AIRBUS - 2019 Financial Statements

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

37.5 Derivative Financial Instruments and Hedge Accounting Disclosure The following table presents the reconciliation of AOCI , net of tax, resulting from cash flow hedge accounting as of 31 December 2019 and 31 December 2018:

31 December

2019

2018

Hedge reserve

(In € million)

Opening balance

1,473

(776)

Foreign exchange contracts

3,527

3,825

Others

7

7

3,534

3,832

Changes in fair values

(1,894)

(799)

Foreign exchange contracts

(2)

(1)

Others

(1,896)

(800)

Amount reclassified to profit or loss (matured hedges)

(207)

(4)

Foreign exchange contracts

0

0

Others

(207)

(4)

Amount classified to profit or loss (inefficiency)

(383)

(779)

Tax impact

Closing balance

2,521

1,473

The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness for cash-flow hedges as of 31 December 2019:

Carrying values

OCI

Hedge inefficiency recorded in financial result (1)

Amounts reclassified from hedge reserve to profit and loss

Changes in values of the hedging instrument

Other changes in value of the hedge reserve

Asset

Liability

(In € million)

Foreign currency risk Net forward sales contracts

848 (3,787)

699

2,824

(208)

(1,895)

Foreign exchange options

19

(58)

(1)

2

0

1

Embedded Derivatives

0

(18)

14

0

0

0

Interest rate risk

0

(3)

0

0

0

0

Commodity swap risk

9

(10)

(4)

0

0

(2)

Equity swap risk

20

0

0

0

0

0

Total

896 (3,876)

707

2,826

(208)

(1,896)

(1) It includes the financial expense of €112 million on hedge ineffectiveness (see “– Note 11: Revenue and Gross Margin”).

The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness for cash-flow hedges as of 31 December 2018:

Carrying values

OCI

Hedge inefficiency recorded in financial result

Amounts reclassified from hedge reserve to profit and loss

Changes in values of the hedging instrument

Other changes in value of the hedge reserve

Asset

Liability

(In € million)

Foreign currency risk Net forward sales contracts

868 (2,410)

2,749

807

(4)

(791)

Foreign exchange options

21

(28)

9

252

0

0

Embedded Derivatives

0

(16)

6

0

0

(9)

Interest rate risk

0

(3)

(5)

0

0

0

Commodity swap risk

10

(17)

4

0

0

(1)

Equity swap risk

19

(4)

9

0

0

0

Total

918 (2,478)

2,771

1,059

(4)

(801)

76

Airbus / Financial Statements 2019