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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.