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Risks arising from financial instruments (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Financial Assets And Financial Liabilities

Set out below is an overvi

w of financial assets

and liabilities held by the company as at the dates indicated:


	31 December 2021								31 December 2020
			At fair								At fair
			value		At fair						value		At fair
	At		through		value				At		through		value
	amortized		profit or		through				amortized		profit or		through
Million US dollar	cost		loss		OCI		Total		cost		loss		OCI		Total
Trade and other receivables		4 607		—		—		4 607		4 493		—		—		4 493
Unquoted debt (debt instruments)		22		—		—		22		22		—		—		22
Quoted debt (debt instruments)		—		374		—		374		—		396		—		396
Unquoted companies (equity instruments)		—		—		139		139		—		—		115		115
Derivatives not designated in hedge accounting relationships:
Equity swaps		—		—		—		—		—		27		—		27
Interest rate swaps		—		20		—		20		—		45		—		45
Cross currency interest rate swaps		—		52		—		52		—		7		—		7
Derivatives designated in hedge accounting relationships:
Foreign exchange forward contracts		—		—		238		238		—		—		480		480
Foreign currency futures		—		—		—		—		—		—		36		36
Interest rate swaps		—		—		17		17		—		—		35		35
Cross currency interest rate swaps		—		—		60		60		—		—		100		100
Commodities		—		—		282		282		—		—		235		235

Financial assets		4 629		446		736		5 811		4 515		475		1 001		5 991

Non-current		526		73		115		714		588		79		174		841
Current		4 103		373		621		5 097		3 927		396		827		5 150
Trade and other payables		22 074		—		—		22 074		20 807		—		—		20 807
Interest-bearing loans and borrowings:
Secured bank loans		628		—		—		628		702		—		—		702
Unsecured bank loans		106		—		—		106		294		—		—		294
Unsecured bond issues		85 726		—		—		85 726		93 725		—		—		93 725
Unsecured other loans		40		—		—		40		83		—		—		83
Commercial paper		—		—		—		—		1 522		—		—		1 522
Bank overdrafts		53		—		—		53		5		—		—		5
Lease liabilities		2 277		—		—		2 277		2 234		—		—		2 234
Derivatives not designated in hedge accounting relationships:
Equity swaps		—		5 412		—		5 412		—		5 353		—		5 353
Cross currency interest rate swaps		—		172		—		172		—		446		—		446
Foreign exchange forward contracts		—		26		—		26		—		321		—		321
Derivatives designated in hedge accounting relationships:
Foreign exchange forward contracts		—		—		103		103		—		—		370		370
Foreign currency futures		—		—		37		37		—		—		5		5
Cross currency interest rate swaps		—		—		98		98		—		—		264		264
Commodities		—		—		35		35		—		—		26		26
Equity swaps		—		—		—		—		—		—		21		21
Interest rate swaps		—		—		3		3		—		—		—		—

Financial liabilities		110 904		5 610		276		116 790		119 372		6 120		686		126 178

Non-current		88 182		100		—		88 282		96 748		1 758		—		98 506
Current		22 722		5 510		276		28 508		22 624		4 362		686		27 672

1	Cash and short-term deposits are not included in this overview.

Summary of Notional Amounts of Derivatives Outstanding at Year-end by Maturity Bucket

The table below provides an overview of the notional amounts of derivatives outstanding as at the dates indicated by maturity bucket.


	31 December 2021										31 December 2020
	< 1		1-2		2-3		3-5		> 5		< 1		1-2		2-3		3-5		> 5
Million US dollar	year		years		years		years		years		year		years		years		years		years
Foreign currency
Forward exchange contracts		12 599		29		—		—		—		18 505		290		—		—		—
Foreign currency futures		1 617		—		—		—		—		2 218		—		—		—		—
Interest rate
Interest rate swaps		1 500		1 000		—		—		—		—		1 500		1 000		—		—
Cross currency interest rate swaps		4 614		1 400		1 173		1 573		1 453		513		5 658		1 400		1 866		789
Other interest rate derivatives		—		—		—		—		—		—		—		—		—		—
Commodities
Aluminum swaps		1 241		—		—		—		—		1 184		—		—		—		—
Other commodity derivatives		1 034		—		—		—		—		644				—		—		—
Equity
Equity derivatives		11 469		—		—		—		—		10 234		2 326		—		—		—

Summary of Foreign Exchange Risk on Operating Activities

The second currency of the currency pairs listed is the functional currency of the related subsidiary.


