Note 26. Contingent liabilities and pledged assets
On occasion, Sandvik is party to litigation and administrative proceedings related to its operations, including responsibility for products, the environment, health and safety. However, Sandvik does not deem that any of these ongoing proceedings and processes will significantly affect the Sandvik Group.
Continuing operations
|
Group |
Parent Company |
||
|---|---|---|---|---|
|
|
|
|
|
Contingent liabilities |
2018 |
2019 |
2018 |
2019 |
Bills discounted |
13 |
5 |
— |
— |
Other surety undertakings and contingent liabilities |
2,318 |
1,826 |
10,798 |
4,577 |
Total |
2,331 |
1,831 |
10,798 |
4,577 |
of which for subsidiaries |
|
|
10,700 |
4,570 |
The Parent Company’s surety undertakings and contingent liabilities amounted to 4,577 million SEK (10,798), of which 1 million SEK (6,492) related to the Parent Company’s guarantees for Sandvik Treasury AB’s financial borrowings. The remainder comprised mainly indemnity bonds for commitments of Group companies to their customers and vendors on advances received and various types of performance bonds and guarantees to financial institutions relating to local borrowings, and guarantee facilities as well as to pension commitments.
The Group’s surety undertakings and contingent liabilities amounted to 1,826 million SEK (2,318) and mainly comprised of bank guarantees and ongoing proceedings.
Pledged assets
Pledged assets for own liabilities and provisions.
Group |
2018 |
2019 |
|---|---|---|
Property mortgages |
231 |
234 |
Chattel mortgages |
62 |
— |
Total |
293 |
234 |
No assets of the Parent Company had been pledged in 2019 and 2018.