Notes to the Consolidated Financial Statements
1. Basic information and principles of the report
2. Changes in Group structure
3. Summary of significant accounting policies
4. Risk assessment and management
5. Management of capital
6. Trade accounts receivable
7. Other current assets and current financial assets
8. Inventories
9. Property, plant and equipment
10. Other non-current assets and non-current financial assets
11. Goodwill and intangible assets
12. Short-term debt
13. Other current liabilities and provisions
14. Long-term debt
15. Financial instruments
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 at 31 December 2017 and 2016, the following derivative financial instruments were outstanding:
Forward foreign exchange contracts
| Contract values | Fair value 31.12. |
Calculation method | ||||||
|---|---|---|---|---|---|---|---|---|
| 2017 | MCZK | MEUR | MGBP | MPLN | MNOK | MCHF | ||
| Foreign exchange contracts | 0.0 | -200.0 | -0.3 | -48.5 | -5.0 | -0.9 | Mark-to-Market | |
| 2016 | MCZK | MEUR | MGBP | MPLN | MNOK | MCHF | ||
| Foreign exchange contracts | -5.0 | -55.0 | -1.0 | 0.0 | 0.0 | 0.2 | Mark-to-Market | |
The change in fair value of the instruments is booked in financial result, net.
Measurement of financial instruments by categories in accordance with IFRS 9
Based on the relevant balance sheet item of financial instruments, the following table shows an allocation of the balance sheet items to the classification by categories in accordance with IFRS 9. In addition, a fair value measurement hierarchy was introduced for assets and liabilities that are measured at fair value in accordance with IFRS 13. Level 1 contains all financial instruments with quoted prices in active markets. Level 2 contains all financial instruments with inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 3 contains all financial instruments with inputs for determining the assets and liabilities that are not based on observable market data.
| Carrying amount as at 31.12.2017 | Financial assets at amortised cost | Financial assets at fair value through profit and loss | Fair value measurement hierarchy | |
|---|---|---|---|---|
| MCHF | MCHF | MCHF | ||
| Financial assets | ||||
| Cash and cash equivalents | 412.7 | 412.7 | 0.0 | |
| Trade accounts receivable | 201.7 | 201.7 | 0.0 | |
| Other current assets (see Note 7) | 122.1 | 122.1 | 0.0 | |
| Other non-current assets | 11.1 | 10.9 | 0.2 | Level 2 |
| Derivative financial instruments (see Note 7) | 0.2 | 0.0 | 0.2 | Level 2 |
| Total | 747.8 | 747.4 | 0.4 |
| Carrying amount as at 31.12.2017 | Financial liabilities at amortised cost | Financial liabilities at fair value through profit and loss | Fair value measurement hierarchy | |
|---|---|---|---|---|
| MCHF | MCHF | MCHF | ||
| Financial liabilities | ||||
| Short-term debt | 4.5 | 4.5 | 0.0 | |
| Trade accounts payable | 126.1 | 126.1 | 0.0 | |
| Bonds | 878.8 | 878.8 | 0.0 | |
| Syndicated bank loan | 0.0 | 0.0 | 0.0 | |
| Other financial liabilities | 11.9 | 11.9 | 0.0 | |
| Derivative financial instruments | 1.1 | 0.0 | 1.1 | Level 2 |
| Total | 1,022.4 | 1,021.3 | 1.1 |
| Carrying amount as at 31.12.2016 | Financial assets at amortised cost1 | Financial assets at fair value through profit and loss | Fair value measurement hierarchy | |
|---|---|---|---|---|
| MCHF | MCHF | MCHF | ||
| Financial assets | ||||
| Cash and cash equivalents | 509.7 | 509.7 | 0.0 | |
| Trade accounts receivable | 174.4 | 174.4 | 0.0 | |
| Other current assets (see Note 7) | 110.7 | 110.7 | 0.0 | |
| Other non-current assets | 5.4 | 5.2 | 0.2 | Level 2 |
| Derivative financial instruments (see Note 7) | 0.3 | 0.0 | 0.3 | Level 2 |
| Total | 800.5 | 800.0 | 0.5 | |
1 Under IAS 39 “Loans and receivables” category. No change in measurement basis under IFRS 9 (amortised cost). |
||||
| Carrying amount as at 31.12.2016 | Financial liabilities at amortised cost | Financial liabilities at fair value through profit and loss | Fair value measurement hierarchy | |
|---|---|---|---|---|
| MCHF | MCHF | MCHF | ||
| Financial liabilities | ||||
| Short-term debt | 4.2 | 4.2 | 0.0 | |
| Trade accounts payable | 112.3 | 112.3 | 0.0 | |
| Bonds | 829.5 | 829.5 | 0.0 | |
| Syndicated bank loan | 128.4 | 128.4 | 0.0 | |
| Other financial liabilities | 8.8 | 8.8 | 0.0 | |
| Derivative financial instruments | 0.1 | 0.0 | 0.1 | Level 2 |
| Total | 1,083.3 | 1,083.2 | 0.1 |
Fair value measurement hierarchy:
Level 1: quoted prices in active markets for identical assetsLevel 2: observable prices, either directly or indirectly
Level 3: input factors that are not based on observable market data
There is no change to Geberit’s classification or measurement of financial assets and financial liabilities as a result of the early adoption of IFRS 9. Only the descriptions of the categories were changed in accordance with IFRS 9.