	31 December 2021								31 December 2020
	Total			Total		Open			Total			Total		Open
Million US dollar	exposure			hedges		position			exposure			hedges		position
Euro/Canadian dollar		(6	)		6		—			(9	)		9		—
Euro/Mexican peso		(112	)		111		(1	)		(106	)		102		(4	)
Euro/Pound sterling		(124	)		112		(12	)		(203	)		130		(73	)
Euro/South African rand		(79	)		75		(4	)		(95	)		65		(30	)
Euro/South Korean won		(39	)		36		(3	)		(40	)		38		(2	)
Euro/US dollar		(123	)		100		(23	)		(354	)		284		(70	)
Mexican peso/Euro		(254	)		231		(23	)		(249	)		146		(103	)
Pound sterling/Euro		(14	)		22		8			(35	)		36		1
US dollar/Argentinian peso		(661	)		674		13			(602	)		543		(59	)
US dollar/Bolivian boliviano		(80	)		75		(5	)		(64	)		56		(8	)
US dollar/Brazilian real		(1 846	)		1 618		(228	)		(1 573	)		1 577		4
US dollar/Canadian dollar		(304	)		253		(51	)		(302	)		194		(108	)
US dollar/Chilean peso		(171	)		162		(9	)		(151	)		129		(22	)
US dollar/Chinese yuan		(123	)		116		(7	)		(171	)		201		30
US dollar/Colombian peso		(476	)		434		(42	)		(359	)		352		(7	)
US dollar/Euro		(103	)		96		(7	)		(98	)		96		(2	)
US dollar/Mexican peso		(1 236	)		1 168		(68	)		(1 032	)		995		(37	)
US dollar/Paraguayan guarani		(153	)		139		(14	)		(132	)		125		(7	)
US dollar/Peruvian nuevo sol		(292	)		278		(14	)		(225	)		168		(57	)
US dollar/South African rand		(196	)		148		(48	)		(130	)		116		(14	)
US dollar/South Korean won		(114	)		79		(35	)		(71	)		70		(1	)
US dollar/Uruguayan peso		(42	)		42		—			(40	)		39		(1	)
Others		(323	)		207		(116	)		(260	)		131		(129	)

Summary of Currency Transactional Risk

AB InBev estimated the reasonably possible change of exchange rate, on the basis of the average volatility on the open currency pairs, as follows:


	2021
	Closing rate		Possible		Volatility
	31 December 2021		closing rate 1		of rates in %
Euro/Mexican peso		23.31		21.04 - 25.59		9.75	%
Euro/Pound sterling		0.84		0.80 - 0.88		5.15	%
Euro/South Korean won		1 345.90		1 273.31 - 1 418.48		5.39	%
Euro/US dollar		1.13		1.07 - 1.20		5.58	%
Pound sterling/US dollar		1.35		1.26 - 1.43		6.36	%
US dollar/Argentinian peso		102.75		99.72 - 105.78		2.95	%
US dollar/Brazilian real		5.58		4.68 - 6.48		16.07	%
US dollar/Canadian dollar		1.27		1.19 - 1.35		6.54	%
US dollar/Chinese yuan		6.35		6.06 - 6.64		4.55	%
US dollar/Colombian peso		3 977.14		3 568.65 - 4 385.62		10.27	%
US dollar/Euro		0.88		0.83 - 0.93		5.58	%
US dollar/Mexican peso		20.58		18.38 - 22.79		10.71	%
US dollar/Nigerian naira		424.89		379.56 - 470.22		10.67	%
US dollar/Peruvian nuevo sol		3.98		3.60 - 4.35		9.53	%
US dollar/South African rand		15.95		13.74 - 18.15		13.82	%
US dollar/South Korean won		1 188.32		1 092.29 - 1 284.36		8.08	%
US dollar/Tanzanian shilling		2 305.28		2 236.69 - 2 373.88		2.98	%
US dollar/Zambian kwacha		16.67		13.41 - 19.93		19.58	%


