Südzucker International Finance B. V. Südzucker AG ... - Xetra

Fair value is the amount that the Südzucker Group would have had to pay or would have received assuming thehedge transaction were realised at the end of the year. As the hedge transactions are only carried out using normalmarket tradable financial instruments, the fair values have been determined using quoted prices on exchangeswithout offsetting any possible value changes relating to the underlying transaction being hedged.Credit risks arise from the positive fair values of derivatives. These credit risks are minimised by only enteringinto financial derivative transactions with banks with first-class credit rankings.Changes in values of derivative transactions carried out to hedge future cash flows (cash flow hedges) are initiallyrecorded direct to a special reserve in shareholders’ equity and are only subsequently recorded in the incomestatement when the cash flow occurs. Their fair values at February 28, 2003 totalled a negative D 27.4 million.Changes in the fair values of interest rate derivatives originally used to hedge loans which have been repaid earlyare recorded direct to the statement of income.1.11 Contingent liabilities and other financial commitmentsFebruary 28 2003 2002D millionDiscounted bills 0.1 0.1Guarantees and letters of comfort 3.1 13.1Warranty commitments 1.6 2.5Total of lease payments up to 1 year 0.8 1.6Total of lease payments of 1 to 5 years 1.4 2.0Total of lease payments over 5 years 0.0 0.2Purchase order commitments for non-current assets 58.0 64.5F-27