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NOTES TO CONDENSED INTERIM FINANCIAL REPORT (CONTINUED)
9 TRADE AND BILLS RECEIVABLE (CONTINUED)
There is no concentration of credit risk with respect to trade receivables, as the Group has a large number of customers
internationally dispersed.
Certain subsidiaries of the Group discounted bills receivable balances amounting to US$33,717,000 (31 December 2011:
US$40,298,000) to banks in exchange for cash as at 30 June 2012. The transactions have been accounted for as collateralized
bank advances.
As at 30 June 2012, trade receivables of US$21,750,000 (31 December 2011: US$8,820,000) were pledged as security for the
Group’s borrowings.
10 TRADE AND BILLS PAYABLE
The ageing of trade and bills payable based on invoice date is as follows:
46 LI & FUNG LIMITED | INTERIM REPORT 2012
Current to
91 to
181 to
Over
90 days 180 days 360 days 360 days Total
US$’000 US$’000 US$’000 US$’000 US$’000
Balance at 30 June 2012 (unaudited) 2,339,192 46,940 8,258 6,553 2,400,943
Balance at 31 December 2011 (audited) 2,254,085 56,542 7,474 18,890 2,336,991
The fair values of the Group’s trade and bills payable approximates their carrying values.
11 LONG-TERM LIABILITIES
UNAUDITED
30 JUNE
2012
AUDITED
31 DECEMBER
2011
US$’000 US$’000
Long-term loans from non-controlling shareholders – 4,910
Long-term bank loans – unsecured 100,000 105,489
Long-term notes – unsecured 1,255,734 1,256,007
Balance of purchase consideration payable for acquisitions to be settled by cash 1,797,195 1,970,376
License royalty payable 214,306 225,036
Other non-current liability (non-financial liability) 66,193 66,530
3,433,428 3,628,348
Current portion of balance of purchase consideration payable for acquisitions to be settled by cash (492,602) (323,712)
Current portion of license royalty payable (34,819) (53,614)
2,906,007 3,251,022
Balance of purchase consideration payable for acquisitions to be settled by cash as at 30 June 2012 included performancebased
earnout and earnup contingent consideration of US$926,494,000 and US$870,701,000, respectively (31 December 2011:
US$1,073,257,000 and US$897,119,000). Earnout is contingent consideration that would be realized if the acquired businesses
achieve their respective base year profit target, calculated on certain predetermined basis, during the designated periods of time.
Earnup is contingent consideration that would be realized if the acquired businesses achieve certain growth targets, calculated
based on the base year profits, during the designated periods of time.