Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document Information [Line Items] | |
Document Type | 20-F/A |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | ERIC |
Entity Registrant Name | ERICSSON LM TELEPHONE CO |
Entity Central Index Key | 717,826 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Class B [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 3,072,395,752 |
Class A [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 261,755,983 |
Class C [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated income statement
Consolidated income statement - SEK (kr) shares in Millions, kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit or loss [abstract] | |||
Net sales | kr 201,303 | kr 222,608 | kr 246,920 |
Cost of sales | (156,758) | (156,243) | (161,101) |
Gross income | kr 44,545 | kr 66,365 | kr 85,819 |
Gross margin (%) | 22.10% | 29.80% | 34.80% |
Research and development expenses | kr (37,887) | kr (31,635) | kr (34,844) |
Selling and administrative expenses | (32,676) | (28,866) | (29,285) |
Operating expenses | (70,563) | (60,501) | (64,129) |
Other operating income | 1,154 | 1,987 | 1,568 |
Other operating expense | (13,286) | (1,583) | (1,415) |
Share in earnings of joint ventures and associated companies | 24 | 31 | (38) |
Operating income (loss) | (38,126) | 6,299 | 21,805 |
Financial income | (361) | (115) | 525 |
Financial expenses | (843) | (2,158) | (2,458) |
Income after financial items | (39,330) | 4,026 | 19,872 |
Taxes | 4,267 | (2,131) | (6,199) |
Net income (loss) | (35,063) | 1,895 | 13,673 |
Net income (loss) attributable to: | |||
Stockholders of the Parent Company | (35,206) | 1,716 | 13,549 |
Non-controllinginterest | kr 143 | kr 179 | kr 124 |
Other information | |||
Average number of shares, basic (million) | 3,277 | 3,263 | 3,249 |
Earnings (loss) per share attributable to stockholders of the Parent Company, basic (SEK) 1) | kr (10.74) | kr 0.53 | kr 4.17 |
Earnings (loss) per share attributable to stockholders of the Parent Company, diluted (SEK)1) | kr (10.74) | kr 0.52 | kr 4.13 |
Consolidated statement of compr
Consolidated statement of comprehensive income (loss) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of comprehensive income [abstract] | |||
Net income (loss) | kr (35,063) | kr 1,895 | kr 13,673 |
Items that will not be reclassified to profit or loss | |||
Remeasurements of defined benefits pension plans including asset ceiling | 970 | (1,766) | (2,026) |
Tax on items that will not be reclassified to profit or loss | (547) | 520 | 721 |
Available-for-sale interest-bearing securities | |||
Gains/losses arising during the period | 68 | (7) | |
Reclassification adjustments on gains/losses included in profit or loss | 5 | ||
Revaluation of other investments in shares and participations | |||
Fair value remeasurement | 99 | (2) | 457 |
Changes in cumulative translation adjustments | (3,378) | 4,235 | (604) |
Share of other comprehensive income of joint ventures and associated companies | (362) | 141 | |
Tax on items that may be reclassified to profit or loss | (16) | 1 | |
Total other comprehensive income (loss), net of tax | (2,799) | 2,619 | (1,311) |
Net income and total comprehensive income | (37,862) | 4,514 | 12,362 |
Total comprehensive income (loss) attributable to: | |||
Stockholders of the Parent Company | (37,987) | 4,285 | 12,218 |
Non-controllinginterests | kr 125 | kr 229 | kr 144 |
Consolidated balance sheet
Consolidated balance sheet - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Non-currentassets | |||
Capitalized development expenses | kr 4,593 | kr 8,076 | |
Goodwill | 27,815 | 43,387 | |
Intellectual property rights, brands and other intangible assets | 4,148 | 7,747 | |
Property, plant and equipment | 12,857 | 16,734 | |
Financial assets | |||
Equity in joint ventures and associated companies | 624 | 775 | |
Other investments in shares and participations | 1,279 | 1,179 | |
Customer finance, non-current | 2,178 | 2,128 | |
Interest-bearing securities, non-current | 25,105 | 7,586 | |
Other financial assets, non-current | 5,897 | 4,442 | |
Deferred tax assets | 21,228 | 15,522 | |
Non-current assets | 105,724 | 107,576 | |
Current assets | |||
Inventories | 24,960 | 30,307 | |
Trade receivables | 63,210 | 68,117 | |
Customer finance, current | 1,753 | 2,625 | |
Other current receivables | 22,300 | 24,431 | |
Interest-bearing securities, current | 6,713 | 13,325 | |
Cash and cash equivalents | 35,884 | 36,966 | |
Current assets | 154,820 | 175,771 | |
Total assets | 260,544 | 283,347 | |
Equity | |||
Stockholders' equity | 99,540 | 139,817 | |
Non-controlling interest in equity of subsidiaries | 636 | 675 | |
Equity | 100,176 | 140,492 | |
Non-current liabilities | |||
Post-employment benefits | 25,009 | 23,723 | |
Provisions, non-current | 3,596 | 946 | |
Deferred tax liabilities | 901 | 2,147 | |
Borrowings, non-current | 30,500 | 18,653 | |
Other non-currentliabilities | 2,776 | 2,621 | |
Non-current liabilities | 62,782 | 48,090 | |
Current liabilities | |||
Provisions, current | 6,350 | 5,411 | |
Borrowings, current | 2,545 | 8,033 | |
Trade payables | 26,321 | 25,318 | |
Other current liabilities | 62,370 | 56,003 | |
Current liabilities | 97,586 | 94,765 | |
Total equity and liabilities | [1] | kr 260,544 | kr 283,347 |
[1] | Of which interest-bearing liabilities SEK 33,045 (26,686) million. |
Consolidated balance sheet (Par
Consolidated balance sheet (Parenthetical) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Non Current Assets Finance Liabilities [Abstract] | ||
Interest-bearing liabilities | kr 33,045 | kr 26,686 |
Consolidated statement of cash
Consolidated statement of cash flows - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net income (loss) | kr (35,063) | kr 1,895 | kr 13,673 |
Adjustments to reconcile net income to cash | 18,583 | 6,112 | 10,611 |
Cash flows from (used in) Operations | (16,480) | 8,007 | 24,284 |
Changes in operating net assets | |||
Inventories | 3,995 | (613) | (366) |
Customer finance, current and non-current | 798 | (950) | 824 |
Trade receivables | 1,380 | 5,933 | 7,000 |
Trade payables | 2,413 | 2,775 | (2,676) |
Provisions and post-employment benefits | 4,785 | 3,106 | 544 |
Other operating assets and liabilities, net | 12,710 | (4,248) | (9,013) |
Net changes in operating assets and liabilities | 26,081 | 6,003 | (3,687) |
Cash flow from operating activities | 9,601 | 14,010 | 20,597 |
Investing activities | |||
Investments in property, plant and equipment | (3,877) | (6,129) | (8,338) |
Sales of property, plant and equipment | 1,016 | 482 | 1,301 |
Acquisitions of subsidiaries and other operations | (289) | (984) | (2,201) |
Divestments of subsidiaries and other operations | 565 | 362 | 1 |
Product development | (1,444) | (4,483) | (3,302) |
Other investing activities | (463) | (3,004) | (543) |
Interest-bearing securities | (11,578) | 5,473 | 5,095 |
Cash flow from investing activities | (16,070) | (8,283) | (7,987) |
Cash flow before financing activities | (6,469) | 5,727 | 12,610 |
Financing activities | |||
Proceeds from issuance of borrowings | 13,416 | 1,527 | 1,179 |
Repayment of borrowings | (4,830) | (1,072) | (1,336) |
Proceeds from stock issue | 15 | 131 | |
Sale/repurchase of own shares | 83 | (26) | 169 |
Dividends paid | (3,424) | (12,263) | (11,337) |
Other financing activities | 218 | (39) | 615 |
Cash flow from financing activities | 5,478 | (11,742) | (10,710) |
Effect of exchange rate changes on cash | (91) | 2,757 | (2,664) |
Net change in cash | (1,082) | (3,258) | (764) |
Cash and cash equivalents, beginning of period | 36,966 | 40,224 | 40,988 |
Cash and cash equivalents, end of period | kr 35,884 | kr 36,966 | kr 40,224 |
Consolidated statement of chang
Consolidated statement of changes in equity - SEK (kr) kr in Millions | Total | Group [member] | Joint ventures and associated companies [member] | Capital stock [member] | Additional paid in capital [member] | Retained earnings [member] | Retained earnings [member]Group [member] | Retained earnings [member]Joint ventures and associated companies [member] | Stockholder's equity [member] | Stockholder's equity [member]Group [member] | Stockholder's equity [member]Joint ventures and associated companies [member] | Non-controlling interest [member] | Non-controlling interest [member]Group [member] | |
Beginning balance at Dec. 31, 2014 | kr 145,309 | kr 16,526 | kr 24,731 | kr 103,049 | kr 144,306 | kr 1,003 | ||||||||
Net income (loss) | 13,673 | kr 13,711 | kr (38) | kr 13,587 | kr (38) | kr 13,587 | kr (38) | kr 124 | ||||||
Items that will not be reclassified to profit or loss | ||||||||||||||
Remeasurements related to post-employment benefits | (2,026) | (2,033) | (2,033) | 7 | ||||||||||
Tax on items that will not be reclassified to profit or loss | 721 | 722 | 722 | (1) | ||||||||||
Available-for-sale interest-bearing securities | ||||||||||||||
Revaluation of other investments in shares and participations | 457 | 457 | 457 | |||||||||||
Changes in cumulative translation adjustments | (604) | 141 | (618) | 141 | (618) | 141 | 14 | |||||||
Revaluation of other investments in shares and participations | 457 | 457 | 457 | |||||||||||
Changes in cumulative translation adjustments Group | (604) | 141 | (618) | 141 | (618) | 141 | 14 | |||||||
Tax on items that may be reclassified to profit or loss | 721 | 722 | 722 | (1) | ||||||||||
Total other comprehensive income (loss), net of tax | (1,311) | (1,331) | (1,331) | 20 | ||||||||||
Total comprehensive income | 12,362 | 12,218 | 12,218 | 144 | ||||||||||
Transactions with owners | ||||||||||||||
Sale of own shares | 169 | 169 | 169 | |||||||||||
Long-term variable compensation plans | 865 | 865 | 865 | |||||||||||
Dividends paid | (11,337) | (11,033) | (11,033) | (304) | ||||||||||
Transactions with non-controlling interest | (2) | (2) | ||||||||||||
Ending balance at Dec. 31, 2015 | 147,366 | 16,526 | 24,731 | 105,268 | 146,525 | 841 | ||||||||
Net income (loss) | 1,895 | 1,869 | 26 | 1,690 | 26 | 1,690 | 26 | 179 | ||||||
Items that will not be reclassified to profit or loss | ||||||||||||||
Remeasurements related to post-employment benefits | (1,766) | (1,770) | (1,770) | 4 | ||||||||||
Tax on items that will not be reclassified to profit or loss | 520 | 521 | 521 | (1) | ||||||||||
Available-for-sale interest-bearing securities | ||||||||||||||
Gains (+)/Losses (-) arising during the period | (7) | (7) | (7) | |||||||||||
Revaluation of other investments in shares and participations | (2) | (2) | (2) | |||||||||||
Changes in cumulative translation adjustments | 4,235 | (362) | 4,188 | (362) | 4,188 | (362) | 47 | |||||||
Revaluation of other investments in shares and participations | (2) | (2) | (2) | |||||||||||
Changes in cumulative translation adjustments Group | 4,235 | (362) | 4,188 | (362) | 4,188 | (362) | 47 | |||||||
Tax on items that may be reclassified to profit or loss | 1 | |||||||||||||
Tax on items that may be reclassified to profit or loss | 520 | 521 | 521 | (1) | ||||||||||
Total other comprehensive income (loss), net of tax | 2,619 | 2,569 | 2,569 | 50 | ||||||||||
Total comprehensive income | 4,514 | 4,285 | 4,285 | 229 | ||||||||||
Transactions with owners | ||||||||||||||
Stock issue | 131 | 131 | 131 | |||||||||||
Sale of own shares | 105 | 105 | 105 | |||||||||||
Repurchase of own shares | (321) | (131) | (131) | (190) | ||||||||||
Long-term variable compensation plans | 957 | 957 | 957 | |||||||||||
Dividends paid | (12,263) | (12,058) | (12,058) | (205) | ||||||||||
Transactions with non-controlling interest | 3 | 3 | 3 | |||||||||||
Ending balance at Dec. 31, 2016 | 140,492 | 16,657 | 24,731 | 98,429 | 139,817 | 675 | ||||||||
Net income (loss) | (35,063) | kr (35,084) | kr 21 | kr (35,227) | kr 21 | kr (35,227) | kr 21 | kr 143 | ||||||
Items that will not be reclassified to profit or loss | ||||||||||||||
Remeasurements related to post-employment benefits | 970 | 956 | 956 | 14 | ||||||||||
Tax on items that will not be reclassified to profit or loss | (547) | (544) | (544) | (3) | ||||||||||
Available-for-sale interest-bearing securities | ||||||||||||||
Gains (+)/Losses (-) arising during the period | 68 | 68 | 68 | |||||||||||
Reclassification adjustments relating to available-for-sale financial assets disposed of in the year | 5 | 5 | 5 | |||||||||||
Revaluation of other investments in shares and participations | 99 | 99 | 99 | |||||||||||
Changes in cumulative translation adjustments | (3,378) | (3,349) | (3,349) | [1] | (29) | |||||||||
Revaluation of other investments in shares and participations | 99 | 99 | 99 | |||||||||||
Changes in cumulative translation adjustments Group | (3,378) | (3,349) | (3,349) | [1] | (29) | |||||||||
Tax on items that may be reclassified to profit or loss | (16) | (16) | (16) | |||||||||||
Tax on items that may be reclassified to profit or loss | (547) | (544) | (544) | (3) | ||||||||||
Total other comprehensive income (loss), net of tax | (2,799) | (2,781) | (2,781) | (18) | ||||||||||
Total comprehensive income | (37,862) | (37,987) | (37,987) | 125 | ||||||||||
Transactions with owners | ||||||||||||||
Stock issue | 15 | 15 | 15 | |||||||||||
Sale of own shares | 98 | 98 | 98 | |||||||||||
Repurchase of own shares | (103) | (15) | (15) | (88) | ||||||||||
Long-term variable compensation plans | 885 | 885 | 885 | |||||||||||
Dividends paid | (3,424) | (3,273) | (3,273) | [2] | (151) | |||||||||
Transactions with non-controlling interest | 75 | 75 | ||||||||||||
Ending balance at Dec. 31, 2017 | kr 100,176 | kr 16,672 | kr 24,731 | kr 58,137 | kr 99,540 | kr 636 | ||||||||
[1] | 1) Changes in cumulative translation adjustments include changes regarding revaluation of goodwill in local currency of SEK -2,484 million (SEK 2,355 million in 2016 and 1,592 million in 2015), and realized gain/losses net from sold/liquidated companies, SEK -24 million (SEK -90 million in 2016 and SEK -3 million in 2015). | |||||||||||||
[2] | 2) Dividends paid per share amounted to SEK 1.00 (SEK 3.70 in 2016 and SEK 3.40 in 2015). |
Consolidated statement of chan8
Consolidated statement of changes in equity (Parenthetical) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Restatement [Abstract] | |||
Increase (decrease) through net exchange differences, goodwill | kr (2,484) | kr 2,355 | kr 1,592 |
Realized gain or losses net | kr (24) | kr (90) | kr (3) |
Dividends paid per share | kr 1 | kr 3.70 | kr 3.40 |
C1 Significant accounting polic
C1 Significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
C1 Significant accounting policies | C1 Significant accounting policies Introduction The consolidated financial statements comprise Telefonaktiebolaget LM Ericsson, the Parent Company, and its subsidiaries (“the Company”) and the Company’s interests in joint ventures and associated companies. The Parent Company is domiciled in Sweden at Torshamnsgatan 21, SE-164 The consolidated financial statements for the year ended December 31, 2017 have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU and RFR 1 “Additional rules for Group Accounting,” related interpretations issued by the Swedish Financial Reporting Board (Rådet för Finansiell Rapportering), and the Swedish Annual Accounts Act. For the financial reporting of 2017, the Company has applied IFRS as issued by the IASB (IFRS effective as per December 31, 2017). There is no difference between IFRS effective as per December 31, 2017, and IFRS as endorsed by the EU, nor is RFR 1 related interpretations issued by the Swedish Financial Reporting Board (Rådet för Finansiell Rapportering) or the Swedish Annual Accounts Act in conflict with IFRS, for all periods presented. For information on “New standards and interpretations not yet adopted,” refer to the end of this Note. The financial statements were approved by the Board of Directors on February 23, 2018. The balance sheets and income statements are subject to approval by the Annual General Meeting of shareholders. Amendments applied as from January 1, 2017 There have not been any significant amendments of IFRS concerning the Company during 2017. IAS 7 “Statement of Cash Flows” is amended in relation to disclosure about changes in liabilities arising from financing activities. A new table is presented in Note C25, “Statement of Cash flows.” Basis of presentation The financial statements are presented in millions of Swedish Krona (SEK). They are prepared on a historical cost basis, except for certain financial assets and liabilities that are stated at fair value: derivative financial instruments, financial instruments held for trading, financial instruments classified as available-for-sale Basis of consolidation and composition of the Group The consolidated financial statements are prepared in accordance with the purchase method. Accordingly, consolidated stockholders’ equity includes equity in subsidiaries, joint ventures and associated companies earned only after their acquisition. Subsidiaries are all companies for which Telefonaktiebolaget LM Ericsson, directly or indirectly, is the parent. To be classified as a parent, Telefonaktiebolaget LM Ericsson, directly or indirectly, must control another company which requires that the Parent Company has power over that other company, is exposed to variable returns from its involvement and has the ability to use its power over that other company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that such control ceases. Intra-group balances and any unrealized income and expense arising from intra-group transactions are fully eliminated in preparing the consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. The Company is composed of a parent company, Telefonaktiebolaget LM Ericsson, with generally fully-owned subsidiaries in many countries of the world. The largest operating subsidiaries are the fully-owned telecom vendor companies Ericsson AB, incorporated in Sweden and Ericsson Inc., incorporated in the US. Business combinations At the acquisition of a business, the cost of the acquisition, being the purchase price, is measured as the fair value of the assets given, and liabilities incurred or assumed at the date of exchange, including any cost related to contingent consideration. Transaction costs attributable to the acquisition are expensed as incurred. The acquisition cost is allocated to acquired assets, liabilities and contingent liabilities based upon appraisals made, including assets and liabilities that were not recognized on the acquired entity’s balance sheet, for example intangible assets such as customer relations, brands, patents and financial liabilities. Goodwill arises when the purchase price exceeds the fair value of recognizable acquired net assets. In acquisitions with non-controlling In case there is a put option for non-controlling Non-controlling The Company treats transactions with non-controlling non-controlling non-controlling When the Company ceases to have control, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest in an associate or financial asset. In addition, any amounts previously recognized in Other comprehensive income in respect of that entity are accounted for as if the Company had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in Other comprehensive income are reclassified to profit or loss. At acquisition, there is a choice on an acquisition-by-acquisition non-controlling non-controlling Joint ventures and associated companies Joint ventures and associated companies are accounted for in accordance with the equity method. Under the equity method, the investment in joint venture or associate is initially recognized at cost and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. If the Company’s interest in an associated company is nil, the Company shall not, as prescribed by IFRS, recognize its part of any future losses. Provisions related to obligations for such an interest shall, however, be recognized in relation to such an interest. Investments in associated companies, i.e., when the Company has significant influence and the power to participate in the financial and operating policy decisions of the associated company, but is not in control or joint control over those policies. Normally, this is the case in voting stock interest, including effective potential voting rights, which stand at least at 20% but not more than 50%. The Company’s share of income before taxes is reported in item “Share in earnings of joint ventures and associated companies,” included in Operating Income. This reflects the fact that these interests are held for operating rather than investing or financial purposes. Ericsson’s share of income taxes related to associated companies is reported under the line item “Taxes,” in the income statement. Unrealized gains on transactions between the Company and its joint ventures and associated companies are eliminated to the extent of the Company’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Shares in earnings of joint ventures and associated companies included in consolidated equity which are undistributed are reported in Retained earnings in the balance sheet. Impairment testing as well as recognition or reversal of impairment of investments in each joint venture and associated company is performed in the same manner as for intangible assets other than goodwill. The entire carrying value of each investment, including goodwill, is tested as a single asset. See also description under “Intangible assets other than goodwill” below. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in Other comprehensive income are reclassified to profit or loss where appropriate. In Note C2, “Critical Accounting Estimates and Judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied. Foreign currency remeasurement and translation Items included in the financial statements of each entity of the Company are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Swedish Krona (SEK), which is the Parent Company’s functional and presentation currency. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of each respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end Changes in the fair value of monetary securities denominated in foreign currency classified as available-for-sale Translation differences on non-monetary Group companies The results and financial position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet. Period income and expenses for each income statement are translated at period average exchange rates. All resulting net exchange differences are recognized as a separate component of Other comprehensive income (OCI). On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and of borrowings and other currency instruments designated as hedges of such investments, are accounted for in OCI. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in OCI are recognized in the income statement as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. The Company is continuously monitoring the economies with high inflation, the risk of hyperinflation and potential impact on the Company. There is no significant impact due to any currency translation of a hyper-inflationary economy. Statement of cash flows The statement of cash flows is prepared in accordance with the indirect method. Cash flows in foreign subsidiaries are translated at the average exchange rate during the period. Payments for subsidiaries acquired or divested are reported as cash flow from investing activities, net of cash and cash equivalents acquired or disposed of respectively. Cash and cash equivalents consist of cash, bank, and interest-bearing securities that are highly liquid monetary financial instruments with a remaining maturity of three months or less at the date of acquisition. Revenue recognition Background The Company offers a comprehensive portfolio of telecommunication and data communication systems, professional services, and support solutions. Products, both hardware and software as well as services, are in general standardized. The impact of this is that any acceptance terms are normally only formal requirements. In Note C3, “Segment information,” the Company’s products and services are disclosed in more detail as per operating segment. The Company’s products and services are generally sold under delivery-type or multi-year recurring services contracts. The delivery type contracts often contain content from more than one segment. Accounting treatment Sales are based on fair values of consideration received and recorded net of value added taxes, goods returned and estimated trade discounts. Revenue is recognized when risks and rewards have been transferred to the customer, with reference to all significant contractual terms, when: • The product or service has been delivered • The revenue amount is fixed or determinable • The customer has received and activation has been made of separately sold software • Collection is reasonably assured Estimations of contractual performance criteria impact the timing and amounts of revenue recognized and may therefore defer revenue recognition until the performance criteria are met. The profitability of contracts is periodically assessed, and provisions for any estimated losses are made immediately when losses are probable. Allocation and/or timing criteria specific to each type of contract are: • Delivery-type contracts – These contracts relate to delivery, installation, integration of products and provision of related services, normally under multiple elements contracts. Under multiple elements contracts, accounting is based on that the revenue recognition criteria are applied to the separately identifiable components of the contract. Revenue, including the impact of any discount or rebate, is allocated to each element based on relative fair values. • Contracts for services – These relate to multi-year service contracts such as support- and managed service contracts and other types of recurring services. Revenue is recognized when the services have been provided, generally pro rata over the contract period. • Contracts generating license fees from third-parties for the use of the Company’s intellectual property rights – License fees are measured based on the substance of the contract. Examples are a percentage of sales or currency amount per unit and recognized over the license period or at a single point of time when no obligations remain. The amount of consideration shall also be reasonably certain. Networks and Digital services have contracts that relate to this type of arrangement. For sales between consolidated companies, associated companies, joint ventures and segments, the Company applies arm’s length pricing. In Note C2, “Critical accounting estimates and judgments,” a further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied. Earnings per share Basic earnings per share are calculated by dividing net income attributable to stockholders of the Parent Company by the weighted average number of shares outstanding (total number of shares less treasury stock) during the year. Diluted earnings per share are calculated by dividing net income attributable to stockholders of the Parent Company, when appropriately adjusted by the sum of the weighted average number of ordinary shares outstanding and dilutive potential ordinary shares. Potential ordinary shares are treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share. Rights to matching shares are considered dilutive when the actual fulfillment of any performance conditions as of the reporting date would give a right to ordinary shares. Financial assets Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. Regular purchases and sales of financial assets are recognized on the settlement date. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. Separate assets or liabilities are recognized if any rights and obligations are created or retained in the transfer. The Company classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, and available-for-sale. Financial assets are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the income statement. The fair values of quoted financial investments and derivatives are based on quoted market prices or rates. If official rates or market prices are not available, fair values are calculated by discounting the expected future cash flows at prevailing interest rates. Valuations of foreign exchange options and Interest Rate Guarantees (IRG) are made by using the Black-Scholes formula. Inputs to the valuations are market prices for implied volatility, foreign exchange and interest rates. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss either are designated as such at initial recognition or are financial assets held for trading. A financial asset is classified as held for trading if it is acquired principally for the purpose of selling in the near term. Derivatives are classified as held for trading, unless they are designated as hedging instruments for the purpose of hedge accounting. Assets held for trading are classified as current assets. Gains or losses arising from changes in the fair values of the “Financial assets at fair value through profit or loss” category (excluding derivatives) are presented in the income statement within Financial income in the period in which they arise. Derivatives are presented in the income statement either as Cost of sales, Other operating income, Financial income or Financial expense, depending on the intent with the transaction. Loans and receivables Receivables, including those that relate to customer financing, are subsequently measured at amortized cost using the effective interest rate method, less allowances for impairment charges. Trade receivables include amounts due from customers. The balance represents amounts billed to customers as well as amounts where risk and rewards have been transferred to the customer but the invoice has not yet been issued. Collectability of the receivables is assessed for purposes of initial revenue recognition. Available-for-sale Investments in liquid bonds with low credit risk which are not held for trading are classified as available-for-sale. non-current. available-for-sale Dividends on available-for-sale Changes in the fair value of monetary securities denominated in a foreign currency and classified as available-for-sale non-monetary non-monetary available-for-sale available-for-sale Impairment in relation to financial assets At each balance sheet date, the Company assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of equity securities classified as available-for-sale, available-for-sale An assessment of impairment of receivables is performed when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the trade receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognized in the income statement within selling expenses. When a trade receivable is finally established as uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited to selling expenses in the income statement. Financial liabilities Financial liabilities are recognized when the Company becomes bound to the contractual obligations of the instrument. Financial liabilities are derecognized when they are extinguished, i.e., when the obligation specified in the contract is discharged, cancelled or expires. Borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. Trade payables Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. Fair value hedging and fair value hedge accounting The purpose of fair value hedges is to hedge the variability in the fair value of fixed-rate debt (issued bonds) from changes in the relevant benchmark yield curve for its entire term by converting fixed interest payments to a floating rate (e.g., STIBOR or LIBOR) by using interest rate swaps (IRS). The credit risk/ spread is not hedged. The fixed leg of the IRS is matched against the cash flows of the hedged bond. Hereby, the fixed-rate bond/debt is converted into a floating-rate debt in accordance with the policy. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, when hedge accounting is applied. The Company only applies fair value hedge accounting for hedging fixed interest risk on borrowings. Both gains and losses relating to the interest rate swaps hedging fixed rate borrowings and the changes in the fair value of the hedged fixed rate borrowings attributable to interest rate risk are recognized in the income statement within Financial expenses. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortized to the income statement over the remaining period to maturity. When applying fair value hedge accounting, derivatives are initially recognized at fair value at trade date and subsequently re-measured At the inception of the hedge, the Company documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of the hedged items. The fair values of various derivative instruments used for hedging purposes are disclosed in Note C20, “Financial risk management and financial instruments.” Movements in the hedging reserve in OCI are shown in Note C16, “Equity and other comprehensive income.” The fair value of a hedging derivative is classified as a non-current Financial guarantees Financial guarantee contracts are initially recognized at fair value (i.e., usually the fee received). Subsequently, these contracts are measured at the higher of: • The amount determined as the best estimate of the net expenditure required to settle the obligation according to the guarantee contract. • The recognized contractual fee less cumulative amortization when amortized over the guarantee period, using the straight-line-method. • The best estimate of the net expenditure comprising future fees and cash flows from subrogation rights. Inventories Inventories are measured at the lower of cost or net realizable value on a first-in, first-out Risks of obsolescence have been measured by estimating market value based on future customer demand and changes in technology and customer acceptance of new products. A significant part of Inventories is Contract work in progress (CWIP). Recognition and derecognition of CWIP relates to the Company’s revenue recognition principles meaning that costs incurred under a customer contract are recognized as CWIP. When revenue is recognized, CWIP is derecognized and is instead recognized as Cost of sales. In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied. Goodwill As from the acquisition date, goodwill acquired in a business combination is allocated to each cash-generating unit (CGU) of the Company expected to benefit from the synergies of the combination. An annual impairment test for the CGUs to which goodwill has been allocated is performed in the fourth quarter, or when there is an indication of impairment. An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The recoverable amount is the higher of the value in use and the fair value less costs of disposal. In assessing value in use, the estimated future cash flows after tax are discounted to their present value using an after-tax before-tax before-tax Additional disclosure is required in relation to goodwill impairment testing: see Note C2, “Critical accounting estimates and judgments” below and Note C10, “Intangible assets.” Intangible assets Intangible assets other than goodwill Intangible assets other than goodwill comprise intangible assets acquired through business combinations, such as patents, customer relations, trademarks and software, as well as capitalized development expenses and separately acquired intangible assets, mainly consisting of software. At initial recognition, acquired intangible assets related to business combinations are stated at fair value and capitalized development expenses and software are stated at cost. Subsequent to initial recognition, these intangible assets are stated at initially recognized amounts less accumulated amortization and any impairment. Amortization and any impairment losses are included in Research and development expenses, which mainly consists of capitalized development expenses and technology; in Selling and administrative expenses, which mainly consists of expenses relating to customer relations and brands; and in Cost of sales. Costs incurred for development of products to be sold, leased, or otherwise marketed or intended for internal use are capitalized as from when technological and economic feasibility has been established until the product is available for sale or use. Research and development expenses directly related to orders from customers are accounted for as a part of Cost of sales. Other research and development expenses are charged to income as incurred. Amortization of acquired intangible assets, such as patents, customer relations, trademarks, and software, is made according to the straight-line method over their estimated useful lives, not exceeding ten years. The Company has not recognized any intangible assets with indefinite useful life other than goodwill. Impairment tests are performed whenever there is an indication of possible impairment. Tests are performed as for goodwill, see above. However, intangible assets not yet available for use are tested annually. Corporate assets have been allocated to cash-generating units in relation to each unit’s proportion of total net sales. The amount related to corporate assets is not significant. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied. Property, plant, and equipment Property, plant, and equipment consist of real estate, machinery, servers and other technical assets, other equipment, tools and installation and construction in process and advance payment. They are stated at cost less accumulated depreciation and any impairment losses. Depreciation is charged to income, on a straight-line basis, over the estimated useful life of each component of an item of property, plant, and equipment, including buildings. Estimated useful lives are, in general, 25–50 years for real estate and 3–10 years for machinery and equipment. Depreciation and any impairment charges are included in Cost of sales, Research and development or Selling and administrative expenses. The Company recognizes in the carrying amount of an item of property, plant, and equipment the cost of replacing a component and derecognizes the residual value of the replaced component. Impairment testing as well as recognition or reversal of impairment of property, plant and equipment is performed in the same manner as for intangible assets other than goodwill, see description under “Intangible assets other than goodwill” above. Gains and losses on disposals are determined by comparing the proceeds less cost to sell with the carrying amount and are recognized within Other operating income and expenses in the income statement. Leasing Leasing when the Company is the lessee Leases on terms in which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that type of asset, although the depreciation period must not exceed the lease term. Other leases are operating leases, and the leased assets under such contracts are not recognized on the balance sheet. Costs under operating leases are recognized in the income statement on a straight-line basis over the term of the lease. Lease incentives received are recognized as an integral part of the total lease expense, over the term of the lease. Leasing when the Company is the lessor Leasing contracts with the Company as lessor are classified as finance leases when the majority of risks and rewards are transferred to the lessee, and otherwise as operating leases. Under a finance lease, a receivable is recognized at an amount equal to the net investment in the lease and revenue is recognized in accordance with the revenue recognition principles. Under operating leases the equipment is recorded as property, plant and equipment and revenue as well as depreciation is recognized on a straight-line basis over the lease term. Income taxes Income taxes in the consolidated financial statements include both current and deferred taxes. Income taxes are reported in the income statement unless the underlying item is reported directly in equity or OCI. For those items, the related income tax is also reported directly in equity or OCI. A current tax liability or asset is recognized for the estimated taxes payable or refundable for the current year or prior years. Deferred tax is recognized for temporary differences between the book values of assets and liabilities and their tax values and for tax loss carry-forwards. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences and tax loss carry-forwards can be utilized. In the recognition of income taxes, the Company offsets current tax receivables against current tax liabilities and deferred tax assets against deferred tax liabilities in the balance sheet, when the Company has a legal right to offset these items and the intention to do so. Deferred tax is not recognized for the following temporary differences: goodwill not deductible for tax purposes, for the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and for differences related to investments in subsidiaries when it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is measured at the tax rate that is expected to be applied to the temporary differences when they reverse, based on the tax laws that have been enacted or substantively enacted by the reporting date. An adjustment of deferred tax asset/liability balances due to a change in the tax rate is recognized in the income statement, unless it relates to a temporary difference earlier recognized directly in equity or OCI, in which case the adjustment is also recognized in equity or OCI. The measurement of deferred tax assets involves judgment regarding the deductibility of costs not yet subject to taxation and estimates regarding sufficient future taxable income |
C2 Critical accounting estimate
C2 Critical accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2017 | |
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C2 Critical accounting estimates and judgments | C2 Critical accounting estimates and judgments The preparation of financial statements and application of accounting standards often involve management’s judgment and the use of estimates and assumptions deemed to be reasonable at the time they are made. However, other results may be derived with different judgments or using different assumptions or estimates, and events may occur that could require a material adjustment to the carrying amount of the asset or liability affected. Examples of this could occur at change of strategy or restructuring. Judgments for accounting policies to be applied as well as estimates may also be impacted due to this. Following are the most important accounting policies subject to such judgments and the key sources of estimation uncertainty that the Company believes could have the most significant impact on the reported results and financial position. The information in this note is grouped as per: • Key sources of estimation uncertainty • Judgments management has made in the process of applying the Company’s accounting policies. Revenue recognition Key sources of estimation uncertainty When estimating total contract revenue and cost examples of factors to consider are customer volumes in relation to discounts, the Company’s performance in relation to the customer contracts and loss provisions. As disclosed in Note C3 “Segment information” there is no customer for which revenues exceeds 10% of the Company’s total revenue. It is, however, also disclosed that most of the sales are derived from large, multi-year agreements with a limited number of significant customers. See also comment about change in accounting estimates for customer contracts under Provisions below. For further discussion on revenue recognition, see Note C1, “Significant accounting policies” and Note C4, “Net sales.” Judgments made in relation to accounting policies applied Parts of the Company’s sales are generated from large and complex customer contracts. Managerial judgment is applied regarding, among other aspects, conformance with acceptance criteria and if transfer of risks and rewards to the buyer have taken place to determine if revenue and costs should be recognized in the current period, degree of completion and the customer credit standing to assess whether payment is likely or not to justify revenue recognition. Trade and customer finance receivables Key sources of estimation uncertainty The Company monitors the financial stability of its customers and the environment in which they operate to make estimates regarding the likelihood that the individual receivables will be paid. Total allowances for estimated losses as of December 31, 2017, were SEK 3.6 (1.7) billion or 5.1% (2.2%) of gross trade and customer finance receivables. For further detailed information, see Note C14, “Trade receivables and customer finance.” Credit risks for outstanding customer finance credits are regularly assessed as well, and allowances are recorded for estimated losses. Inventory valuation Key sources of estimation uncertainty Inventories are valued at the lower of cost and net realizable value. Estimates are required in relation to forecasted sales volumes and inventory balances. In situations where excess inventory balances are identified, estimates of net realizable values for the excess volumes are made. Inventory allowances for estimated losses as of December 31, 2017, amounted to SEK 2.4 (2.4) billion or 9% (7%) of gross inventory. For further detailed information, see Note C13, “Inventories.” Deferred taxes Key sources of estimation uncertainty Deferred tax assets and liabilities are recognized for temporary differences and for tax loss carry-forwards. Deferred tax is recognized net of valuation allowances. The valuation of temporary differences and tax loss carry-forwards, is based on management’s estimates of future taxable profits in different tax jurisdictions against which the temporary differences and loss carry-forwards may be utilized. The largest amounts of tax loss carry-forwards are reported in Sweden, with an indefinite period of utilization (i.e. with no expiry date). For further detailed information, please refer to Note C8, “Taxes.” At December 31, 2017, the value of deferred tax assets amounted to SEK 21.2 (15.5) billion. The deferred tax assets related to loss carry-forwards are reported as non-current Accounting for income tax, value added tax, and other taxes Key sources of estimation uncertainty Accounting for these items is based upon evaluation of income, value added and other tax rules in all jurisdictions where the Company performs activities. The total complexity of rules related to taxes and the accounting for these require management’s involvement in judgments regarding classification of transactions and in estimates of probable outcomes of claimed deductions and/or disputes. Acquired intellectual property rights and other intangible assets, including goodwill Key sources of estimation uncertainty At initial recognition, future cash flows are estimated, to ensure that the initial carrying values do not exceed the expected discounted cash flows for the items of this type of assets. After initial recognition, impairment testing is performed whenever there is an indication of impairment, in addition goodwill impairment testing is performed at least once per year. Negative deviations in actual cash flows compared to estimated cash flows as well as new estimates that indicate lower future cash flows might result in recognition of impairment charges. As disclosed in note C10, “Intangible assets” impairment has been recognized due to significant changes during 2017 in the accounting estimates for future cash flows. Write-downs for intangible assets and goodwill amounted to SEK 17.2 billion for 2017. At December 31, 2017, the amount of acquired intellectual property rights and other intangible assets amounted to SEK 32.0 (51.1) billion, including goodwill of SEK 27.8 (43.4) billion. For further discussion on goodwill, see Note C1, “Significant accounting policies”. Estimates related to acquired intangible assets are based on similar assumptions and risks as for goodwill. For more information, see Note C10, “Intangible assets.” Judgments made in relation to accounting policies applied At initial recognition and subsequent remeasurement, management judgments are made, both for key assumptions and regarding impairment indicators. In the purchase price allocation made for each acquisition, the purchase price shall be assigned to the identifiable assets, liabilities and contingent liabilities based on fair values for these assets. Any remaining excess value is reported as goodwill. This allocation requires management judgment as well as the definition of cash-generating units for impairment testing purposes. Other judgments might result in significantly different results and financial position in the future. Provisions Key sources of estimation uncertainty Provisions are mainly related to estimates for restructuring program execution and additional costs and settlements in relation to customers and suppliers. Other sources for estimation uncertainty are patent and other litigations as well as for unresolved income tax and value added tax issues. As commented above in the initial part of this note the amounts may come to differ due future reassessments and outcomes. As disclosed in note C18, “Provisions” provisions have been recognized due to significant changes during 2017 in the accounting estimates for customer contracts resulting in identification of onerous contracts. At December 31, 2017, provisions amounted to SEK 9.9 (6.4) billion. For further detailed information, see Note C18, “Provisions.” Judgments made in relation to accounting policies applied Whether a present obligation is probable or not requires judgment. The nature and type of risks for these provisions differ and management’s judgment is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not. Contingent liabilities Key sources of estimation uncertainty As disclosed under ‘Provisions’ there are uncertainties in the estimated amounts. The same type of uncertainty exists for contingent liabilities. Judgments made in relation to accounting policies applied As disclosed under Note C1, “Significant accounting policies” a potential obligation that is not likely to result in an economic outflow is classified as a contingent liability, with no impact on the Company’s financial statements. However, should an obligation in a later period be deemed to be probable, then a provision shall be recognized, impacting the financial statements. Pension and other post-employment benefits Key sources of estimation uncertainty Accounting for the costs of defined benefit pension plans and other applicable post-employment benefits is based on actuarial valuations, relying on key estimates for discount rates, future salary increases, employee turnover rates and mortality tables. The discount rate assumptions are based on rates for high-quality fixed-income investments with durations as close as possible to the Company’s pension plans. In countries where there is not a deep market in high-quality corporate bonds, the market yields on government bonds shall be applied. The impact of applying an alternative discount rate based on Swedish covered bonds is disclosed in Note C17, “Post-employment benefits.” At December 31, 2017, defined benefit obligations for pensions and other post-employment benefits amounted to SEK 87.6 (87.2) billion and fair value of plan assets to SEK 64.9 (64.5) billion. For more information on estimates and assumptions, see Note C17, “Post-employment benefits.” Foreign exchange risks Key sources of estimation uncertainty Foreign exchange risk impacts the financial results of the Company, see further disclosure in Note C20, “Financial risk management and financial instruments,” under Foreign exchange risk. |
