8 Financial instruments

Fair value of financial instruments

The carrying amounts and the fair values of financial assets and financial liabilities with the corresponding valuation categories can be found in the following table. The table does not include cash and cash equivalents, accounts receivable and payable or other receivables and liabilities whose carrying amount corresponds to an adequate estimate of the fair value. The fair value hierarchy encompasses the following three levels:

  • Level 1: stock-exchange quoted prices in active markets for identical assets or liabilities;
  • Level 2: other factors which are observable on markets for assets and liabilities, either directly or indirectly;
  • Level 3: factors that are not based on observable market data.
  Carrying amount   Fair Value

In CHF million
Loans and
  At fair value
through profit
or loss

Level 1

Level 2

Level 3
30 June 2016
Derivative financial instruments       58       58  
Other assets valued at fair value       61     61    
Available-for-sale financial assets     8           8
Financial assets measured at fair value     8   119     61   58   8
Other loans and receivables   209           237  
Financial assets not measured at fair value   209           237  
Derivative financial instruments       99       99  
Financial liabilities measured at fair value       99       99  
Bank loans         1,849     1,892  
Debenture bonds         5,743   6,247    
Private placements         936     977  
Finance lease liabilities         527     1,163  
Other interest-bearing financial liabilities         36     36  
Other non-interest-bearing financial liabilities         280     280  
Financial liabilities not measured at fair value         9,371   6,247   4,348  

In addition, available-for-sale financial assets as of 30 June 2016 with a carrying amount of CHF 38 million are measured at acquisition cost. Level-3 financial instruments performed as follows in the first six months of 2016:

In CHF million   Available-for-sale financial assets
Balance at 31 December 2015   15
Disposals   (7)
Balance at 30 June 2016   8

Level-3 assets consist of investments in various investment funds. The fair value was calculated using a valuation model. In the first half of 2016, there were no reclassifications between the various levels.