34.3. Liquidity risk
The solvency and liquidity of the Volkswagen Group are ensured at all times by rolling liquidity planning, a liquidity reserve in the form of cash, confirmed credit lines and the issuance of securities on the international money and capital markets. The volume of confirmed bilateral and syndicated credit lines stood at €19.9 billion as of December 31 2017, of which €3.4 billion was drawn down.
Local cash funds in certain countries (e.g. China, Brazil, Argentina, India and South Africa) are only available to the Group for cross-border transactions subject to exchange controls. There are no significant restrictions over and above these.
The following overview shows the contractual undiscounted cash flows from financial instruments.
(XLS:)
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MATURITY ANALYSIS OF UNDISCOUNTED CASH FLOWS FROM FINANCIAL INSTRUMENTS |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
REMAINING CONTRACTUAL MATURITIES |
|
REMAINING CONTRACTUAL MATURITIES |
|
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€ million |
under one year |
within one to five years |
over five years |
2017 |
under one year |
within one to five years |
over five years |
2016 |
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|
|
|
|
|
|
|
|
|
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Put options and compensation rights granted to noncontrolling interest shareholders |
3,379 |
– |
– |
3,379 |
3,382 |
– |
– |
3,382 |
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Financial liabilities |
83,867 |
69,968 |
16,113 |
169,949 |
90,044 |
60,603 |
10,955 |
161,602 |
||||||||
Trade payables |
23,041 |
5 |
– |
23,046 |
22,788 |
6 |
– |
22,794 |
||||||||
Other financial liabilities |
7,360 |
1,557 |
86 |
9,003 |
6,009 |
1,789 |
83 |
7,880 |
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Derivatives |
72,635 |
47,414 |
332 |
120,381 |
77,294 |
59,007 |
119 |
136,420 |
||||||||
|
190,281 |
118,945 |
16,531 |
325,758 |
199,517 |
121,405 |
11,157 |
332,079 |
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When calculating cash outflows related to put options and compensation rights, it was assumed that shares would be tendered at the earliest possible repayment date.
Derivatives comprise both cash flows from derivative financial instruments with negative fair values and cash flows from derivatives with positive fair values for which gross settlement has been agreed. Derivatives entered into through offsetting transactions are also accounted for as cash outflows. The cash outflows from derivatives for which gross settlement has been agreed are matched in part by cash inflows. These cash inflows are not reported in the maturity analysis. If these cash inflows were also recognized, the cash outflows presented would be substantially lower. This applies in particular also if hedges have been closed with offsetting transactions.
The cash outflows from irrevocable credit commitments are presented in section entitled "Other financial obligations”, classified by contractual maturities.
As of December 31, 2017, the maximum potential liability under financial guarantees amounted to €261 million (previous year: €173 million). Financial guarantees are assumed to be due immediately in all cases.