Financial Instruments

The system used by the Bayer Group to manage credit risks, liquidity risks and the different types of market price risk (interest-rate and currency risks), together with its objectives, methods and procedures, is outlined in the Opportunity and Risk Report, which forms part of the Combined Management Report.

Financial instruments by category

The following table shows the carrying amounts and fair values of financial assets and liabilities for each financial instrument category and a Reconciliation The reconciliation records, on the one hand, those business activities not assigned to any other segment (“All Other Segments”), including particularly the services provided by Business Services and Currenta. It also includes “Corporate Functions and Consolidation,” which largely comprises Bayer holding companies and Leaps by Bayer (formerly the Bayer Lifescience Center). to the corresponding line item in the statements of financial position. Since the line items “Other receivables,” “Trade accounts payable” and “Other liabilities” contain both financial instruments and nonfinancial assets or liabilities (such as other tax receivables or advance payments for services to be received in the future), the reconciliation is shown in the column headed “Nonfinancial assets / liabilities.”

Carrying Amounts and Fair Values of Financial Instruments

 

 

Dec. 31, 2017

 

 

Carried at amortized cost

 

Carried at fair value [fair value for information1]

 

Nonfinancial assets / liabilities

 

 

 

 

Carrying amount

 

Based on quoted prices in active markets (Level 1)

Based on observable market data (Level 2)

Based on unobservable inputs (Level 3)

 

Carrying amount

 

Carrying amount in the statement of financial position

 

 

 

Carrying amount

Carrying amount

Carrying amount

 

 

 

 

€ million

 

€ million

€ million

€ million

 

€ million

 

€ million

1

Fair value of the financial instruments carried at amortized cost; the exemption provisions under IFRS 7.29(a) were applied for information on specific fair values.

Trade accounts receivable

 

8,582

 

 

 

 

 

 

 

8,582

Loans and receivables

 

8,582

 

 

 

 

 

 

 

8,582

Other financial assets

 

1,823

 

452

2,085

803

 

 

 

5,163

Loans and receivables

 

1,731

 

 

[1,731]

 

 

 

 

1,731

Available-for-sale financial assets

 

35

 

448

1,452

793

 

 

 

2,728

Held-to-maturity financial assets

 

57

 

 

[58]

 

 

 

 

57

Derivatives that qualify for hedge accounting

 

 

 

 

296

 

 

 

 

296

Derivatives that do not qualify for hedge accounting

 

 

 

4

337

10

 

 

 

351

Other receivables

 

380

 

 

 

46

 

1,250

 

1,676

Loans and receivables

 

380

 

 

[380]

 

 

 

 

380

Available-for-sale financial assets

 

 

 

 

 

46

 

 

 

46

Nonfinancial assets

 

 

 

 

 

 

 

1,250

 

1,250

Cash and cash equivalents

 

7,581

 

 

 

 

 

 

 

7,581

Loans and receivables

 

7,581

 

 

[7,581]

 

 

 

 

7,581

Total financial assets

 

18,366

 

452

2,085

849

 

 

 

21,752

of which loans and receivables

 

18,274

 

 

 

 

 

 

 

18,274

of which available-for-sale financial assets

 

35

 

448

1,452

839

 

 

 

2,774

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities

 

12,958

 

1,220

240

 

 

 

 

14,418

Carried at amortized cost

 

12,958

 

[11,327]

[2,183]

 

 

 

 

12,958

Carried at fair value (non-derivative)

 

 

 

1,220

 

 

 

 

 

1,220

Derivatives that qualify for hedge accounting

 

 

 

 

187

 

 

 

 

187

Derivatives that do not qualify for hedge accounting

 

 

 

 

53

 

 

 

 

53

Trade accounts payable

 

4,568

 

 

 

 

 

561

 

5,129

Carried at amortized cost

 

4,568

 

 

 

 

 

 

 

4,568

Nonfinancial liabilities

 

