AU OPTRONICS CORP | CIK:0001172494 |

 

		December 31,
		2017			2016
		(in thousands)
Accounts receivable		$	42,021,402			49,201,632
Less: allowance for doubtful accounts			(93,053)			(104,617)
allowance for sales returns and discounts			(1,337,076)			(853,614)
		$	40,591,273			48,243,401
Accounts receivable, net		$	38,738,211			45,710,177
Accounts receivable from related parties, net		$	1,853,062			2,533,224

 

 

		December 31,
		2017			2016
		(in thousands)
Past due less than 60 days		$	560,016			531,327
Past due 61~180 days			12,790			9,505
Past due over 180 days			-			1,020
		$	572,806			541,852

 

The movement in the allowance for doubtful accounts was as follows:

 

		For the years ended December 31,
		2017						2016						2015
		Individually assessed for impairment			Collectively assessed for impairment			Individually assessed for impairment			Collectively assessed for impairment			Individually assessed for impairment			Collectively assessed for impairment
		(in thousands)
Balance at beginning of the year		$	41,812			62,805			11,714			58,183			10,334			72,906
Provisions (reversals) charged to (against) expense			(28,236)			18,396			31,360			12,938			3,196			(14,864)
Write-offs			(6)			-			-			(7,385)			(1,814)			(383)
Effect of changes in foreign currency exchange rates			(805)			(913)			(1,262)			(931)			(2)			524
Balance at end of the year		$	12,765			80,288			41,812			62,805			11,714			58,183

 

The payment terms granted to customers are generally 30 to 60 days from the end of the month during which the invoice is issued.

 

The Company evaluates possible uncollected amounts and uses allowance for doubtful accounts to record its doubtful receivable expenses. When evaluating the allowances, the Company considers the historical experience, the customer credits and the account aging analysis. While it is determined a receivable is uncollectible, receivable balances is offset against the allowance for doubtful accounts.

 

Information about the Company’s exposure to credit risk is included in note 36.

As of December 31, 2017 and 2016, the Company entered into financing facilities with banks to factor certain of its accounts receivable without recourse, details of which were as follows:

 

December 31, 2017
Underwriting bank		Factoring limit			Amount advanced			Amount sold and derecognized			Principle terms
					(in thousands)
Chinatrust Commercial Bank		USD	200,000			-			-		See notes(a)~(c) and (e)
Taishin Bank		USD	80,000			-			-		See notes(a)~(c) and (e)
Bank of Taiwan		USD	250,000			-			-		See notes(a)~(c) and (e)
Taipei Fubon Bank		USD	120,000			-			-		See notes(a)~(c) and (e)
E. Sun Bank		USD	50,000			-			-		See notes(a)~(c) and (e)
DBS Bank		USD	154,000			-			-		See notes(a)~(c) and (e)
Taishin Bank		USD	35,000			-		USD	6,382		See notes(a)~(d) and (f)

 

December 31, 2016
Underwriting bank		Factoring limit			Amount advanced			Amount sold and derecognized			Principle terms
					(in thousands)
Chinatrust Commercial Bank		USD	230,000			-			-		See notes(a)~(c) and (e)
Taishin Bank		USD	80,000			-			-		See notes(a)~(c) and (e)
Bank of Taiwan		USD	250,000			-			-		See notes(a)~(c) and (e)
Taipei Fubon Bank		USD	120,000			-			-		See notes(a)~(c) and (e)
E. Sun Bank		USD	100,000			-			-		See notes(a)~(c) and (e)
DBS Bank		USD	184,000			-			-		See notes(a)~(c) and (e)
Taishin Bank		USD	35,000			-		USD	8,780		See notes(a)~(d) and (f)