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

2017

2018

2017

2018

Bills discounted

7

6

Other surety undertakings and contingent liabilities

351

377

10,705

10,798

Total

359

383

10,705

10,798

of which for subsidiaries

10,659

10,700

The Parent Company’s surety undertakings and contingent liabilities amounted to 10,798 million SEK (10,705), of which 6,492 million SEK (6,367) 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 383 million SEK (359) and mainly comprised pension guarantees and ongoing proceedings.

Pledged assets

Pledged assets for own liabilities and provisions.

Group

2017

2018

Property mortgages

221

231

Chattel mortgages

60

62

Total

281

293

No assets of the Parent Company had been pledged in 2018 and 2017.