was mainly due to the merger of T-Mobile UK (Europe operating segment) and Orange UK to create a joint venture company under the name Everything Everywhere from April 1, 2010. For further details, please refer to Note 7 and the section “Business combinations and other transactions.”
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