Shareholders' Letter

19 Other financial assets
Loans and Held-to- Available-
Derivative
financial
In CHF million receivables maturity for-sale instruments Total
Balance at 31 December 2008 176 808 27 12 1,023
Additions 495 – 7 – 502
Disposals (93) (803) (12) – (908)
Change in scope of consolidation 10 – – – 10
Change in fair value recognised in equity – – 4 (12) (8)
Foreign currency translation adjustments
recognised in income statement (20) 3 – – (17)
Balance at 31 December 2009 568 8 26 – 602
Additions 135 – 6 – 141
Disposals (189) (8) (2) – (199)
Change in scope of consolidation 2 – – – 2
Change in fair value recognised in equity – – 2 – 2
Change in fair value recognised in income statement – – – 24 24
Foreign currency translation adjustments
recognised in income statement (35) – – – (35)
Balance at 31 December 2010 481 – 32 24 537
Thereof other current financial assets 115 – 7 – 122
Thereof other non-current financial assets 366 – 25 24 415
Loans and receivables
Included are term deposits as at 31 December 2010 totalling CHF 98 million (prior year: CHF 104
million). As of 31 December 2010, financial assets aggregating CHF 252 million (prior year: CHF
263 million) pledged to secure liabilities were not freely available. In 2009, previously unrecorded
financial assets of USD 356 million (CHF 367 million) resulting from the early termination of various
cross-border lease agreements were recognised for the first time as loans and receivables.
See Note 26.
Held-to-maturity financial assets
As of the balance-sheet date, Swisscom had no held-to-maturity assets. In 2009 and 2010, several
cross-border lease agreements were terminated prematurely. As a result of the termination, financial
assets were disposed of which had been previously recorded as held-to-maturity financial
assets. In the prior year, the remaining investments were not reclassified since the early termination
of various cross-border lease agreements was not under control of Swisscom. See Note 26.
Available-for-sale financial assets
Available-for-sale financial assets primarily include financial investments in equity instruments.
As a general rule, shares not quoted on stock exchanges are recorded at cost since their fair value
cannot be reliably determined. As of 31 December 2010, the carrying amount of investments in
shares recorded at cost totalled CHF 11 million (prior year: CHF 22 million).
Derivative financial instruments
As at 31 December 2010, derivative financial instruments with a positive market value of CHF 24
million were recognised (prior year: none). During the first quarter of 2010, a financial asset of
CHF 14 million was recorded in connection the initial recognition of options relating to company