Airbus 2015 Annual Report Download - page 254

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 72 l
Notes to the IFRSConsolidatedFinancialStatements
2.7 Capital Structure and Financial Instruments
 Level2: inputs other than quoted prices that are observable for
the asset or liability – fair values measured based on Level2
input typically rely on observable market data such as interest
rates, foreign exchange rates, credit spreads or volatilities.
 Level3: inputs for the asset or liability that are not based
on observable market data – fair values measured based
on Level3 input rely to a significant extent on estimates
derived from the Group’s own data and may require the use
of assumptions that are inherently judgemental and involve
various limitations.
The fair values disclosed for financial instruments accounted for
at amortised cost reflect Level2 input. Otherwise, fair values
are determined mostly based on Level1 and Level2 input and
to a minor extent on Level3 input.
The following table presents the carrying amounts of the financial instruments held at fair value across the three levels of the fair
value hierarchy as of 31December 2015 and 2014, respectively:
(In € million) Level1 Level2 Level3 Total Level1 Level2 Level3 Total
Financial assets measured at fair value 
Equity instruments 828 0 0 828 208 0 0 208
Derivative instruments 01,234 46 1,280 0708 2710
Securities 11,474 165 011,6 39 7,78 4 1,388 09,172
Cash equivalents 3,941 2,130 06,071 3,563 1,442 05,005
Total 16,243 3,529 46 19,818 11,555 3,538 215,095
Financial liabilities measured at fair value 
Derivative instruments 0(10,587) 0(10,587) 0(5,503) 0(5,503)
Other liabilities 0 0 (74) (74) 0 0 (137) (137)
Total 0(10,587) (74) (10,661) 0(5,503) (137) (5,640)
31December 2015 31December 2014
The development of financial instruments of Level3 is as follows:
(In € million)
Commodity
swap
ageements
Other
derivative
instruments Derivative instruments
Written put
options on
NCI interests Earn-out agreements Other liabilities
1January 2014 26 834 (129) (51) (180)
Total gains or losses in profit or loss (1) 0(1) 238 40
Settlements (23) (8) (31) 0 3 3
31December 2014 2 0 2 (127) (10) (137)
Total gains or losses in profit or loss 59 059 0 0 0
OCI 0 0 0 60 060
Settlements (15) 0(15) 3 0 3
31December 2015 46 046 (64) (10) (74)
Financial assets Financial liabilities
The profit of the period impact attributable to Level3 financial
assets and liabilities which are still held by the Group as of
31December 2015 was a gain of € 46million. The profit of
the period impact attributable to Level3 financial assets and
liabilities which are still held by the Group as of 31December
2014 was a gain of € 1million and € 24million respectively.
Financial Assets Classified as Level3
The financial assets measured at fair value that are classified
as Level3 mainly consist of short-term commodity contracts
whose notional amounts vary with the actual volumes of certain
commodity purchases made by the Group in specific months.
For fair value measurement purposes, the notional amounts,
being the unobservable input, are set with reference to monthly
commodity volumes that management expects to purchase
based on planning forecasts. The fair values are otherwise
determined using observable market data including quoted
interest rates and pricing information obtained from recognised
vendors of market data.
A deviation of 10% of actual monthly volumes purchased
from expected monthly volumes purchased would increase or
decrease (depending on whether actual volumes are 10% more
or 10% less than expected volumes) the total Level3 fair value of
these short-term commodity contracts by less than € 5million.
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015