Daimler Annual Report 2011 - Alle jaarverslagen

7 | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
Total interest income and total interest expense
Total interest income and total interest expense for financial
assets or financial liabilities that are not measured at fair
value through profit or loss are presented in table 7.73.
Please refer to Note 1 for qualitative descriptions of
accounting for financial instruments (including derivative
financial instruments).
Information on derivative financial instruments
Use of derivatives. The Group uses derivative financial
instruments primarily for the purpose of hedging interest rate
and currency risks that arise from its operating and financing
activities. To an increasing extent the Group uses derivatives
also to hedge raw material price risk. For these hedging
purposes the Group mainly uses currency forward transactions,
cross currency interest rate swaps, interest rate swaps,
options and commodity forwards.
Fair values of hedging instruments. Table 7.74 shows
the fair values of hedging instruments at the end of the reporting
period.
Fair value hedges. The Group uses fair value hedges
primarily for hedging interest rate risks.
Net gains and losses from these hedging instruments
and the changes in the value of the underlying transactions
are presented in table 7.75.
Cash flow hedges. The Group uses cash flow hedges for
hedging currency risks, interest rate risks and commodity price
risks.
Unrealized pre-tax gains and losses on the measurement
of derivatives, which are recognized during the period
in other comprehensive income, are shown in table 7.76.
Table 7.77 gives an overview of the reclassifications
of pre-tax gains/losses from equity to the statement of income
for the period.
The unrealized pre-tax gains and losses on the measurement
of derivatives as well as reclassifications of pre-tax gains
and losses from equity to the statement of income do not
include gains and losses from derivatives entered into
by our equity-method investments (see Note 20 for further
information).
7.73
Total interest income and total interest expense
In millions of euros
2011 2010
Total interest income 2,969 2,881
Total interest expense -2,150 -2,322
7.74
Fair values of hedging instruments
In millions of euros
At December 31,
2011 2010
Fair value hedges 321 240
Cash flow hedges -1,047 -282
7.75
Net gains and losses from fair value hedges
In millions of euros
2011 2010
Net gains/losses from hedging instruments 317 -66
Net gains/losses from underlying transactions -398 67
7.76
Unrealized losses from cash flow hedges
In millions of euros
2011 2010
Unrealized losses 547 987
7.77
Reclassifications of pre-tax gains/losses from equity
to the statements of income
In millions of euros
2011 2010
Revenue 6 -265
Cost of sales 69 11
Interest income – –
Interest expense -14 -37
61 -291
233