Reebok 2015 Annual Report Download - page 237

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CONSOLIDATED FINANCIAL STATEMENTS
Notes – Notes to the Consolidated Statement of Financial Position
NETGAINS/LOSSES ON FINANCIAL INSTRUMENTS RECOGNISED IN THE CONSOLIDATED
INCOME STATEMENT
€ in millions Year ending
Dec. 31, 2015
Year ending
Dec. 31, 2014
Financial assets or financial liabilities at fair value through profit or loss (1) (13)
Thereof: designated as such upon initial recognition – –
Thereof: classified as held for trading (1) (13)
Loans and receivables (17) (26)
Available-for-sale financial assets – –
Financial liabilities measured at amortised cost 10 12
Net gains or losses on financial assets or financial liabilities held for trading include the effects from fair
value measurements of the derivatives that are not part of a hedging relationship, and changes in the fair
value of other financial instruments as well as interest payments.
Net gains or losses on loans and receivables comprise mainly impairment losses and reversals.
Net gains or losses on financial liabilities measured at amortised cost include effects from early
settlement and reversals of accrued liabilities.
The disclosures required by IFRS 7 ‘Financial Instruments: Disclosures’, paragraphs 13A to 13F
(‘Offsetting financial assets and financial liabilities’) as well as 31 to 42 (‘Nature and Extent of Risks arising
from Financial Instruments’) can be found in NOTE 07 and the Group Management Report SEE RISK
AND OPPORTUNITY REPORT, P. 156.
Financial instruments for the hedging of foreign exchange risk
The adidas Group uses natural hedges and arranges forward exchange contracts, currency options
and currency swaps to protect against foreign exchange risk. As at December 31, 2015, the Group had
outstanding currency options with premiums paid totalling an amount of € 0 million (2014: € 0 million). The
effective part of the currency hedges is directly recognised in hedging reserves and as part of the acquisition
costs of inventories, respectively, and posted into the income statement at the same time as the underlying
secured transaction is recorded. An amount of negative € 1 million after taxes (2014: positive € 22 million)
for currency options and an amount of positive € 112 million after taxes (2014: positive € 154 million) for
forward exchange contracts were recorded in hedging reserves. Currency option premiums impacted net
income in the amount of € 1 million in 2015 (2014: € 3 million).
The total time value of the currency options not being part of a hedge in an amount of positive € 0 million
(2014: negative € 0 million) was recorded in the income statement in 2015. In 2015, due to a change in the
exposure, some of the currency hedges were terminated and consequently an amount of negative € 1 million
was reclassified from hedging reserves to the income statement.
In the years ending December 31, 2015 and 2014, hedging instruments related to product sourcing were
bought to hedge a total net amount of US $ 6.2 billion and US $ 5.6 billion, respectively.
The notional amounts of all outstanding currency hedging instruments, which are mainly related to
cash flow hedges, are summarised in the following table:
NOTIONAL AMOUNTS OF ALLOUTSTANDING CURRENCY HEDGING INSTRUMENTS
€ in millions Dec. 31, 2015 Dec. 31, 2014
Forward exchange contracts 8,926 6,738
Currency options 59 278
Total 8,985 7,016