C3 Segment information
C3 Segment information | 12 Months Ended |
Dec. 31, 2017 | |
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C3 Segment information | C3 Segment information Operating segments from October 1, 2017 When determining Ericsson’s operating segments, consideration has been given to the financial reporting reviewed by the Chief Operating Decision Maker (CODM). Markets and what type of customers the products and services aim to attract has been considered, as well as the distribution channels they are sold through. Commonality regarding technology, research and development has also been taken into account. To best reflect the business focus and to facilitate comparability with peers, four operating segments are reported; • Networks • Digital Services • Managed Services • Other (includes Emerging Business, iconectiv, Media Solutions and Red Bee Media). Segment Networks Segment Digital Services Segment Managed services Segment Other Market areas The market areas are the Company’s primary sales channel with the responsibility to sell and deliver customer solutions. The Company operates worldwide and reports its operations divided into five geographical market areas: • Europe and Latin America • Middle East and Africa • North America • North East Asia • South East Asia, Oceania and India. In addition, licensing revenues and the majority of segment Other are externally reported as market area Other. Major customers The Company does not have any customer for which revenues from transactions have exceeded 10% of the Company’s total revenues for the years 2017, 2016 or 2015. Ericsson derives most of its sales from large, multi-year agreements with a limited number of significant customers. Out of a customer base of more than 500, mainly consisting of network operators, the 10 largest customers accounted for 45% (46%) of net sales. The largest customer accounted for approximately 7% (7%) of sales in 2017. For more information, see Risk Factors, “Market, Technology and Business Risks.” Previous segment structure, between January 1, 2017 and September 30, 2017 During this period, there were three operating segments: Networks, IT & Cloud and Media/Other. As from Oct 1, 2017, the segment structure as described above (Networks, Digital Services, Managed Services, Other) was introduced. Financials for the period between January 1 and September 30, 2017, has been restated to the present segment structure. Segment Networks Segment IT & Cloud Segment Media/Other Operating segments 2017 Networks Digital Services Managed Services Other Total Unallocated Group Segment sales 127,966 40,981 24,494 7,862 201,303 — 201,303 Net sales 127,966 40,981 24,494 7,862 201,303 — 201,303 Gross income 40,622 4,361 –1,816 1,378 44,545 — 44,545 Gross margin (%) 32 % 11 % –7 % 18 % 22 % 22 % Operating income (loss) 7,644 –27,672 –4,274 –13,824 –38,126 — –38,126 Operating margin (%) 6 % –68 % –17 % –176 % –19 % — –19 % Financial income –361 Financial expenses –843 Income after financial items –39,330 Taxes 4,267 Net income (loss) –35,063 Other segment items Share in earnings of JV and associated companies 22 8 –6 — 24 — 24 Amortization –1,104 –2,465 –14 –765 –4,348 — –4,348 Depreciation –1,883 –1,268 –193 –759 –4,103 — –4,103 Impairment losses –1,413 –9,349 –108 –8,571 –19,441 — –19,441 Restructuring expenses –4,828 –2,513 –675 –485 –8,501 — –8,501 Gains/losses on sale of investments and operations 316 –56 1 –67 194 — 194 Operating segments 2016 Networks Digital Services Managed Services Other Total Unallocated Group Segment sales 140,984 45,298 27,501 8,825 222,608 — 222,608 Net sales 140,984 45,298 27,501 8,825 222,608 — 222,608 Gross income 47,099 16,081 1,062 2,123 66,365 — 66,365 Gross margin (%) 33 % 36 % 4 % 24 % 30 % — 30 % Operating income 17,570 –6,663 –507 –4,101 6,299 — 6,299 Operating margin (%) 12 % –15 % –2 % –46 % 3 % — 3 % Financial income –115 Financial expenses –2,158 Income after financial items 4,026 Taxes –2,131 Net income 1,895 Other segment items Share in earnings of JV and associated companies 11 22 — –2 31 — 31 Amortization –1,526 –1,923 –18 –998 –4,465 — –4,465 Depreciation –2,532 –1,061 –341 –487 –4,421 — –4,421 Impairment losses –90 –38 –12 –101 –241 — –241 Reversals of impairment losses 5 2 1 — 8 — 8 Restructuring expenses –3,413 –3,176 –382 –596 –7,567 — –7,567 Gains/losses on sale of investments and operations 72 27 18 6 123 — 123 Operating segments 2015 Networks Digital Services Managed Service Other Total Segments Unallocated Group Segment sales 157,791 49,443 30,597 9,089 246,920 — 246,920 Net sales 157,791 49,443 30,597 9,089 246,920 — 246,920 Gross income 59,653 21,264 1,655 3,246 85,818 — 85,818 Gross margin (%) 38 % 43 % 5 % 36 % 35 % — 35 % Operating income 28,290 –3,389 –19 –3,077 21,805 — 21,805 Operating margin (%) 18 % –7 % — –34 % 9 % — 9 % Financial income 525 Financial expenses –2,458 Income after financial items 19,872 Taxes –6,199 Net income 13,673 Other segment items Share in earnings of JV and associated companies –1 –33 10 –14 –38 — –38 Amortization –2 042 –2 469 –47 –960 –5 518 — –5,518 Depreciation –2 865 –1 012 –388 –440 –4 705 — –4,705 Impairment losses — — — –20 –20 — –20 Reversals of impairment losses 10 3 1 2 16 — 16 Restructuring expenses –2 765 –1 875 –238 –162 –5 040 — –5,040 Gains/losses on sale of investments and operations –32 –10 –7 — –49 — –49 Market areas Net sales Non-current 5) 2017 2016 2015 2017 2016 2015 South East Asia, Oceania & India 30,568 32,597 32,155 512 690 668 North East Asia 4) 23,506 27,185 28,106 1,516 1,556 2,005 North America 3) 49,621 52,003 55,063 8,387 14,650 14,870 Europe & Latin America 1) 2) 56,175 62,543 73,603 39,559 59,737 55,325 Middle East & Africa 25,073 28,104 33,002 63 86 139 Other 1)2)3)4) 16,360 20,176 24,991 — — — Total 201,303 222,608 246,920 50,037 76,719 73,007 1) Of which in Sweden 6) 2,989 3,123 3,796 34,381 53,111 48,467 2) Of which in EU 6) 36,072 38,525 45,585 37,895 57,759 53,759 3) Of which in the United States 6) 52,322 56,748 64,299 7,092 11,053 12,325 4) Of which in China 6) 14,937 19,156 18,977 1,123 530 1,547 5) Total non-current 6) Including IPR revenue reported under Other above. For employee information, see Note C28, “Information regarding members of the Board of Directors, the Group management and employees.” |
C4 Net sales
C4 Net sales | 12 Months Ended |
Dec. 31, 2017 | |
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C4 Net sales | C4 Net sales Net sales 2017 2016 2015 Sales of products and network rollout services 123,990 135,778 150,775 Professional Services sales 69,408 76,816 81,749 License revenues 7,905 10,014 14,396 Net sales 201,303 222,608 246,920 Export sales from Sweden 86,812 107,036 117,486 |
C5 Expenses by nature
C5 Expenses by nature | 12 Months Ended |
Dec. 31, 2017 | |
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C5 Expenses by nature | C5 Expenses by nature Expenses by nature 2017 2016 2015 Goods and services 128,211 133,848 137,458 Employee remuneration 76,502 77,774 80,054 Amortization and depreciation 8,451 8,886 10,223 Impairments and obsolescence allowances, net of reversals 11,531 1,325 1,438 Financial expenses 843 2,158 2,458 Taxes –4,267 2,131 6,199 Expenses incurred 221,271 226,122 237,830 Inventory increase/decrease (–/+) 1) 4,070 –606 –394 Additions to capitalized development –1,444 –4,483 –3,548 Expenses charged to the income statement 223,897 221,033 233,888 1) The inventory changes are based on changes of net inventory values. Total restructuring charges in 2017 were SEK 8.5 (7.6) billion and were primarely related to the initiated cost reduction program. The restructuring charges in 2017 includes mainly severence cost and the write-down of SEK –1.3 billion of the ICT center in Canada. Restructuring charges are included in the expenses presented above. Restructuring charges by function 2017 2016 2015 Cost of sales 5,242 3,475 2,274 R&D expenses 2,307 2,739 2,021 Selling and administrative expenses 952 1,353 745 Total restructuring charges 8,501 7,567 5,040 |
C6 Other operating income and e
C6 Other operating income and expenses | 12 Months Ended |
Dec. 31, 2017 | |
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C6 Other operating income and expenses | C6 Other operating income and expenses Other operating income and expenses 2017 2016 2015 Other operating income Gains on sales of intangible assets and PP&E 47 423 363 Gains on sales of investments and operations 1) 324 219 1 Other operating revenues 783 1,345 1,204 Total other operating income 1,154 1,987 1,568 Other operating expenses Losses on sales of intangible assets and PP&E –74 –509 –158 Losses on sales of investments and operations 1) –130 –96 –50 Write-down of goodwill 2) –12,966 — — Other operating expenses 3) –116 –978 –1,207 Total other operating expenses –13,286 –1,583 –1,415 1) Includes divestments presented in Note C26, “Business combinations.” 2) For more information about the write-down of goodwill, see Note C10, “Intangible assets.” 3) Includes revaluation of cash flow hedges of SEK 0 billion (SEK –0.9 billion in 2016 and SEK –1.1 billion in 2015) partly offset by result from trading activities. |
C7 Financial income and expense
C7 Financial income and expenses | 12 Months Ended |
Dec. 31, 2017 | |
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C7 Financial income and expenses | C7 Financial income and expenses Financial income and expenses 2017 2016 2015 Financial Financial Financial Financial Financial Financial Contractual interest on financial assets –75 — 32 — 385 — Of which on financial assets at fair value through profit or loss –92 — –316 — –110 — Contractual interest on financial liabilities — –1,027 — –1,355 — –1,428 Net gains/losses on: Instruments at fair value through profit or loss 1) –231 543 –68 –729 190 –760 Of which included in fair value hedge relationships — 2 — 71 — 152 Available for sale 40 — — — — — Loans and receivables –102 — –79 — –53 — Liabilities at amortized cost — 72 — 218 — 213 Other financial income and expenses 7 –431 — –292 3 –483 Total –361 –843 –115 –2,158 525 –2,458 1) Excluding net loss from operating assets and liabilities, SEK 451 million (net loss of SEK 234 million in 2016 and net loss of SEK 165 million in 2015), reported as Cost of sales. |
C8 Taxes
C8 Taxes | 12 Months Ended |
Dec. 31, 2017 | |
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C8 Taxes | C8 Taxes The Company’s tax benefit for 2017 was SEK 4,267 (–2,131) million or 10.8% (52.9%) of income after financial items. The tax rate may vary between years depending on business and geographical mix. Items reported for income taxes include a reasonable estimate of the impact of the material aspects of the United Sates Tax Cuts and Jobs Act, which was signed into law on December 22, 2017, on the current and deferred tax assets and liabilities. Income taxes recognized in the income statement 2017 2016 2015 Current income taxes for the year –4,168 –3,654 –6,641 Current income taxes related to prior years 83 –489 –104 Deferred tax income/expense (+/–) 8,355 2,017 546 Share of taxes in joint ventures and associated companies –3 –5 — Tax expense/benefit 4,267 –2,131 –6,199 A reconciliation between reported tax expense for the year and the theoretical tax expense that would arise when applying statutory tax rate in Sweden, 22.0%, on the consolidated income before taxes, is shown in the table below. Tax effects of non-deductible Reconciliation of Swedish income tax rate with effective tax rate 2017 2016 2015 Expected tax expense at Swedish tax rate 22.0% 8,652 –886 –4,372 Effect of foreign tax rates 205 –536 –1,101 Current income taxes related to prior years 83 –489 –104 Remeasurement of tax loss carry-forwards –150 143 –250 Remeasurement of deductible temporary differences 127 119 185 Tax effect of non-deductible –4,144 –1,357 –1,559 Tax effect of non-taxable 480 935 981 Tax effect of changes in tax rates –986 –60 21 Tax expense/benefit 4,267 –2,131 –6,199 Effective tax rate 10.8 % 52.9 % 31.2 % Deferred tax balances Deferred tax assets and liabilities are derived from the balance sheet items as shown in the table below. Tax effects of temporary differences and tax loss carry-forwards Deferred Deferred Net balance 2017 Intangible assets and property, plant and equipment 894 2,374 Current assets 2,667 866 Post-employment benefits 4,886 704 Provisions 1,846 15 Other 3,556 275 Loss carry-forwards 10,712 Deferred tax assets/liabilities 24,561 4,234 20,327 Netting of assets/liabilities –3,333 –3,333 Deferred tax balances, net 21,228 901 20,327 2016 Intangible assets and property, plant and equipment 1,223 4,173 Current assets 2,352 501 Post-employment benefits 4,382 692 Provisions 1,631 13 Other 4,557 274 Loss carry-forwards 4,883 — Deferred tax assets/liabilities 19,028 5,653 13,375 Netting of assets/liabilities –3,506 –3,506 Deferred tax balances, net 15,522 2,147 13,375 Changes in deferred taxes, net 2017 2016 Opening balance, net 13,375 10,711 Recognized in net income (loss) 8,355 2,017 Recognized in other comprehensive income (loss) –563 521 Acquisitions/disposals of subsidiaries — –57 Reclassification to current tax –462 — Currency translation differences –378 183 Closing balance, net 20,327 13,375 Tax effects reported directly in Other comprehensive income (loss) amount to SEK –563 (521) million, of which actuarial gains and losses related to pensions constituted SEK –547 (520) million. Deferred tax assets are only recognized in countries where the Company expects to be able to generate corresponding taxable income in the future to benefit from tax reductions. Deferred tax assets and liabilites have been adjusted for the effect of the reduction of the U.S. corporate income tax rate. Tax loss carry-forwards Significant tax loss carry-forwards are related to Sweden, the United States and Germany. These countries have long or indefinite periods of utilization. Of the total SEK 10,712 (4,883) million recognized deferred tax assets related to tax loss carry-forwards, SEK 8,795 (3,774) million relates to Sweden. Deferred tax assets regarding tax loss carry-forwards are reported to the extent that realization of the related tax benefit through future taxable profits is probable also when considering the period during which these can be utilized, as described below. As of December 31, 2017, the recognized tax loss carry-forwards amounted to SEK 47,360 (20,929) million. The increase is primarily attributable to taxable losses realized in 2017, by Swedish legal entities. Under Swedish law, tax losses can be carried forward indefinitely. The tax value of these loss carry-forwards is reported as a tax asset based on the indefinite utilization period and the expectation that significant taxable income will be realized in future years by these Swedish legal entities to offset these loss carry-forwards. The final years in which the recognized tax loss carry-forwards can be utilized are shown in the following table. Tax loss carry-forwards Year of expiration Tax loss carry-forwards Tax 2018 — — 2019 37 9 2020 74 15 2021 197 32 2022 870 218 2023 or later 46,182 10,438 Total 47,360 10,712 In addition to the table above there are tax loss carry-forwards of SEK 4,544 (3,936) million at a tax value of SEK 842 (950) million that have not been recognized due to judgments of the possibility they will be used against future taxable profits in the respective jurisdictions. The majority of these tax loss carry-forwards have an expiration date in excess of five years. |
C9 Earnings per share
C9 Earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
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C9 Earnings per share | C9 Earnings per share Earnings per share 2017 2016 2015 Basic Net income (loss) attributable to stockholders of the Parent Company (SEK million) –35,206 1,716 13,549 Average number of shares outstanding, basic (millions) 3,277 3,263 3,249 Earnings (loss) per share, basic (SEK) –10.74 0.53 4.17 Diluted Net income (loss) attributable to stockholders of the Parent Company (SEK million) –35,206 1,716 13,549 Average number of shares outstanding, basic (millions) 3,277 3,263 3,249 Dilutive effect for stock purchase (millions) — 40 33 Average number of shares outstanding, diluted (millions) 3,277 3,303 3,282 Earnings (loss) per share, diluted (SEK) –10.74 0.52 4.13 When a company reports a loss, the number of shares used for calculating earnings diluted per share shall be the same as for basic calculation. |
C10 Intangible assets
C10 Intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
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C10 Intangible assets | C10 Intangible assets Intangible assets 2017 Capitalized development expenses Goodwill IPR 1) other intangible assets For internal use To be Acquired Internal Total Total Total Cost Opening balance 18,246 2,213 1,847 22,306 43,405 57,340 Acquisitions/capitalization 1,340 — 104 1,444 — 336 Balances regarding acquired/divested businesses 2) — — — — –122 101 Sales/disposals — — –1,019 –1,019 — –152 Translation difference — — — — –2,484 –1,693 Closing balance 19,586 2,213 932 22,731 40,799 55,932 Accumulated amortization Opening balance –8,243 –2,158 –1,614 –12,015 — –44,262 Amortization –2,586 — –95 –2,681 — –1,667 Sales/disposals — — 1,019 1,019 — 152 Reclassification –101 — 101 — — — Translation difference — — — — — 1,343 Closing balance –10,930 –2,158 –589 –13,677 — –44,434 Accumulated impairment losses Opening balance –2,123 –55 –37 –2,215 –18 –5,331 Impairment losses –2,058 — –187 –2,245 –12,966 –2,019 Closing balance –4,181 –55 –224 –4,460 –12,984 –7,350 Net carrying value 4,475 — 119 4,593 27,815 4,148 1) Intellectual property rights. 2) For more information on acquired/divested businesses, see Note C26, “Business combinations.” Intangible assets 2016 Capitalized development expenses Goodwill IPR 1) and other intangible assets For internal use To be marketed Acquired costs Internal costs Total Total Total Cost Opening balance 15,307 2,213 1,697 19,217 41,105 55,895 Acquisitions/capitalization 4,333 — 150 4,483 — 15 Balances regarding acquired/divested businesses 2) — — — — 585 177 Sales/disposals –1,394 — — –1,394 — –870 Reclassifications — — — — –640 640 Translation difference — — — — 2,355 1,483 Closing balance 18,246 2,213 1,847 22,306 43,405 57,340 Accumulated amortization Opening balance –7,995 –2,158 –1,441 –11,594 — –41,248 Amortization –1,642 — –173 –1,815 — –2,650 Sales/disposals 1,394 — — 1,394 — 840 Translation difference — — — — — –1,204 Closing balance –8,243 –2,158 –1,614 –12,015 — –44,262 Accumulated impairment losses Opening balance –2,038 –55 –37 –2,130 –18 –5,331 Impairment losses –85 — — –85 — — Closing balance –2,123 –55 –37 –2,215 –18 –5,331 Net carrying value 7,880 — 196 8,076 43,387 7,747 1) Intellectual property rights. 2) For more information on acquired/divested businesses, see Note C26, “Business combinations.” The total goodwill for the Company is SEK 27.8 (43.4) billion and is allocated to the operating segments Networks, with SEK 24.3 billion, Digital Services, with SEK 2.6 billion and segment Other, with SEK 0.9 billion. Managed Services does not carry goodwill. The impairment testing has been based on the segments that became effective as per October 1, 2017. More information is disclosed in Note C3 “Segment information.” Write-down during 2017 The impairment write-down of SEK 13.0 billion was triggered by the focused business strategy and the new organizational structure implemented and externally communicated during the year. In Digital Services the strategy was shifted from a services-lead to a product-lead strategy, and actions include accelerating the introduction of the new products, streamlining the services organization and tightening the contract scoping as the sales of legacy products and related services decline in 2017. For the Media Business strategic opportunities was explored. These changes have significantly impacted the approved business plans and have had a significant impact on the estimated future cash flows used for calculating the recoverable amounts. The following write-downs of goodwill have been made: Segment Digital Services of SEK 6.9 billion and segment Other SEK 6.1 billion (of which SEK 6.0 billion relates to Media Solutions). These amounts are reported on line item Other operating income and expenses. In addition to goodwill, the following write-downs of intangibles and capitalized development expenses have been made: Segment Networks SEK 0.4 billion related to technologies that are no longer planned to be used, segment Digital Services SEK 1.8 billion related to intangibles, of which Sunrise technology SEK 0.5 billion and capitalized development expenses following from the focused business strategy, segment Other SEK 2.0 billion related to the changed strategy for the Media Solutions and Red Bee Media businesses, of which intangibles for Red Bee SEK 0.8 billion. These amounts are reported on line items Research and development expenses SEK 2.6 billion and Selling and administrative expenses SEK 1.6 billion. Impairment write-down by Segment 2017 SEK billion Networks Digital Services Other Total Goodwill — 6.9 6.1 1 ) 13.0 Intangible assets 0.1 0.9 1.0 2.0 Capitalized development expenses 0.3 0.9 1.0 2.2 Total write-down 0.4 8.7 8.1 17.2 1) Of which Media Solutions SEK 6.0 billion and Red Bee Media SEK 0.1 billion. Goodwill allocation The goodwill in 2016 was tested for the segments Networks, IT & Cloud and Media. There was no impairment indication in the segment structure at the end of the third quarter 2017. In the fourth quarter of 2017, goodwill was reallocated to the new segments Networks, Digital Services and Other. For the allocation a relative value approach was considered but was not used, since the new segments are from an acquisition point of view essentially the same as the previous segments Networks, IT & Cloud and Media. Instead the goodwill values for the previous Networks segment was allocated to the current Networks segment, the values for the previous IT & Cloud segment was allocated to the current segment Digital Services and the values for the previous Media segment was allocated to three Cash Generating Units (CGU:s), within the current segment Other. The allocation within this segment was made using the relative value approach, except for the goodwill related to one acquisition, belonging to Media solutions, where the alternative approach was used. No goodwill was allocated to the current segment Managed Services, which was carved out of the previous Networks and IT & Cloud segments. The reason for not allocating goodwill to this segment is that it has not grown the business by external acquisitions. Segment Other consists of three CGU:s. This is a result of the change in strategic direction and organization, where various options like partnerships, divestments and continued in-house Impairment tests Each operating segment is a CGU, except for segment Other which consists of three CGU:s. The goodwill impairment testing is based on five-year business plans for all CGU:s, except for two within segment Other, where fair value less cost of disposal has been used. Value in use has been applied which, except for two CGU:s, see below, which means that the recoverable amounts for CGU:s are established as the present value of expected future cash flows based on business plans approved by management. Estimation of future cash flows includes assumptions mainly for the following key financial parameters: • Sales growth • Development of operating income (based on operating margin or cost of goods sold and operating expenses relative to sales) • Development of working capital and capital expenditure requirements. • The assumptions regarding industry-specific market drivers and market growth are based on industry sources as input to the projections made within the Company for the development 2017–2023 for key industry parameters: • By 2023, less than 35 years after the introduction of digital mobile technology, it’s predicted that there will be 9.1 billion mobile subscriptions. • The number of mobile subscriptions is estimated to grow from around 7.8 billion by the end of 2017 to around 9.1 billion by the end of 2023. Out of all mobile subscriptions, 7.3 billion will be associated with a smartphone. The number of 5G subscriptions is forecasted to reach 1 billion by the end of 2023. • By 2023, over 30 billion connected devices are forecasted, of which around 20 billion will be related to the IoT. Connected IoT devices include connected cars, machines, meters, sensors, point-of-sale • Mobile data traffic volume is estimated to increase by around eight times in the period 2017–2023. The mobile traffic is driven by smartphone users and video traffic. Smartphone traffic will grow by around nine times, and mobile video traffic is forecast to grow by around 50% annually through 2023 to account for approximately 75% of all mobile data traffic. The assumptions are also based upon information gathered in the Company’s long-term strategy process, including assessments of new technology, the Company’s competitive position and new types of business and customers, driven by the continued integration of telecom, data, and media industries. For the value in use method the impairment testing is based on specific estimates for the first five years and with a reduction of nominal annual growth rate to an average GDP growth of 1% (1%) per year thereafter. An after-tax after-tax During the year various options including divestments have been evaluated for the two CGU:s Media Solutions and Red Bee Media. As a result of this indicative market bids became available and therefore the fair value less cost of disposal method was used for these two CGU:s. The indicative market bids have been classified as level 3 in the fair value hierarchy. There are no remaining goodwill values for these units. In addition, when a reasonably higher discount rate of 11.0% has been applied in the impairment tests, headroom for the CGU:s Networks and iconectiv is still positive. For segment Digital Services the remaining goodwill value after the 2017 write-down is SEK 2.6 billion and the remaining value of intangible assets is SEK 2.0 billion. If the discount rate in the impairment test would have been increased by two percentage points to 10.5%, all goodwill and intangible assets for this segment would have had to be written down. The Company’s discounting is based on after-tax after-tax before-tax before-tax |
C11 Property, plant and equipme
C11 Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
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C11 Property, plant and equipment | C11 Property, plant and equipment Property, plant and equipment 2017 Real estate Machinery and other technical assets Other equipment, tools and installations Construction in progress and advance payments Total Cost Opening balance 7,132 4,286 33,134 2,648 47,200 Additions 150 183 1,317 2,227 3,877 Balances regarding acquired/divested businesses –9 –134 –12 — –155 Sales/disposals –1,323 –457 –5,387 –185 –7,352 Reclassifications 757 56 2,226 –3,039 — Translation difference –197 –115 –664 –43 –1,019 Closing balance 6,510 3,819 30,614 1,608 42,551 Accumulated depreciation Opening balance –3,629 –3,651 –23,061 — –30,341 Depreciations –458 –279 –3,366 — –4,103 Balances regarding divested businesses 9 85 11 — 105 Sales/disposals 349 442 4,263 — 5,054 Translation difference 99 93 491 — 683 Closing balance –3,630 –3,310 –21,662 — –28,602 Accumulated impairment losses Opening balance –43 –3 –79 — –125 Impairment losses –297 –42 –1,872 — –2,211 Sales/disposals 200 4 1,050 — 1,254 Translation difference — –1 –9 — –10 Closing balance –140 –42 –910 — –1,092 Net carrying value 2,740 467 8,042 1,608 12,857 Contractual commitments for the acquisition of property, plant and equipment as per December 31, 2017, amounted to SEK 350 (476) million. In 2017 impairment losses have been made of SEK 2.2 (0.2) billion, where SEK 1.2 billion were related to the divest and sale of the ICT center in Canada, as rapid technology development allows the Company to consolidate test activities to the two remaining centers in Sweden. The impairment loss of SEK 2.2 billion by segment was Networks SEK 1.0 billion, Digital Services SEK 0.7 billion, Managed Services SEK 0.1 billion and Other SEK 0.4 billion. Property, plant and equipment 2016 Real estate Machinery and other technical assets Other equipment, tools and installations Construction in progress and advance payments Total Cost Opening balance 6,475 4,560 28,753 4,750 44,538 Additions 177 148 1,519 4,285 6,129 Balances regarding acquired/divested businesses –1 –53 2 — –52 Sales/disposals –1,410 –596 –2,610 –269 –4,885 Reclassifications 1,633 110 4,570 –6,315 –2 Translation difference 258 117 900 197 1,472 Closing balance 7,132 4,286 33,134 2,648 47,200 Accumulated depreciation Opening balance –3,634 –3,779 –21,208 — –28,621 Depreciations –506 –330 –3,585 — –4,421 Balances regarding divested businesses 2 26 7 — 35 Sales/disposals 643 534 2,434 — 3,611 Reclassifications 4 1 –4 — 1 Translation difference –138 –103 –705 — –946 Closing balance –3,629 –3,651 –23,061 — –30,341 Accumulated impairment losses Opening balance — –10 –6 — –16 Impairment losses –43 –1 –112 — –156 Reversals of impairment losses — 8 — — 8 Sales/disposals — — 39 — 39 Translation difference — — — — — Closing balance –43 –3 –79 — –125 Net carrying value 3,460 632 9,994 2,648 16,734 |
C12 Financial assets, non-curre
C12 Financial assets, non-current | 12 Months Ended |
Dec. 31, 2017 | |
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C12 Financial assets, non-current | C12 Financial assets, non-current Equity in joint ventures and associated companies 2017 2016 Opening balance 775 1,210 Share in earnings 24 31 Distribution of capital stock –95 — Taxes –3 –5 Dividends –77 –84 Divested business — –15 Translation difference — –362 Closing balance 1) 624 775 1) Goodwill, net, amounts to SEK 1 (1) million. There were no major holdings in joint ventures or associated companies in 2017. Significant holdings from previous years are specified below. All companies apply IFRS in the reporting to the Company as issued by IASB. Ericsson’s share of assets, liabilities and income in associated company Rockstar Consortium 2017 2016 2015 Percentage in ownership interest 21.26 % 21.26 % 21.26 % Total assets 20 22 21 Total liabilities — — 5 Net assets (100%) 20 22 16 Company’s share of net assets (21.26%) 3 3 3 Net sales — — — Income after financial items — — –642 Net income and total comprehensive income (100%) — — –642 Company’s share of net income and other comprehensive income (21.26%) — — –137 Rockstar Consortium LLC (Rockstar) is a company that was formed in 2011 by Apple, Blackberry, Ericsson, Microsoft, and Sony to purchase approximately 4,000 patent assets out of the original about 6,000 from the Nortel bankruptcy estate. On December 23, 2014, it was agreed between the owners of Rockstar and RPX Corporation (RPXC) that RPX shall purchase the remaining patents of Rockstar. The transaction occured in 2015 and after that the main part of the capital stock has been distributed to the owners. Rockstar Consortium has concluded its operations. Financial assets, non-current Other investments in shares and participations Customer finance, non-current Interest-bearing securities, non-current Derivatives, non-current Other financial assets, non-current 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Cost Opening balance 2,516 2,567 2,137 1,755 7,586 — — 452 4,648 5,365 Additions 146 133 1,788 2,704 54,687 7,593 86 — 503 785 Disposals/repayments/deductions –43 –267 –1,100 –2,333 –37,241 — — — –375 –187 Change in value in funded pension plans 1) — — — — — — — — 1,300 –1,622 Revaluation 99 2 — — 73 –7 — — 27 62 Reclassification — — –570 –12 — — — –452 — — Translation difference –50 81 –18 23 — — — — –169 245 Closing balance 2,668 2,516 2,237 2,137 25,105 7,586 86 — 5,934 4,648 Accumulated impairment losses/ allowances Opening balance –1,337 –1,292 –9 –16 — — — — –206 –183 Impairment losses/allowances –126 37 –56 –5 — — — — –1 –1 Disposals/repayments/deductions 25 –1 6 12 — — — — 77 –1 Translation difference 49 –81 — — — — — — 7 –21 Closing balance –1,389 –1,337 –59 –9 — — — — –123 –206 Net carrying value 1,279 1,179 2,178 2,128 25,105 7,586 86 — 5,811 4,442 1) This amount includes asset ceiling. For further information, see Note C17, “Post-employment benefits.” |
C13 Inventories
C13 Inventories | 12 Months Ended |
Dec. 31, 2017 | |
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C13 Inventories | C13 Inventories Inventories 2017 2016 Raw materials, components, consumables and manufacturing work in progress 4,015 5,043 Finished products and goods for resale 8,864 12,183 Contract work in progress 12,081 13,081 Inventories, net 24,960 30,307 The amount of inventories, excluding contract work in progress, recognized as expense and included in Cost of sales was SEK 58,901 (63,386) million. Contract work in progress includes amounts related to delivery-type contracts and service contracts with ongoing work in progress. Reported amounts are net of obsolescence allowances of SEK 2,425 (2,412) million. Movements in obsolescence allowances 2017 2016 2015 Opening balance 2,412 2,555 2,326 Additions, net 1,319 725 1,480 Utilization –1,210 –981 –1,295 Translation difference –91 113 44 Balances regarding acquired/divested businesses –5 — — Closing balance 2,425 2,412 2,555 |
C14 Trade receivables and custo
C14 Trade receivables and customer finance | 12 Months Ended |
Dec. 31, 2017 | |
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C14 Trade receivables and customer finance | C14 Trade receivables and customer finance Trade receivables and customer finance 2017 2016 Trade receivables excluding associated companies and joint ventures 66,487 69,430 Allowances for impairment –3,335 –1,403 Trade receivables, net 63,152 68,027 Trade receivables related to associated companies and joint ventures 58 90 Trade receivables, total 63,210 68,117 Customer finance credits 4,223 5,003 Allowances for impairment –292 –250 Customer finance credits, net 3,931 4,753 Of which current 1,753 2,625 Credit commitments for customer finance 9,706 13,082 Days sales outstanding (DSO) were 101 (95) in December 2017. Movements in allowances for impairment Trade receivables Customer finance 2017 2016 2017 2016 Opening balance 1,403 1,202 250 286 Additions 3,544 356 85 78 Utilized –1,485 –156 –3 –108 Reversal of excess amounts –48 –28 –27 –8 Reclassification –66 — — — Translation difference –13 29 –13 2 Closing balance 3,335 1,403 292 250 Aging analysis as per December 31 Of which past Of which past due and Of which Of which the following time intervals impaired in the following time intervals Total neither impaired nor past due impaired, not past due less than 90 days 90 days or more less than 90 days 90 days or more 2017 Trade receivables, excluding associated companies and joint ventures 66,487 56,059 15 2,924 4,169 220 3,100 Allowances for impairment –3,335 — –15 — — –220 –3,100 Customer finance credits 4,223 1,841 2,029 4 99 29 221 Allowances for impairment –292 — –104 — — –20 –168 2016 Trade receivables, excluding associated companies and joint ventures 69,430 58,198 62 4,406 5,423 10 1,331 Allowances for impairment –1,403 — –62 — — –10 –1,331 Customer finance credits 5,003 3,250 1,480 10 3 24 236 Allowances for impairment –250 — –64 — — –6 –180 Credit risk Credit risk is divided into three categories: credit risk in trade receivables, customer finance risk and financial credit risk, see Note C1 “Significant accounting policies” and Note C20, “Financial risk management and financial instruments.” Credit risk in trade receivables Credit risk in trade receivables is governed by a policy applicable to all legal entities in the Company. The purpose of the policy is to: • Avoid credit losses through establishing internal standard credit approval routines in all the Company’s legal entities • Ensure monitoring and risk mitigation of defaulting accounts, i.e. events of non-payment • Ensure efficient credit management within the Company and thereby improve days sales outstanding and cash flow • Define escalation path and approval process for customer credit limits. The credit worthiness of all customers is regularly assessed. Through credit management system functionality, credit checks are performed every time a sales order or an invoice is generated in the source system. These are based on the credit risk set on the customer. Credit blocks appear if past due receivables are higher than permitted levels. Release of a credit block requires authorization. Letters of credits are used as a method for securing payments from customers operating in emerging markets, in particular in markets with unstable political and/or economic environments. By having banks confirming the letters of credit, the political and commercial credit risk exposures to the Company are mitigated. Trade receivables amounted to SEK 66,487 (69,430) million as of December 31, 2017. Provisions for expected losses are regularly assessed and amounted to SEK 3,335 (1,403) million as of December 31, 2017. The Company’s nominal credit losses have, however, historically been low. The amounts of trade receivables closely follow the distribution of the Company’s sales and do not include any major concentrations of credit risk by customer or by geography. The five largest customers represented 19% (27%) of the total trade receivables in 2017. Customer finance credit risk All major commitments to finance customers are made only after approval by the Finance Committee of the Board of Directors, according to the established credit approval process. Prior to the approval of new facilities reported as customer finance, an internal credit risk assessment is conducted in order to assess the credit rating of each transaction, for political and commercial risk. The credit risk analysis is made by using an assessment tool, where the political risk rating is identical to the rating used by all Export Credit Agencies within the OECD. The commercial risk is assessed by analyzing a large number of parameters, which may affect the level of the future commercial credit risk exposure. The output from the assessment tool for the credit rating also includes an internal pricing of the risk. This is expressed as a risk margin per annum over funding cost. The reference pricing for political and commercial risk, on which the tool is based, is reviewed using information from Export Credit Agencies and prevailing pricing in the bank loan market for structured financed deals. The objective is that the internally set risk margin shall reflect the assessed risk and that the pricing is as close as possible to the current market pricing. A reassessment of the credit rating for each customer finance facility is made on a regular basis. Risk provisions related to customer finance risk exposures are only made upon events which occur after the financing arrangement has become effective and which are expected to have a significant adverse impact on the borrower’s ability and/or willingness to service the outstanding debt. These events can be political (normally outside the control of the borrower) or commercial, e.g. a borrower’s deteriorated creditworthiness. As of December 31, 2017, the Company’s total outstanding exposure related to customer finance was SEK 4,223 (5,003) million. As of December 31, 2017, the Company also had unutilized customer finance commitments of SEK 9,706 (13,082) million. Customer finance is arranged for infrastructure projects in different geographic markets and for a large number of customers. As of December 31, 2017, there were a total of 79 (81) customer finance arrangements originated by or guaranteed by the Company. The five largest facilities represented 64% (55%) of the total credit exposure in 2017. Total outstanding customer finance exposure per market area as of December 31 Percent 2017 2016 South East Asia, Oceania and India 24 17 North East Asia — — North America 7 7 Europe and Latin America 12 19 Middle East and Africa 56 56 Other 1 1 Total 100 100 The effect of risk provisions and reversals for customer finance affecting the income statement amounted to a net negative impact of SEK 59 million in 2017 compared to a net positive impact of SEK 24 million in 2016. Credit losses amounted to SEK 24 (108) million in 2017. Security arrangements for customer finance facilities normally include pledges of equipment, pledges of certain assets belonging to the borrower and pledges of shares in the operating company. If available, third-party risk coverage is, as a rule, arranged. “Third-party risk coverage” means that a financial payment guarantee covering the credit risk has been issued by a bank, an export credit agency or other financial institution. A credit risk cover from a third-party may also be issued by an insurance company. A credit risk transfer under a sub-participation Information about guarantees related to customer finance is included in Note C24, “Contingent liabilities,” and information about leasing is included in Note C27, “Leasing.” The table below summarizes the Company’s outstanding customer finance as of December 31, 2017 and 2016. Outstanding customer finance 2017 2016 Customer finance credits 4,223 5,003 Financial guarantees for third-parties 77 124 Accrued interest 14 16 Less third-party risk coverage –505 –805 Ericsson’s risk exposure, including financial guarantees 3,809 4,338 Transfers of financial assets Transfers where the Company has continuing involvement During 2017, there were no new financial assets transferred where the Company had continuing involvement. However, during 2016 the Company derecognized financial assets where it had continuing involvement. A repurchase of these assets would amount to SEK 380 (630) million. No assets or liabilities were recognized in relation to the continuing involvement. |
C15 Other current receivables
C15 Other current receivables | 12 Months Ended |
Dec. 31, 2017 | |
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C15 Other current receivables | C15 Other current receivables Other current receivables 2017 2016 Prepaid expenses 2,546 4,501 Accrued revenues 1,342 1,584 Advance payments to suppliers 338 1,384 Derivatives with a positive value 1) 1,207 1,108 Taxes 15,291 13,974 Other 1,576 1,880 Total 22,300 24,431 1) See also Note C20, “Financial risk management and financial instruments.” |
C16 Equity and other comprehens
C16 Equity and other comprehensive income (loss) | 12 Months Ended |
Dec. 31, 2017 | |
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C16 Equity and other comprehensive income (loss) | C16 Equity and other comprehensive income (loss) Capital stock 2017 Capital stock at December 31, 2017, consisted of the following: Capital stock Parent Company Number of shares Capital stock Class A shares 261,755,983 1,309 Class B shares 3,072,395,752 15,363 Total 3,334,151,735 16,672 The capital stock of the Parent Company is divided into two classes: Class A shares (quota value SEK 5.00) and Class B shares (quota value SEK 5.00). Both classes have the same rights of participation in the net assets and earnings. Class A shares, however, are entitled to one vote per share while Class B shares are entitled to one tenth of one vote per share. At December 31, 2017, the total number of treasury shares was 50,265,499 (62,192,390 in 2016 and 49,367,641 in 2015) Class B shares. Ericsson repurchased 3.0 million shares in 2017 in relation to the Stock Purchase Plan. Reconciliation of number of shares Number of shares Capital stock Number of shares Jan 1, 2017 3,331,151,735 16,657 Number of shares Dec 31, 2017 3,334,151,735 16,672 For further information about the number of shares, see the chapter Share Information. Dividend proposal The Board of Directors will propose to the Annual General Meeting 2018 a dividend of SEK 1.00 per share (SEK 1.00 in 2017 and SEK 3.70 in 2016). Additional paid in capital This relates to payments made by owners and includes share premiums paid. Retained earnings Retained earnings, including net income for the year, comprise the earned profits of the Parent Company and its share of net income in subsidiaries, joint ventures and associated companies. Retained earnings also include: Remeasurements related to post-employment benefits Actuarial gains and losses resulting from experience-based events and changes in actuarial assumptions, fluctuations in the effect of the asset ceiling, and adjustments related to the Swedish special payroll taxes. Revaluation of other investments in shares and participations The fair value reserve comprises the cumulative net change in the fair value of available-for-sale Cumulative translation adjustments The cumulative translation adjustments comprise all foreign currency differences arising from the translation of the financial statements of foreign operations and changes regarding revaluation of excess value in local currency as well as from the translation of liabilities that hedge the Company’s net investment in foreign subsidiaries. |
C17 Post-employment benefits
C17 Post-employment benefits | 12 Months Ended |
Dec. 31, 2017 | |