	2020
	Closing rate		Possible		Volatility
	31 December 2020		closing rate 2		of rates in %
Euro/Mexican peso		24.48		19.38 - 29.58		20.83	%
Euro/Pound sterling		0.90		0.82 - 0.98		9.09	%
Euro/South Korean won		1 335.11		1 218.41 - 1 451.81		8.74	%
Euro/US dollar		1.23		1.13 - 1.32		7.75	%
Pound sterling/US dollar		1.36		1.22 - 1.51		10.79	%
US dollar/Argentinian peso		84.14		74.55 - 93.73		11.40	%
US dollar/Brazilian real		5.20		4.13 - 6.26		20.51	%
US dollar/Canadian dollar		1.27		1.17 - 1.38		8.25	%
US dollar/Chinese yuan		6.54		6.25 - 6.82		4.34	%
US dollar/Colombian peso		3 438.52		2 908.55 - 3 968.50		15.41	%
US dollar/Euro		0.81		0.75 - 0.88		7.75	%
US dollar/Mexican peso		19.95		16.19 - 23.71		18.83	%
US dollar/Nigerian naira		397.72		345.23 - 450.21		13.20	%
US dollar/Peruvian nuevo sol		3.62		3.37 - 3.87		6.95	%
US dollar/South African rand		14.69		12.19 - 17.18		16.99	%
US dollar/South Korean won		1 088.02		1 000.21 - 1 175.84		8.07	%
US dollar/Tanzanian shilling		2 321.74		2 205.30 - 2 438.18		5.02	%
US dollar/Zambian kwacha		21.16		18.44 - 23.89		12.89	%

Summary of Foreign Exchange Results Recognized on Unhedged and Hedged Exposures

Foreign exchange results recognized on unhedged and hedged exposures are as follows:


Million US dollar	2021			2020			2019
Economic hedges		717			(181	)		6
Other results - not hedged		(801	)		195			(186	)

		(84	)		14			(180	)

Summary of Effective Interest Rates at Balance Sheet


31 December 2021	Before hedging					After hedging
Interest-bearing financial liabilities	Effective					Effective
Million US dollar	interest rate			Amount		interest rate			Amount
Floating rate
Australian dollar		1.03	%		218		—			—
Canadian dollar		—			—		1.21	%		2 043
Euro		—			1 113		—			1 113
Pound sterling		—			—		1.05	%		1 002
South Korean won		—			—		1.67	%		502
US dollar		1.67	%		463		—			—
Other		7.22	%		516		5.99	%		1 504

					2 310					6 164

Fixed rate
Australian dollar		4.12	%		324		—			—
Brazilian real		7.21	%		420		7.21	%		420
Canadian dollar		4.11	%		626		4.29	%		3 158
Euro		2.27	%		21 654		2.11	%		27 553
Pound sterling		4.35	%		3 611		4.43	%		2 937
South Korean won		3.85	%		32		0.87	%		1 695
US dollar		4.93	%		59 399		5.41	%		46 288
Other		11.42	%		454		8.80	%		615

					86 520					82 666


31 December 2020	Before hedging					After hedging
Interest-bearing financial liabilities	Effective					Effective
Million US dollar	interest rate			Amount		interest rate			Amount
Floating rate
Australian dollar		0.99	%		231		—			—
Brazilian real		3.90	%		164		3.90	%		164
Canadian dollar		—			—		1.23	%		1 895
Euro		0.15	%		2 690		0.15	%		2 690
Pound sterling		—			—		1.10	%		937
US dollar		1.05	%		617		1.13	%		201
Other		7.30	%		260		7.90	%		573

