BROADENING OUR HORIZONS - Arrium

Notes to the Financial StatementsCONSOLIDATEDLess than12 months$m1 — 5 years$mGreater than5 years$mTotalcontractualcash flows$m2010Financial assetsCash and cash equivalents 83.4 — — 83.4Trade and other receivables 829.3 — — 829.3Forward exchange contracts 366.5 — — 366.5Commodity contracts 0.6 — — 0.6Interest rate swaps 7.9 13.7 — 21.6Other financial assets — 2.5 — 2.51,287.7 16.2 — 1,303.9Financial liabilitiesTrade and other payables 863.1 — — 863.1Forward exchange contracts 364.9 — — 364.9Commodity contracts 1.5 — — 1.5Interest rate swaps 4.8 5.6 0.4 10.8Cross-currency interest rate swaps 5.7 72.6 — 78.3Bank loans 331.9 235.0 — 566.9US Private Placement — Senior Notes 28.3 489.4 553.6 1,071.3HRC Securitisation facility — 16.7 — 16.71,600.2 819.3 554.0 2,973.5Net contractual cash flows (312.5) (803.1) (554.0) (1,669.6)117(f) Fair value measurementsThe fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.The Group uses various methods in estimating the fair value of a financial instrument. These comprise:Level 1: The fair value is calculated using quoted prices in active markets.Level 2: The fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability,either directly (as prices) or indirectly (derived from prices).Level 3: The fair value is estimated using inputs for the asset or liability that are not based on observable market data.The fair value of the financial instruments as well as the methods used to estimate the fair value are summarised below:CONSOLIDATEDFinancial assetsValuation technique —market observable inputs(Level 2)$m2011 2010Total$mValuation technique —market observable inputs(Level 2)$mForward exchange contracts 31.8 31.8 5.0 5.0Interest rate swaps 12.8 12.8 16.8 16.844.6 44.6 21.8 21.8Financial liabilitiesForward exchange contracts 9.2 9.2 3.7 3.7Interest rate swaps 6.7 6.7 8.6 8.6Cross-currency interest rate swaps 87.6 87.6 42.8 42.8103.5 103.5 55.1 55.1For financial instruments not quoted in active markets, the Group uses valuation techniques such as present value techniques,comparison to similar instruments for which market observable prices exist and other relevant models used by market participants.These valuation techniques use both observable and unobservable market inputs.Financial instruments that use valuation techniques with only observable market inputs or unobservable inputs that are not significantto the overall valuation include interest rate swaps, cross-currency interest rate swaps and forward exchange contracts not traded on arecognised exchange. These instruments are included in Level 2.Total$m