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Deutsche Telekom AG - Interim Group report - January 1 to September 30, 2015

50 Interim consolidated financial statements Deutsche Telekom. Interim Group Report 9M 2015. Financial instruments measured at fair value millions of € Sept. 30, 2015 Dec. 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total ASSETS Available-for-sale financial assets (AfS) 182 243 425 348 5 208 561 Financial assets held for trading (FAHfT) 975 125 1,100 652 183 835 Derivative financial assets with a hedging relationship 1,230 1,230 508 508 LIABILITIES AND SHAREHOLDERSʼ EQUITY Financial liabilities held for trading (FLHfT) 390 317 707 664 664 Derivative financial liabilities with a hedging relationship 107 107 431 431 Of the available-for-sale financial assets (AfS) presented under other non- derivative financial assets, the instruments presented in Level 1 and Level 2 constitute separate classes. In Level 1, EUR 182 million (December 31, 2014: EUR 348 million) is recognized, which largely relates to listed government bonds, the fair values of which are the price quotations at the reporting date. Development of the carrying amounts of the financial assets and financial liabilities assigned to Level 3 millions of € Available-for-sale financial assets (AfS) Financial assets held for trading (FAHfT): Early redemption options embedded in bonds Financial liabilities held for trading (FLHfT): Conversion rights embedded in Mandatory Convertible Preferred Stock Carrying amount as of January 1, 2015 208 183 0 Additions (including first-time categorization as Level 3) 29 – – Value decreases recognized in profit/loss 0 (174) (323) Value increases recognized in profit/loss – 106 – Value decreases recognized directly in equity (1) – – Value increases recognized directly in equity 18 – – Disposals (11) – – Currency translation effects recognized directly in equity – 10 6 CARRYING AMOUNT AS OF SEPTEMBER 30, 2015 243 125 (317) The available-for-sale financial assets assigned to Level 3 that are carried under other non-derivative financial assets are equity investments with a carrying amount of EUR 243 million measured using the best information available at the reporting date. As a rule, we consider transactions involving shares in the respective companies to have the greatest relevance. Trans­ actions involving shares in comparable companies are also considered. The closeness of the transaction in question to the reporting date and the question of whether the transaction was at armʼs length are relevant for the decision on which information will ultimately be used for the measurement. In the case of investments with a carrying amount of EUR 227 million, trans­actions involving shares in these companies took place at armʼs length sufficiently close to the reporting date, which is why in our view the share prices agreed in the transactions were to be used without adjustment for the measurement as of the current reporting date. In the case of investments with a carrying amount of EUR 16 million, no armʼs length transactions involving shares in these companies took place sufficiently close to the reporting date. For this reason, these were measured on the basis of armʼs length transactions involving shares in comparable companies that were executed sufficiently close to the reporting date. Here, multiples to the reference variables of net revenue (ranging between 0.52 and 3.5) and EBIT (ranging between 6.6 and 39.75) were used, usually the respective median. If the value of the respective 2/3-quantile (1/3-quantile) had been used as a multiple with no change in the reference variables, the fair value of the investments at the reporting date would have been EUR 5 million higher (EUR 6 million lower). If the reference variables had been 10 percent higher (lower) with no change in the multiples, the fair value of the investments at the reporting date would have been EUR 1 million higher (EUR 1 million lower). In the reporting period, net expense of less than EUR 1 million was recognized in other financial income/expense for unrealized losses for the investments in the portfolio at the reporting date. For practical reasons, the investments are not remeasured annually unless the periodic individual analysis of the financial position and results of operations of the companies indicates significant changes in the fair values. Please refer to the table on the left for the development of the carrying amounts in the reporting period. No plans existed as of the reporting date to sell these investments. Available-for-sale financial assets (AfS) 1822434253485208561 Financial assets held for trading (FAHfT) 9751251,100652183835 Derivative financial assets with a hedging relationship 1,2301,230508508 Financial liabilities held for trading (FLHfT) 390317707664664 Derivative financial liabilities with a hedging relationship 107107431431 of January 1, 20152081830 directly in equity – 106 SEPTEMBER 30, 2015243125 (317)

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