 

 

 

 

 

 

561

 

561

Other liabilities

 

681

 

2

319

7

 

1,759

 

2,768

Carried at amortized cost

 

681

 

 

[681]

 

 

 

 

681

Carried at fair value (non-derivative)

 

 

 

 

 

7

 

 

 

7

Derivatives that qualify for hedge accounting

 

 

 

 

288

 

 

 

 

288

Derivatives that do not qualify for hedge accounting

 

 

 

2

31

 

 

 

 

33

Nonfinancial liabilities

 

 

 

 

 

 

 

1,759

 

1,759

Total financial liabilities

 

18,207

 

1,222

559

7

 

 

 

19,995

of which carried at amortized cost

 

18,207

 

 

 

 

 

 

 

18,207

of which derivatives that qualify for hedge accounting

 

 

 

 

475

 

 

 

 

475

of which derivatives that do not qualify for hedge accounting

 

 

 

2

84

 

 

 

 

86

Carrying Amounts and Fair Values of Financial Instruments

 

 

Dec. 31, 2016

 

 

Carried at amortized cost

 

Carried at fair value [fair value for information1]

 

Nonfinancial assets / liabilities

 

 

 

 

Carrying amount

 

Based on quoted prices in active markets (Level 1)

Based on observable market data (Level 2)

Based on unobservable inputs (Level 3)

 

Carrying amount

 

Carrying amount in the statement of financial position

 

 

 

Carrying amount

Carrying amount

Carrying amount

 

 

 

 

€ million

 

€ million

€ million

€ million

 

€ million

 

€ million

1

Fair value of the financial instruments carried at amortized cost; the exemption provisions under IFRS 7.29(a) were applied for information on specific fair values.

Trade accounts receivable

 

10,969

 

 

 

 

 

 

 

10,969

Loans and receivables

 

10,969

 

 

 

 

 

 

 

10,969

Other financial assets

 

2,245

 

523

3,985

803

 

 

 

7,556

Loans and receivables

 

2,148

 

 

[2,145]

[16]

 

 

 

2,148

Available-for-sale financial assets

 

32

 

520

3,283

794

 

 

 

4,629

Held-to-maturity financial assets

 

65

 

 

[68]

 

 

 

 

65

Derivatives that qualify for hedge accounting

 

 

 

 

269

 

 

 

 

269

Derivatives that do not qualify for hedge accounting

 

 

 

3

433

9

 

 

 

445

Other receivables

 

633

 

 

 

57

 

2,103

 

2,793

Loans and receivables

 

633

 

 

[633]

 

 

 

 

633

Available-for-sale financial assets

 

 

 

 

 

57

 

 

 

57

Nonfinancial assets

 

 

 

 

 

 

 

2,103

 

2,103

Cash and cash equivalents

 

1,899

 

 

 

 

 

 

 

1,899

Loans and receivables

 

1,899

 

 

[1,899]

 

 

 

 

1,899

Total financial assets

 

15,746

 

523

3,985

860

 

 

 

21,114

of which loans and receivables

 

15,649

 

 

 

 

 

 

 

15,649

of which available-for-sale financial assets

 

32

 

520

3,283

851

 

 

 

4,686

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities

 

18,994

 

 

587

 

 

 

 

19,581

Carried at amortized cost

 

18,994

 

[16,040]

[3,362]

 

 

 

 

18,994

Carried at fair value (non-derivative)

 

 

 

 

 

 

 

 

 

Derivatives that qualify for hedge accounting

 

 

 

 

312

 

 

 

 

312

Derivatives that do not qualify for hedge accounting

 

 

 

 

275

 

 

 

 

275

Trade accounts payable

 

6,035

 

 

 

 

 

375

 

6,410

Carried at amortized cost

 

6,035

 

 

 

 

 

 

 

6,035

Nonfinancial liabilities

 

 

 

 

 

 

