Contingent assets, guarantees and collateral pledged
As of the balance sheet date, TeliaSonera AB had no contingent assets, while guarantees reported as contingent liabilities and collateral pledged were distributed as follows.
|
|
December 31, | |
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Guarantees |
|
|
| Guarantees on behalf of subsidiaries | 3,336 | 2,686 |
| Credit guarantee on behalf of Svenska UMTS-nät AB | 2,021 | 1,838 |
| Other credit and performance guarantees, etc. | – | 13 |
| Guarantees for pension obligations | 132 | 132 |
| Total guarantees | 5,489 | 4,669 |
| Collateral pledged | – | 1 |
Some loan covenants agreed limit the scope for divesting or pledging certain assets. For information on change-of-control provisions in some of TeliaSonera AB's more recent financing arrangements, see “Notes to Consolidated Financial Statements” (corresponding section in Note 30).
For all guarantees, except the credit guarantee on behalf of TeliaSonera AB's indirectly 50 percent owned joint venture Svenska UMTS-nät AB, stated amounts equal the maximum potential amount of future payments that TeliaSonera AB could be required to make under the respective guarantee. For information on the guarantee on behalf of Svenska UMTS-nät, see “Notes to Consolidated Financial Statements” (corresponding section in Note 30).
Guarantees on behalf of subsidiaries include SEK 2,030 million (EUR 178 million) related to Xfera Móviles S.A., comprising a counter guarantee of EUR 135 million as TeliaSonera's share on behalf of Xfera's performance requirements in relation to its UMTS license and a counter guarantee of EUR 43 million as TeliaSonera's share to cover payment to a former Xfera shareholder, should the outcome of a legal dispute concerning Xfera's spectrum fee for 2001 be favourable. Guarantees on behalf of subsidiaries also include SEK 646 million related to Swedish pension obligations and SEK 314 million related to the Danish 3G license.
In addition to guarantees indicated above, guarantees for fulfillment of contractual undertakings are granted by TeliaSonera AB on behalf of subsidiaries, as part of the Group's normal course of business. At the balance sheet date, there was no indication that payment will be required in connection with any such contractual guarantee.
Other unrecognized contractual obligations
As of December 31, 2008, unrecognized contractual obligations regarding future acquisitions (or equivalent) of non-current assets represented the following expected maturities.
|
Expected maturity SEK in millions |
2009 | Later years | Total |
|---|---|---|---|
| Other intangible assets | 31 | – | 31 |
| Property, plant and equipment | 240 | – | 240 |
| Total | 271 | – | 271 |
Obligations with respect to property, plant and equipment refer to the continued expansion of transmission capacity in the Swedish fixed network.
Legal and administrative proceedings
For additional information relevant to TeliaSonera AB, see “Notes to Consolidated Financial Statements” (corresponding section in Note 30).