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C17 Post-employment benefits | C17 Post-employment benefits Ericsson sponsors a number of post-employment benefit plans throughout the Company, which are in line with market practice in each country. The year 2017 was characterized by a decrease in discount rates in most plans. In total, financial assumption changes resulted in actuarial losses on defined benefit obligations of SEK 2.1 billion. The development of plan assets was greater than expected resulting in actuarial gains of SEK 2.4 billion. Swedish plans Sweden has both defined benefit and defined contribution plans based on collective agreement between the parties in the Swedish labor market: • A defined benefit plan, known as ITP 2 (occupational pension for salaried employees in manufacturing industries and trade), complemented by a defined contribution plan, known as ITPK (supplementary retirement benefits). This is a final salary-based plan. • A defined contribution plan, known as ITP 1, for employees born in 1979 or later. • A defined contribution plan ITP 1 or alternative ITP, for employees earning more than 10 income base amount and who have opted out of the defined benefit plan ITP 2, where rules are set by the Company and approved by each employee selected to participate. The Company has by far most of its Swedish pension liabilities under defined benefit plans which are funded to 53% (55%) through Ericsson Pensionsstiftelse (a Swedish Pension Foundation). The Pensionsstiftelse covers the liability up to the value of the defined benefit obligation based on Swedish GAAP calculations. There are no funding requirements for the Swedish plans. The disability and survivors’ pension part of the ITP-plan The benefit payments are made by the Company since the liability is growing and the necessary surplus therefore is not yet reached. For the unfunded plans the Company meets the payment obligation when it falls due. The responsibility for governance of the plans and the plan assets lies with the Company and the Pensionsstiftelse. The Swedish Pensionsstiftelse is managed on the basis of a capital preservation strategy and the risk profile is set accordingly. Traditional asset-liability matching (ALM) studies are undertaken on a regular basis to allocate within different asset classes. The plans are exposed to various risks, e.g., a sudden decrease in the bond yields, which would lead to an increase in the plan liability. A sudden instability in the financial market might also lead to a decrease in fair value of plan assets held by the Pensionsstiftelse, as the holdings of plan assets partly are exposed to equity markets; however, this may be partly offset by higher values in fixed income holdings. Swedish plans are linked to inflation and higher inflation will most likely lead to a higher liability. For the time being, inflation is a low risk factor to the Swedish plans as actual rate of inflation has not reached the ceiling target set by the Central Bank of Sweden. Multi-employer plans As before, the Company has secured the disability and survivors’ pension part of the ITP Plan through an insurance solution with the insurance company Alecta. Although this part of the plan is classified as a multi-employer defined benefit plan, it is not possible to get sufficient information to apply defined benefit accounting, as for most of the accrued pension benefits in Alecta, information is missing on the allocation of earnings process between employers. Full vesting is instead registered on the last employer. Alecta is not able to calculate a breakdown of assets and provisions for each respective employer, and therefore, the disability and survivors’ pension portion of the ITP Plan has been accounted for as a defined contribution plan. Alecta has a collective funding ratio which acts as a buffer for its insurance commitments to protect against fluctuations in investment return and insurance risks. Alecta’s target ratio is 140% and reflects the fair value of Alecta’s plan assets as a percentage of plan commitments, then measured in accordance with Alecta’s actuarial assumptions, which are different from those in IAS 19R. Alecta’s collective funding ratio was 154% (149%) as of December 31, 2017. The Company’s share of Alecta’s saving premiums is 0.5%; the total share of active members in Alecta are 2.0%. The expected contribution to the plan is SEK 94 million for 2018. Contingent liabilities / Assets pledged as collateral Contingent liabilities include the Company’s mutual responsibility as a credit insured company of PRI Pensionsgaranti in Sweden. This mutual responsibility can only be imposed in the instance that PRI Pensionsgaranti has consumed all of its assets, and it amounts to a maximum of 2% of the Company’s pension liability in Sweden. The Company has a pledged business mortgage of SEK 4.5 billion to PRI Pensionsgaranti. US plans The Company operates both defined contribution and defined benefit pension plans in the US, which are a combination of final salary pension plans and contribution-based arrangements. The final salary pension plans provide benefits to members in the form of a guaranteed level of pension payable for life. The level of benefits provided depends on members’ length of service and their salary in the final years leading up to retirement. Retirees generally do not receive inflationary increases once in payment. The other type of plan is a contribution-based pension plan, which provides a benefit determined using a “cash balance” approach. The balance is credited monthly with interest credits and contribution credits, based on a combination of current year salary and length of service. The majority of benefit payments are from trustee-administered funds; however, there are also a number of unfunded plans where the Company meets the benefit payment obligation as it falls due. In the US, the Company’s policy is at least to meet or exceed the funding requirements of federal regulations. The funded level in the US Pension Plan is above the point at which minimum funding would be required for fiscal year 2017. Plan assets held in trusts are governed by local regulations and practice, as is the nature of the relationship between the Company and the trustees (or equivalent) and their composition. Responsibility for governance of the plans – including investment decisions and contribution schedules – lies with the Plan Administrative Committee (PAC). The PAC is composed of representatives from the Company. The Company’s plans are exposed to various risks associated with pension plans, i.e., a sudden decrease in bond yields would lead to an increase in the present value of the defined benefit obligation. A sudden instability in the financial markets might also lead to a decrease in the fair value of plan assets held by the trust. Pension benefits in the US are not linked to inflation; however, higher inflation poses the risk of increased final salaries being used to determine benefits for active employees. There is also a risk that the duration of payments to retirees will exceed the life expectancy in mortality tables. UK plans The Company operates both defined benefit and defined contribution plans in the UK. Most defined benefit plans in the UK are closed to future pension accrual. The defined benefit plans provide benefits to members in the form of a guaranteed level of pension payable for life. The level of benefits provided is defined by the Trust Deed & Rules and depends on members’ length of service and their salary. Pensions in payment are generally updated in line with the UK retail price index, subject to caps defined by the rules. The plans’ assets are held in trusts and are invested in a diverse range of assets. The plans are governed by local regulations and responsibility for the governance of the plans lies with the Trustee Directors, who are appointed by the Company from its employees and from the plans’ members. Independent professional trustees sit on a number of the Boards. The plans remain exposed to various risks associated with defined benefit plans, e.g. a decrease in bond yields or increase in inflation would lead to an increase in the present value of the defined benefit obligation. Alternatively, the duration of payments to retirees could exceed the life expectancy assumed in the current mortality tables leading to an increase in liabilities. A sudden instability in the financial markets might also lead to a decrease in the fair value of the plans’ assets. The Company and Trustees’ aim is to reduce the plans’ exposure to the key risks over time. Other plans The Company also sponsors plans in other countries. The main plans are in Brazil and Ireland. The plan in Brazil is a pension plan wholly funded with a net surplus of assets. The plan in Ireland is a final salary pension plan and is partly funded. The plans are managed by corporate trustees with directors appointed partly by the local company and partly by the plan members. The trustees are independent from the local company and subject to the specific country’s pension laws. Amount recognized in the Consolidated balance sheet Amount recognized in the Consolidated balance sheet Sweden US UK Other Total 2017 Defined benefit obligation (DBO) 41,166 21,005 13,246 12,228 87,645 Fair value of plan assets 21,938 20,402 14,599 8,000 64,939 Deficit/surplus (+/–) 19,228 603 –1,353 4,228 22,706 Plans with net surplus, excluding asset ceiling 1) — 83 1,685 535 2,303 Provision for post-employment benefits 2) 19,228 686 332 4,763 25,009 2016 Defined benefit obligation (DBO) 38,202 22,710 14,088 12,175 87,175 Fair value of plan assets 20,956 21,545 14,061 7,923 64,485 Deficit/surplus (+/–) 17,246 1,165 27 4,252 22,690 Plans with net surplus, excluding asset ceiling 1) — — 481 552 1,033 Provision for post-employment benefits 2) 17,246 1,165 508 4,804 23,723 1) Plans with a net surplus, i.e., where plan assets exceed DBO, are reported as Other financial assets, non-current: 2) Plans with net liabilities are reported in the balance sheet as Post-employment benefits, non-current. Total pension cost recognized in the Consolidated income statement The costs for post-employment benefits within the Company are distributed between defined contribution plans and defined benefit plans, with a trend toward defined contribution plans. Pension costs for defined contribution plans and defined benefit plans Sweden US UK Other Total 2017 Pension cost for defined contribution plans 1,096 473 173 1,228 2,970 Pension cost for defined benefit plans 1,824 168 38 592 2,622 Total 2,920 641 211 1,820 5,592 Total pension cost expressed as a percentage of wages and salaries 9.5 % 2016 Pension cost for defined contribution plans 1,061 687 185 1,287 3,220 Pension cost for defined benefit plans 1,314 167 38 595 2,114 Total 2,375 854 223 1,882 5,334 Total pension cost expressed as a percentage of wages and salaries 8.9 % 2015 Pension cost for defined contribution plans 1,136 729 136 1,239 3,240 Pension cost for defined benefit plans 1,806 81 57 609 2,553 Total 2,942 810 193 1,848 5,793 Total pension cost expressed as a percentage of wages and salaries 9.5 % Change in the net defined benefit obligation Change in the net defined benefit obligation Present 2) Fair value Total Present 2 ) Fair value Total Opening balance 87,175 –64,485 22,690 78,141 –58,178 19,963 Reclassification — — — 104 –104 — Included in the income statement Current service cost 1,793 — 1,793 1,853 — 1,853 Past service cost and gains and losses on settlements 296 — 296 –182 — –182 Interest cost/income (+/–) 2,198 –1,892 306 2,451 –2,176 275 Taxes and administrative expenses 143 45 188 53 49 102 Other –13 2 –11 –16 2 –14 4,417 –1,845 2,572 3 ) 4,159 –2,125 2,034 3 ) Remeasurements Return on plan assets excluding amounts in interest expense/income — –2,438 –2,438 — –4,280 –4,280 Actuarial gains/losses (–/+) arising from changes in demographic assumptions –396 — –396 –405 — –405 Actuarial gains/losses (–/+) arising from changes in financial assumptions 2,110 — 2,110 8,255 — 8,255 Experience-based gains/losses (–/+) –219 — –219 –1,550 — –1,550 1,495 –2,438 –943 6,300 –4,280 2,020 Other changes Translation difference –2,275 2,262 –12 1,002 –834 168 Contributions and payments from: Employers 1) –880 –583 –1,463 –902 –562 –1,464 Plan participants 27 –23 4 28 –22 6 Payments from plans: Benefit payments –2,173 2,173 — –1,568 1,568 — Settlements –141 — –141 — — — Business combinations and divestments — — — –89 52 –37 Closing balance 87,645 –64,939 22,706 87,175 –64,485 22,690 1) The expected contribution to the plans is SEK 1,364 million during 2018. 2) The weighted average duration of DBO is 20.1 years. 3) Excluding the impact of the asset ceiling of SEK 50 million in 2017 and SEK 80 million in 2016. Present value of the defined benefit obligation Sweden US UK Other Total 2017 DBO, closing balance 41,166 21,005 13,246 12,228 87,645 Of which partially or fully funded 40,665 20,319 13,246 9,465 83,695 Of which unfunded 501 686 — 2,763 3,950 2016 DBO, closing balance 38,202 22,710 14,088 12,175 87,175 Of which partially or fully funded 37,679 21,956 14,088 9,361 83,084 Of which unfunded 523 754 — 2,814 4,091 Asset allocation by asset type and geography Sweden US UK Other Total Of which 2017 Cash and cash equivalents 3,124 382 834 88 4,428 0 % Equity securities 4,079 795 3,116 2,432 10,422 16 % Debt securities 8,663 17,650 9,331 3,494 39,138 68 % Real estate 4,269 — 244 212 4,725 100 % Investment funds 1,803 1,478 160 208 3,649 66 % Assets held by insurance company — — — 1,200 1,200 100 % Other — 97 914 366 1,377 41 % Total 21,938 20,402 14,599 8,000 64,939 Of which real estate occupied by the Company — — — — — Of which securities issued by the Company — — — — — 2016 Cash and cash equivalents 1,819 414 420 373 3,026 14 % Equity securities 3,983 692 2,526 1,669 8,870 19 % Debt securities 8,791 18,286 10,010 3,888 40,975 70 % Real estate 4,093 — 132 198 4,423 100 % Investment funds 2,270 1,505 270 206 4,251 65 % Assets held by insurance company — — — 1,125 1,125 100 % Other — 648 703 464 1,815 69 % Total 20,956 21,545 14,061 7,923 64,485 Of which real estate occupied by the Company — — — — — Of which securities issued by the Company — — — — — Actuarial assumptions Financial and demographic actuarial assumptions 1) 2017 2016 Financial assumptions Discount rate, Sweden 1.6 % 1.8 % Discount rate, US 3.7 % 4.1 % Discount rate, UK 2.6 % 2.7 % Discount rate, weighted average of Total 2.5 % 2.8 % Demographic assumptions Life expectancy after age 65 in years, weighted average 23 23 1) Weighted average for the Group for disclosure purposes only. Country-specific assumptions were used for each actuarial calculation. Actuarial assumptions are assessed on a quarterly basis. See also Note C1, “Significant accounting policies” and Note C2, “Critical accounting estimates and judgments.” Sweden The defined benefit obligation (DBO) has been calculated using a discount rate based on the yields of Swedish government bonds. IAS 19 Employee Benefits prescribes that if there is not a deep market in high-quality corporate bonds, the market yields on government bonds shall be applied for the pension liability calculation. As of December 31, 2017, the discount rate applied in Sweden was 1.6% compared to 1.8% as of December 31, 2016. If the discount rate had been based on Swedish covered bonds, the discount rate would have been 2.8% as of December 31, 2017 and 3.1% as of December 31, 2016. If these discount rates based on Swedish covered bonds had been applied for the pension liability calculation, the DBO would have been approximately SEK 9 billion lower as of both December 31, 2017 and December 31, 2016. US and UK The defined benefit obligation has been calculated using a discount rate based on yields of high-quality corporate bonds, where “high-quality” has been defined as a rating of AA and above. Total remeasurements in Other comprehensive income (loss) related to post-employment benefits 2017 2016 Actuarial gains and losses (+/–) 1,210 –1,955 The effect of asset ceiling 27 254 Swedish special payroll taxes 1) –267 –65 Total 970 –1,766 1) Swedish payroll taxes are included in recognized gain/loss during the year in OCI. Sensitivity analysis of significant actuarial assumptions SEK billion 2017 2016 Impact on the DBO of an increase in the discount rate Discount rate, Sweden +0.5% –4.5 –4.3 Discount rate, US +0.5% –1.1 –1.3 Discount rate, UK +0.5% –1.5 –1.7 Discount rate, weighted average of Total +0.5% –8.1 –8.3 Impact on the DBO of an decrease in the discount rate Discount rate, Sweden –0.5% +5.2 +5.0 Discount rate, US –0.5% +1.2 +1.3 Discount rate, UK –0.5% +1.8 +1.9 Discount rate, weighted average of Total –0.5% +9.3 +9.4 |
C18 Provisions
C18 Provisions | 12 Months Ended |
Dec. 31, 2017 | |
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C18 Provisions | C18 Provisions Provisions Restructuring Customer Suppliers Warranty Other Total 2017 Opening balance 4,163 74 134 248 1,738 6,357 Additions 5,448 4,105 1,885 242 799 12,479 Reversal of excess amounts –207 — –90 –2 –63 –362 Negative effect on Income statement 12,117 Utilization/Cash out –5,327 –1,532 –262 –267 –833 –8,221 Reclassifications 1 –10 –50 5 –59 –113 Translation difference –35 5 –4 –1 –159 –194 Closing balance 4,043 2,642 1,613 225 1,423 9,946 2016 Opening balance 1,466 92 182 528 1,570 3,838 Additions 5,271 51 82 267 675 6,346 Reversal of excess amounts –130 –6 –69 –207 –277 –689 Negative effect on Income statement 5,657 Utilization/Cash out –2,440 –64 –64 –365 –220 –3,153 Reclassifications 1 –3 — 9 –15 –8 Translation difference –5 4 3 16 5 23 Closing balance 4,163 74 134 248 1,738 6,357 Provisions will fluctuate over time depending on business mix, market mix and technology shifts. Risk assessment in the ongoing business is performed monthly to identify the need for new additions and reversals. During certain years the Company undertakes restructuring activities that may require recognition of provisions. Management uses its best judgment to estimate provisions based on this assessment. Under certain circumstances, provisions are no longer required due to outcomes being more favorable than anticipated, which affect the provisions balance as a reversal. In other cases, the outcome can be negative, and if so, a charge is recorded in the income statement. For 2017, new or additional provisions amounting to SEK 12.5 billion were made, and SEK 0.4 billion of provisions were reversed. The actual cash outlays for 2017 were SEK 8.2 billion compared with the estimated SEK 4.4 billion. The higher outcome compared to the estimate relates to the restructuring and the customer project adjustments, as well as that certain provisions where identified and paid out during 2017. The expected total cash outlays in 2018 are approximately SEK 6.0 billion. Of the total provisions, SEK 3.6 (0.9) billion is classified as non-current. Restructuring provisions In 2017, SEK 5.4 billion in provisions were made and SEK 0.2 billion were reversed due to a more favorable outcome than expected. The scope of the structural efficiency measures involves service delivery, supply and manufacturing, R&D and SG&A (Selling, General and Administrative expenses). The cash outlays for restructuring provisions were SEK 5.3 billion for the full-year, compared with the expected SEK 3.2 billion. The cash outlays for the full-year also includes provisions identified and paid out during 2017. The cash outlays for 2018 for these provisions are estimated to total approximately SEK 3.0 billion. Customer related Customer related provisions include provision for contractual discounts, contractual penalties, and onerous contracts. During 2017, new provisions amounting to SEK 4.1 billion were made, mainly due to additional project costs and customer settlements. The cash outlays were SEK 1.5 billion in 2017 compared to the estimated of SEK 0.0 billion. For 2018, the cash outlays for these provisions are estimated to total approximately SEK 1.9 billlion. Supplier related Supplier related provisions include provision for supplier claims/guarantees. During 2017, new provisions amounting to SEK 1.9 billion were made and SEK 0.1 were reversed due to more favorable outcome. The cash outlays were SEK 0.3 billion in 2017 compared to the estimated of SEK 0.1 billion. For 2018, the cash outlays for this provision is estimated to total approximately SEK 0.2 billion. Warranty provisions Warranty provisions are based on historic quality rates for established products as well as estimates regarding quality rates for new products and costs to remedy the various types of faults predicted. Provisions amounting to SEK 0.2 billion were made. The actual cash outlays for 2017 were SEK 0.3 billion, in line with the expected SEK 0.1 billion. The cash outlays of warranty provisions during year 2018 are estimated to total approximately SEK 0.2 billion. Other provisions Other provisions include provisions for probable contractual penalties, tax issues, litigations, and other. During 2017, new provisions amounting to SEK 0.8 billion were made and SEK 0.1 billion were reversed due to a more favorable outcome. The cash outlays were SEK 0.8 billion in 2017 compared to the estimate of SEK 1.0 billion. For 2018, the cash outlays for other provisions are estimated to total approximately SEK 0.7 billion. |
C19 Interest-bearing liabilitie
C19 Interest-bearing liabilities | 12 Months Ended |
Dec. 31, 2017 | |
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C19 Interest-bearing liabilities | C19 Interest-bearing liabilities As of December 31, 2017, the Company’s outstanding interest-bearing liabilities was SEK 33.0 (26.7) billion. Interest-bearing liabilities 2017 2016 Borrowings, current Current part of non-current 1) 89 4,954 Other borrowings, current 2,456 3,079 Total borrowings, current 2,545 8,033 Borrowings, non-current Notes and bond loans 20,560 10,556 Other borrowings, non-current 9,940 8,097 Total borrowings, non-current 30,500 18,653 Total interest-bearing liabilities 33,045 26,686 1) Including notes and bond loans of SEK 0 (4,900) million. To secure long-term funding, the Company uses notes and bond programs together with bilateral research and development loans. All outstanding notes and bond loans are issued by the Parent Company under its Euro Medium Term Note (EMTN) program or under its U.S. Securities and Exchange Commission (SEC) Registered program. Bonds issued at a fixed interest rate are normally swapped to a floating interest rate using interest rate swaps under the Asset and liability management mandate described in Note C20, “Financial risk management and financial instruments.” Total weighted average interest rate cost for the long-term funding during the year was 1.68% (2.76%). The outstanding EUR bonds and USD bond are revalued based on changes in benchmark interest rates according to the fair value hedge methodology stipulated in IAS 39. In February 2017, the Company issued a Euro denominated 500 million 4-year 7-year In April 2017, the Company exercised its second extension option under the USD 2 billion multi-currency revolving credit facility, extending the maturity date to June 2022. In June 2017, the Company repaid the Euro demoninated 500 million bond issued in 2007. In December, Ericsson raised USD 220 million from the Nordic Investment Bank (NIB) and USD 150 million from AB Svensk Exportkredit. The credit agreements mature in 2023 and 2025 and extended Ericsson’s debt maturity profile. Of these new funds, 98 million replaced credit with NIB that was set to mature in 2019. Notes, bonds, bilateral loans and committed credit Unrealized hedge Nominal Book value Market value gain/loss (included Issued-maturing amount Coupon Currency (SEK million) (SEK million) Maturity date in book value) Notes and bond loans 2010–2020 1) 170 USD 1,394 1,488 December 23, 2020 2012–2022 1,000 4.125 % USD 8,180 2) 8,223 May 15, 2022 9 2017–2021 500 0.875 % EUR 4,897 2) 4,846 March 1, 2021 7 2017–2024 500 1.875 % EUR 4,862 2) 4,824 March 1, 2024 –7 2017–2025 1) 150 USD 1,227 1,432 December 22, 2025 Total notes and bond loans 20,560 20,813 9 Bilateral loans 2012–2021 3) 98 USD 805 830 September 30, 2021 2013–2020 4) 684 USD 5,609 5,724 November 6, 2020 2013–2023 3) 220 USD 1,797 1,972 June 15, 2023 Total bilateral loans 8,211 8,526 Committed credit Long-term committed credit facility 5) 2,000 USD — — June 5, 2022 Total committed credit — — 1) Private Placement, Swedish Export Credit Corporation (SEK). 2) Interest rate swaps are designated as fair value hedges. 3) Nordic Investment Bank (NIB), R&D project financing. 4) European Investment Bank (EIB), R&D project financing. 5) Multi-currency revolving credit facility. Unutilized. |
C20 Financial risk management a
C20 Financial risk management and financial instruments | 12 Months Ended |
Dec. 31, 2017 | |
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C20 Financial risk management and financial instruments | C20 Financial risk management and financial instruments The Company’s financial risk management is governed by a policy approved by the Board of Directors. The Finance Committee of the Board of Directors is responsible for overseeing the capital structure and financial management of the Company and approving certain matters (such as investments, customer finance commitments, guarantees and borrowing) and continuously monitors the exposure to financial risks. The Company defines its managed capital as the total Company equity. For the Company, a robust financial position with a strong equity ratio, solid investment grade rating, low leverage and ample liquidity is deemed important. This provides financial flexibility and independence to operate and manage variations in working capital needs as well as to capitalize on business opportunities. The Company’s overall capital structure should support the financial targets. The capital structure is managed by balancing equity, debt financing and liquidity in such a way that the Company can secure funding of operations at a reasonable cost of capital. Regular borrowings are complemented with committed credit facilities to give additional flexibility to manage unforeseen funding needs. The Company strives to finance growth, normal capital expenditures and dividends to shareholders by generating cash flows from operating activities. The Company’s capital objectives are: • To maintain an equity ratio above 40% • A cash conversion rate above 70% • To maintain a positive net cash position larger than the pension liability • To maintain a solid investment grade rating by Moody’s (Baa2) and Standard & Poor’s (BBB). Capital objectives-related information, SEK billion 2017 2016 Capital 100 140 Equity ratio 38 % 50 % Cash conversion –58 % 1) 175 % Positive net cash 34.7 31.2 Post-employment benefits 25.0 23.7 Credit rating Moody’s Ba2, negative Baa3, negative Standard & Poor’s BB+, stable BBB, negative 1) Impacted by a negative result. In May 2017, Moody’s announced that they have downgraded the senior unsecured debt ratings to Ba1 from Baa3 and the MTN program rating to Ba1 from Baa3, with a stable outlook. In October 2017, Moody’s announced that they have downgraded the senior unsecured debt ratings to Ba2 from Ba1 and the MTN program rating to Ba2 from Ba1. At the same time, the agency placed the company’s Ba2/Ba2 ratings on review for further downgrade. In March 2017, Standard & Poor’s (S&P) announced that they had downgraded the long-term corporate credit rating on Ericsson to BBB– from BBB, with a negative outlook. In July 2017, S&P announced that they had downgraded the long-term corporate credit rating on Ericsson to BB+ from BBB–, with a stable outlook. The Company has a treasury function with the principal role to ensure that appropriate financing is in place through loans and committed credit facilities, actively managing the Company’s liquidity as well as financial assets and liabilities, and managing and controlling financial risk exposures in a manner consistent with underlying business risks and financial policies. Hedging activities, cash management and insurance management are largely centralized to the treasury function in Stockholm. The Company also has a customer finance function with the main objective to find suitable third-party financing solutions for customers and to minimize recourse to the Company. To the extent that customer loans are not provided directly by banks, the Parent Company provides or guarantees vendor credits. The customer finance function monitors the exposure from outstanding vendor credits and credit commitments. The Company classifies financial risks as: • Foreign exchange risk • Interest rate risk • Credit risk • Liquidity and refinancing risk • Market price risk in own and other equity instruments. The Board of Directors has established risk limits for defined exposures to foreign exchange and interest rate risks as well as to political risks in certain countries. For further information about accounting policies, see Note C1, “Significant accounting policies.” Foreign exchange risk The Company is a global company with sales mainly outside Sweden. Sales and incurred costs are to a large extent denominated in currencies other than SEK and therefore the financial results of the Company are impacted by currency fluctuations. The Company reports the financial statements in SEK. Movements in exchange rates between currencies that affect these statements are impacting the comparability between periods. Line items, primarily sales, are impacted by translation exposure incurred when converting foreign entities’ financial statements into SEK. Line items and profitability, such as operating income are impacted by transaction exposure incurred when financial assets and liabilities, primarily trade receivables and trade payables, are initially recognized and subsequently remeasured due to change in foreign exchange rates. The table below presents the net exposure for the largest currencies impact on sales and also net transaction exposure of these currencies on profitability. Currency exposure, SEK billion Exposure currency Sales Sales Sales net Incurred cost 1) Net USD 52.4 37.2 89.6 –15.3 21.9 EUR 24.6 13.2 37.8 –8.4 4.8 CNY 13.1 –0.2 12.9 –6.2 –6.4 INR 9.4 0.0 9.4 –1.6 –1.6 JPY 7.1 0.0 7.1 4.6 4.6 AUD 7.1 –0.3 6.8 3.3 3.0 BRL 5.7 0.0 5.7 0.7 0.7 SAR 5.1 0.1 5.2 2.3 2.4 GBP 5.6 –0.9 4.7 0.8 –0.1 1) Transactions in foreign currency – internal sales, internal purchases, external purchases. Translation exposure Translation exposure relates to sales and cost incurred in foreign entities when converted into SEK upon consolidation. These exposures cannot be addressed by hedging, but as the income statement is translated using weighted average rate, the impact of volatility in foreign currency rates is reduced. Transaction exposure Transaction exposure relates to sales and cost incurred in non-reporting 12-month Outstanding loans that are funding hedged net future sales and costs incurred are revalued against “Financial expense.” The sensitivity in “Financial expense” in relation to this revaluation is dependent on changes in foreign exchange rates, forecasts, seasonality and hedging policy. USD is the Company’s largest exposure and at year-end According to Company policy, transaction exposure in subsidiaries’ balance sheets (i.e., trade receivables and payables and customer finance receivables) should be fully hedged, except for non-tradable Foreign exchange exposures in balance sheet items are hedged through offsetting balances or derivatives. Interest rate risk The Company is exposed to interest rate risk through market value fluctuations in certain balance sheet items and through changes in interest revenues and expenses. The net cash position was SEK 34.7 (31.2) billion at the end of 2017, consisting of cash, cash equivalents and interest-bearing securities of SEK 67.7 (57.9) billion, offset by interest-bearing liabilities of SEK 33.0 (26.7) billion. The Company manages the interest rate risk by matching fixed and floating interest rates in interest-bearing balance sheet items. The policy is that the net sensitivity on a 1 basis point move on interest-bearing assets matching interest-bearing liabilities, taking derivatives into consideration, is less than SEK 10 million. The average exposure during 2017 was SEK 2.1 million per basis point shift. The treasury function has a mandate to deviate from floating interest on net liquidity and take foreign exchange positions up to an aggregated risk of VaR SEK 45 million given a confidence level of 99% and a 1-day Sensitivity to interest rate increase of 1 basis point, SEK million <3M 3–12M 1–3Y 3–5Y >5Y Total Interest-bearing assets 0 0 –3 –4 –1 –8 Interest-bearing liabilities 0 0 0 6 3 9 Derivatives 0 1 0 –4 –1 –4 Total 0 1 –3 –2 1 –3 Outstanding derivatives Outstanding derivatives 1) 2017 2016 Fair value Asset Liability Asset Liability Currency derivatives Maturity within 3 months 130 542 351 193 Maturity between 3 and 12 months 215 147 262 137 Maturity between 1 and 3 years 25 — — — Maturity between 3 and 5 years 754 — — — Total 1,125 689 613 330 Interest rate derivatives Maturity within 3 months 10 35 — — Maturity between 3 and 12 months 1 — 239 82 Maturity between 1 and 3 years 34 105 191 205 Maturity between 3 and 5 years 83 54 — 6 Maturity of more than 5 years 39 43 65 116 Total 168 237 495 2) 409 Of which designated in fair value hedge relations 44 — 120 — 1) Some of the derivatives hedging non-current non-current 2) Of which SEK 86 (0) million is reported as non-current When managing the interest rate exposure, the Company uses derivative instruments, such as interest rate swaps. Derivative instruments used for converting fixed rate debt into floating rate debt are designated as fair value hedges. Sensitivity analysis The Company uses the VaR methodology to measure foreign exchange and interest rate risks in portfolios managed by the treasury function. This statistical method expresses the maximum potential loss that can arise with a certain degree of probability during a certain period of time. For the VaR measurement, the Company has chosen a probability level of 99% and a 1-day The average VaR calculated for 2017 was SEK 17.2 (16.3) million for the combined mandates. No VaR-limits were exceeded during 2017. Financial credit risk Financial instruments carry an element of risk in that counterparts may be unable to fulfill their payment obligations. This exposure arises in the investments in cash, cash equivalents, interest-bearing securities and from derivative positions with positive unrealized results against banks and other counterparties. The Company mitigates these risks by investing cash primarily in well-rated securities such as treasury bills, government bonds, commercial papers, and mortgage-covered bonds with short-term ratings of at least A-2/P-2 At December 31, 2017, the credit risk in financial cash instruments was equal to the instruments’ carrying value. Credit exposure in derivative instruments was SEK 1.3 (1.1) billion. Liquidity risk The Company minimizes the liquidity risk by maintaining a sufficient cash position, centralized cash management, investments in highly liquid interest-bearing securities, and by having sufficient committed credit lines in place to meet potential funding needs. For information about contractual obligations, see Note C31, “Contractual obligations.” The current cash position is deemed to satisfy all short-term liquidity requirements as well as non-current Cash, cash equivalents and interest-bearing securities Remaining time to maturity SEK billion < 3 3–12 1–5 >5 Total Banks 26.4 0.2 0.2 0.1 26.9 Type of issuer/counterpart Governments 9.5 1.0 11.5 0.8 22.8 Corporates 0.3 0.0 0.0 0.0 0.3 Mortgage institutes 0.2 0.0 16.7 0.8 17.7 2017 36.4 1.2 28.4 1.7 67.7 2016 37.0 1.3 19.3 0.3 57.9 The instruments are classified as held for trading, loans and receivables, or available-for-sale. EUR-funding. Refinancing risk Refinancing risk is the risk that the Company is unable to refinance outstanding debt under reasonable terms and conditions, or at all, at a given point in time. Debt financing is mainly carried out through borrowing in the Swedish and international debt capital markets. Bank financing is used for certain subsidiary funding and to obtain committed credit facilities, see Note C19, “Interest-bearing liabilities.” Funding programs 1) Amount Utilized Unutilized Euro Medium-Term Note program (USD million) 5,000 1,519 3,481 SEC Registered program (USD million) 2 ) 1,000 — 1) There are no financial covenants related to these programs. 2) Program amount indeterminate. Fair valuation of the Company’s financial instruments The Company’s financial instruments accounted for at fair value generally meet the requirements of level 1 valuation due to the fact that they are based on quoted prices in active markets for identical assets. Exceptions to this relates to: • OTC derivatives with an amount of gross SEK 1.4 (1.2) billion in relation to assets and gross SEK 1.1 (0.9) billion in relation to liabilities were valued based on references to other market data as currency or interest rates. These valuations fall under level 2 valuation as defined by IFRS. • Ownership in other companies and other financial investments where the Company neither has control nor significant influence. The amount recognized in these cases was SEK 2.1 (2.1) billion. These assets, classified as level 3 assets for valuation purposes, have been valued based on value in use technique. Financial instruments carried at other than fair value The fair value of the Company’s financial instruments, recognized at fair value, is determined based on quoted market prices or rates. For further information about valuation principles, see Note C1, “Significant accounting policies.” Financial instruments, such as trade receivables, borrowings and payables, are carried at amortized cost which is deemed to be equal to fair value, except for those noted in the table Notes, bonds, bilateral loans and committed credits in Note C19, “Interest-bearing liabilities.” When a market price is not readily available and there is insignificant interest rate exposure and credit spreads affecting the value, the carrying value is considered to represent a reasonable estimate of fair value. Offsetting financial assets and liabilities As required by IFRS, the Company has off set financial instruments under ISDA agreements. The related assets amounted to SEK 1.4 (1.2) billion, prior to offsetting of SEK 0.1 (0.1) billion, with a net amount of SEK 1.3 (1.1) billion recognized in the balance sheet. The related liabilities amounted to SEK 1.0 (0.9) billion, prior to offsetting of SEK 0.1 (0.1) billion, with a net amount of SEK 0.9 (0.8) billion recognized in the balance sheet. Market price risk in own shares and other listed equity investments The Company is exposed to fluctuations in its own share price (through stock purchase plans for employees) and other share-based compensation for employees and the Board of Directors. Some of the plans are share settled and some are cash settled as further disclosed in Note C1, “Significant accounting policies” and Note C28, “Information regarding members of the Board of Directors, the Group management and employees .” Share-based plans for employees The obligation to deliver shares under the stock purchase plan and the Long-term Variable Compensation Program 2017 for the Executive Team (LTV 2017) is covered by holding Ericsson Class B shares as treasury stock. A change in the share price will result in a change in social security charges, which represents a risk to the income statement. The cash flow exposure is hedged through the holding of Ericsson Class B shares as treasury stock to be sold to generate funds, which also cover social security payments. Cash settled plans to employees and the Board of Directors In the case of synthetic share programs (a cash settled program as defined in IFRS) to Board members and cash settled plans to employees, the Company is exposed to risks in relation to own share price, both with regard to compensation expenses and social security charges. The obligations to pay compensation amounts under the synthetic share-based compensations to the Board of Directors and employees are covered by a liability in the balance sheet. For further information about the stock purchase plan, LTV 2017, the cash settled plans to employees and the synthetic share-based compensations to the Board of Directors, see Note C28, “Information regarding members of the Board of Directors, the Group management and employees.” Financial instruments, book value SEK billion Customer Trade Interest- Cash lents Borrowings Trade Other Other Other 2017 2016 Note C14 C14 C12 C25 C19 C22 C12 C15 C21 Assets at fair value through profit or loss 6.1 14.3 0.9 1.2 –0.9 21.6 23.5 Loans and receivables 3.9 63.2 0.3 3.2 5.0 75.6 78.9 Available-for-sale 25.4 1.3 26.7 8.8 Financial liabilities at amortized cost –33.0 –26.3 –59.3 –52.0 Total 3.9 63.2 31.8 17.5 –33.0 –26.3 7.2 1.2 –0.9 64.6 59.2 |
C21 Other current liabilities
C21 Other current liabilities | 12 Months Ended |
Dec. 31, 2017 | |
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C21 Other current liabilities | C21 Other current liabilities Other current liabilities 2017 2016 Advances from customers 6,955 5,391 Accrued interest 383 367 Accrued expenses 29,196 30,716 Of which employee-related 8,935 9,414 Of which supplier-related 10,491 13,003 Of which other 1) 9,770 8,299 Deferred revenues 20,110 13,990 Derivatives with a negative value 2) 926 739 Other 3) 4,800 4,800 Total 62,370 56,003 1) Major balance relates to accrued expenses for customer projects. 2) See Note C20, “Financial risk management and financial instruments.” 3) Includes items such as VAT and withholding tax payables and other payroll deductions, and liabilities for goods received where the related invoice has not yet been received. |
C22 Trade payables
C22 Trade payables | 12 Months Ended |
Dec. 31, 2017 | |
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C22 Trade payables | C22 Trade payables Trade payables 2017 2016 Trade payables to associated companies and joint ventures 286 296 Trade payables, excluding associated companies and joint ventures 26,035 25,022 Total 26,321 25,318 |
C23 Assets pledged as collatera
C23 Assets pledged as collateral | 12 Months Ended |
Dec. 31, 2017 | |
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C23 Assets pledged as collateral | C23 Assets pledged as collateral Assets pledged as collateral 2017 2016 Chattel mortgages 1) 4,740 2,240 Bank deposits 475 344 Total 5,215 2,584 1) See also Note C17, “Post-Employment benefits.” |
C24 Contingent liabilities
C24 Contingent liabilities | 12 Months Ended |
Dec. 31, 2017 | |
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C24 Contingent liabilities | C24 Contingent liabilities Contingent liabilities 2017 2016 Contingent liabilities 1,561 1,186 Total 1,561 1,186 Contingent liabilities assumed by the Company include guarantees of loans to other companies of SEK 24 (24) million. Ericsson has SEK 0 (33) million issued to guarantee the performance of a third-party. All ongoing legal and tax proceedings have been evaluated, their potential economic outflows and probability estimated and necessary provisions made. In Note C2, “Critical Accounting Estimates and Judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied. Financial guarantees for third-parties amounted to SEK 80 (124) million as of December 31, 2017. The maturity date for the majority of the issued guarantees occurs in 2020 at the latest. |
C25 Statement of cash flows
C25 Statement of cash flows | 12 Months Ended |
Dec. 31, 2017 | |
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C25 Statement of cash flows | C25 Statement of cash flows Interest paid in 2017 was SEK –794 million (SEK –1,269 million in 2016 and SEK –926 million in 2015) and interest received in 2017 was SEK 1 million (SEK 110 million in 2016 and SEK 550 million in 2015). Taxes paid, including withholding tax, were SEK –4,724 million in 2017 (SEK –9,105 million in 2016 and SEK –7,705 million in 2015). Cash and cash equivalents include cash of SEK 18,403 (25,577) million and temporary investments of SEK 17,481 (11,389) million. For more information regarding the disposition of cash and cash equivalents and unutilized credit commitments, see Note C19, “Interest-bearing liabilities.” Cash and cash equivalents as of December 31, 2017, include SEK 3.1 (4.2) billion in countries where there exists significant cross-border conversion restrictions due to hard currency shortage or strict government controls. This amount is therefore not considered available for general use by the Parent Company. Adjustments to reconcile net income to cash 2017 2016 2015 Property, plant and equipment Depreciation 4,103 4,421 4,705 Impairment losses/reversals of impairments 2,211 148 –16 Total 6,314 4,569 4,689 Intangible assets Amortizations Capitalized development expenses 2,681 1,815 1,379 Intellectual Property Rights, brands and other intangible assets 1,667 2,650 4,139 Total amortizations 4,348 4,465 5,518 Impairments Capitalized development expenses 2,245 85 20 Intellectual Property Rights, brands and other intangible assets 2,019 — — Goodwill 12,966 — — Total impairments 17,230 85 20 Total 21,578 4,550 5,538 Total depreciation, amortization and impairment losses on property, plant and equipment and intangible assets 27,892 9,119 10,227 Taxes –9,805 –6,200 –2,835 Dividends from joint ventures/associated companies 1) 77 84 92 Undistributed earnings in joint ventures/ associated companies 1) –21 –26 38 Gains/losses on sales of investments and operations, intangible assets and PP&E, net 2) –167 –37 –156 Other non-cash 3) 607 3,172 3,245 Total adjustments to reconcile net income to cash 18,583 6,112 10,611 1) See Note C12, “Financial assets, non-current.” 2) See Note C6, “Other operating income and expense.” 3) Refers mainly to unrealized foreign exchange, gains/losses on financial instruments. Acquisitions/divestments of subsidiaries and other operations Acquisitions Divestments 2017 Cash flow from business combinations 1) –62 459 Acquisitions/divestments of other investments –227 106 Total –289 565 2016 Cash flow from business combinations 1) –781 25 Acquisitions/divestments of other investments –203 337 Total –984 362 2015 Cash flow from business combinations 1) –1,867 – Acquisitions/divestments of other investments –334 1 Total –2,201 1 1) See also Note C26, “Business combinations.” Reconciliation of liabilities arising from financing activities 2017 Opening balance 26,686 Cash flows Proceeds from issuance of borrowings 13,416 Repayment of borrowings –4,830 Non-cash changes Effect of foreign exchange movement –2,155 Changes in fair value –72 Closing balance 1) 33,045 1) Of which Borrowing, current SEK 2,545 million and Borrowings, non-current SEK 30,500 million. For more information, see Note C19, ”Interest-bearing liabilities”. In addition to the above numbers SEK 201 million is allocated to the financing cash flow due to hedging of derivatives. |
C26 Business combinations
C26 Business combinations | 12 Months Ended |
Dec. 31, 2017 | |
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C26 Business combinations | C26 Business combinations Acquisitions and divestments Acquisitions Acquisitions 2015–2017 2017 2016 2015 Total consideration, including cash 62 920 2,119 Acquisition-related costs 1) 49 4 19 Net assets acquired Cash and cash equivalents — 139 271 Property, plant and equipment 12 19 45 Intangible assets 101 817 445 Other assets 1 290 572 Other liabilities 25 –290 –379 Total identifiable net assets 139 975 954 Goodwill 2) –77 –55 1,165 Total 62 920 2,119 1) Acquisition-related costs are included in Selling and administrative expenses in the consolidated income statement. 2) Of which SEK 0 (585) million was acquired goodwill and SEK –77 (–640) million refers to a reclassi-fication when the preliminary purchase price allocations were finalized between the years. In 2017, Ericsson made acquisitions with a negative cash flow effect amounting to SEK 62 (781) million. Divestments Divestments 2015–2017 2017 2016 2015 Proceeds 459 25 — Net assets disposed of Property, plant and equipment 62 36 — Investments in joint ventures and associated companies — 15 — Goodwill 45 Other assets 219 5 52 Other liabilities –180 –114 –3 146 –58 49 Net gains/losses from divestments 313 83 –49 Less Cash and cash equivalents — — — Cash flow effect 459 25 — In 2017, the Company made divestments with a cash flow effect amounting to SEK 459 (25) million. Acquisitions 2015–2017 Company Description Transaction date Nodeprime A US based software development company with an infrastructure management platform. Apr 2016 Ericpol A software development company in Poland within telecommunications. Apr 2016 FYI Television A US based premier entertainment metadata and rich media content supplier. Jan 2016 Envivio A US-based software-defined Oct 2015 ICON A consulting and systems integration business with approximately 250 employees and consultants. Aug 2015 Sunrise technology A business delivering complex IT solutions. Jul 2015 Timelessmind A Canada-based consulting and systems integration business specializing in operations and business support (OSS/BSS). Apr 2015 Divestments 2015–2017 Company Description Transaction date Power Modules A divestment of the power modules business. Sep 2017 Birla Ericsson Optical Ltd A divestment of the shares in the associated company. Jul 2016 |
C27 Leasing
C27 Leasing | 12 Months Ended |
Dec. 31, 2017 | |
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C27 Leasing | C27 Leasing Due to replacement of former lease contract with operating lease contract the Company has from 2016 no finance leases. As of December 31, 2017, future minimum lease payment obligations were distributed as follows: Future minimum lease payment obligations Operating leases 2018 3,491 2019 2,927 2020 2,506 2021 1,966 2022 1,442 2023 and later 4,787 Total 17,119 Expenses in 2017 for leasing of assets were SEK 4,194 (3,710) million, of which variable expenses comprised SEK 101 (217) million. The leasing contracts vary in length from 1 to 16 years. The Company’s lease agreements normally do not include any contingent rents. In the few cases they occur, they relate to charges for heating linked to the oil price index. Most of the leases of real estate contain terms of renewal, giving the Company the right to prolong the agreement in question for a predefined period of time. Leases with the Company as lessor Leasing income relates to subleasing of real estate as well as equipment provided to customers under leasing arrangements. These leasing contracts vary in length from 1 to 15 years. At December 31, 2017, future minimum payment receivables were distributed as follows: Future minimum payment receivables Operating leases 2018 83 2019 87 2020 85 2021 87 2022 87 2023 and later 184 Total 613 Leasing income in 2017 was SEK 44 (47) million. |
C28 Information regarding membe
C28 Information regarding members of the Board of Directors, the Group management and employees | 12 Months Ended |
Dec. 31, 2017 | |
