PERNOD RICARD - 2018-2019 Universal registration document

6.

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Financial instruments Note 4.9 Fair value of financial instruments 1.

Breakdown by accounting classification

30.06.2018

Liabilities at amortised cost

Fair value – shareholders’ equity

Balance sheet

Measurement level

Fair value – profit

Loans and receivables

value Fair value

€ million

Assets Available-for-sale financial assets

Level 3

- - - -

13

-

- - - - - -

13

13

Guarantees, deposits, investment-related receivables Trade receivables and other operating receivables

- - - - - - - - -

108

108

108

1,122 280

1,122 280

1,122 280

Other current assets

Derivative instruments – assets Cash and cash equivalents

Level 2 Level 1

19

- -

19

19

754

754

754

Liabilities and shareholders’ equity Bonds

- - -

- - - -

6,869 6,869

7,175

Bank debt

791

791

791

Finance lease debt

31

31

31

Derivative instruments – liabilities

Level 2

43

-

43

43

Breakdown by accounting classification

30.06.2019

Liabilities at amortised cost

Fair value – profit

Fair value – shareholders’ equity

Balance sheet value

Measurement level

Loans and receivables

Fair value

€ million

Assets Equity instruments

Levels 1 and 3

- - - -

194

-

- - - - - -

194 128

194 128

Guarantees, deposits, investment-related receivables Trade receivables and other operating receivables

- - - - - - - - -

128

1,226

1,226

1,226

Other current assets

359

359

359

Derivative instruments – assets Cash and cash equivalents

Level 2 Level 1

25

- -

25

25

923

923

923

Liabilities and shareholders’ equity Bonds

- - -

- - - -

7,015

7,015

7,229

Bank debt

512

512

512

Finance lease debt

28

28 21

28 21

Derivative instruments – liabilities

Level 2

21

-

The methods used are as follows: debt: the fair value of the debt is determined for each loan by — discounting future cash flows on the basis of market rates at the closing date, adjusted for the Group’s credit risk. For floating-rate bank debt, fair value is approximately equal to the carrying amount; bonds: market liquidity enabled the bonds to be valued at their fair — value using the quoted prices; other long-term financial liabilities: the fair value of other long-term — financial liabilities was calculated for each loan by discounting future cash flows using an interest rate reflecting the Group’s credit risk at the balance sheet date;

derivative instruments: the market value of instruments recognised in — the financial statements at the balance sheet date was calculated on the basis of available market data, using current valuation models. The hierarchical levels for fair value disclosures below are consistent with the definitions in the amended version of IFRS 7 (Financial instruments: disclosures): level 1: fair value based on prices quoted in an active market; — level 2: fair value measured on the basis of observable market data — (other than quoted prices included in level 1); level 3: fair value determined using valuation techniques based on — unobservable market data.

191

2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT