DHL 2008 Annual Report Download - page 187

Deutsche Post World Net Annual Report 2008
Consolidated Financial Statements
Notes
In addition, cross-currency swaps were used to hedge lia-
bilities in foreign currency against negative changes in the market,
with the liability being transformed into a variable-interest euro-
denominated liability.  is hedged the fair value risk of the interest
and currency component.  e fair value of this interest rate swap
position was –  million as at  December  (previous year:
–  mi l l ion).
 e following table provides an overview of the gains and
losses arising from the hedged items and the respective hedging
transactions:
Ineffective portion of fair value hedges
€ m
2007 2008
Gains (–) / losses (+) on hedged items – 20 56
Gains (–) / losses (+) on hedging transactions 19 – 56
Balance (ineffective portion) – 1 0
Due to major changes in internal  nancing and investments,
the fourth quarter of  saw a signi cant need to adjust the rel-
evant currency hedging transactions. As a result, there was a mas-
sive increase in the notional volume of external derivatives compared
with  December . It will drop signi cantly again a er the
respective hedges become due in the  rst half of .
Fair value hedges
Interest rate swaps were used to hedge the fair value risk of
 xed-interest euro-denominated liabilities.  e fair values of these
interest rate swaps amount to   million (previous year: –  mil-
lion).  e signi cant increase in the fair values compared with 
is explained by the change in market rate levels. As at  December
, a   million (previous year:   million) adjustment was
made to the carrying amount of the underlying hedged item aris-
ing from an interest rate swap unwound in the past.  e adjustment
to the carrying amount is amortised over the remaining term of
the liability using the e ective interest method, and reduces future
interest expense.
Derivative fi nancial instruments
€ m Fair values 2008 according to maturity
2007 2008 Assets Liabilities
Notional
amount Fair value
Notional
amount
Fair value
of assets
Fair value
of liabilities
Total fair
value
Less
than
1year
Up
to 2
years
Up
to 3
years
Up
to 4
years
Up
to 5
years
More
than 5
years
Less
than
1year
Up
to 2
years
Up
to 3
years
Up
to 4
years
Up
to 5
years
More
than 5
years
Interest rate products
Interest rate swaps 1,209 – 24 1,197 46 – 54 – 8 00033 013 00000– 54
of which cash fl ow hedges 367 – 13 354 12 – 54 – 42 0000012 00000– 54
of which fair value hedges 842 – 11 843 34 034 0 0 0 33 01000000
of which held for trading 0 0 0 0 0 0000000000000
Other 0 0 0 0 0 0000000000000
1,209 – 24 1,197 46 – 54 – 8 0 0 0 33 013 00000– 54
Currency derivatives
Currency forwards 1,768 – 40 5,927 152 – 436 – 284 149 30000 – 417 – 8 – 7 – 3 – 1 0
of which cash fl ow hedges 1,063 – 41 961 77 – 50 27 74 30000– 31 – 8 – 7 – 3 – 1 0
of which net
investment hedges 0 0 0 0 0 0000000000000
of which held for trading 705 14,966 75 – 386 – 311 75 00000 – 386 00000
Currency options 460 – 11 460 19 – 8 11 19 00000– 8 00000
of which cash fl ow hedges 460 – 11 460 19 – 8 11 19 00000– 8 00000
Currency swaps 1,977 94,604 306 – 123 183 306 00000 – 123 00000
of which cash fl ow hedges 311 1261 28 – 5 23 28 00000– 5 00000
of which held for trading 1,666 84,343 278 – 118 160 278 00000 – 118 00000
Cross-currency swaps 299 – 12 269 3– 31 – 28 00000300– 12 – 19 0 0
of which cash fl ow hedges 203 17 193 3– 12 – 9 00000300– 12 000
of which fair value hedges 95 – 29 76 0– 19 – 19 000000000– 19 0 0
of which held for trading 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4,505 – 54 11,260 480 – 598 – 118 474 30003 – 548 – 8 – 19 – 22 – 1 0
Derivatives
 e following table gives an overview of the derivatives used in the Group (excluding Deutsche Postbank Group) and their fair values.
Derivatives with amortising notional volumes are reported in the full amount at maturity.
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