The KION Group uses both primary and derivative financial instruments.
The following section summarises the relevance of these financial instruments for the KION Group.
The following table shows the measurement categories defined by IAS 39. In line with IFRS 7, the table shows the carrying amounts and fair values of financial assets and liabilities:
|
Carrying amounts broken down by class and category | ||||||||||
|
|
Carrying |
Categories |
Fair Value | |||||||
|
Classes |
FAHfT |
AfS |
LaR |
HtM |
FLaC |
FLHfT | ||||
|
€ thousand |
2011 |
|
|
|
|
|
|
| ||
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||
|
Financial assets |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
Loans receivable |
795 |
|
|
795 |
|
|
|
795 | ||
|
Financial receivables |
5,351 |
|
|
5,351 |
|
|
|
5,351 | ||
|
Available-for-sale investments |
768 |
|
768 |
|
|
|
|
768 | ||
|
Lease receivables* |
361,221 |
|
|
|
|
|
|
362,319 | ||
|
Trade receivables |
676,553 |
|
|
676,553 |
|
|
|
676,553 | ||
|
Other receivables |
59,514 |
|
|
|
|
|
|
59,514 | ||
|
thereof non-derivative receivables |
36,237 |
|
|
36,237 |
|
|
|
36,237 | ||
|
thereof derivative financial instruments |
23,277 |
21,500 |
|
|
|
|
|
23,277 | ||
|
Cash and cash equivalents |
373,451 |
|
|
|
|
|
|
373,451 | ||
|
|
|
|
|
|
|
|
|
| ||
|
Financial liabilities |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
Liabilities to banks |
2,509,889 |
|
|
|
|
2,509,889 |
|
2,509,889 | ||
|
Capital market liability |
487,508 |
|
|
|
|
487,508 |
|
388,750 | ||
|
Other financial liabilities |
7,333 |
|
|
|
|
7,333 |
|
7,333 | ||
|
Shareholder loan |
643,132 |
|
|
|
|
643,132 |
|
530,045 | ||
|
Lease liabilities* |
701,512 |
|
|
|
|
|
|
700,785 | ||
|
Trade payables |
634,092 |
|
|
|
|
634,092 |
|
634,092 | ||
|
Other liabilities |
197,968 |
|
|
|
|
|
|
197,968 | ||
|
thereof non-derivative liabilities |
180,226 |
|
|
|
|
180,226 |
|
180,226 | ||
|
thereof derivative financial instruments |
17,742 |
|
|
|
|
|
2,471 |
17,742 | ||
|
Carrying amounts broken down by class and category | ||||||||||
|
|
Carrying |
Categories |
Fair Value | |||||||
|
Classes |
FAHfT |
AfS |
LaR |
HtM |
FLaC |
FLHfT | ||||
|
€ thousand |
2010 |
|
|
|
|
|
|
| ||
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||
|
Financial assets |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
Loan receivable |
1,907 |
|
|
1,907 |
|
|
|
1,907 | ||
|
Financial receivables |
8,117 |
|
|
8,117 |
|
|
|
8,117 | ||
|
Available-for-sale investments |
825 |
|
825 |
|
|
|
|
825 | ||
|
Lease receivables* |
367,758 |
|
|
|
|
|
|
374,358 | ||
|
Trade receivables |
633,265 |
|
|
633,265 |
|
|
|
633,265 | ||
|
Other receivables |
59,122 |
|
|
|
|
|
|
59,122 | ||
|
thereof non-derivative receivables |
35,416 |
|
|
35,416 |
|
|
|
35,416 | ||
|
thereof derivative financial instruments |
23,706 |
19,900 |
|
|
|
|
|
23,706 | ||
|
Cash and cash equivalents |
252,884 |
|
|
|
|
|
|
252,884 | ||
|
|
|
|
|
|
|
|
|
| ||
|
Financial liabilities |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
Liabilities to banks |
2,871,887 |
|
|
|
|
2,871,887 |
|
2,871,887 | ||
|
Capital market liability |
0 |
|
|
|
|
0 |
|
0 | ||
|
Other financial liabilities |
7,000 |
|
|
|
|
7,000 |
|
7,000 | ||
|
Shareholder loan |
615,250 |
|
|
|
|
615,250 |
|
554,358 | ||
|
Lease liabilities* |
661,649 |
|
|
|
|
|
|
666,622 | ||
|
Trade payables |
508,108 |
|
|
|
|
508,108 |
|
508,108 | ||
|
Other liabilities |
186,083 |
|
|
|
|
|
|
186,083 | ||
|
thereof non-derivative liabilities |
156,053 |
|
|
|
|
156,053 |
|
156,053 | ||
|
thereof derivative financial instruments |
30,030 |
|
|
|
|
|
5,029 |
30,030 | ||
The change in valuation allowances for lease receivables and trade receivables was as follows:
|
Change in valuation allowances | ||
|
€ thousand |
2011 |
2010 |
|
|
|
|
|
Valuation allowances as at 1 January |
47,125 |
48,614 |
|
Group changes |
626 |
− |
|
Additions (cost of valuation allowances) |
10,547 |
13,912 |
|
Reversals |
-3,092 |
-9,466 |
|
Utilisations |
-5,425 |
-4,212 |
|
Currency translation adjustments |
-216 |
-1,723 |
|
Valuation allowances as at 31 December |
49,565 |
47,125 |
The net gains and losses on financial instruments by IAS 39 category are as follows:
|
Net gains and losses on financial instruments broken down by category | ||
|
€ thousand |
2011 |
2010 |
|
|
|
|
|
Loans and receivables (LaR) |
2,062 |
9,223 |
|
|
|
|
|
Available-for-sale investments (AfS) |
13 |
15 |
|
|
|
|
|
Financial assets held for trading (FAHfT) |
14,360 |
39,381 |
|
|
|
|
|
Financial liabilities held for trading (FLHfT) |
-10,109 |
-27,063 |
|
|
|
|
|
Financial liabilities carried at amortised cost (FLaC) |
-225,277 |
-220,979 |
The above gains and losses do not include losses arising on hedging transactions amounting to €18,464 thousand (2010: €38,087 thousand) because these losses relate to a documented hedge.
Fair value measurement
The majority of the funding, loans, investments, other non-derivative receivables and liabilities, trade receivables and trade payables held by the Group have short remaining terms to maturity. The carrying amounts of these financial instruments approximate their fair values.
The fair value of derivative financial instruments is determined using appropriate valuation methods on the basis of observable market information at the reporting date. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows. The fair value of currency forwards is calculated on the basis of the forward rates at the reporting date. In the KION Group, all derivative financial instruments are classified as level 2 measurement as defined by IFRS 7.
In order to minimise default risk to the greatest possible extent, the KION Group only enters into derivatives with counterparties holding a high credit rating.
With the exception of derivative financial instruments and available-for-sale assets, all financial assets and liabilities are measured at amortised cost.
|
Financial assets measured at fair value | ||
|
€ thousand |
2011 |
2010 |
|
|
|
|
|
Financial assets |
24,045 |
24,531 |
|
thereof available-for-sale |
768 |
825 |
|
thereof derivative instruments |
23,277 |
23,706 |
|
Financial liabilities measured at fair value | ||
|
€ thousand |
2011 |
2010 |
|
|
|
|
|
Financial liabilities |
17,742 |
30,030 |
|
thereof derivative instruments |
17,742 |
30,030 |
The fair value of available-for-sale assets is determined on the basis of quoted prices in an active market. These assets are classified as level 1 as defined by IFRS 7.
