P23. Contingencies, other contractual obligations and litigation

Contingent assets and financial guarantees

As of the end of the reporting period, TeliaSonera AB had no contingent assets, while financial guarantees reported as contingent liabilities were distributed as follows.

SEK in millions

Dec 31, 2015

Dec 31, 2014

Guarantees on behalf of subsidiaries

2,556

3,158

Guarantees for pension obligations

38

38

Total financial guarantees

2,595

3,196

Some loan covenants agreed limit the scope for divesting or pledging certain assets. For information on change-of-control provisions included in some of TeliaSonera AB’s more recent bond issuances, see Notes to consolidated financial statements (corresponding section in Note C29).

For all financial guarantees issued, stated amounts equal the maximum potential future payments that TeliaSonera AB could be required to make under the respective guarantee.

Guarantees on behalf of subsidiaries include SEK 579 million (EUR 63 million) related to Xfera Móviles S.A., of which counter guarantees of SEK 419 million (EUR 46 million) as TeliaSonera’s share on behalf of Xfera’s performance requirements in relation to its telecom and frequency licenses. Guarantees on behalf of subsidiaries also include SEK 499 million related to Swedish pension obligations. In addition to financial 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 end of the reporting period, there was no indication that payment will be required in connection with any such contractual guarantee.

On December 29, 2015, TeliaSonera received payment of the last tranche of the deferred consideration from AF Telecom Holding (AFT) agreed in relation to the transaction regarding shares in MegaFon in 2012, in the amount of SEK 2,659 million. Subsequent to this payment, TeliaSonera has no outstanding receivables from AFT. The pledged shares and bank accounts were released in February 2016.

Collateral pledged

As of the end of the reporting period, collateral pledged was distributed as follows.

SEK in millions

Dec 31, 2015

Dec 31, 2014

For commitments under a shareholders’ agreement: Shares in 4T Sverige AB and Strex AS

58

Total collateral pledged

58

Other unrecognized contractual obligations

As of December 31, 2015, unrecognized contractual obligations regarding future acquisitions (or equivalent) of non-current assets represented the following expected maturities.

Expected maturity
SEK in millions

Jan–Mar 2016

Apr–Jun 2016

Jul–Sep 2016

Oct–Dec 2016

2017

2018

2019

2020

Later years

Total

Other holdings

1

1

1

1

3

7

Total (see Liquidity risk – Note P20)

1

1

1

1

3

7

Reported obligations refer to licenses for and adaption of business support systems.

Legal and administrative proceedings

For additional information relevant to TeliaSonera AB, see Notes to consolidated financial statements (corresponding section in Note C29).

© TeliaSonera 2015
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