Financial report  >  Consolidated financial statements Geberit Group

Notes to the Consolidated Financial Statements

  1. 1. Basis of preparation

  2. 2. Changes in Group organization

  3. 3. Summary of significant accounting policies

  4. 4. Risk assessment and management

  5. 5. Management of capital

  6. 6. Marketable securities

  7. 7. Trade accounts receivable

  8. 8. Other current assets and current financial assets

  9. 9. Inventories

  10. 10. Property, plant and equipment

  11. 11. Other non-current assets and non-current financial assets

  12. 12. Goodwill and intangible assets

  13. 13. Short-term debt

  14. 14. Other current provisions and liabilities

  15. 15. Long-term debt

  16. 16. Derivative financial instruments

    Where required, the Group hedges foreign currency exchange rate and interest rate risks using derivative financial instruments according to the treasury policy. This policy and the corresponding accounting policies for the Group’s derivative financial instruments are disclosed in  Notes 3 and  4. As of December 31, 2012 and 2011, the following derivative financial instruments were outstanding:

    a) Cross Currency Interest Rate Hedges

    The following instruments were used to hedge foreign exchange rate risks, arising from the intercompany financing of subsidiaries:

    2012 Maturity Strike
    price
    Contract
    amount
    buy
    Contract
    amount
    sell (-)
    Fair value
    31.12.
    Interest
    rate %
    Interest
    rate %
    Calculation
    method
          MCHF MUSD MCHF CHF USD  
    CHF buy/ USD sell 18.12.2013 1.03345 25.8 -25.0 3.0 0.21 0.66 DCF1

    The cross currency interest rate swap (CHF buy/USD sell) for MUSD 25.0 was not designated as cash flow hedge according to IAS 39.86 et seq. The change in fair value of the instrument is recognized directly in the financial result, net.

    The cross currency interest rate swap (USD buy/EUR sell) for MUSD 55.0 that was designated as cash flow hedge according to IAS 39.86 (b) and IAS 39.88 et seq. matured on December 19, 2012.

    2011 Maturity Strike
    price
    Contract
    amount
    buy
    Contract
    amount
    sell (-)
    Fair value
    31.12.
    Interest
    rate %
    Interest
    rate %
    Calculation
    method
          MUSD MEUR MCHF USD EUR  
    USD buy/ EUR sell 19.12.2012 1.004 55.0 -54.8 -16.4 5.54 5.9775 DCF1
          MCHF MUSD MCHF CHF USD  
    CHF buy/ USD sell 18.12.2013 1.03345 25.8 -25.0 2.7 0.21 0.66 DCF1
    1 Discounted Cash Flow

    The cross currency interest rate swap (USD buy/EUR sell) for MUSD 55.0 was designated a cash flow hedge according to IAS 39.86 (b) and IAS 39.88 et seq.

    The cross currency interest rate swap (CHF buy/USD sell) for MUSD 25.0 was not designated as cash flow hedge according to IAS 39.86 et seq. The change in fair value of the instrument is recognized directly in financial result, net.

    b) Forward foreign exchange contracts and foreign exchange options

      Contract
    values
    Fair value
    31.12.
      Calculation
    method
    2012 MCZK MEUR MNOK MGBP MPLN MSEK MCHF    
    Foreign exchange contracts -10.0 -10.0 -2.2 -0.5 -3.7 -2.2 0.1   Mark-to-Market
    Foreign exchange options   -10.0         0.0   Black-Scholes
                       
             
    2011   MNOK MGBP MPLN MSEK MAUD MCHF    
    Foreign exchange contracts   -1.0 -0.8 -4.0 -3.5 -0.4 0.0   Mark-to-Market

    The change in fair value of the instruments is booked in financial result, net.

  17. 17. Retirement benefit plans

  18. 18. Participation plans

  19. 19. Deferred tax assets and liabilities

  20. 20. Other non-current provisions and liabilities

  21. 21. Contingencies

  22. 22. Capital stock and treasury shares

  23. 23. Earnings per share

  24. 24. Cash discounts and customer bonuses

  25. 25. Other operating expenses, net

  26. 26. Financial result, net

  27. 27. Income tax expenses

  28. 28. Cashflow figures

  29. 29. Segment reporting

  30. 30. Related party transactions

  31. 31. Foreign exchange rates

  32. 32. Subsequent events

  33. 33. Additional disclosures on financial instruments

  34. 34. Group companies as of December 31, 2012