 

375

 

375

Other liabilities

 

840

 

2

252

25

 

2,259

 

3,378

Carried at amortized cost

 

840

 

 

[840]

 

 

 

 

840

Carried at fair value (non-derivative)

 

 

 

 

 

8

 

 

 

8

Derivatives that qualify for hedge accounting

 

 

 

 

165

 

 

 

 

165

Derivatives that do not qualify for hedge accounting

 

 

 

2

87

17

 

 

 

106

Nonfinancial liabilities

 

 

 

 

 

 

 

2,259

 

2,259

Total financial liabilities

 

25,869

 

2

839

25

 

 

 

26,735

of which carried at amortized cost

 

25,869

 

 

 

 

 

 

 

25,869

of which derivatives that qualify for hedge accounting

 

 

 

 

477

 

 

 

 

477

of which derivatives that do not qualify for hedge accounting

 

 

 

2

362

17

 

 

 

381

The loans and receivables reflected in other financial assets and the liabilities measured at amortized cost also include receivables and liabilities under finance leases in which Bayer is the lessor or lessee and which are therefore measured in accordance with IAS 17.

Due to the short maturities of most trade accounts receivable and payable, other receivables and liabilities, and cash and cash equivalents, their carrying amounts at the closing date do not significantly differ from the fair values.

The fair values of loans and receivables, held-to-maturity financial investments and of financial liabilities carried at amortized cost that are given for information are the present values of the respective future cash flows. The present values are determined by discounting the cash flows at a closing-date interest rate, taking into account the term of the assets or liabilities and the creditworthiness of the counterparty. Where a market price is available, however, this is deemed to be the fair value.

The fair values of available-for-sale financial assets correspond to quoted prices in active markets (Level 1), are determined using valuation techniques based on observable market data as of the end of the reporting period (Level 2) or are the present values of the respective future cash flows, determined on the basis of unobservable inputs (Level 3).

The fair values of derivatives for which no publicly quoted prices exist in active markets (Level 1) are determined using valuation techniques based on observable market data as of the end of the reporting period (Level 2). In applying valuation techniques, credit value adjustments are determined to allow for the contracting party’s credit risk.

Currency and commodity forward contracts are measured individually at their forward rates or forward prices on the closing date. These depend on spot rates or prices, including time spreads. The fair values of interest-rate hedging instruments and cross-currency interest-rate swaps were determined by discounting future cash flows over the remaining terms of the instruments at market rates of interest, taking into account any foreign currency translation as of the closing date.

Fair values measured using unobservable inputs are categorized within Level 3 of the fair value hierarchy. This applies to certain available-for-sale debt or equity instruments, in some cases to the fair values of embedded derivatives, and to obligations for contingent consideration in business combinations. Credit risk is frequently the principal unobservable input used to determine the fair values of debt instruments classified as available-for-sale financial assets by the discounted cash flow method. Here the credit spreads of comparable issuers are applied. A significant increase in credit risk could result in a lower fair value, whereas a significant decrease could result in a higher fair value. However, a relative change of 10% in the credit spread does not materially affect the fair value.

Embedded derivatives are separated from their respective host contracts. Such host contracts are generally sale or purchase agreements relating to the operational business. The embedded derivatives cause the cash flows from the contracts to vary with exchange-rate or price fluctuations. The internal measurement of embedded derivatives is mainly performed using the discounted cash flow method, which is based on unobservable inputs. These include planned sales and purchase volumes, and prices derived from market data. Regular monitoring is carried out based on these fair values as part of quarterly reporting.

Within financial liabilities, the fair value option permitted by IAS 39.11A was used for the first time for the debt instruments issued in June 2017 (exchangeable bond 2017/2020). On first-time recognition, the bond was designated as a financial liability at fair value through profit or loss.

