39. Carrying amounts and fair values according to measurement category

The carrying amounts and fair values of recognised financial instruments are as follows:

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31/12/2011

 

 

 

 

 

 

 

 

Balance sheet value

 

 

 

 

 

 

 

€ million

Carrying amount

(Amorti-
sed) cost

Fair value
affect-
ing profit
or loss

Fair value outside
of profit or loss

Fair value

1

Adjustment of previous year due to revised disclosure

2

Adjustment of prior-year fair value due to consideration of credit spreads

3

Revised terminology (see chapter “Notes to the Group accounting principles and methods”)

4

Adjustment of previous year (see chapter “Notes to the Group accounting principles and methods”)

Assets

33,987

n/a

n/a

n/a

n/a

Loans and receivables

2,921

2,921

0

0

2,923

Loans and advance credit granted

106

106

0

0

106

Receivables due from suppliers

1,705

1,705

0

0

1,705

Trade receivables

551

551

0

0

551

Miscellaneous financial assets

559

559

0

0

561

Held to maturity

0

0

0

0

0

Miscellaneous financial assets

0

0

0

0

0

Held for trading

17

0

17

0

17

Derivative financial instruments not part of a hedge under IAS 39

17

0

17

0

17

Available for sale

92

11

0

81

n/a

Investments

11

11

0

0

n/a

Securities

81

0

0

81

81

Derivative financial instruments within hedges under IAS 39

25

0

0

25

25

Cash and cash equivalents

3,355

3,355

0

0

3,355

Receivables from finance lease (amount according to IAS 17)1

14

n/a

n/a

n/a

17

Assets not classified under IFRS 71

27,563

n/a

n/a

n/a

n/a

 

 

 

 

 

 

Liabilities

33,987

n/a

n/a

n/a

n/a

Held for trading

20

0

20

0

20

Derivative financial instruments not part of a hedge under IAS 39

20

0

20

0

20

Other financial liabilities

21,874

21,485

0

389

22,209

Borrowings excl. finance leases
(incl. underlying hedging transactions under IAS 39)2, 3

5,655

5,655

0

0

5,989

Trade liabilities4

14,214

14,214

0

0

14,214

Miscellaneous financial liabilities4

2,005

1,616

0

389

2,006

Derivative financial instruments within hedges under IAS 39

9

0

0

9

9

Liabilities from finance lease (amount according to IAS 17)1

1,786

n/a

n/a

n/a

1,996

Liabilities not classified under IFRS 71

10,298

n/a

n/a

n/a

n/a

Unrealised gain (+)/loss (–) from total difference between fair value and carrying amounts

 

 

 

 

–539

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31/12/2012

 

 

 

 

 

 

 

 

Balance sheet value

 

 

 

 

 

 

 

€ million

Carrying amount

(Amorti-
sed) cost

Fair value
affect-
ing profit
or loss

Fair value outside
of profit or loss

Fair value

1

Revised terminology (see chapter “Notes to the Group accounting principles and methods”)

Assets

34,766

n/a

n/a

n/a

n/a

Loans and receivables

3,117

3,117

0

0

3,116

Loans and advance credit granted

71

71

0

0

71

Receivables due from suppliers

1,791

1,791

0

0

1,791

Trade receivables

568

568

0

0

568

Miscellaneous financial assets

687

687

0

0

687

Held to maturity

3

3

0

0

3

Miscellaneous financial assets

3

3

0

0

3

Held for trading

10

0

10

0

10

Derivative financial instruments not part of a hedge under IAS 39

10

0

10

0

10

Available for sale

200

12

0

189

n/a

Investments

199

12

0

187

n/a

Securities

1

0

0

1

1

Derivative financial instruments within hedges under IAS 39

0

0

0

0

0

Cash and cash equivalents

5,299

5,299

0

0

5,299

Receivables from finance lease (amount according to IAS 17)

11

n/a

n/a

n/a

11

Assets not classified under IFRS 7

26,126

n/a

n/a

n/a

n/a

 

 

 

 

 

 

Liabilities

34,766

n/a

n/a

n/a

n/a

Held for trading

16

0

16

0

16

Derivative financial instruments not part of a hedge  under IAS 39

16

0

16

0

16

Other financial liabilities

22,439

22,092

0

347

22,797

Borrowings excl. finance leases
(incl. underlying hedging transactions under IAS 39)1

