NOTE 18 - FINANCIAL INSTRUMENTS

18.1 Financial assets and liabilities by categories


	At June 30, 2018									At December 31, 2017
(in millions of Euros)	Notes	At amortized cost		At Fair Value through Profit and loss		At Fair Value through OCI		Total		Loan and receivables		At Fair Value through Profit and loss		At Fair Value through OCI		Total
Cash and cash equivalents	10		166		—		—		166		269		—		—		269
Trade receivables	11		—		—		526		526		306		—		—		306
Finance lease receivables	11		9		—		—		9		12		—		—		12
Other financial assets			76		37		7		120		83		77		19		179

Total financial assets			251		37		533		821		670		77		19		766


	At June 30, 2018									At December 31, 2017
(in millions of Euros)	Notes	At amortized cost		At Fair Value through Profit and loss		At Fair Value through OCI		Total		At amortized cost		At Fair Value through Profit and loss		At Fair Value through OCI		Total
Trade payables and fixed assets payables	16		863		—		—		863		744		—		—		744
Borrowings	17		2,184		—		—		2,184		2,127		—		—		2,127
Other financial liabilities			—		56		1		57		—		66		—		66

Total financial liabilities			3,047		56		1		3,104		2,871		66		—		2,937

The table below details other financial assets and other financial liabilities positions:


	At June 30, 2018						At December 31, 2017
(in millions of Euros)	Non-current		Current		Total		Non-current		Current		Total
Derivatives		11		33		44		29		67		96
Aluminium and premium future contract		3		13		16		6		39		45
Energy future contract		—		—		—		—		—		—
Other future contract		—		—		—		—		1		1
Currency commercial contracts		7		18		25		21		20		41
Currency net debt derivatives		1		2		3		2		7		9
Loans ^(A)		74		2		76		81		2		83

Other financial assets		85		35		120		110		69		179

Derivatives		29		28		57		43		23		66
Aluminium and premium future contract		3		12		15		—		6		6
Energy future contract		—		—		—		—		—		—
Other future contract		3		2		5		—		1		1
Currency commercial contracts		4		10		14		6		12		18
Currency net debt derivatives		19		4		23		37		4		41

Other financial liabilities		29		28		57		43		23		66

(A)	Corresponds to a loan facility to Constellium-UACJ ABS LLC (See NOTE 15 – Investments accounted for under the equity method).

18.2 Fair values

All derivatives are presented at fair value in the Unaudited Interim Consolidated Statement of Financial Position.

The carrying value of the Group’s borrowings at maturity is the redemption value.

The fair value of Constellium N.V. Senior Notes issued in May 2014, February 2017 and November 2017 account for 99%, 101% and 97% respectively of the nominal value and amount to €639 million, €562 million and €804 million respectively at June 30, 2018. The fair value was classified as a level 1 measurement under the fair value hierarchy provided by IFRS 13.

The fair values of other financial assets and liabilities approximate their carrying values, as a result of their liquidity or short maturity except for the loan facility to Constellium-UACJ ABS LLC (See NOTE 15 – Investments accounted for under the equity method).

18.3 Valuation hierarchy

The following table provides an analysis of derivatives measured at fair value, grouped into levels based on the degree to which the fair value is observable:

•

Level 1 valuation is based on quoted price (unadjusted) in active markets for identical financial instruments, it includes aluminium futures that are traded on the LME;

•

Level 2 valuation is based on inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. prices) or indirectly (i.e. derived from prices), it includes foreign exchange derivatives;

•

Level 3 valuation is based on inputs for the asset or liability that are not based on observable market data (unobservable inputs).


	At June 30, 2018								At December 31, 2017
(in millions of Euros)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Other financial assets - derivatives		14		30		—		44		46		50		—		96
Other financial liabilities - derivatives		18		39		—		57		6		60		—		66

There was no transfer into or out of any Level 1, level 2 nor Level 3 during the six months ended June 30, 2018 and the year ended December 31, 2017.