Note 18. Trade receivables

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Age analysis of trade receivables, Group
			2017			2018
			Gross	Allowance for bad debts	Net carrying amount	Gross	Allowance for bad debts	Net carrying amount
Current receivables			12,080	–100	11,980	13,251	–210	13,041
Past due receivables 0–3 months			1,719	–23	1,696	2,070	–54	2,016
Past due receivables 4–12 months			592	–172	420	673	–165	508
Past due receivables >12 months			465	–429	36	450	–403	47
Group total			14,856	–724	14,132	16,444	–832	15,612

Whereof discontinued operations			–950	46	–904	–315	82	–234
Continuing operations			13,906	–678	13,228	16,129	–751	15,378


2018	Current	1–30 days past due	31–60 days past due	61–90 days past due	91–180 days past due	181–360 days past due	More than 360 days past due	Total
Loss allowance
Expected loss rate, %	0.5	1.8	5.0	16.1	16.2	45.5	90.2	4.7

Gross carrying amount – trade receivables	12,375	1,595	496	257	308	219	480	15,730
Gross carrying amount – contract assets	363	9	3	1	1	0	22	399
	12,738	1,604	499	258	309	219	502	16,129
Loss allowance	–59	–29	–25	–41	–50	–100	–447	–751
Carrying value	12,679	1.575	474	217	259	119	55	15,378

Sandvik evaluates its trade receivables, contract assets and financial leases on a collective basis for its categories respectively. Each reporting entity groups its receivables in suitable risk categories according to Group policy. The Group’s assessment is that the aggregated credit risk has not increased during the reporting period.

Sandvik’s principles for the writing off of receivables are based on several prerequisites, such as proof of write-off, insolvency or failed legal and other collection processes. An assessment is made whether one or several of these prerequisites are fulfilled before the write-off takes place.

Credit risks are classified based on credit information provided by credit agencies, identified payment behavior of the customer and other relevant information available, such as lost contracts, changes in company management and other customer specific information. Additionally, a macro economic evaluation is conducted of the outlook of industries and countries relevant for our customers.

As regards credit securities, the Group selectively utilizes different forms of credit securities, such as letters of credit, retention of title or credit insurance.