AIRBUS - 2019 Financial Statements

2.7 Capital Structure and Financial Instruments Notes to the IFRS Consolidated Financial Statements /

The following table presents the carrying amounts and fair values of financial instruments by class and by IFRS 9 measurement category as of 31 December 2018:

Financial instruments total

Financial assets and liabilities at amortised cost

Fair value through profit or loss

Fair value through OCI

Amortised cost

Fair value

Book value

Fair value

(In € million)

Assets Other investments and other long-term financial assets Equity investments (1)

1,202

1,065

0

0

2,267

2,267

Customer financing

510

0

0

0

510

510

Other loans

0

0

1,523

1,523

1,523

1,523

Trade receivables

0

0

6,078

6,078

6,078

6,078

Contract assets

0

0

854

854

854

854

Other financial assets

1,317

1,317

Derivative instruments

1,317

0

0

0

Non-derivative instruments

0

0

1,602

1,602

1,602

1,602

Securities

0

12,794

0

0

12,794

12,794

Cash and cash equivalents

6,576

984

1,853

1,853

9,413

9,413

Total

9,605

14,843

11,910 11,910

36,358

36,358

Liabilities Financing liabilities Bonds and commercial papers Liabilities to financial institutions and others

(6,659)

(6,781)

0

0

(6,659)

(6,781)

0

0

(1,937)

(1,941)

(1,937)

(1,941)

Finance lease liabilities (2)

0

0

(330)

(330)

(330)

(330)

Other financial liabilities Derivative instruments

(2,755)

(2,755)

(2,755)

0

0

0

2

European Governments’ refundable advances (3)

0

0

(4,577)

(4,577)

(4,577)

(4,577)

Others

0

(2,300)

(839)

(839)

(3,139)

(3,139)

Trade liabilities

0

0

(16,237)

(16,237)

(16,237)

(16,237)

Total

(2,755)

(2,300)

(30,579)

(30,705)

(35,634)

(35,760)

(1) Other than those accounted for under the equity method. (2) Finance lease liabilities are accounted for in accordance with IAS 17 in a manner that is similar, though not identical in all respects, to amortised-cost accounting under IFRS 9. (3) The European Governments’ refundable advances of €-4,577 million are measured at amortised cost. Fair values cannot be reliably measured because their risk sharing nature and the uncertainty of the repayment dates give rise to a broad range of reasonable fair value estimates and make it impossible to reasonably assess the probabilities of the various estimates within the range. This may change and reliable fair value measures become available as the related programmes approach the end of production.

Fair Value Hierarchy Fair value of financial instruments — The fair value of quoted investments is based on current market prices. If the market for financial assets is not active, or in the case of unlisted financial instruments, the Company determines fair values by using generally accepted valuation techniques on the basis of market information available at the end of the reporting period. Derivative instruments are generally managed on the basis of the Company’s net exposure to the credit risk of each particular counterparty and fair value information is provided to the Company’s key management personnel on that basis. For these derivative instruments, the fair value is measured based on the price that would be received to sell a net long position, or

transfer a net short position, for a particular credit risk exposure as further described below. Depending on the extent the inputs used to measure fair values rely on observable market data, fair value measurements may be hierarchised according to the following levels of input: – Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities; – Level 2: inputs other than quoted prices that are observable for the asset or liability – fair values measured based on Level 2 input typically rely on observable market data such as interest rates, foreign exchange rates, credit spreads or volatilities;

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Airbus / Financial Statements 2019