registration document France Telecom 2009 - Orange.com

20 CONSOLIDATED
financial information concerning the issuer’s assets and liabilities, financial position and profits and losses
STATEMENTS
The market value of fi nancial liabilities is determined using:
■ quoted price, for listed bonds;
■ the present value of estimated future cash fl ows, discounted
using rates available to France Telecom at the end of the
period, for unlisted instruments. The results calculated using
the internal valuation model are systematically benchmarked
with the values provided by the banks.
Financial liabilities at fair value through profit
or loss
The market value of the ECMS public tender offer is the
offering price applied to the number of shares held by the
indirect minority shareholders of ECMS, with the debt being
proportionately consolidated at 71.25%.
The market value of other fi rm or contingent commitments to
purchase non-controlling interest is measured in accordance
with the clauses of the contracts.
Derivative instruments
The market value of derivative instruments is determined using
the present value of estimated future cash fl ows, discounted
using interest rates available to France Telecom at the end of
the period. The results calculated using the internal valuation
model are systematically benchmarked with the values provided
by the banks.
The market value of the Amena price guarantee was based on
a valuation model for call options, using the following variables:
market value and volatility of the underlying element, maturity of
the option and a risk-free interest rate.
The market value of fi nancial assets and liabilities measured at
fair value in the statement of fi nancial position shown in the table
below has been ranked based on the three hierarchy levels
defi ned by IFRS 7:
■ Level 1: quoted price in active markets;
■ Level 2: inputs observable directly or indirectly;
■ Level 3: inputs not based on observable market data.
(in millions of euros)
Note
Book value
December 31, 2009
Estimated
fair value Level 1 Level 2 Level 3
Assets available for sale 16 221 221 107 - 114
Listed investment securities 46 46 46 - -
Unlisted investment securities 87 87 - - 87
Other 88 88 61 - 27
Loans and receivables 18 10,175 10,175
Trade receivables 5,494 5,494
Cash 1,038 1,038
Deposits and various items 1,806 1,806
Other 1,837 1,837
Assets at fair value through profit or loss,
excluding derivatives 19 2,918 2,918 2,114 804 -
Mutual funds (OPCVM) 2,112 2,112 2,112 - -
Other investments 806 806 2 804 -
Financial liabilities at amortized cost 22 45,443 48,351
Financial liabilities 37,021 39,916
Trade payables 8,241 8,254
Other 181 181
Financial liabilities at fair value through
profit or loss, excluding derivatives 22 1,105 1,105 1,082 - 23
ECMS public tender offer 1,082 1,082 1,082 - -
Other commitments to purchase
non-controlling interest 23 23 - - 23
Net derivatives 23 877 877 - 877 -
Amena price guarantee - - - - -
Other derivatives 877 877 - 877 -
The market value of the external net fi nancial debt carried by France Telecom was 36,837 million euros at December 31, 2009, for a
carrying amount of 33,941 million euros.
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM