The following table presents the reconciliation of the balance sheet items to the classes of financial instruments in accordance with IFRS 7:
| XLS |
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Subsequent measurement according to IAS 39 |
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|
€ million |
Book value Dec. 31, 2012 |
Amortized cost |
At cost |
Fair value |
Carrying |
Non-financial items |
Fair value | ||||
| |||||||||||
|
Assets |
|
|
|
|
|
|
| ||||
|
Cash and cash equivalents |
729.7 |
729.7 |
– |
– |
– |
– |
729.7 | ||||
|
Current financial assets |
1,797.9 |
549.7 |
– |
1,248.2 |
– |
– |
| ||||
|
Held for trading (non-derivatives) |
– |
– |
– |
– |
– |
– |
– | ||||
|
Non-hedging derivatives |
7.8 |
– |
– |
7.8 |
– |
– |
7.8 | ||||
|
Held to maturity |
349.7 |
349.7 |
– |
– |
– |
– |
349.7 | ||||
|
Loans and receivables |
200.0 |
200.0 |
– |
– |
– |
– |
200.3 | ||||
|
Available-for-sale |
1,230.1 |
– |
– |
1,230.1 |
– |
– |
1,230.1 | ||||
|
Hedging derivatives |
10.3 |
– |
– |
10.3 |
– |
– |
10.3 | ||||
|
Trade receivables |
2,114.6 |
2,114.6 |
– |
– |
– |
– |
| ||||
|
Loans and receivables |
2,114.6 |
2,114.6 |
– |
– |
– |
– |
2,114.6 | ||||
|
Current and non-current other assets |
346.9 |
88.8 |
– |
55.3 |
– |
202.8 |
| ||||
|
Non-hedging derivatives |
2.7 |
– |
– |
2.7 |
– |
– |
2.7 | ||||
|
Loans and receivables |
88.8 |
88.8 |
– |
– |
– |
– |
88.8 | ||||
|
Hedging derivatives |
52.6 |
– |
– |
52.6 |
– |
– |
52.6 | ||||
|
Non-financial items |
202.8 |
– |
– |
– |
– |
202.8 |
| ||||
|
Non-current financial assets |
97.1 |
48.0 |
41.8 |
7.3 |
– |
– |
| ||||
|
Non-hedging derivatives |
– |
– |
– |
– |
– |
– |
– | ||||
|
Held to maturity |
30.0 |
30.0 |
– |
– |
– |
– |
30.0 | ||||
|
Loans and receivables |
18.0 |
18.0 |
– |
– |
– |
– |
18.0 | ||||
|
Available-for-sale |
48.7 |
– |
41.8 |
6.9 |
– |
– |
48.7 | ||||
|
Hedging derivatives |
0.4 |
– |
– |
0.4 |
– |
– |
0.4 | ||||
|
|
|
|
|
|
|
|
| ||||
|
Liabilities |
|
|
|
|
|
|
| ||||
|
Current and non-current financial liabilities |
4,453.5 |
4,284.2 |
– |
159.5 |
9.8 |
– |
| ||||
|
Non-hedging derivatives |
4.7 |
– |
– |
4.7 |
– |
– |
4.7 | ||||
|
Other liabilities |
4,284.2 |
4,284.2 |
– |
– |
– |
– |
4,715.7 | ||||
|
Hedging derivatives |
154.8 |
– |
– |
154.8 |
– |
– |
154.8 | ||||
|
Finance lease |
9.8 |
– |
– |
– |
9.8 |
– |
9.8 | ||||
|
Trade accounts payable |
1,288.3 |
1,288.3 |
– |
– |
– |
– |
| ||||
|
Other liabilities |
1,288.3 |
1,288.3 |
– |
– |
– |
– |
1,288.3 | ||||
|
Current and non-current other liabilities |
1,105.6 |
522.9 |
– |
15.0 |
– |
567.7 |
| ||||
|
Non-hedging derivatives |
0.4 |
– |
– |
0.4 |
– |
– |
0.4 | ||||
|
Other liabilities |
522.9 |
522.9 |
– |
– |
– |
– |
522.9 | ||||
|
Hedging derivatives |
14.6 |
– |
– |
14.6 |
– |
– |
14.6 | ||||
|
Non-financial items |
567.7 |
– |
– |
– |
– |
567.7 |
| ||||
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|
Subsequent measurement according to IAS 39 |
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|
€ million |
Book value Dec. 31, 2011 |
Amortized cost |
At cost |
Fair value |
Carrying |
Non-financial items |
Fair value | ||||
|
Assets |
|
|
|
|
|
|
| ||||
|
Cash and cash equivalents |
937.8 |
937.8 |
– |
– |
– |
– |
937.8 | ||||
|
Current 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 |
306.91 |
90.6 |
– |
2.6 |
– |
213.71 |
| ||||
|
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 |
213.71 |
– |
– |
– |
– |
213.71 |
| ||||
|
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 | ||||
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Liabilities |
|
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| ||||
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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 |
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The net result of financial instruments mainly includes measurement results from currency translation, fair value adjustments, 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.” At Merck, the category “held for trading” only includes derivatives that are not hedged.
