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Trade receivables
 12 Months Ended
Dec. 31, 2022
Disclosure of trade receivables [abstract]  
Trade receivables
15. Trade receivables
(USD millions)
2022
2021
Total gross trade receivables
8 128
8 088
Provisions for doubtful trade receivables
-62
-83
Total trade receivables, net
8 066
8 005
The following table summarizes the movement in the provision for doubtful trade receivables:
(USD millions)
2022
2021
2020
January 1
-83
-93
-95
Provisions for doubtful trade receivables charged to the consolidated income statement
-47
-39
-59
Utilization of provisions for doubtful trade receivables
9
9
13
Reversal of provisions for doubtful trade receivables credited to the consolidated income statement
56
34
53
Currency translation effects
3
6
-5
December 31
-62
-83
-93
The following table shows the trade receivables that are not overdue as specified in the payment terms and conditions established with Novartis customers, as well as an analysis of overdue amounts and related provisions for doubtful trade receivables:
(USD millions)
2022
2021
Not overdue
7 664
7 639
Past due for not more than one month
190
162
Past due for more than one month but less than three months
110
99
Past due for more than three months but less than six months
62
63
Past due for more than six months but less than one year
23
28
Past due for more than one year
79
97
Provisions for doubtful trade receivables
-62
-83
Total trade receivables, net
8 066
8 005
Trade receivable balances represent amounts due from our customers, which are mainly drug wholesalers, retailers, private health systems, government agencies, managed care providers, pharmacy benefit managers and government-supported healthcare systems. We particularly monitor the level of trade receivables in countries deemed to have an elevated credit risk. We consider macroeconomic environment, historical experience, country and political risk, in addition to other relevant information when assessing risk. These risk factors are monitored regularly to determine any adjustments in risk classification. The majority of the past due trade receivables from elevated credit risk countries are due from local governments or from government-funded entities. Deteriorating credit and economic conditions as well as other factors in these elevated credit risk countries have resulted in, and may continue to result in, an increase in the average length of time that it takes to collect these
trade receivables, and may require the Group to re-evaluate the expected credit loss amount of these trade receivables in future periods. At December 31, 2022, amounts past due for more than one year are not significant in elevated credit risk countries.
Total trade receivables include amounts denominated in the following major currencies:
(USD millions)
2022
2021
US dollar (USD)
3 709
3 344
Euro (EUR)
1 426
1 408
Russian ruble (RUB)
430
473
Japanese yen (JPY)
177
383
British pound (GBP)
176
200
Chinese yuan (CNY)
155
197
Canadian dollar (CAD)
151
139
Brazilian real (BRL)
145
129
Australian dollar (AUD)
137
139
Swiss franc (CHF)
108
106
Other currencies
1 452
1 487
Total trade receivables, net
8 066
8 005