20 Financial Instruments

The following table shows a presentation of financial assets and liabilities by measurement categories and classes. Also presented are liabilities from finance leases and derivatives for which hedge accounting is used, even though they do not belong to any of the IAS 39 measurement categories.

The fair value of financial instruments measured at amortized cost is determined based on discounting, taking into account customary market interest rates that are adequate to the specific risk and correspond to the relevant maturity. For reasons of immateriality, the carrying amount of current balance-sheet items is the same as their fair value.

Financial Assets and Liabilities by Measurement Category and Class

Financial Assets and Liabilities by Measurement Category and Class as of Dec. 31, 2013

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€ million

 

 

 

Measurement pursuant to IAS 39

 

Measure ment pursuant to IAS 17

 

 

 

 

Balance sheet carrying amount Dec. 31, 2013

 

(Amortized) cost

 

Fair value through profit or loss

 

Fair value through other comprehensive income

 

Amortized cost

 

Fair value Dec. 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

1

Does not include tax receivables, advance payments made, or accruals and deferrals.

2

This item contains available-for-sale financial assets the market values of which cannot be calculated reliably and which have been recognized at cost. This item, along with noncurrent loans, is shown in the statement of financial position under noncurrent financial assets.

3

Includes other liabilities shown in the statement of financial position, with the exception of advance payments received, accruals and deferrals, and tax liabilities.

Trade receivables

 

614.1

 

614.1

 

 

 

 

 

 

 

614.1

Other financial assets1

 

573.6

 

352.9

 

5.4

 

215.3

 

 

 

583.6

Held-to-maturity securities

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

 

 

 

 

 

 

198.6

 

 

 

198.6

Loans and receivables

 

 

 

341.7

 

 

 

 

 

 

 

362.9

Available-for-sale financial assets2

 

 

 

11.2

 

 

 

 

 

 

 

Derivatives for which hedge accounting is not used (assets held for trading)

 

 

 

 

 

5.4

 

 

 

 

 

5.4

Derivatives for which hedge accounting is used

 

 

 

 

 

 

 

16.7

 

 

 

16.7

Cash and cash equivalents

 

431.8

 

431.8

 

 

 

 

 

 

 

431.8

Held-to-maturity securities

 

 

 

51.3

 

 

 

 

 

 

 

51.3

Loans and receivables

 

 

 

380.5

 

 

 

 

 

 

 

380.5

Total financial assets

 

1,619.5

 

 

 

 

 

 

 

 

 

1,629.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Of which pursuant to IAS 39 measurement categories:

 

 

 

 

 

 

 

 

 

 

 

 

Loans and receivables

 

1,336.3

 

1,336.3

 

 

 

 

1,357.5

Held-to-maturity securities

 

51.3

 

51.3

 

 

 

 

51.3

Available-for-sale financial assets

 

209.8

 

11.2

 

 

198.6

 

 

198.6

Derivatives for which hedge accounting is not used (assets held for trading)

 

5.4

 

 

5.4

 

 

 

5.4

Derivatives for which hedge accounting is used

 

16.7

 

 

 

16.7

 

 

16.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities

 

1,378.5

 

1,378.5

 

 

 

 

 

 

 

1,389.6

Financial liabilities recognized at amortized cost

 

 

 

1,378.5

 

 

 

 

 

 

 

1,389.6

Liabilities from finance leases

 

38.2

 

 

 

 

 

 

 

38.2

 

38.2

Trade payables

 

309.4

 

309.4

 

 

 

 

 

 

 

309.4

Financial liabilities recognized at amortized cost

 

 

 

309.4

 

 

 

 

 

 

 

309.4

Other financial liabilities3

 

141.4

 

108.2

 

31.3

 

1.9

 

 

 

141.4

Financial liabilities recognized at amortized cost

 

 

 

108.2

 

 

 

 

 

 

 

108.2

Derivatives for which hedge accounting is not used (financial liabilities held for trading)

 

 

 

 

 

0.8

 

 

 

 

 

0.8

Derivatives for which hedge accounting is used

 

 

 

 

 

30.5

 

1.9

 

 

 

32.4

Total financial liabilities

 

1,867.5

 

 

 

 

 

 

 

 

 

1,878.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Of which pursuant to IAS 39 measurement categories:

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities recognized at amortized cost

 

1,796.1

 

1,796.1

 

 

 

 

1,807.2

Derivatives for which hedge accounting is not used (financial liabilities held for trading)

 

0.8

 

 

0.8

 

 

 

0.8

Derivatives for which hedge accounting is used

 

32.4

 

 

30.5

 

1.9

 

 

32.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Assets and Liabilities by Measurement Category and Class as of Dec. 31, 2012

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€ million

 

 

 

Measurement pursuant to IAS 39

 

Measure ment pursuant to IAS 17

 

 

 

 

Balance sheet carrying amount Dec. 31, 2012

 

(Amortized) cost

 

Fair value through profit or loss

 

Fair value through other comprehensive income

 

Amortized cost

 

Fair value Dec. 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

1

Does not include tax receivables, advance payments made, or accruals and deferrals.