The changes in the amount of financial assets and liabilities recognized at fair value based on unobservable inputs (Level 3) for each financial instrument category were as follows:

Development of Financial Assets and Liabilities (Level 3)

 

 

2016

 

2017

 

 

Available-for-sale financial assets

Derivatives (net)

Liabilities measured at fair value (non-derivative)

Total

 

Available-for-sale financial assets

Derivatives (net)

Liabilities carried at fair value (non-derivative)

Total

 

 

€ million

€ million

€ million

€ million

 

€ million

€ million

€ million

€ million

Carrying amounts of net assets / (net liabilities), Jan. 1

 

833

9

(37)

805

 

851

(8)

(8)

835

Gains (losses) recognized in profit or loss

 

18

(17)

23

24

 

15

21

36

of which related to assets / liabilities recognized in the statements of financial position

 

18

(17)

1

 

15

21

36

Gains (losses) recognized outside profit or loss

 

9

9

 

(16)

(16)

Additions of assets / (liabilities)

 

46

46

 

6

6

Settlements of (assets) / liabilities

 

(23)

6

(17)

 

(17)

1

(16)

Disposals from divestments / changes in scope of consolidation

 

 

(3)

(3)

Transfers to a different fair-value hierarchy

 

(32)

(32)

 

Carrying amounts of net assets / (net liabilities), Dec. 31

 

851

(8)

(8)

835

 

839

10

(7)

842

The changes recognized in profit or loss were included in other operating income / expenses, interest income or exchange gains / losses.

Income, expense, gains and losses on financial instruments can be assigned to the following categories:

Income, Expense, Gains and Losses on Financial Instruments

 

 

2017

 

 

Loans and receivables

 

Held-to-maturity financial investments

 

Available-for-sale financial assets

 

Held for trading

 

Liabilities carried at amortized cost

 

Liabilities carried at fair value (non-derivative)

 

Total

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

Interest income

 

61

 

 

37

 

 

78

 

 

176

Interest expense

 

 

 

 

(3)

 

(628)

 

 

(631)

Income / expenses from affiliated companies

 

 

 

2

 

 

 

 

2

Changes in fair value

 

 

 

 

17

 

 

(172)

 

(155)

Impairment losses

 

(139)

 

 

(1)

 

 

 

 

(140)

Impairment loss reversals

 

23

 

 

5

 

 

 

 

28

Exchange gains / losses

 

(733)

 

 

 

(232)

 

620

 

 

(345)

Gains / losses from retirements

 

 

 

5

 

 

 

 

5

Other financial income / expenses

 

(14)

 

 

(7)

 

 

 

 

(21)

Net result

 

(802)

 

 

41

 

(218)

 

70

 

(172)

 

(1,081)

Income, Expense, Gains and Losses on Financial Instruments (Previous Year)

 

 

2016

 

 

Loans and receivables

 

Held-to-maturity financial investments

 

Available-for-sale financial assets

 

Held for trading

 

Liabilities carried at amortized cost

 

Liabilities carried at fair value (non-derivative)

 

Total

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

2016 figures restated

Interest income

 

42

 

 

21

 

2

 

62

 

 

127

Interest expense

 

 

 

 

(3)

 

(597)

 

 

(600)

Income / expenses from affiliated companies

 

 

 

 

 

 

 

Changes in fair value

 

 

 

 

(71)

 

 

 

(71)

Impairment losses

 

(163)

 

 

(2)

 

 

 

 

(165)

Impairment loss reversals

 

23

 

 

 

 

 

 

23

Exchange gains / losses

 

348

 

 

 

(55)

 

(329)

 

 

(36)

Gains / losses from retirements

 

 

 

6

 

 

 

 

6

Other financial income / expenses

 

 

 

 

 

(34)

 

 

(34)

Net result

 

250

 

 

25

 

(127)

 

(898)

 

 

(750)

The interest expense of €628 million (2016: €597 million) from non-derivative financial liabilities also included the income and expense from interest-rate swaps that qualified for hedge accounting. Interest income from financial assets not measured at fair value through profit or loss amounted to €98 million (2016: €63 million). Interest income from interest-rate derivatives that qualified for hedge accounting was €78 million (2016: €62 million). The changes in fair values of financial assets held for trading related mainly to forward commodity contracts and embedded derivatives.

