Note 18. Trade receivables

Age analysis of trade receivables and contract assets, Group

Loss reserve	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
2018
Expected loss rate, %	0.5	1.8	5.0	16.1	16.2	45.5	90.2	4.7
Gross carrying amount – trade receivables	12,257	1,595	496	257	308	219	480	15,613
Gross carrying amount – contract assets	362	9	3	1	1	0	22	399
	12,619	1,605	499	258	309	219	502	16,012
Loss allowance	–59	–29	–25	–41	–50	–100	–453	–757
Reported value	12,560	1,575	474	217	259	120	49	15,255

2019
Loss reserve	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
Expected loss rate, %	–1.2	1.9	4.5	8.5	19.9	40.4	89.7	4.2
Gross carrying amount – trade receivables	11,609	1,583	510	284	345	210	613	15,154
Gross carrying amount – contract assets	356	3	1	0	0	0	18	379
	11,965	1,586	511	284	346	210	632	15,533
Loss allowance	143	–31	–23	–24	–69	–85	–567	–655
Reported value	12,108	1,555	488	260	277	125	65	14,878

Sandvik evaluates its trade receivables, contract assets and financial leases on a collective basis for its categories respectively. Each reporting entity classifies their 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 macroeconomic evaluation is conducted on the outlook of industries and countries relevant for our customers.

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