ONE ROOF

Notes to the Consolidated Financial Statements
174 Annual Report 2009
The following table shows the fair values of currency deriva-
tives:
(EUR thousand) Dec. 31,
2009
Dec. 31,
2008
Assets
Forward exchange contracts/
currency swaps
for hedging purposes
(cash flow hedges)
for hedging purposes
768 5,514
(but not hedge accounted) 645 2,685
1,413 8,199
Liabilities and shareholders’
equity
Forward exchange contracts/
currency swaps
for hedging purposes
(cash flow hedges)
for hedging purposes
11,669 17,042
(but not hedge accounted) 3,978 2,448
15,647 19,490
The maximum residual term of currency derivatives in cash
flow hedges as of December 31, 2009 is 30 months. As of
December 31, 2009, the maximum residual term of currency
derivatives for which hedge accounting is not applied is twelve
months.
Where hedge accounting is used, unrealized gains and losses
on hedges are initially recognized in other comprehensive income.
Gains and losses are not realized until a hedged item
affects income. Derivatives are measured on the basis of current
market rates as of the balance sheet date. When interpreting
positive or negative fair value changes relating to derivatives, it
is important to remember that they balance hedged items whose
values move in the opposite direction. A net EUR 3,001,000 was
credited to equity in fiscal 2009 (2008: EUR 13,091,000 charged
to equity) and EUR 2,374,000 due to hedge ineffectiveness
was charged to profit or loss (2008: EUR 5,159,000) for market
value changes on the above derivatives in cash flow hedges.
Where hedge accounting cannot be applied, all unrealized
gains and losses on the hedged item are recognized immediately
in profit or loss; in 2009 this related to net losses of EUR
3,570,000 (2008: net gain of EUR 237,000).
The following sensitivity analyses demonstrate the impact on
equity and on profit that would result from a ten percent fluctuation
in the foreign currencies most significant to the Group—
the Australian dollar and the US dollar. The analysis is based
on holdings as of the balance sheet date.
(EUR thousand) Dec. 31, 2009 Dec. 31, 2008
Ten percent
increase
Exchange rate Exchange rate
Ten percent
decrease
Ten percent
increase
Ten percent
decrease
Change in equity due to market value fluctuations
of currency derivatives used for hedging (cash flow
hedges)
USD – – 1,970 (1,970)
AUD
Change in profit due to unhedged currency exposures
in primary financial instruments and to market
value fluctuations in derivative financial instruments
(not hedge accounted)
3,130 (3,130) (5,842) 5,842
USD 3,514 (3,503) (2,100) 2,371
AUD 128 (128) 2,399 (2,404)