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C28 Information regarding members of the Board of Directors, the Group management and employees | C28 Information regarding members of the Board of Directors, the Group management and employees Remuneration to the Board of Directors Remuneration to members of the Board of Directors SEK Board fees Number of synthetic shares/ portion of Value at grant date of synthetic shares allocated in 2017 A Number of previously allocated shares Net change in value of synthetic shares 1) B Committee Total fees cash 2) C Total remuneration 2017 (A+B+C) Board member Leif Johansson 4,075,000 0/0 % — — — 400,000 4,475,000 4,475,000 Helena Stjernholm 990,000 8,661/50 % 494,976 11,093 –13,606 1) 175,000 670,000 1,151,370 Jacob Wallenberg 990,000 12,992/75 % 742,493 18,202 128,459 1) 175,000 422,500 5) 1,293,452 Jon Fredrik Baksaas 990,000 12,992/75 % 742,493 — –42,874 175,000 422,500 1,122,119 Jan Carlson 990,000 12,992/75 % 742,493 — –42,874 175,000 422,500 1,122,119 Nora Denzel 990,000 4,330/25 % 247,460 5,489 23,549 1) 425,000 1,167,500 1,438,509 Börje Ekholm — — — 33,203 339,168 1) — — 339,168 Eric A. Elzvik 990,000 4,330/25 % 247,460 — –14,289 350,000 1,092,500 1,325,671 Kristin Skogen Lund 990,000 4,330/25 % 247,460 11,990 60,646 1) 250,000 992,500 1,300,606 Kristin S. Rinne 990,000 8,661/50 % 494,976 7,395 –18,598 1) 200,000 695,000 1,171,378 Sukhinder Singh Cassidy 990,000 4,330/25 % 247,460 6,210 3,393 1) 175,000 917,500 1,168,353 Employee Representatives Pehr Claesson 3) 15,000 — — — — — 15,000 15,000 Mikael Lännqvist 3) 9,000 — — — — — 9,000 9,000 Kjell-Åke Soting 27,000 — — — — — 27,000 27,000 Roger Svensson 37,500 — — — — — 37,500 37,500 Karin Åberg 33,000 — — — — — 33,000 33,000 Zlatko Hadzic (deputy) 3) 6,000 — — — — — 6,000 6,000 Torbjörn Nyman (deputy) 4) 13,500 — — — — — 13,500 13,500 Anders Ripa (deputy) 4) 13,500 — — — — — 13,500 13,500 Loredana Roslund (deputy) 4) 13,500 — — — — — 13,500 13,500 Total 13,153,000 73,618 4,207,271 93,582 422,974 2,500,000 11,445,500 16,075,745 6) Total 13,153,000 73,618 4,207,271 93,582 632,329 7 ) 2,500,000 11,445,500 16,285,100 6) 1) The difference in value as of the time for payment, compared to December 31, 2016, for synthetic shares allocated in 2012 (for which payment was made in 2017). The difference in value as of December 31, 2017, compared to December 31, 2016, for synthetic shares allocated in 2013, 2014, 2015 and 2016. Calculated on a share price of SEK 53.85. The difference in value as of December 31, 2017, compared to grant date for synthetic shares allocated in 2017. The value of synthetic shares allocated in 2013, 2014, 2015 and 2016 includes respectively SEK 3.00, SEK 3.40, SEK 3.70 and SEK 1.00 per share in compensation for dividends resolved by the Annual General Meetings 2014, 2015, 2016 and 2017 and the value of the synthetic shares allocated in 2012 includes dividend compensation for dividends resolved in 2013, 2014, 2015 and 2016. 2) Committee fee and cash portion of the Board fee. 3) Left the Board in connection with the Annual General Meeting of shareholders 2017. 4) Joined the Board in connection with the Annual General Meeting of shareholders 2017. 5) In addition, an amount corresponding to statutory social charges in respect of the part of the fee that has been invoiced from a business was paid, amounting to SEK 174,460. 6) Excluding social security charges and amounts invoiced through a business corresponding to such social security charges in to the amount of SEK 2,964,677. 7) Including synthetic shares previously allocated to the former Directors Roxanne S. Austin and Alexander Izosimov. For these synthetic shares, the net change in value corresponds to the difference in value as of the time for payment compared to December 31, 2016. Comments to the table • The Chairman of the Board was entitled to a Board fee of SEK 4,075,000 and a fee of SEK 200,000 for each Board Committee on which he served as Chairman. • The other Directors elected by the Annual General Meeting were entitled to a fee of SEK 990,000 each. In addition, the Chairman of the Audit Committee was entitled to a fee of SEK 350,000 and the other non-employee non-employee • Members of the Board, who are not employees of the Company, have not received any remuneration other than the fees and synthetic shares as above. None of the Directors have entered into a service contract with the Parent Company or any of its subsidiaries, providing for termination benefits. • Members and deputy members of the Board who are Ericsson employees received no remuneration or benefits other than their entitlements as employees and a fee to the employee representatives and their deputies of SEK 1,500 per attended Board meeting and Committee meeting. • Board members invoicing for the amount of the Board and Committee fee from a business may add to the invoice an amount corresponding to social charges. The social charges thus included in the invoiced amount are not higher than the general payroll tax that would otherwise have been paid by the Company. The entire amount, i.e., the cash portion of the Board fee and the Committee fee, including social charges, constitutes the invoiced Board fee. • The Annual General Meeting 2017 resolved that non-employee The number of synthetic shares allocated is based on a volume-weighted average of the market price of Ericsson Class B shares on Nasdaq Stockholm during the five trading days immediately following the publication of Ericsson’s interim report for the first quarter 2017; SEK 57.15. The number of synthetic shares is rounded down to the nearest whole number of shares. The synthetic shares are vested during the Directors’ term of office and the right to receive payment with regard to the allocated synthetic shares occurs after the publication of the Company’s year-end year-end Synthetic shares were allocated to members of the Board for the first time in 2008 and have been allocated annually since then on equal terms and conditions. Payment based on synthetic shares allocated in 2012 occurred in 2017 and, in accordance with the terms and conditions for the synthetic share advance payment was then also made to the former Directors Roxanne S. Austin and Alexander Izosimov. The amounts paid in 2017 under the synthetic share programs were determined based on the volume-weighed average price for shares of Class B on Nasdaq Stockholm during the five trading days immediately following the publication of the year-end The value of all outstanding synthetic shares fluctuates in line with the market value of Ericsson’s Class B share and may differ from year to year compared to the original value on their respective grant dates. The change in value of the outstanding synthetic shares is established each year and affects the total recognized costs that year. As of December 31, 2017, the total outstanding number of synthetic shares under the programs is 167,200 and the total accounted debt is SEK 9,440,105. Remuneration to the Group management The Company’s costs for remuneration to the Group management are the costs recognized in the Income statement during the fiscal year. These costs are disclosed under “Remuneration costs” below. Costs recognized during a fiscal year in the Income statement are not fully paid by the Company at the end of the fiscal year. The unpaid amounts that the Company has in relation to the Group management are disclosed under “Outstanding balances.” Remuneration costs The total remuneration to the President and CEO and to other members of the Group management, consisting of the Executive Team (ET), includes fixed salary, short- and long-term variable compensation, pension and other benefits. These remuneration elements are based on the guidelines for remuneration to Group management as approved by the Annual General Meeting held in 2017: see the approved guidelines in section “Guidelines for remuneration to Group management 2017.” Remuneration costs for the President and CEO and other members of Executive Team (ET) SEK President and CEO 1) President and CEO 2) Total: President and CEO 2017 President and CEO 2016 Other members of ET 2017 Other members of ELT 2016 Total 2017 Total 2016 Salary 3) 13,980,639 398,531 14,379,170 45,882,357 162,159,462 119,501,092 176,538,632 165,383,449 Annual variable remuneration provision earned for the year — — — — 7,331,278 6,230,285 7,331,278 6,230,285 Long-term variable compensation provision 6,119,323 — 6,119,323 8,727,083 9,840,643 9,278,252 15,959,966 18,005,336 Pension costs 7,365,132 4) 162,941 7,528,073 11,954,758 31,592,635 29,387,498 39,120,708 41,342,256 Other benefits 315,263 2,923 318,187 69,992 17,311,905 12,604,635 16,630,091 12,674,627 Social charges and taxes 8,728,588 165,666 8,894,255 20,241,066 52,086,808 29,147,247 60,981,063 49,388,312 Total 36,508,946 730,061 37,239,007 86,875,256 280,322,732 206,149,008 317,561,739 293,024,265 1) Börje Ekholm served as President and CEO from January 16, 2017. Remuneration costs shown for Börje Ekholm includes the period from January 16, 2017, to December 31, 2017. 2) Jan Frykhammar served as President and CEO from January 1, 2017, to January 15, 2017. Remuneration costs shown for Jan Frykhammar includes the period from January 1, 2017, to January 15, 2017 (costs for the rest of the year is included in “Other members of ET 2017”). 3) Includes severance pay and compensation for unused vacations. 4) Cash payment in lieu of defined contribution payment, made in a cost neutral way for Ericsson. Comments to the table • Jan Frykhammar was President and CEO of Ericsson until January 15, 2017, and Börje Ekholm was appointed President and CEO from January 16, 2017. • Effective April 1, 2017, the Executive Leadership Team (ELT) was replaced by Executive Team (ET). • During 2017, Jan Frykhammar and Magnus Mandersson were appointed as Executive Vice Presidents by the Board of Directors, none of which acted as deputy to the President and CEO. Both were relieved from their duties as Executive Vice Presidents on November 6, 2017, and replaced by Fredrik Jejdling effective November 7, 2017. Fredrik Jejdling did not act as deputy to the President and CEO in 2017. Executive Vice Presidents are included in the group “Other members of ET”, except for the period between January 1, 2017, and January 15, 2017, when Jan Frykhammar is included in President and CEO. • The group “Other members of ET” comprises of the following persons: MajBritt Arfert, Arun Bansal, Ulf Ewaldsson, Niklas Heuveldop, Chris Houghton, Fredrik Jejdling, Nina Macpherson, Carl Mellander, Helena Norrman, Elaine Weidman-Grunewald. In addition, Rafiah Ibrahim, Peter Laurin and Nunzio Mirtillo joined ET on April 1, 2017. Anders Lindblad (left ET effective April 1, and Ericsson August 31, 2017), Per Borgklint (left ET effective April 1, and Ericsson September 30, 2017), Charlotta Sund (left ET effective April 1, and Ericsson October 26, 2017), Jean-Philippe Poirault (left ET April 1, 2017, and will leave Ericsson on June 30, 2018), Rima Qureshi (left ET effective May 11, and Ericsson November 5, 2017), Jan Frykhammar (left ET effective November 7, 2017, and will leave Ericsson on March 31, 2018), Magnus Mandersson (left ET effective November 7, 2017, and will leave Ericsson on June 30, 2018). • The salary stated in the table for the President and CEO and other members of the ET includes vacation pay paid during 2017 as well as other contracted compensation expensed in 2017. • The remuneration costs for 2017 include termination provisions, including estimates of future severance pay and compensation for unused vacation, in respect of individuals who left Ericsson during 2017. • “Long-term variable compensation provision” refers to the compensation costs during 2017 for all outstanding share-based plans. • For members of the ET employed in Sweden before 2011, a supplementary plan is applied in addition to the occupational pension plan for salaried staff on the Swedish labor market (ITP) with pension payable from the age of 60 years. These pension plans are not conditional upon future employment at Ericsson. Outstanding balances The Company has recognized the following liabilities relating to unpaid remunerations in the Balance sheet: • Ericsson’s commitments for defined benefit based pensions as of December 31, 2017, for other members of ET under IAS 19 amounted to SEK 45,651,263 (SEK 44,800,609) of which SEK 36,957,641 (SEK 38,333,332) refers to the ITP and early retirement, and the remaining SEK 8,693,622 (SEK 6,467,277) to disability and survivors’ pensions. The President and CEO does not have a Swedish defined benefit based pension plan, hence, Ericsson bears no commitment. • For previous Presidents and CEOs, the Company has made provisions for defined benefit pension plans in connection with their active service periods within the Company. Maximum outstanding matching rights As of December 31, 2017 Number of Class B shares The President and CEO Other members of the ET Stock Purchase Plans 2014–2016 Executive Performance Stock Plans 2014–2016 — 183,054 Comments to the table • For the definition of matching rights, see the description in section “Long-term variable compensation”. • Matching result of 33.33% is included for the 2014 plan. • Cash conversion targets for 2015 and 2016 were reached, but it was not reached in 2017. • During 2017, no matching shares were received by President and CEO since Börje Ekholm is not entitled for the Stock Purchase and Executive Performance Stock Plans. Jan Frykhammar’s matching shares are included in ‘Other members of the ET’. • During 2017, other members of the ET received 79,285 matching shares. Option agreements Prior to taking office as President and CEO of Ericsson, Board member Börje Ekholm entered into an option agreement in 2016 with Investor AB and AB Industrivärden, shareholders of Ericsson. Each of these two shareholders has issued 1,000,000 call options to Börje Ekholm on market terms (valuation conducted, using the Black & Scholes model, by an independent third party). Under the agreements, Börje Ekholm has purchased in total 2,000,000 call options, issued by the shareholders, for a purchase price of SEK 0.49 per call option. Each call option entitles the purchase of one Ericsson B share from the shareholders at a strike price of SEK 80 per share during one year after a seven-year period. Since the President and CEO has the power to influence the dividend paid by the Company, a potential conflict of interest exists. The option agreements therefore contain a strike price recalculation mechanism which is intended to make the options payoff neutral regardless of what the actual dividends are. Due to the fact that the call options were purchased on market terms as described above, no compensation expense has been recognized by the Company and will not be recognized during the remaining part of the seven-year period. Guidelines for remuneration to Group management 2017 For Group management consisting of the Executive Leadership Team, including the President and CEO, total remuneration consists of fixed salary, short- and long-term variable compensation, pension and other benefits. The following guidelines apply to the remuneration of the Executive Leadership Team: • Variable compensation is in cash and stock-based programs awarded against specific business targets derived from the long-term business plan approved by the Board of Directors. Targets may include share-price related or financial targets at either Group or unit level, operational targets, employee engagement targets or customer satisfaction targets. • All benefits, including pension benefits, follow the competitive practice in the home country taking total compensation into account. • By way of exception, additional arrangements can be made when deemed necessary. An additional arrangement can be renewed but each such arrangement shall be limited in time and shall not exceed a period of 36 months and twice the remuneration that the individual would have received had no additional arrangement been made. • The mutual notice period may be no more than six months. Upon termination of employment by the Company, severance pay amounting to a maximum of 18 months fixed salary is paid. Notice of termination given by the employee due to significant structural changes, or other events that in a determining manner affect the content of work or the condition for the position, is equated with notice of termination served by the Company. Long-Term Variable compensation The Long-Term Variable Compensation Program 2017 for the Executive Team The Long-Term Variable Compensation Program 2017 for the Executive Team (LTV 2017) is an integral part of the Company’s remuneration strategy. The LTV 2017 has been approved by the Annual General Meeting (AGM) of shareholders 2017 and is designed to provide long-term incentives for members of the Executive Team (ET) and to incentivize the Company’s performance creating long-term value. The aim is to attract, retain, and motivate the executives in a competitive market through performance based share related incentives and to encourage the build-up The LTV 2017 includes all members of ET, a total of 16 employees in 2017. Awards under LTV 2017 are granted to the participant, provided that certain performance conditions set out below are met, to receive a number of shares, free of charge, following expiration of a three-year vesting period (“Performance Share Awards”). Allotment of shares pursuant to Performance Share Awards are subject to the achievement of the performance conditions, as set out below, and generally requires that the participant retains his or her employment over a period of three years from the date of grant (the “Vesting Period”). All major decisions relating to LTV 2017 are taken by the Remuneration Committee, with approval by the full Board of Directors as required. The participants were granted Performance Share Awards on May 18, 2017. The value of the underlying shares in respect of the Performance Share Award made to the President & CEO was 180% of the annual base salary, and for other participants 22.5% of the participants’ respective annual base salaries at the time of grant. The share price used to calculate the number of shares to which the Performance Share Award entitles was calculated as the volume-weighted average of the market price of Class B shares on Nasdaq Stock-holm during the five trading days immediately following the publication of the Company’s interim report for the first quarter of 2017. The vesting of Performance Share Awards is subject to the satisfaction of challenging performance conditions which will determine what portion, if any, of the Performance Share Awards will vest at the end of the Performance Period as defined below. The two performance criteria are based on absolute Total Shareholder Return (TSR) and relative TSR development for the Class B share over the period January 1, 2017 to December 31, 2019 (the “Performance Period”). The details on how the TSR development will be calculated and measured are explained in minutes from the AGM 2017 under Item 17, and summarized below: LTV 2017 and EPP 2017 Performance Targets Year Target Criteria Weight Vesting 2017 Absolute TSR Range: 6%–14% 50 % 0%–200% (linear pro-rata 2017 Relative TSR Ranking of Ericsson: 12–5 50 % 0%–200% (linear pro-rata Provided that the above performance criteria have been met during the Performance Period and that the Participant has retained his or her employment (unless special circumstances are at hand) during the Vesting Period, allotment of vested shares will take place as soon as practically possible following the expiration of the Vesting Period. When determining the final vesting level of Performance Share Awards, the Board of Directors shall examine whether the vesting level is reasonable considering the Company’s financial results and position, conditions on the stock market and other circumstances, and if not, reduce the vesting level to lower level deemed appropriate by the Board of Directors. In the event delivery of shares to the Participants cannot take place under applicable law or at a reasonable cost and employing reasonable administrative measures, the Board of Directors will be entitled to decide that Participants may, instead, be offered cash settlement. Originally designated shares for LTV 2017 was comprising a maximum of 3 million shares, 0,7 million shares were granted for ET during 2017 with share price of SEK 57.15 at grant date. Fair value for LTV 2017 was SEK 65.68, compensation cost was SEK 9.9 million for 2017. The fair value, calculated at grant date for LTV 2017 is the average of the fair values established for absolute and relative TSR performance conditions on the grant date of May 18, 2017, using a Monte Carlo model, which uses a number of inputs, including expected dividends, expected share price volatility and the expected period to exercise. The accounting treatment for LTV 2017 is prescribed in IFRS 2 Share-based payment as described in note C1 Significant accounting policies. As it is a share-settled plan with market conditions the total compensation expense is calculated based on the fair market value at grant date and recognized over the service period of three years. The amount is fixed for the service period, except for any persons leaving or added to the plan. Only such changes of persons adjust the total compensation expense. The Executive Performance Plan 2017 (EPP 2017) The Executive Performance Plan 2017 (EPP 2017) is also an integral part of the Company’s remuneration strategy. The aim is to attract, retain, and motivate senior managers in a competitive market through performance based long-term cash incentive supporting the achievement of the Company’s long-term strategies and business objectives. Under the EPP 2017, up to 500 senior managers (452 nominated in 2017) are selected through a nomination process that identifies individuals according to performance, potential, critical skills, and business critical roles. There are two award levels at 15% and 22.5% of the participants’ annual gross salary. Participants are assigned a potential award, which is converted into a number of synthetic shares based on the same market price of Class B shares used for the LTV 2017. The three-year vesting period is the same as for the LTV 2017. The vesting level of the award is subject to the achievement of the same performance conditions over the same Performance Period defined for the LTV 2017, and generally requires that the participant retains his or her employment over the Vesting Period. At the end of the Vesting Period, the allotted synthetic shares are converted into a cash amount, based on the market price of Class B shares Nasdaq Stockholm at the payout date, and this final amount is paid to the Participant in cash gross before tax. The accounting treatment for EPP 2017 is prescribed in IFRS 2 Share-based payment as described in Note C1, “Significant accounting policies.” At the start of the service period, compensation costs are calculated as for the LTV 2017. As it is a cash settled plan the compensation expense is remeasured during the service period, considering the impact of the share price development targets, being the same as under the LTV 2017. Total compensation expense for the Company is the same as the total pay-out 2017 Key Contributor Plan The 2017 Key Contributor Plan is part of Ericsson’s talent management strategy and is designed to recognize the best talent, individual performance, potential and critical skills as well as encourage the retention of key employees. Under the program, up to 7,000 employees (6,876 employees nominated in 2017) are selected through a nomination process that identifies individuals according to performance, potential, critical skills, and business critical roles. There are two award levels at 10% and 25% of the participants’ annual gross salary. Participants are assigned a potential award, which is converted into a number of synthetic shares based on the same market price of Class B shares used for the LTV 2017. There is a mandatory three-year retention period for receiving the award and the award is subject only to continued employment until the end of the retention period. The value of each synthetic share is driven by the absolute share price performance of Class B shares during the retention period. At the end of the retention period, the synthetic shares are converted into a cash amount, based on the market price of Class B shares Nasdaq Stock-holm at the payout date, and this final amount is paid to the Participant in cash gross before tax. The cost of the cash based plans (the Executive Performance Plan 2017 and the 2017 Key Contributor Plan) in 2017 is shown in the table below: Compensation cost under LTV cash based plans (SEK million) Number of Compensation cost year 2017 1) Executive Performance Plan 2.3 31.4 2) Key Contributor Plan 11.8 138.6 3) Total compensation cost 14.1 170.0 1) 7.5 months between May 18 and December 31, 2017. 2) Fair value at grant date, SEK 65.68. 3) Fair value based on share price as of December 18, 2017, SEK 56.55. Year 2017 is the first year under these plans and therefore the liability is equal to the cost for the year. The accounting treatment for 2017 Key Contributor Plan is prescribed in IFRS 2 Share-based payment as described in Note C1, “Significant accounting policies.” At grant date the share price was SEK 57.15. As it is a cash settled plan the compensation expense is remeasured during the service period, considering the Ericsson share price development during the service period. The total cost for a plan for the three years of service is equal to the pay-out. 2014–2016 Long-Term Variable compensation programs Until 2017, share-based compensation was made up of three different but linked plans: the all-employee The Stock Purchase Plan The Stock Purchase Plan was designed to offer an incentive for all employees to participate in the Company where practicable. For the 2016 and earlier plans, employees were able to save up to 7.5% of their gross fixed salary for purchase of Class B contribution shares at market price on Nasdaq Stockholm or American Depositary Shares (ADSs) on NASDAQ New York (contribution shares) during a twelve-month period (contribution period). If the contribution shares are retained by the employee for three years after the investment and their employment with the Ericsson Group continues during that time, then the employee’s shares will be matched with a corresponding number of Class B shares or ADSs free of consideration. Employees in 100 countries participate in the plans. The table below shows the contribution periods and participation details for ongoing plans as of December 31, 2017. Stock Purchase Plans Plan Contribution period Number of at launch Take-up eligible employees Stock Purchase plan 2014 August 2014–July 2015 32,000 30 % Stock Purchase plan 2015 August 2015–July 2016 33,800 31 % Stock Purchase plan 2016 August 2016–July 2017 31,500 29 % No Stock Purchase Plan was proposed in 2017. The accounting treatment for SPP is prescribed in IFRS 2 Share-based payment as described in Note C1, “Significant accounting policies.” This plan is a stock purchase share-settled plan. The total cost for a plan for the three years of service is based on the number of shares that vest, due to savings and calculated based on the fair value of the shares as defined at grant date. The Key Contributor Retention Plan The Key Contributor Retention Plan was part of Ericsson’s talent management strategy and was designed to give recognition for performance, critical skills and potential as well as to encourage retention of key employees. Under the program, up to 10% of employees were selected through a nomination process that identifies individuals according to performance, critical skills and potential. Participants selected obtained one extra matching share in addition to the ordinary one matching share for each contribution share purchased under the Stock Purchase Plan during a twelve-month period. Since no Stock Purchase Plan was proposed for 2017, a cash-based 2017 Key Contributor Plan was introduced replacing the Key Contributor Retention Plan. The Key Contributor Plan 2017 is described above. The accounting treatment for the Key Contributor Retention Plan is the same as for the Stock Purchase Plan, however, these employees receive two shares for each share invested. Executive Performance Stock Plan targets Base year Year 1 Year 2 Year 3 2016 Growth (Net sales growth) 246.9 Compound annual Margin (Operating income growth) 1) 24.8 Compound annual Cash flow (Cash conversion) — ³ 70 % ³ 70 % ³ 70 % 2015 Growth (Net sales growth) 228.0 Compound annual Margin (Operating income growth) 1) 16.8 Compound annual Cash flow (Cash conversion) — ³ 70 % ³ 70 % ³ 70 % 1) Excluding extraordinary restructuring charges. The Executive Performance Stock Plan The Executive Performance Stock Plan was designed to focus management on driving earnings and provide competitive remuneration. Senior managers, including ET, were selected to obtain up to four or six extra shares (performance matching shares) in addition to the ordinary one matching share for each contribution share purchased under the Stock Purchase Plan. Up to 0.5% of employees were offered participation in the plan. The performance targets were linked to growth of Net Sales, Operating Income and Cash Conversion. The table “Executive Performance Stock Plan targets” show ongoing Executive Performance Stock Plans as of December 31, 2017. Since no Stock Purchase Plan was proposed for 2017, share-based Long-Term Variable Compensation Program 2017 (LTV 2017) was introduced for ET with the approval of shareholders in the 2017 Annual General Meeting of shareholders. For the senior managers, a cash based 2017 Executive Performance Plan (EPP 2017) was introduced replacing the Executive Performance Stock Plan. The LTV 2017 and the EPP 2017 are described above. The accounting treatment for the Executive Performance Stock Plan is prescribed in IFRS 2 Share-based payment as described in note C1 Significant accounting policies. This plan is a stock purchase share-settled plan with performance conditions. The total cost for a plan for the three years of service is based on the number of shares that vest, due to fulfillment of targets and savings. The costs are calculated based on the fair value of the shares as defined at grant date. Shares for LTV 2013–2016 Plan (million shares) Stock Purchase Plan, Key Contributor Retention Plan and Executive Performance Stock Plans Total 2016 2015 2014 2013 Originally designated A 21.6 23.5 22.8 26.6 94.5 Outstanding beginning of 2017 B 7.5 18.7 11.8 7.0 45.0 Awarded during 2017 C 17.1 — — — 17.1 Exercised/matched during 2017 D 1.4 1.6 3.2 6.8 13.0 Forfeited/expired during 2017 E 1.6 1.7 1.9 0.2 5.4 Outstanding end of 2017 1) F=B+C–D–E 21.6 15.4 6.7 — 43.7 Compensation costs charged during 2017 (SEK million) 3) G 274.5 2) 315.4 2) 234.1 2) 51.5 2) 875.5 1) Shares under the Executive Performance Stock Plans were based on the fact that the 2013 plan came out at 39.7%, in casu 60.3% lapsed and that the 2014 plan vested for 33% and lapsed for 67%. For the other ongoing plans, cost is estimated. 2) Fair value is calculated as the share price on the investment date, reduced by the net present value of the dividend expectations during the three-year vesting period. Net present value calculations are based on data from external party. For shares under the Executive Performance Stock Plans, the company makes a forecast for the fulfillment of the financial targets for all ongoing plans except for 2013 and 2014 plans as disclosed under 1) when calculating the compensation cost. Fair value of the Class B share at each investment date during 2017 was: February 15 SEK 46.77, May 15 SEK 54.46 and August 15 SEK 46.19. 3) Total compensation costs charged during 2016: SEK 957 million, 2015: SEK 865 million. Shares for LTV 2013–2016 and LTV 2017 LTV 2013–2016 and LTV 2017 are funded with treasury stock and are equity settled. Treasury stock for all plans has been issued in directed cash issues of Class C shares at the quotient value and purchased under a public offering at the subscription price plus a premium corresponding to the subscribers’ financing costs, and then converted to Class B shares. For all these plans, additional shares have been allocated for financing of social security expenses. Treasury stock is sold on the Nasdaq Stockholm to cover social security payments when arising due to matching of shares. During 2017, 1,827,600 shares were sold at an average price of SEK 53.82. Sales of shares are |
C29 Related party transactions
C29 Related party transactions | 12 Months Ended |
Dec. 31, 2017 | |
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C29 Related party transactions | C29 Related party transactions During 2017, various minor related party transactions were executed pursuant to contracts based on terms customary in the industry and negotiated on an arm’s length basis. For information regarding equity and Ericsson’s share of assets, liabilities and income in joint ventures and associated companies, see Note C12, “Financial assets, non-current.” For information regarding transactions with the Board of Directors and Group management, see Note C28, “Information regarding members of the Board of Directors, the Group management and employees.” For information about the Company’s pension trusts, see Note C17, ”Post-employment benefits.” |
C30 Fees to auditors
C30 Fees to auditors | 12 Months Ended |
Dec. 31, 2017 | |
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C30 Fees to auditors | C30 Fees to auditors Fees to auditors PwC Others Total 2017 Audit fees 89 2 91 Audit-related fees 11 — 11 Tax fees 13 4 17 Other fees 9 7 16 Total 122 13 135 2016 Audit fees 90 3 93 Audit-related fees 10 — 10 Tax fees 10 8 18 Other fees 16 11 27 Total 126 22 148 2015 Audit fees 91 2 93 Audit-related fees 11 — 11 Tax fees 19 13 32 Other fees 8 — 8 Total 129 15 144 The total fee to PwC and their networks of firms is SEK 122 millions. For 2017 SEK 39 million has been paid to the auditors for the audit engagement to the audit firm PricewaterhouseCoopers AB, SEK 10 million for other statutory engagements, SEK 3 million for tax advisory services and SEK 5 million for other services. No valuation services has been performed. During the period 2015–2017, in addition to audit services, PwC provided certain audit-related services, tax and other services to the Company. The audit-related services include quarterly reviews, ISO audits, SSAE 16 reviews and services in connection with the issuing of certificates and opinions and consultation on financial accounting. The tax services include corporate tax compliance work. Other services include, work related to acquisitions and operational effectiveness. Audit fees to other auditors largely consist of local statutory audits. |
C31 Contractual obligations
C31 Contractual obligations | 12 Months Ended |
Dec. 31, 2017 | |
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C31 Contractual obligations | C31 Contractual obligations Contractual obligations 2017 Payment due by period SEK billion < 1 year 1–3 years 3–5 years > 5 years Total Current and Non-current 1) 2) 2.8 8.9 14.3 7.9 33.9 Operating leases 3) 3.5 5.4 3.4 4.8 17.1 Other non-current 0.4 0.7 — 1.7 2.8 Purchase obligations 4) 6.2 0.9 0.7 — 7.8 Trade payables 26.3 — — — 26.3 Commitments for customer finance 5) 9.7 — — — 9.7 Total 48.9 15.9 18.4 14.4 97.6 1) Including interest payments. 2) See also Note C19, “Interest-bearing liabilities.” 3) See also Note C27, “Leasing.” 4) The amounts of purchase obligations are gross, before deduction of any related provisions. 5) See also Note C14, “Trade receivables and customer finance.” For information about financial guarantees, see Note C24, “Contingent liabilities.” |
C32 Events after the reporting
C32 Events after the reporting period | 12 Months Ended |
Dec. 31, 2017 | |
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C32 Events after the reporting period | C32 Events after the reporting period Ericsson strengthens focus on innovation and makes changes to Executive Team On January Jan 31 2018, Ericsson announced changes to the group structure and its Executive Team. A Business Area Emerging Business was created to increase focus on innovation and new business development. Effective April 1, 2018, Åsa Tamsons is appointed Senior Vice President and head of Business Area Emerging Business and member of Ericsson’s Executive Team. The new Business Area Emerging Business will be reported under Segment Other. Business Area Digital Services is undergoing significant transformation to create a profitable and strong offering in this strategically important area. Ulf Ewaldsson has decided to step down from leading the unit, following the completion of its build up phase. Jan Karlsson, currently head of Solution Area BSS, will step in as acting head of Business Area Digital Services. Ulf Ewaldsson will take on a role as advisor to CEO Börje Ekholm. The company is also simplifying its group function structure, from currently six functions to four. In light of the change in responsibilities Elaine Weidman- Grunewald has decided to leave the company to pursue other opportunities. Ericsson concludes strategic review of Media Solutions and Red Bee Media On January 31 2018, Ericsson concluded the review of strategic opportunities for its Media business – Media Solutions and Red Bee Media – which was initiated in conjunction with the announcement of the company’s focused business strategy on March 28, 2017. Ericsson has implemented substantial performance improvement programs while continuing to invest in the respective business. Both units have made significant progress during 2017. Outcome of the strategic review: • One Equity Partners new majority owner in Media Solutions, Ericsson will retain 49% of the shares • Media Solutions assets and staff to transfer to independent company upon closing, expected Q3 2018 • Continued in-house |
C1 Significant accounting pol41
C1 Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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Basis of presentation | Basis of presentation The financial statements are presented in millions of Swedish Krona (SEK). They are prepared on a historical cost basis, except for certain financial assets and liabilities that are stated at fair value: derivative financial instruments, financial instruments held for trading, financial instruments classified as available-for-sale |
Basis of consolidation and composition of the Group | Basis of consolidation and composition of the Group The consolidated financial statements are prepared in accordance with the purchase method. Accordingly, consolidated stockholders’ equity includes equity in subsidiaries, joint ventures and associated companies earned only after their acquisition. Subsidiaries are all companies for which Telefonaktiebolaget LM Ericsson, directly or indirectly, is the parent. To be classified as a parent, Telefonaktiebolaget LM Ericsson, directly or indirectly, must control another company which requires that the Parent Company has power over that other company, is exposed to variable returns from its involvement and has the ability to use its power over that other company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that such control ceases. Intra-group balances and any unrealized income and expense arising from intra-group transactions are fully eliminated in preparing the consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. The Company is composed of a parent company, Telefonaktiebolaget LM Ericsson, with generally fully-owned subsidiaries in many countries of the world. The largest operating subsidiaries are the fully-owned telecom vendor companies Ericsson AB, incorporated in Sweden and Ericsson Inc., incorporated in the US. |
Business combinations | Business combinations At the acquisition of a business, the cost of the acquisition, being the purchase price, is measured as the fair value of the assets given, and liabilities incurred or assumed at the date of exchange, including any cost related to contingent consideration. Transaction costs attributable to the acquisition are expensed as incurred. The acquisition cost is allocated to acquired assets, liabilities and contingent liabilities based upon appraisals made, including assets and liabilities that were not recognized on the acquired entity’s balance sheet, for example intangible assets such as customer relations, brands, patents and financial liabilities. Goodwill arises when the purchase price exceeds the fair value of recognizable acquired net assets. In acquisitions with non-controlling In case there is a put option for non-controlling |
Non-controlling interest | Non-controlling The Company treats transactions with non-controlling non-controlling non-controlling When the Company ceases to have control, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest in an associate or financial asset. In addition, any amounts previously recognized in Other comprehensive income in respect of that entity are accounted for as if the Company had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in Other comprehensive income are reclassified to profit or loss. At acquisition, there is a choice on an acquisition-by-acquisition non-controlling non-controlling |
Joint ventures and associated companies | Joint ventures and associated companies Joint ventures and associated companies are accounted for in accordance with the equity method. Under the equity method, the investment in joint venture or associate is initially recognized at cost and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. If the Company’s interest in an associated company is nil, the Company shall not, as prescribed by IFRS, recognize its part of any future losses. Provisions related to obligations for such an interest shall, however, be recognized in relation to such an interest. Investments in associated companies, i.e., when the Company has significant influence and the power to participate in the financial and operating policy decisions of the associated company, but is not in control or joint control over those policies. Normally, this is the case in voting stock interest, including effective potential voting rights, which stand at least at 20% but not more than 50%. The Company’s share of income before taxes is reported in item “Share in earnings of joint ventures and associated companies,” included in Operating Income. This reflects the fact that these interests are held for operating rather than investing or financial purposes. Ericsson’s share of income taxes related to associated companies is reported under the line item “Taxes,” in the income statement. Unrealized gains on transactions between the Company and its joint ventures and associated companies are eliminated to the extent of the Company’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Shares in earnings of joint ventures and associated companies included in consolidated equity which are undistributed are reported in Retained earnings in the balance sheet. Impairment testing as well as recognition or reversal of impairment of investments in each joint venture and associated company is performed in the same manner as for intangible assets other than goodwill. The entire carrying value of each investment, including goodwill, is tested as a single asset. See also description under “Intangible assets other than goodwill” below. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in Other comprehensive income are reclassified to profit or loss where appropriate. In Note C2, “Critical Accounting Estimates and Judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied. |
Foreign currency remeasurement and translation | Foreign currency remeasurement and translation Items included in the financial statements of each entity of the Company are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Swedish Krona (SEK), which is the Parent Company’s functional and presentation currency. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of each respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end Changes in the fair value of monetary securities denominated in foreign currency classified as available-for-sale Translation differences on non-monetary |
Group companies | Group companies The results and financial position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet. Period income and expenses for each income statement are translated at period average exchange rates. All resulting net exchange differences are recognized as a separate component of Other comprehensive income (OCI). On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and of borrowings and other currency instruments designated as hedges of such investments, are accounted for in OCI. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in OCI are recognized in the income statement as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. The Company is continuously monitoring the economies with high inflation, the risk of hyperinflation and potential impact on the Company. There is no significant impact due to any currency translation of a hyper-inflationary economy. |
Statement of cash flows | Statement of cash flows The statement of cash flows is prepared in accordance with the indirect method. Cash flows in foreign subsidiaries are translated at the average exchange rate during the period. Payments for subsidiaries acquired or divested are reported as cash flow from investing activities, net of cash and cash equivalents acquired or disposed of respectively. Cash and cash equivalents consist of cash, bank, and interest-bearing securities that are highly liquid monetary financial instruments with a remaining maturity of three months or less at the date of acquisition. |
Revenue recognition | Revenue recognition Background The Company offers a comprehensive portfolio of telecommunication and data communication systems, professional services, and support solutions. Products, both hardware and software as well as services, are in general standardized. The impact of this is that any acceptance terms are normally only formal requirements. In Note C3, “Segment information,” the Company’s products and services are disclosed in more detail as per operating segment. The Company’s products and services are generally sold under delivery-type or multi-year recurring services contracts. The delivery type contracts often contain content from more than one segment. Accounting treatment Sales are based on fair values of consideration received and recorded net of value added taxes, goods returned and estimated trade discounts. Revenue is recognized when risks and rewards have been transferred to the customer, with reference to all significant contractual terms, when: • The product or service has been delivered • The revenue amount is fixed or determinable • The customer has received and activation has been made of separately sold software • Collection is reasonably assured Estimations of contractual performance criteria impact the timing and amounts of revenue recognized and may therefore defer revenue recognition until the performance criteria are met. The profitability of contracts is periodically assessed, and provisions for any estimated losses are made immediately when losses are probable. Allocation and/or timing criteria specific to each type of contract are: • Delivery-type contracts – These contracts relate to delivery, installation, integration of products and provision of related services, normally under multiple elements contracts. Under multiple elements contracts, accounting is based on that the revenue recognition criteria are applied to the separately identifiable components of the contract. Revenue, including the impact of any discount or rebate, is allocated to each element based on relative fair values. • Contracts for services – These relate to multi-year service contracts such as support- and managed service contracts and other types of recurring services. Revenue is recognized when the services have been provided, generally pro rata over the contract period. • Contracts generating license fees from third-parties for the use of the Company’s intellectual property rights – License fees are measured based on the substance of the contract. Examples are a percentage of sales or currency amount per unit and recognized over the license period or at a single point of time when no obligations remain. The amount of consideration shall also be reasonably certain. Networks and Digital services have contracts that relate to this type of arrangement. For sales between consolidated companies, associated companies, joint ventures and segments, the Company applies arm’s length pricing. In Note C2, “Critical accounting estimates and judgments,” a further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied. |
Earnings per share | Earnings per share Basic earnings per share are calculated by dividing net income attributable to stockholders of the Parent Company by the weighted average number of shares outstanding (total number of shares less treasury stock) during the year. Diluted earnings per share are calculated by dividing net income attributable to stockholders of the Parent Company, when appropriately adjusted by the sum of the weighted average number of ordinary shares outstanding and dilutive potential ordinary shares. Potential ordinary shares are treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share. Rights to matching shares are considered dilutive when the actual fulfillment of any performance conditions as of the reporting date would give a right to ordinary shares. |
Financial assets | Financial assets Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. Regular purchases and sales of financial assets are recognized on the settlement date. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. Separate assets or liabilities are recognized if any rights and obligations are created or retained in the transfer. The Company classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, and available-for-sale. Financial assets are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the income statement. The fair values of quoted financial investments and derivatives are based on quoted market prices or rates. If official rates or market prices are not available, fair values are calculated by discounting the expected future cash flows at prevailing interest rates. Valuations of foreign exchange options and Interest Rate Guarantees (IRG) are made by using the Black-Scholes formula. Inputs to the valuations are market prices for implied volatility, foreign exchange and interest rates. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss either are designated as such at initial recognition or are financial assets held for trading. A financial asset is classified as held for trading if it is acquired principally for the purpose of selling in the near term. Derivatives are classified as held for trading, unless they are designated as hedging instruments for the purpose of hedge accounting. Assets held for trading are classified as current assets. Gains or losses arising from changes in the fair values of the “Financial assets at fair value through profit or loss” category (excluding derivatives) are presented in the income statement within Financial income in the period in which they arise. Derivatives are presented in the income statement either as Cost of sales, Other operating income, Financial income or Financial expense, depending on the intent with the transaction. Loans and receivables Receivables, including those that relate to customer financing, are subsequently measured at amortized cost using the effective interest rate method, less allowances for impairment charges. Trade receivables include amounts due from customers. The balance represents amounts billed to customers as well as amounts where risk and rewards have been transferred to the customer but the invoice has not yet been issued. Collectability of the receivables is assessed for purposes of initial revenue recognition. Available-for-sale Investments in liquid bonds with low credit risk which are not held for trading are classified as available-for-sale. non-current. available-for-sale Dividends on available-for-sale Changes in the fair value of monetary securities denominated in a foreign currency and classified as available-for-sale non-monetary non-monetary available-for-sale available-for-sale Impairment in relation to financial assets At each balance sheet date, the Company assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of equity securities classified as available-for-sale, available-for-sale An assessment of impairment of receivables is performed when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the trade receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognized in the income statement within selling expenses. When a trade receivable is finally established as uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited to selling expenses in the income statement. |
Financial liabilities | Financial liabilities Financial liabilities are recognized when the Company becomes bound to the contractual obligations of the instrument. Financial liabilities are derecognized when they are extinguished, i.e., when the obligation specified in the contract is discharged, cancelled or expires. Borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. Trade payables Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. Fair value hedging and fair value hedge accounting The purpose of fair value hedges is to hedge the variability in the fair value of fixed-rate debt (issued bonds) from changes in the relevant benchmark yield curve for its entire term by converting fixed interest payments to a floating rate (e.g., STIBOR or LIBOR) by using interest rate swaps (IRS). The credit risk/ spread is not hedged. The fixed leg of the IRS is matched against the cash flows of the hedged bond. Hereby, the fixed-rate bond/debt is converted into a floating-rate debt in accordance with the policy. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, when hedge accounting is applied. The Company only applies fair value hedge accounting for hedging fixed interest risk on borrowings. Both gains and losses relating to the interest rate swaps hedging fixed rate borrowings and the changes in the fair value of the hedged fixed rate borrowings attributable to interest rate risk are recognized in the income statement within Financial expenses. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortized to the income statement over the remaining period to maturity. When applying fair value hedge accounting, derivatives are initially recognized at fair value at trade date and subsequently re-measured At the inception of the hedge, the Company documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of the hedged items. The fair values of various derivative instruments used for hedging purposes are disclosed in Note C20, “Financial risk management and financial instruments.” Movements in the hedging reserve in OCI are shown in Note C16, “Equity and other comprehensive income.” The fair value of a hedging derivative is classified as a non-current |
Financial guarantees | Financial guarantees Financial guarantee contracts are initially recognized at fair value (i.e., usually the fee received). Subsequently, these contracts are measured at the higher of: • The amount determined as the best estimate of the net expenditure required to settle the obligation according to the guarantee contract. • The recognized contractual fee less cumulative amortization when amortized over the guarantee period, using the straight-line-method. • The best estimate of the net expenditure comprising future fees and cash flows from subrogation rights. |
Inventories | Inventories Inventories are measured at the lower of cost or net realizable value on a first-in, first-out Risks of obsolescence have been measured by estimating market value based on future customer demand and changes in technology and customer acceptance of new products. A significant part of Inventories is Contract work in progress (CWIP). Recognition and derecognition of CWIP relates to the Company’s revenue recognition principles meaning that costs incurred under a customer contract are recognized as CWIP. When revenue is recognized, CWIP is derecognized and is instead recognized as Cost of sales. In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied. |
Goodwill | Goodwill As from the acquisition date, goodwill acquired in a business combination is allocated to each cash-generating unit (CGU) of the Company expected to benefit from the synergies of the combination. An annual impairment test for the CGUs to which goodwill has been allocated is performed in the fourth quarter, or when there is an indication of impairment. An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The recoverable amount is the higher of the value in use and the fair value less costs of disposal. In assessing value in use, the estimated future cash flows after tax are discounted to their present value using an after-tax before-tax before-tax Additional disclosure is required in relation to goodwill impairment testing: see Note C2, “Critical accounting estimates and judgments” below and Note C10, “Intangible assets.” |