7,136

7,136

0

0

7,493

Trade liabilities

13,513

13,513

0

0

13,513

Miscellaneous financial liabilities

1,790

1,443

0

347

1,791

Derivative financial instruments within hedges under IAS 39

27

0

0

27

27

Liabilities from finance lease (amount according to IAS 17)

1,414

n/a

n/a

n/a

1,596

Liabilities not classified under IFRS 7

10,870

n/a

n/a

n/a

n/a

Unrealised gain (+)/loss (–) from total difference between fair value and carrying amounts

 

 

 

 

–540

Due to their mostly short terms, the fair values of receivables due from suppliers, trade receivables and liabilities as well as cash and cash equivalents essentially correspond to their carrying amounts.

Of the total carrying amount of investments of €199 million (previous year: €11 million), €12 million (previous year: €11 million) are recognised at historical cost because a fair value cannot reliably be determined. These concern off-exchange financial instruments without an active market. The Company currently does not plan to dispose of the investments recognised at historical cost. Listed investment totalling €187 million (previous year: €0 million) are measured at fair value outside of profit or loss.

The measurement of the fair value of bonds, liabilities to banks and promissory note loans is based on the market interest rate curve following the zero-coupon method in consideration of credit spreads. The amounts comprise the interest prorated to the closing date.

Other financial liabilities include liabilities from commitments from stock tender rights of non-controlling interests in the amount of €347 million (previous year: €389 million), which are subsequently measured at fair value outside of profit or loss.

The fair values of all other financial assets and liabilities that are not listed on an exchange correspond to the present value of payments underlying these balance sheet items. The calculation was based on the applicable country-specific yield curves as of the closing date.

The following table depicts the financial instruments that are recognised at fair value in the balance sheet. These are classified into a 3-level fair value hierarchy whose levels reflect the degree of closeness to the market of the data used in the determination of the fair values:

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31/12/2011

31/12/2012

 

 

 

 

 

 

 

 

 

€ million

Total

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

1

Adjustment of previous year (see chapter “Notes to the Group accounting principles and methods”)

Assets

98

81

17

0

199

189

10

0

Held for trading

 

 

 

 

 

 

 

 

Derivative financial instruments not part of a hedge under IAS 39

17

0

17

0

10

0

10

0

Available for sale

 

 

 

 

 

 

 

 

Investments

0

0

0

0

187

187

0

0

Securities

81

81

0

0

1

1

0

0

Liabilities

409

0

20

389

363

0

16

347

Held for trading

 

 

 

 

 

 

 

 

Derivative financial instruments not part of a hedge under IAS 39

20

0

20

0

16

0

16

0

Other financial liabilities

0

0

0

0

0

0

0

0

Miscellaneous financial liabilities

 

 

 

 

 

 

 

 

Other financial liabilities1

389

0

0

389

347

0

0

347

Total

–311

81

–3

–389

–165

189

–6

–347

The measurement of securities (level 1) is carried out based on quoted market prices on active markets.

Interest rate swaps and forex transactions (all level 2) are measured using the mark-to-market method based on quoted exchange rates and market yield curves.

The fair value of commodity derivatives (level 2) is calculated as the average of the past month’s price noted on the exchange.

No transfers between levels 1 and 2 were effected during the reporting period.

Level 3 includes the fair values of liabilities from stock tender rights of non-controlling interests. The fair value measurement is based on the respective contract design.

Fair values of liabilities from stock tender rights, which are determined on the basis of the discounted cash flow method, are based on expected future cash flows over a detailed planning period of 3 to 5 years plus a perpetuity. The assumed growth rate for the perpetuity is 1.9 to 9.3 percent. The respective local WACC is used as the discount rate. In the financial year 2012, discount rates ranged from 9.5 to 17.6 percent. If individual interest rates were to increase by 10.0 percent, the fair value of these liabilities would decline by €7 million.

The fair values of other liabilities from stock tender rights are determined on the basis of historical sales and/or income, multiplied by contractually agreed multipliers, or correspond to the non-controlling interests’ share in the net assets of the respective company as of the closing date. They essentially relate to current liabilities which in some cases will lead to a cash outflow in 2013. As a result, the fair values of the latter 2 valuation groups are not subject to sensitivity fluctuations.

Of changes in value of stock tender rights recognised as of 31 December 2012, €21 million result in a decline in goodwill. In addition, transaction costs of €23 million were incurred.