Trade Receivables and Reseller Financing

12 Months Ended

Dec. 31, 2019

Trade Receivables and Reseller Financing

5. Trade Receivables and Reseller Financing

a. Trade Receivables

The composition of trade receivables is as follows:


	12/31/2019			12/31/2018
Domestic customers		3,867,902			4,290,996
Foreign customers		226,484			244,960
(-) Expected losses on doubtful accounts		(404,886	)		(385,080	)

		3,689,500			4,150,876

Current		3,635,834			4,069,307
Non-current		53,666			81,569

The breakdown of trade receivables, gross of

expected losses on doubtful accounts, is as follows:


					Past due
	Total		Current		less than 30 days		31-60 days		61-90 days		91-180 days		more than 180 days
12/31/2019		4,094,386		3,199,315		159,350		27,320		12,245		61,489		634,667
12/31/2018		4,535,956		3,739,601		121,622		53,864		49,629		84,920		486,320

The breakdown of expected

losses on doubtful accounts, is as follows:


					Past due
	Total		Current		less than 30 days		31-60 days		61-90 days		91-180 days		more than 180 days
12/31/2019		404,886		28,861		1,456		1,625		3,749		23,698		345,497
12/31/2018		385,080		39,226		4,094		3,754		5,533		46,783		285,690

Movements in the allowance for

expected losses on doubtful accounts are as follows:


Balance as of December 31, 2017	347,801
Additions	287,566
Write-offs	(250,287	)

Balance as of December 31, 2018	385,080
Additions	189,192
Write-offs	(169,386	)

Balance as of December 31, 2019	404,886

For further information about the allowance for

expected losses on doubtful accounts, see Note 34.d.3.

b. Reseller financing

The composition of reseller financing is as follows:


	12/31/2019			12/31/2018
Reseller financing – Ipiranga		956,942			855,229
(-) Expected losses on doubtful accounts		(156,006	)		(139,699	)

		800,936			715,530

Current		436,188			367,262
Non-curren t		364,748			348,268

Reseller financing is provided for renovation and upgrading of service stations, purchase of products, and development of the automotive fuels and lubricants distribution market. The terms of reseller financing range substantially from 12 months to 60 months, with an average term of 40 months. The minimum and maximum interest rates are 0% per month and 1% per month, respectively.

These financing are remeasured at a market rate for working capital loans and the difference is recognized as a reduction to the reseller’s net revenue. At the beginning of the contract, the adjustment to present value is made and the difference between the market rate and the subsidized rate is reduced from the sale price. This difference is appropriated to the financial result throughout the term of the contract.

The breakdown of reseller financing, gross of

expected losses on doubtful accounts, is as follows:


	Past due
	Total		Current		less than 30 days		31-60 days		61-90 days		91-180 days		more than 180 days
12/31/2019		956,942		644,488		26,262		10,481		12,616		30,144		232,951
12/31/2018		855,229		633,183		11,262		14,869		9,377		20,783		165,755

The breakdown of expected losses on doubtful ac

ounts, is as follows:


	Past due
	Total		Current		less than 30 days		31-60 days		61-90 days		91-180 days		more than 180 days
12/31/2019		156,006		21,337		2,519		1,063		1,313		14,639		115,135
12/31/2018		139,699		26,982		1,250		1,642		1,131		12,176		96,518

Movements in the allowance for expected lo

ses on doubtful accounts are as follows:


Balance as of December 31, 2017	104,977
Additions	34,722

Balance as of December 31, 2018	139,699
Additions	30,601
Write-offs	(14,294	)

Balance as of December 31, 2019	156,006

For further information about the allowance for expected losses on doubtful accounts, see Note 34.d.3.