G27 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 Group.
Contingent liabilities |
2020 |
2021 |
|---|---|---|
Guarantees issued for customers and others |
1,281 |
1,410 |
Other contingencies |
462 |
409 |
Total |
1,743 |
1,819 |
The Group’s contingent liabilities amounted to SEK 1,819 million (1,743) and were mainly comprised of guarantees for customers and others as well as ongoing procedures. Banks and financial institutions have guaranteed obligations arising in the normal course of business on behalf of Group companies.
The table provides data for the maximum potential payments of third party guarantees and does not reflect management’s expected outcomes.
Pledged assets
Pledged assets for own liabilities and provisions.
Pledged assets |
2020 |
2021 |
|---|---|---|
Property mortgages |
225 |
230 |
Total |
225 |
230 |
Accounting principles
Contingent liabilities
A contingent liability is recognized when there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events.
A contingent liability is also recognized when there is a present obligation that cannot be recognized as a liability or provision because it is not probable that an outflow of resources will be required, alternatively because the amount of the obligation cannot be measured with sufficient reliability.