Financial Instruments Fair Value Risk (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Fair Values of Financial Assets and Financial Liabilities

The Group is exposed to the risks of changes in fair value of its financial assets and liabilities. The following table summarises the fair values and carrying amounts of financial instruments.


	€ million			€ million			€ million			€ million
Fair values of financial assets and financial liabilities	Fair value 2017			Fair value 2016			Carrying amount 2017			Carrying amount 2016
Financial assets
Cash and cash equivalents		3,317			3,382			3,317			3,382
Held-to-maturity investments		163			142			163			142
Loans and receivables		463			398			463			398
Available-for-sale financial assets		564			509			564			509
Financial assets at fair value through profit or loss:
Derivatives		116			91			116			91
Other		139			132			139			132
		4,762			4,654			4,762			4,654
Financial liabilities
Preference shares		-			(125	)		-			(68	)
Bank loans and overdrafts		(995	)		(1,147	)		(992	)		(1,146	)
Bonds and other loans		(23,368	)		(15,844	)		(22,709	)		(15,053	)
Finance lease creditors		(147	)		(165	)		(131	)		(143	)
Derivatives		(421	)		(185	)		(421	)		(185	)
Other financial liabilities		(177	)		-			(177	)		-
		(25,108	)		(17,466	)		(24,430	)		(16,595	)

Summary of Assets and Liabilities Carried at Fair Value, Classification of Fair Value Calculations by Category

For assets and liabilities which are carried at fair value, the classification of fair value calculations by category is summarised below:


			€ million		€ million		€ million			€ million			€ million			€ million			€ million			€ million
	Notes		Level 1 2017		Level 1 2016		Level 2 2017			Level 2 2016			Level 3 2017			Level 3 2016			Total fair value 2017			Total fair value 2016
Assets at fair value
Other cash equivalents		17A		-		-		80			90			-			-			80			90
Available-for-sale financial assets		17A		215		138		7			98			342			273			564			509
Financial assets at fair value through profit or loss:
Derivatives^(a)		16C		-		-		173			226			-			-			173			226
Other		17A		137		-		-			131			2			1			139			132

Liabilities at fair value
Derivatives^(b)		16C		-		-		(534	)		(331	)		-			-			(534	)		(331	)
Contingent consideration		14		-		-		-			-			(445	)		(380	)		(445	)		(380	)

^(a)	Includes €57 million (2016: €135 million) derivatives, reported within trade receivables, that hedge trading activities.

^(b)	Includes €(113) million (2016: €(146) million) derivatives, reported within trade payables, that hedge trading activities.

Summary of Reconciliation of Movements in Level 3 Valuations

Reconciliation of Level 3 fair value measurements of financial assets is given below:


Reconciliation of movements in Level 3 valuations	€ million 2017			€ million 2016
1 January		(106	)		346
Gains and losses recognised in profit and loss		26			94
Gains and losses recognised in other comprehensive income		2			(12	)
Purchases and new issues		(89	)		(247	)
Sales and settlements		(17	)		(187	)
Transfers into Level 3		83			-
Transfers out of Level 3		-			(100	)
31 December		(101	)		(106	)