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8 Financial instruments

Carrying amounts and fair values of financial instruments

The carrying amounts and the fair values of financial assets and financial liabilities with the corresponding valuation categories can be found in the following table. The table does not include cash and cash equivalents, trade receivables and payables as well as other receivables and payables whose carrying amount corresponds to an adequate estimate of the fair value. The fair value hierarchy comprises the following three levels:

  • Level 1: stock-exchange quoted prices in active markets for identical assets or liabilities;
  • Level 2: other factors which are observable on markets for assets and liabilities, either directly or indirectly;
  • Level 3: factors that are not based on observable market data.
  Carrying amount   Fair Value

In CHF million
 
Loans and
receivables
 
Available-
for-sale
  At fair
value through
profit or loss
 
Financial
liabilities
 

Level 1
 

Level 2
 

Level 3
                             
31 March 2016
Derivative financial instruments       52       52  
Other assets valued at fair value       59     59    
Available-for-sale financial assets     8           8
Financial assets measured at fair value     8   111     59   52   8
                             
Other loans and receivables   190           217  
Financial assets not measured at fair value   190           217  
                             
Derivative financial instruments       90       90  
Financial liabilities measured at fair value       90       90  
                             
Bank loans         1,045     1,083  
Debenture bonds         5,710   6,190    
Private placements         933     971  
Finance lease liabilities         527     1,103  
Other interest-bearing financial liabilities         46     46  
Other non-interest-bearing financial liabilities         270     270  
Financial liabilities not measured at fair value         8,531   6,190   3,473  

In addition, available-for-sale financial assets as at 31 March 2016 with a carrying amount of CHF 38 million are measured at acquisition cost. Level-3 financial instruments developed as follows in the first three months of 2016:

In CHF million   Available-for-sale financial assets
     
Balance at 31 December 2015   15
Disposals   (7)
Balance at 31 March 2016   8

Level-3 assets consist of investments in various investment funds. The fair value was calculated using a valuation model. In the first three months of 2016, there were no reclassifications between the various levels.