					3 962					6 461

Fixed rate
Australian dollar		3.91	%		846		—			—
Brazilian real		8.58	%		578		8.58	%		578
Canadian dollar		4.12	%		613		4.29	%		2 646
Euro		2.12	%		26 092		2.15	%		35 515
Pound sterling		4.30	%		3 655		4.36	%		2 973
South Korean won		—			—		1.30	%		1 997
US dollar		4.91	%		62 340		5.30	%		47 892
Other		11.96	%		479		11.72	%		502

					94 602					92 103

Summary of Floating Rate Debt after Hedging

The company estimated that the reasonably possible change of the market interest rates applicable to its floating rate debt after hedging is as follows:


	2021
	Interest rate			Possible			Volatility
	31 December 2021 1			interest rate 2			of rates in %
Brazilian real		8.88	%		7.85% - 9.91	%		11.58	%
Euro		—			—			10.64	%
US dollar		0.21	%		0.11% - 0.31	%		48.10	%

	2020
	Interest rate			Possible			Volatility
	31 December 2020 1			interest rate 2			of rates in %
Brazilian real		2.09	%		1.74% - 2.44	%		16.77	%
Euro		—			—			16.83	%
US dollar		0.24	%		0.10% - 0.38	%		58.30	%

Summary of Interest Expense Recognized on Unhedged and Hedged Financial Liabilities

Interest expense recognized on unhedged and hedged financial liabilities are as follows:


Million US dollar	2021			2020			2019
Financial liabilities measured at amortized cost – not hedged		(3 836	)		(4 154	)		(4 264	)
Fair value hedges		(6	)		(1	)		(46	)
Cash flow hedges		17			19			15
Net investment hedges - hedging instruments (interest component)		—			2			2
Economic hedges		141			118			124

		(3 684	)		(4 016	)		(4 168	)

Schedule of Commodity Derivatives Outstanding

The most significant commodity exposures as at 31 December 2021 and 31 December 2020 are included in the table below (expressed in outstanding notional amounts):


Million US dollar	31 December 2021		31 December 2020
Aluminum swaps		1 241		1 184
Exchange traded sugar futures		85		74
Natural gas and energy derivatives		350		202
Corn swaps		292		160
Exchange traded wheat futures		129		83
Rice swaps		85		76
Plastic derivatives		93		50

		2 274		1 828

1	Applicable 3-month InterBank Offered Rates as of 3 1 December 2021 and as of 31 December 2020.

Sensitivity analysis is assessed based on the yearly volatility using daily observable market data during 250 days at 3

December 2021 and at December 2020. For the Brazilian real floating rate debt, the estimated market interest rate is composed of the InterBank Deposit Certificate (‘CDI’) and the Long-Term Interest Rate (‘TJLP’). With regard to other market interest rates, the company’s analysis is based on the 3-month InterBank Offered Rates applicable for the currencies concerned (e.g. EURIBOR 3M, LIBOR 3M). The sensitive analysis does not include any spread applicable to the company’s funding.

Summary of Estimated Impact on Changes in the Price of Commodities

The tables below show the estimated impact that changes in the price of the commodities, for which AB InBev held material derivative exposures as at 31 December 2021 and 31 December 2020, would have on the equity reserves.


	2021
				Pre-tax impact on equity
Million US dollar	Volatility of prices in % 1			Prices increase		Prices decrease
Aluminum		23.09	%		287		(287	)
Sugar		26.39	%		22		(22	)
Energy		25.88	%		91		(91	)
Corn		23.26	%		68		(68	)
Wheat		29.24	%		38		(38	)
Rice		15.96	%		14		(14	)
Plastic		28.68	%		27		(27	)

	2020
				Pre-tax impact on equity
Million US dollar	Volatility of prices in % 2			Prices increase		Prices decrease
Aluminum		14.96	%		177		(177	)
Sugar		31.48	%		23		(23	)
Energy		47.08	%		95		(95	)
Corn		32.84	%		52		(52	)
Wheat		25.30	%		21		(21	)
Rice		46.17	%		35		(35	)
Plastic		26.74	%		13		(13	)

