AIRBUS - 2020 Financial Statement
2. Notes to the IFRS Consolidated Financial Statements / 2.7 Capital Structure and Financial Instruments
– Level 3: inputs for the asset or liability that are not based on observable market data – fair values measured based on Level 3 input rely to a significant extent on estimates derived from the Company’s own data and may require the use of assumptions that are inherently judgemental and involve various limitations.
The fair values disclosed for financial instruments accounted for at amortised cost reflect Level 2 input. Otherwise, the Company determines mostly fair values based on Level 1 and Level 2 inputs and to a lesser extent on Level 3 input.
The following table presents the carrying amounts of the financial instruments held for the three levels of the fair value hierarchy as of 31 December 2020 and 2019, respectively:
2020
2019
Level 1 Level 2 Level 3 Total
Level 1 Level 2 Level 3 Total
(In € million)
Financial assets measured at fair value Equity instruments
1,780
0
465 2,245 1,988
0
528 2,516
0 4,424
0 4,424
0 1,224
216 1,440
Derivative instruments
6,968
0
0 6,968 13,368
0
0 13,368
Securities
Customer financing
0
0
237
237
0
0
350
350
9,654
512
0 10,166 7,014
652
0 7,666
Cash equivalents
Total
18,402 4,936
702 24,040 22,370 1,876 1,094 25,340
Financial liabilities measured at fair value Derivative instruments
0 (2,805)
(12)
(2,817)
0 (3,974)
(20)
(3,994)
0
0
0
0
0
0 (1,014)
(1,014)
Other financial liabilities
Total
0 (2,805)
(12)
(2,817)
0 (3,974)
(1,034) (5,008)
The development of financial instruments of Level 3 is as follows:
Written put options on NCI interests
Commodity swap agreements Total
Customer financing Total
Derivatives Participations
(In € million)
Balance at 1 January 2019
165
489
510 1,164
(2,300)
(26)
(2,326)
Business combination
0
0
0
0
0
0
0
Profit or loss
51
0
(160)
(109)
0
(12)
(12)
Equity
0
39
0
39
1,286
0 1,286
Settlements
0
0
0
0
0
18
18
Release
0
0
0
0
0
0
0
Balance at 31 December 2019
216
528
350 1,094
(1,014)
(20)
(1,034)
Business combination
0
0
0
0
0
0
0
Profit or loss
(216)
0
(113)
(329)
0
6
6
Equity
0
(63)
0
(63)
1,014
0 1,014
Settlements
0
0
0
0
0
2
2
Others
0
0
0
0
0
0
0
Balance at 31 December 2020
0
465
237
702
0
(12)
(12)
As at 31 December 2020, the fair value of the written put options on non-controlling interests (“NCI puts”) relating to ACLP is nil, mainly reflecting the latest projections on funding needs, slower ramp-up phasing and market projections. The fair value of these NCI puts are derived from a discounted cash flow analysis using the latest operating plan and a projection over the lifetime of the A220 programme.
In addition, a post-tax WACC of 9.49% (2019: 7.5%) is used to discount the forecasted cash flows taking into account the impacts of the COVID-19 pandemic and the specificities of the programme.
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Airbus / Financial Statements 2020
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