AIRBUS - 2020 Financial Statement

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

38.5 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 2020 and 31 December 2019:

31 December

2020

2019

Hedge reserve

(In € million)

Opening balance

2,521

1,473

Foreign exchange contracts

(3,161)

3,527

Others

(111)

7

(3,272)

3,534

Changes in fair values

(484)

(1,894)

Foreign exchange contracts

6

(2)

Others

(478)

(1,896)

Amount reclassified to profit or loss (matured hedges)

55

(207)

Foreign exchange contracts

(4)

0

Others

51

(207)

Amount classified to profit or loss (inefficiency)

916

(383)

Tax impact

Closing balance

(262)

2,521

The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness for cash-flow hedges as of 31 December 2020:

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

3,840 (2,530)

(6,087)

2,934

55

(483)

Foreign exchange options

11

(14)

1

(9)

0

(1)

Embedded Derivatives

5

0

(115)

0

0

0

Interest rate risk

0

(1)

(2)

0

0

0

Commodity swap risk

14

(27)

6

0

(4)

6

Equity swap risk

0

(16)

0

0

0

0

Total

3,870 (2,588)

(6,197)

2,925

51

(478)

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:

Hedge inefficiency recorded in financial result (1)

Carrying values

OCI

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 12: Revenue and Gross Margin”).

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Airbus / Financial Statements 2020