LensCrafters 2013 Annual Report Download - page 181

Footnotes to the statutory financial statements as of December 31, 2013 Page 14 of 71
The following table reports the Company's at-fair-value financial assets and liabilities according to this hierarchy:
(in thousands
of Euro) Fair Value at the reporting date using:
Description Classification Dec-31-2013 Level 1 Level 2 Level 3
Forex forwards Other current assets 1,834 1,834
Interest rate derivatives Other non-current
liabilities
Forex forwards and interest
rate derivatives Other current liabilities 490 490
(in thousands
of Euro) Fair Value at the reporting date using:
Description Classification Dec-31-2012 Level 1 Level 2 Level 3
Forex forwards Other current assets 3,086 3,086
Interest rate derivatives Other non-current
liabilities
Forex forwards and interest
rate derivatives Other current liabilities 1,977 1,977
As of December 31, 2013, none of the Company's financial instruments were valued using Level 3 fair value
measurements.
The Company maintains policies and procedures that aim at valuing the fair value of assets and liabilities using the
best and most relevant data available.
The Company’s portfolio of foreign exchange derivatives includes only forex forward contracts maturing in less than
one year for the most traded currency pairs. The fair value of the portfolio is calculated using internal models that use
market observable inputs including yield curves, and foreign exchange spot and forward prices.
The fair value of the interest rate derivatives portfolio is calculated using internal models that maximize the use of
market observable inputs such as interest rates, yield curves and foreign exchange spot prices.
The following disclosures report the fair value and information about the size and nature of each category of
derivative financial instrument entered into by the Company and analyzed according to the characteristics and
purpose of such instruments.