ANNUAL REPORT 2011 - Kuehne + Nagel

86
Consolidated Financial Statements 2011 _ _ _ _ _ _ Other Notes
29 Investments in joint ventures
As of December 31, 2011, the following investments in joint ventures
are held (all with 50 per cent voting rights/KN share):
— KN-ITS S.A.L., Lebanon
— Cologic S.A., Luxembourg
— Kuehne + Nagel Drinkflow Logistics, Ltd., Great Britain*
— Kuehne + Nagel Drinkflow Logistics (Holdings) Ltd.,
Great Britain
— Sindos Railcontainer Services S.A., Greece
* During 2010 additional share capital of CHF 36 million was contributed to close
existing long-term finance facilities.
The table below provides a summary of financial information on
joint ventures (100 per cent):
CHF million Dec. 31, 2011 Dec. 31, 2010
Non-current assets 54 67
Current assets 59 36
Non-current liabilities – 2
Current liabilities 34 16
Net invoiced turnover 303 376
Earnings for the year – 1
No investments in associates were held at December 31, 2011
and 2010.
30 Work in progress
The position increased from CHF 253 million in 2010 to
CHF 275 million in 2011 which represents a billing delay of
5 working days against the previous year’s 4.6 working days.
31 Trade receivables
CHF million 2011 2010
Trade receivables 2,345 2,134
Impairment allowance –67 –57
Total trade receivables 2,278 2,077
The majority of all billing is done in the respective Group companies’
own functional currencies and is mainly in EUR 45.2 per
cent (2010: 47.4 per cent), USD 12.6 per cent (2010: 13.3 per
cent) and GBP 8.9 per cent (2010: 6.9 per cent).
No trade receivables in 2011 and 2010 are pledged.
The Group has a credit insurance program in place, covering
trade receivables, focusing mainly on small and medium exposures.
The credit insurance policy covers up to 80 per cent of the
approved customer credit limit, excluding any items more than
120 days past due. As a company policy, the Group excludes
companies meeting certain criteria (so-called blue chip companies)
from its insurance program.
The Group establishes an impairment allowance that represents
its estimate of incurred losses in respect of trade receivables. The
two components of this impairment allowance of CHF 67 million
(2010: CHF 57 million) are:
— specific loss component that relates to individually significant
exposure
— collective loss component based on historical experience.
Trade receivables with credit insurance cover are not included in
the impairment allowance. The individual impairment allowance
relates to specifically identified customers representing extremely
high risk of being declared bankrupt, Chapter 11 companies in
the USA and customers operating with significant financial
difficulties (such as negative equity). The impairment allowance
for individually significant exposures is CHF 42 million at yearend
2011 (2010: CHF 37 million).
The collective impairment allowance based on overdue trade
receivables is estimated considering past experience of payment
statistics. The Group has established a collective impairment
allowance of CHF 25 million (2010: CHF 20 million) which represents
2.6 per cent (2010: 2.3 per cent) of total outstanding
trade receivables, excluding trade receivables with insurance
cover (see above) and trade receivables included in the individual
impairment allowance.
The majority of the trade receivables not past due relates to
customers who have good track record with the Group and are
subject to yearly credit risk assessments. Therefore, the Group
does not believe that an additional impairment allowance for
these trade receivables is necessary.