2007 Reference document (PDF) - Valeo

5.2.2. Fair value of derivatives
At December 31
Consolidated fi nancial statements at December 31, 2007
Notes to consolidated financial statements
(In millions of euros) 2007 2006 2005
ASSETS
Hedging derivatives:
▪ c ommodity derivatives
1 7 22
Trading derivatives:
▪ c urrency derivatives
3 2 1
Other - 1 1
Total other current financial assets
LIABILITIES
Hedging derivatives:
4 10 24
▪ i nterest rate derivatives
(6) (9) (5)
▪ c ommodity derivatives
(13) (1) -
Trading derivatives:
▪ c urrency derivatives
(2) (1) (3)
Other - - (1)
Total other current financial liabilities (21) (11) (9)
The impact of financial instruments on income for the years ended December 31, 2007, 2006 and 2005 is set out in note 3.5.
■ Fair value of f oreign currency derivatives
At December 31
(In millions of euros)
< Contents >
2007 2006 2005
Nominal Fair value Nominal Fair value Nominal Fair value
Forward foreign currency purchases 2 - 24 - 28 1
Forward foreign currency sales (76) 2 (48) 1 (10) -
Currency swaps (132) 1 (120) 1 (15) -
Total assets (206) 3 (144) 2 3 1
Forward foreign currency purchases 29 - 33 (1) 19 -
Forward foreign currency sales (14) (1) (30) - (104) (2)
Currency swaps (3) (1) (22) - (18) (1)
Total liabilities 12 (2) (19) (1) (103) (3)
Net impact 1 1 (2)
The fair value of foreign currency hedges is computed using the following valuation method: future cash flows are calculated using forward
exchange rates at year-end and are discounted using the interest rate of the functional currency.
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