ARAUCO & CONSTITUTION PULP INC | CIK:0001004156 |

Arauco's financial instruments as of December 31, 2017 and December 31, 2016, are displayed in the table below. Regarding those instruments valued at an amortized cost, as estimation of their fair value is displayed for informational purposes.

 

Financial Instruments		December 2017						December 2016
Thousands of dollars		Carrying amount			Fair Value			Carrying amount			Fair Value
Fair value through profit or loss (held for trading) (1)			74,849			74,849			198,582			198,582
Derivatives			1,679			1,679			3,166			3,166
Mutual funds (2)			73,170			73,170			195,416			195,416
Loans and Accounts Receivables			1,351,712			1,351,712			1,126,182			1,126,182
Cash and cash equivalents (amortized cost)			516,716			516,716			396,837			396,837
Cash			209,185			209,185			149,446			149,446
Time deposits			292,105			292,105			247,391			247,391
Agreements			15,426			15,426			-			-
Accounts Receivable (net)			830,452			830,452			715,883			715,883
Trade and other receivables			709,983			709,983			600,589			600,589
Lease receivable			13,106			13,106			764			764
Other receivables			107,363			107,363			114,530			114,530
Accounts receivable due from related parties			4,544			4,544			13,462			13,462
Other Financial Assets (5)			58,425			58,425			10,903			10,903
Financial liabilities at amortized cost (3)			5,002,072			5,198,654			5,022,725			5,158,789
Bonds issued denominated in U.S. Dollars			2,057,746			2,135,893			2,321,980			2,480,063
Bonds issued denominated in U.F. (4)			1,244,939			1,333,087			1,130,679			1,078,934
Bank Loans in U.S. Dollars			835,099			870,399			891,338			926,070
Bank borrowing denominated in U.S. Dollars			23,358			23,358			23,020			23,020
Financial leasing			112,376			107,363			113,986			108,980
Trade and other payables			717,346			717,346			537,891			537,891
Accounts payable to related parties			11,208			11,208			3,831			3,831
Financial liabilities at fair value through profit or loss			137			137			336			336
Forward			137			137			336			336
Hedging Liabilities			5,256			5,256			87,027			87,027

 

(1)       Assets measured at fair value through profit or loss other than mutual funds classified as cash equivalents, are presented in the line item “other financial assets” in the consolidated statements of financial position.

(2)       Although mutual funds are measured at fair value through profit or loss for purposes of the consolidated statements of financial position mutual funds are classified as “Cash and cash equivalents” due to the are highly liquid short-term investment.

(3)       Financial liabilities measured at amortized cost, other than “Trade and other payables” and derivatives are presented in the consolidated statements of financial position in the line item “Other financial liabilities” as current and non-current based on their maturity.

(4)       The Unidad de Fomento (“U.F.”) is a unit of account that is linked to, and is adjusted daily to reflect changes in the Chilean consumer price index.

(5)       Includes guarantee fund for derivatives which correspond to the collateral under swap agreements.