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Balance sheet

In CHF million, except where indicated   30.09.2016   31.12.2015   Change
             
Assets
Cash and cash equivalents and current financial assets   364   409   –11.0%
Trade and other receivables   2,570   2,535   1.4%
Property, plant and equipment   10,135   9,855   2.8%
Goodwill   5,164   5,161   0.1%
Other intangible assets   1,765   1,861   –5.2%
Investments in associates and non-current financial assets   479   461   3.9%
Tax assets   357   375   –4.8%
Other current and non-current assets   537   492   9.1%
Total assets   21,371   21,149   1.0%
             
Liabilities and equity
Financial liabilities   8,798   8,593   2.4%
Trade and other payables   1,852   1,768   4.8%
Defined benefit obligations   3,919   2,919   34.3%
Provisions   944   1,139   –17.1%
Tax liabilities   294   436   –32.6%
Other current and non-current liabilities   1,011   1,052   –3.9%
Total liabilities   16,818   15,907   5.7%
Share of equity attributable to equity holders of Swisscom Ltd   4,547   5,237   –13.2%
Share of equity attributable to non-controlling interests   6   5   20.0%
Total equity   4,553   5,242   –13.1%
Total liabilities and equity   21,371   21,149   1.0%
Equity ratio at end of period   21.3%   24.8%    
             
Net debt   8,310   8,042   3.3%

Total assets at 30 September 2016 amounted to CHF 21,371 million, which equates to an increase of CHF 222 million or 1.0% versus the end of 2015. The increase in assets is mainly due to the higher volume of property, plant and equipment as a result of investment activity. Compared to the end of 2015, defined benefit obligations recognised under IAS 19 were CHF 1,000 million higher at CHF 3,919 million. This increase is mainly due to the lower discount rate, which fell from 0.94% to 0.30%. The main reason for the decline in provisions by CHF 195 million to CHF 944 million is the payment of the Competition Commission penalty as part of the ongoing proceedings regarding broadband services in the amount of CHF 186 million. Swisscom does not consider the sanction justified and has lodged an appeal with the Federal Court. Equity fell by CHF 689 million or 13.1% to CHF 4,553 million, which corresponds to an equity ratio of 21.3% (24.8% as at 31 December 2015). Net income of CHF 1,197 million was offset by the dividend of CHF 1,140 million and the other net loss of CHF 734 million recognised in equity. This includes actuarial losses of CHF 736 million from pension plans after tax arising mainly from interest rate changes. At the end of 2015, the cumulative currency translation losses included in equity remain unchanged at around CHF 1.7 bil­lion.

Net debt comprises financial liabilities less cash and cash equivalents, current financial assets and non-current, fixed-interest-bearing deposits. Swisscom’s goal is to achieve a maximum net debt/EBITDA ratio (on an annual basis) of 2.1. This value may be exceeded temporarily. Financial leeway exists if the target is not reached.