2020 Annual Financial Report

/ Financial instruments – liabilities

(in millions of euros)	31 décembre 2020	31 décembre 2019
Derivatives qualified as hedging instruments	Derivatives qualified as hedging instruments 31 décembre 2020	Derivatives qualified as hedging instruments 31 décembre 2019
Derivatives hedging current assets and liabilities	Derivatives hedging current assets and liabilities 31 décembre 2020 14	Derivatives hedging current assets and liabilities 31 décembre 2019 12
Derivatives on intercompany loans and borrowings	Derivatives on intercompany loans and borrowings 31 décembre 2020 90	Derivatives on intercompany loans and borrowings 31 décembre 2019 67
Eurobond derivatives	Eurobond derivatives 31 décembre 2020 -	Eurobond derivatives 31 décembre 2019 199
Instruments at amortized cost	Instruments at amortized cost 31 décembre 2020	Instruments at amortized cost 31 décembre 2019
Trade and other payables	Trade and other payables 31 décembre 2020 13,098	Trade and other payables 31 décembre 2019 13,521
Short-term borrowings	Short-term borrowings 31 décembre 2020 856	Short-term borrowings 31 décembre 2019 1,602
Total financial instruments – current liabilities	Total financial instruments – current liabilities 31 décembre 2020 14,058	Total financial instruments – current liabilities 31 décembre 2019 15,401
Instruments at amortized cost	Instruments at amortized cost 31 décembre 2020	Instruments at amortized cost 31 décembre 2019
Long-term borrowings	Long-term borrowings 31 décembre 2020 3,653	Long-term borrowings 31 décembre 2019 4,286
Total financial instruments – non-current liabilities	Total financial instruments – non-current liabilities 31 décembre 2020 3,653	Total financial instruments – non-current liabilities 31 décembre 2019 4,286

Fair value

The carrying amount of financial assets and liabilities recognized at amortized cost approximates fair value, except for financial liabilities, which had a fair value of euro 4,555 million at December 31, 2020 (versus a carrying amount of euro 4,509 million). At December 31, 2019, the fair value of financial liabilities was euro 6,004 million (versus a carrying amount of euro 5,888 million).

The fair value of Eurobonds, bonds with a convertible option on the debt portion, has been calculated by discounting the expected future cash flows at market interest rates (Level 2 fair value).

Fair value hierarchy

The table below breaks down financial instruments recognized at fair value according to the measurement method used. The different levels of fair value have been defined as follows:

level 1: quoted prices in active markets for identical instruments;
level 2: observable data other than quoted prices for identical instruments in active markets;
level 3: significant unobservable data.

December 31, 2020 (in millions of euros)	Level 1	Level 2	Level 3	Total
Short-term liquid investments	Short-term liquid investments Level 1 1,884	Short-term liquid investments Level 2 -	Short-term liquid investments Level 3 -	Short-term liquid investments Total 1,884
Venture Capital Funds and other securities	Venture Capital Funds and other securities Level 1 110	Venture Capital Funds and other securities Level 2 -	Venture Capital Funds and other securities Level 3 11	Venture Capital Funds and other securities Total 121
Derivative instruments – assets	Derivative instruments – assets Level 1 -	Derivative instruments – assets Level 2 118	Derivative instruments – assets Level 3 -	Derivative instruments – assets Total 118
	Level 1 1,994	Level 2 118	Level 3 11	Total 2,123
Derivative instruments – liabilities	Derivative instruments – liabilities Level 1 -	Derivative instruments – liabilities Level 2 (104)	Derivative instruments – liabilities Level 3 -	Derivative instruments – liabilities Total (104)
Total	Total Level 1 1,994	Total Level 2 14	Total Level 3 11	Total Total 2,019

December 31, 2019 (in millions of euros)	Level 1	Level 2	Level 3	Total
Short-term liquid investments	Short-term liquid investments Level 1 2,268	Short-term liquid investments Level 2 -	Short-term liquid investments Level 3 -	Short-term liquid investments Total 2,268
Venture Capital Funds and other securities	Venture Capital Funds and other securities Level 1 87	Venture Capital Funds and other securities Level 2 -	Venture Capital Funds and other securities Level 3 13	Venture Capital Funds and other securities Total 100
Derivative instruments – assets	Derivative instruments – assets Level 1 -	Derivative instruments – assets Level 2 38	Derivative instruments – assets Level 3 -	Derivative instruments – assets Total 38
	Level 1 2,355	Level 2 38	Level 3 13	Total 2,406
Derivative instruments – liabilities	Derivative instruments – liabilities Level 1 -	Derivative instruments – liabilities Level 2 (278)	Derivative instruments – liabilities Level 3 -	Derivative instruments – liabilities Total (278)
Total	Total Level 1 2,355	Total Level 2 (240)	Total Level 3 13	Total Total 2,128

2020 Annual Financial Report

Chapter 6 : 2020 Consolidated financial statements

/ Financial instruments – liabilities

Fair value

Fair value hierarchy