Note 23 - Trade receivables
Trade receivables and their realisable value can be analysed as follows:
| 31 Dec. 2020 | 31 Dec. 2019 | ||
| Trade receivables (gross amount) | 1,164 | 1,158 | |
| Accumulated impairment losses | (114) | (90) | |
| Carrying amount | 1,050 | 1,068 | |
| Of which: | |||
| - not yet due | 907 | 961 | |
| - less than six months past due | 105 | 84 | |
| - more than six months past due | 38 | 23 | |
| Total | 1,050 | 1,068 | |
| Analysis of impairment losses | 2020 | 2019 | |
| At 1 January | (90) | (104) | |
| Impairment losses (recognised) reversed in the year | (26) | (9) | |
| Other movements and translation adjustments | 1 | 23 | |
| At 31 December | (115) | (90) | |
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.
Accordingly, receivables sold and deconsolidated at end-2020 totalled €27.5 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 €0.6 million at 31 December 2020, or around 2.3% of the total value of the sold receivables.
Receivables sold and deconsolidated at end-2019 totalled €28 million.