Intangible assets | Intangible assets Intangible assets other than goodwill Intangible assets other than goodwill comprise intangible assets acquired through business combinations, such as patents, customer relations, trademarks and software, as well as capitalized development expenses and separately acquired intangible assets, mainly consisting of software. At initial recognition, acquired intangible assets related to business combinations are stated at fair value and capitalized development expenses and software are stated at cost. Subsequent to initial recognition, these intangible assets are stated at initially recognized amounts less accumulated amortization and any impairment. Amortization and any impairment losses are included in Research and development expenses, which mainly consists of capitalized development expenses and technology; in Selling and administrative expenses, which mainly consists of expenses relating to customer relations and brands; and in Cost of sales. Costs incurred for development of products to be sold, leased, or otherwise marketed or intended for internal use are capitalized as from when technological and economic feasibility has been established until the product is available for sale or use. Research and development expenses directly related to orders from customers are accounted for as a part of Cost of sales. Other research and development expenses are charged to income as incurred. Amortization of acquired intangible assets, such as patents, customer relations, trademarks, and software, is made according to the straight-line method over their estimated useful lives, not exceeding ten years. The Company has not recognized any intangible assets with indefinite useful life other than goodwill. Impairment tests are performed whenever there is an indication of possible impairment. Tests are performed as for goodwill, see above. However, intangible assets not yet available for use are tested annually. Corporate assets have been allocated to cash-generating units in relation to each unit’s proportion of total net sales. The amount related to corporate assets is not significant. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied. |
Property, plant, and equipment | Property, plant, and equipment Property, plant, and equipment consist of real estate, machinery, servers and other technical assets, other equipment, tools and installation and construction in process and advance payment. They are stated at cost less accumulated depreciation and any impairment losses. Depreciation is charged to income, on a straight-line basis, over the estimated useful life of each component of an item of property, plant, and equipment, including buildings. Estimated useful lives are, in general, 25–50 years for real estate and 3–10 years for machinery and equipment. Depreciation and any impairment charges are included in Cost of sales, Research and development or Selling and administrative expenses. The Company recognizes in the carrying amount of an item of property, plant, and equipment the cost of replacing a component and derecognizes the residual value of the replaced component. Impairment testing as well as recognition or reversal of impairment of property, plant and equipment is performed in the same manner as for intangible assets other than goodwill, see description under “Intangible assets other than goodwill” above. Gains and losses on disposals are determined by comparing the proceeds less cost to sell with the carrying amount and are recognized within Other operating income and expenses in the income statement. |
Leasing | Leasing Leasing when the Company is the lessee Leases on terms in which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that type of asset, although the depreciation period must not exceed the lease term. Other leases are operating leases, and the leased assets under such contracts are not recognized on the balance sheet. Costs under operating leases are recognized in the income statement on a straight-line basis over the term of the lease. Lease incentives received are recognized as an integral part of the total lease expense, over the term of the lease. Leasing when the Company is the lessor Leasing contracts with the Company as lessor are classified as finance leases when the majority of risks and rewards are transferred to the lessee, and otherwise as operating leases. Under a finance lease, a receivable is recognized at an amount equal to the net investment in the lease and revenue is recognized in accordance with the revenue recognition principles. Under operating leases the equipment is recorded as property, plant and equipment and revenue as well as depreciation is recognized on a straight-line basis over the lease term. |
Income taxes | Income taxes Income taxes in the consolidated financial statements include both current and deferred taxes. Income taxes are reported in the income statement unless the underlying item is reported directly in equity or OCI. For those items, the related income tax is also reported directly in equity or OCI. A current tax liability or asset is recognized for the estimated taxes payable or refundable for the current year or prior years. Deferred tax is recognized for temporary differences between the book values of assets and liabilities and their tax values and for tax loss carry-forwards. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences and tax loss carry-forwards can be utilized. In the recognition of income taxes, the Company offsets current tax receivables against current tax liabilities and deferred tax assets against deferred tax liabilities in the balance sheet, when the Company has a legal right to offset these items and the intention to do so. Deferred tax is not recognized for the following temporary differences: goodwill not deductible for tax purposes, for the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and for differences related to investments in subsidiaries when it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is measured at the tax rate that is expected to be applied to the temporary differences when they reverse, based on the tax laws that have been enacted or substantively enacted by the reporting date. An adjustment of deferred tax asset/liability balances due to a change in the tax rate is recognized in the income statement, unless it relates to a temporary difference earlier recognized directly in equity or OCI, in which case the adjustment is also recognized in equity or OCI. The measurement of deferred tax assets involves judgment regarding the deductibility of costs not yet subject to taxation and estimates regarding sufficient future taxable income to enable utilization of unused tax losses in different tax jurisdictions. All deferred tax assets are subject to annual review of probable utilization. In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied. |
Provisions and contingent liabilities | Provisions and contingent liabilities Provisions are made when there are legal or constructive obligations as a result of past events and when it is probable that an outflow of resources will be required to settle the obligations and the amounts can be reliably estimated. When the effect of the time value of money is material, discounting is made of estimated outflows. However, the actual outflows as a result of the obligations may differ from such estimates. The provisions are mainly related to restructuring, customer and supplier related provisions, warranty commitments and other obligations, such as unresolved income tax and value added tax issues, claims or obligations as a result of patent infringement and other litigations and customer finance guarantees . Product warranty commitments consider probabilities of all material quality issues based on historical performance for established products and expected performance for new products, estimates of repair cost per unit, and volumes sold still under warranty up to the reporting date. A restructuring obligation is considered to have arisen when the Company has a detailed formal plan for the restructuring (approved by management), which has been communicated in such a way that a valid expectation has been raised among those affected. Provision for restructuring is recorded when the Company can reliably estimate the liabilities relating to the obligation. Project related provisions include estimated losses on onerous contracts, contractual penalties and undertakings. For losses on customer contracts, a provision equal to the total estimated loss is recorded when a loss from a contract is anticipated and possible to estimate reliably. These contract loss estimates include any probable penalties to a customer under a loss contract. Other provisions include provisions for unresolved tax issues, litigations, customer finance and other provisions. The Company provides for estimated future settlements related to patent infringements based on the probable outcome of each infringement. The actual outcome or actual cost of settling an individual infringement may vary from the Company’s estimate. The Company estimates the outcome of any potential patent infringement made known to the Company through assertion and through the Company’s own monitoring of patent-related cases in the relevant legal systems. To the extent that the Company makes the judgment that an identified potential infringement will more likely than not result in an outflow of resources, the Company records a provision based on the Company’s best estimate of the expenditure required to settle with the counterpart. In the ordinary course of business, the Company is subject to proceedings, lawsuits and other unresolved claims, including proceedings under laws and government regulations and other matters. These matters are often resolved over a long period of time. The Company regularly assesses the likelihood of any adverse judgments in or outcomes of these matters, as well as potential ranges of possible losses. Provisions are recognized when it is probable that an obligation has arisen and the amount can be reasonably estimated based on a detailed analysis of each individual issue. Certain present obligations are not recognized as provisions as it is not probable that an economic outflow will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. Such obligations are reported as contingent liabilities. For further detailed information, see Note C24, “Contingent liabilities.” In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied. |
Post-employment benefits | Post-employment benefits Pensions and other post-employment benefits are classified as either defined contribution plans or defined benefit plans. Under a defined contribution plan, the Company’s only obligation is to pay a fixed amount to a separate entity (a pension trust fund) with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits. The related actuarial and investment risks fall on the employee. The expenditures for defined contribution plans are recognized as expenses during the period when the employee provides service. Under a defined benefit plan, it is the Company’s obligation to provide agreed benefits to current and former employees. The related actuarial and investment risks fall on the Company. The present value of the defined benefit obligations for current and former employees is calculated using the Projected Unit Credit Method. The discount rate for each country is determined by reference to market yields on high-quality corporate bonds that have maturity dates approximating the terms of the Company’s obligations. In countries where there is no deep market in such bonds, the market yields on government bonds are used. The calculations are based upon actuarial assumptions, assessed on a quarterly basis, and are as a minimum prepared annually. Actuarial assumptions are the Company’s best estimate of the variables that determine the cost of providing the benefits. When using actuarial assumptions, it is possible that the actual results will differ from the estimated results or that the actuarial assumptions will change from one period to another. These differences are reported as actuarial gains and losses. They are, for example, caused by unexpectedly high or low rates of employee turnover, changed life expectancy, salary changes, remeasurement of plan assets and changes in the discount rate. Actuarial gains and losses are recognized in OCI in the period in which they occur. The Company’s net liability for each defined benefit plan consists of the present value of pension commitments less the fair value of plan assets and is recognized net on the balance sheet. When the result is a net benefit to the Company, the recognized asset is limited to the present value of any future refunds from the plan or reductions in future contributions to the plan. Interest cost on the defined benefit obligation and interest income on plan assets is calculated as a net interest amount by applying the discount rate to the net defined benefit liability. All past service costs are recognized immediately. Swedish special payroll tax is accounted for as a part of the pension cost and the pension liability respectively. Payroll taxes related to actuarial gains and losses are included in determining actuarial gains and losses, reported under OCI. In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to key sources of estimation uncertainty. |
Share-based compensation to employees and the Board of Directors | Share-based compensation to employees and the Board of Directors Share-based compensation is related to remuneration to employees, including key management personnel and the Board of Directors and could be settled either in shares or cash. Under IFRS, a company shall recognize compensation costs for share-based compensation programs based on a measure of the value to the company of services received under the plans. The conditions under a program shall be considered as prescribed in IFRS 2. The share-based programs are as of 2017 both share – and cash settled but as from 2017 granted plans are, except for plans for the Executive team, cash settled. Share settled plans Compensation costs are recognized during the vesting period, based on the fair value of the Ericsson share at the grant date, as well as considering performance – and market conditions. Examples of performance conditions could be revenue and profit targets while market conditions relates to the development of the Parent Company´s share price. The amount charged to the income statement for these plans is reversed in equity each time of the income statement charge. The reason for this IFRS accounting principle is that compensation cost for a share settled program is a cost with no direct cash flow impact. All plans have service conditions and some of them have performance or market conditions. For further detailed information, see Note C28, “Information regarding members of the Board of Directors, the Group management and employees.” Cash settled plans The total compensation expense for a cash settled plan is equal to the payments made to the employees at the date of end of the service period. The fair value of the synthetic shares, being the cash equivalents of shares, is therefore reassessed and amended during the service period. Otherwise the accounting is similar to a share settled plan. For further detailed information, see Note C28, “Information regarding members of the Board of Directors, the Group management and employees.” Compensation to the Board of Directors During 2008, the Parent Company introduced a share-based compensation program as a part of the remuneration to the Board of Directors (a synthetic share program). The program gives non-employee |
Segment reporting | Segment reporting An operating segment is a component of a company whose operating results are regularly reviewed by the Company’s chief operating decision maker, (CODM), to make decisions about resources to be allocated to the segment and assess its performance. The President and the Chief Executive Officer is defined as the CODM function in the Company. The segment presentation, as per each segment, is based on the Company’s accounting policies as disclosed in this note. The arm’s length principle is applied in transactions between the segments. The Company’s segment disclosure about geographical areas is based on the country in which transfer of risks and rewards occur. For further information, see Note C3, “Segment information.” |
New standards and interpretations | Accounting Policy – New standards and interpretations A number of issued new standards, amendments to standards and interpretations are not yet effective for the year ended December 31, 2017 and have not been applied in preparing these consolidated financial statements. Below is a list of applicable standards/interpretations that have been issued and are effective for periods as described per standard. IFRS 9, “Financial instruments” is effective from January 1, 2018. The complete version of IFRS 9 replaces most of the guidance in IAS 39, which had been applied in the current reporting period ended December 31, 2017. IFRS 15, “Revenue from Customer Contracts” is effective from January 1, 2018. This new standard replaces guidance in IAS 18 and IAS 11, which had been applied in the current reporting period ended December 31, 2017. IFRS 16, “Leases” is effective from January 1, 2019. This new standard replaces guidance in IAS 17 Leases and the related interpretations IFRIC 4, SIC-15 SIC-27. The following table illustrates the impact of the implementation of IFRS 9 and IFRS 15 on equity and other balance sheet items at the transition date of January 1, 2018. IFRS 15 will be applied on a full retrospective basis which means that the comparative financial statements will be restated. IFRS 9 will be applied at January 1, 2018 which means that the opening balances at January 1, 2018 will be adjusted, but the previous periods will not be restated. Estimated impact of IFRS 9 and IFRS 15 on Balance sheet items Restated Adjusted As reported IFRS 15 balance IFRS 9 balance at 31.12. 2017 restatement 31.12. 2017 adjustment 1.1.2018 Assets Non-current Deferred tax assets 21,228 735 21,963 407 22,370 Current assets Inventories 24,960 587 25,547 — 25,547 Contract assets — 13,120 13,120 — 13,120 Trade receivables 63,210 –15,105 48,105 –1,240 46,865 Equity and liabilities Equity 100,176 –2,605 97,571 –1,401 96,170 Non-current Borrowings, non-current 30,500 — 30,500 568 31,068 Current liabilities Contract liabilities — 22,121 22,121 — 22,121 Other current liabilities 62,370 –20,179 42,191 — 42,191 IFRS 9 – Financial instruments The complete version of IFRS 9 replaces most of the guidance in IAS 39. IFRS 9 updates the classification, measurement and impairment of financial assets as well as provides new requirements for hedge accounting. The Company will apply IFRS 9 retrospectively on the required effective date, January 1, 2018, and will not restate comparative information. The transition to IFRS 9 is estimated to reduce equity by SEK 1.4 billion on January 1, 2018. The main impact from adopting IFRS 9 will be that impairment losses for trade receivables and contract assets will be calculated based on lifetime expected credit losses (ECL) instead of objective evidence that the Company will not be able to collect, as under the previous standards. This does not represent a change in expected cash flows collected by the Company. Rather, this represents a change in the timing of the recognition of losses, which in most cases is earlier under IFRS 9 compared to the previous standards. At transition, the loss allowance for trade receivables is estimated to increase by SEK 1.2 billion. The other changes from implementing IFRS 9 are described below. • Investments in liquid bonds with low credit risk which are not held for trading were classified as available-for-sale These instruments are held in a portfolio managed on a fair value basis and will therefore be classified fair value through profit or loss (FVTPL). There will be no change in the valuation of these assets. • Trade receivables are managed in a business model whose objective is achieved through both collection of contractual cash flows and selling of assets. Therefore, trade receivables will be classified as fair value through other comprehensive income (FVOCI). • Customer finance assets are managed in a business model with the objective to realize cash flows through the sale of assets. Therefore, customer finance will be classified FVTPL. There will be no change in the carrying value of these assets at transition. • Investments in equity instruments, which were classified as available-for-sale • Notes, bonds, and loans issued by the Parent Company are managed on a fair value basis and will therefore be designated as FVTPL with changes in fair value due to changes in credit risk realized in OCI. As a result, the carrying value of borrowings is estimated to increase by SEK 0.6 billion. Fair value hedge accounting will not be applied to any borrowings as from 2018. IFRS 15 – Revenue from Contracts with Customers IFRS 15 replaces guidance in IAS 18 and IAS 11. This standard establishes a new principle-based model of recognizing revenue from customer contracts. It introduces a five-step model that requires revenue to be recognized when control over goods and services are transferred to the customer. The Company will adopt the full retrospective method for transition which requires restatement of prior year comparatives and adjustment to equity in the earliest presented comparative period, i.e. January 1, 2016 (‘initial application date’). The Company has completed its assessment of the impact of IFRS 15 to its financial statements for all relevant comparative periods. Additional processes were implemented as part of the quantification exercise to accurately identify material transition impact, thus enabling it to be disclosed as part of the financial reporting process. The impact of IFRS 15 is estimated to be a net reduction to equity at transition date, January 1, 2018, of SEK 2.6 billion. The main impacted areas are described below. Discount in a contract The definition of a contract in IFRS 15 is stricter than standards effective prior to 2018 (previous standards) in that a contract exists only when enforceable rights and obligations are present. The majority of the Company’s business is conducted via frame agreements. Typically, a customer purchase order, together with a frame agreement, creates a firm enforceable commitment. The stricter definition of a contract affects how discounts are accounted for, as discounts shall be applied over the value and duration of a contract. Under the previous standards, the Company considers a broader interpretation of a contract from which it reasonably expects to derive benefit. For a business covered by frame agreement this may result in a longer timeframe for recognition of related discounts as future expected purchases are included in the assessment. The impact of IFRS 15 is that these discounts shall be recognized as a reduction in revenue earlier. Customized solution contract Under IFRS 15 revenue for customized solution contracts shall be recognized over time if certain criteria are met. These contracts relate to the construction of assets specifically customized for the customer and with no alternative use to the Company. IFRS 15 also requires the Company to have enforceable right to payment for performance completed to date. The Company recognized revenue under previous standards over the duration of these contracts based on defined delivery milestones. No significant changes are expected in the method of measuring progress of completion over the duration of the contract. However, the additional requirement under IFRS 15 will ensure that revenue is recognized for performance completed to date based on enforceable right to payment that exists at that point. The Company has identified ongoing contracts where revenue will be deferred as the performance completed to date is restricted under IFRS 15 to enforceable billing rights under the contracts. Transfer of control for equipment Under IFRS 15, revenue shall be recognized when control over the equipment is transferred to the customer at a point in time. This assessment shall be viewed from a customer’s perspective considering indicators such as transfer of titles and risks, customer acceptance, physical possession, and billing rights. For hardware sale, transfer of control is usually deemed to occur when equipment arrives at the customer site and for software sale, when the licences are made available to the customer. Contractual terms may vary, therefore judgment will be applied when assessing the indicators of transfer of control. The accounting treatment under previous standards focused on a risk and reward assessment. The Company has identified contracts where the transfer of control under IFRS 15 differs from the previous risk and reward assessment. The resulting impact is a delay in revenue recognition on these contracts. Under previous standards revenue is recognized on these contracts when risk of the equipment are transferred at handover points, but the definition of transfer of control in IFRS 15 means that other factors such as billing right and physical possession together indicate that transfer of control occurs at a later point. Presentation of contract related balances The new requirement for classification and presentation of contract related balances under IFRS 15 will result in a separate presentation of the contract asset and contract liability balances. At transition date, contract asset balance, estimated to be SEK 13.1 billion, will be presented separately within current assets. Under previous standards these balances have been included within trade receivables as the accounting policy (see Note C1) for 2017 states that trade receivables include amounts where risks and rewards have been transferred to the customer but not yet invoiced. Under IFRS 15, these balances will be presented as contract assets since the Company concluded that they relate to contract assets that are conditional on terms other than only the passage of time. At transition date, contract liability balance, estimated to be SEK 22.1 billion, will be presented separately within current liabilities. Under previous standards these balances have been disclosed as deferred revenue within other current liabilities, and the Company concluded that they meet the definition of contract liability under IFRS 15. The Company has considered the key areas impacted above and implemented the significant changes to the accounting principles, internal processes and internal controls framework to reflect the new revenue recognition model from January 1, 2018. The Company expects to use a number of estimates and judgments in determining the amount and timing of revenue under IFRS 15, particularly when determining the transaction price and its allocation to performance obligations identified under the contract. Transaction price may consist of variable elements such as performance related price and contract penalties that are estimated at the commencement of the contract (and periodically thereafter). Judgment is used in the estimation process based on historical experience with the type of business and customer. IFRS 15 also requires revenue to be allocated to each performance obligations by reference to their standalone selling prices. The Company considers that an adjusted market assessment approach should be used to estimate stand-alone selling prices for its products and services for the purposes of allocating transaction price. As the Company will adopt the full retrospective method for IFRS 15 implementation, the impacts on equity (at initial application date of January 1, 2016) and on the income statement (for years 2016 and 2017) are presented in the tables below. Estimated impact of IFRS 15 on Equity As reported Impact of Restated December 31, 2015 147,366 –4,353 143,013 December 31, 2016 140,492 –5,235 135,257 Estimated impact of IFRS 15 on Income statement items As reported Impact of Restated 2017 Net sales 201,303 4,075 205,378 Cost of sales –156,758 –703 –157,461 Gross income 44,545 3,372 47,917 Operating income (loss) –38,126 3,372 –34,754 Taxes 4,267 –742 3,525 Net income (loss) –35,063 2,630 –32,433 2016 Net sales 222,608 –2,292 220,316 Cost of sales –156,243 1,160 –155,083 Gross income 66,365 –1,132 65,233 Operating income 6,299 –1,132 5,167 Taxes –2,131 249 –1,882 Net income 1,895 –883 1,012 IFRS 16 – Leases In January 2016, IASB issued a new lease standard, IFRS 16, that will replace IAS 17 Leases and the related interpretations IFRIC 4, SIC-15 SIC-27. |
C1 Significant accounting pol42
C1 Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Impact on Implementation of IFRS 9 and IFRS 15 on Equity and Other Balance Sheet Items | Estimated impact of IFRS 9 and IFRS 15 on Balance sheet items Restated Adjusted As reported IFRS 15 balance IFRS 9 balance at 31.12. 2017 restatement 31.12. 2017 adjustment 1.1.2018 Assets Non-current Deferred tax assets 21,228 735 21,963 407 22,370 Current assets Inventories 24,960 587 25,547 — 25,547 Contract assets — 13,120 13,120 — 13,120 Trade receivables 63,210 –15,105 48,105 –1,240 46,865 Equity and liabilities Equity 100,176 –2,605 97,571 –1,401 96,170 Non-current Borrowings, non-current 30,500 — 30,500 568 31,068 Current liabilities Contract liabilities — 22,121 22,121 — 22,121 Other current liabilities 62,370 –20,179 42,191 — 42,191 |
Summary of Estimated Impact of IFRS 15 on Equity | Estimated impact of IFRS 15 on Equity As reported Impact of Restated December 31, 2015 147,366 –4,353 143,013 December 31, 2016 140,492 –5,235 135,257 |
Summary of Estimated Impact of IFRS 15 on Income Statement Items | Estimated impact of IFRS 15 on Income statement items As reported Impact of Restated 2017 Net sales 201,303 4,075 205,378 Cost of sales –156,758 –703 –157,461 Gross income 44,545 3,372 47,917 Operating income (loss) –38,126 3,372 –34,754 Taxes 4,267 –742 3,525 Net income (loss) –35,063 2,630 –32,433 2016 Net sales 222,608 –2,292 220,316 Cost of sales –156,243 1,160 –155,083 Gross income 66,365 –1,132 65,233 Operating income 6,299 –1,132 5,167 Taxes –2,131 249 –1,882 Net income 1,895 –883 1,012 |
C3 Segment information (Tables)
C3 Segment information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of operating segments | Operating segments 2017 Networks Digital Services Managed Services Other Total Unallocated Group Segment sales 127,966 40,981 24,494 7,862 201,303 — 201,303 Net sales 127,966 40,981 24,494 7,862 201,303 — 201,303 Gross income 40,622 4,361 –1,816 1,378 44,545 — 44,545 Gross margin (%) 32 % 11 % –7 % 18 % 22 % 22 % Operating income (loss) 7,644 –27,672 –4,274 –13,824 –38,126 — –38,126 Operating margin (%) 6 % –68 % –17 % –176 % –19 % — –19 % Financial income –361 Financial expenses –843 Income after financial items –39,330 Taxes 4,267 Net income (loss) –35,063 Other segment items Share in earnings of JV and associated companies 22 8 –6 — 24 — 24 Amortization –1,104 –2,465 –14 –765 –4,348 — –4,348 Depreciation –1,883 –1,268 –193 –759 –4,103 — –4,103 Impairment losses –1,413 –9,349 –108 –8,571 –19,441 — –19,441 Restructuring expenses –4,828 –2,513 –675 –485 –8,501 — –8,501 Gains/losses on sale of investments and operations 316 –56 1 –67 194 — 194 Operating segments 2016 Networks Digital Services Managed Services Other Total Unallocated Group Segment sales 140,984 45,298 27,501 8,825 222,608 — 222,608 Net sales 140,984 45,298 27,501 8,825 222,608 — 222,608 Gross income 47,099 16,081 1,062 2,123 66,365 — 66,365 Gross margin (%) 33 % 36 % 4 % 24 % 30 % — 30 % Operating income 17,570 –6,663 –507 –4,101 6,299 — 6,299 Operating margin (%) 12 % –15 % –2 % –46 % 3 % — 3 % Financial income –115 Financial expenses –2,158 Income after financial items 4,026 Taxes –2,131 Net income 1,895 Other segment items Share in earnings of JV and associated companies 11 22 — –2 31 — 31 Amortization –1,526 –1,923 –18 –998 –4,465 — –4,465 Depreciation –2,532 –1,061 –341 –487 –4,421 — –4,421 Impairment losses –90 –38 –12 –101 –241 — –241 Reversals of impairment losses 5 2 1 — 8 — 8 Restructuring expenses –3,413 –3,176 –382 –596 –7,567 — –7,567 Gains/losses on sale of investments and operations 72 27 18 6 123 — 123 Operating segments 2015 Networks Digital Services Managed Service Other Total Segments Unallocated Group Segment sales 157,791 49,443 30,597 9,089 246,920 — 246,920 Net sales 157,791 49,443 30,597 9,089 246,920 — 246,920 Gross income 59,653 21,264 1,655 3,246 85,818 — 85,818 Gross margin (%) 38 % 43 % 5 % 36 % 35 % — 35 % Operating income 28,290 –3,389 –19 –3,077 21,805 — 21,805 Operating margin (%) 18 % –7 % — –34 % 9 % — 9 % Financial income 525 Financial expenses –2,458 Income after financial items 19,872 Taxes –6,199 Net income 13,673 Other segment items Share in earnings of JV and associated companies –1 –33 10 –14 –38 — –38 Amortization –2 042 –2 469 –47 –960 –5 518 — –5,518 Depreciation –2 865 –1 012 –388 –440 –4 705 — –4,705 Impairment losses — — — –20 –20 — –20 Reversals of impairment losses 10 3 1 2 16 — 16 Restructuring expenses –2 765 –1 875 –238 –162 –5 040 — –5,040 Gains/losses on sale of investments and operations –32 –10 –7 — –49 — –49 |
Summary of geographical information | Market areas Net sales Non-current 5) 2017 2016 2015 2017 2016 2015 South East Asia, Oceania & India 30,568 32,597 32,155 512 690 668 North East Asia 4) 23,506 27,185 28,106 1,516 1,556 2,005 North America 3) 49,621 52,003 55,063 8,387 14,650 14,870 Europe & Latin America 1) 2) 56,175 62,543 73,603 39,559 59,737 55,325 Middle East & Africa 25,073 28,104 33,002 63 86 139 Other 1)2)3)4) 16,360 20,176 24,991 — — — Total 201,303 222,608 246,920 50,037 76,719 73,007 1) Of which in Sweden 6) 2,989 3,123 3,796 34,381 53,111 48,467 2) Of which in EU 6) 36,072 38,525 45,585 37,895 57,759 53,759 3) Of which in the United States 6) 52,322 56,748 64,299 7,092 11,053 12,325 4) Of which in China 6) 14,937 19,156 18,977 1,123 530 1,547 5) Total non-current 6) Including IPR revenue reported under Other above. |
C4 Net sales (Tables)
C4 Net sales (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Net Sales | Net sales 2017 2016 2015 Sales of products and network rollout services 123,990 135,778 150,775 Professional Services sales 69,408 76,816 81,749 License revenues 7,905 10,014 14,396 Net sales 201,303 222,608 246,920 Export sales from Sweden 86,812 107,036 117,486 |
C5 Expenses by nature (Tables)
C5 Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Expenses by Nature | Expenses by nature 2017 2016 2015 Goods and services 128,211 133,848 137,458 Employee remuneration 76,502 77,774 80,054 Amortization and depreciation 8,451 8,886 10,223 Impairments and obsolescence allowances, net of reversals 11,531 1,325 1,438 Financial expenses 843 2,158 2,458 Taxes –4,267 2,131 6,199 Expenses incurred 221,271 226,122 237,830 Inventory increase/decrease (–/+) 1) 4,070 –606 –394 Additions to capitalized development –1,444 –4,483 –3,548 Expenses charged to the income statement 223,897 221,033 233,888 1) The inventory changes are based on changes of net inventory values. |
Summary of Restructuring Charges by Function | Restructuring charges by function 2017 2016 2015 Cost of sales 5,242 3,475 2,274 R&D expenses 2,307 2,739 2,021 Selling and administrative expenses 952 1,353 745 Total restructuring charges 8,501 7,567 5,040 |
C6 Other operating income and46
C6 Other operating income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Other Operating Income and Expenses | Other operating income and expenses 2017 2016 2015 Other operating income Gains on sales of intangible assets and PP&E 47 423 363 Gains on sales of investments and operations 1) 324 219 1 Other operating revenues 783 1,345 1,204 Total other operating income 1,154 1,987 1,568 Other operating expenses Losses on sales of intangible assets and PP&E –74 –509 –158 Losses on sales of investments and operations 1) –130 –96 –50 Write-down of goodwill 2) –12,966 — — Other operating expenses 3) –116 –978 –1,207 Total other operating expenses –13,286 –1,583 –1,415 1) Includes divestments presented in Note C26, “Business combinations.” 2) For more information about the write-down of goodwill, see Note C10, “Intangible assets.” 3) Includes revaluation of cash flow hedges of SEK 0 billion (SEK –0.9 billion in 2016 and SEK –1.1 billion in 2015) partly offset by result from trading activities. |
C7 Financial income and expen47
C7 Financial income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Financial Income and Expenses | Financial income and expenses 2017 2016 2015 Financial Financial Financial Financial Financial Financial Contractual interest on financial assets –75 — 32 — 385 — Of which on financial assets at fair value through profit or loss –92 — –316 — –110 — Contractual interest on financial liabilities — –1,027 — –1,355 — –1,428 Net gains/losses on: Instruments at fair value through profit or loss 1) –231 543 –68 –729 190 –760 Of which included in fair value hedge relationships — 2 — 71 — 152 Available for sale 40 — — — — — Loans and receivables –102 — –79 — –53 — Liabilities at amortized cost — 72 — 218 — 213 Other financial income and expenses 7 –431 — –292 3 –483 Total –361 –843 –115 –2,158 525 –2,458 1) Excluding net loss from operating assets and liabilities, SEK 451 million (net loss of SEK 234 million in 2016 and net loss of SEK 165 million in 2015), reported as Cost of sales. |
C8 Taxes (Tables)
C8 Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Components of Income Taxes Recognized in Income Statement | Income taxes recognized in the income statement 2017 2016 2015 Current income taxes for the year –4,168 –3,654 –6,641 Current income taxes related to prior years 83 –489 –104 Deferred tax income/expense (+/–) 8,355 2,017 546 Share of taxes in joint ventures and associated companies –3 –5 — Tax expense/benefit 4,267 –2,131 –6,199 |
Reconciliation of Swedish Income Tax Rate with Effective Tax Rate | Reconciliation of Swedish income tax rate with effective tax rate 2017 2016 2015 Expected tax expense at Swedish tax rate 22.0% 8,652 –886 –4,372 Effect of foreign tax rates 205 –536 –1,101 Current income taxes related to prior years 83 –489 –104 Remeasurement of tax loss carry-forwards –150 143 –250 Remeasurement of deductible temporary differences 127 119 185 Tax effect of non-deductible –4,144 –1,357 –1,559 Tax effect of non-taxable 480 935 981 Tax effect of changes in tax rates –986 –60 21 Tax expense/benefit 4,267 –2,131 –6,199 Effective tax rate 10.8 % 52.9 % 31.2 % |
Tax Effects of Temporary Differences and Tax Loss Carry-forwards | Tax effects of temporary differences and tax loss carry-forwards Deferred Deferred Net balance 2017 Intangible assets and property, plant and equipment 894 2,374 Current assets 2,667 866 Post-employment benefits 4,886 704 Provisions 1,846 15 Other 3,556 275 Loss carry-forwards 10,712 Deferred tax assets/liabilities 24,561 4,234 20,327 Netting of assets/liabilities –3,333 –3,333 Deferred tax balances, net 21,228 901 20,327 2016 Intangible assets and property, plant and equipment 1,223 4,173 Current assets 2,352 501 Post-employment benefits 4,382 692 Provisions 1,631 13 Other 4,557 274 Loss carry-forwards 4,883 — Deferred tax assets/liabilities 19,028 5,653 13,375 Netting of assets/liabilities –3,506 –3,506 Deferred tax balances, net 15,522 2,147 13,375 |
Changes in Deferred Taxes, Net | Changes in deferred taxes, net 2017 2016 Opening balance, net 13,375 10,711 Recognized in net income (loss) 8,355 2,017 Recognized in other comprehensive income (loss) –563 521 Acquisitions/disposals of subsidiaries — –57 Reclassification to current tax –462 — Currency translation differences –378 183 Closing balance, net 20,327 13,375 |
Tax Loss Carry-forwards | Tax loss carry-forwards Year of expiration Tax loss carry-forwards Tax 2018 — — 2019 37 9 2020 74 15 2021 197 32 2022 870 218 2023 or later 46,182 10,438 Total 47,360 10,712 |
C9 Earnings per share (Tables)
C9 Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Earnings Per Share | Earnings per share 2017 2016 2015 Basic Net income (loss) attributable to stockholders of the Parent Company (SEK million) –35,206 1,716 13,549 Average number of shares outstanding, basic (millions) 3,277 3,263 3,249 Earnings (loss) per share, basic (SEK) –10.74 0.53 4.17 Diluted Net income (loss) attributable to stockholders of the Parent Company (SEK million) –35,206 1,716 13,549 Average number of shares outstanding, basic (millions) 3,277 3,263 3,249 Dilutive effect for stock purchase (millions) — 40 33 Average number of shares outstanding, diluted (millions) 3,277 3,303 3,282 Earnings (loss) per share, diluted (SEK) –10.74 0.52 4.13 |
C10 Intangible assets (Tables)
C10 Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Intangible Assets | Intangible assets 2017 Capitalized development expenses Goodwill IPR 1) other intangible assets For internal use To be Acquired Internal Total Total Total Cost Opening balance 18,246 2,213 1,847 22,306 43,405 57,340 Acquisitions/capitalization 1,340 — 104 1,444 — 336 Balances regarding acquired/divested businesses 2) — — — — –122 101 Sales/disposals — — –1,019 –1,019 — –152 Translation difference — — — — –2,484 –1,693 Closing balance 19,586 2,213 932 22,731 40,799 55,932 Accumulated amortization Opening balance –8,243 –2,158 –1,614 –12,015 — –44,262 Amortization –2,586 — –95 –2,681 — –1,667 Sales/disposals — — 1,019 1,019 — 152 Reclassification –101 — 101 — — — Translation difference — — — — — 1,343 Closing balance –10,930 –2,158 –589 –13,677 — –44,434 Accumulated impairment losses Opening balance –2,123 –55 –37 –2,215 –18 –5,331 Impairment losses –2,058 — –187 –2,245 –12,966 –2,019 Closing balance –4,181 –55 –224 –4,460 –12,984 –7,350 Net carrying value 4,475 — 119 4,593 27,815 4,148 1) Intellectual property rights. 2) For more information on acquired/divested businesses, see Note C26, “Business combinations.” Intangible assets 2016 Capitalized development expenses Goodwill IPR 1) and other intangible assets For internal use To be marketed Acquired costs Internal costs Total Total Total Cost Opening balance 15,307 2,213 1,697 19,217 41,105 55,895 Acquisitions/capitalization 4,333 — 150 4,483 — 15 Balances regarding acquired/divested businesses 2) — — — — 585 177 Sales/disposals –1,394 — — –1,394 — –870 Reclassifications — — — — –640 640 Translation difference — — — — 2,355 1,483 Closing balance 18,246 2,213 1,847 22,306 43,405 57,340 Accumulated amortization Opening balance –7,995 –2,158 –1,441 –11,594 — –41,248 Amortization –1,642 — –173 –1,815 — –2,650 Sales/disposals 1,394 — — 1,394 — 840 Translation difference — — — — — –1,204 Closing balance –8,243 –2,158 –1,614 –12,015 — –44,262 Accumulated impairment losses Opening balance –2,038 –55 –37 –2,130 –18 –5,331 Impairment losses –85 — — –85 — — Closing balance –2,123 –55 –37 –2,215 –18 –5,331 Net carrying value 7,880 — 196 8,076 43,387 7,747 1) Intellectual property rights. 2) For more information on acquired/divested businesses, see Note C26, “Business combinations.” |
Summary of Impairment Write-down by Segment | Impairment write-down by Segment 2017 SEK billion Networks Digital Services Other Total Goodwill — 6.9 6.1 1 ) 13.0 Intangible assets 0.1 0.9 1.0 2.0 Capitalized development expenses 0.3 0.9 1.0 2.2 Total write-down 0.4 8.7 8.1 17.2 1) Of which Media Solutions SEK 6.0 billion and Red Bee Media SEK 0.1 billion. |
C11 Property, plant and equip51
C11 Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment 2017 Real estate Machinery and other technical assets Other equipment, tools and installations Construction in progress and advance payments Total Cost Opening balance 7,132 4,286 33,134 2,648 47,200 Additions 150 183 1,317 2,227 3,877 Balances regarding acquired/divested businesses –9 –134 –12 — –155 Sales/disposals –1,323 –457 –5,387 –185 –7,352 Reclassifications 757 56 2,226 –3,039 — Translation difference –197 –115 –664 –43 –1,019 Closing balance 6,510 3,819 30,614 1,608 42,551 Accumulated depreciation Opening balance –3,629 –3,651 –23,061 — –30,341 Depreciations –458 –279 –3,366 — –4,103 Balances regarding divested businesses 9 85 11 — 105 Sales/disposals 349 442 4,263 — 5,054 Translation difference 99 93 491 — 683 Closing balance –3,630 –3,310 –21,662 — –28,602 Accumulated impairment losses Opening balance –43 –3 –79 — –125 Impairment losses –297 –42 –1,872 — –2,211 Sales/disposals 200 4 1,050 — 1,254 Translation difference — –1 –9 — –10 Closing balance –140 –42 –910 — –1,092 Net carrying value 2,740 467 8,042 1,608 12,857 Property, plant and equipment 2016 Real estate Machinery and other technical assets Other equipment, tools and installations Construction in progress and advance payments Total Cost Opening balance 6,475 4,560 28,753 4,750 44,538 Additions 177 148 1,519 4,285 6,129 Balances regarding acquired/divested businesses –1 –53 2 — –52 Sales/disposals –1,410 –596 –2,610 –269 –4,885 Reclassifications 1,633 110 4,570 –6,315 –2 Translation difference 258 117 900 197 1,472 Closing balance 7,132 4,286 33,134 2,648 47,200 Accumulated depreciation Opening balance –3,634 –3,779 –21,208 — –28,621 Depreciations –506 –330 –3,585 — –4,421 Balances regarding divested businesses 2 26 7 — 35 Sales/disposals 643 534 2,434 — 3,611 Reclassifications 4 1 –4 — 1 Translation difference –138 –103 –705 — –946 Closing balance –3,629 –3,651 –23,061 — –30,341 Accumulated impairment losses Opening balance — –10 –6 — –16 Impairment losses –43 –1 –112 — –156 Reversals of impairment losses — 8 — — 8 Sales/disposals — — 39 — 39 Translation difference — — — — — Closing balance –43 –3 –79 — –125 Net carrying value 3,460 632 9,994 2,648 16,734 |
C12 Financial assets, non-cur52
C12 Financial assets, non-current (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Equity in Joint Ventures and Associated Companies | Equity in joint ventures and associated companies 2017 2016 Opening balance 775 1,210 Share in earnings 24 31 Distribution of capital stock –95 — Taxes –3 –5 Dividends –77 –84 Divested business — –15 Translation difference — –362 Closing balance 1) 624 775 1) Goodwill, net, amounts to SEK 1 (1) million. |
Ericsson's Share of Assets, Liabilities and Income in Associated Company Rockstar Consortium | Ericsson’s share of assets, liabilities and income in associated company Rockstar Consortium 2017 2016 2015 Percentage in ownership interest 21.26 % 21.26 % 21.26 % Total assets 20 22 21 Total liabilities — — 5 Net assets (100%) 20 22 16 Company’s share of net assets (21.26%) 3 3 3 Net sales — — — Income after financial items — — –642 Net income and total comprehensive income (100%) — — –642 Company’s share of net income and other comprehensive income (21.26%) — — –137 |
Summary of Financial Assets, Non-current | Financial assets, non-current Other investments in shares and participations Customer finance, non-current Interest-bearing securities, non-current Derivatives, non-current Other financial assets, non-current 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Cost Opening balance 2,516 2,567 2,137 1,755 7,586 — — 452 4,648 5,365 Additions 146 133 1,788 2,704 54,687 7,593 86 — 503 785 Disposals/repayments/deductions –43 –267 –1,100 –2,333 –37,241 — — — –375 –187 Change in value in funded pension plans 1) — — — — — — — — 1,300 –1,622 Revaluation 99 2 — — 73 –7 — — 27 62 Reclassification — — –570 –12 — — — –452 — — Translation difference –50 81 –18 23 — — — — –169 245 Closing balance 2,668 2,516 2,237 2,137 25,105 7,586 86 — 5,934 4,648 Accumulated impairment losses/ allowances Opening balance –1,337 –1,292 –9 –16 — — — — –206 –183 Impairment losses/allowances –126 37 –56 –5 — — — — –1 –1 Disposals/repayments/deductions 25 –1 6 12 — — — — 77 –1 Translation difference 49 –81 — — — — — — 7 –21 Closing balance –1,389 –1,337 –59 –9 — — — — –123 –206 Net carrying value 1,279 1,179 2,178 2,128 25,105 7,586 86 — 5,811 4,442 1) This amount includes asset ceiling. For further information, see Note C17, “Post-employment benefits.” |
C13 Inventories (Tables)
C13 Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Inventories | Inventories 2017 2016 Raw materials, components, consumables and manufacturing work in progress 4,015 5,043 Finished products and goods for resale 8,864 12,183 Contract work in progress 12,081 13,081 Inventories, net 24,960 30,307 |
Movements in Obsolescence Allowances | Movements in obsolescence allowances 2017 2016 2015 Opening balance 2,412 2,555 2,326 Additions, net 1,319 725 1,480 Utilization –1,210 –981 –1,295 Translation difference –91 113 44 Balances regarding acquired/divested businesses –5 — — Closing balance 2,425 2,412 2,555 |
C14 Trade receivables and cus54
C14 Trade receivables and customer finance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Trade Receivables and Customer Finance | Trade receivables and customer finance 2017 2016 Trade receivables excluding associated companies and joint ventures 66,487 69,430 Allowances for impairment –3,335 –1,403 Trade receivables, net 63,152 68,027 Trade receivables related to associated companies and joint ventures 58 90 Trade receivables, total 63,210 68,117 Customer finance credits 4,223 5,003 Allowances for impairment –292 –250 Customer finance credits, net 3,931 4,753 Of which current 1,753 2,625 Credit commitments for customer finance 9,706 13,082 |
Summary of Movements in Allowances for Impairment | Movements in allowances for impairment Trade receivables Customer finance 2017 2016 2017 2016 Opening balance 1,403 1,202 250 286 Additions 3,544 356 85 78 Utilized –1,485 –156 –3 –108 Reversal of excess amounts –48 –28 –27 –8 Reclassification –66 — — — Translation difference –13 29 –13 2 Closing balance 3,335 1,403 292 250 |
Summary of Aging Analysis | Aging analysis as per December 31 Of which past Of which past due and Of which Of which the following time intervals impaired in the following time intervals Total neither impaired nor past due impaired, not past due less than 90 days 90 days or more less than 90 days 90 days or more 2017 Trade receivables, excluding associated companies and joint ventures 66,487 56,059 15 2,924 4,169 220 3,100 Allowances for impairment –3,335 — –15 — — –220 –3,100 Customer finance credits 4,223 1,841 2,029 4 99 29 221 Allowances for impairment –292 — –104 — — –20 –168 2016 Trade receivables, excluding associated companies and joint ventures 69,430 58,198 62 4,406 5,423 10 1,331 Allowances for impairment –1,403 — –62 — — –10 –1,331 Customer finance credits 5,003 3,250 1,480 10 3 24 236 Allowances for impairment –250 — –64 — — –6 –180 |
Summary of Total Outstanding Customer Finance Exposure Per Market Area | Total outstanding customer finance exposure per market area as of December 31 Percent 2017 2016 South East Asia, Oceania and India 24 17 North East Asia — — North America 7 7 Europe and Latin America 12 19 Middle East and Africa 56 56 Other 1 1 Total 100 100 |
