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Financial instruments | 9 Months Ended
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Sep. 30, 2019
Financial Instruments [Abstract] |
Financial instruments | Financial instruments The following table shows the carrying amount of each Statement of Financial Position class split into the relevant category of financial instrument as defined in IFRS 9 “Financial Instruments”.
| Financial assets at amortized cost |  | Financial Assets at Fair Value through profit or loss |  | Derivatives at fair value through profit or loss |  | Derivatives used for hedging |  | Financial liabilities at amortized cost |  | Total
September 30, 2019 | €m |  | €m |  | €m |  | €m |  | €m |  | €m
Assets |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments | — |  |  | — |  |  | 2.8 |  |  | 46.8 |  |  | — |  |  | 49.6 |
Trade receivables | 77.7 |  |  | 6.5 |  |  | — |  |  | — |  |  | — |  |  | 84.2 |
Cash and cash equivalents | 646.1 |  |  | 75.4 |  |  | — |  |  | — |  |  | — |  |  | 721.5 |
Short-term investments | — |  |  | 25.0 |  |  | — |  |  | — |  |  | — |  |  | 25.0 |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments | — |  |  | — |  |  | — |  |  | (22.3 | ) |  | — |  |  | (22.3 | )
Trade and other payables excluding non-financial liabilities | — |  |  | — |  |  | — |  |  | — |  |  | (453.1 | ) |  | (453.1 | )
Loans and borrowings | — |  |  | — |  |  | — |  |  | — |  |  | (1,906.4 | ) |  | (1,906.4 | )
Total | 723.8 |  |  | 106.9 |  |  | 2.8 |  |  | 24.5 |  |  | (2,359.5 | ) |  | (1,501.5 | )
Trade receivables disclosed in the table above are net of contract liabilities related to discounts and trade marketing expenses of €191.5 million. Following the adoption of IFRS 16 Leases on January 1, 2019, loans and borrowings now includes €110.5 million relating to lease liabilities. The Company entered into facilities with third-party banks in which the Company may sell qualifying trade debtors on a non-recourse basis. Under the terms of the agreements, the Company has transferred substantially all the credit risks and control of the receivables, which are subject to this agreement, and accordingly €43.5 million (December 31, 2018: €51.0 million) of trade receivables has been derecognized at the period end. Loans and borrowings are stated gross of capitalized deferred borrowing costs.
| Financial assets at amortized cost |  | Financial Assets at Fair Value through profit or loss |  | Derivatives at fair value through profit or loss |  | Derivatives used for hedging |  | Financial liabilities at amortized cost |  | Total
December 31, 2018 | €m |  | €m |  | €m |  | €m |  | €m |  | €m
Assets |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments | — |  |  | — |  |  | 4.6 |  |  | 44.5 |  |  | — |  |  | 49.1 |
Trade receivables | 98.3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 98.3 |
Cash and cash equivalents | 297.0 |  |  | 30.6 |  |  | — |  |  | — |  |  | — |  |  | 327.6 |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments | — |  |  | — |  |  | (0.3 | ) |  | (36.6 | ) |  | — |  |  | (36.9 | )
Trade and other payables excluding non-financial liabilities | — |  |  | — |  |  | — |  |  | — |  |  | (534.9 | ) |  | (534.9 | )
Loans and borrowings | — |  |  | — |  |  | — |  |  | — |  |  | (1,775.2 | ) |  | (1,775.2 | )
Total | 395.3 |  |  | 30.6 |  |  | 4.3 |  |  | 7.9 |  |  | (2,310.1 | ) |  | (1,872.0 | )
Trade receivables disclosed in the table above are net of contract liabilities related to discounts and trade marketing expenses of €165.1 million. Loans and borrowings are stated gross of capitalized deferred borrowing costs. The Company has determined that the carrying amount of trade receivables, trade payables and cash and cash equivalents are a reasonable approximation of fair value. Derivative financial instruments The financial instruments are not traded in an active market and so the fair value of these instruments is determined from the implied forward rate. The valuation technique utilized by the Company maximizes the use of observable market data where it is available. All significant inputs required to fair value the instrument are observable. The Company has classified its derivative financial instruments as level 2 instruments as defined in IFRS 13 “Fair value measurement”. Cross currency interest rate swaps are managed based on their net exposure to credit risks. The Company has used the exception in IFRS 13 to allow this group of derivatives to be measured on a net basis by each counterpart. Short-term investments The Company invests surplus cash positions in short-term investments to manage liquidity and credit risk. Gains or losses on the investments are recognized through profit or loss. Short-term investments are managed investment funds with liquidity of up to 90 days and are invested in a fund whose underlying securities are supply chain receivables from a range of corporate organizations. Short‐term investments are held within investment funds measured at fair value. Short-term investments are valued using inputs that are derived principally from or corroborated by observable market data. The Company has classified these as level 2 instruments as defined in IFRS 13 “Fair value measurement”. Interest bearing loans and borrowings The fair value of the Senior Secured Notes is determined by reference to price quotations in the active market in which they are traded. They are classified as level 1 instruments. The fair value of the senior loans is calculated by discounting the expected future cash flows at the period’s prevailing interest rates. They are classified as level 2 instruments. The Company has outstanding Senior Loans of €553.2 million and $935.6 million (€856.6 million) respectively (the “Loans”). Loans are repayable on May 15, 2024. The Senior USD Loan requires a repayment of $9.6 million (€8.8 million) in May each year until maturity. As part of the Senior Loan structure, the Group is additionally required to undertake an annual excess cashflow calculation. As a result of this, €12.1 million was repaid in April 2019. An €80.0 million Revolving Credit Facility is available until May 15, 2023 and is utilized also to support the issuance of letters of credit and bank guarantees. The Company uses cross currency interest rate swaps to convert $935.6 million of Senior USD Loans into €845.1 million of EUR denominated debt with a fixed rate of interest, designated as a cash flow hedge. Additional cross currency interest rate swaps have been entered into that receive €309.7 million with fixed interest flows and pays £260.7 million with fixed interest flows. £222.4 million of these swaps have been designated as a net investment hedge of the Company's investments in Pound Sterling. Hedging instruments mirror the annual amortization payments made under the loans and are adjusted for repayments made under the annual excess cashflow calculation. Nomad Foods BondCo Plc has €400.0 million of 3.25% Senior Secured notes due May 15, 2024 (the “Notes”). Interest on the Notes is payable semi-annually in arrears on May 15 and November 15. The Senior Loans, Senior Secured Notes and any drawn balances of the Revolving Credit Facility are secured with equal ranking against assets of the Company and specified subsidiaries.
| Fair value |  | Carrying value
| September 30, 2019 |  | December 31, 2018 |  | September 30, 2019 |  | December 31, 2018
| €m |  | €m |  | €m |  | €m
Senior EUR/USD loans | 1,414.2 |  |  | 1,347.2 |  |  | 1,392.6 |  |  | 1,372.2 |
Other external debt | 3.2 |  |  | 3.0 |  |  | 3.2 |  |  | 3.0 |
2024 fixed rate senior secured notes | 413.6 |  |  | 395.2 |  |  | 400.0 |  |  | 400.0 |
Less deferred borrowing costs | — |  |  | — |  |  | (9.4 | ) |  | (10.9 | )
| 1,831.0 |  |  | 1,745.4 |  |  | 1,786.4 |  |  | 1,764.3 |

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- Definition The entire disclosure for financial instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2018-01-01 -Section Scope -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=7&date=2018-03-01&anchor=sect_Scope&doctype=Standard -URIDate 2018-03-16 + Details
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- Definition Financial Instruments [Abstract] + References No definition available. + Details
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