Review of 2010 – USD version - Skanska

Note
33
Assets pledged
Assets pledged, contingent liabilities and contingent
assets
2010 2009
Mortgages, current-asset properties 5.0 1.5
Shares and participations 71.3 94.3
Receivables 147.0 153.5
Total 223.3 249.3
The use of shares and participations as assets pledged refers to shares in joint ventures
belonging to Infrastructure Development. These assets are pledged as collateral when
obtaining outside lending for these joint ventures.
Assets pledged for liabilities
Property mortgage
Shares and
receivables Total
2010 2009 2010 2009 2010 2009
Own obligations
Liabilities to credit
institutions 5.0 1.5 5.0 1.5
Other liabilities 147.0 153.5 147.0 153.5
Total own obligations 5.0 1.5 147.0 153.5 152.0 155.0
Other obligations 71.3 94.3 71.3 94.3
Total 5.0 1.5 218.3 247.8 223.3 249.3
Assets pledged for other liabilities, USD 0.1 billion, refer predominantly to financial
instruments pledged as collateral to customers in conjunction with contracting work
in the United States.
Contingent liabilities
Contingent liabilities are reported in compliance with IAS 37, “Provisions, Contingent
Liabilities and Contingent Assets.” See “Accounting and valuation principles,” Note 1.
The Group’s contingent liabilities related to construction consortia totaled nearly
USD 2.1 (2.8) billion. This amount referred to the portion of the joint and several liability
for the obligations of construction consortia affecting consortium members outside the
Group. Such liability is often required by the customer. To the extent it is deemed likely
that Skanska will be subject to liability claims, the obligation is reported as a liability in
the statement of financial position.
Contingent liabilities related to joint ventures refer mainly to guarantees issued for
joint ventures belonging to the Residential Development business stream.
Most of the Group’s other contingent liabilities, about USD 0.06 billion (0.07), were
related to obligations attributable to residential projects.
Since September 2009, when the Supreme Administrative Court of Finland issued
a ruling in a case concerning alleged anti-competitive activities in the civil construction
and asphalt sectors during the years 1994-2002, a number of municipalities and
the Finnish Road Administration have sued Skanska and others, claiming damages
for alleged overpricing. These cases are mainly being handled at the Helsinki District
Court. The total claims against Skanska amount to about EUR 16 M (corresponding to
USD 21.2 M). Skanska denies liability for all the claims.
In October 2006, Slovakia’s Antitrust Office decided to fine six companies that had
participated in tendering for a road project. Skanska was part of a joint venture led by a
local Slovakian company. The fine in Skanska’s case is the equivalent of USD 9.1 M and
was charged to 2006 earnings. Skanska denies the Authority’s allegations and requested
that the decision be reviewed by a court of law. In December 2008 the court decided
to annul the decision of the Antitrust Office and remit the case to the Office for a new
procedure. After being appealed by the Antitrust Office, the case will be decided by
Slovakia’s Supreme Court.
Skanska has an obligation to American guarantors to maintain a certain level of
equity in its North American operations.
Contingent assets
The Group has no contingent assets of significant importance in assessing the position
of the Group. See “Accounting and valuation principles,” Note 1.
Contingent liabilities 2010 2009
Contingent liabilities related to construction consortia 2,113.5 2,787.4
Contingent liabilities related to joint ventures 54.5 48.4
Other contingent liabilities 60.4 65.9
Total 2,228.4 2,901.8
Skanska Review of 2010 – USD version Notes, including accounting and valuation principles 139