Summary of Outstanding Customer Finance | Outstanding customer finance 2017 2016 Customer finance credits 4,223 5,003 Financial guarantees for third-parties 77 124 Accrued interest 14 16 Less third-party risk coverage –505 –805 Ericsson’s risk exposure, including financial guarantees 3,809 4,338 |
C15 Other current receivables (
C15 Other current receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Other Current Receivables | Other current receivables 2017 2016 Prepaid expenses 2,546 4,501 Accrued revenues 1,342 1,584 Advance payments to suppliers 338 1,384 Derivatives with a positive value 1) 1,207 1,108 Taxes 15,291 13,974 Other 1,576 1,880 Total 22,300 24,431 1) See also Note C20, “Financial risk management and financial instruments.” |
C16 Equity and other comprehe56
C16 Equity and other comprehensive income (loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Capital Stock | Capital stock at December 31, 2017, consisted of the following: Capital stock Parent Company Number of shares Capital stock Class A shares 261,755,983 1,309 Class B shares 3,072,395,752 15,363 Total 3,334,151,735 16,672 |
Summary of Reconciliation of Number of Shares | Reconciliation of number of shares Number of shares Capital stock Number of shares Jan 1, 2017 3,331,151,735 16,657 Number of shares Dec 31, 2017 3,334,151,735 16,672 |
C17 Post-employment benefits (T
C17 Post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Amount Recognized in the Consolidated Balance Sheet | Amount recognized in the Consolidated balance sheet Sweden US UK Other Total 2017 Defined benefit obligation (DBO) 41,166 21,005 13,246 12,228 87,645 Fair value of plan assets 21,938 20,402 14,599 8,000 64,939 Deficit/surplus (+/–) 19,228 603 –1,353 4,228 22,706 Plans with net surplus, excluding asset ceiling 1) — 83 1,685 535 2,303 Provision for post-employment benefits 2) 19,228 686 332 4,763 25,009 2016 Defined benefit obligation (DBO) 38,202 22,710 14,088 12,175 87,175 Fair value of plan assets 20,956 21,545 14,061 7,923 64,485 Deficit/surplus (+/–) 17,246 1,165 27 4,252 22,690 Plans with net surplus, excluding asset ceiling 1) — — 481 552 1,033 Provision for post-employment benefits 2) 17,246 1,165 508 4,804 23,723 1) Plans with a net surplus, i.e., where plan assets exceed DBO, are reported as Other financial assets, non-current: 2) Plans with net liabilities are reported in the balance sheet as Post-employment benefits, non-current. |
Summary of Pension Costs for Defined Contribution Plans and Defined Benefit Plans | Pension costs for defined contribution plans and defined benefit plans Sweden US UK Other Total 2017 Pension cost for defined contribution plans 1,096 473 173 1,228 2,970 Pension cost for defined benefit plans 1,824 168 38 592 2,622 Total 2,920 641 211 1,820 5,592 Total pension cost expressed as a percentage of wages and salaries 9.5 % 2016 Pension cost for defined contribution plans 1,061 687 185 1,287 3,220 Pension cost for defined benefit plans 1,314 167 38 595 2,114 Total 2,375 854 223 1,882 5,334 Total pension cost expressed as a percentage of wages and salaries 8.9 % 2015 Pension cost for defined contribution plans 1,136 729 136 1,239 3,240 Pension cost for defined benefit plans 1,806 81 57 609 2,553 Total 2,942 810 193 1,848 5,793 Total pension cost expressed as a percentage of wages and salaries 9.5 % |
Summary of Change in the Net Defined Benefit Obligation | Change in the net defined benefit obligation Present 2) Fair value Total Present 2 ) Fair value Total Opening balance 87,175 –64,485 22,690 78,141 –58,178 19,963 Reclassification — — — 104 –104 — Included in the income statement Current service cost 1,793 — 1,793 1,853 — 1,853 Past service cost and gains and losses on settlements 296 — 296 –182 — –182 Interest cost/income (+/–) 2,198 –1,892 306 2,451 –2,176 275 Taxes and administrative expenses 143 45 188 53 49 102 Other –13 2 –11 –16 2 –14 4,417 –1,845 2,572 3 ) 4,159 –2,125 2,034 3 ) Remeasurements Return on plan assets excluding amounts in interest expense/income — –2,438 –2,438 — –4,280 –4,280 Actuarial gains/losses (–/+) arising from changes in demographic assumptions –396 — –396 –405 — –405 Actuarial gains/losses (–/+) arising from changes in financial assumptions 2,110 — 2,110 8,255 — 8,255 Experience-based gains/losses (–/+) –219 — –219 –1,550 — –1,550 1,495 –2,438 –943 6,300 –4,280 2,020 Other changes Translation difference –2,275 2,262 –12 1,002 –834 168 Contributions and payments from: Employers 1) –880 –583 –1,463 –902 –562 –1,464 Plan participants 27 –23 4 28 –22 6 Payments from plans: Benefit payments –2,173 2,173 — –1,568 1,568 — Settlements –141 — –141 — — — Business combinations and divestments — — — –89 52 –37 Closing balance 87,645 –64,939 22,706 87,175 –64,485 22,690 1) The expected contribution to the plans is SEK 1,364 million during 2018. 2) The weighted average duration of DBO is 20.1 years. 3) Excluding the impact of the asset ceiling of SEK 50 million in 2017 and SEK 80 million in 2016. |
Summary of Present Value of the Defined Benefit Obligation | Present value of the defined benefit obligation Sweden US UK Other Total 2017 DBO, closing balance 41,166 21,005 13,246 12,228 87,645 Of which partially or fully funded 40,665 20,319 13,246 9,465 83,695 Of which unfunded 501 686 — 2,763 3,950 2016 DBO, closing balance 38,202 22,710 14,088 12,175 87,175 Of which partially or fully funded 37,679 21,956 14,088 9,361 83,084 Of which unfunded 523 754 — 2,814 4,091 |
Summary of Asset Allocation by Asset Type and Geography | Asset allocation by asset type and geography Sweden US UK Other Total Of which 2017 Cash and cash equivalents 3,124 382 834 88 4,428 0 % Equity securities 4,079 795 3,116 2,432 10,422 16 % Debt securities 8,663 17,650 9,331 3,494 39,138 68 % Real estate 4,269 — 244 212 4,725 100 % Investment funds 1,803 1,478 160 208 3,649 66 % Assets held by insurance company — — — 1,200 1,200 100 % Other — 97 914 366 1,377 41 % Total 21,938 20,402 14,599 8,000 64,939 Of which real estate occupied by the Company — — — — — Of which securities issued by the Company — — — — — 2016 Cash and cash equivalents 1,819 414 420 373 3,026 14 % Equity securities 3,983 692 2,526 1,669 8,870 19 % Debt securities 8,791 18,286 10,010 3,888 40,975 70 % Real estate 4,093 — 132 198 4,423 100 % Investment funds 2,270 1,505 270 206 4,251 65 % Assets held by insurance company — — — 1,125 1,125 100 % Other — 648 703 464 1,815 69 % Total 20,956 21,545 14,061 7,923 64,485 Of which real estate occupied by the Company — — — — — Of which securities issued by the Company — — — — — |
Summary of Financial and Demographic Actuarial Assumptions | Financial and demographic actuarial assumptions 1) 2017 2016 Financial assumptions Discount rate, Sweden 1.6 % 1.8 % Discount rate, US 3.7 % 4.1 % Discount rate, UK 2.6 % 2.7 % Discount rate, weighted average of Total 2.5 % 2.8 % Demographic assumptions Life expectancy after age 65 in years, weighted average 23 23 1) Weighted average for the Group for disclosure purposes only. Country-specific assumptions were used for each actuarial calculation. |
Summary of Total Remeasurements in Other Comprehensive Income (Loss) Related to Post-Employment Benefits | Total remeasurements in Other comprehensive income (loss) related to post-employment benefits 2017 2016 Actuarial gains and losses (+/–) 1,210 –1,955 The effect of asset ceiling 27 254 Swedish special payroll taxes 1) –267 –65 Total 970 –1,766 1) Swedish payroll taxes are included in recognized gain/loss during the year in OCI. |
Summary of Sensitivity Analysis of Significant Actuarial Assumptions | Sensitivity analysis of significant actuarial assumptions SEK billion 2017 2016 Impact on the DBO of an increase in the discount rate Discount rate, Sweden +0.5% –4.5 –4.3 Discount rate, US +0.5% –1.1 –1.3 Discount rate, UK +0.5% –1.5 –1.7 Discount rate, weighted average of Total +0.5% –8.1 –8.3 Impact on the DBO of an decrease in the discount rate Discount rate, Sweden –0.5% +5.2 +5.0 Discount rate, US –0.5% +1.2 +1.3 Discount rate, UK –0.5% +1.8 +1.9 Discount rate, weighted average of Total –0.5% +9.3 +9.4 |
C18 Provisions (Tables)
C18 Provisions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Provisions | Provisions Restructuring Customer Suppliers Warranty Other Total 2017 Opening balance 4,163 74 134 248 1,738 6,357 Additions 5,448 4,105 1,885 242 799 12,479 Reversal of excess amounts –207 — –90 –2 –63 –362 Negative effect on Income statement 12,117 Utilization/Cash out –5,327 –1,532 –262 –267 –833 –8,221 Reclassifications 1 –10 –50 5 –59 –113 Translation difference –35 5 –4 –1 –159 –194 Closing balance 4,043 2,642 1,613 225 1,423 9,946 2016 Opening balance 1,466 92 182 528 1,570 3,838 Additions 5,271 51 82 267 675 6,346 Reversal of excess amounts –130 –6 –69 –207 –277 –689 Negative effect on Income statement 5,657 Utilization/Cash out –2,440 –64 –64 –365 –220 –3,153 Reclassifications 1 –3 — 9 –15 –8 Translation difference –5 4 3 16 5 23 Closing balance 4,163 74 134 248 1,738 6,357 |
C19 Interest-bearing liabilit59
C19 Interest-bearing liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Interest-Bearing Liabilities | Interest-bearing liabilities 2017 2016 Borrowings, current Current part of non-current 1) 89 4,954 Other borrowings, current 2,456 3,079 Total borrowings, current 2,545 8,033 Borrowings, non-current Notes and bond loans 20,560 10,556 Other borrowings, non-current 9,940 8,097 Total borrowings, non-current 30,500 18,653 Total interest-bearing liabilities 33,045 26,686 1) Including notes and bond loans of SEK 0 (4,900) million. |
Summary of Notes, Bonds, Bilateral Loans and Committed Credit | Notes, bonds, bilateral loans and committed credit Unrealized hedge Nominal Book value Market value gain/loss (included Issued-maturing amount Coupon Currency (SEK million) (SEK million) Maturity date in book value) Notes and bond loans 2010–2020 1) 170 USD 1,394 1,488 December 23, 2020 2012–2022 1,000 4.125 % USD 8,180 2) 8,223 May 15, 2022 9 2017–2021 500 0.875 % EUR 4,897 2) 4,846 March 1, 2021 7 2017–2024 500 1.875 % EUR 4,862 2) 4,824 March 1, 2024 –7 2017–2025 1) 150 USD 1,227 1,432 December 22, 2025 Total notes and bond loans 20,560 20,813 9 Bilateral loans 2012–2021 3) 98 USD 805 830 September 30, 2021 2013–2020 4) 684 USD 5,609 5,724 November 6, 2020 2013–2023 3) 220 USD 1,797 1,972 June 15, 2023 Total bilateral loans 8,211 8,526 Committed credit Long-term committed credit facility 5) 2,000 USD — — June 5, 2022 Total committed credit — — 1) Private Placement, Swedish Export Credit Corporation (SEK). 2) Interest rate swaps are designated as fair value hedges. 3) Nordic Investment Bank (NIB), R&D project financing. 4) European Investment Bank (EIB), R&D project financing. 5) Multi-currency revolving credit facility. Unutilized. |
C20 Financial risk management60
C20 Financial risk management and financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Capital Objectives-related Information | Capital objectives-related information, SEK billion 2017 2016 Capital 100 140 Equity ratio 38 % 50 % Cash conversion –58 % 1) 175 % Positive net cash 34.7 31.2 Post-employment benefits 25.0 23.7 Credit rating Moody’s Ba2, negative Baa3, negative Standard & Poor’s BB+, stable BBB, negative 1) Impacted by a negative result. |
Summary of Net Exposure for Largest Currencies Impact on Sales | The table below presents the net exposure for the largest currencies impact on sales and also net transaction exposure of these currencies on profitability. Currency exposure, SEK billion Exposure currency Sales Sales Sales net Incurred cost 1) Net USD 52.4 37.2 89.6 –15.3 21.9 EUR 24.6 13.2 37.8 –8.4 4.8 CNY 13.1 –0.2 12.9 –6.2 –6.4 INR 9.4 0.0 9.4 –1.6 –1.6 JPY 7.1 0.0 7.1 4.6 4.6 AUD 7.1 –0.3 6.8 3.3 3.0 BRL 5.7 0.0 5.7 0.7 0.7 SAR 5.1 0.1 5.2 2.3 2.4 GBP 5.6 –0.9 4.7 0.8 –0.1 1) Transactions in foreign currency – internal sales, internal purchases, external purchases. |
Summary of Sensitivity to Interest Rate Increase of One Basis Point | Sensitivity to interest rate increase of 1 basis point, SEK million <3M 3–12M 1–3Y 3–5Y >5Y Total Interest-bearing assets 0 0 –3 –4 –1 –8 Interest-bearing liabilities 0 0 0 6 3 9 Derivatives 0 1 0 –4 –1 –4 Total 0 1 –3 –2 1 –3 |
Disclosure of Detailed Information about Currency Derivatives | Outstanding derivatives Outstanding derivatives 1) 2017 2016 Fair value Asset Liability Asset Liability Currency derivatives Maturity within 3 months 130 542 351 193 Maturity between 3 and 12 months 215 147 262 137 Maturity between 1 and 3 years 25 — — — Maturity between 3 and 5 years 754 — — — Total 1,125 689 613 330 Interest rate derivatives Maturity within 3 months 10 35 — — Maturity between 3 and 12 months 1 — 239 82 Maturity between 1 and 3 years 34 105 191 205 Maturity between 3 and 5 years 83 54 — 6 Maturity of more than 5 years 39 43 65 116 Total 168 237 495 2) 409 Of which designated in fair value hedge relations 44 — 120 — 1) Some of the derivatives hedging non-current non-current 2) Of which SEK 86 (0) million is reported as non-current |
Summary of Cash, Cash Equivalents and Interest-bearing Securities | Cash, cash equivalents and interest-bearing securities Remaining time to maturity SEK billion < 3 3–12 1–5 >5 Total Banks 26.4 0.2 0.2 0.1 26.9 Type of issuer/counterpart Governments 9.5 1.0 11.5 0.8 22.8 Corporates 0.3 0.0 0.0 0.0 0.3 Mortgage institutes 0.2 0.0 16.7 0.8 17.7 2017 36.4 1.2 28.4 1.7 67.7 2016 37.0 1.3 19.3 0.3 57.9 |
Summary of Funding Programs | Funding programs 1) Amount Utilized Unutilized Euro Medium-Term Note program (USD million) 5,000 1,519 3,481 SEC Registered program (USD million) 2 ) 1,000 — 1) There are no financial covenants related to these programs. 2) Program amount indeterminate. |
Summary of Financial Instruments, Book Value | Financial instruments, book value SEK billion Customer Trade Interest- Cash lents Borrowings Trade Other Other Other 2017 2016 Note C14 C14 C12 C25 C19 C22 C12 C15 C21 Assets at fair value through profit or loss 6.1 14.3 0.9 1.2 –0.9 21.6 23.5 Loans and receivables 3.9 63.2 0.3 3.2 5.0 75.6 78.9 Available-for-sale 25.4 1.3 26.7 8.8 Financial liabilities at amortized cost –33.0 –26.3 –59.3 –52.0 Total 3.9 63.2 31.8 17.5 –33.0 –26.3 7.2 1.2 –0.9 64.6 59.2 |
C21 Other current liabilities (
C21 Other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Other Current Liabilities | Other current liabilities 2017 2016 Advances from customers 6,955 5,391 Accrued interest 383 367 Accrued expenses 29,196 30,716 Of which employee-related 8,935 9,414 Of which supplier-related 10,491 13,003 Of which other 1) 9,770 8,299 Deferred revenues 20,110 13,990 Derivatives with a negative value 2) 926 739 Other 3) 4,800 4,800 Total 62,370 56,003 1) Major balance relates to accrued expenses for customer projects. 2) See Note C20, “Financial risk management and financial instruments.” 3) Includes items such as VAT and withholding tax payables and other payroll deductions, and liabilities for goods received where the related invoice has not yet been received. |
C22 Trade payables (Tables)
C22 Trade payables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Trade Payables | Trade payables 2017 2016 Trade payables to associated companies and joint ventures 286 296 Trade payables, excluding associated companies and joint ventures 26,035 25,022 Total 26,321 25,318 |
C23 Assets pledged as collate63
C23 Assets pledged as collateral (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Schedule of Detailed Information of Assets Pledged as Collateral | Assets pledged as collateral 2017 2016 Chattel mortgages 1) 4,740 2,240 Bank deposits 475 344 Total 5,215 2,584 1) See also Note C17, “Post-Employment benefits.” |
C24 Contingent liabilities (Tab
C24 Contingent liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Contingent Liabilities | Contingent liabilities 2017 2016 Contingent liabilities 1,561 1,186 Total 1,561 1,186 |
C25 Statement of cash flows (Ta
C25 Statement of cash flows (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Adjustments to Reconcile Net Income to Cash | Adjustments to reconcile net income to cash 2017 2016 2015 Property, plant and equipment Depreciation 4,103 4,421 4,705 Impairment losses/reversals of impairments 2,211 148 –16 Total 6,314 4,569 4,689 Intangible assets Amortizations Capitalized development expenses 2,681 1,815 1,379 Intellectual Property Rights, brands and other intangible assets 1,667 2,650 4,139 Total amortizations 4,348 4,465 5,518 Impairments Capitalized development expenses 2,245 85 20 Intellectual Property Rights, brands and other intangible assets 2,019 — — Goodwill 12,966 — — Total impairments 17,230 85 20 Total 21,578 4,550 5,538 Total depreciation, amortization and impairment losses on property, plant and equipment and intangible assets 27,892 9,119 10,227 Taxes –9,805 –6,200 –2,835 Dividends from joint ventures/associated companies 1) 77 84 92 Undistributed earnings in joint ventures/ associated companies 1) –21 –26 38 Gains/losses on sales of investments and operations, intangible assets and PP&E, net 2) –167 –37 –156 Other non-cash 3) 607 3,172 3,245 Total adjustments to reconcile net income to cash 18,583 6,112 10,611 1) See Note C12, “Financial assets, non-current.” 2) See Note C6, “Other operating income and expense.” 3) Refers mainly to unrealized foreign exchange, gains/losses on financial instruments. |
Summary of Acquisitions/Divestments of Subsidiaries and Other Operations | Acquisitions/divestments of subsidiaries and other operations Acquisitions Divestments 2017 Cash flow from business combinations 1) –62 459 Acquisitions/divestments of other investments –227 106 Total –289 565 2016 Cash flow from business combinations 1) –781 25 Acquisitions/divestments of other investments –203 337 Total –984 362 2015 Cash flow from business combinations 1) –1,867 – Acquisitions/divestments of other investments –334 1 Total –2,201 1 1) See also Note C26, “Business combinations.” |
Reconciliation of Liabilities Arising from Financing Activities | Reconciliation of liabilities arising from financing activities 2017 Opening balance 26,686 Cash flows Proceeds from issuance of borrowings 13,416 Repayment of borrowings –4,830 Non-cash changes Effect of foreign exchange movement –2,155 Changes in fair value –72 Closing balance 1) 33,045 1) Of which Borrowing, current SEK 2,545 million and Borrowings, non-current SEK 30,500 million. For more information, see Note C19, ”Interest-bearing liabilities”. |
C26 Business combinations (Tabl
C26 Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Net Assets Acquired and Total Consideration Transferred Business Combinations | Acquisitions 2015–2017 2017 2016 2015 Total consideration, including cash 62 920 2,119 Acquisition-related costs 1) 49 4 19 Net assets acquired Cash and cash equivalents — 139 271 Property, plant and equipment 12 19 45 Intangible assets 101 817 445 Other assets 1 290 572 Other liabilities 25 –290 –379 Total identifiable net assets 139 975 954 Goodwill 2) –77 –55 1,165 Total 62 920 2,119 1) Acquisition-related costs are included in Selling and administrative expenses in the consolidated income statement. 2) Of which SEK 0 (585) million was acquired goodwill and SEK –77 (–640) million refers to a reclassi-fication when the preliminary purchase price allocations were finalized between the years. |
Summary of Divestments transactions | Divestments 2015–2017 2017 2016 2015 Proceeds 459 25 — Net assets disposed of Property, plant and equipment 62 36 — Investments in joint ventures and associated companies — 15 — Goodwill 45 Other assets 219 5 52 Other liabilities –180 –114 –3 146 –58 49 Net gains/losses from divestments 313 83 –49 Less Cash and cash equivalents — — — Cash flow effect 459 25 — |
Summary of Business Combinations Transactions | Acquisitions 2015–2017 Company Description Transaction date Nodeprime A US based software development company with an infrastructure management platform. Apr 2016 Ericpol A software development company in Poland within telecommunications. Apr 2016 FYI Television A US based premier entertainment metadata and rich media content supplier. Jan 2016 Envivio A US-based software-defined Oct 2015 ICON A consulting and systems integration business with approximately 250 employees and consultants. Aug 2015 Sunrise technology A business delivering complex IT solutions. Jul 2015 Timelessmind A Canada-based consulting and systems integration business specializing in operations and business support (OSS/BSS). Apr 2015 |
Summary of Business Divestments Transactions | Divestments 2015–2017 Company Description Transaction date Power Modules A divestment of the power modules business. Sep 2017 Birla Ericsson Optical Ltd A divestment of the shares in the associated company. Jul 2016 |
C27 Leasing (Tables)
C27 Leasing (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Future Minimum Lease Payment Obligations | Future minimum lease payment obligations Operating leases 2018 3,491 2019 2,927 2020 2,506 2021 1,966 2022 1,442 2023 and later 4,787 Total 17,119 |
Summary of Future Minimum Payment Receivables | Future minimum payment receivables Operating leases 2018 83 2019 87 2020 85 2021 87 2022 87 2023 and later 184 Total 613 |
C28 Information regarding mem68
C28 Information regarding members of the Board of Directors, the Group management and employees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Remuneration to Members of the Board of Directors | Remuneration to members of the Board of Directors SEK Board fees Number of synthetic shares/ portion of Value at grant date of synthetic shares allocated in 2017 A Number of previously allocated shares Net change in value of synthetic shares 1) B Committee Total fees cash 2) C Total remuneration 2017 (A+B+C) Board member Leif Johansson 4,075,000 0/0 % — — — 400,000 4,475,000 4,475,000 Helena Stjernholm 990,000 8,661/50 % 494,976 11,093 –13,606 1) 175,000 670,000 1,151,370 Jacob Wallenberg 990,000 12,992/75 % 742,493 18,202 128,459 1) 175,000 422,500 5) 1,293,452 Jon Fredrik Baksaas 990,000 12,992/75 % 742,493 — –42,874 175,000 422,500 1,122,119 Jan Carlson 990,000 12,992/75 % 742,493 — –42,874 175,000 422,500 1,122,119 Nora Denzel 990,000 4,330/25 % 247,460 5,489 23,549 1) 425,000 1,167,500 1,438,509 Börje Ekholm — — — 33,203 339,168 1) — — 339,168 Eric A. Elzvik 990,000 4,330/25 % 247,460 — –14,289 350,000 1,092,500 1,325,671 Kristin Skogen Lund 990,000 4,330/25 % 247,460 11,990 60,646 1) 250,000 992,500 1,300,606 Kristin S. Rinne 990,000 8,661/50 % 494,976 7,395 –18,598 1) 200,000 695,000 1,171,378 Sukhinder Singh Cassidy 990,000 4,330/25 % 247,460 6,210 3,393 1) 175,000 917,500 1,168,353 Employee Representatives Pehr Claesson 3) 15,000 — — — — — 15,000 15,000 Mikael Lännqvist 3) 9,000 — — — — — 9,000 9,000 Kjell-Åke Soting 27,000 — — — — — 27,000 27,000 Roger Svensson 37,500 — — — — — 37,500 37,500 Karin Åberg 33,000 — — — — — 33,000 33,000 Zlatko Hadzic (deputy) 3) 6,000 — — — — — 6,000 6,000 Torbjörn Nyman (deputy) 4) 13,500 — — — — — 13,500 13,500 Anders Ripa (deputy) 4) 13,500 — — — — — 13,500 13,500 Loredana Roslund (deputy) 4) 13,500 — — — — — 13,500 13,500 Total 13,153,000 73,618 4,207,271 93,582 422,974 2,500,000 11,445,500 16,075,745 6) Total 13,153,000 73,618 4,207,271 93,582 632,329 7 ) 2,500,000 11,445,500 16,285,100 6) 1) The difference in value as of the time for payment, compared to December 31, 2016, for synthetic shares allocated in 2012 (for which payment was made in 2017). The difference in value as of December 31, 2017, compared to December 31, 2016, for synthetic shares allocated in 2013, 2014, 2015 and 2016. Calculated on a share price of SEK 53.85. The difference in value as of December 31, 2017, compared to grant date for synthetic shares allocated in 2017. The value of synthetic shares allocated in 2013, 2014, 2015 and 2016 includes respectively SEK 3.00, SEK 3.40, SEK 3.70 and SEK 1.00 per share in compensation for dividends resolved by the Annual General Meetings 2014, 2015, 2016 and 2017 and the value of the synthetic shares allocated in 2012 includes dividend compensation for dividends resolved in 2013, 2014, 2015 and 2016. 2) Committee fee and cash portion of the Board fee. 3) Left the Board in connection with the Annual General Meeting of shareholders 2017. 4) Joined the Board in connection with the Annual General Meeting of shareholders 2017. 5) In addition, an amount corresponding to statutory social charges in respect of the part of the fee that has been invoiced from a business was paid, amounting to SEK 174,460. 6) Excluding social security charges and amounts invoiced through a business corresponding to such social security charges in to the amount of SEK 2,964,677. 7) Including synthetic shares previously allocated to the former Directors Roxanne S. Austin and Alexander Izosimov. For these synthetic shares, the net change in value corresponds to the difference in value as of the time for payment compared to December 31, 2016. |
Summary of Remuneration Costs for the President and CEO and Other Members of Executive Leadership Team (ELT) | Remuneration costs for the President and CEO and other members of Executive Team (ET) SEK President and CEO 1) President and CEO 2) Total: President and CEO 2017 President and CEO 2016 Other members of ET 2017 Other members of ELT 2016 Total 2017 Total 2016 Salary 3) 13,980,639 398,531 14,379,170 45,882,357 162,159,462 119,501,092 176,538,632 165,383,449 Annual variable remuneration provision earned for the year — — — — 7,331,278 6,230,285 7,331,278 6,230,285 Long-term variable compensation provision 6,119,323 — 6,119,323 8,727,083 9,840,643 9,278,252 15,959,966 18,005,336 Pension costs 7,365,132 4) 162,941 7,528,073 11,954,758 31,592,635 29,387,498 39,120,708 41,342,256 Other benefits 315,263 2,923 318,187 69,992 17,311,905 12,604,635 16,630,091 12,674,627 Social charges and taxes 8,728,588 165,666 8,894,255 20,241,066 52,086,808 29,147,247 60,981,063 49,388,312 Total 36,508,946 730,061 37,239,007 86,875,256 280,322,732 206,149,008 317,561,739 293,024,265 1) Börje Ekholm served as President and CEO from January 16, 2017. Remuneration costs shown for Börje Ekholm includes the period from January 16, 2017, to December 31, 2017. 2) Jan Frykhammar served as President and CEO from January 1, 2017, to January 15, 2017. Remuneration costs shown for Jan Frykhammar includes the period from January 1, 2017, to January 15, 2017 (costs for the rest of the year is included in “Other members of ET 2017”). 3) Includes severance pay and compensation for unused vacations. 4) Cash payment in lieu of defined contribution payment, made in a cost neutral way for Ericsson. |
Summary of Maximum Outstanding Matching Rights | Maximum outstanding matching rights As of December 31, 2017 Number of Class B shares The President and CEO Other members of the ET Stock Purchase Plans 2014–2016 Executive Performance Stock Plans 2014–2016 — 183,054 |
Summary of Performance Targets | The details on how the TSR development will be calculated and measured are explained in minutes from the AGM 2017 under Item 17, and summarized below: LTV 2017 and EPP 2017 Performance Targets Year Target Criteria Weight Vesting 2017 Absolute TSR Range: 6%–14% 50 % 0%–200% (linear pro-rata 2017 Relative TSR Ranking of Ericsson: 12–5 50 % 0%–200% (linear pro-rata |
Summary of Compensation Cost | The cost of the cash based plans (the Executive Performance Plan 2017 and the 2017 Key Contributor Plan) in 2017 is shown in the table below: Compensation cost under LTV cash based plans (SEK million) Number of Compensation cost year 2017 1) Executive Performance Plan 2.3 31.4 2) Key Contributor Plan 11.8 138.6 3) Total compensation cost 14.1 170.0 1) 7.5 months between May 18 and December 31, 2017. 2) Fair value at grant date, SEK 65.68. 3) Fair value based on share price as of December 18, 2017, SEK 56.55. |
Summary of Stock Purchase Plans | The table below shows the contribution periods and participation details for ongoing plans as of December 31, 2017. Stock Purchase Plans Plan Contribution period Number of at launch Take-up eligible employees Stock Purchase plan 2014 August 2014–July 2015 32,000 30 % Stock Purchase plan 2015 August 2015–July 2016 33,800 31 % Stock Purchase plan 2016 August 2016–July 2017 31,500 29 % |
Summary of Executive Performance Stock Plan Targets | Executive Performance Stock Plan targets Base year Year 1 Year 2 Year 3 2016 Growth (Net sales growth) 246.9 Compound annual Margin (Operating income growth) 1) 24.8 Compound annual Cash flow (Cash conversion) — ³ 70 % ³ 70 % ³ 70 % 2015 Growth (Net sales growth) 228.0 Compound annual Margin (Operating income growth) 1) 16.8 Compound annual Cash flow (Cash conversion) — ³ 70 % ³ 70 % ³ 70 % 1) Excluding extraordinary restructuring charges. |
Summary of Shares for All Plans | Shares for LTV 2013–2016 Plan (million shares) Stock Purchase Plan, Key Contributor Retention Plan and Executive Performance Stock Plans Total 2016 2015 2014 2013 Originally designated A 21.6 23.5 22.8 26.6 94.5 Outstanding beginning of 2017 B 7.5 18.7 11.8 7.0 45.0 Awarded during 2017 C 17.1 — — — 17.1 Exercised/matched during 2017 D 1.4 1.6 3.2 6.8 13.0 Forfeited/expired during 2017 E 1.6 1.7 1.9 0.2 5.4 Outstanding end of 2017 1) F=B+C–D–E 21.6 15.4 6.7 — 43.7 Compensation costs charged during 2017 (SEK million) 3) G 274.5 2) 315.4 2) 234.1 2) 51.5 2) 875.5 1) Shares under the Executive Performance Stock Plans were based on the fact that the 2013 plan came out at 39.7%, in casu 60.3% lapsed and that the 2014 plan vested for 33% and lapsed for 67%. For the other ongoing plans, cost is estimated. 2) Fair value is calculated as the share price on the investment date, reduced by the net present value of the dividend expectations during the three-year vesting period. Net present value calculations are based on data from external party. For shares under the Executive Performance Stock Plans, the company makes a forecast for the fulfillment of the financial targets for all ongoing plans except for 2013 and 2014 plans as disclosed under 1) when calculating the compensation cost. Fair value of the Class B share at each investment date during 2017 was: February 15 SEK 46.77, May 15 SEK 54.46 and August 15 SEK 46.19. 3) Total compensation costs charged during 2016: SEK 957 million, 2015: SEK 865 million. |
Summary of Average Number of employees | Average number of employees by gender and market area 2017 2016 Women Men Total Women Men Total South East Asia, Oceania and India 5,212 19,773 24,985 6,106 20,499 26,605 North East Asia 4,189 8,657 12,846 4,297 9,186 13,483 North America 2,337 8,595 10,932 2,862 10,667 13,529 Europe and Latin America 1) 2) 13,135 40,647 53,782 12,928 44,558 57,486 Middle East and Africa 920 3,904 4,824 743 4,570 5,313 Total 25,793 81,576 107,369 26,936 89,480 116,416 1) 3,299 11,013 14,312 3,650 12,359 16,009 2) 10,534 31,130 41,664 10,056 33,852 43,907 |
Summary of Number of Employees by Region | Number of employees by market area at year-end 2017 2016 South East Asia, Oceania and India 24,495 26,570 North East Asia 12,456 13,042 North America 10,009 11,547 Europe and Latin America 1) 2) 49,231 54,873 Middle East and Africa 4,544 5,432 Total 100,735 111,464 1) 13,864 15,303 2) 39,508 42,625 |
Summary of Number of Employees by Gender and Age | Number of employees by gender and age at year-end Women Men Percent Under 25 years old 1,611 2,283 4 % 25–35 years old 9,776 27,458 37 % 36–45 years old 6,452 25,301 31 % 46–55 years old 4,205 16,741 21 % Over 55 years old 1,490 5,418 7 % Percent of total 23 % 77 % 100 % |
Summary of Employee Movements | Employee movements 2017 2016 Headcount at year-end 100,735 111,464 Employees who have left the Company 21,791 19,865 Employees who have joined the Company 11,062 15,048 Temporary employees 676 1,148 |
Summary of Wages and Salaries and Social Security Expenses | Employee wages and salaries Wages and salaries and social security expenses (SEK million) 2017 2016 Wages and salaries 58,966 60,064 Social security expenses 17,536 17,710 Of which pension costs 5,592 5,254 |
Summary of Remuneration to Board Members and Presidents in Subsidiaries | Remuneration to Board members and Presidents in subsidiaries (SEK million) 2017 2016 Salary and other remuneration 347 462 Of which annual variable remuneration 79 106 Pension costs 1) 32 38 1) Pension costs are over and above any social secutity charges and taxes. |
Summary of Board Members, Presidents and Group Management by Gender | Board members, Presidents and Group management by gender at year end 2017 2016 Women Men Women Men Parent Company Board members and President 43 % 57 % 46 % 54 % Group Management 36 % 64 % 35 % 65 % Subsidiaries Board members and Presidents 19 % 81 % 19 % 81 % |
C30 Fees to auditors (Tables)
C30 Fees to auditors (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Fees to Auditors | Fees to auditors PwC Others Total 2017 Audit fees 89 2 91 Audit-related fees 11 — 11 Tax fees 13 4 17 Other fees 9 7 16 Total 122 13 135 2016 Audit fees 90 3 93 Audit-related fees 10 — 10 Tax fees 10 8 18 Other fees 16 11 27 Total 126 22 148 2015 Audit fees 91 2 93 Audit-related fees 11 — 11 Tax fees 19 13 32 Other fees 8 — 8 Total 129 15 144 |
C31 Contractual obligations (Ta
C31 Contractual obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Contractual Obligations | Contractual obligations 2017 Payment due by period SEK billion < 1 year 1–3 years 3–5 years > 5 years Total Current and Non-current 1) 2) 2.8 8.9 14.3 7.9 33.9 Operating leases 3) 3.5 5.4 3.4 4.8 17.1 Other non-current 0.4 0.7 — 1.7 2.8 Purchase obligations 4) 6.2 0.9 0.7 — 7.8 Trade payables 26.3 — — — 26.3 Commitments for customer finance 5) 9.7 — — — 9.7 Total 48.9 15.9 18.4 14.4 97.6 1) Including interest payments. 2) See also Note C19, “Interest-bearing liabilities.” 3) See also Note C27, “Leasing.” 4) The amounts of purchase obligations are gross, before deduction of any related provisions. 5) See also Note C14, “Trade receivables and customer finance.” |
Significant Accounting Policies
Significant Accounting Policies - Additional Information (Detail) - SEK (kr) kr in Millions | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Summary Of Significant Accounting Policies [Line items] | ||||
Increase in loss allowance for trade receivables | kr 1,380 | kr 5,933 | kr 7,000 | |
Transition to IFRS 9 [member] | ||||
Summary Of Significant Accounting Policies [Line items] | ||||
Net reduction to equity | kr 1,400 | |||
Increase in loss allowance for trade receivables | 1,200 | |||
Increase in carrying value of borrowings | 600 | |||
Major ordinary share transactions [member] | ||||
Summary Of Significant Accounting Policies [Line items] | ||||
Net reduction to equity | 2,600 | |||
Transition to IFRS 15 [member] | ||||
Summary Of Significant Accounting Policies [Line items] | ||||
Contract asset | 13,100 | |||
Contract liability | kr 22,100 | |||
Bottom of range [member] | ||||
Summary Of Significant Accounting Policies [Line items] | ||||
Potential voting rights | 20.00% | |||
Estimated useful lives in general for real estate | 25 years | |||
Estimated useful lives for machinery and equipment | 3 years | |||
Top of range [member] | ||||
Summary Of Significant Accounting Policies [Line items] | ||||
Potential voting rights | 50.00% | |||
Estimated useful lives in general for real estate | 50 years | |||
Estimated useful lives for machinery and equipment | 10 years |
Significant Accounting Polici72
Significant Accounting Policies - Summary of Impact on Implementation of IFRS 9 and IFRS 15 on Equity and Other Balance Sheet Items (Detail) - SEK (kr) kr in Millions | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Non-current assets | |||||
Deferred tax assets | kr 21,228 | kr 15,522 | |||
Current assets | |||||
Inventories | 24,960 | 30,307 | |||
Trade receivables | 63,210 | 68,117 | |||
Equity and liabilities | |||||
Equity | 100,176 | 140,492 | kr 147,366 | kr 145,309 | |
Non-current liabilities | |||||
Borrowings, non-current | 30,500 | 18,653 | |||
Current liabilities | |||||
Other current liabilities | 62,370 | 56,003 | |||
Increase (decrease) due to application of IFRS 15 [member] | |||||
Non-current assets | |||||
Deferred tax assets | 735 | ||||
Current assets | |||||
Inventories | 587 | ||||
Contract assets | 13,120 | ||||
Trade receivables | (15,105) | ||||
Equity and liabilities | |||||
Equity | (2,605) | ||||
Current liabilities | |||||
Contract liabilities | 22,121 | ||||
Other current liabilities | (20,179) | ||||
Restated [member] | |||||
Non-current assets | |||||
Deferred tax assets | 21,963 | ||||
Current assets | |||||
Inventories | 25,547 | ||||
Contract assets | 13,120 | ||||
Trade receivables | 48,105 | ||||
Equity and liabilities | |||||
Equity | 97,571 | kr 135,257 | kr 143,013 | ||
Non-current liabilities | |||||
Borrowings, non-current | 30,500 | ||||
Current liabilities | |||||
Contract liabilities | 22,121 | ||||
Other current liabilities | 42,191 | ||||
IFRS 9 adjustment [member] | |||||
Non-current assets | |||||
Deferred tax assets | 407 | ||||
Current assets | |||||
Trade receivables | (1,240) | ||||
Equity and liabilities | |||||
Equity | (1,401) | ||||
Non-current liabilities | |||||
Borrowings, non-current | kr 568 | ||||
Balance after IFRS adjustments [member] | |||||
Non-current assets | |||||
Deferred tax assets | kr 22,370 | ||||
Current assets | |||||
Inventories | 25,547 | ||||
Contract assets | 13,120 | ||||
Trade receivables | 46,865 | ||||
Equity and liabilities | |||||
Equity | 96,170 | ||||
Non-current liabilities | |||||
Borrowings, non-current | 31,068 | ||||
Current liabilities | |||||
Contract liabilities | 22,121 | ||||
Other current liabilities | kr 42,191 |
Significant Accounting Polici73
Significant Accounting Policies - Summary of Estimated Impact of IFRS 15 on Equity (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Equity | kr 100,176 | kr 140,492 | kr 147,366 | kr 145,309 |
Previously stated [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Equity | 140,492 | 147,366 | ||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Equity | (5,235) | (4,353) | ||
Restated [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Equity | kr 97,571 | kr 135,257 | kr 143,013 |
Significant Accounting Polici74
Significant Accounting Policies - Summary of Estimated Impact of IFRS 15 on Income Statement Items (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Net sales | kr 201,303 | kr 222,608 | kr 246,920 |
Cost of sales | (156,758) | (156,243) | (161,101) |
Gross income | 44,545 | 66,365 | 85,819 |
Operating income | (38,126) | 6,299 | 21,805 |
Taxes | 4,267 | (2,131) | (6,199) |
Net income | (35,063) | 1,895 | kr 13,673 |
Previously stated [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Net sales | 201,303 | 222,608 | |
Cost of sales | (156,758) | (156,243) | |
Gross income | 44,545 | 66,365 | |
Operating income | (38,126) | 6,299 | |
Taxes | 4,267 | (2,131) | |
Net income | (35,063) | 1,895 | |
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Net sales | 4,075 | (2,292) | |
Cost of sales | (703) | 1,160 | |
Gross income | 3,372 | (1,132) | |
Operating income | 3,372 | (1,132) | |
Taxes | (742) | 249 | |
Net income | 2,630 | (883) | |
Restated [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Net sales | 205,378 | 220,316 | |
Cost of sales | (157,461) | (155,083) | |
Gross income | 47,917 | 65,233 | |
Operating income | (34,754) | 5,167 | |
Taxes | 3,525 | (1,882) | |
Net income | kr (32,433) | kr 1,012 |
Critical Accounting Estimates a
Critical Accounting Estimates and Judgments - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of accounting judgements and estimates [line items] | |||
Information about major customers | There is no customer for which revenues exceeds 10% of the Company's total revenue. It is, however, also disclosed that most of the sales are derived from large, multi-year agreements with a limited number of significant customers. | ||
Allowances for estimated losses on trade and customer receivables | kr 3,600 | kr 1,700 | |
Percentage of allowances for estimated losses on gross trade and customer finance receivables | 5.10% | 2.20% | |
Allowances for estimated losses on inventory valuation | kr 2,400 | kr 2,400 | |
Allowances for estimated losses on inventory valuation, percentage | 9.00% | 7.00% | |
Deferred tax assets | kr 21,228 | kr 15,522 | |
Write-downs for intangible assets and goodwill amounted | 19,441 | 241 | kr 20 |
Goodwill | 27,815 | 43,387 | |
Provisions | 9,946 | 6,357 | kr 3,838 |
Defined benefit obligation (DBO) | 87,645 | 87,175 | |
Fair value of plan assets | 64,939 | 64,485 | |
Goodwill and intangible assets [member] | |||
Disclosure of accounting judgements and estimates [line items] | |||
Write-downs for intangible assets and goodwill amounted | 17,200 | ||
Intellectual property rights brands and other intangible assets [member] | |||
Disclosure of accounting judgements and estimates [line items] | |||
Intangible assets and goodwill | kr 32,000 | kr 51,100 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017CustomersSegments | Dec. 31, 2016 | |
Disclosure of operating segments [line items] | ||
Number of operating segments reported | Segments | 4 | |
Description of factors used to identify entity's reportable segments | When determining Ericsson's operating segments, consideration has been given to which markets and what type of customers the products and services aim to attract, as well as the distribution channels they are sold through. Commonality regarding technology, research and development has also been taken into account. To best reflect the business focus and to facilitate comparability with peers, four operating segments are reported; | |
Number of customers representing 10% or more of sales | 0 | |
10 largest customers [member] | ||
Disclosure of operating segments [line items] | ||
Percentage of contribution to net sales | 45.00% | 46.00% |
Largest customer [member] | ||
Disclosure of operating segments [line items] | ||
Percentage of contribution to net sales | 7.00% | 7.00% |
Networks [member] | IPR licensing revenues [member] | ||
Disclosure of operating segments [line items] | ||
Percentage of revenue | 82.00% | |
Digital services [member] | IPR licensing revenues [member] | ||
Disclosure of operating segments [line items] | ||
Percentage of revenue | 18.00% | |
Bottom of range [member] | ||
Disclosure of operating segments [line items] | ||
Number of customer base | 500 |
Segment Information - Summary o
Segment Information - Summary of Operating Segments (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Net sales | kr 201,303 | kr 222,608 | kr 246,920 |
Gross income | kr 44,545 | kr 66,365 | kr 85,819 |
Gross margin | 22.10% | 29.80% | 34.80% |
Operating income | kr (38,126) | kr 6,299 | kr 21,805 |
Operating margin | (19.00%) | 3.00% | 9.00% |
Financial income | kr (361) | kr (115) | kr 525 |
Financial expenses | (843) | (2,158) | (2,458) |
Income after financial items | (39,330) | 4,026 | 19,872 |
Taxes | 4,267 | (2,131) | (6,199) |
Net income | (35,063) | 1,895 | 13,673 |
Other segment items | |||
Share in earnings of JV and associated companies | 24 | 31 | (38) |
Amortization | (4,348) | (4,465) | (5,518) |
Depreciation | (4,103) | (4,421) | (4,705) |
Impairment losses | (19,441) | (241) | (20) |
Reversals of impairment losses | 8 | 16 | |
Restructuring expenses | (8,501) | (7,567) | (5,040) |
Gains/losses on sale of investments and operations | 194 | 123 | (49) |
Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 201,303 | 222,608 | 246,920 |
Gross income | kr 44,545 | kr 66,365 | kr 85,818 |
Gross margin | 22.00% | 30.00% | 35.00% |
Operating income | kr (38,126) | kr 6,299 | kr 21,805 |
Operating margin | (19.00%) | 3.00% | 9.00% |
Other segment items | |||
Share in earnings of JV and associated companies | kr 24 | kr 31 | kr (38) |
Amortization | (4,348) | (4,465) | |
Depreciation | (4,103) | (4,421) | |
Impairment losses | (19,441) | (241) | (20) |
Reversals of impairment losses | 8 | 16 | |
Restructuring expenses | (8,501) | (7,567) | |
Gains/losses on sale of investments and operations | 194 | 123 | (49) |
Operating segments [member] | Networks [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 127,966 | 140,984 | 157,791 |
Gross income | kr 40,622 | kr 47,099 | kr 59,653 |
Gross margin | 32.00% | 33.00% | 38.00% |
Operating income | kr 7,644 | kr 17,570 | kr 28,290 |
Operating margin | 6.00% | 12.00% | 18.00% |
Other segment items | |||
Share in earnings of JV and associated companies | kr 22 | kr 11 | kr (1) |
Amortization | (1,104) | (1,526) | |
Depreciation | (1,883) | (2,532) | |
Impairment losses | (1,413) | (90) | |
Reversals of impairment losses | 5 | 10 | |
Restructuring expenses | (4,828) | (3,413) | |
Gains/losses on sale of investments and operations | 316 | 72 | (32) |
Operating segments [member] | Digital services [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 40,981 | 45,298 | 49,443 |
Gross income | kr 4,361 | kr 16,081 | kr 21,264 |
Gross margin | 11.00% | 36.00% | 43.00% |
Operating income | kr (27,672) | kr (6,663) | kr (3,389) |
Operating margin | (68.00%) | (15.00%) | (7.00%) |
Other segment items | |||
Share in earnings of JV and associated companies | kr 8 | kr 22 | kr (33) |
Amortization | (2,465) | (1,923) | |
Depreciation | (1,268) | (1,061) | |
Impairment losses | (9,349) | (38) | |
Reversals of impairment losses | 2 | 3 | |
Restructuring expenses | (2,513) | (3,176) | |
Gains/losses on sale of investments and operations | (56) | 27 | (10) |
Operating segments [member] | Managed services [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 24,494 | 27,501 | 30,597 |
Gross income | kr (1,816) | kr 1,062 | kr 1,655 |
Gross margin | (7.00%) | 4.00% | 5.00% |
Operating income | kr (4,274) | kr (507) | kr (19) |
Operating margin | (17.00%) | (2.00%) | |
Other segment items | |||
Share in earnings of JV and associated companies | kr (6) | 10 | |
Amortization | (14) | kr (18) | (47) |
Depreciation | (193) | (341) | (388) |
Impairment losses | (108) | (12) | |
Reversals of impairment losses | 1 | 1 | |
Restructuring expenses | (675) | (382) | (238) |
Gains/losses on sale of investments and operations | 1 | 18 | (7) |
Operating segments [member] | All other segments [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 7,862 | 8,825 | 9,089 |
Gross income | kr 1,378 | kr 2,123 | kr 3,246 |
Gross margin | 18.00% | 24.00% | 36.00% |
Operating income | kr (13,824) | kr (4,101) | kr (3,077) |
Operating margin | (176.00%) | (46.00%) | (34.00%) |
Other segment items | |||
Share in earnings of JV and associated companies | kr (2) | kr (14) | |
Amortization | kr (765) | (998) | (960) |
Depreciation | (759) | (487) | (440) |
Impairment losses | (8,571) | (101) | (20) |
Reversals of impairment losses | 2 | ||
Restructuring expenses | (485) | (596) | kr (162) |
Gains/losses on sale of investments and operations | kr (67) | kr 6 |
Segment Information - Summary78
Segment Information - Summary of Geographical Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of geographical areas [line items] | |||
Net sales | kr 201,303 | kr 222,608 | kr 246,920 |
Non-current assets | 50,037 | 76,719 | 73,007 |
South East Asia, Oceania and India [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 30,568 | 32,597 | 32,155 |
Non-current assets | 512 | 690 | 668 |
North East Asia [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 23,506 | 27,185 | 28,106 |
Non-current assets | 1,516 | 1,556 | 2,005 |
North America [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 49,621 | 52,003 | 55,063 |
Non-current assets | 8,387 | 14,650 | 14,870 |
Europe and Latin America [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 56,175 | 62,543 | 73,603 |
Non-current assets | 39,559 | 59,737 | 55,325 |
Middle East and Africa [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 25,073 | 28,104 | 33,002 |
Non-current assets | 63 | 86 | 139 |
Other regions [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 16,360 | 20,176 | 24,991 |
Sweden [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 2,989 | 3,123 | 3,796 |
Non-current assets | 34,381 | 53,111 | 48,467 |
European Union [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 36,072 | 38,525 | 45,585 |
Non-current assets | 37,895 | 57,759 | 53,759 |
US [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 52,322 | 56,748 | 64,299 |
Non-current assets | 7,092 | 11,053 | 12,325 |
China [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 14,937 | 19,156 | 18,977 |
Non-current assets | kr 1,123 | kr 530 | kr 1,547 |
Net Sales - Summary of Net Sale
Net Sales - Summary of Net Sales (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue [abstract] | |||
Sales of products and network rollout services | kr 123,990 | kr 135,778 | kr 150,775 |
Professional Services sales | 69,408 | 76,816 | 81,749 |
License revenues | 7,905 | 10,014 | 14,396 |
Net sales | 201,303 | 222,608 | 246,920 |
Export sales from Sweden | kr 86,812 | kr 107,036 | kr 117,486 |
Expenses by Nature - Summary of
Expenses by Nature - Summary of Expenses by Nature (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Expenses by nature [abstract] | |||
Goods and services | kr 128,211 | kr 133,848 | kr 137,458 |
Employee remuneration | 76,502 | 77,774 | 80,054 |
Amortization and depreciation | 8,451 | 8,886 | 10,223 |
Impairments and obsolescence allowances, net of reversals | 11,531 | 1,325 | 1,438 |
Financial expenses | 843 | 2,158 | 2,458 |
Taxes | (4,267) | 2,131 | 6,199 |
Expenses incurred | 221,271 | 226,122 | 237,830 |
Inventory increase/decrease | 4,070 | (606) | (394) |
Additions to capitalized development | (1,444) | (4,483) | (3,302) |
Expenses charged to the income statement | kr 223,897 | kr 221,033 | kr 233,888 |
Expenses by Nature - Additional
Expenses by Nature - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Expense by Nature [Line Items] | |||
Expense of restructuring activities related to write-down of center | kr 8,501 | kr 7,567 | kr 5,040 |
ICT center [member] | |||
Expense by Nature [Line Items] | |||
Expense of restructuring activities related to write-down of center | kr 1,300 |
Expenses by Nature - Summary 82
Expenses by Nature - Summary of Restructuring Charges by Function (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Expense by Nature [Line Items] | |||
Total restructuring charges | kr 8,501 | kr 7,567 | kr 5,040 |
Cost of sales [member] | |||
Expense by Nature [Line Items] | |||
Total restructuring charges | 5,242 | 3,475 | 2,274 |
R&D expenses [member] | |||
Expense by Nature [Line Items] | |||
Total restructuring charges | 2,307 | 2,739 | 2,021 |
Selling and administrative expenses [member] | |||
Expense by Nature [Line Items] | |||
Total restructuring charges | kr 952 | kr 1,353 | kr 745 |
Other Operating Income and Expe
Other Operating Income and Expenses - Schedule of Other Operating Income and Expenses (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other operating income | |||
Gains on sales of intangible assets and PP&E | kr 47 | kr 423 | kr 363 |
Gains on sales of investments and operations | 324 | 219 | 1 |
Other operating revenues | 783 | 1,345 | 1,204 |
Total other operating income | 1,154 | 1,987 | 1,568 |
Other operating expenses | |||
Losses on sales of intangible assets and PP&E | (74) | (509) | (158) |
Losses on sales of investments and operations | (130) | (96) | (50) |
Write-down of goodwill | (12,966) | ||
Other operating expenses | (116) | (978) | (1,207) |
Total other operating expenses | kr (13,286) | kr (1,583) | kr (1,415) |
Other Operating Income and Ex84