The changes of minus €172 million in the fair value of (nonderivative) liabilities measured at fair value contain fair value adjustments pertaining to debt instruments (exchangeable bond 2017/2020) issued in June 2017. The changes in fair value relating to credit risks were not material.

Derivatives that form part of a master netting arrangement, constitute a financial asset or liability and can only be netted in the event of breach of contract by, or insolvency of, one of the contracting parties do not satisfy, or only partially satisfy, the criteria for offsetting in the statement of financial position according to IAS 32. The volume of such derivatives with positive fair values was €654 million (2016: €630 million), and the volume with negative fair values was €520 million (2016: €762 million). Included here is an amount of €312 million (2016: €362 million) in positive and negative fair values of derivatives concluded with the same contracting party.

Maturity analysis

The liquidity risks to which the Bayer Group was exposed from its financial instruments at the end of the reporting period comprised obligations for future interest and repayment installments on financial liabilities and the liquidity risk arising from derivatives.

There were also loan commitments under an as yet unpaid €1,005 million (2016: €1,005 million) portion of the effective initial fund of Bayer-Pensionskasse VVaG, which may result in further payments by Bayer AG in subsequent years.

Maturity Analysis of Financial Instruments

 

 

Carrying amount

 

Interest and repayment

 

 

Dec. 31, 2017

 

2018

2019

2020

2021

2022

after 2022

 

 

€ million

 

€ million

€ million

€ million

€ million

€ million

€ million

Financial liabilities

 

 

 

 

 

 

 

 

 

Bonds and notes / promissory notes

 

12,436

 

719

2,096

1,487

2,288

236

7,125

Liabilities to banks

 

534

 

527

20

Remaining liabilities

 

1,208

 

716

359

40

32

26

177

 

 

 

 

 

 

 

 

 

 

Trade accounts payable

 

4,568

 

4,555

11

2

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

 

 

 

 

 

 

 

Accrued interest on liabilities

 

149

 

140

1

1

1

1

5

Remaining liabilities

 

539

 

455

66

3

2

2

11

 

 

 

 

 

 

 

 

 

 

Liabilities from derivatives

 

 

 

 

 

 

 

 

 

Derivatives that qualify for hedge accounting

 

475

 

443

34

6

Derivatives that do not qualify for hedge accounting

 

86

 

88

1

2

 

 

 

 

 

 

 

 

 

 

Receivables from derivatives

 

 

 

 

 

 

 

 

 

Derivatives that qualify for hedge accounting

 

296

 

144

62

17

2

Derivatives that do not qualify for hedge accounting

 

351

 

331

4

1

1

 

 

 

 

 

 

 

 

 

 

Loan commitments

 

 

1,005

Financial guarantees

 

 

12

Maturity Analysis of Financial Instruments

 

 

Carrying amount

 

Interest and repayment

 

 

Dec. 31, 2016

 

2017

2018

2019

2020

2021

after 2021

 

 

€ million

 

€ million

€ million

€ million

€ million

€ million

€ million

Financial liabilities

 

 

 

 

 

 

 

 

 

Bonds and notes / promissory notes

 

15,991

 

2,261

2,160

2,367

295

2,916

8,093

Liabilities to banks

 

1,837

 

884

998

39

9

Remaining liabilities

 

1,166

 

293

303

382

61

58

268

 

 

 

 

 

 

 

 

 

 

Trade accounts payable

 

6,035

 

6,028

4

2

1

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

 

 

 

 

 

 

 

Accrued interest on liabilities

 

186

 

181

1

1

1

2

Remaining liabilities

 

