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9 Financial instruments and fair value disclosures

Cash and cash equivalents as per cash flow statement comprise cash and cash equivalents as per balance sheet and bank overdrafts (December 31, 2016: CHF 0.0 million; June 30, 2017: CHF 2.2 million) that are included in the position ‘Current financial liabilities’.

9.1 Classes of Financial instruments

 

 

Carrying amount

Fair value

 

 

CHF 1,000

Cash

and cash

equiva-

lents

Current

derivatives

Trade

and other

receiva-

bles

Non-

current

financial

assets

Total 
assets

Current

financial

liabilities

Trade

and other

payables/

accrued

expenses

 

Non-

current

financial

liabilities

Total 
liabilities

 

Financial instruments 

 measured at fair value

 

 

 

 

 

 

 

 

 

 

Currency forwards

3,038

36

3,074

(5,721)

(1,101)

(6,822)

 

Contingent consideration

(9,273)

(9,273)

 

 

 

 

 

 

 

 

 

 

 

 

Financial instruments 

  measured at amortized costs1

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

246,744

246,744

 

Receivables

95'763

95,763

 

Rent and other deposits

341

656

997

 

Current bank liabilities

(1,103)

(1,103)

 

Bank loans

(956)

(704)

(1,660)

(1,644)

Payables and accrued expenses

(50,329)

(50,329)

 

 

 

 

 

 

 

 

 

 

 

 

Total financial instruments

246,744

3,038

96,104

692

346,578

(7,780)

(50,329)

(11,078)

(69,187)

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items2

10,725

10,725

(14,177)

(14,177)

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2016

246,744

3'038

106,829

692

357,303

(7,780)

(64,506)

(11,078)

(83,364)

 

1 The carrying amount of financial instruments measured at amortized costs is a reasonable approximation of their fair value due to their short-term nature.  Bank loans are the only exception due to their long-term nature.

2 Receivables/payables arising from POC, VAT/other non-income taxes and social security

 

Carrying amount

Fair value

 

 

CHF 1,000

Cash

and cash

equiva-

lents

Current

derivatives

Trade

and other

receiva-

bles

Non-

current

financial

assets

Total
assets

Current


financial

liabilities

Trade

and other

payables/

accrued

expenses

 

Non-

current

financial

liabilities

Total
liabilities

 

Financial instruments 

 measured at fair value

 

 

 

 

 

 

 

 

 

 

Currency forwards

1,068

802

1,870

(1,075)

(1,075)

 

Contingent consideration

– 

– 

– 

– 

– 

(4,694)

(6,167)

(10,861)

 

 

 

 

 

 

 

 

 

 

 

 

Financial instruments 

measured at amortized costs1

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

250,082

250,082

 

Receivables

91,156

91,156

 

Rent and other deposits

475

641

1,116

 

Current bank liabilities

(5,414)

(5,414)

 

Bank loans

(719)

 (719)

(704)

Payables and accrued expenses

(46,640)

(46,640)

 

 

 

 

 

 

 

 

 

 

 

 

Total financial instruments

250,082

1,068

91,631

1,443

344,224

(11,183)

(46,640)

(6,886)

(64,709)

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items2

14,314

14,314

(16,033)

(16,033)

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2017

250,082

1,068

105,945

1,443

358,538

(11,183)

(62,673)

(6,886)

(80,742)

 

  1. The carrying amount of financial instruments measured at amortized costs is a reasonable approximation of their fair value due to their short-term nature.  Bank loans are the only exception due to their long-termnature.

  2. Receivables/payables arising from POC, VAT/other non-income taxes and social security

9.2 Fair value hierarchy (level) and valuation techniques used

 

Position

Level

Data source

Model

Currency forwards

Level 2 

Bloomberg 

(forward rate - [spot rate +/- forward points]) * amount in foreign currency

Bank loans

Level 2

Bloomberg

The fair value is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.

Contingent consideration

Level 3

n/a

Discounted cash flow model (see note 3.1 and 9.3)

There have been no transfers between the levels in 2016 and 2017.

 

9.3 Contingent consideration (level 3)

 

CHF 1,000

2016

 

2017

 

Balance at January 1

 9,273

Acquisition through business combination

 1,743

Change in fair value recognized in other operating expenses

360

Translation differences

(515)

 

 

Balance at June 30

10,861

 

Beside of the WACCs that were used for discounting the expected payments, the underlying business plans are the most significant unobservable inputs. A decrease in the forecasted net sales of 10% would result in a fair value of less than a million considering the sales-defined milestones.

EN DE