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EUR 52 thousand. The changes in the fair value of the derivatives arranged by the Group
depend on the changes in the EUR/USD exchange rate and on the euro interest rate curves.
At 31 December 2014, the Group had arranged instruments to hedge its foreign currency
asset and liability positions amounting to USD 230,233 thousand, at a weighted average
exchange rate of EUR 1.3279/USD 1. At 31 December 2013, the Group had arranged hedging
instruments amounting to USD 89,863 thousand, at a weighted average exchange rate of EUR
1.3117/USD 1.
At the end of 2014 and 2013, the total amounts of the outstanding forward currency purchase
contracts entered into by the Group were as follows (the maturity dates reflect the time when
the hedged items will be recognised and when the value of the hedging derivatives in equity
will be adjusted as an increase in/reduction of inventories):
Fair value
(thousands of euros)
2014
Classification
Type
Maturity
Amount
arranged
(thousands
of euros)
Ineffective
portion
recognised in
profit or loss
(thousands
of euros)
Assets
Liabilities
Currency forwards
Foreign currency
hedge
Purchase of
USD
2015
151,142
-
11,740
8
Currency forwards
Foreign currency
hedge
Purchase of
USD
2016
72,103
-
3,982
6
Currency forwards
Foreign currency
hedge
Purchase of
USD
2017
6,988
-
415
1
Fair value
(thousands of euros)
2013
Classification
Type
Maturity
Amount
arranged
(thousands
of euros)
Ineffective
portion
recognised in
profit or loss
(thousands
of euros)
Assets
Liabilities
Currency forwards
Foreign currency
hedge
Purchase of
USD
2014
62,520
-
698
3,025
Currency forwards
Foreign currency
hedge
Purchase of
USD
2015
7,313
-
-
189
Currency forwards
Foreign currency
hedge
Purchase of
USD
2016
8,053
-
-
18
At 31 December 2014, the estimated fair value of the Group's foreign currency derivatives,
which are designated and effective as cash flow hedges, represented a financial asset of EUR
16,137 thousand and a financial liability of EUR 15 thousand (2013: asset of EUR 698
thousand and liability of EUR 3,232 thousand). This amount was deferred and recognised in
equity, taking into account the tax effect.
The valuation method consists of estimating the present value of the future cash flows that will
arise under the terms and conditions arranged by the parties for the derivative instrument.
The spot price is taken to be the reference exchange rate of the European Central Bank on 31
December 2014, the swap points (offer/bid) and the interest rates prevailing at the valuation
date.