662

 

626

3

5

2

1

25

 

 

 

 

 

 

 

 

 

 

Liabilities from derivatives

 

 

 

 

 

 

 

 

 

Derivatives that qualify for hedge accounting

 

477

 

178

231

157

2

Derivatives that do not qualify for hedge accounting

 

381

 

374

3

4

2

1

1

 

 

 

 

 

 

 

 

 

 

Receivables from derivatives

 

 

 

 

 

 

 

 

 

Derivatives that qualify for hedge accounting

 

269

 

210

23

4

3

2

Derivatives that do not qualify for hedge accounting

 

445

 

467

2

2

1

1

1

 

 

 

 

 

 

 

 

 

 

Loan commitments

 

 

1,213

Financial guarantees

 

 

14

3

Information on derivatives

Asset and liability fair values and future cash flows are exposed to currency, interest-rate and commodity price risks. Derivatives are used to reduce this risk. In some cases they are designated as hedging instruments in a hedge accounting relationship.

Currency risks

Foreign currency receivables and liabilities are hedged using Foreign exchange Claims for payments in foreign currencies traded on foreign exchanges, usually in the form of balances with foreign banks or bills of exchange or checks payable abroad; banknotes and coins denominated in foreign currencies are not considered to be foreign exchange. derivatives without the existence of a hedge accounting relationship. A bond of Bayer AG denominated in British pounds was swapped on the issuance date into a fixed-rate euro bond by means of a cross-currency interest-rate swap, which was designated as a cash flow hedge. Cross-currency interest-rate swaps used to hedge intra-Group loans were also designated as cash flow hedges.

Fluctuations in future cash flows resulting from forecasted foreign currency transactions and procurement activities are avoided partly through derivatives contracts, most of which are designated as cash flow hedges.

Foreign currency risks related to the planned acquisition of Monsanto Company were partially hedged with currency derivatives, which were designated as cash flow hedges.

Interest-rate risk

The interest-rate risks from fixed-interest borrowings are managed in part using interest-rate swaps. Two interest-rate swaps in the total amount of €200 million were designated as fair value hedges for the €750 million Debt Issuance Program (DIP) DIP is a documentation platform that has enabled Bayer to flexibly issue notes in various currencies and with different maturities. bond issued in 2014 and maturing in 2021.

Losses of €3 million were recorded on fair-value hedging instruments in 2017 (2016: €1 million). Gains of €4 million were recorded on the underlying hedged items (2016: €1 million).

Interest-rate risks relating to the planned acquisition of Monsanto were partly hedged using interest-rate derivatives. These were designated as cash flow hedges.

Commodity price risks

Hedging contracts are also used to partly reduce exposure to fluctuations in future cash outflows and inflows resulting from price changes on procurement and selling markets.

Hedging of obligations under stock-based employee compensation programs

A portion of the obligations to make variable payments to employees under stock-based compensation programs (Aspire) is hedged against share price fluctuations using derivatives contracts that are settled in cash at maturity. These derivatives are designated as cash flow hedges.

Further information on cash flow hedges

Other comprehensive income from cash flow hedges declined in 2017 by €89 million (2016: increased by €44 million) due to changes in the fair values of derivatives net of tax. Total changes of €3 million in the fair values of derivatives were expensed in 2017 (2016: €3 million). The respective pro-rated deferred tax income of €2 million (2016: €2 million) was likewise recognized through profit or loss.

No material ineffective portions of hedges required recognition through profit or loss in 2017 or 2016.

The income and expense from cash flow hedges recognized in other comprehensive income as at December 31, 2017, mainly comprised gains of €177 million (2016: €204 million) and losses of €289 million (2016: €143 million) from the hedging of forecasted transactions in foreign currencies and the planned acquisition of Monsanto Company. Of these gains and losses, a net amount of €102 million (2016: minus €91 million) will be re-classifiable to profit or loss within one year, and a net amount of minus €17 million (2016: €2 million) in subsequent years.

