Notes to the consolidated financial statements - Swisscom

Net fair values of derivative financial instruments
CHF in millions
Contracts with positive fair values
Designated as fair value hedges
Designated as cash flow hedges
Non qualifying derivative financial instruments
Total. See Note 19.
Contracts with negative fair values
Designated as fair value hedges
Designated as cash flow hedges
Total. See Note 27.
Included in the derivative financial instruments are primarily cross-currency interest rate
swaps, interest rate swaps and foreign exchange forwards to hedge interest rate risk and
foreign exchange risk with respect to USD relating to the finance lease arrangements
entered into in 1996 and 1997 and the cross-border lease arrangement entered into in
2000. The maximum length of time hedged is 7 years for the finance lease arrangements
entered into in 1996 and 1997 and 27 years for the arrangement entered into in 2000.
Also included are foreign exchange forwards with respect to EUR which are designated to
hedge the future transactions in connection with the purchase of mobile equipment
(UMTS). The purchasing contracts are in EUR. The forecasted transactions are expected to
occur in 2002, 2003 and 2004.
Fair value of financial instruments
The following table presents the carrying amounts and fair values of Swisscom’s financial
instruments outstanding at December 31, 2000 and 2001. The carrying amounts in the
table are included in the balance sheet under the indicated captions. The fair value of a
financial instrument is the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidated sale.
CHF in millions
Financial assets
Cash and cash equivalents
Current financial assets
Trade accounts receivable
Other current assets
Non-current financial assets *
Financial liabilities
Short-term debt
Trade accounts payable
Other current liabilities
Long-term debt *
Finance lease obligation *
Accrued liabilities and accrued pension cost
Other long-term liabilities
Carrying
amount 2000
2 265
117
2 603
981
2 225
2 685
1 540
1 792
3 302
480
2 669
169
Fair value
2000
2 265
117
2 603
981
2 451
2 685
1 540
1 792
3 481
480
2 669
169
Carrying
amount 2001
* The difference between carrying value and net fair value relates principally to interest rate movements.
51 Swisscom Consolidated financial statements
2000
–
–
–
–
–
–
3 788
3 316
2 525
493
1 895
1 757
1 237
1 783
2 413
1 330
1 818
333
2001
9
7
134
150
16
4
20
Fair value
2001
3 788
3 316
2 525
493
2 230
1 757
1 237
1 783
2 835
1 585
1 818
333