5. Accounts receivable from subscribers, distributors, recoverable taxes and other, net
a) An analysis of accounts receivable by component at December 31, 2016 and 2017 is as follows:
| At December 31, | ||||||||
| 2016 | 2017 | |||||||
|
Subscribers and distributors |
Ps. | 186,744,954 | Ps. | 178,722,706 | ||||
|
Telecommunications carriers for network interconnection and other services |
9,649,849 | 8,671,416 | ||||||
|
Recoverable taxes |
41,899,517 | 40,477,188 | ||||||
|
Sundry debtors |
16,016,756 | 14,736,340 | ||||||
|
|
|
|
|
|||||
| 254,311,076 | 242,607,650 | |||||||
|
Less: Allowance for bad debts |
(37,351,677 | ) | (39,044,925 | ) | ||||
|
|
|
|
|
|||||
|
Net |
Ps. | 216,959,399 | Ps. | 203,562,725 | ||||
|
|
|
|
|
|||||
|
Non-current subscribers and distributors |
11,184,860 | 9,786,581 | ||||||
|
|
|
|
|
|||||
|
Total current Subscribers, distributors, recoverable taxes and other, net |
Ps. | 205,774,539 | Ps. | 193,776,144 | ||||
|
|
|
|
|
|||||
b) Changes in the allowance for bad debts were as follows:
| For the years ended December 31, | ||||||||||||
| 2015 | 2016 | 2017 | ||||||||||
|
Balance at beginning of year |
Ps. (25,685,528 | ) | Ps. (27,495,158 | ) | Ps. (37,351,677 | ) | ||||||
|
Increases recorded in expenses |
(13,171,120 | ) | (16,987,769 | ) | (20,744,242 | ) | ||||||
|
Write-offs |
9,555,734 | 12,587,567 | 17,713,992 | |||||||||
|
Business combination |
(22,120 | ) | ||||||||||
|
Translation effect |
1,805,756 | (5,456,317 | ) | 1,359,122 | ||||||||
|
|
|
|
|
|
|
|||||||
|
Balance at end of year |
Ps. (27,495,158 | ) | Ps. (37,351,677 | ) | Ps. (39,044,925 | ) | ||||||
|
|
|
|
|
|
|
|||||||
c) The following table shows the aging of accounts receivable at December 31, 2016 and 2017, for subscribers and distributors:
| Past due | ||||||||||||||||||||||||
| Total | Unbilled services provided |
1-30 days | 31-60 days | 61-90 days | Greater than 90 days |
|||||||||||||||||||
|
December 31, 2016 |
Ps. 186,744,954 | Ps. 113,014,706 | Ps. 19,175,008 | Ps. 5,835,162 | Ps. 4,209,456 | Ps. 44,510,622 | ||||||||||||||||||
|
December 31, 2017 |
Ps. 178,722,706 | Ps. 78,384,174 | Ps. 46,758,825 | Ps. 6,780,671 | Ps. 4,375,188 | Ps. 42,423,848 | ||||||||||||||||||
In accordance with the Company’s accounting policy for the allowance for bad debts, as of December 31, 2016 and 2017, there are certain accounts receivable greater than 90 days that are not impaired as they are primarily due from government institutions and distributors for which the Company has a collateral. To estimate the recoverability of accounts receivable, the Company considers any change in the credit quality of the subscribers and distributors from the date the credit was granted until the end of period.
d) The following table shows the accounts receivable from subscribers and distributors included in the allowance for doubtful accounts, as of December 31, 2016 and 2017:
| Total | 61-90 days | Greater than 90 days |
||||||||||
|
December 31, 2016 |
Ps. 37,351,677 | Ps. 3,970,770 | Ps. 33,380,907 | |||||||||
|
December 31, 2017 |
Ps. 39,044,925 | Ps. 3,807,945 | Ps. 35,236,980 | |||||||||