5. Trade receivables and other current debit balences, NET Trade receivables and other current debit balances, net at December 31 comprise the following:
2010
2009
Trade receivables
128,847 150,987
Insurance claims
41,821 11,137 12,856
51,083
Employee receivables
9,471
Other debit balances
10,657 194,661 222,198 (18,237) 175,243 203,961 (19,418)
Provision for doubtful debts
Movement in provision for doubtful debts is as follows:
2010
2009
Balance at beginning of the year
18,237
21,902
Additions
2,397
719
Write-offs
(1,216)
(4,384)
Balance at end of the year
19,418 18,237
6. Bareboat lease receivable, NET On January 30, 2009, the National Chemical Carriers Ltd. Co. signed agreements with Odfjell to charter three vessels under bareboat arrangement for a period of ten years with purchase option after three years. These ships were delivered to Odfjell on February 1, 2009. The arrangement qualifies as a capital lease as it transfers to Odfjell substantially all the benefits and risks and also gives Odfjell a purchase option under the arrangement. The net bareboat lease receivable balance as of December 31 is summarized as follows:
Description
2010
2009
Future minimum lease payments
522,439 577,873
Un-guaranteed residual value at the end of lease term
247,875 247,875 770,314 825,748 (351,340) (400,849) 418,974 424,899
Unearned income
Net bareboat lease receivable balance
The above amount is classified at December 31, 2010 as under: Current
6,615
5,925
Non-current
412,359 418,974 418,974 424,899
Net bareboat lease receivable balance
The National Shipping Company of Saudi Arabia Annual Report 2010
62
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