9 Financial instruments
Fair value of financial instruments
The carrying amounts and fair values of financial assets and financial liabilities with their corresponding valuation categories are summarised in the following table. Not reflected therein are cash and cash equivalents, trade receivables and payables as well as miscellaneous receivables and payables whose carrying amount corresponds to a reasonable estimation of their 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 2017 | ||||||||||||||
| Derivative financial instruments | – | – | 80 | – | – | 80 | – | |||||||
| Other assets valued at fair value | – | – | 60 | – | 60 | – | – | |||||||
| Available-for-sale financial assets | – | 15 | – | – | – | – | 15 | |||||||
| Financial assets measured at fair value | – | 15 | 140 | – | 60 | 80 | 15 | |||||||
| Other loans and receivables | 183 | – | – | – | – | 203 | – | |||||||
| Financial assets not measured at fair value | 183 | – | – | – | – | 203 | – | |||||||
| Derivative financial instruments | – | – | 58 | – | – | 58 | – | |||||||
| Financial liabilities measured at fair value | – | – | 58 | – | – | 58 | – | |||||||
| Bank loans | – | – | – | 796 | – | 825 | – | |||||||
| Debenture bonds | – | – | – | 5,945 | 6,222 | – | – | |||||||
| Private placements | – | – | – | 744 | – | 751 | – | |||||||
| Finance lease liabilities | – | – | – | 508 | – | 1,006 | – | |||||||
| Other interest-bearing financial liabilities | – | – | – | 94 | – | 94 | – | |||||||
| Other non-interest-bearing financial liabilities | – | – | – | 274 | – | 274 | – | |||||||
| Financial liabilities not measured at fair value | – | – | – | 8,361 | 6,222 | 2,950 | – | |||||||
In addition, as of 30 September 2017, there were available-for-sale financial assets with a carrying amount of CHF 47 million which are valued at acquisition cost.
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 2017, there were no changes to the carrying amount and no reclassifications between the various levels.