Summary of Carrying Amount of Financial Assets

The carrying am

unt of financial assets represents the maximum credit exposure of the company. The carrying amount is presented net of the impairment losses recognized. The maximum exposure to credit risk at the reporting date was:


	31 December 2021							31 December 2020
Million US dollar	Gross		Impairment			Net carrying amount		Gross		Impairment			Net carrying amount
Investment in unquoted companies		145		(6	)		139		121		(6	)		115
Investment in debt securities		396		—			396		418		—			418
Trade receivables		3 796		(331	)		3 465		3 593		(308	)		3 285
Cash deposits for guarantees		168		—			168		184		—			184
Loans to customers		117		—			117		142		—			142
Other receivables		1 272		(65	)		1 207		1 299		(62	)		1 237
Derivatives		669		—			669		965		—			965
Cash and cash equivalents		12 097		—			12 097		15 252		—			15 252

		18 660		(402	)		18 258		21 974		(376	)		21 598

Summary of Allowance for Impairment

The allowance for impairment recognized during the period per classes of financial assets was as follows:


	2021
Million US dollar	Trade receivables			FVOCI			Other receivables			Total
Balance at 1 January		(308	)		(6	)		(62	)		(376	)

Impairment losses		(34	)		—			(3	)		(37	)
Derecognition		29			—			1			30
Currency translation and other		(18	)		—			(1	)		(19	)

Balance at 31 December		(331	)		(6	)		(65	)		(402	)


	2020
Million US dollar	Trade receivables			FVOCI			Other receivables			Total
Balance at 1 January		(173	)		(6	)		(103	)		(283	)

Impairment losses		(93	)		—			(6	)		(99	)
Derecognition		7			—			42			49
Currency translation and other		(50	)		—			4			(46	)

Balance at 31 December		(308	)		(6	)		(62	)		(376	)


	2019
Million US dollar	Trade receivables			FVOCI			Other receivables			Total
Balance at 1 January		(160	)		(6	)		(106	)		(273	)

Impairment losses		(51	)		—			(30	)		(81	)
Derecognition		26			—			31			57
Currency translation and other		12			—			2			14

Balance at 31 December		(173	)		(6	)		(103	)		(283	)

Summary of Nominal Contractual Maturities of Non-Derivative Financial Liabilities

The following are the nominal contractual maturities of

non-derivative

financial liabilities including interest payments and derivative liabilities:


	31 December 2021
				Contractual			Less												More
	Carrying			cash			than												than
Million US dollar	amount 1			flows			1 year			1-2 years			2-3 years			3-5 years			5 years
Non-derivative financial liabilities
Secured bank loans		(628	)		(636	)		(551	)		(53	)		(5	)		(9	)		(18	)
Unsecured bank loans		(106	)		(106	)		(106	)		—			—			—			—
Unsecured bond issues		(85 726	)		(152 064	)		(3 479	)		(3 596	)		(6 192	)		(13 800	)		(124 997	)
Unsecured other loans		(40	)		(84	)		(11	)		(48	)		(5	)		(4	)		(16	)
Lease liabilities		(2 277	)		(2 429	)		(497	)		(470	)		(337	)		(450	)		(675	)
Bank overdraft		(53	)		(53	)		(53	)		—			—			—			—
Trade and other payables		(26 442	)		(26 643	)		(25 424	)		(314	)		(507	)		(96	)		(302	)

		(115 272	)		(182 015	)		(30 121	)		(4 481	)		(7 046	)		(14 359	)		(126 008	)

Derivative financial liabilities
Foreign exchange derivatives		(166	)		(166	)		(166	)		—			—			—			—
Cross currency interest rate swaps		(273	)		(293	)		(147	)		(35	)		(32	)		(56	)		(23	)
Commodity derivatives		(34	)		(34	)		(34	)		—			—			—			—
Equity derivatives		(5 412	)		(5 420	)		(5 420	)		—			—			—			—

