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9 Financial instruments

Fair value 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, accounts receivable and payable or other receivables and liabilities whose carrying amount corresponds to an adequate estimate of the fair value. The fair value hierarchy encompasses 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
               
30 September 2016
Derivative financial instruments       65       65  
Other assets valued at fair value       60     60    
Available-for-sale financial assets     15           15
Financial assets measured at fair value     15   125     60   65   15
                             
Other loans and receivables   196           230  
Financial assets not measured at fair value   196           230  
                             
Derivative financial instruments       92       92  
Financial liabilities measured at fair value       92       92  
                             
Bank loans         777     819  
Debenture bonds         5,971   6,444    
Private placements         1,113     975  
Finance lease liabilities         513     1,158  
Other interest-bearing financial liabilities         66     66  
Other non-interest-bearing financial liabilities         266     266  
Financial liabilities not measured at fair value         8,706   6,444   3,284  

In addition, available-for-sale financial assets as of 30 September 2016 with a carrying amount of CHF 38 million are measured at acquisition cost. Level-3 financial instruments developed as follows in the first nine months of 2016:

In CHF million   Available-for-sale financial assets
     
Balance at 31 December 2015   15
Additions   3
Disposals   (3)
Balance at 30 September 2016   15

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