AIRBUS - 2019 Financial Statements

2.5 Operational Assets and Liabilities Notes to the IFRS Consolidated Financial Statements /

For other contingent liabilities, see “– Note 38: Litigation and Claims” and “– Note 11: Revenue and Gross Margin” (mainly A400M programme). Other commitments include contractual guarantees and performance bonds to certain customers as well as commitments for future capital expenditures and amounts which may be payable to commercial intermediaries if future sales materialise.

Contingent assets and contingent liabilities —The Company is exposed to technical and commercial contingent obligations due to the nature of its businesses. To mitigate this exposure, the Company has subscribed a Global Aviation Insurance Programme (“GAP”). Information required under IAS 37 “Provisions, Contingent Assets and Contingent Liabilities” is not disclosed if the Company concludes that disclosure can be expected to prejudice seriously its position in a dispute with other parties.

25. Other Financial Assets and Other Financial Liabilities

Other Financial Assets

31 December

2019

2018

(In € million)

Positive fair values of derivative financial instruments (1)

996

1,031

37

77

Others

1,033

1,108

Total non-current other financial assets

1,148

1,082

Receivables from related companies

444

286

Positive fair values of derivative financial instruments (1)

468

443

Others

Total current other financial assets

2,060

1,811

Total

3,093

2,919

(1) See “– Note 37: Information about Financial Instruments”.

Other Financial Liabilities

2

31 December

2019

2018

(In € million)

Liabilities for derivative financial instruments (1)

2,434

1,132

3,725

4,233

European Governments’ refundable advances (2)

1,339

2,644

Others

7,498

8,009

Total non-current other financial liabilities

Liabilities for derivative financial instruments (1)

1,560

1,623

552

344

European Governments’ refundable advances (2)

159

175

Liabilities to related companies

376

320

Others

Total current other financial liabilities

2,647

2,462

Total

10,145

10,471

thereof other financial liabilities due within 1 year

2,647

2,125

(1) See “– Note 37: Information about Financial Instruments”. (2) Refundable advances from European Governments are provided to the Company to finance research and development activities for certain projects on a risk-sharing basis, i.e. they are repaid to the European Governments subject to the success of the project.

The total net fair value of derivative financial instruments deteriorated by € -1,116 million to € -2,554 million (2018: € -1,438 million) as a result of the strengthening of the US dollar versus the euro associated with the mark to market valuation of the hedge portfolio.

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Airbus / Financial Statements 2019