Other Operating Income and Expenses - Schedule of Other Operating Income and Expenses (Parenthetical) (Detail) - SEK (kr) kr in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Revaluation of cash flow hedges | kr 0 | kr (0.9) | kr (1.1) |
Financial Income and Expenses -
Financial Income and Expenses - Summary of Financial Income and Expenses (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about finance income expense [Line Items] | |||
Finance income | kr (361) | kr (115) | kr 525 |
Finance expenses | (843) | (2,158) | (2,458) |
Contractual interest on financial assets [member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Finance income | (75) | 32 | 385 |
Contractual interest on financial assets at fair value through profit or loss category [member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Finance income | (92) | (316) | (110) |
Instruments at fair value through profit or loss [member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Finance income | (231) | (68) | 190 |
Available for sale [member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Finance income | 40 | ||
Loans and receivables [member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Finance income | (102) | (79) | (53) |
Other financial income and expenses [member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Finance income | 7 | 3 | |
Contractual interest on financial liabilities [member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Finance expenses | (1,027) | (1,355) | (1,428) |
Instruments at fair value through profit or loss [member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Finance expenses | 543 | (729) | (760) |
Financial assets including hedge relationships at fair value through profit or loss category [member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Finance expenses | 2 | 71 | 152 |
Liabilities at amortized cost [member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Finance expenses | 72 | 218 | 213 |
Other financial income and expenses [member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Finance expenses | kr (431) | kr (292) | kr (483) |
Financial Income and Expenses86
Financial Income and Expenses - Summary of Financial Income and Expenses (Parenthetical) (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cost of sales [member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Net loss from operating assets and liabilities | kr 451 | kr 234 | kr 165 |
Taxes - Additional Information
Taxes - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||
Tax benefit (expense) | kr 4,267 | kr (2,131) | kr (6,199) |
Effective tax rate | 10.80% | 52.90% | 31.20% |
Tax effects recognized in other comprehensive income (loss) | kr (563) | kr 521 | |
Actuarial gains and losses related to pensions | (547) | 520 | |
Deferred tax assets | 21,228 | 15,522 | |
Tax loss carry-forwards | 47,360 | 20,929 | |
Unrecognized tax loss carry forwards | 4,544 | 3,936 | |
Unrecognized tax loss carry forwards, tax value | 842 | 950 | |
Loss Carry Forwards [member] | |||
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||
Deferred tax assets | kr 10,712 | 4,883 | |
Sweden [member] | |||
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||
Expected applicable tax rate | 22.00% | ||
Sweden [member] | Loss Carry Forwards [member] | |||
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||
Deferred tax assets | kr 8,795 | kr 3,774 |
Taxes - Components of Income Ta
Taxes - Components of Income Taxes Recognized in Income Statement (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Major components of tax expense (income) [abstract] | |||
Current income taxes for the year | kr (4,168) | kr (3,654) | kr (6,641) |
Current income taxes related to prior years | 83 | (489) | (104) |
Deferred tax income/expense | 8,355 | 2,017 | 546 |
Share of taxes in joint ventures and associated companies | (3) | (5) | |
Tax expense/benefit | kr 4,267 | kr (2,131) | kr (6,199) |
Taxes - Reconciliation of Swedi
Taxes - Reconciliation of Swedish Income Tax Rate with Effective Tax Rate (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Expected tax expense at Swedish tax rate 22.0% | kr 8,652 | kr (886) | kr (4,372) |
Effect of foreign tax rates | 205 | (536) | (1,101) |
Current income taxes related to prior years | 83 | (489) | (104) |
Remeasurement of tax loss carry-forwards | (150) | 143 | (250) |
Remeasurement of deductible temporary differences | 127 | 119 | 185 |
Tax effect of non-deductible expenses | (4,144) | (1,357) | (1,559) |
Tax effect of non-taxableincome | 480 | 935 | 981 |
Tax effect of changes in tax rates | (986) | (60) | 21 |
Tax expense/benefit | kr 4,267 | kr (2,131) | kr (6,199) |
Effective tax rate | 10.80% | 52.90% | 31.20% |
Taxes - Reconciliation of Swe90
Taxes - Reconciliation of Swedish Income Tax Rate with Effective Tax Rate (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Sweden [member] | |
Reconciliation of effective tax rate [Line Items] | |
Statutory tax rate in Sweden | 22.00% |
Taxes - Tax Effects of Temporar
Taxes - Tax Effects of Temporary Differences and Tax Loss Carry-forwards (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | kr 21,228 | kr 15,522 | |
Deferred tax liabilities | 901 | 2,147 | |
Net balance | 20,327 | 13,375 | kr 10,711 |
Intangible assets and property, plant and equipment [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 894 | 1,223 | |
Deferred tax liabilities | 2,374 | 4,173 | |
Current assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 2,667 | 2,352 | |
Deferred tax liabilities | 866 | 501 | |
Post employment benefits [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 4,886 | 4,382 | |
Deferred tax liabilities | 704 | 692 | |
Provisions [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 1,846 | 1,631 | |
Deferred tax liabilities | 15 | 13 | |
Other [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 3,556 | 4,557 | |
Deferred tax liabilities | 275 | 274 | |
Loss Carry Forwards [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 10,712 | 4,883 | |
Deferred tax assets/ liabilities [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 24,561 | 19,028 | |
Deferred tax liabilities | 4,234 | 5,653 | |
Net balance | 20,327 | 13,375 | |
Netting of tax assets/ liabilities [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | (3,333) | (3,506) | |
Deferred tax liabilities | kr (3,333) | kr (3,506) |
Taxes - Changes in Deferred Tax
Taxes - Changes in Deferred Taxes, Net (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance, net | kr 13,375 | kr 10,711 |
Recognized in net income (loss) | 8,355 | 2,017 |
Recognized in other comprehensive income (loss) | (563) | 521 |
Acquisitions/disposals of subsidiaries | (57) | |
Reclassification to current tax | (462) | |
Currency translation differences | (378) | 183 |
Closing balance, net | kr 20,327 | kr 13,375 |
Taxes - Tax Loss Carry-forwards
Taxes - Tax Loss Carry-forwards (Detail) kr in Millions | Dec. 31, 2017SEK (kr) |
Disclosure Of Income Taxes [Line Items] | |
Tax loss carry-forwards | kr 47,360 |
Tax value | 10,712 |
2019 [member] | |
Disclosure Of Income Taxes [Line Items] | |
Tax loss carry-forwards | 37 |
Tax value | 9 |
2020 [member] | |
Disclosure Of Income Taxes [Line Items] | |
Tax loss carry-forwards | 74 |
Tax value | 15 |
2021 [member] | |
Disclosure Of Income Taxes [Line Items] | |
Tax loss carry-forwards | 197 |
Tax value | 32 |
2022 [member] | |
Disclosure Of Income Taxes [Line Items] | |
Tax loss carry-forwards | 870 |
Tax value | 218 |
2023 or later [member] | |
Disclosure Of Income Taxes [Line Items] | |
Tax loss carry-forwards | 46,182 |
Tax value | kr 10,438 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Detail) - SEK (kr) kr / shares in Units, shares in Millions, kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic | |||
Net income (loss) attributable to stockholders of the Parent Company | kr (35,206) | kr 1,716 | kr 13,549 |
Average number of shares outstanding, basic | 3,277 | 3,263 | 3,249 |
Earnings (loss) per share, basic | kr (10.74) | kr 0.53 | kr 4.17 |
Diluted | |||
Net income (loss) attributable to stockholders of the Parent Company | kr (35,206) | kr 1,716 | kr 13,549 |
Average number of shares outstanding, basic | 3,277 | 3,263 | 3,249 |
Dilutive effect for stock purchase | 40 | 33 | |
Average number of shares outstanding, diluted | 3,277 | 3,303 | 3,282 |
Earnings (loss) per share, diluted | kr (10.74) | kr 0.52 | kr 4.13 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cost | |||
Impairment losses | kr 17,230 | kr 85 | kr 20 |
Capitalized development expenditure [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | 8,076 | ||
Intangible assets and goodwill, Closing balance | 4,593 | 8,076 | |
Capitalized development expenditure [member] | Cost [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | 22,306 | 19,217 | |
Acquisitions/capitalization | 1,444 | 4,483 | |
Sales/disposals | (1,019) | (1,394) | |
Intangible assets and goodwill, Closing balance | 22,731 | 22,306 | 19,217 |
Capitalized development expenditure [member] | Accumulated depreciation and amortization [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | (12,015) | (11,594) | |
Amortization | (2,681) | (1,815) | |
Sales/disposals | 1,019 | 1,394 | |
Intangible assets and goodwill, Closing balance | (13,677) | (12,015) | (11,594) |
Capitalized development expenditure [member] | Accumulated impairment losses [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | (2,215) | (2,130) | |
Impairment losses | (2,245) | (85) | |
Intangible assets and goodwill, Closing balance | (4,460) | (2,215) | (2,130) |
Goodwill [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | 43,387 | ||
Intangible assets and goodwill, Closing balance | 27,815 | 43,387 | |
Goodwill [member] | Cost [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | 43,405 | 41,105 | |
Balances regarding acquired/divested businesses 2) | (122) | 585 | |
Reclassification | (640) | ||
Translation difference | (2,484) | 2,355 | |
Intangible assets and goodwill, Closing balance | 40,799 | 43,405 | 41,105 |
Goodwill [member] | Accumulated impairment losses [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | (18) | (18) | |
Impairment losses | (12,966) | ||
Intangible assets and goodwill, Closing balance | (12,984) | (18) | (18) |
IPR, brands and other intangible assets [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | 7,747 | ||
Intangible assets and goodwill, Closing balance | 4,148 | 7,747 | |
IPR, brands and other intangible assets [member] | Cost [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | 57,340 | 55,895 | |
Acquisitions/capitalization | 336 | 15 | |
Balances regarding acquired/divested businesses 2) | 101 | 177 | |
Sales/disposals | (152) | (870) | |
Reclassification | 640 | ||
Translation difference | (1,693) | 1,483 | |
Intangible assets and goodwill, Closing balance | 55,932 | 57,340 | 55,895 |
IPR, brands and other intangible assets [member] | Accumulated depreciation and amortization [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | (44,262) | (41,248) | |
Amortization | (1,667) | (2,650) | |
Sales/disposals | 152 | 840 | |
Translation difference | 1,343 | (1,204) | |
Intangible assets and goodwill, Closing balance | (44,434) | (44,262) | (41,248) |
IPR, brands and other intangible assets [member] | Accumulated impairment losses [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | (5,331) | (5,331) | |
Impairment losses | (2,019) | ||
Intangible assets and goodwill, Closing balance | (7,350) | (5,331) | (5,331) |
Marketed products [member] | Capitalized development expenditure [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | 7,880 | ||
Intangible assets and goodwill, Closing balance | 4,475 | 7,880 | |
Marketed products [member] | Capitalized development expenditure [member] | Cost [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | 18,246 | 15,307 | |
Acquisitions/capitalization | 1,340 | 4,333 | |
Sales/disposals | (1,394) | ||
Intangible assets and goodwill, Closing balance | 19,586 | 18,246 | 15,307 |
Marketed products [member] | Capitalized development expenditure [member] | Accumulated depreciation and amortization [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | (8,243) | (7,995) | |
Amortization | (2,586) | (1,642) | |
Sales/disposals | 1,394 | ||
Reclassification | (101) | ||
Intangible assets and goodwill, Closing balance | (10,930) | (8,243) | (7,995) |
Marketed products [member] | Capitalized development expenditure [member] | Accumulated impairment losses [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | (2,123) | (2,038) | |
Impairment losses | (2,058) | (85) | |
Intangible assets and goodwill, Closing balance | (4,181) | (2,123) | (2,038) |
Acquired costs [member] | Capitalized development expenditure [member] | Cost [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | 2,213 | 2,213 | |
Intangible assets and goodwill, Closing balance | 2,213 | 2,213 | 2,213 |
Acquired costs [member] | Capitalized development expenditure [member] | Accumulated depreciation and amortization [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | (2,158) | (2,158) | |
Intangible assets and goodwill, Closing balance | (2,158) | (2,158) | (2,158) |
Acquired costs [member] | Capitalized development expenditure [member] | Accumulated impairment losses [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | (55) | (55) | |
Intangible assets and goodwill, Closing balance | (55) | (55) | (55) |
Internally costs [member] | Capitalized development expenditure [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | 196 | ||
Intangible assets and goodwill, Closing balance | 119 | 196 | |
Internally costs [member] | Capitalized development expenditure [member] | Cost [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | 1,847 | 1,697 | |
Acquisitions/capitalization | 104 | 150 | |
Sales/disposals | (1,019) | ||
Intangible assets and goodwill, Closing balance | 932 | 1,847 | 1,697 |
Internally costs [member] | Capitalized development expenditure [member] | Accumulated depreciation and amortization [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | (1,614) | (1,441) | |
Amortization | (95) | (173) | |
Sales/disposals | 1,019 | ||
Reclassification | 101 | ||
Intangible assets and goodwill, Closing balance | (589) | (1,614) | (1,441) |
Internally costs [member] | Capitalized development expenditure [member] | Accumulated impairment losses [member] | |||
Cost | |||
Intangible assets and goodwill, Opening balance | (37) | (37) | |
Impairment losses | (187) | ||
Intangible assets and goodwill, Closing balance | kr (224) | kr (37) | kr (37) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) kr in Millions, Mobile_subscriptions in Billions, Device in Billions | 12 Months Ended | ||
Dec. 31, 2023Mobile_subscriptionsDevice | Dec. 31, 2017SEK (kr)Mobile_subscriptions | Dec. 31, 2016SEK (kr) | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | kr 27,815 | kr 43,387 | |
Write down of goodwill | 12,966 | ||
Write-downs of intangibles and capitalized development | kr 2,000 | ||
After-tax discount rate | 8.50% | 8.00% | |
Subscription by 2023 [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Number of connected devices are forecasted | Device | 30 | ||
Later than five year and not later than six years [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Percentage of estimated increase in mobile video traffic | 50.00% | ||
Percentage of estimated increase in mobile date traffic | 75.00% | ||
Research and development expenses [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Write-downs of intangibles and capitalized development | kr 2,600 | ||
Selling and administrative expenses [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Write-downs of intangibles and capitalized development | 1,600 | ||
Technology [member] | Sunrise technology [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Write-downs of intangibles and capitalized development | 500 | ||
Networks [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 24,300 | ||
Write-downs of intangibles and capitalized development | 100 | ||
Networks [member] | Technology [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Write-downs of intangibles and capitalized development | 400 | ||
Digital services [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 2,600 | ||
Write down of goodwill | 6,900 | ||
Write-downs of intangibles and capitalized development | 900 | ||
Digital services [member] | Goodwill [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Write-downs of intangibles and capitalized development | 2,600 | ||
Digital services [member] | Technology [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Write-downs of intangibles and capitalized development | 1,800 | ||
Other [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 900 | ||
Write down of goodwill | 6,100 | ||
Write-downs of intangibles and capitalized development | 1,000 | ||
Other [member] | Research and development expenses [member] | Intangible asset [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Write-downs value | 2,000 | ||
Other [member] | Media solutions [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Write-downs of intangibles and capitalized development | 2,000 | ||
Other [member] | Media solutions [member] | Red bee media [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Write-downs of intangibles and capitalized development | 800 | ||
Media solutions [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Write down of goodwill | kr 6,000 | ||
Mobile subscriptions [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Estimated number of global mobile subscriptions | Mobile_subscriptions | 7.8 | ||
Mobile subscriptions [member] | Subscription by 2023 [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Estimated number of global mobile subscriptions | Mobile_subscriptions | 9.1 | ||
Smart phone [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Estimated number of global mobile subscriptions | Mobile_subscriptions | 7.3 | ||
5G subscriptions [member] | Subscription by 2023 [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Estimated number of global mobile subscriptions | Mobile_subscriptions | 1 | ||
Internet of things [member] | Subscription by 2023 [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Number of connected devices are forecasted | Device | 20 |
Intangible Assets - Summary o97
Intangible Assets - Summary of Impairment Write-down by Segment (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | kr 12,966 | ||
Intangible assets | 2,000 | ||
Capitalized development expenses | 2,200 | ||
Total write-down | 17,230 | kr 85 | kr 20 |
Total write-down | 17,230 | kr 85 | kr 20 |
Networks [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 100 | ||
Capitalized development expenses | 300 | ||
Total write-down | 400 | ||
Total write-down | 400 | ||
Digital services [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | 6,900 | ||
Intangible assets | 900 | ||
Capitalized development expenses | 900 | ||
Total write-down | 8,700 | ||
Total write-down | 8,700 | ||
Other [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | 6,100 | ||
Intangible assets | 1,000 | ||
Capitalized development expenses | 1,000 | ||
Total write-down | 8,100 | ||
Total write-down | kr 8,100 |
Intangible Assets - Summary o98
Intangible Assets - Summary of Impairment Write-down by Segment (Parenthetical) (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about intangible assets [line items] | |||
Total write-down | kr 17,230 | kr 85 | kr 20 |
Other [member] | Media solutions [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Total write-down | 6,000 | ||
Other [member] | Red bee media [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Total write-down | kr 100 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | kr 16,734 | |
Impairment losses | 2,200 | kr 200 |
Property, plant and equipment, closing balance | 12,857 | 16,734 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 47,200 | 44,538 |
Additions | 3,877 | 6,129 |
Balances regarding acquired/divested businesses | (155) | (52) |
Sales/disposals | (7,352) | (4,885) |
Reclassifications | (2) | |
Translation difference | (1,019) | 1,472 |
Property, plant and equipment, closing balance | 42,551 | 47,200 |
Accumulated depreciation and amortization [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (30,341) | (28,621) |
Depreciations | (4,103) | (4,421) |
Balances regarding acquired/divested businesses | 105 | 35 |
Sales/disposals | 5,054 | 3,611 |
Reclassifications | 1 | |
Translation difference | 683 | (946) |
Property, plant and equipment, closing balance | (28,602) | (30,341) |
Accumulated impairment losses [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (125) | (16) |
Impairment losses | (2,211) | (156) |
Reversals of impairment losses | 8 | |
Sales/disposals | 1,254 | 39 |
Translation difference | (10) | |
Property, plant and equipment, closing balance | (1,092) | (125) |
Real estate [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 3,460 | |
Property, plant and equipment, closing balance | 2,740 | 3,460 |
Real estate [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 7,132 | 6,475 |
Additions | 150 | 177 |
Balances regarding acquired/divested businesses | (9) | (1) |
Sales/disposals | (1,323) | (1,410) |
Reclassifications | 757 | 1,633 |
Translation difference | (197) | 258 |
Property, plant and equipment, closing balance | 6,510 | 7,132 |
Real estate [member] | Accumulated depreciation and amortization [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (3,629) | (3,634) |
Depreciations | (458) | (506) |
Balances regarding acquired/divested businesses | 9 | 2 |
Sales/disposals | 349 | 643 |
Reclassifications | 4 | |
Translation difference | 99 | (138) |
Property, plant and equipment, closing balance | (3,630) | (3,629) |
Real estate [member] | Accumulated impairment losses [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (43) | |
Impairment losses | (297) | (43) |
Sales/disposals | 200 | |
Property, plant and equipment, closing balance | (140) | (43) |
Machinery and other technical assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 632 | |
Property, plant and equipment, closing balance | 467 | 632 |
Machinery and other technical assets [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 4,286 | 4,560 |
Additions | 183 | 148 |
Balances regarding acquired/divested businesses | (134) | (53) |
Sales/disposals | (457) | (596) |
Reclassifications | 56 | 110 |
Translation difference | (115) | 117 |
Property, plant and equipment, closing balance | 3,819 | 4,286 |
Machinery and other technical assets [member] | Accumulated depreciation and amortization [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (3,651) | (3,779) |
Depreciations | (279) | (330) |
Balances regarding acquired/divested businesses | 85 | 26 |
Sales/disposals | 442 | 534 |
Reclassifications | 1 | |
Translation difference | 93 | (103) |
Property, plant and equipment, closing balance | (3,310) | (3,651) |
Machinery and other technical assets [member] | Accumulated impairment losses [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (3) | (10) |
Impairment losses | (42) | (1) |
Reversals of impairment losses | 8 | |
Sales/disposals | 4 | |
Translation difference | (1) | |
Property, plant and equipment, closing balance | (42) | (3) |
Other equipment tools and installations [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 9,994 | |
Property, plant and equipment, closing balance | 8,042 | 9,994 |
Other equipment tools and installations [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 33,134 | 28,753 |
Additions | 1,317 | 1,519 |
Balances regarding acquired/divested businesses | (12) | 2 |
Sales/disposals | (5,387) | (2,610) |
Reclassifications | 2,226 | 4,570 |
Translation difference | (664) | 900 |
Property, plant and equipment, closing balance | 30,614 | 33,134 |
Other equipment tools and installations [member] | Accumulated depreciation and amortization [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (23,061) | (21,208) |
Depreciations | (3,366) | (3,585) |
Balances regarding acquired/divested businesses | 11 | 7 |
Sales/disposals | 4,263 | 2,434 |
Reclassifications | (4) | |
Translation difference | 491 | (705) |
Property, plant and equipment, closing balance | (21,662) | (23,061) |
Other equipment tools and installations [member] | Accumulated impairment losses [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (79) | (6) |
Impairment losses | (1,872) | (112) |
Sales/disposals | 1,050 | 39 |
Translation difference | (9) | |
Property, plant and equipment, closing balance | (910) | (79) |
Construction in progress and advance payments [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 2,648 | |
Property, plant and equipment, closing balance | 1,608 | 2,648 |
Construction in progress and advance payments [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 2,648 | 4,750 |
Additions | 2,227 | 4,285 |
Sales/disposals | (185) | (269) |
Reclassifications | (3,039) | (6,315) |
Translation difference | (43) | 197 |
Property, plant and equipment, closing balance | kr 1,608 | kr 2,648 |
Property, Plant and Equipmen100
Property, Plant and Equipment - Additional Information (Detail) - SEK (kr) kr in Billions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses | kr 2.2 | kr 0.2 |
Sales/disposals | 1.2 | |
Networks [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses | 1 | |
Digital services [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses | 0.7 | |
Managed services [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses | 0.1 | |
All other segments [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses | kr 0.4 |
Financial Assets, Non-current -
Financial Assets, Non-current - Equity in Joint Ventures and Associated Companies (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial assets [line items] | |||
Dividends | kr (3,424) | kr (12,263) | kr (11,337) |
Associates and joint ventures [member] | |||
Disclosure of financial assets [line items] | |||
Equity in joint ventures and associated companies,Opening balance | 775 | 1,210 | |
Share in earnings | 24 | 31 | |
Distribution of capital stock | (95) | ||
Taxes | (3) | (5) | |
Dividends | (77) | (84) | |
Divested business | (15) | ||
Translation difference | (362) | ||
Equity in joint ventures and associated companies,Closing balance | kr 624 | kr 775 | kr 1,210 |
Financial Assets, Non-curren102
Financial Assets, Non-current - Equity in Joint Ventures and Associated Companies (Parenthetical) (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [abstract] | ||
Goodwill, net | kr 27,815 | kr 43,387 |
Financial Assets, Non-curren103
Financial Assets, Non-current - Ericsson's Share of Assets, Liabilities and Income in Associated Company Rockstar Consortium (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial assets [line items] | |||
Net income and total comprehensive income | kr (37,862) | kr 4,514 | kr 12,362 |
Rockstar Consortium LLC [member] | |||
Disclosure of financial assets [line items] | |||
Percentage in ownership interest | 21.26% | 21.26% | 21.26% |
Total assets | kr 20 | kr 22 | kr 21 |
Total liabilities | 5 | ||
Net assets | 20 | 22 | 16 |
Company's share of net assets | 3 | 3 | 3 |
Net sales | kr 0 | kr 0 | 0 |
Income after financial items | (642) | ||
Net income and total comprehensive income | (642) | ||
Company's share of net income and other comprehensive income | kr (137) |
Financial Assets, Non-curren104
Financial Assets, Non-current - Ericsson's Share of Assets, Liabilities and Income in Associated Company Rockstar Consortium (Parenthetical) (Detail) - Rockstar Consortium LLC [member] | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of financial assets [line items] | |
Percentage of company's share of net assets | 21.26% |
Percentage company's share of net income and other comprehensive income | 21.26% |
Financial Assets, Non-curren105
Financial Assets, Non-current - Additional Information (Detail) - Rockstar Consortium LLC [member] | 12 Months Ended |
Dec. 31, 2017Patent | |
Disclosure of financial assets [line items] | |
Name of Acquiree | Rockstar Consortium LLC (Rockstar) |
Number of patent asset | 4,000 |
Description of acquiree | Rockstar Consortium LLC (Rockstar) is a company that was formed in 2011 by Apple, Blackberry, Ericsson, Microsoft, and Sony to purchase approximately 4,000 patent assets out of the original about 6,000 from the Nortel bankruptcy estate. On December 23, 2014, it was agreed between the owners of Rockstar and RPX Corporation (RPXC) that RPX shall purchase the remaining patents of Rockstar. The transaction occured in 2015 and after that the main part of the capital stock has been distributed to the owners. Rockstar Consortium has concluded its operations. |
Nortel bankruptcy estate [member] | |
Disclosure of financial assets [line items] | |
Number of patent asset | 6,000 |
Financial Assets, Non-curren106
Financial Assets, Non-current - Summary of Financial Assets, Non-current (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other investment in shares and participations [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current | kr 1,279 | kr 1,179 |
Other investment in shares and participations [member] | Cost [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | 2,516 | 2,567 |
Additions | 146 | 133 |
Disposals/repayments/deductions | (43) | (267) |
Revaluation | 99 | 2 |
Translation difference | (50) | 81 |
Financial assets, non-current, Closing balance | 2,668 | 2,516 |
Other investment in shares and participations [member] | Accumulated impairment losses [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | (1,337) | (1,292) |
Impairment losses/allowances | (126) | 37 |
Disposals/repayments/deductions | 25 | (1) |
Translation difference | 49 | (81) |
Financial assets, non-current, Closing balance | (1,389) | (1,337) |
Customer finance, non-current [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current | 2,178 | 2,128 |
Customer finance, non-current [member] | Cost [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | 2,137 | 1,755 |
Additions | 1,788 | 2,704 |
Disposals/repayments/deductions | (1,100) | (2,333) |
Reclassification | (570) | (12) |
Translation difference | (18) | 23 |
Financial assets, non-current, Closing balance | 2,237 | 2,137 |
Customer finance, non-current [member] | Accumulated impairment losses [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | (9) | (16) |
Impairment losses/allowances | (56) | (5) |
Disposals/repayments/deductions | 6 | 12 |
Financial assets, non-current, Closing balance | (59) | (9) |
Interest bearing securities, non-current [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current | 25,105 | 7,586 |
Interest bearing securities, non-current [member] | Cost [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | 7,586 | |
Additions | 54,687 | 7,593 |
Disposals/repayments/deductions | (37,241) | |
Revaluation | 73 | (7) |
Financial assets, non-current, Closing balance | 25,105 | 7,586 |
Derivatives, non-current [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current | 86 | |
Derivatives, non-current [member] | Cost [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | 452 | |
Additions | 86 | |
Reclassification | (452) | |
Financial assets, non-current, Closing balance | 86 | |
Other financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Change in value in funded pension plans | 1,300 | (1,622) |
Other financial assets, non-current [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current | 5,811 | 4,442 |
Other financial assets, non-current [member] | Cost [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | 4,648 | 5,365 |
Additions | 503 | 785 |
Disposals/repayments/deductions | (375) | (187) |
Revaluation | 27 | 62 |
Translation difference | (169) | 245 |
Financial assets, non-current, Closing balance | 5,934 | 4,648 |
Other financial assets, non-current [member] | Accumulated impairment losses [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | (206) | (183) |
Impairment losses/allowances | (1) | (1) |
Disposals/repayments/deductions | 77 | (1) |
Translation difference | 7 | (21) |
Financial assets, non-current, Closing balance | kr (123) | kr (206) |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of inventories [abstract] | ||
Raw materials, components, consumables and manufacturing work in progress | kr 4,015 | kr 5,043 |
Finished products and goods for resale | 8,864 | 12,183 |
Contract work in progress | 12,081 | 13,081 |
Inventories, net | kr 24,960 | kr 30,307 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of inventories [abstract] | ||||
Inventories, excluding contract work in progress, recognized as expense | kr 58,901 | kr 63,386 | ||
Inventory obsolescence allowances | kr 2,425 | kr 2,412 | kr 2,555 | kr 2,326 |
Inventories - Movements in Obso
Inventories - Movements in Obsolescence Allowances (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of inventories [abstract] | |||
Inventory obsolescence allowances, Opening balance | kr 2,412 | kr 2,555 | kr 2,326 |
Additions, net | 1,319 | 725 | 1,480 |
Utilization | (1,210) | (981) | (1,295) |
Translation difference | (91) | 113 | 44 |
Balances regarding acquired/divested businesses | (5) | ||
Inventory obsolescence allowances, Closing balance | kr 2,425 | kr 2,412 | kr 2,555 |
Trade Receivables and Customer
Trade Receivables and Customer Finance - Summary of Trade Receivables and Customer Finance (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of trade receivables and customer finance [abstract] | ||
Trade receivables excluding associated companies and joint ventures | kr 66,487 | kr 69,430 |
Allowances for impairment | (3,335) | (1,403) |
Trade receivables, net | 63,152 | 68,027 |
Trade receivables related to associated companies and joint ventures | 58 | 90 |
Trade receivables, total | 63,210 | 68,117 |
Customer finance credits | 4,223 | 5,003 |
Allowances for impairment | (292) | (250) |
Customer finance credits, net | 3,931 | 4,753 |
Of which current | 1,753 | 2,625 |
Credit commitments for customer finance | kr 9,706 | kr 13,082 |
Trade Receivables and Custom111
Trade Receivables and Customer Finance - Additional Information (Detail) kr in Millions | 12 Months Ended | |
Dec. 31, 2017SEK (kr)RiskRatingCustomerFacilitiesAgreement | Dec. 31, 2016SEK (kr)Agreement | |
Disclosure Of trade receivables and customer finance [line items] | ||
Number of days sales outstanding | 101 days | 95 days |
Number of risk categories | RiskRating | 3 | |
Trade receivables | kr 66,487 | kr 69,430 |
Provisions for expected losses | 3,335 | 1,403 |
Outstanding exposure related to customer finance | 4,223 | 5,003 |
Unutilized customer finance commitments | 9,706 | 13,082 |
Negative impact from effect of risk provisions and reversals for customer finance | 59 | |
Positive impact from effect of risk provisions and reversals for customer finance | 24 | |
Credit losses | 24 | 108 |
Repurchase of these assets would amount | 380 | 630 |
Credit risk [member] | ||
Disclosure Of trade receivables and customer finance [line items] | ||
Trade receivables | 66,487 | 69,430 |
Provisions for expected losses | kr 3,335 | kr 1,403 |
Number of largest customers | Customer | 5 | |
Percentage of amount represented by customer | 19.00% | 27.00% |
Customer finance credits risk [member] | ||
Disclosure Of trade receivables and customer finance [line items] | ||
Outstanding exposure related to customer finance | kr 4,223 | kr 5,003 |
Unutilized customer finance commitments | kr 9,706 | kr 13,082 |
Number of customer finance arrangement guaranteed | Agreement | 79 | 81 |
Number of largest facilities | Facilities | 5 | |
Percentage of risk represented by facilities | 64.00% | 55.00% |
Trade Receivables and Custom112
Trade Receivables and Customer Finance - Summary of Movements in Allowances for Impairment (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of trade receivables and customer finance allowance for impairment [line items] | ||
Opening balance | kr 1,403 | |
Closing balance | 3,335 | kr 1,403 |
Trade receivables [member] | ||
Disclosure of trade receivables and customer finance allowance for impairment [line items] | ||
Opening balance | 1,403 | 1,202 |
Additions | 3,544 | 356 |
Utilized | (1,485) | (156) |
Reversal of excess amounts | (48) | (28) |
Reclassification | (66) | |
Translation difference | (13) | 29 |
Closing balance | 3,335 | 1,403 |
Customer finance [member] | ||
Disclosure of trade receivables and customer finance allowance for impairment [line items] | ||
Opening balance | 250 | 286 |
Additions | 85 | 78 |
Utilized | (3) | (108) |
Reversal of excess amounts | (27) | (8) |
Translation difference | (13) | 2 |
Closing balance | kr 292 | kr 250 |
Trade Receivables and Custom113
Trade Receivables and Customer Finance - Summary of Aging Analysis (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Aging analysis of trade receivables [line items] | ||
Trade receivables, excluding associated companies and joint ventures | kr 66,487 | kr 69,430 |
Allowances for impairment | (3,335) | (1,403) |
Customer finance credits | 4,223 | 5,003 |
Allowances for impairment | (292) | (250) |
Neither impaired nor past due [member] | ||
Aging analysis of trade receivables [line items] | ||
Trade receivables, excluding associated companies and joint ventures | 56,059 | 58,198 |
Customer finance credits | 1,841 | 3,250 |
Impaired nor past due [member] | ||
Aging analysis of trade receivables [line items] | ||
Trade receivables, excluding associated companies and joint ventures | 15 | 62 |
Allowances for impairment | (15) | (62) |
Customer finance credits | 2,029 | 1,480 |
Allowances for impairment | (104) | (64) |
Past due and impaired less than 90 days [member] | ||
Aging analysis of trade receivables [line items] | ||
Trade receivables, excluding associated companies and joint ventures | 220 | 10 |
Allowances for impairment | (220) | (10) |
Customer finance credits | 29 | 24 |
Allowances for impairment | (20) | (6) |
Past due and impaired more than 90 days [member] | ||
Aging analysis of trade receivables [line items] | ||
Trade receivables, excluding associated companies and joint ventures | 3,100 | 1,331 |
Allowances for impairment | (3,100) | (1,331) |
Customer finance credits | 221 | 236 |
Allowances for impairment | (168) | (180) |
Maturity within 3 months [member] | ||
Aging analysis of trade receivables [line items] | ||
Trade receivables, excluding associated companies and joint ventures | 2,924 | 4,406 |
Customer finance credits | 4 | 10 |
Later than three months [member] | ||
Aging analysis of trade receivables [line items] | ||
Trade receivables, excluding associated companies and joint ventures | 4,169 | 5,423 |
Customer finance credits | kr 99 | kr 3 |
Trade Receivables and Custom114
Trade Receivables and Customer Finance - Summary of Total Outstanding Customer Finance Exposure Per Market Area (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of outstanding customer finance per market area [line items] | ||
Percentage of outstanding customer finance | 100.00% | 100.00% |
South East Asia, Oceania and India [member] | ||
Disclosure of outstanding customer finance per market area [line items] | ||
Percentage of outstanding customer finance | 24.00% | 17.00% |
North America [member] | ||
Disclosure of outstanding customer finance per market area [line items] | ||
Percentage of outstanding customer finance | 7.00% | 7.00% |
Europe and Latin America [member] | ||
Disclosure of outstanding customer finance per market area [line items] | ||
Percentage of outstanding customer finance | 12.00% | 19.00% |
Middle East and Africa [member] | ||
Disclosure of outstanding customer finance per market area [line items] | ||
Percentage of outstanding customer finance | 56.00% | 56.00% |
Other [member] | ||
Disclosure of outstanding customer finance per market area [line items] | ||
Percentage of outstanding customer finance | 1.00% | 1.00% |
Trade Receivables and Custom115
Trade Receivables and Customer Finance - Summary of Outstanding Customer Finance (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of outstanding customer finance [abstract] | ||
Customer finance credits | kr 4,223 | kr 5,003 |
Financial guarantees for third-parties | 77 | 124 |
Accrued interest | 14 | 16 |
Less third-party risk coverage | (505) | (805) |
Ericsson's risk exposure, including financial guarantees | kr 3,809 | kr 4,338 |
Other Current Receivables - Sum
Other Current Receivables - Summary of Other Current Receivables (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of other current receivables [line items] | ||
Total other current receivables | kr 22,300 | kr 24,431 |
Prepaid expenses [member] | ||
Disclosure of other current receivables [line items] | ||
Total other current receivables | 2,546 | 4,501 |
Accrued revenues [member] | ||
Disclosure of other current receivables [line items] | ||
Total other current receivables | 1,342 | 1,584 |
Advance payments to suppliers [member] | ||
Disclosure of other current receivables [line items] | ||
Total other current receivables | 338 | 1,384 |
Derivatives with a positive value [member] | ||
Disclosure of other current receivables [line items] | ||
Total other current receivables | 1,207 | 1,108 |
Taxes [member] | ||
Disclosure of other current receivables [line items] | ||
Total other current receivables | 15,291 | 13,974 |
Others [member] | ||
Disclosure of other current receivables [line items] | ||
Total other current receivables | kr 1,576 | kr 1,880 |
Equity and other comprehensive
Equity and other comprehensive income (loss) - Summary of Capital Stock (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of classes of share capital [line items] | ||||
Number of shares | 3,334,151,735 | 3,331,151,735 | ||
Capital stock | kr 100,176 | kr 140,492 | kr 147,366 | kr 145,309 |
Class A shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 261,755,983 | |||
Class B shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 3,072,395,752 | |||
Capital stock [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Capital stock | kr 16,672 | kr 16,657 | kr 16,526 | kr 16,526 |
Capital stock [member] | Class A shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Capital stock | 1,309 | |||
Capital stock [member] | Class B shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Capital stock | kr 15,363 |
Equity and other comprehensi118
Equity and other comprehensive income (loss) - Additional Information (Detail) - kr / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of classes of share capital [line items] | ||||
Dividend proposed | kr 1 | kr 3.70 | ||
Major ordinary share transactions [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Dividend proposed | kr 1 | |||
Stock Purchase Plan [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Repurchase of shares | 3,000,000 | |||
Class A shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Shares quota value | kr 5 | |||
Voting rights of share holders | One vote per share | |||
Class B shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Shares quota value | kr 5 | |||
Voting rights of share holders | One tenth of one vote per share | |||
Treasury shares | 50,265,499 | 62,192,390 | 49,367,641 |
Equity and other comprehensi119
Equity and other comprehensive income (loss) - Summary of Reconciliation of Number of Shares (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Reconciliation of number of shares outstanding [line items] | ||||
Number of shares | 3,334,151,735 | 3,331,151,735 | ||
Equity | kr 100,176 | kr 140,492 | kr 147,366 | kr 145,309 |
Capital stock [member] | ||||
Reconciliation of number of shares outstanding [line items] | ||||
Equity | kr 16,672 | kr 16,657 | kr 16,526 | kr 16,526 |
Post-Employment Benefits - Addi
Post-Employment Benefits - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of employee benefits [Line Items] | ||
Actuarial losses on defined benefit obligations | kr 2,110 | kr 8,255 |
Actuarial gains development of plan assets | kr 2,438 | kr 4,280 |
Percentage Alecta's of collective funding ratio | 154.00% | 149.00% |
Percentage of company's share of Alecta's saving premiums | 0.50% | |
Percentage of maximum pension liability relation to PRI pensionsgaranti | 2.00% | |
Amount of pledged business mortgage | kr 4,500 | |
Description of terms and conditions of financial assets pledged as collateral for liabilities or contingent liabilities | Contingent liabilities include the Company's mutual responsibility as a credit insured company of PRI Pensionsgaranti in Sweden. This mutual responsibility can only be imposed in the instance that PRI Pensions-garanti has consumed all of its assets, and it amounts to a maximum of 2% of the Company's pension liability in Sweden. The Company has a pledged business mortgage of SEK 2 billion to PRI Pensionsgaranti. | |
Alecta [member] | ||
Disclosure of employee benefits [Line Items] | ||
Percentage of total share of active members in Alecta | 2.00% | |
Expected contribution to Alectas plan | kr 94 | |
Bottom of range [member] | ||
Disclosure of employee benefits [Line Items] | ||
Percentage of target ratio fair value plan assets | 140.00% | |
Ericsson Pensionsstiftelse [member] | ||
Disclosure of employee benefits [Line Items] | ||
Percentage of defined benefit plans | 53.00% | 55.00% |
Post-Employment Benefits - Summ
Post-Employment Benefits - Summary of Amount Recognized in the Consolidated Balance Sheet (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [line items] | ||
Defined benefit obligation (DBO) | kr 87,645 | kr 87,175 |
Fair value of plan assets | 64,939 | 64,485 |
Deficit/surplus (+/-) | 22,706 | 22,690 |
Plans with net surplus, excluding asset ceiling1) | 2,303 | 1,033 |
Provision for post-employment benefits2) | 25,009 | 23,723 |
Sweden [member] | ||
Disclosure of defined benefit plans [line items] | ||
Defined benefit obligation (DBO) | 41,166 | 38,202 |
Fair value of plan assets | 21,938 | 20,956 |
Deficit/surplus (+/-) | 19,228 | 17,246 |
Provision for post-employment benefits2) | 19,228 | 17,246 |
US [member] | ||
Disclosure of defined benefit plans [line items] | ||
Defined benefit obligation (DBO) | 21,005 | 22,710 |
Fair value of plan assets | 20,402 | 21,545 |
Deficit/surplus (+/-) | 603 | 1,165 |
Plans with net surplus, excluding asset ceiling1) | 83 | |
Provision for post-employment benefits2) | 686 | 1,165 |
UNITED KINGDOM | ||
Disclosure of defined benefit plans [line items] | ||
Defined benefit obligation (DBO) | 13,246 | 14,088 |
Fair value of plan assets | 14,599 | 14,061 |
Deficit/surplus (+/-) | (1,353) | 27 |
Plans with net surplus, excluding asset ceiling1) | 1,685 | 481 |
Provision for post-employment benefits2) | 332 | 508 |
Other Countries [member] | ||
Disclosure of defined benefit plans [line items] | ||
Defined benefit obligation (DBO) | 12,228 | 12,175 |
Fair value of plan assets | 8,000 | 7,923 |
Deficit/surplus (+/-) | 4,228 | 4,252 |
Plans with net surplus, excluding asset ceiling1) | 535 | 552 |
Provision for post-employment benefits2) | kr 4,763 | kr 4,804 |
Post-Employment Benefits - S122
Post-Employment Benefits - Summary of Amount Recognized in the Consolidated Balance Sheet (Parenthetical) (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of defined benefit plans [abstract] | ||
Movements in effect of asset ceiling | kr 30 | |
Effect of asset ceiling | kr 454 | kr 484 |
Post-Employment Benefits - S123
Post-Employment Benefits - Summary of Pension Costs for Defined Contribution Plans and Defined Benefit Plans (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [Line Items] | |||
Pension cost for defined contribution plans | kr 2,970 | kr 3,220 | kr 3,240 |
Pension cost for defined benefit plans | 2,622 | 2,114 | 2,553 |
Total | kr 5,592 | kr 5,334 | kr 5,793 |
Total pension cost expressed as a percentage of wages and salaries | 9.50% | 8.90% | 9.50% |
Sweden [member] | |||
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [Line Items] | |||
Pension cost for defined contribution plans | kr 1,096 | kr 1,061 | kr 1,136 |
Pension cost for defined benefit plans | 1,824 | 1,314 | 1,806 |
Total | 2,920 | 2,375 | 2,942 |
US [member] | |||
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [Line Items] | |||
Pension cost for defined contribution plans | 473 | 687 | 729 |
Pension cost for defined benefit plans | 168 | 167 | 81 |
Total | 641 | 854 | 810 |
UNITED KINGDOM | |||
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [Line Items] | |||
Pension cost for defined contribution plans | 173 | 185 | 136 |
Pension cost for defined benefit plans | 38 | 38 | 57 |
Total | 211 | 223 | 193 |
Other Countries [member] | |||
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [Line Items] | |||
Pension cost for defined contribution plans | 1,228 | 1,287 | 1,239 |
Pension cost for defined benefit plans | 592 | 595 | 609 |
Total | kr 1,820 | kr 1,882 | kr 1,848 |
Post-Employment Benefits - S124
Post-Employment Benefits - Summary of Change in the Net Defined Benefit Obligation (Detail) kr in Millions | 12 Months Ended | |
Dec. 31, 2017SEK (kr)yr | Dec. 31, 2016SEK (kr) | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Opening balance | kr 22,690 | kr 19,963 |
Included in the income statement | ||
Current service cost | 1,793 | 1,853 |
Past service cost and gains and losses on settlements | 296 | (182) |
Interest cost/income (+/-) | 306 | 275 |
Taxes and administrative expenses | 188 | 102 |
Other | (11) | (14) |
Components of defined benefit cost recognized | 2,572 | 2,034 |
Remeasurements | ||
Return on plan assets excluding amounts in interest expense/income | (2,438) | (4,280) |
Actuarial gains/losses (-/+) arising from changes in demographic assumptions | (396) | (405) |
Actuarial gains/losses (-/+) arising from changes in financial assumptions | 2,110 | 8,255 |
Experience-based gains/losses (-/+) | (219) | (1,550) |
Total remeasurements | (943) | 2,020 |
Translation difference | (12) | 168 |
Contributions and payments from: | ||
Employers1 | (1,463) | (1,464) |
Plan participants | 4 | 6 |
Settlements | (141) | |
Business combinations and divestments | (37) | |
Closing balance | kr 22,706 | 22,690 |
Weighted average duration of DBO | yr | 20.1 | |
Asset ceiling excluded from defined benefit cost recognized in income statement | kr 50 | 80 |
2018 [member] | ||
Contributions and payments from: | ||
Expected contribution to plans | 1,364 | |
Present value of defined benefit obligation [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Opening balance | 87,175 | 78,141 |
Reclassification | 104 | |
Included in the income statement | ||
Current service cost | 1,793 | 1,853 |
Past service cost and gains and losses on settlements | 296 | (182) |
Interest cost/income (+/-) | 2,198 | 2,451 |
Taxes and administrative expenses | 143 | 53 |
Other | (13) | (16) |
Components of defined benefit cost recognized | 4,417 | 4,159 |
Remeasurements | ||
Actuarial gains/losses (-/+) arising from changes in demographic assumptions | (396) | (405) |
Actuarial gains/losses (-/+) arising from changes in financial assumptions | 2,110 | 8,255 |
Experience-based gains/losses (-/+) | (219) | (1,550) |
Total remeasurements | 1,495 | 6,300 |
Translation difference | (2,275) | 1,002 |
Contributions and payments from: | ||
Employers1 | (880) | (902) |
Plan participants | 27 | 28 |
Benefit payments | (2,173) | (1,568) |
Settlements | (141) | |
Business combinations and divestments | (89) | |
Closing balance | 87,645 | 87,175 |
