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FINANCIAL STATEMENTS
6
CONSOLIDATED FINANCIAL STATEMENTS
OTHER LONG- AND SHORT-TERM DEBT AND NON-CURRENT AND CURRENT FINANCIAL LIABILITIES
In millions of euros
1 Jan. 2016
Increases
Repayments
Currency
translation
differences
Change in
fair value
Effect
of wchanges
in scope of
consolidation
Other
movements
31 Dec.
2016
Bank borrowings
–
–
–
–
–
0.3
–
0.3
Sundry financial liabilities
4.5
–
(0.6)
0.2
–
–
–
4.1
Fair value of derivatives
2.1
–
–
–
(2.1)
–
–
–
Total non-current financial
liabilities
6.6
–
(0.6)
0.2
(2.1)
0.3
–
4.4
Bank borrowings
0.5
80.0
(0.1)
–
–
0.1
–
80.5
Sundry financial liabilities
1.7
–
(0.1)
–
1.0
2.4
(2.8)
2.2
Total current financial
liabilities
2.2
80.0
(0.2)
–
1.0
2.5
(2.8)
82.7
Bank borrowings
0.5
80.0
(0.1)
–
–
0.4
–
80.8
Sundry financial liabilities
6.2
–
(0.7)
0.2
1.0
2.4
(2.8)
6.3
Fair value of derivatives
2.1
–
–
–
(2.1)
–
–
–
Total
8.8
80.0
(0.8)
0.2
(1.1)
2.8
(2.8)
87.1
The buybacks of the Odirnane bonds were partly financed by drawing
down a net €80 million under the Group’s revolving credit facility. In
January 2017 Assystem entered into a new €280 million financing
arrangement with a pool of banks, comprising an €80 million term loan
and a €200 million revolving credit facility (see Note 14 – Significant
events after the reporting date). Consequently, the drawdown on the
revolving credit facility included in “Other short-term debt and current
financial liabilities” at 31 December 2016 was repaid in early 2017.
Other movements in “Sundry financial liabilities” primarily reflected:
●
the takeover by the Company of a €2.2 million shareholder’s loan in
connection with the acquisition of Aerotec in the GPS division (see
Note 3.2 – Business combinations);
●
the payment of €1.1 million in coupons on the Ornane bonds, for
which a provision had been recognised at 31 December 2015.
8.3 Derivative instruments
The Group uses derivative instruments to manage and reduce its exposure to changes in interest rates and foreign exchange rates.
Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently remeasured at
fair value at each reporting date. The method of recognising the resulting fair value gains or losses depends on whether the derivative
is designated as a hedging instrument, and if so, the nature of the hedged item.
On inception of a hedge, the Group documents the relationship between the hedged item and the hedging instrument. The Group also
documents its estimates both on inception and prospectively to determine the effectiveness of the hedge in offsetting changes in fair
value or cash flows attributable to the hedged risk.
FAIR VALUE HEDGES
Fair value hedges are used to hedge the Group’s exposure to changes in fair value of a recognised asset or liability (or an identified
portion of such an asset or liability) or a firm commitment to purchase or sell an asset at a pre-defined price, that is attributable to a
particular risk and could affect profit. Changes in fair value are recognised in the income statement.
ASSYSTEM
REGISTRATION DOCUMENT
2016
110