		(5 885	)		(5 913	)		(5 767	)		(35	)		(32	)		(56	)		(23	)

Of which: related to cash flow hedges		(203	)		(203	)		(170	)		—			—			(29	)		(4	)


	31 December 2020
				Contractual			Less												More
	Carrying			cash			than												than
Million US dollar	amount 1			flows			1 year			1-2 years			2-3 years			3-5 years			5 years
Non-derivative financial liabilities
Secured bank loans		(702	)		(735	)		(675	)		(14	)		(12	)		(10	)		(24	)
Commercial papers		(1 522	)		(1 522	)		(1 522	)		—			—			—			—
Unsecured bank loans		(294	)		(299	)		(299	)		—			—			—			—
Unsecured bond issues		(93 725	)		(165 812	)		(3 582	)		(4 057	)		(3 823	)		(16 557	)		(137 793	)
Unsecured other loans		(83	)		(115	)		(13	)		(8	)		(6	)		(57	)		(31	)
Lease liabilities		(2 234	)		(2 455	)		(460	)		(425	)		(315	)		(424	)		(831	)
Bank overdraft		(5	)		(5	)		(5	)		—			—			—			—
Trade and other payables		(24 496	)		(24 688	)		(22 906	)		(1 103	)		(135	)		(197	)		(347	)

		(123 061	)		(195 631	)		(29 462	)		(5 607	)		(4 291	)		(17 245	)		(139 026	)

Derivative financial liabilities
Foreign exchange derivatives		(696	)		(696	)		(696	)		—			—			—			—
Cross currency interest rate swaps		(709	)		(852	)		(8	)		(575	)		(98	)		(132	)		(39	)
Commodity derivatives		(26	)		(26	)		(26	)		—			—			—			—
Equity derivatives		(5 373	)		(5 372	)		(4 455	)		(917	)		—			—			—

		(6 803	)		(6 946	)		(5 184	)		(1 492	)		(98	)		(132	)		(39	)

Of which: related to cash flow hedges		(418	)		(418	)		(353	)		—			—			(65	)		—

1	“Carrying amount” refers to net book value as recognized in the balance sheet at each reporting date.

Summary for Each Type of Derivative Fair Value Recognized as Assets and Lliabilities

The following table summarizes for each type of derivative the fair values recognized as assets or liabilities in the balance sheet:


	Assets				Liabilities						Net
	31 December		31 December		31 December			31 December			31 December			31 December
Million US dollar	2021		2020		2021			2020			2021			2020
Foreign currency
Forward exchange contracts		238		480		(129	)		(691	)		109			(211	)
Foreign currency futures		—		36		(37	)		(5	)		(37	)		31
Interest rate
Interest rate swaps		38		80		—			—			38			80
Cross currency interest rate swaps		111		107		(273	)		(709	)		(162	)		(602	)
Commodities
Aluminum swaps		178		170		(20	)		(10	)		158			160
Sugar futures		13		10		—			—			13			10
Energy		29		9		(2	)		(7	)		27			2
Other commodity derivatives		62		46		(13	)		(8	)		50			37
Equity
Equity derivatives		—		27		(5 412	)		(5 373	)		(5 412	)		(5 346	)

		669		965		(5 886	)		(6 804	)		(5 216	)		(5 839	)

Of which:
Non-current		48		138		(100	)		(1 759	)		(52	)		(1 621	)
Current		621		827		(5 786	)		(5 046	)		(5 164	)		(4 218	)

Summary of Carrying Amount of Fixed Rate Interest-Bearing Financial Liabilities and Fair Value

The following table summarizes the carrying amount and the fair value of the fixed rate interest-bearing financial liabilities as recognized on the balance sheet. Floating rate interest-bearing financial liabilities, trade and other receivables and trade and other payables, including derivatives financial instruments, have been excluded from the analysis as their carrying amount is a reasonable approximation of their fair value:


