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100
Hamon Annual Report 2012
36. DERIVATIVE INSTRUMENTS
Derivative financial instruments designated as «cash flow hedge»
notional or Contractual amount
Fair Value
In EUR ‘000’ 31/12/12 31/12/11 31/12/10 31/12/12 31/12/11 31/12/10
Cash flow hedge
Forward currency contracts sales Assets 3 107 4 341 31 59
Liabilities 7 497 748 (368) (11 )
Forward currency contracts purchases
Assets
Liabilities
Interests rate swaps 31 424 (1 177 )
Net investment hedge
Cross currency swaps 11 424 (87)
Total fair value (1 233 ) (368) 48
Fair value recognized in the hedging
reserve in Equity (1 264 ) (16)
The part of profit or loss on the hedging instrument
that qualifies as an effective cash flow hedge or a net
investment hedge is booked directly in equity, respectively
under the hedging reserves or under the currency
translation reserves. The gain or loss relating to the
ineffective portion is recognized in the income statement.
As of 31 December 2012, the fair values of forward
currency contracts designated as ‘cash flow hedge’ had
positive fair values amounting to EUR 31 thousand.
Those were hedges against the Korean Won (KRW) for
collections of USD 4.100 thousand (equivalent to EUR
3.107 thousand).
During the first half of 2012, the Hamon Group concluded
several hedging contracts with a maturity of 5 years,
interest rate swaps (IRS) in Euro and Cross Currency IRS
(CCIRS) “fixed USD against floating EUR”.
These last ones can be considered as synthetic transactions
composed of a IRS in paying Euro on a fixed
leg and a “f ixed against fixed ” CCIRS – paying on the
USD leg and receiving on the EUR leg.
IRS (including those considered as components of synthetic
transactions) pay on the fixed legs a rate of 1,335 % and
receive the 3-month EURIBOR. They are considered as
effective hedges against fluctuations in interest rates
of existing bank debts. The “ fixed against fixed ” CCIRS
cover a portion of our net investment in the USA.
As of 31 December 2012, IRS (including those considered
as components of synthetic transactions) of a notional
amount of EUR 31.424 thousand and CCIRS of a total
notional amount of EUR 11.424 thousand qualified
respectively as cash flow hedge and net investment
hedge and had negative fair values of respectively EUR
1.177 thousand and EUR 87 thousand.
Derivative financial instruments designated as «held for trading»
notional or Contractual amount
Fair Value
in EUR ‘000’ 31/12/12 31/12/11 31/12/10 31/12/12 31/12/11 31/12/10
Forward currency contracts sales Assets 2 461 287
Liabilities 40 024 17 150 (139) (296)
Forward currency contracts purchases Assets 594 2 171 27
Liabilities 19 764 778 (69) (6) (59)
under “Unrealized exchange gains” - 27 287
under “Unrealized exchange losses” (207) (303) (59)
Fair value recognized in the income statement (207 ) (276 ) 228