2

This item contains available-for-sale financial assets the market values of which cannot be calculated reliably and which have been recognized at cost. This item, along with noncurrent loans, is shown in the statement of financial position under noncurrent financial assets.

3

Includes other liabilities shown in the statement of financial position, with the exception of advance payments received, accruals and deferrals, and tax liabilities.

Trade receivables

 

600.2

 

600.2

 

 

 

 

 

 

 

600.2

Other financial assets1

 

689.8

 

486.5

 

5.6

 

197.7

 

 

 

673.8

Held-to-maturity securities

 

 

 

115.1

 

 

 

 

 

 

 

112.5

Available-for-sale securities

 

 

 

 

 

 

 

191.9

 

 

 

191.9

Loans and receivables

 

 

 

358.0

 

 

 

 

 

 

 

358.0

Available-for-sale financial assets2

 

 

 

13.4

 

 

 

 

 

 

 

Derivatives for which hedge accounting is not used (assets held for trading)

 

 

 

 

 

5.6

 

 

 

 

 

5.6

Derivatives for which hedge accounting is used

 

 

 

 

 

 

 

5.8

 

 

 

5.8

Cash and cash equivalents

 

192.6

 

192.6

 

 

 

 

 

 

 

192.6

Held-to-maturity securities

 

 

 

 

 

 

 

 

 

 

Loans and receivables

 

 

 

192.6

 

 

 

 

 

 

 

192.6

Total financial assets

 

1,482.6

 

 

 

 

 

 

 

 

 

1,466.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Of which pursuant to IAS 39 measurement categories:

 

 

 

 

 

 

 

 

 

 

 

 

Loans and receivables

 

1,150.8

 

1,150.8

 

 

 

 

1,150.8

Held-to-maturity securities

 

115.1

 

115.1

 

 

 

 

112.5

Available-for-sale financial assets

 

205.3

 

13.4

 

 

191.9

 

 

191.9

Derivatives for which hedge accounting is not used (assets held for trading)

 

5.6

 

 

5.6

 

 

 

5.6

Derivatives for which hedge accounting is used

 

5.8

 

 

 

5.8

 

 

5.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities

 

1,151.9

 

1,151.9

 

 

 

 

 

 

 

1,191.5

Financial liabilities recognized at amortized cost

 

 

 

1,151.9

 

 

 

 

 

 

 

1,191.5

Liabilities from finance leases

 

45.3

 

 

 

 

 

 

 

45.3

 

45.3

Trade payables

 

379.8

 

379.8

 

 

 

 

 

 

 

379.8

Financial liabilities recognized at amortized cost

 

 

 

379.8

 

 

 

 

 

 

 

379.8

Other financial liabilities3

 

149.7

 

129.5

 

16.9

 

3.3

 

 

 

149.7

Financial liabilities recognized at amortized cost

 

 

 

129.5

 

 

 

 

 

 

 

129.5

Derivatives for which hedge accounting is not used (financial liabilities held for trading)

 

 

 

 

 

5.3

 

 

 

 

 

5.3

Derivatives for which hedge accounting is used

 

 

 

 

 

11.6

 

3.3

 

 

 

14.9

Total financial liabilities

 

1,726.7

 

 

 

 

 

 

 

 

 

1,766.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Of which pursuant to IAS 39 measurement categories:

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities recognized at amortized cost

 

1,661.2

 

1,661.2

 

 

 

 

1,700.8

Derivatives for which hedge accounting is not used (financial liabilities held for trading)

 

5.3

 

 

5.3

 

 

 

5.3

Derivatives for which hedge accounting is used

 

14.9

 

 

11.6

 

3.3

 

 

14.9

 

 

 

 

 

 

 

 

 

 

 

 

 

The loans and receivables reported include trade receivables and other loans, as well as cash and cash equivalents. Cash and cash equivalents in foreign currency are measured at the conversion rate prevailing on the reporting date. Their carrying amounts correspond to their fair values. The fair value of the loans corresponds to their present value, i.e. the present value of the expected future cash flows. Discounting is carried out on the basis of the interest rates valid on the reporting date.

The held-to-maturity securities category includes current fixed-interest securities measured at amortized cost in accordance with the effective interest method.

Available-for-sale financial assets include securities, fund shares aimed at securing phased-early-retirement commitments, and investments in joint ventures and associates. The fair values of the fund shares correspond to their stock market prices on the reporting date. Investments in joint ventures and associates are measured at cost, as no observable prices on active markets are available.

The carrying amounts of trade payables and other liabilities correspond to their fair values. The fair values of financial liabilities constitute the present value of the expected future cash flows. Discounting is carried out on the basis of the interest rates valid on the reporting date. All other liabilities are valued at cost as no observable prices for them are available.

Net Result by Measurement Category

Fair Value Hierarchy

Financial Risks

Foreign Exchange Risk

Interest Rate Risk

Raw Material Price Risk

Derivative Financial Instruments