Net asset position
|In CHF million||31.12.2013||31.12.2012||Change|
|Cash and cash equivalents and current financial assets||883||578||52.8%|
|Trade and other receivables||2,516||2,658||–5.3%|
|Property, plant and equipment||9,156||8,549||7.1%|
|Other intangible assets||2,053||2,121||–3.2%|
|Associates and non-current financial assets||346||465||–25.6%|
|Income tax assets||301||340||–11.5%|
|Other current and non-current assets||432||423||2.1%|
|Liabilities and equity|
|Trade and other payables||1,870||1,993||–6.2%|
|Defined benefit obligations||1,293||2,108||–38.7%|
|Income tax liabilities||640||425||50.6%|
|Other current and non-current liabilities||1,069||930||14.9%|
|Share of equity attributable to equity holders of Swisscom Ltd||5,973||4,690||27.4%|
|Share of equity attributable to non-controlling interests||29||27||7.4%|
|Total liabilities and equity||20,496||19,796||3.5%|
|Equity ratio at end of year||29.3%||23.8%|
Total assets rose by CHF 0.7 billion or 3.5% to CHF 20.5 billion, mainly due to the high investment activity and acquisition of subsidiaries.
|In CHF million||31.12.2011||31.12.2012||31.12.2013||Change|
|Property, plant and equipment||8,222||8,549||9,156||607|
|Other intangible assets||1,879||2,121||2,053||(68)|
|Other net operating assets||13,975||14,650||15,574||924|
|Cash and cash equivalents and financial assets||522||712||884||172|
|Defined benefit obligations||(1,489)||(2,108)||(1,293)||815|
|Income tax assets and liabilities, net||(16)||(85)||(339)||(254)|
|Investments in associates||233||268||153||(115)|
|Other assets, net||299||63||(154)||(217)|
The net carrying amount of goodwill is CHF 4,809 million, the bulk of which relates to Swisscom Switzerland (CHF 4,065 million). This goodwill arose primarily in 2007 in connection with the repurchase of the 25% stake in Swisscom Mobile Ltd sold to Vodafone in 2001. Following the repurchase, the mobile, fixed-network and solutions businesses were organisationally combined and merged to create the new company Swisscom (Switzerland) Ltd. The valuation risk of this goodwill item is extremely low. The net carrying amount of Fastweb goodwill is EUR 492 million (CHF 604 million). Goodwill in respect of other operating segments amounts to CHF 140 million.
The defined benefit obligations disclosed in the consolidated financial statements are measured in accordance with International Financial Reporting Standards (IFRS). Net obligations recognised on the balance sheet amounted to CHF 1,293 million, corresponding to a reduction of CHF 815 million compared to the prior year. This is largely due to a higher discount rate and the sound performance of the plan assets. In accordance with Swiss accounting standards (Swiss GAAP ARR) the surplus amounts to some CHF 0.4 billion corresponding to a coverage ratio of 106%. The main reasons for the differences in accordance with IFRS of CHF 1.7 billion are the application of differing actuarial assumptions with regard to the discount rate (CHF 0.7 billion) and life expectancy (CHF 0.4 billion), and a different actuarial measurement method (CHF 0.6 billion). IFRS measurement takes into account future salary, contribution and pension increases and early retirements.
Equity rose by CHF 1,285 million or 27.2% to CHF 6,002 million. The dividend payments of CHF 1,140 million to the equity holders of Swisscom Ltd were more than offset by net income of CHF 1,695 million and net gains of CHF 740 million recognised directly in equity. Net gains recognised directly in equity include non-cash actuarial gains from pension plans totalling CHF 847 million as well as unrealised losses of CHF 63 million resulting from currency translation of foreign Group companies. The CHF/EUR exchange rate rose from 1.207 at the end of 2012 to 1.228. At 31 December 2013, cumulative currency translation losses recognised in equity amounted to CHF 1,559 million (after tax).
Distributable reserves are calculated on the basis of equity reported in the separate financial statements of Swisscom Ltd in accordance with statutory accounting provisions, rather than on the basis of equity as disclosed in the consolidated balance sheet prepared in accordance with International Financial Reporting Standards (IFRS). At 31 December 2013, the equity of Swisscom Ltd amounted to CHF 4,243 million. The difference between this amount and equity disclosed in the consolidated balance sheet is essentially due to earnings retained by subsidiaries as well as different accounting and valuation methods. Under Swiss company law, share capital and that part of the general reserves representing 20% of the share capital may not be distributed. At 31 December 2013, Swisscom Ltd had distributable reserves of CHF 4,180 million.