Registration document 2011 - tota - Total.com

The following table sets forth financial assets and liabilities related to operating activities as of December 31, 2011, 2010 and 2009 (see
Note 28 to the Consolidated Financial Statements).
As of December 31,
(M€)
Assets/(Liabilities) 2011 2010 2009
Accounts payable (22,086) (18,450) (15,383)
Other operating liabilities (5,441) (3,574) (4,706)
including financial instruments related to commodity contracts (606) (559) (923)
Accounts receivable, net 20,049 18,159 15,719
Other operating receivables 7,467 4,407 5,145
including financial instruments related to commodity contracts 1,074 499 1,029
Total (11) 542 775
These financial assets and liabilities mainly have a maturity date below one year.
Credit risk
Credit risk is defined as the risk of the counterparty to a contract failing to perform or pay the amounts due.
The Group is exposed to credit risks in its operating and financing activities. The Group’s maximum exposure to credit risk is partially related
to financial assets recorded on its balance sheet, including energy derivative instruments that have a positive market value.
The following table presents the Group’s maximum credit risk exposure:
The valuation allowance on loans and advances and on accounts
receivable and other operating receivables is detailed respectively
in Notes 14 and 16 to the Consolidated Financial Statements.
As part of its credit risk management related to operating and
financing activities, the Group has developed margin call contracts
with certain counterparties. As of December 31, 2011, the net
amount received as part of these margin calls was €1,682 million
(against €1,560 million as of December 31, 2010 and €693 million
as of December 31, 2009).
Credit risk is managed by the Group’s business segments as
follows:
Upstream Segment
- Exploration & Production
Risks arising under contracts with government authorities or
other oil companies or under long-term supply contracts
necessary for the development of projects are evaluated during
the project approval process. The long-term aspect of these
contracts and the high-quality of the other parties lead to a low
level of credit risk.
Risks related to commercial operations, other than those
described above (which are, in practice, directly monitored by
subsidiaries), are subject to procedures for establishing and
reviewing credit.
Customer receivables are subject to provisions on a case-bycase
basis, based on prior history and management’s
assessment of the facts and circumstances.
- Gas & Power
Consolidated Financial Statements 9
Notes to the Consolidated Financial Statements
As of December 31,
(M€)
Assets/(Liabilities) 2011 2010 2009
Loans to equity affiliates (note 12) 2,246 2,383 2,367
Loans and advances (note 14) 2,055 1,596 1,284
Hedging instruments of non-current financial debt (note 20) 1,976 1,870 1,025
Accounts receivable (note 16) 20,049 18,159 15,719
Other operating receivables (note 16) 7,467 4,407 5,145
Current financial assets (note 20) 700 1,205 311
Cash and cash equivalents (note 27) 14,025 14,489 11,662
Total 48,518 44,109 37,513
The Gas & Power division deals with counterparties in the
energy, industrial and financial sectors throughout the world.
Financial institutions providing credit risk coverage are highly
rated international bank and insurance groups.
Potential counterparties are subject to credit assessment
and approval before concluding transactions and are thereafter
subject to regular review, including re-appraisal and approval
of the limits previously granted.
The creditworthiness of counterparties is assessed based on
an analysis of quantitative and qualitative data regarding financial
standing and business risks, together with the review of any
relevant third party and market information, such as data
published by rating agencies. On this basis, credit limits are
defined for each potential counterparty and, where appropriate,
transactions are subject to specific authorisations.
Credit exposure, which is essentially an economic exposure or
an expected future physical exposure, is permanently monitored
and subject to sensitivity measures.
Credit risk is mitigated by the systematic use of industry standard
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