The net results of financial instruments by category were as follows:
| XLS |
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Net results | |||
|
2012 € million |
Interest |
Write-downs |
Write-ups |
Fair value adjustments |
Disposal gains / losses |
|
Financial instrument of the category |
|
|
|
|
|
|
Held for trading |
– |
– |
– |
44.4 |
– |
|
Held to maturity |
10.5 |
– |
– |
– |
– |
|
Loans and receivables |
7.9 |
–69.9 |
42.4 |
– |
– |
|
Available-for-sale |
11.4 |
–5.1 |
20.8 |
– |
0.3 |
|
Other liabilities |
–195.3 |
– |
– |
– |
– |
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Net results | |||
|
2011 € million |
Interest |
Write-downs |
Write-ups |
Fair value adjustments |
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 |
– |
– |
– |
– |
In 2012, foreign exchange losses of € 60.4 million resulting from receivables and payables in operating business, their economic hedging, as well as hedging of planned transactions in operating business were recorded (2011: gains of € 12.3 million). Foreign exchange gains of € 11.2 million resulting from financial balance sheet items, their economic hedging as well as fair value fluctuations of option contracts to hedge planned transactions were recorded (2011: losses of € 30.4 million).
The fair value of financial assets is based on the official market prices and market values quoted on the balance sheet date (Level 1 assets) as well as mathematical calculation models with inputs observable in the market on the balance sheet date. Level 1 assets comprise stocks and bonds and are classified as “available-for-sale”. Level 2 assets are primarily interest-bearing securities classified as “available-for-sale” as well as hedging and non-hedging derivatives. The fair value of interest-bearing securities is determined by discounting future cash flows using market interest rates. The fair value measurement of forward exchange contracts and currency options uses spot and forward rates as well as foreign exchange volatilities applying recognized mathematical principles. The fair value of interest rate swaps is determined with standard market valuation models using interest rate curves available in the market.
The fair values of the financial instruments disclosed in our balance sheet were determined as follows:
| XLS |
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|
€ million as of Dec. 31, 2012 |
Assets |
Liabilities |
|
Fair value determined by official prices and quoted market values (Level 1) |
818.3 |
– |
|
thereof available-for-sale |
818.3 |
– |
|
Fair value determined using inputs observable in the market (Level 2) |
492.5 |
–174.5 |
|
thereof available-for-sale |
418.7 |
– |
|
thereof hedging derivatives |
63.3 |
–169.4 |
|
thereof non-hedging derivatives |
10.5 |
–5.1 |
|
Fair value determined using inputs unobservable in the market (Level 3) |
– |
– |
|
|
|
|
|
|
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|
|
€ million as of Dec. 31, 2011 |
Assets |
Liabilities |
|
Fair value determined by official prices and quoted market values (Level 1) |
58.4 |
– |
|
thereof available-for-sale |
58.4 |
– |
|
Fair value determined using inputs observable in the market (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 |
|
Fair value determined using inputs unobservable in the market (Level 3) |
– |
– |
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