NATS-Annual-Report-2015

Annual Report and Accounts 2015 | NATS Holdings Limited
Financial Statements 130
Notes forming part of the
consolidated accounts
(continued)
19. Financial instruments (continued)
The following table sets out the maturity profile of the group’s derivative financial liabilities. Cash flows under the index-linked swap are
not fixed and are subject to movements in inflation. Accordingly, the cash flows associated with the index-linked swap have been derived
from the group’s long term forecasts of inflation as used for business planning purposes. The table shows undiscounted net cash inflows/
(outflows) on these derivatives.
Due within
one year
or less
Due
between
one and
two years
Due
between
two and
five years
Due in
more than
five years
Total
£m £m £m £m £m
2015
Net settled:
Index-linked swap receivable/(payable) 1.8 (2.4) (30.5) (125.6) (156.7)
Gross settled:
Foreign exchange forward contract receivables 191.6 12.3 2.5 - 206.4
Foreign exchange forward contract payables (190.8) (13.9) (2.9) - (207.6)
2.6 (4.0) (30.9) (125.6) (157.9)
2014
Net settled:
Index-linked swap receivable/(payable) 2.0 1.7 (22.7) (142.6) (161.6)
Gross settled:
Foreign exchange forward contract receivables 153.9 - - - 153.9
Foreign exchange forward contract payables (153.7) - - - (153.7)
2.2 1.7 (22.7) (142.6) (161.4)
Fair value measurements
The information set out below provides information about how the group determines fair values of various financial assets and
financial liabilities.
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped
into Levels 1 to 3 based on the degree to which the fair value is observable.
- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not
based on observable market data (unobservable inputs).
Financial
Statements