11. Financial Instruments

In the first half of 2016, gains of € 36 thousand (previous year: € 87 thousand) were recognised in the income statement on financial assets and/or liabilities held at fair value through profit and loss. These primarily relate to interest rate hedges with no effective hedging relationship as per IAS 39.

In the reporting period, changes of € 118 thousand (previous year: € 127 thousand) in the fair value of financial instruments designated as hedging instruments (interest rate swaps) were recognised directly in equity.

The interest rate swaps disclosed covered a total amount of € 979 thousand (previous year: € 10,265 thousand). Of these, financial instruments covering an amount of € 64 thousand (previous year: € 6,604 thousand) with a market value of € - 1 thousand (previous year: € - 237 thousand) were held as part of cash flow hedging relationships to hedge future cash flows from interest-bearing liabilities as of the balance sheet date. The hedged cash flows are expected to occur within four months. The amount covered by interest rate swaps is restated in line with the anticipated repayment of the loans over the term of the derivative. The fixed interest rate for the financial liabilities (interest rate swaps) is 3.95 % to 4.33 %. The remaining term of the derivatives is up to four months.

There are no material differences between the carrying amounts and fair values of the financial instruments reported under non-current financial liabilities. The discount rates used for liabilities to related parties (particularly the finance lease liabilities included in this item) are 4.21 % and 4.22 %.

The valuation methods and key unobservable input factors for calculating fair value are described in the Notes to the Consolidated Financial Statements as of 31 December 2015.

The tables below show the carrying amounts and fair values of financial assets and financial liabilities, as well as their classification in the fair value hierarchy.