The fair values of existing contracts in the major categories at the end of the reporting period are indicated in the following table together with the included volumes of hedges.

Fair Values of Derivatives

 

 

Dec. 31, 2016

 

Dec. 31, 2017

 

 

Notional amount1

 

Positive fair value

Negative fair value

 

Notional amount1

 

Positive fair value

Negative fair value

 

 

€ million

 

€ million

€ million

 

€ million

 

€ million

€ million

Currency hedging of recorded transactions

 

22,645

 

299

(587)

 

12,321

 

233

(240)

1

The notional amount is reported as gross volume, which also contains economically closed hedges.

2

The portion of the fair value of long-term interest-rate swaps that relates to current interest payments was classified as current.

Forward exchange contracts

 

20,454

 

296

(273)

 

10,399

 

144

(53)

Cross-currency interest-rate swaps

 

2,191

 

3

(314)

 

1,922

 

89

(187)

of which cash flow hedges

 

2,146

 

3

(312)

 

1,880

 

87

(187)

 

 

 

 

 

 

 

 

 

 

 

Currency hedging of forecasted transactions

 

17,799

 

317

(206)

 

9,475

 

116

(194)

Forward exchange contracts

 

3,805

 

48

(145)

 

9,292

 

105

(194)

of which cash flow hedges

 

3,672

 

43

(138)

 

9,205

 

103

(192)

Currency options

 

13,994

 

269

(61)

 

183

 

11

of which cash flow hedges

 

13,698

 

161

(5)

 

183

 

11

 

 

 

 

 

 

 

 

 

 

 

Interest-rate hedging of recorded transactions

 

200

 

14

 

200

 

11

Interest-rate swaps

 

200

 

14

 

200

 

11

of which fair value hedges

 

200

 

14

 

200

 

11

 

 

 

 

 

 

 

 

 

 

 

Interest-rate hedging of forecasted transactions

 

 

 

9,086

 

64

(81)

Interest-rate swaps

 

 

 

9,086

 

64

(81)

of which cash flow hedges

 

 

 

9,086

 

64

(81)

 

 

 

 

 

 

 

 

 

 

 

Commodity price hedging

 

168

 

5

(4)

 

420

 

6

(3)

Forward commodity contracts

 

167

 

4

(4)

 

414

 

6

(3)

Commodity option contracts

 

1

 

1

 

6

 

 

 

 

 

 

 

 

 

 

 

 

Hedging of stock-based employee compensation programs

 

532

 

48

(22)

 

544

 

20

(15)

Share price options

 

152

 

48

 

75

 

5

of which cash flow hedges

 

152

 

48

 

75

 

5

Forward share transactions

 

380

 

(22)

 

469

 

15

(15)

of which cash flow hedges

 

380

 

(22)

 

469

 

15

(15)

 

 

 

 

 

 

 

 

 

 

 

Total

 

41,344

 

683

(819)

 

32,046

 

450

(533)

of which current derivatives

 

38,349

 

635

(514)

 

30,259

 

317

(499)

for currency hedging

 

38,111

 

597

(510)

 

20,678

 

242

(415)

for interest-rate hedging2

 

 

3

 

9,086

 

64

(81)

for raw material price hedging

 

168

 

5

(4)

 

420

 

6

(3)

for hedging of stock-based employee compensation programs

 

70

 

30

 

75

 

5

Other information

In connection with the sale of Covestro AG shares in 2017, Bayer AG entered into derivative contracts. These resulted in Bayer AG retaining economic exposure to the price of Covestro AG shares. As at the end of the year, Bayer AG continued to hold derivatives on the Covestro AG shares with a notional amount of €752 million, and had generated a gain of €50 million from these derivatives. The derivatives had a fair value of €150 million as of December 31, 2017, that was also recognized in profit and loss.

Compare to Last Year