13. Derivative FinanCIAL INSTRUMENTS ANd Hedging RESERVES

At the balance sheet date, the fair value of derivative financial instruments was as follows:

The carrying amount (contract value) of the outstanding forward-currency and raw-material contracts as at December 31, 2015, is CHF 1,531.2 million (CHF 1,403.3 million in 2014). The majority of gains and losses recognized in the hedging reserve, as shown in the Consolidated Statement of Changes in Equity amounting to a net gain of CHF 19.5 million as of December 31, 2015 (net gains of CHF 8.8 million in 2014), will be released to material expenses in the income statement at various dates within the next 24 months. Other derivative instruments which have been executed in accordance with the risk policy and do not qualify for hedge accounting under the criteria of IAS 39 as well as the ineffective portion of designated derivative instruments, have been recognized immediately in the income statement.