Interest-bearing financial liabilities	31 December 2021						31 December 2020
Million US dollar	Carrying amount 1			Fair value			Carrying amount 1			Fair value
Fixed rate
Australian dollar		(324	)		(366	)		(846	)		(964	)
Brazilian real		(420	)		(419	)		(578	)		(578	)
Canadian dollar		(626	)		(605	)		(613	)		(633	)
Euro		(21 654	)		(23 801	)		(26 092	)		(29 809	)
Pound sterling		(3 611	)		(3 913	)		(3 655	)		(4 301	)
US dollar		(59 399	)		(75 261	)		(62 340	)		(81 771	)
Other		(486	)		(471	)		(479	)		(480	)

		(86 520	)		(104 836	)		(94 602	)		(118 536	)

1	“Carrying amount” refers to net book value as recognized in the balance sheet at each reporting date.

Analysis of Financial Instruments

The table sets out the fair value hierarchy based on the degree to which significant market inputs are observable:


Fair value hierarchy 31 December 2021	Quoted (unadjusted)		Observable market		Unobservable market
Million US dollar	prices - level 1		inputs - level 2		inputs - level 3
Financial Assets
Held for trading (non-derivatives)		—		9		—
Derivatives at fair value through profit and loss		—		155		—
Derivatives in a cash flow hedge relationship		58		352		—
Derivatives in a fair value hedge relationship		—		17		—
Derivatives in a net investment hedge relationship		—		87		—

		58		620		—

Financial Liabilities
Deferred consideration on acquisitions at fair value		—		—		832
Derivatives at fair value through profit and loss		—		5 611		—
Derivatives in a cash flow hedge relationship		52		141		—
Derivatives in a net investment hedge relationship		—		82		—

		52		5 834		832


Fair value hierarchy 31 December 2020	Quoted (unadjusted)		Observable market		Unobservable market
Million US dollar	prices - level 1		inputs - level 2		inputs - level 3
Financial Assets
Held for trading (non-derivatives)		—		11		—
Derivatives at fair value through profit and loss		—		457		—
Derivatives in a cash flow hedge relationship		29		343		—
Derivatives in a fair value hedge relationship		—		80		—
Derivatives in a net investment hedge relationship		—		57		—

		29		948		—

Financial Liabilities
Deferred consideration on acquisitions at fair value		—		—		1 251
Derivatives at fair value through profit and loss		—		6 119		—
Derivatives in a cash flow hedge relationship		46		353		—
Derivatives in a net investment hedge relationship		—		287		—

		46		6 759		1 251

Summary of Hedging Reserve and Hedging Instruments

The company’s hedging reserves disclosed in Note 22 relate to the following instruments:


Million US dollar	Foreign currency			Commodities			Others			Total hedging reserves
As per 1 January 2021		20			274			84			376

Change in fair value of hedging instrument recognized in OCI		766			123			—			888
Reclassified to profit or loss / cost of inventory		(107	)		(703	)		27			(783	)

As per 31 December 2021		679			(306	)		111			481


Million US dollar	Foreign currency			Commodities			Others			Total hedging reserves
As per 1 January 2020		174			117			107			397

Change in fair value of hedging instrument recognized in OCI		353			31			—			384
Reclassified to profit or loss / cost of inventory		(507	)		126			(23	)		(404	)

As per 31 December 2020		20			274			84			376

Summary of Offsetting Financial Assets and Liabilities

The following financial assets and liabilities are subject to offsetting, enforceable master netting agreements and similar agreements:


	31 December 2021
Million US dollar	Gross amount			Net amount recognized in the statement of financial position 1			Other offsetting agreements 2			Total net amount
Derivative assets		670			670			(651	)		19
Derivative liabilities		(5 886	)		(5 886	)		651			(5 235	)

	31 December 2020
Million US dollar	Gross amount			Net amount recognized in the statement of financial position 1			Other offsetting agreements 2			Total net amount
Derivative assets		965			965			(954	)		11
Derivative liabilities		(6 804	)		(6 804	)		954			(5 851	)