Electrolux 2013 Annual Report Download - page 127

Other interest-bearing investments
Interest-bearing receivables from customer financing amounting to
SEK76m (95) are included in the item Trade receivables in the consoli-
dated balance sheet. The Group’s customer-financing activities are per-
formed in order to provide sales support and are directed mainly to inde-
pendent retailers in Scandinavia. The majority of the financing is shorter
than 12 months. There is no major concentration of credit risk related to
customer financing. Collaterals and the right to repossess the inventory
also reduce the credit risk in the financing operations. The income from
customer financing is subject to interest-rate risk. This risk is immaterial
to the Group.
Commercial flows
The table below shows the forecasted transaction flows, imports and
exports, for the 12-month period of 2014 and hedges at year-end 2013.
The hedged amounts are dependent on the hedging policy for each
flow considering the existing risk exposure. Hedges with maturity above
12 months have a market value of SEK0m (0) at year-end. The effect of
hedging on operating income during 2013 amounted to SEK319m (–64).
At year-end 2013, the unrealized fair value of forward contracts for hed-
ing of forecasted transaction flows amounted to SEK21m (35).
Forecasted transaction flows and hedges
ARS AUD BRL CAD CHF CNY EUR GBP RUB USD Other Total
Inflow of currency, long position 900 2,480 4,290 1,360 1,820 60 4,570 2,690 1,240 4,210 22,170 45,790
Outflow of currency, short position —–150 –50 —–50 –2,610 –9,620 –430 —–13,110 –19,770 –45,790
Gross transaction flow 900 2,330 4,240 1,360 1,770 –2,550 –5,050 2,260 1,240 –8,900 2,400 —
Hedges –70 –1, 230 –980 –700 –880 1,910 1,780 –1,110 –330 1,960 –350 —
Net transaction flow 830 1,10 0 3,260 660 890 –640 –3,270 1,150 910 –6,940 2,050 —
Net gain/loss, fair value and carrying amount on financial instruments
The tables below present net gain/loss on financial instruments, the effect in the income statement and equity, and the fair value and carrying amount
of financial assets and liabilities. Net gain/loss can include both exchange-rate differences and gain/loss due to changes in interest-rate levels.
Net gain/loss, income and expense on financial instruments
2012 2013
Gain/loss
in profit
and loss
Gain/loss
in OCI Income Expense
Gain/loss
in profit
and loss
Gain/loss
in OCI Income Expense
Recognized in the operating income
Financial assets and liabilities at fair value
through profit and loss –53 ——— 319 ———
Derivatives for which hedge accounting is not
applied, i.e., held-for-trading 11 ——— ————
Currency derivatives related to commercial exposure
where hedge accounting is applied, i.e., cash flow
hedges –64 ——— 319 — — —
Loans and receivables 222 –249
Trade receivables/payables 222 — — — –249 — — —
Available-for-sale financial assets 123 — — — –69 — —
Other shares and participations 123 — — — –69 — —
Total net gain/loss, income and expense 170 23 — — 70 –69 — —
Recognized in the financial items
Financial assets and liabilities at fair value
through profit and loss –49 34 820 –21 23 —–10
Derivatives for which hedge accounting is not
applied, i.e., held-for-trading –12 — — — –5 ———
Interest-related derivatives for which fair value hedge
accounting is applied, i.e., fair value hedges –25 — — 41 –15 — — 16
Interest-related derivatives for which cash flow hedge
accounting is applied, i.e., cash flow hedges —13 —–21 —29 —–26
Currency derivatives related to commercial exposure
where hedge accounting is applied, i.e., cash flow
hedges –6 21 — — –1 –6 — —
Net investment hedges where hedge accounting is
applied — — — — — — — —
Other financial assets carried at fair value –6 — 8 — — — — —
Loans and receivables –254 —174 —–257 —136 —
Other financial liabilities 139 — — –710 –7 — — –541
Financial liabilities for which hedge accounting is not
applied 115 — — –516 22 — — –503
Financial liabilities for which hedge accounting is
applied 24 — — –194 –29 — — –38
Total net gain/loss, income and expense –164 34 182 –690 –285 23 136 –551
125ANNUAL REPORT 2013