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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.
Financial instruments measured at fair value must be classified as levels 1 to 3, based on the
degree of verification of their fair value. Therefore, fair values derived from quoted prices on
active markets will be classified as level 1. Those derived from external information other
than quoted prices will be classified as level 2. And values obtained using valuation
techniques including data that are not observable in active markets will be classified as level
3. The Group's derivatives detailed in this heading would be classified as level 2, since they
are observable inputs that refer to market data.
Interest rate hedges
In May 2015 the Parent arranged interest rate swaps in order to fix the finance cost arising
from the floating rates applicable to each of the tranches of the syndicated financing
arranged at that date. These swaps expire in August 2019 and the hedged amount is EUR
121,500 thousand, with a fixed interest rate of 0.94%. At 31 December 2015, the fair value
of the swaps amounted to EUR 2,592 thousand and was recognised as a financial liability.
This derivative would be included in level 2.
15. Trade and other payables
The detail of trade and other payables in the consolidated balance sheets as at 31 December
2015 and 2014 is as follows:
Thousands of euros
2015
2014
Payable to suppliers
346,046
339,879
Payable to associates and related parties (Note 22)
53,148
59,178
Total payable to suppliers
399,194
399,057
Other accounts payable to public authorities (Note 21-d)
18,067
10,699
Other non-trade payables
17,645
16,218
Customer advances
1,398
2,552
Total other payables
37,110
29,469
The Group has accounts payable to suppliers, relating mainly to external production rights
denominated in foreign currency, mostly US dollars, which are recognised at each accounting
close using the USD/EUR exchange rate prevailing at that date. The detail, by maturity, in
2015 and 2014 is as follows (in thousands of euros):
2015
Thousands of euros
2016
2017
2018
2019
Total
Payable to suppliers,
foreign currency
126,595
37,411
1,560
61
165,627
2014
Thousands of euros
2015
2016
2017
2018
Total
Payable to suppliers,
foreign currency
114,926
42,169
4,710
42
161,847