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Net asset position

In CHF million, except where indicated   31.03.2020   31.12.2019   Change
Property, plant and equipment   10,476   10,529   –0.5%
Intangible assets   1,813   1,842   –1.6%
Goodwill   5,151   5,163   –0.2%
Right-of-use assets   2,143   2,177   –1.6%
Trade receivables   2,201   2,183   0.8%
Trade payables   (1,531)   (1,614)   –5.1%
Provisions   (1,154)   (1,146)   0.7%
Deferred gain on sale and leaseback of real estate   (118)   (122)   –3.3%
Other operating assets and liabilities, net   78   (26)    
Net operating assets   19,059   18,986   0.4%
Net debt   (6,552)   (6,758)   –3.0%
Lease liabilities   (1,976)   (2,027)   –2.5%
Defined benefit obligations   (1,270)   (1,058)   20.0%
Income tax assets and liabilities, net   (525)   (607)   –13.5%
Equity-accounted investees and other non-current financial assets   320   339   –5.6%
Equity   9,056   8,875   2.0%
             
Equity ratio in %   35.6   36.6    

Operating assets

Net operating assets rose by CHF 0.1 bil­lion or 0.4% to CHF 19.1 bil­lion. The rise was mainly attributable to increased other operating assets and liabilities, which went up as a result of higher accruals for prepaid expenses for the current financial year. The net carrying amount of goodwill was CHF 5.2 bil­lion, the bulk of which relates to Swisscom Switzerland (CHF 4.2 bil­lion). The net carrying amount of Fastweb’s goodwill is EUR 0.5 bil­lion (CHF 0.5 bil­lion).

Net debt

Net debt is composed of financial liabilities minus cash and cash equivalents, current financial assets, derivative financial instruments held to hedge financial liabilities and other non-current financial assets directly related to non-current financial liabilities (certificates of deposit, U.S. Treasury Bond Strips). Net debt and the net debt to EBITDA ratio are presented both with and without classification of leases as financial liabilities. For credit rating purposes, rating agencies include lease liabilities in the calculation of net debt. However, for the financial target of the Federal Council’s financing structure, leases are not classified as financial liabilities or part of net debt.

In CHF million   31.03.2020   31.12.2019
Debenture bonds   5,887   5,915
Bank loans   2,089   1,080
Private placements   150   151
Other financial liabilities   280   314
Total financial liabilities   8,406   7,460
Cash and cash equivalents   (1,487)   (328)
Non-current certificates of deposit   (135)   (142)
Non-current listed debt instruments   (95)   (94)
Non-current derivative financial instruments for financing   (68)   (73)
Other current financial assets   (69)   (65)
Net debt   6,552   6,758
Lease liabilities   1,976   2,027
Net debt incl. lease liabilities   8,528   8,785

In recent years, Swisscom has taken advantage of favourable capital market conditions with a view to optimising the interest and maturity structure of the Group’s financial obligations. As at 31 March 2020, the average interest expense on financial liabilities was 0.98%, the average residual term to maturity was 5.49 years, and the share of the Group’s variable interest-bearing financial liabilities was 20%. The increase in cash and cash equivalents and bank loans is due to the drawdown of credit lines to ensure liquidity.