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[43] Other disclosures on financial instruments 

The following table presents the reconciliation of the balance sheet items to the classes of financial instruments in accordance with IFRS 7:

XLS

 

 

 

 

 

 

 

 

 

 

Subsequent measurement according to IAS 39

 

 

€ million

Book value
Dec. 31, 2011

Amortized cost

At cost

Fair value

Carrying
value according
to IAS 17

Non-financial
items

Fair value
Dec. 31, 2011

The fair values of derivatives stated here do not include accrued interest (clean price).

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

937.8

937.8

–

–

–

–

937.8

Marketable securities and financial assets

1,117.1

787.3

–

329.8

–

–

 

Held for trading (non-derivatives)

–

–

–

–

–

–

–

Non-hedging derivatives

6.4

–

–

6.4

–

–

6.4

Held to maturity

27.3

27.3

–

–

–

–

27.3

Loans and receivables

760.0

760.0

–

–

–

–

760.0

Available-for-sale

307.9

–

–

307.9

–

–

307.9

Hedging derivatives

15.5

–

–

15.5

–

–

15.5

Trade receivables

2,328.3

2,328.3

–

–

–

–

 

Loans and receivables

2,328.3

2,328.3

–

–

–

–

2,328.3

Current and non-current other assets

305.1

90.6

–

2.6

–

211.9

 

Non-hedging derivatives

0.6

–

–

0.6

–

–

0.6

Loans and receivables

90.6

90.6

–

–

–

–

90.6

Hedging derivatives

2.0

–

–

2.0

–

–

2.0

Non-financial items

211.9

–

–

–

–

211.9

 

Non-current financial assets

60.3

18.6

32.6

9.1

–

–

 

Non-hedging derivatives

–

–

–

–

–

–

–

Held to maturity

–

–

–

–

–

–

–

Loans and receivables

18.6

18.6

–

–

–

–

18.6

Available-for-sale

41.3

–

32.6

8.7

–

–

41.3

Hedging derivatives

0.4

–

–

0.4

–

–

0.4

Financial assets covering pensions

–

–

–

–

–

–

 

Held to maturity

–

–

–

–

–

–

–

Available-for-sale

–

–

–

–

–

–

–

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Current and non-current financial liabilities

5,539.3

5,308.0

–

219.5

11.8

–

 

Non-hedging derivatives

27.8

–

–

27.8

–

–

27.8

Other liabilities

5,308.0

5,308.0

–

–

–

–

5,548.1

Hedging derivatives

191.7

–

–

191.7

–

–

191.7

Finance lease

11.8

–

–

–

11.8

–

11.8

Trade accounts payable

1,100.8

1,100.8

–

–

–

–

 

Other liabilities

1,100.8

1,100.8

–

–

–

–

1,100.8

Current and non-current other liabilities

1,145.7

532.9

–

101.1

–

511.7

 

Non-hedging derivatives

3.6

–

–

3.6

–

–

3.6

Other liabilities

532.9

532.9

–

–

–

–

532.9

Hedging derivatives

97.5

–

–

97.5

–

–

97.5

Non-financial items

511.7

–

–

–

–

511.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsequent measurement according to IAS 39

 

 

€ million

Book value
Dec. 31, 2010

Amortized cost

At cost

Fair value

Carrying value
according to
IAS 17

Non-financial
items

Fair value
Dec. 31, 2010

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

943.7

943.7

–

–

–

–

943.7

Marketable securities and financial assets

55.6

23.0

–

32.6

–

–

 

Held for trading (non-derivatives)

–

–

–

–

–

–

–

Non-hedging derivatives

–

–

–

–

–

–

–

Held to maturity

22.7

22.7

–

–

–

–

22.7

Loans and receivables

0.3

0.3

–

–

–

–

0.3

Available-for-sale

11.3

–

–

11.3

–

–

11.3

Hedging derivatives

21.3

–

–

21.3

–

–

21.3

Trade receivables

2,296.3

2,296.3

–

–

–

–

 

Loans and receivables

2,296.3

2,296.3

–

–

–

–

2,296.3

Current and non-current other assets

617.6

407.1

–

2.6

–

207.9

 

Non-hedging derivatives

1.3

–

–

1.3

–

–

1.3

Loans and receivables

407.1

407.1

–

–

–

–

407.1

Hedging derivatives

1.3

–

–

1.3

–

 

1.3

Non-financial items

207.9

–

–

–

–

207.9

 

Non-current financial assets

130.3

16.6

57.2

56.5

–

–

 

Non-hedging derivatives

–

–

–

–

–

–

–

Held to maturity

–

–

–

–

–

–

–

Loans and receivables

16.6

16.6

–

–

–

–

16.6

Available-for-sale

95.8

–

57.2

38.6

–

–

95.8

Hedging derivatives

17.9

–

–

17.9

–

–

17.9

Financial assets covering pensions

216.9

64.6

–

152.3

–

–

 

