In line with IFRS 7, the following table shows the carrying amounts and fair values of financial assets and liabilities.
|
Carrying amounts and fair values broken down by class |
>>TABLE 26 | |||||
|
|
30/09/2013 |
31/12/2012 | ||||
|
in € million |
Carrying |
Fair value |
Carrying |
Fair value | ||
| ||||||
|
|
|
|
|
| ||
|
Financial assets |
|
|
|
| ||
|
Loans receivable |
0.7 |
0.7 |
0.7 |
0.7 | ||
|
Financial receivables |
10.1 |
10.1 |
9.6 |
9.6 | ||
|
Available-for-sale investments |
0.8 |
0.8 |
0.8 |
0.8 | ||
|
Lease receivables* |
442.9 |
442.6 |
399.3 |
398.2 | ||
|
Trade receivables |
609.8 |
609.8 |
625.5 |
625.5 | ||
|
Other receivables |
56.2 |
56.2 |
59.2 |
59.2 | ||
|
thereof non-derivative receivables |
34.8 |
34.8 |
35.2 |
35.2 | ||
|
thereof derivative receivables |
21.3 |
21.3 |
23.9 |
23.9 | ||
|
Cash and cash equivalents |
230.6 |
230.6 |
562.4 |
562.4 | ||
|
|
|
|
|
| ||
|
Financial liabilities |
|
|
|
| ||
|
Liabilities to banks |
325.1 |
325.1 |
1,858.4 |
1,858.4 | ||
|
Corporate bond |
957.1 |
1,039.3 |
489.5 |
530.9 | ||
|
Other financial liabilities to non-banks |
5.0 |
5.0 |
4.5 |
4.5 | ||
|
Lease liabilities* |
540.3 |
540.7 |
475.0 |
475.8 | ||
|
Trade payables |
556.5 |
556.5 |
646.0 |
646.0 | ||
|
Other liabilities |
488.1 |
488.3 |
503.1 |
503.6 | ||
|
thereof non-derivative liabilities |
151.8 |
151.8 |
159.2 |
159.2 | ||
|
thereof liabilities from finance leases* |
303.3 |
303.5 |
300.3 |
300.8 | ||
|
thereof derivative liabilities |
33.1 |
33.1 |
43.6 |
43.6 | ||
Fair value measurement and assignment to classification levels
The following tables show the assignment of fair values to the individual classification levels as defined by IFRS 13 for financial instruments measured at fair value.
|
Financial instruments measured at fair value |
>>TABLE 27 | |||
|
|
Fair value hierarchy |
| ||
|
in € million |
Level 1 |
Level 2 |
Level 3 |
30/09/2013 |
|
|
|
|
|
|
|
Financial assets |
|
|
|
22.1 |
|
thereof available-for-sale |
0.8 |
|
|
0.8 |
|
thereof derivative instruments |
|
2.6 |
18.8 |
21.3 |
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
33.1 |
|
thereof derivative instruments |
|
1.0 |
32.1 |
33.1 |
|
Financial instruments measured at fair value |
>>TABLE 28 | |||
|
|
Fair value hierarchy |
| ||
|
in € million |
Level 1 |
Level 2 |
Level 3 |
31/12/2012 |
|
|
|
|
|
|
|
Financial assets |
|
|
|
24.7 |
|
thereof available-for-sale |
0.8 |
|
|
0.8 |
|
thereof derivative instruments |
|
4.2 |
19.7 |
23.9 |
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
43.6 |
|
thereof derivative instruments |
|
27.1 |
16.5 |
43.6 |
Level 1 comprises available-for-sale assets for which the fair value is calculated using prices quoted in an active market.
All interest-rate swaps and currency forwards are classified as Level 2. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows. Both contractually agreed payments and forward interest rates are used to estimate the future cash flows, which are then discounted on the basis of a yield curve that is observable in the market. The existing interest-rate hedges were unwound in the third quarter of 2013. The fair value of currency forwards is calculated by the system using the discounting method based on forward rates on the reporting date.
The financial assets and liabilities allocated to Level 3 relate to a put option held by Linde Material Handling GmbH, Aschaffenburg and two call options held by Weichai Power on the remaining shares in Linde Hydraulics. The Black-Scholes model is used to calculate the fair value of the put option and the two call options. There were the following material changes in fair value and impacts on the income statement for the first nine months of the year to 30 September 2013, although there was no material impact in the third quarter.
|
Development of financial assets / liabilities classified as level 3 |
>>TABLE 29 |
|
in € million |
|
|
|
|
|
Value as at 1/1/2013 |
3.2 |
|
Losses recognised in net financial expenses |
–16.6 |
|
Value as at 30/09/2013 |
–13.4 |
|
|
|
|
Losses of the period relating to financial assets / liabilities held as at 30/09/2013 |
–16.6 |
|
Change in unrealised losses for the period relating to financial assets / liabilities held as at 30/09/2013 |
–16.6 |
The fair values are measured using probability-weighted scenario analysis, on which the key, unobservable input parameters in the table above are based.
|
Significant unobservable inputs of level 3 |
>>TABLE 30 | |
|
Financial assets / liabilities |
Input |
Value as at |
|
|
|
|
|
Put-Option |
Initial exercise price (in € million) |
77.4 |
|
|
Fair value of the remaining shares in Linde Hydraulics (in € million) |
116.1 |
|
|
Residual time (in years) |
1.7 – 3.7 |
|
|
|
|
|
Call-Option 1 |
Initial exercise price (in € million) |
77.4 |
|
|
Fair value of the remaining shares in Linde Hydraulics (in € million) |
116.1 |
|
|
Residual time (in years) |
4.2 |
|
|
|
|
|
Call-Option 2 |
Initial exercise price (in € million) |
38.7 |
|
|
Fair value of the remaining shares in Linde Hydraulics (in € million) |
116.1 |
|
|
Residual time (in years) |
1.7 – 4.2 |
As at 30 September 2013, the net value calculated for the options on the remaining shares in Linde Hydraulics came to minus € 13.4 million (31 December 2012: € 3.2 million). If the fair value of the shares had been 10.0 per cent lower on the reporting date, the net value arising from the options would have increased by € 9.6 million (31 December 2012: € 8.3 million) to minus € 3.8 million (31 December 2012: € 11.5 million) and led to a lower expense of € 9.6 million (31 December 2012: additional gain of € 8.3 million). A 10.0 per cent rise in the fair value of the shares in Linde Hydraulics would have reduced the net value arising from the options by € 9.7 million (31 December 2012: € 9.0 million) to minus € 23.0 million (31 December 2012: € 5.8 million) and led to an additional expense of € 9.7 million (31 December 2012: € 9.0 million).
In order to eliminate default risk to the greatest possible extent, the KION Group only enters into derivatives with investment-grade counterparties.
If events or changes in circumstances make it necessary to reclassify financial instruments as a different level, they are reclassified at the end of a reporting period. No financial instruments were transferred between Levels 1, 2 or 3 in the first nine months of 2013.