TUI AG
&euro million Fair Value Balance of Hedging
changes to hedging reserve
determine reserve of completed cash
inefficient active cash flow hedges
portions flow hedges
Interest rate 42.5 - 42.3 4.1
risk hedges
Currency risk - 229.4 228.3 1.3
hedges
Fuel price risk 79.6 - 77.3 -
hedges
Hedging - 107.3 108.7 5.4
Other - - -
derivative
financial
instruments
Total - 107.3 108.7 5.4
In the case of fair value changes to determine inefficient portions, the signs of the amounts in the previous year's figures have been
adjusted.
In accounting for cash flow hedges, the effective portions of the hedging relationships have to be recognised in OCI outside profit and
loss. Any additional changes in the fair value of the designated components are recognised as ineffective portions in other operating
income through profit and loss. The table below presents the development of OCI in financial year 2020.
Development of OCI
30 Sep 2020
&euro million Interest Currency Fuel Total
rate risk price
risk risk
Gain or loss - 33.6 10.5 - - 196.3
from fair value 173.2
changes of
hedges within
hedge accounting
recognised in - 33.6 10.5 - - 196.3
equity 173.2
recognised in - - - -
the income
statement
Reclassification - 7.5 130.2 - - 251.1
from cash flow 373.8
hedge reserve
to income
statement
Due to early - 4.0 38.2 - - 200.2
termination of 234.4
the hedge
Due to - 3.5 92.0 - - 50.9
recognition of 139.4
the underlying
transaction
Development of OCI
30 Sep 2019
&euro million Interest Currency risk Fuel price Total
rate risk risk
Gain or loss from - 42.3 228.3 - 77.3 108.7
fair value changes
of hedges within
hedge accounting
recognised in - 42.3 228.3 - 77.3 108.7
equity
recognised in the - - - -
income statement
Reclassification 6.7 - 263.7 - 89.6 - 346.6
from cash flow
hedge reserve to
income statement
Due to early 0.3 - 20.4 - - 20.1
termination of the
hedge
Due to recognition 6.4 - 243.3 - 89.6 - 326.5
of the underlying
transaction
In the reporting period, expense of &euro 47.4 m (previous year: expense of &euro 340.2 m) from currency hedges and derivative financial
instruments used to hedge the impact of exposure to fuel price risks was recognised in the cost of sales. Interest rate hedges result in
expenses of &euro 3.5 m (previous year: income of &euro 6.4 m), carried in net interest income. Income of &euro 0.6 m (previous year:
income of &euro 1.4 m) was recognised for the ineffective portion of cash flow hedges.
Fair values of derivative financial instruments
The fair values of derivative financial instruments generally correspond to the market value. The market price determined for all
derivative financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. A description of the determination of the fair values of derivative
financial instruments is provided with the classification of financial instruments measured at fair value.
Positive and negative fair values of derivative
financial instruments
shown as receivables or liabilities
30 Sep 2020
&euro Receivables Liabilities FV Nominal
million change volume
s
to
determ
ine
ineff
ective
portio
ns
Cash
flow
hedges
for
currency 22.3 17.7 4.6 1,456.5
risks
fuel - 43.5 - 43.5 114.1
price
risks
interest - 0.1 - 0.1 7.8
rate
risks
Hedging 22.3 61.3 - 39.0 1,578.4
Other 74.0 257.5 - 5,772.5
derivati
ve
financia
l
instrume
nts
Total 96.3 318.8 - 39.0 7,350.9
Positive and negative fair values of derivative financial
instruments
shown as receivables or liabilities
30 Sep 2019
&euro Receivables Liabilities FV changes Nominal
million to volume
determine
ineffecti
ve
portions
Cash flow
hedges for
currency 278.2 49.9 228.3 9,544.2
risks
fuel price 6.2 83.5 - 77.3 1,255.6
risks
interest 1.9 44.2 - 42.3 908.0
rate risks
Hedging 286.3 177.6 108.7 11,707.8
Other 61.4 38.6 - 2,418.3
derivative
financial
instruments
Total 347.7 216.2 108.7 14,126.1
Financial instruments which are entered into in order to hedge a risk position according to operational criteria but do not meet the
criteria of IAS 39 to qualify for hedge accounting are shown as other derivative financial instruments. They include foreign currency
transactions entered into in order to hedge against foreign exchange-exposure to changes in the value of balance sheet items and foreign
exchange fluctuations from future expenses in tourism.
Financial instruments - Additional disclosures
Carrying amounts and fair values
Where financial instruments are listed in an active market, e. g. shares held and bonds issued, the fair value or market value is the
respective quotation in this market at the balance sheet date. For over-the-counter bonds, liabilities to banks, promissory notes and
other non-current financial liabilities, the fair value is determined as the present value of future cash flows, taking account of yield
curves and the respective credit spread, which depends on the credit rating.
In financial year 2020, the fair values of other current receivables, current liabilities to banks and other financial liabilities were
determined in contrast to the past financial year, taking into account yield curves and the respective credit risk premium (credit
spread) based on credit rating. As a result, the assumption that the carrying amount approximately corresponds to the fair value due to
the short remaining term which has been adjusted to the current market conditions due to the COVID-19-pandemic.
The fair values of non-current trade receivables and for parts of current other receivables and current other financial assets as well as
cash and cash equivalents, current other financial liabilities and trade payables correspond to the present values of the cash flows
associated with the assets, taking account of current interest parameters which reflect market and counterparty-related changes in terms
and expectations. In the case of cash and cash equivalents, current trade receivables, other financial assets and current trade payables,
the carrying amount approximates the fair value due to the short remaining term.
The table below shows the reconciliation of the balance sheet items to the financial instrument categories by carrying amount and fair
value of the financial instruments.
Carrying amounts and fair values according to classes and
measurement categories according to IFRS 9 as at 30 Sep
2020
Category according to IFRS 9
&euro Carrying At Fair Fair Fair Fair
million amount amortis value value value value of
ed cost with no with no through financial
instrume
effect effect profit nts
on on and loss
profit profit
and and
loss loss
without with
recyclin recycl
g ing
Assets
Trade
receivables
and other
receivables
thereof 875.2 875.2 - - - 847.1
instruments
within the
scope of
IFRS 9
thereof 13.5 - - - - 39.2
instruments
within the
scope of
IFRS 16
Derivative
financial
instrument
s
Hedging 22.3 - - 22.3 - 22.3
transaction
s
Other 74.0 - - - 74.0 74.0
derivative
financial
instruments
Other 25.5 14.9 8.5 - 2.1 25.5
financial
assets
Cash and 1,233.1 1,233.1 - - - 1,233.1
cash
equivalents
Liabilities
Financial 4,269.0 4,291.4 - - - 4,022.8
liabilities
Trade 1,611.5 1,611.5 - - - 1,611.5
payables
Derivative
financial (MORE TO FOLLOW) Dow Jones Newswires
December 10, 2020 01:04 ET (06:04 GMT)
