26. Derivatives

26. DERIVATIVES
 
Notional amounts of derivatives
     
Includes the gross amount of all notional values for contracts that have not yet been settled or closed. The amount of notional value outstanding is not necessarily a measure or indication of market risk, as the exposure of certain contracts may be offset by other contracts.
     
EUR million 31 Dec 2016 31 Dec 2015
Foreign exchange forward contracts 198.7 294.5
Forward contracts outside hedge accounting 198.7 281.9
Forward contracts within hedge accounting - 12.6
Electricity price futures contracts outside hedge accounting 0.5 0.3
 
Fair values of derivatives
 
The net fair values of derivative financial instruments at the balance sheet date 31 Dec 2016 31 Dec 2015
Foreign exchange forward contracts 1.2 0.3
Electricity price futures contracts 0.1 -0.1
 
Derivatives are used for economic purposes only.
     
Gross positive fair values of derivatives 31 Dec 2016 31 Dec 2015
Foreign exchange forward contracts 2.3 1.6
Forward contracts outside hedge accounting 2.3 1.4
Forward contracts within hedge accounting 1) - 0.2
Electricity price futures contracts outside hedge accounting 0.1 -
     
Gross negative fair values of derivatives 31 Dec 2016 31 Dec 2015
Foreign exchange forward contracts -1.1 -1.3
Forward contracts outside hedge accounting -1.1 -1.3
Forward contracts within hedge accounting 1) - -
Electricity price futures contracts outside hedge accounting - -0.1
     
1) Forward contracts within hedge accounting (net) - 0.2
The amount recognized in equity - 0.2
Net periodic interest rate difference recognized in interest income/expenses - -
     
The last forwards deals related to hedging highly probable forecast transactions denominated in foreign currency realized in April 2016. Gains and losses, recognized in the hedging reserve in equity (see Cash flow hedges below) on foreign exchange forward contracts as at 31 December 2016 amounted to net EUR 0.0 million (EUR 0.2 million in 2015). These are recognized in the income statement in the current period or periods during which the hedged forecast transactions affect the income statement.
 
The efficient portion of cash flow hedges recognized in net sales at 31 December 2016 amounted to a gain of EUR 0.2 million (EUR 0.6 million in 2015) and a loss of EUR 0.0 million (EUR 0.2 million in 2015), including the interest rate difference.
 
There were no gains or losses recognized in other operating income or expenses due to hedge accounting inefficiency as at 31 December 2016 (EUR 0.0 million in 2015).
 
Cash flow hedges
 
EUR million   Hedging reserve
Balance at 1 Jan 2015   -0.3
Fair value gains in year   1.1
Fair value losses in year   -0.5
Tax on fair value gains   0.2
Tax on fair value losses   -0.3
Balance at 31 Dec 2015   0.2
     
Balance at 1 Jan 2016   0.2
Fair value gains in year   -
Fair value losses in year   -0.2
Tax on fair value gains   -
Tax on fair value losses   -
Balance at 31 Dec 2016   -