Note 23 - Trade receivables

Trade receivables and their realisable value can be analysed as follows:

  31 Dec. 2019 31 Dec. 2018(*)
Trade receivables (gross amount) 1 158 1 398
Accumulated impairment losses (90) (104)
Carrying amount 1 068 1 294
Of which:    
  • not yet due
 961 1 085
  • less than six months past due
 84 166
  • more than six months past due
 23 43
Total 1 068 1 294

(*) Data restated for the full retrospective application of IFRS 16 (see note 1.1).

Analysis of impairment losses 2019 2018
At 1 January (104) (143)
Impairment losses (recognised) reversed in the year (9) 16
Other movements and translation adjustments 23 23
At 31 December (90) (104)

Securitisation of trade receivables
In December 2015, the Group set up a five-year trade receivables securitisation programme in certain Lagardère Active subsidiaries. Under this programme, sold receivables may be deconsolidated based on the conditions set out below.
The new programme involves the no-recourse sale of receivables and includes a credit insurance and protection mechanism within the securitisation fund which absorbs most of the risks. Accordingly, substantially all of the risks and rewards incidental to ownership of the receivables are transferred to the compartment of the fund.
The main characteristics of the programme are as follows:

  • receivables are sold through an entity representing the compartment of a securitisation fund that is not controlled by Lagardère;
  • the compartment subscribes to a credit insurance policy covering 99% of the credit risk on the receivables;
  • receivables are purchased for their nominal value net of a discount set (using a pre-determined formula) so as to cover the carrying costs of the securitisation, the fees associated with the fund compartment (remuneration of fund units and expenses), and the risk of late-payment on the acquired receivables;
  • the compartment’s senior units are subscribed by a financial institution and are used to finance the acquisition of receivables;
  • the compartment’s subordinated units and additional units subscribed by Lagardère absorb the dilution risk and the share of uninsured receivables in the event that the discount is insufficient;
  • Lagardère is responsible for recovering the receivables and for managing the credit insurance policy, and receives a fixed commission for this purpose.

The sale of Lagardère Active’s magazine publishing titles and TV channels resulted in Lagardère Publicité and Lagardère Thématique exiting the securitisation program and in the entry of a new transferor (Lagardère Publicité News), which securitises the receivables relating to the retained Press titles and Radio operations in France. Accordingly, receivables sold and deconsolidated at end-2019 totalled €28 million.
Lagardère is nevertheless exposed to a residual risk on the sold receivables, represented mainly by the units subscribed in the securitisation compartment, which amounted to €0.7 million at 31 December 2019, or around 2.3% of the total value of the sold receivables.
Receivables sold and deconsolidated at end-2018 totalled €53 million.