131 AGL Energy Limited Annual Report 2011 The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by  using appropriate valuation techniques and making assumptions that are based on market conditions existing at the end of each reporting  period. The fair value of forward foreign exchange contracts is calculated as the present value of expected future cash flows relating to the  difference between the contract rates and the market forward rates at the end of the reporting period. Interest rate and cross currency  swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from  quoted interest rates. These derivative financial instruments are included in Level 2. In the circumstances where a valuation technique for derivative financial instruments is based on significant unobservable inputs, such  instruments are included in Level 3. The following table provides a reconciliation of fair value movements in Level 3 financial instruments. The total gains or losses for the year included a loss of $37.8 million relating to electricity derivative contracts held at the end of the  reporting period (2010: a loss of $13.3 million). Fair value gains or losses on electricity derivatives are included in the line item ‘cost of sales  – (gain)/loss in fair value of electricity derivatives’ in Note 6. There has not been any other matter or circumstance, other than that referred to in the financial statements or notes thereto, that  has arisen since the end of the financial year, that has significantly affected, or may significantly affect, the operations of the consolidated  entity, the results of those operations, or the state of affairs of the consolidated entity in future financial periods other than: On 20 July 2011, AGL Energy Limited (AGL) announced that it had signed two financing transactions totalling $1.2 billion. The funds will be  used to refinance $886.7 million of existing debt, due for repayment in October 2011, and provide additional funding for the group’s capital  expenditure program. AGL has signed a $1.0 billion Syndicated Loan Facility, comprising of a $600.0 million 3 year term loan tranche and a $400.0 million 5 year  revolving tranche. This new facility was strongly supported by domestic and foreign lenders. To partially fund its 50% interest in the Macarthur Wind Farm, including the purchase of Vestas turbines, AGL has also signed a  $200.0 million loan agreement with EKF, the Danish export credit agency. Amortising over 18-years, the loan matures in 2031. On 25 August 2011, the Directors of AGL resolved to pay a fully franked final dividend of 31.0 cents per share, amounting to $143.0 million.  The record date for the final dividend is 8 September 2011 with payment to be made on 29 September 2011. Shares will commence trading  ex-dividend on 2 September 2011. The AGL Dividend Reinvestment Plan (DRP) will be in operation and shares will be allotted at a 1.5% discount to the simple average of the  daily weighted average market price at which AGL’s ordinary shares are traded on ASX during each of the 10 trading days commencing on  12 September 2011. Final dividend Financing transactions totalling $1.2 billion Note 53 – Subsequent events Energy derivatives 2011 2010 $m $m Opening balance  38.8 39.5 Total gains and losses recognised in profit or loss  (10.5) (3.6) Purchases  2.7 16.5 Settlements  (11.0) (13.6) Transfers in from level 2  (1.8) – Closing balance  18.2 38.8