114 / 140
32
At the end of 2015 and 2014, the total amount of outstanding forward currency contracts entered
into by the Company is as follows (the terms reflect the moment in which the hedged portion is
recognised and in which the value of the hedging instruments is adjusted in equity as an increase
in/reduction of inventories):
Fair value
(Thousands of euros)
Classification
Classification
Maturity
Amount
arranged
(Thousands
of euros)
Ineffectiveness
recognised in
profit or loss
(Thousands
of euros)
Assets
Liabilities
Foreign currency hedges Foreign currency
hedge
Purchase of USD
2016
126,210
-
13,112
145
Foreign currency hedges Foreign currency
hedge
Purchase of USD
2017
57,383
-
2,482
41
Foreign currency hedges Foreign currency
hedge
Purchase of USD
2018
20,465
-
267
107
Foreign currency hedges Foreign currency
hedge
Purchase of USD
2019
2,002
-
18
17
Foreign currency hedges Foreign currency
hedge
Purchase of USD
2020
398
-
3
-
The information in this connection at 31 December 2014 is as follows:
Fair value
(Thousands of euros)
Classification
Classification
Maturity
Amount
arranged
(Thousands
of euros)
Ineffectiveness
recognised in
profit or loss
(Thousands
of euros)
Assets
Liabilities
Foreign currency hedges Foreign currency
hedge
Purchase of USD
2015
151,142
-
11,740
8
Foreign currency hedges Foreign currency
hedge
Purchase of USD
2016
72,103
-
3,982
6
Foreign currency hedges Foreign currency
hedge
Purchase of USD
2017
6,988
-
415
1
At 31 December 2015, the fair value of the Company’s foreign currency derivatives, which are
designated and are effective as cash flow hedges, was estimated to be positive by EUR 15,882
thousand and negative by EUR 310 thousand (31 December 2014: positive by EUR 16,224
thousand and negative by EUR 15 thousand). This amount was deferred and recognised in equity,
taking into account the tax effect.
The derivatives were measured by estimating the present value of the future cash flows that will
arise under the terms and conditions arranged by the parties in the derivative contract. The cash
price is taken to be the reference exchange rates of the European Central Bank on 31 December
2015, the swap points (offer/bid), the interest rates prevailing at the measurement date and the
credit risk.
The sensitivity analysis of the foreign currency derivative financial instruments demonstrates that
changes of +/-10% in the USD/EUR exchange rate prevailing at year-end would give rise to
changes in fair value within a range of EUR +/-14.5 million for hedges the underlying of which is in
force at year-end and changes of EUR +/-6.6 million for hedges the underlying of which is not yet
in force and therefore affect equity. Appreciations in the USD/EUR exchange rate give rise to
increases in the value while depreciations in the exchange rate give rise to decreases in the value.
With respect to the sensitivity analysis of the balances payable to suppliers in USD, changes of +/-
10% in the USD/EUR exchange rate prevailing at year-end would give rise to changes in the fair
value recognised of around EUR +/-15.9 million, and would be sufficiently offset by the changes in
the value of the derivatives arranged.
In 2014 changes of +/-10% in the exchange rate prevailing at year-end would have given rise to
changes in the fair value of the derivatives of around EUR +/-17.5 million and of EUR +/-18.0
million of the accounts payable in USD. In 2014 the impact of the changes in fair value of the
derivatives related mainly to the hedges, the underlying of which was in force at year-end.