DHL 2008 Annual Report Download - page 188

Deutsche Post World Net Annual Report 2008
Cash fl ow hedges
 e Group uses currency forwards and currency swaps to
hedge the future cash  ow risks from foreign currency revenue and
expenses.  e fair values of currency forwards and currency swaps
amounted to   million (previous year: –  million) as at the report-
ing date. In addition, there were currency options used to hedge
operating risks at the reporting date at a fair value of   million
(previous year:   million).  e underlyings will be recognised in
the income statement in .
Currency forwards with a fair value of –  million (pre-
vious year: –  million) as at the reporting date were entered into
to hedge the currency risk of future lease payments and annuities
denominated in foreign currencies.  e payments for the underlyings
are made in instalments, with the  nal payment due in .
Cash  ow risks arise from the contracted aircra purchases
in connection with future payments in  dollars.  ese risks were
hedged using forwards and options.  e fair value of cash  ow hedges
as at  December  amounted to –  million (previous year:
–  million) for currency options and   million (previous year:
Reconciliation of carrying amounts in the balance sheet as at 31 December 2008
€ m
Carrying amount Carrying amount measured in accordance with IAS 39
Financial assets and liabilities recognised
at fair value through profi t or loss Available-for-sale fi nancial assets
Trading Fair value option
Fair value Fair value Fair value Amortised cost
ASSETS
Non-current fi nancial assets 635 158
Other non-current assets 514 38
Receivables and other assets 8,715 353
Financial instruments 50 13
Cash and cash equivalents 1,350
Total assets 11,264 353 38 0171
EQUITY AND LIABILITIES
Non-current fi nancial liabilities 1) – 3,318
Other non-current liabilities – 367
Current fi nancial liabilities – 779
Trade payables – 4,980
Other current liabilities – 4,745 – 504
Total equity and liabilities – 14,189 – 504 0 0 0
1) Some of the bonds included in fi nancial liabilities were designated as a hedged item in a fair value hedge and are thus subject to a basis adjustment.
Accounting is therefore neither fully at fair value nor at amortised cost.
–  million) for currency forwards.  e aircra will be added in 
and . Gains or losses on hedges are o set against cost and rec-
ognised in pro t or loss upon the amortisation of the asset.
Risks arising from  xed-interest foreign currency invest-
ments were hedged using synthetic cross-currency swaps, with the
investments being transformed into  xed-interest euro investments.
 ese synthetic cross-currency swaps hedge the currency risk, and
their fair values at the balance sheet date amounted to   million
(previous year:   million).  e investments relate to internal Group
loans which mature in .
 e Group is exposed to cash  ow risks arising from variable
interest rate liabilities.  ese risks were hedged using an interest rate
swap which o sets the interest rate risk in the underlying.  e fair
value of the respective cash  ow hedge amounted to –  million
as at  December  (previous year: –  million).  e hedged
liability becomes due in . In addition, a  xed-interest currency
liability was transformed into a  xed-interest euro-denominated
liability using a cross-currency swap.  e fair value of the deriva-
tive was –  million (previous year: –  million).
51.3 Additional disclosures on the fi nancial instruments used in the Group
 e Group classi es  nancial instruments in relation to the respective balance sheet items.  e following table reconciles the balance
sheet items to the categories given in   and the respective fair values:
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