AIRBUS - 2019 Financial Statements

2.7 Capital Structure and Financial Instruments Notes to the IFRS Consolidated Financial Statements / 37.5 Derivative Financial Instruments and Hedge Accounting Disclosure The following table presents the reconciliation of AOCI , net of tax, resulting from cash flow hedge accounting as of 31 December 2019 and 31 December 2018: (In € million) 31 December 2019 2018 Hedge reserve Opening balance 1,473 (776) Foreign exchange contracts 3,527 3,825 Others 7 7 Changes in fair values 3,534 3,832 Foreign exchange contracts (1,894) (799) Others (2) (1) Amount reclassified to profit or loss (matured hedges) (1,896) (800) Foreign exchange contracts (207) (4) Others 0 0 Amount classified to profit or loss (inefficiency) (207) (4) Tax impact (383) (779) Closing balance 2,521 1,473 The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness for cash-flow hedges as of 31 December 2019: (In € million) Carrying values OCI Hedge inefficiency recorded in financial result (1) Amounts reclassified from hedge reserve to profit and loss Asset Liability Changes in values of the hedging instrument Other changes in value of the hedge reserve Foreign currency risk Net forward sales contracts 848 (3,787) 699 2,824 (208) (1,895) Foreign exchange options 19 (58) (1) 2 0 1 Embedded Derivatives 0 (18) 14 0 0 0 Interest rate risk 0 (3) 0 0 0 0 Commodity swap risk 9 (10) (4) 0 0 (2) Equity swap risk 20 0 0 0 0 0 Total 896 (3,876) 707 2,826 (208) (1,896) (1) It includes the financial expense of €112 million on hedge ineffectiveness (see “– Note 11: Revenue and Gross Margin”). The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness for cash-flow hedges as of 31 December 2018: (In € million) Carrying values OCI Hedge inefficiency recorded in financial result Amounts reclassified from hedge reserve to profit and loss Asset Liability Changes in values of the hedging instrument Other changes in value of the hedge reserve Foreign currency risk Net forward sales contracts 868 (2,410) 2,749 807 (4) (791) Foreign exchange options 21 (28) 9 252 0 0 Embedded Derivatives 0 (16) 6 0 0 (9) Interest rate risk 0 (3) (5) 0 0 0 Commodity swap risk 10 (17) 4 0 0 (1) Equity swap risk 19 (4) 9 0 0 0 Total 918 (2,478) 2,771 1,059 (4) (801) 76 Airbus / Financial Statements 2019