Held to maturity

64.6

64.6

–

–

–

–

64.6

Available-for-sale

152.3

–

–

152.3

–

–

152.3

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Current and non-current financial liabilities

5,483.5

5,367.7

–

108.7

7.1

–

 

Non-hedging derivatives

15.8

–

–

15.8

–

–

15.8

Other liabilities

5,367.7

5,367.7

–

–

–

–

5,532.1

Hedging derivatives

92.9

–

–

92.9

–

–

92.9

Finance lease

7.1

–

–

–

7.1

–

7.1

Trade accounts payable

1,200.1

1,200.1

–

–

–

–

 

Other liabilities

1,200.1

1,200.1

–

–

–

–

1,200.1

Current and non-current other liabilities

1,097.5

486.3

–

37.9

–

573.3

 

Non-hedging derivatives

3.5

–

–

3.5

–

–

3.5

Other liabilities

486.3

486.3

–

–

–

–

486.3

Hedging derivatives

34.4

–

–

34.4

–

–

34.4

Non-financial items

573.3

–

–

–

–

573.3

 

The net result of financial instruments comprises the impact of financial instruments on income. This includes mainly measurement results from currency translation, the adjustment to fair value, write-downs and write-ups as well as the recognition of premiums and discounts. Dividends and interest are not recognized in the net result of financial instruments, except for in the category “held for trading,” which at Merck only includes derivatives that are not hedged.

The net results of financial instruments by category are as follows:

XLS

 

 

 

 

 

 

 

 

Net results

2011 € million

Interest

Write-downs

Write-ups

Fair value
changes

Disposal
gains/losses

Financial instrument of the category

 

 

 

 

 

Held for trading

–

–

–

–57.5

–

Held to maturity

4.7

–

–

–

–0.8

Loans and receivables

37.5

–123.7

9.2

–

–

Available-for-sale

9.5

–38.3

0.9

–

26.9

Other liabilities

–209.2

–

–

–

–

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net results

2010 € million

Interest

Write-downs

Write-ups

Fair value
changes

Disposal
gains/losses

Financial instrument of the category

 

 

 

 

 

Held for trading

–

–

–

18.3

–

Held to maturity

15.2

–0.2

–

–

1.5

Loans and receivables

5.2

–72.4

9.3

–

–

Available-for-sale

10.8

–2.1

–

–

–

Other liabilities

–195.7

–

–

–

–

In 2011, taking into account the relevant economic hedging transactions, foreign exchange gains of € 12.3 million resulting from receivables and payables in operating business were recognized (2010: € 24.7 million). Foreign exchange losses of € 30.4 million (2010: gains of € 1.1 million) were booked for financial receivables/payables and measures to secure them. Losses of € 17.1 million (2010: gains of € 11.8 million) were booked for hedging of financial transactions.

The fair value of stocks and bonds is mainly based on the official market prices and market values quoted on the balance sheet date. The fair value of interest-bearing securities is determined by discounting future cash flows using market interest rates. Forward exchange contracts and currency options are carried at fair value. They are measured using spot middle rates, foreign exchange volatilites and maturity-related interest premiums or discounts in relation to traded market prices applying recognized mathematical principles. The fair value measurement of interest rate forward contracts is based on an objective third-party assessment.The fair value of interest rate swaps held for interest rate hedging purposes is determined with standard market valuation models using interest rate curves available in the market. Compared with 2010, there were no changes in the method used to determine fair values.

The fair values of the financial instruments disclosed in our balance sheet were determined as follows:

XLS

 

 

 

€ million as of Dec. 31, 2011

Assets

Liabilities

Prices quoted in an active market (Level 1)

58.4

–

thereof available-for-sale

58.4

–

Valuation technique including data from observable markets (Level 2)

283.1

–320.6

thereof available-for-sale

258.2

–

thereof hedging derivatives

17.9

–289.2

thereof non-hedging derivatives

7.0

–31.4

Valuation technique based on assumptions not supported by observable market data (Level 3)

–

–

 

 

 

 

 

 

€ million as of Dec. 31, 2010

Assets

Liabilities

Prices quoted in an active market (Level 1)

202.2

–

thereof available-for-sale

202.2

–

Valuation technique including data from observable markets (Level 2)

41.8

–146.6

thereof available-for-sale

–

–

thereof hedging derivatives

40.5

–127.2

thereof non-hedging derivatives

1.3

–19.4

Valuation technique based on assumptions not supported by observable market data (Level 3)

–

–
© Merck KGaA, Darmstadt, Germany, Last Update 2012/03/06