P23. Contingencies, other contractual obligations and litigation

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

SEK in millions

Dec 31, 2016

Dec 31, 2015

Guarantees on behalf of subsidiaries

11,752

2,556

Guarantees for pension obligations

39

38

Total financial guarantees

11,791

2,595

Some loan covenants agreed limit the scope for divesting or pledging certain assets. For information on change-of-control provisions included in some of Telia Company AB’s more recent bond issuances, see Notes to consolidated financial statements (corresponding section in Note C30).For all financial guarantees issued, stated amounts equal the maximum potential future payments that Telia Company AB could be required to make under the respective guarantee. Guarantees on behalf of subsidiaries include SEK 9,106 million to TeliaSonera UTA Holding B.V. and Sonera Holding B.V. to support the companies financially if they can not meet their payment obligations until March 2018. The guarantee was necessary for the companies to distribute dividends within the Group. Guarantees on behalf of subsidiaries also include SEK 532 million related to Swedish pension obligations and SEK 684 million related to vendor financing. In addition to financial guarantees indicated above, guarantees for fulfillment of contractual undertakings are granted by Telia Company 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.

Collateral pledged

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

SEK in millions

Dec 31, 2016

Dec 31, 2015

Investment bonds pledged under repurchase agreements

559

Total collateral pledged

559

Other unrecognized contractual obligations

As of December 31, 2016, unrecognized contractual obligations regarding future acquisitions (or equivalent) of non-current assets represented the following expected maturities.

Expected maturity
SEK in millions

Jan–Mar 2017

Apr–Jun 2017

Jul–Sep 2017

Oct–Dec 2017

2018

2019

2020

2021

Later years

Total

Other holdings

1

1

1

1

1

5

Total (see Liquidity risk – Note P20)

1

1

1

1

1

5

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

Legal and administrative proceedings

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