Airbus 2015 Annual Report Download - page 104

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 72 l
Management’sDiscussion andAnalysisofFinancial Condition andResultsofOperations
2.1 Operating and Financial Review
2.1.5.1 Cash Flow Hedge Related Impact onAOCI
As of 31December 2015, the notional amount of the Group’s
portfolio of outstanding cash flow hedges amounted to
US$ 101.9billion, hedged against the euro and the pound sterling.
The year‑end mark to market valuation of this portfolio required
under IAS39 resulted in a negative pre‑tax AOCI valuation
change of € ‑4.7billion from 31December 2014, based on a
closing rate of € ‑US$ 1.09 as compared to a negative pre‑tax
AOCI valuation change of € ‑6.4billion as of 31December 2014
from 31December 2013, based on a closing rate of €‑US$ 1.21.
For further information on the measurement of the fair values
of financial instruments, please refer to the “Notes to the IFRS
Consolidated Financial Statements — Note35: Information
about financial instruments”.
Positive pre‑tax mark to market values of cash flow hedges are
included in other financial assets, while negative pre‑tax mark to
market values of cash flow hedges are included in other financial
liabilities. Year‑to‑year changes in the mark to market value of
effective cash flow hedges are recognised as adjustments to
AOCI. These adjustments to AOCI are net of corresponding
changes to deferred tax assets (for cash flow hedges with
negative mark to market valuations) and deferred tax liabilities
(for cash flow hedges with positive mark to market valuations).
Set out below is a graphic presentation of cash flow hedge
related movements in AOCI over the past three years (in €m).
Note: The mark to market of the backlog is not reflected in the
accounts whereas the mark to market of the hedge book is
reflected in AOCI.
CASH FLOW HEDGE RELATED MOVEMENTS IN AOCI IN €M (BASED ON YEAR‑END EXCHANGE RATES)
OCI Net Liability
Net Deferred Taxes
Net Equity OCI
31 December 2015: US$ 1.0931 December 2013: US$ 1.38 31 December 2014: US$ 1.21
2,612
1,465
1,099
1,625
-526
-6,913
-3,332
-9,525
-4,797
As a result of the negative change in the fair market valuation of the cash flow hedge portfolio in 2015, AOCI amounted to a net
liability of € ‑9.5billion for 2015, as compared to a net liability of € ‑4.8billion for 2014. The corresponding € 1.1billion tax effect
led to a net deferred tax asset of € 2.6billion as of 31December 2015 as compared to a net deferred tax asset of € 1.5billion as
of 31December 2014.
For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements — Note35.5: Derivative financial
instruments and hedge accounting disclosure”.
2.1.5.2 Currency Translation Adjustment Impact on AOCI
The € 277million currency translation adjustment related impact on AOCI in 2015 mainly reflects the effect of the variation of the
USdollar.
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015