11. Financial Instruments

The tables below shows the carrying amounts and fair values of financial assets and financial liabilities, as well as their classification in the fair value hierarchy.

Financial Assets as of 30.09.2015

in € thousand

 

Carrying amount

 

Fair value

 

 

Loans and receivables

 

Available for sale

 

Balance sheet value

 

Level 1

 

Level 2

 

Level 3

 

Total

Financial assets at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets (securities)

 

 

 

3,822

 

3,822

 

3,822

 

 

 

 

 

3,822

 

 

0

 

3,822

 

3,822

 

 

 

 

 

 

 

 

Financial assets not measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets

 

14,235

 

6,089

 

20,324

 

 

 

 

 

 

 

 

Trade receivables

 

132,918

 

 

 

132,918

 

 

 

 

 

 

 

 

Receivables from related parties

 

77,694

 

 

 

77,694

 

 

 

 

 

 

 

 

Other financial receivables

 

2,985

 

 

 

2,985

 

 

 

 

 

 

 

 

Cash, cash equivalents and short-term deposits

 

167,328

 

 

 

167,328

 

 

 

 

 

 

 

 

 

 

395,160

 

6,089

 

401,249

 

 

 

 

 

 

 

 

Financial Liabilities as of 30.09.2015

in € thousand

 

Carrying amount

 

Fair value

 

 

Held for trading

 

Fair value hedging instruments

 

Other financial liabilities

 

Balance sheet value

 

Level 1

 

Level 2

 

Level 3

 

Total

Financial liabilities measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities (interest rate swaps used for hedging transactions)

 

72

 

176

 

 

 

248

 

 

 

248

 

 

 

248

 

 

72

 

176

 

0

 

248

 

 

 

 

 

 

 

 

Financial liabilities not measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities (liabilities from bank loans)

 

 

 

 

 

335,352

 

335,352

 

 

 

340,010

 

 

 

340,010

Financial liabilities (finance lease liabilities)

 

 

 

 

 

41,109

 

41,109

 

 

 

41,109

 

 

 

41,109

Financial liabilities (other)

 

 

 

 

 

78,574

 

78,574

 

 

 

 

 

 

 

 

Trade liabilities

 

 

 

 

 

67,187

 

67,187

 

 

 

 

 

 

 

 

Liabilities to related parties (finance lease liabilities)

 

 

 

 

 

106,705

 

106,705

 

 

 

106,705

 

 

 

106,705

Liabilities to related parties (other)

 

 

 

 

 

7,715

 

7,715

 

 

 

 

 

 

 

 

 

 

0

 

0

 

636,642

 

636,642

 

 

 

 

 

 

 

 

Financial Assets as of 30.09.2014

in € thousand

 

Carrying amount

 

Fair value

 

 

Loans and receivables

 

Available for sale

 

Balance sheet value

 

Level 1

 

Level 2

 

Level 3

 

Total

Financial assets at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets (securities)

 

 

 

3,896

 

3,896

 

3,896

 

 

 

 

 

3,896

 

 

0

 

3,896

 

3,896

 

 

 

 

 

 

 

 

Financial assets not measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets

 

9,149

 

4,454

 

13,603

 

 

 

 

 

 

 

 

Trade receivables

 

155,001

 

 

 

155,001

 

 

 

 

 

 

 

 

Receivables from related parties

 

64,424

 

 

 

64,424

 

 

 

 

 

 

 

 

Other financial receivables

 

3,162

 

 

 

3,162

 

 

 

 

 

 

 

 

Cash, cash equivalents and short-term deposits

 

199,946

 

 

 

199,946

 

 

 

 

 

 

 

 

 

 

431,682

 

4,454

 

436,136

 

 

 

 

 

 

 

 

Financial Liabilities as of 30.09.2014

in € thousand

 

Carrying amount

 

Fair value

 

 

Held for trading

 

Fair value hedging instruments

 

Other financial liabilities

 

Balance sheet value

 

Level 1

 

Level 2

 

Level 3

 

Total

1

Due to changes in calculation parameters, the reported fair value has changed compared to the previous year interim report.

Financial liabilities measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities (interest rate swaps used for hedging transactions)

 

248

 

429

 

 

 

677

 

 

 

677

 

 

 

677

 

 

248

 

429

 

0

 

677

 

 

 

 

 

 

 

 

Financial liabilities not measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities (liabilities from bank loans)

 

 

 

 

 

287,991

 

287,991

 

 

 

294,205

 

 

 

294,205

Financial liabilities (finance lease liabilities1)

 

 

 

 

 

8,023

 

8,023

 

 

 

8,023

 

 

 

8,023

Financial liabilities (other)

 

 

 

 

 

72,019

 

72,019

 

 

 

 

 

 

 

 

Trade liabilities

 

 

 

 

 

81,765

 

81,765

 

 

 

 

 

 

 

 

Liabilities to related parties (finance lease liabilities)

 

 

 

 

 

106,921

 

106,921

 

 

 

106,921

 

 

 

106,921

Liabilities to related parties (other)

 

 

 

 

 

74,251

 

74,251

 

 

 

 

 

 

 

 

 

 

0

 

0

 

630,970

 

630,970

 

 

 

 

 

 

 

 

In the first nine months of 2015, gains of € 121 thousand (previous year: € 173 thousand) were recognised in the income statement on financial assets and/or liabilities held at fair value through profit and loss. These primarily relate to interest rate hedges with no effective hedging relationship as per IAS 39.

In the reporting year, changes of € 189 thousand (previous year: € 155 thousand) in the fair value of financial instruments designated as hedging instruments (interest rate swaps) were recognised directly in equity.

The interest rate swaps disclosed covered a total amount of € 9,277 thousand (previous year: € 13,101 thousand). Of these, financial instruments covering an amount of € 6,303 thousand (previous year: € 7,381 thousand) with a market value of € - 176 thousand (previous year: € - 430 thousand) were held as part of cash flow hedging relationships to hedge future cash flows from interest-bearing liabilities as of the balance sheet date. The hedged cash flows are expected to occur within 13 months. The amount covered by interest rate swaps is restated in line with the anticipated repayment of the loans over the term of the derivative. The fixed interest rate for the financial liabilities (interest rate swaps) is 3.82 % to 4.33 %. The remaining term of the derivatives is up to 13 months.

There are no material differences between the carrying amounts and fair values of the financial instruments reported under non-current financial liabilities. The discount rates used for liabilities to related parties (particularly the finance lease liabilities included in this item) are between 4.21 % and 5.56 %.

In the third quarter of 2015, the € 65 million loan granted by HGV (the holding company above the HHLA Group) to the Real Estate subgroup (see also the 2014 Annual Report, page 151) was repaid following the placement of promissory note loans with a lower interest rate. Promissory note loans with a total volume of € 70 million were issued to banks and € 5 million to other creditors.

The valuation methods and key unobservable input factors for calculating fair value are described in the Notes to the Consolidated Financial Statements as of 31 December 2014.