Maturity analysis of financial instruments
The following table shows the carrying amount of all contractually defined future (not discounted) interest and amortisation payments of derivative and non-derivative financial instruments as at the balance sheet date:
| Carrying amount | Maturity | ||||||
|---|---|---|---|---|---|---|---|
| 31.12.2017 | 2018 | 2019 | 2020 | 2021 | 2022 and later | ||
| MCHF | MCHF | MCHF | MCHF | MCHF | MCHF | ||
| Short-term debt | 4.5 | 4.8 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Trade accounts payable | 126.1 | 126.1 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Bonds | 878.8 | 4.5 | 154.5 | 4.5 | 588.8 | 150.9 | |
| Syndicated bank loan | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Other financial liabilities | 11.9 | 0.7 | 3.3 | 3.1 | 2.8 | 4.6 | |
| Total non-derivative financial liabilities | 1,021.3 | 136.1 | 157.8 | 7.6 | 591.6 | 155.5 | |
| Derivative financial assets/liabilities, net | 0.9 | 248.3 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Total derivative financial instruments | 0.9 | 248.3 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Total | 1,022.2 | 384.4 | 157.8 | 7.6 | 591.6 | 155.5 | |
| Carrying amount | Maturity | ||||||
|---|---|---|---|---|---|---|---|
| 31.12.2016 | 2017 | 2018 | 2019 | 2020 | 2021 and later | ||
| MCHF | MCHF | MCHF | MCHF | MCHF | MCHF | ||
| Short-term debt | 4.2 | 4.4 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Trade accounts payable | 112.3 | 112.3 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Bonds | 829.5 | 4.2 | 4.2 | 154.2 | 4.1 | 691.8 | |
| Syndicated bank loan | 128.4 | 1.0 | 129.8 | 0.0 | 0.0 | 0.0 | |
| Other financial liabilities | 8.8 | 0.5 | 2.7 | 2.3 | 2.1 | 3.1 | |
| Total non-derivative financial liabilities | 1,083.2 | 122.4 | 136.7 | 156.5 | 6.2 | 694.9 | |
| Derivative financial assets/liabilities, net | -0.2 | 60.5 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Total derivative financial instruments | -0.2 | 60.5 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Total | 1,083.0 | 182.9 | 136.7 | 156.5 | 6.2 | 694.9 | |
Additional information to the cashflow statement
The following table shows the reconciliation of the items for which cashflows were or in future will be generated and that are reported as net cash from financing activities in the consolidated statements of cashflows:
| 2017 | Noncash movements | 2016 | ||||
|---|---|---|---|---|---|---|
| Total | Cashflows | Changes in scope of consolidation | Translation differences | Others | Total | |
| MCHF | MCHF | MCHF | MCHF | MCHF | MCHF | |
| Long-term debt | 890.7 | -137.0 | 0.0 | 52.3 | 8.7 | 966.7 |
| Short-term debt | 4.5 | -0.3 | 0.0 | 0.3 | 0.3 | 4.2 |
| Interest liabilities | 3.8 | -6.4 | 0.0 | 0.3 | 6.4 | 3.5 |
| Total | 899.0 | -143.7 | 0.0 | 52.9 | 15.4 | 974.4 |
“Others” mainly contains the transfer of pension liabilities to long-term debt as well as interest and financing costs booked according to the effective interest rate method to “financial result, net”.