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.