Due to the market situation in 2014, negative interest rates had been precluded for the sensi- tivity analysis. The interest payments from the hedged items and the hedging instruments (cash flow hedge) are presented separately. Effect on profit or loss Change in other comprehensive income plus 50 basis points minus 50 basis points plus 50 basis points minus 50 basis points Derivatives Dec. 31, 2014 218 (218) 432 (168) Dec. 31, 2015 218 (218) 214 (217) Other financial instruments Dec. 31, 2014 (418) 418 765 (50) Dec. 31, 2015 (418) 418 45 (45) Total Dec. 31, 2014 (200) 200 1,197 (218) Dec. 31, 2015 (200) 200 259 (262) Hedging ALTANA has established policies and procedures for assessing risks related to derivative financial instruments activities and uses derivative financial instruments exclusively for hedg- ing purposes. Forward Foreign Exchange Contracts: The Company uses forward foreign exchange contracts to hedge foreign currency exchange risks resulting from expected transactions of subsid- iaries. Hedging instruments with terms of up to 18 months are used to hedge U.S. Dollar and Japanese Yen sales transactions of subsidiaries. In accordance with the hedging strategy of the Company, 75 % of the forecast transactions of the first six months, 60 % of the second six months, and 30 % of the last six months of the forecast transactions are hedged. Fore- cast transactions are only hedged to the extent that the risk related to the transaction is not neutralized by offsetting items. The volume of the hedged transactions as described above is reduced when the occurrence of the transactions is not highly probable. Currently, the maturity dates of these contracts are less than two years. Furthermore, forward foreign exchange contracts are used to hedge the foreign exchange risk attached to intercompany loans denominated in foreign currencies. Interest Rate Swaps: The Company uses interest rate swaps to limit the cash flow risk from interest rate fluctuations of the variable interest rate tranche of the promissory note loan (German Schuldschein) taken up in 2012. Cash Flow Hedges Hedging of Anticipated Sales Denominated in Foreign Currencies: ALTANA has entered into forward foreign exchange contracts for forecast sales transactions denominated in U.S. Dollar and Japanese Yen for its subsidiaries and has designated them as cash flow hedges. At December 31, 2015 and 2014, the fair values are as follows: 132 Notes to Consolidated Financial Statements
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