Financial Statements 2021
2. Notes to the IFRS Consolidated Financial Statements / 2.7 Capital Structure and Financial Instruments
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.
– 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 following table presents the carrying amounts of the financial instruments held for the three levels of the fair value hierarchy as of 31 December 2021 and 2020, respectively:
2021
2020
Level 1 Level 2 Level 3 Total
Level 1 Level 2 Level 3 Total
(In € million)
Financial assets measured at fair value Equity Investments
1,808
0
703 2,511 1,780
0
465 2,245
0 1,005
0 1,005
0 4,424
0 4,424
Derivative instruments
8,111
0
0
8,111 6,968
0
0 6,968
Securities
Customer financing
0
0
118
118
0
0
237
237
12,075
533
0 12,608 9,654
512
0 10,166
Cash equivalents
Total
21,994 1,538
821 24,353 18,402 4,936
702 24,040
Financial liabilities measured at fair value Derivative instruments
0 (4,485)
(78)
(4,563)
0 (2,805)
(12)
(2,817)
0
0
(16)
(16)
0
0
0
0
Other financial liabilities
Total
0 (4,485)
(94)
(4,579)
0 (2,805)
(12)
(2,817)
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 2020
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
Release
0
0
0
0
0
0
0
Balance at 31 December 2020
0
465
237
702
0
(12)
(12)
Business combination
0
0
0
0
0
0
0
Profit or loss
0
0
(119)
(119)
0
(95)
(95)
Equity
0
238
0
238
(16)
0
(16)
Settlements
0
0
0
0
0
29
29
Others
0
0
0
0
0
0
0
Balance at 31 December 2021
0
703
118
821
(16)
(78)
(94)
As at 31 December 2020, the fair value of the written put options on non-controlling interests (“NCI puts”) relating to ACLP was nil, mainly reflecting the latest projections on funding needs, slower ramp-up phasing and market projections.
The Company has re-measured the written put options as at 31 December 2021 and the fair value amounts to €16 million. 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 9.58% is used to discount the forecasted cash flows, taking into account the specificities of the programme (2020: 9.49%).
70
Airbus / Financial Statements 2021
Made with FlippingBook - Online catalogs