Plan assets [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Opening balance | (64,485) | (58,178) |
Reclassification | (104) | |
Included in the income statement | ||
Interest cost/income (+/-) | (1,892) | (2,176) |
Taxes and administrative expenses | 45 | 49 |
Other | 2 | 2 |
Components of defined benefit cost recognized | (1,845) | (2,125) |
Remeasurements | ||
Return on plan assets excluding amounts in interest expense/income | (2,438) | (4,280) |
Total remeasurements | (2,438) | (4,280) |
Translation difference | 2,262 | (834) |
Contributions and payments from: | ||
Employers1 | (583) | (562) |
Plan participants | (23) | (22) |
Benefit payments | 2,173 | 1,568 |
Business combinations and divestments | 52 | |
Closing balance | kr (64,939) | kr (64,485) |
Post-Employment Benefits - S125
Post-Employment Benefits - Summary of Present Value of the Defined Benefit Obligation (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | kr 87,645 | kr 87,175 |
Partially or fully funded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | 83,695 | 83,084 |
Unfunded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | 3,950 | 4,091 |
Sweden [member] | ||
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | 41,166 | 38,202 |
Sweden [member] | Partially or fully funded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | 40,665 | 37,679 |
Sweden [member] | Unfunded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | 501 | 523 |
US [member] | ||
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | 21,005 | 22,710 |
US [member] | Partially or fully funded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | 20,319 | 21,956 |
US [member] | Unfunded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | 686 | 754 |
UNITED KINGDOM | ||
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | 13,246 | 14,088 |
UNITED KINGDOM | Partially or fully funded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | 13,246 | 14,088 |
Other Countries [member] | ||
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | 12,228 | 12,175 |
Other Countries [member] | Partially or fully funded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | 9,465 | 9,361 |
Other Countries [member] | Unfunded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [Line Items] | ||
Defined benefit obligation (DBO) | kr 2,763 | kr 2,814 |
Post-Employment Benefits - S126
Post-Employment Benefits - Summary of Asset Allocation by Asset Type and Geography (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | kr 4,428 | kr 3,026 |
Equity securities | 10,422 | 8,870 |
Debt securities | 39,138 | 40,975 |
Real estate | 4,725 | 4,423 |
Investment funds | 3,649 | 4,251 |
Assets held by insurance company | 1,200 | 1,125 |
Other | 1,377 | 1,815 |
Fair value of plan assets | kr 64,939 | kr 64,485 |
Investment funds [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 66.00% | 65.00% |
Real estate occupied [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | kr 0 | kr 0 |
Securitites issued [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 0 | 0 |
Sweden [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | 3,124 | 1,819 |
Equity securities | 4,079 | 3,983 |
Debt securities | 8,663 | 8,791 |
Real estate | 4,269 | 4,093 |
Investment funds | 1,803 | 2,270 |
Fair value of plan assets | 21,938 | 20,956 |
Sweden [member] | Real estate occupied [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 0 | 0 |
Sweden [member] | Securitites issued [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 0 | 0 |
US [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | 382 | 414 |
Equity securities | 795 | 692 |
Debt securities | 17,650 | 18,286 |
Investment funds | 1,478 | 1,505 |
Other | 97 | 648 |
Fair value of plan assets | 20,402 | 21,545 |
US [member] | Real estate occupied [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 0 | 0 |
US [member] | Securitites issued [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 0 | 0 |
UNITED KINGDOM | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | 834 | 420 |
Equity securities | 3,116 | 2,526 |
Debt securities | 9,331 | 10,010 |
Real estate | 244 | 132 |
Investment funds | 160 | 270 |
Other | 914 | 703 |
Fair value of plan assets | 14,599 | 14,061 |
UNITED KINGDOM | Real estate occupied [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 0 | 0 |
UNITED KINGDOM | Securitites issued [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 0 | 0 |
Other Countries [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | 88 | 373 |
Equity securities | 2,432 | 1,669 |
Debt securities | 3,494 | 3,888 |
Real estate | 212 | 198 |
Investment funds | 208 | 206 |
Assets held by insurance company | 1,200 | 1,125 |
Other | 366 | 464 |
Fair value of plan assets | 8,000 | 7,923 |
Other Countries [member] | Real estate occupied [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 0 | 0 |
Other Countries [member] | Securitites issued [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | kr 0 | kr 0 |
Cash and cash equivalents [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 0.00% | 14.00% |
Equity securities [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 16.00% | 19.00% |
Debt securities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 68.00% | 70.00% |
Real estate [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 100.00% | 100.00% |
Assets held by insurance company [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 100.00% | 100.00% |
Other [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 41.00% | 69.00% |
Post-Employment Benefits - S127
Post-Employment Benefits - Summary of Financial and Demographic Actuarial Assumptions (Detail) - yr | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assumptions | ||
Discount rate, weighted average of Total | 2.50% | 2.80% |
Demographic assumptions | ||
Life expectancy after age 65 in years, weighted average | 23 | 23 |
Sweden [member] | ||
Financial assumptions | ||
Discount rate, weighted average of Total | 1.60% | 1.80% |
US [member] | ||
Financial assumptions | ||
Discount rate, weighted average of Total | 3.70% | 4.10% |
UNITED KINGDOM | ||
Financial assumptions | ||
Discount rate, weighted average of Total | 2.60% | 2.70% |
Post-employment Benefits - S128
Post-employment Benefits - Summary of Total Remeasurements in Other Comprehensive Income (Loss) Related to Post-Employment Benefits (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Remeasurement of Other Comprehensive Income Loss Related to Post Employment Benefits [abstract] | |||
Actuarial gains and losses (+/-) | kr 1,210 | kr (1,955) | |
The effect of asset ceiling | 27 | 254 | |
Swedish special payroll taxes 1) | (267) | (65) | |
Total | kr 970 | kr (1,766) | kr (2,026) |
Post-Employment Benefits - S129
Post-Employment Benefits - Summary of Sensitivity Analysis of Significant Actuarial Assumptions (Detail) - Present value of defined benefit obligation [member] - SEK (kr) kr in Billions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate, weighted average of Total +0.5% | kr (8.1) | kr (8.3) |
Discount rate, weighted average of Total -0.5% | 9.3 | 9.4 |
Sweden [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate, weighted average of Total +0.5% | (4.5) | (4.3) |
Discount rate, weighted average of Total -0.5% | 5.2 | 5 |
US [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate, weighted average of Total +0.5% | (1.1) | (1.3) |
Discount rate, weighted average of Total -0.5% | 1.2 | 1.3 |
UNITED KINGDOM | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate, weighted average of Total +0.5% | (1.5) | (1.7) |
Discount rate, weighted average of Total -0.5% | kr 1.8 | kr 1.9 |
Provisions - Summary of Provisi
Provisions - Summary of Provisions (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Changes In Provisions [Line Items] | ||
Opening balance | kr 6,357 | kr 3,838 |
Additions | 12,479 | 6,346 |
Reversal of excess amounts | (362) | (689) |
Negative effect on Income statement | 12,117 | 5,657 |
Utilization/Cash out | (8,221) | (3,153) |
Reclassifications | (113) | (8) |
Translation difference | (194) | 23 |
Closing balance | 9,946 | 6,357 |
Restructuring [member] | ||
Disclosure Of Changes In Provisions [Line Items] | ||
Opening balance | 4,163 | 1,466 |
Additions | 5,448 | 5,271 |
Reversal of excess amounts | (207) | (130) |
Utilization/Cash out | (5,327) | (2,440) |
Reclassifications | 1 | 1 |
Translation difference | (35) | (5) |
Closing balance | 4,043 | 4,163 |
Customer Related Provision [member] | ||
Disclosure Of Changes In Provisions [Line Items] | ||
Opening balance | 74 | 92 |
Additions | 4,105 | 51 |
Reversal of excess amounts | 0 | (6) |
Utilization/Cash out | (1,532) | (64) |
Reclassifications | (10) | (3) |
Translation difference | 5 | 4 |
Closing balance | 2,642 | 74 |
Suppliers Related Provision [member] | ||
Disclosure Of Changes In Provisions [Line Items] | ||
Opening balance | 134 | 182 |
Additions | 1,885 | 82 |
Reversal of excess amounts | (90) | (69) |
Utilization/Cash out | (262) | (64) |
Reclassifications | (50) | |
Translation difference | (4) | 3 |
Closing balance | 1,613 | 134 |
Warranty [member] | ||
Disclosure Of Changes In Provisions [Line Items] | ||
Opening balance | 248 | 528 |
Additions | 242 | 267 |
Reversal of excess amounts | (2) | (207) |
Utilization/Cash out | (267) | (365) |
Reclassifications | 5 | 9 |
Translation difference | (1) | 16 |
Closing balance | 225 | 248 |
Other [member] | ||
Disclosure Of Changes In Provisions [Line Items] | ||
Opening balance | 1,738 | 1,570 |
Additions | 799 | 675 |
Reversal of excess amounts | (63) | (277) |
Utilization/Cash out | (833) | (220) |
Reclassifications | (59) | (15) |
Translation difference | (159) | 5 |
Closing balance | kr 1,423 | kr 1,738 |
Provisions - Additional Informa
Provisions - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Provisions [Line Items] | |||
Additional provisions | kr 12,479 | kr 6,346 | |
Reversal of excess amounts | (362) | (689) | |
Actual cash outlays | (8,221) | (3,153) | |
Estimated cash outlays | (4,400) | ||
Non-current provisions | 3,596 | 946 | |
Total provisions | 9,946 | 6,357 | kr 3,838 |
Suppliers Related Provision [member] | |||
Disclosure of Provisions [Line Items] | |||
Additional provisions | 1,885 | 82 | |
Reversal of excess amounts | (90) | (69) | |
Actual cash outlays | (262) | (64) | |
Estimated cash outlays | (100) | ||
Total provisions | 1,613 | 134 | 182 |
Restructuring [member] | |||
Disclosure of Provisions [Line Items] | |||
Additional provisions | 5,448 | 5,271 | |
Reversal of excess amounts | (207) | (130) | |
Actual cash outlays | (5,327) | (2,440) | |
Estimated cash outlays | (3,200) | ||
Total provisions | 4,043 | 4,163 | 1,466 |
Customer Related Provision [member] | |||
Disclosure of Provisions [Line Items] | |||
Additional provisions | 4,105 | 51 | |
Reversal of excess amounts | 0 | (6) | |
Actual cash outlays | (1,532) | (64) | |
Total provisions | 2,642 | 74 | 92 |
Customer Related Provision [member] | Additional project costs and customer settlements [member] | |||
Disclosure of Provisions [Line Items] | |||
Additional provisions | 4,105 | ||
Warranty [member] | |||
Disclosure of Provisions [Line Items] | |||
Additional provisions | 242 | 267 | |
Reversal of excess amounts | (2) | (207) | |
Actual cash outlays | (267) | (365) | |
Estimated cash outlays | (100) | ||
Total provisions | 225 | 248 | 528 |
Other [member] | |||
Disclosure of Provisions [Line Items] | |||
Additional provisions | 799 | 675 | |
Reversal of excess amounts | (63) | (277) | |
Actual cash outlays | (833) | (220) | |
Estimated cash outlays | (1,000) | ||
Total provisions | 1,423 | kr 1,738 | kr 1,570 |
2018 [member] | |||
Disclosure of Provisions [Line Items] | |||
Estimated cash outlays | (6,000) | ||
2018 [member] | Suppliers Related Provision [member] | |||
Disclosure of Provisions [Line Items] | |||
Estimated cash outlays | (200) | ||
2018 [member] | Restructuring [member] | |||
Disclosure of Provisions [Line Items] | |||
Estimated cash outlays | (3,000) | ||
2018 [member] | Customer Related Provision [member] | |||
Disclosure of Provisions [Line Items] | |||
Estimated cash outlays | (1,900) | ||
2018 [member] | Warranty [member] | |||
Disclosure of Provisions [Line Items] | |||
Estimated cash outlays | (200) | ||
2018 [member] | Other [member] | |||
Disclosure of Provisions [Line Items] | |||
Estimated cash outlays | kr (700) |
Interest-Bearing Liabilities -
Interest-Bearing Liabilities - Summary of Interest-Bearing Liabilities (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Borrowings, current | ||
Current part of non-currentborrowings1) | kr 89 | kr 4,954 |
Other borrowings, current | 2,456 | 3,079 |
Total borrowings, current | 2,545 | 8,033 |
Borrowings, non-current | ||
Notes and bond loans | 20,560 | 10,556 |
Other borrowings, non-current | 9,940 | 8,097 |
Total borrowings, non-current | 30,500 | 18,653 |
Total interest-bearing liabilities | kr 33,045 | kr 26,686 |
Interest-Bearing Liabilities133
Interest-Bearing Liabilities - Summary of Interest-Bearing Liabilities (Parenthetical) (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Borrowings [Abstract] | ||
Notes and bond loans | kr 0 | kr 4,900 |
Interest-bearing Liabilities134
Interest-bearing Liabilities - Additional Information (Detail) € in Millions, kr in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017SEK (kr) | Dec. 31, 2016SEK (kr) | Dec. 31, 2015SEK (kr) | Dec. 31, 2017SEK (kr) | Apr. 30, 2017USD ($) | Feb. 28, 2017EUR (€) | |
Disclosure Of Interest Bearing Liabilities [Line Items] | ||||||||
Weighted average interest rate cost for long-term funding | 1.68% | 1.68% | 2.76% | |||||
Multi-currency revolving credit facility | $ 2,000 | |||||||
Borrowings | kr | kr 26,686 | kr 33,045 | ||||||
Maturity date | Credit agreements mature in 2023 and 2025 | Credit agreements mature in 2023 and 2025 | ||||||
Repayment of borrowings | kr | kr 4,830 | kr 1,072 | kr 1,336 | |||||
Nordic Investment Bank [member] | ||||||||
Disclosure Of Interest Bearing Liabilities [Line Items] | ||||||||
Borrowings | $ 220 | |||||||
AB Svensk Exportkredit [member] | ||||||||
Disclosure Of Interest Bearing Liabilities [Line Items] | ||||||||
Borrowings | 150 | |||||||
Mature in two thousand nineteen [member] | ||||||||
Disclosure Of Interest Bearing Liabilities [Line Items] | ||||||||
Repayment of borrowings | $ 98 | |||||||
Bond issued in two thousand seven [member] | ||||||||
Disclosure Of Interest Bearing Liabilities [Line Items] | ||||||||
Repayment of borrowings | € | € 500 | |||||||
Bonds with 0.875% interest maturing 2021 [member] | ||||||||
Disclosure Of Interest Bearing Liabilities [Line Items] | ||||||||
Bonds issued | € | € 500 | |||||||
Bonds with 1.875% interest maturing 2024 [member] | ||||||||
Disclosure Of Interest Bearing Liabilities [Line Items] | ||||||||
Bonds issued | € | € 500 |
Interest-bearing Liabilities135
Interest-bearing Liabilities - Summary of Notes, Bonds, Bilateral Loans and Committed Credit (Detail) - 12 months ended Dec. 31, 2017 € in Millions, kr in Millions, $ in Millions | SEK (kr) | EUR (€) | USD ($) | SEK (kr) |
Disclosure of Borrowings [Line Items] | ||||
Maturity date | Credit agreements mature in 2023 and 2025 | |||
June Five Two Thousand Twenty Two [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | $ | $ 2,000 | |||
Currency | USD | |||
Maturity date | June 5, 2022 | |||
Notes and bond loans [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Book value | kr 20,560 | |||
Market value | kr 20,813 | |||
Unrealized hedge gain/loss (included in book value) | kr 9 | |||
Notes and bond loans [Member] | December 23, 2020 [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | $ | 170 | |||
Currency | USD | |||
Book value | kr 1,394 | |||
Market value | kr 1,488 | |||
Maturity date | December 23, 2020 | |||
Notes and bond loans [Member] | May 15, 2022 [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | $ | $ 1,000 | |||
Coupon | 4.125% | 4.125% | 4.125% | |
Currency | USD | |||
Book value | kr 8,180 | |||
Market value | kr 8,223 | |||
Maturity date | May 15, 2022 | |||
Unrealized hedge gain/loss (included in book value) | kr 9 | |||
Notes and bond loans [Member] | March One Two Thousand Twenty One [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | € | € 500 | |||
Coupon | 0.875% | 0.875% | 0.875% | |
Currency | EUR | |||
Book value | kr 4,897 | |||
Market value | kr 4,846 | |||
Maturity date | March 1, 2021 | |||
Unrealized hedge gain/loss (included in book value) | kr 7 | |||
Notes and bond loans [Member] | March one two thousand twenty four [member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | € | € 500 | |||
Coupon | 1.875% | 1.875% | 1.875% | |
Currency | EUR | |||
Book value | kr 4,862 | |||
Market value | kr 4,824 | |||
Maturity date | March 1, 2024 | |||
Unrealized hedge gain/loss (included in book value) | kr (7) | |||
Notes and bond loans [Member] | December Twenty Two Two Thousand Twenty Five [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | $ | $ 150 | |||
Currency | USD | |||
Book value | 1,227 | |||
Market value | kr 1,432 | |||
Maturity date | December 22, 2025 | |||
Bilateral loans [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Book value | 8,211 | |||
Market value | kr 8,526 | |||
Bilateral loans [Member] | September 30, 2021 [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | $ | 98 | |||
Currency | USD | |||
Book value | 805 | |||
Market value | kr 830 | |||
Maturity date | September 30, 2021 | |||
Bilateral loans [Member] | November 6, 2020 [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | $ | 684 | |||
Currency | USD | |||
Book value | 5,609 | |||
Market value | kr 5,724 | |||
Maturity date | November 6, 2020 | |||
Bilateral loans [Member] | June Fifteen Two Thousand Twenty Three [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | $ | $ 220 | |||
Currency | USD | |||
Book value | kr 1,797 | |||
Market value | kr 1,972 | |||
Maturity date | June 15, 2023 |
Financial Risk Management and F
Financial Risk Management and Financial Instruments - Additional Information (Detail) - SEK (kr) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Financial Risk Management [Line Items] | ||
Percentage of equity ratio above | 40.00% | |
Percentage of cash conversion rate above | 70.00% | |
Percentage of Currency Hedged | 84.00% | |
Cash position | kr 34,700,000,000 | kr 31,200,000,000 |
Cash, cash equivalents and interest-bearing securities | 67,700,000,000 | 57,900,000,000 |
Interest-bearing liabilities | 33,045,000,000 | 26,686,000,000 |
Maximum foreign exchange positions | kr 45,000,000 | |
Percentage of risk at confidence level | 99.00% | |
Description of Sensitivity analysis | The Company uses the VaR methodology to measure foreign exchange and interest rate risks in portfolios managed by the treasury function. This statistical method expresses the maximum potential loss that can arise with a certain degree of probability during a certain period of time. For the VaR measurement, the Company has chosen a probability level of 99% and a 1-day time horizon. | |
Percentage of probability level | 99.00% | |
Average of value at risk calculated | kr 17,200,000 | 16,300,000 |
Financial investments | kr 1,125,000,000 | |
Sweden, Kronor [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
SEK exchange rate | 0.25 SEK/USD | |
Exchange rate would impact profit and loss | kr 100,000,000 | |
Realization and revaluation of loans amount | 500,000,000 | |
Realization and revaluation of derivative contracts amounts | 0 | |
Level 3 of fair value hierarchy [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Financial investments | 2,100,000,000 | 2,100,000,000 |
ISDA agreements [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Assets | 1,400,000,000 | 1,200,000,000 |
Offsetting financial assets | 100,000,000 | 100,000,000 |
Net asset | 1,300,000,000 | 1,100,000,000 |
Liabilities | 1,000,000,000 | 900,000,000 |
Offsetting financial liabilities | 100,000,000 | 100,000,000 |
Net liabilities | 900,000,000 | 800,000,000 |
Longer than one year [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Interest-bearing securities, current | kr 5,000,000,000 | |
Moody's [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Description of rating agencies used | In October 2017, Moody's announced that they have downgraded the senior unsecured debt ratings to Ba2 from Ba1 and the MTN program rating to Ba2 from Ba1. At the same time, the agency placed the company's Ba2/Ba2 ratings on review for further downgrade. | |
Standard & Poor's [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Description of rating agencies used | In March 2017, Standard & Poor's (S&P) announced that they had downgraded the long-term corporate credit rating on Ericsson to BBB- from BBB, with a negative outlook. | |
Derivatives [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Credit exposure | kr 1,300,000,000 | 1,100,000,000 |
OTC derivatives [member] | Level 2 [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Assets | 1,400,000,000 | 1,200,000,000 |
Liabilities | kr 1,100,000,000 | kr 900,000,000 |
Exchange rate risk [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Description of objectives, policies and processes for managing risk | In order to limit the exposure toward exchange rate fluctuations on future revenues and costs, committed and forecasted future sales and purchases in major currencies are hedged with 7% of 12-month forecast monthly. By this, the Company will have hedged 84% of the next month and 7% of the 12th month of an average forecast of the individual month at any given reporting date. This corresponds to approximately 5-6 months of an average forecast. | |
Interest rate risk [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Description of objectives, policies and processes for managing risk | The Company manages the interest rate risk by matching fixed and floating interest rates in interest-bearing balance sheet items. The policy is that the net sensitivity on a 1 basis point move on interest-bearing assets matching interest-bearing liabilities, taking derivatives into consideration, is less than SEK 10 million. | |
One basis point movement [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Average exposure to interest rate risk | kr 2,100,000 | |
Bottom of range [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Average forecast hedged period | 5 months | |
Top of range [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Average forecast hedged period | 6 months | |
Top of range [member] | One basis point movement [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Derivative financial liabilities | kr 10,000,000 |
Financial Risk Management an137
Financial Risk Management and Financial Instruments - Schedule of Capital objectives-related Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Capital Objectives Related Information [Line Items] | ||||
Capital | kr 100,176 | kr 140,492 | kr 147,366 | kr 145,309 |
Equity ratio | 38.00% | 50.00% | ||
Cash conversion | (58.00%) | 175.00% | ||
Positive net cash | kr 34,700 | kr 31,200 | ||
Post-employment benefits | kr 25,009 | kr 23,723 | ||
Moodys [member] | ||||
Disclosure Of Capital Objectives Related Information [Line Items] | ||||
Moody's | Ba2, negative | Baa3, negative | ||
Standard and Poor's [member] | ||||
Disclosure Of Capital Objectives Related Information [Line Items] | ||||
Moody's | BB+, stable | BBB, negative |
Financial Risk Management an138
Financial Risk Management and Financial Instruments - Summary of Net Exposure for Largest Currencies Impact on Sales (Detail) kr in Billions | 12 Months Ended |
Dec. 31, 2017SEK (kr) | |
USD [member] | |
Disclosure of Currency Exposure [Line Items] | |
Sales transaction exposure | kr 52.4 |
Sales translation exposure | 37.2 |
Sales net exposure | 89.6 |
Incurred cost transaction exposure 1) | (15.3) |
Net transaction exposure | 21.9 |
EUR [member] | |
Disclosure of Currency Exposure [Line Items] | |
Sales transaction exposure | 24.6 |
Sales translation exposure | 13.2 |
Sales net exposure | 37.8 |
Incurred cost transaction exposure 1) | (8.4) |
Net transaction exposure | 4.8 |
CNY [member] | |
Disclosure of Currency Exposure [Line Items] | |
Sales transaction exposure | 13.1 |
Sales translation exposure | (0.2) |
Sales net exposure | 12.9 |
Incurred cost transaction exposure 1) | (6.2) |
Net transaction exposure | (6.4) |
INR [member] | |
Disclosure of Currency Exposure [Line Items] | |
Sales transaction exposure | 9.4 |
Sales translation exposure | 0 |
Sales net exposure | 9.4 |
Incurred cost transaction exposure 1) | (1.6) |
Net transaction exposure | (1.6) |
JPY [member] | |
Disclosure of Currency Exposure [Line Items] | |
Sales transaction exposure | 7.1 |
Sales translation exposure | 0 |
Sales net exposure | 7.1 |
Incurred cost transaction exposure 1) | 4.6 |
Net transaction exposure | 4.6 |
AUD [member] | |
Disclosure of Currency Exposure [Line Items] | |
Sales transaction exposure | 7.1 |
Sales translation exposure | (0.3) |
Sales net exposure | 6.8 |
Incurred cost transaction exposure 1) | 3.3 |
Net transaction exposure | 3 |
BRL [member] | |
Disclosure of Currency Exposure [Line Items] | |
Sales transaction exposure | 5.7 |
Sales translation exposure | 0 |
Sales net exposure | 5.7 |
Incurred cost transaction exposure 1) | 0.7 |
Net transaction exposure | 0.7 |
SAR [member] | |
Disclosure of Currency Exposure [Line Items] | |
Sales transaction exposure | 5.1 |
Sales translation exposure | 0.1 |
Sales net exposure | 5.2 |
Incurred cost transaction exposure 1) | 2.3 |
Net transaction exposure | 2.4 |
GBP [member] | |
Disclosure of Currency Exposure [Line Items] | |
Sales transaction exposure | 5.6 |
Sales translation exposure | (0.9) |
Sales net exposure | 4.7 |
Incurred cost transaction exposure 1) | 0.8 |
Net transaction exposure | kr (0.1) |
Financial Risk Management an139
Financial Risk Management and Financial Instruments - Summary of Sensitivity to Interest Rate Increase of One Basis Point (Detail) kr in Millions | 12 Months Ended |
Dec. 31, 2017SEK (kr) | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | kr (3) |
Interest Bearing Assets [Member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | (8) |
Interest bearing liabilities [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 9 |
Derivatives [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | (4) |
Later than three months [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 0 |
Later than three months [member] | Interest Bearing Assets [Member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 0 |
Later than three months [member] | Interest bearing liabilities [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 0 |
Later than three months [member] | Derivatives [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 0 |
Maturity between 3 and 12 months [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 1 |
Maturity between 3 and 12 months [member] | Interest Bearing Assets [Member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 0 |
Maturity between 3 and 12 months [member] | Interest bearing liabilities [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 0 |
Maturity between 3 and 12 months [member] | Derivatives [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 1 |
Maturity between 1 and 3 years [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | (3) |
Maturity between 1 and 3 years [member] | Interest Bearing Assets [Member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | (3) |
Maturity between 1 and 3 years [member] | Interest bearing liabilities [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 0 |
Maturity between 1 and 3 years [member] | Derivatives [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 0 |
Maturity between 3 and 5 years [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | (2) |
Maturity between 3 and 5 years [member] | Interest Bearing Assets [Member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | (4) |
Maturity between 3 and 5 years [member] | Interest bearing liabilities [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 6 |
Maturity between 3 and 5 years [member] | Derivatives [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | (4) |
2023 or later [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 1 |
2023 or later [member] | Interest Bearing Assets [Member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | (1) |
2023 or later [member] | Interest bearing liabilities [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | 3 |
2023 or later [member] | Derivatives [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Derivatives | kr (1) |
Financial Risk Management an140
Financial Risk Management and Financial Instruments - Disclosure of Detailed Information about Currency Derivatives (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | kr 1,125 | |
Liability | 689 | |
Fair value hedges [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 44 | kr 120 |
Currency Derivatives [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 613 | |
Liability | 330 | |
Currency Derivatives [member] | Maturity within 3 months [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 130 | 351 |
Liability | 542 | 193 |
Currency Derivatives [member] | Maturity between 3 and 12 months [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 215 | 262 |
Liability | 147 | 137 |
Currency Derivatives [member] | Maturity between 1 and 3 years [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 25 | |
Currency Derivatives [member] | Maturity between 3 and 5 years [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 754 | |
Interest rate derivatives [Member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 168 | 495 |
Liability | 237 | 409 |
Interest rate derivatives [Member] | Maturity within 3 months [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 10 | |
Liability | 35 | |
Interest rate derivatives [Member] | Maturity between 3 and 12 months [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 1 | 239 |
Liability | 82 | |
Interest rate derivatives [Member] | Maturity between 1 and 3 years [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 34 | 191 |
Liability | 105 | 205 |
Interest rate derivatives [Member] | Maturity between 3 and 5 years [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 83 | |
Liability | 54 | 6 |
Interest rate derivatives [Member] | 2023 or later [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 39 | 65 |
Liability | kr 43 | kr 116 |
Financial Risk Management an141
Financial Risk Management and Financial Instruments - Disclosure of Detailed Information about Currency Derivatives (Parenthetical) (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Non-current assets | kr 86 | kr 0 |
Financial Risk Management an142
Financial Risk Management and Financial Instruments - Summary of Cash, Cash Equivalents and Interest-Bearing Securities (Detail) - SEK (kr) kr in Billions | Dec. 31, 2016 | Dec. 31, 2007 |
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items] | ||
Banks | kr 26.9 | |
Type of issuer/counterpart Governments | 22.8 | |
Corporates | 0.3 | |
Mortgage institutes | 17.7 | |
2,016 | kr 57.9 | 67.7 |
Maturity within 3 months [member] | ||
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items] | ||
Banks | 26.4 | |
Type of issuer/counterpart Governments | 9.5 | |
Corporates | 0.3 | |
Mortgage institutes | 0.2 | |
2,016 | 37 | 36.4 |
Maturity between 3 and 12 months [member] | ||
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items] | ||
Banks | 0.2 | |
Type of issuer/counterpart Governments | 1 | |
Corporates | 0 | |
Mortgage institutes | 0 | |
2,016 | 1.3 | 1.2 |
Later than one year and not later than five years [member] | ||
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items] | ||
Banks | 0.2 | |
Type of issuer/counterpart Governments | 11.5 | |
Corporates | 0 | |
Mortgage institutes | 16.7 | |
2,016 | 19.3 | 28.4 |
2023 or later [member] | ||
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items] | ||
Banks | 0.1 | |
Type of issuer/counterpart Governments | 0.8 | |
Corporates | 0 | |
Mortgage institutes | 0.8 | |
2,016 | kr 0.3 | kr 1.7 |
Financial Risk Management an143
Financial Risk Management and Financial Instruments - Summary of Funding Programs (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Euro Medium Term Note Program [member] | |
Disclosure of Funding Programs [Line Items] | |
Amount | $ 5,000 |
Utilized | 1,519 |
Unutilized | 3,481 |
S E C Registered Program [member] | |
Disclosure of Funding Programs [Line Items] | |
Utilized | $ 1,000 |
Financial Risk Management an144
Financial Risk Management and Financial Instruments - Summary of Financial Instruments (Detail) - SEK (kr) kr in Billions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Assets at fair value through profit or loss | kr 21.6 | kr 23.5 |
Loans and receivables | 75.6 | 78.9 |
Available-for-sale | 26.7 | 8.8 |
Financial liabilities at amortized cost | (59.3) | (52) |
Total | 64.6 | kr 59.2 |
Customer finance [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Loans and receivables | 3.9 | |
Total | 3.9 | |
Trade receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Loans and receivables | 63.2 | |
Total | 63.2 | |
Interest bearing securities, non-current [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets at fair value through profit or loss | 6.1 | |
Loans and receivables | 0.3 | |
Available-for-sale | 25.4 | |
Total | 31.8 | |
Cash equivalents [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets at fair value through profit or loss | 14.3 | |
Loans and receivables | 3.2 | |
Total | 17.5 | |
Borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at amortized cost | (33) | |
Total | (33) | |
Trade payables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at amortized cost | (26.3) | |
Total | (26.3) | |
Other financial assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets at fair value through profit or loss | 0.9 | |
Loans and receivables | 5 | |
Available-for-sale | 1.3 | |
Total | 7.2 | |
Other Current Receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets at fair value through profit or loss | 1.2 | |
Total | 1.2 | |
Other current liabilities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets at fair value through profit or loss | (0.9) | |
Total | kr (0.9) |
Other Current Liabilities - Sum
Other Current Liabilities - Summary of Other Current Liabilities (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Other Current Liabilities [line items] | ||
Advances from customers | kr 6,955 | kr 5,391 |
Accrued interest | 383 | 367 |
Accrued expenses | 29,196 | 30,716 |
Deferred revenues | 20,110 | 13,990 |
Derivatives with a negative value | 926 | 739 |
Other | 62,370 | 56,003 |
Total | 62,370 | 56,003 |
Of which employee-related [member] | ||
Disclosure of Other Current Liabilities [line items] | ||
Accrued expenses | 8,935 | 9,414 |
Of which supplier-related [member] | ||
Disclosure of Other Current Liabilities [line items] | ||
Accrued expenses | 10,491 | 13,003 |
Of which other [member] | ||
Disclosure of Other Current Liabilities [line items] | ||
Accrued expenses | 9,770 | 8,299 |
Other [member] | ||
Disclosure of Other Current Liabilities [line items] | ||
Other | kr 4,800 | kr 4,800 |
Trade Payables - Summary of Tra
Trade Payables - Summary of Trade Payables (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and other payables [abstract] | ||
Trade payables to associated companies and joint ventures | kr 286 | kr 296 |
Trade payables, excluding associated companies and joint ventures | 26,035 | 25,022 |
Total | kr 26,321 | kr 25,318 |
Assets Pledged as Collateral -
Assets Pledged as Collateral - Schedule of Detailed Information of Assets Pledged as Collateral (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure assets pledged as collateral [abstract] | ||
Chattel mortgages | kr 4,740 | kr 2,240 |
Bank deposits | 475 | 344 |
Total | kr 5,215 | kr 2,584 |
Contingent liabilities - Summar
Contingent liabilities - Summary of Contingent Liabilities (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of contingent liabilities [abstract] | ||
Contingent liabilities | kr 1,561 | kr 1,186 |
Total | kr 1,561 | kr 1,186 |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) - Guarantees [member] - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Contingent Liabilities [Line Items] | ||
Guarantees of loans to other companies | kr 24 | kr 24 |
Guarantee issued in performance of a third party | 0 | 33 |
Financial guarantee for third parties | kr 80 | kr 124 |
Statement of Cash Flows - Addit
Statement of Cash Flows - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Cash Flow Statement [line items] | |||
Interest paid | kr (794) | kr (1,269) | kr (926) |
Interest received | 1 | 110 | 550 |
Taxes paid, including withholding tax | (4,724) | (9,105) | (7,705) |
Cash and cash equivalents include cash | 18,403 | 25,577 | |
Temporary investments | 17,481 | 11,389 | |
Cash and cash equivalents | 3,100 | 4,200 | |
Financing cash flow | 5,478 | kr (11,742) | kr (10,710) |
Derivatives designated as hedges [member] | |||
Disclosure of Cash Flow Statement [line items] | |||
Financing cash flow | kr 201 |
Statement of Cash Flows - Summa
Statement of Cash Flows - Summary of Adjustments to Reconcile Net Income to Cash (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of adjustments to reconcile net income to cash [line items] | |||
Depreciation | kr 4,103 | kr 4,421 | kr 4,705 |
Impairment losses/reversals of impairments | 2,211 | 148 | (16) |
Amortization | 4,348 | 4,465 | 5,518 |
Goodwill | 12,966 | ||
Total impairments | 17,230 | 85 | 20 |
Total depreciation, amortization and impairment losses on property, plant and equipment and intangible assets | 27,892 | 9,119 | 10,227 |
Taxes | (9,805) | (6,200) | (2,835) |
Dividends from joint ventures/associated companies | 77 | 84 | 92 |
Undistributed earnings in joint ventures/ associated companies1) | (21) | (26) | 38 |
Gains/losses on sales of investments and operations, intangible assets and PP&E, net | (167) | (37) | (156) |
Other non-cashitems3) | 607 | 3,172 | 3,245 |
Total | 18,583 | 6,112 | 10,611 |
Intangible asset and goodwill [member] | |||
Disclosure of adjustments to reconcile net income to cash [line items] | |||
Total | 21,578 | 4,550 | 5,538 |
Property, plant and equipments [member] | |||
Disclosure of adjustments to reconcile net income to cash [line items] | |||
Total | 6,314 | 4,569 | 4,689 |
Capitalized development expenditure [member] | |||
Disclosure of adjustments to reconcile net income to cash [line items] | |||
Amortization | 2,681 | 1,815 | 1,379 |
Impairments | 2,245 | 85 | 20 |
Intellectual property rights brands and other intangible assets [member] | |||
Disclosure of adjustments to reconcile net income to cash [line items] | |||
Amortization | 1,667 | kr 2,650 | kr 4,139 |
Impairments | kr 2,019 |
Statement of Cash Flows - Su152
Statement of Cash Flows - Summary of Acquisitions/Divestments of Subsidiaries and Other Operations (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of acquisitions and divestments [line items] | |||
Acquisitions | kr (289) | kr (984) | kr (2,201) |
Divestments | 565 | 362 | 1 |
Cash flow from business combination [member] | |||
Disclosure of acquisitions and divestments [line items] | |||
Acquisitions | (62) | (781) | (1,867) |
Divestments | 459 | 25 | |
Acquisition or divestments of other investment [member] | |||
Disclosure of acquisitions and divestments [line items] | |||
Acquisitions | (227) | (203) | (334) |
Divestments | kr 106 | kr 337 | kr 1 |
Statement of cash flows - Recon
Statement of cash flows - Reconciliation of Liabilities Arising from Financing Activities (Detail) kr in Millions | 12 Months Ended |
Dec. 31, 2017SEK (kr) | |
Disclosure of reconciliation of liabilities arising from financing activities [abstract] | |
Opening balance | kr 26,686 |
Cash flows | |
Proceeds from issuance of borrowings | 13,416 |
Repayment of borrowings | (4,830) |
Non-cash changes | |
Effect of foreign exchange movement | (2,155) |
Changes in fair value | (72) |
Closing balance | kr 33,045 |
Statement of cash flows - Re154
Statement of cash flows - Reconciliation of Liabilities Arising from Financing Activities (Parenthetical) (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of reconciliation of liabilities arising from financing activities [abstract] | ||
Current borrowings | kr 2,545 | kr 8,033 |
Non-current borrowings | kr 30,500 | kr 18,653 |
Business Combinations - Summary
Business Combinations - Summary of Net Assets Acquired and Total Consideration Transferred Business Combinations (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net assets acquired | |||
Goodwill | kr 27,815 | kr 43,387 | |
Acquisitions 2015-2017 [member] | |||
Disclosure of consideration transferred business combinations line items [Line Items] | |||
Total consideration, including cash | 62 | 920 | kr 2,119 |
Acquisition-related costs1) | 49 | 4 | 19 |
Net assets acquired | |||
Cash and cash equivalents | 139 | 271 | |
Property, plant and equipment | 12 | 19 | 45 |
Intangible assets | 101 | 817 | 445 |
Other assets | 1 | 290 | 572 |
Other liabilities | 25 | (290) | (379) |
Total identifiable net assets | 139 | 975 | 954 |
Goodwill | (77) | (55) | 1,165 |
Total | kr 62 | kr 920 | kr 2,119 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about business combination [line items] | ||
Cash flow effect pursuant to business combinations | kr 459 | kr 25 |
Acquisitions 2015-2017 [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Cash flow effect pursuant to business combinations | kr 62 | kr 781 |
Nodeprime [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Company | Nodeprime | |
Description | A US based software development company with an infrastructure management platform. | |
Transaction date | Apr. 30, 2016 | |
Ericpol [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Company | Ericpol | |
Description | A software development company in Poland within telecommunications. | |
Transaction date | Apr. 30, 2016 | |
FYI Television [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Company | FYI Television | |
Description | A US based premier entertainment metadata and rich media content supplier. | |
Transaction date | Jan. 31, 2016 | |
Envivio [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Company | Envivio | |
Description | A US-basedcompany with competence in software-defined and cloud-enabled architectures for video processing. | |
Transaction date | Oct. 31, 2015 | |
Icon [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Company | ICON | |
Description | A consulting and systems integration business with approximately 250 employees and consultants. | |
Transaction date | Aug. 31, 2015 | |
Sunrise technology [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Company | Sunrise technology | |
Description | A business delivering complex IT solutions. | |
Transaction date | Jul. 31, 2015 | |
Timeless mind [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Company | Timelessmind | |
Description | A Canada-based consulting and systems integration business specializing in operations and business support (OSS/BSS). | |
Transaction date | Apr. 30, 2015 |
Business Combinations - Summ157
Business Combinations - Summary of Divestments Transactions (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net assets disposed of | |||
Goodwill | kr 27,815 | kr 43,387 | |
Divestments 2015-2017 [member] | |||
Disclosure Of Divestitures [line items] | |||
Proceeds | 459 | 25 | |
Net assets disposed of | |||
Property, plant and equipment | 62 | 36 | |
Investments in joint ventures and associated companies | 15 | ||
Goodwill | 45 | ||
Other assets | 219 | 5 | kr 52 |
Other liabilities | (180) | (114) | (3) |
Net assets disposed of | 146 | (58) | 49 |
Net gains/losses from divestments | 313 | 83 | (49) |
Less Cash and cash equivalents | 0 | 0 | kr 0 |
Cash flow effect | kr 459 | kr 25 |
Business Combinations - Addi158
Business Combinations - Additional Information (Parenthetical) (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about business combination [abstract] | ||
Cash flow effect pursuant to business combinations | kr 459 | kr 25 |
Business Combinations - Summ159
Business Combinations - Summary of Business Divestments Transactions (Detail) - Divestments 2015-2017 [member] | 12 Months Ended |
Dec. 31, 2017 | |
Power Modules [member] | |
Disclosure of business divestitures [line items] | |
Divestments, Company | Power Modules |
Divestments, Description | A divestment of the power modules business. |
Business Divestments, transaction date | Sep. 30, 2017 |
Birla Ericsson Optical Ltd [member] | |
Disclosure of business divestitures [line items] | |
Divestments, Company | Birla Ericsson Optical Ltd |
Divestments, Description | A divestment of the shares in the associated company. |
Business Divestments, transaction date | Jul. 31, 2016 |
Leasing - Additional Informatio
Leasing - Additional Information (Detail) - SEK (kr) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Leases [line items] | ||
Finance lease obligations | kr 0 | |
Expenses for leasing of assets | 4,194,000,000 | kr 3,710,000,000 |
Variable lease expenses | 101,000,000 | 217,000,000 |
Leasing income | kr 44,000,000 | kr 47,000,000 |
Lessor [Member] | Bottom of range [member] | ||
Disclosure Of Leases [line items] | ||
Leasing contract period | 1 year | |
Lessor [Member] | Top of range [member] | ||
Disclosure Of Leases [line items] | ||
Leasing contract period | 15 years | |
Lessee [member] | Bottom of range [member] | ||
Disclosure Of Leases [line items] | ||
Leasing contract period | 1 year | |
Lessee [member] | Top of range [member] | ||
Disclosure Of Leases [line items] | ||
Leasing contract period | 16 years |
Leasing - Summary of Future Min
Leasing - Summary of Future Minimum Lease Payment Obligations (Detail) kr in Millions | 12 Months Ended |
Dec. 31, 2017SEK (kr) | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | kr 17,119 |
Future minimum, Operating leases | 613 |
2018 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | 3,491 |
Future minimum, Operating leases | 83 |
2019 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | 2,927 |
Future minimum, Operating leases | 87 |
2020 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | 2,506 |
Future minimum, Operating leases | 85 |
2021 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | 1,966 |
Future minimum, Operating leases | 87 |
2022 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | 1,442 |
Future minimum, Operating leases | 87 |
2023 or later [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | 4,787 |
Future minimum, Operating leases | kr 184 |
Information Regarding Members o
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Remuneration to Members of the Board of Directors (Detail) | 12 Months Ended |
Dec. 31, 2017SEK (kr)shares | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | kr 13,153,000 |
Value at grant date of synthetic shares allocated | kr 4,207,271 |
Number of previously allocated synthetic shares outstanding | shares | 93,582 |
Net change in value of synthetic shares | kr 632,329 |
Committee fees | 2,500,000 |
Total fees paid in cash | 11,445,500 |
Total remuneration | kr 16,285,100 |
Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Number of synthetic shares | shares | 73,618 |
Board member [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | kr 13,153,000 |
Value at grant date of synthetic shares allocated | kr 4,207,271 |
Number of previously allocated synthetic shares outstanding | shares | 93,582 |
Net change in value of synthetic shares | kr 422,974 |
Committee fees | 2,500,000 |
Total fees paid in cash | 11,445,500 |
Total remuneration | kr 16,075,745 |
Board member [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Number of synthetic shares | shares | 73,618 |
Board member [member] | Jacob Wallenberg [Member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | kr 990,000 |
Portion of Board fee | 75.00% |
Value at grant date of synthetic shares allocated | kr 742,493 |
Number of previously allocated synthetic shares outstanding | shares | 18,202 |
Net change in value of synthetic shares | kr 128,459 |
Committee fees | 175,000 |
Total fees paid in cash | 422,500 |
Total remuneration | kr 1,293,452 |
Board member [member] | Jacob Wallenberg [Member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Number of synthetic shares | shares | 12,992 |
Board member [member] | Leif Johansson [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | kr 4,075,000 |
Portion of Board fee | 0.00% |
Committee fees | kr 400,000 |
Total fees paid in cash | 4,475,000 |
Total remuneration | kr 4,475,000 |
Board member [member] | Leif Johansson [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Number of synthetic shares | shares | 0 |
Board member [member] | Helena Stjernholm [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | kr 990,000 |
Portion of Board fee | 50.00% |
Value at grant date of synthetic shares allocated | kr 494,976 |
Number of previously allocated synthetic shares outstanding | shares | 11,093 |
Net change in value of synthetic shares | kr (13,606) |
Committee fees | 175,000 |
Total fees paid in cash | 670,000 |
Total remuneration | kr 1,151,370 |
Board member [member] | Helena Stjernholm [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Number of synthetic shares | shares | 8,661 |
Board member [member] | Jon Fredrik Baksaas [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | kr 990,000 |
Portion of Board fee | 75.00% |
Value at grant date of synthetic shares allocated | kr 742,493 |
Net change in value of synthetic shares | (42,874) |
Committee fees | 175,000 |
Total fees paid in cash | 422,500 |
Total remuneration | kr 1,122,119 |
Board member [member] | Jon Fredrik Baksaas [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Number of synthetic shares | shares | 12,992 |
Board member [member] | Jan Carlson [Member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | kr 990,000 |
Portion of Board fee | 75.00% |
Value at grant date of synthetic shares allocated | kr 742,493 |
Net change in value of synthetic shares | (42,874) |
Committee fees | 175,000 |
Total fees paid in cash | 422,500 |
Total remuneration | kr 1,122,119 |
Board member [member] | Jan Carlson [Member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Number of synthetic shares | shares | 12,992 |
Board member [member] | Nora Denzel [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | kr 990,000 |
Portion of Board fee | 25.00% |
Value at grant date of synthetic shares allocated | kr 247,460 |
Number of previously allocated synthetic shares outstanding | shares | 5,489 |
Net change in value of synthetic shares | kr 23,549 |
Committee fees | 425,000 |
Total fees paid in cash | 1,167,500 |
Total remuneration | kr 1,438,509 |
Board member [member] | Nora Denzel [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Number of synthetic shares | shares | 4,330 |
Board member [member] | Borje Ekholm [Member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Number of previously allocated synthetic shares outstanding | shares | 33,203 |
Net change in value of synthetic shares | kr 339,168 |
Total remuneration | 339,168 |
Board member [member] | Eric A. Elzvik [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | kr 990,000 |
Portion of Board fee | 25.00% |
Value at grant date of synthetic shares allocated | kr 247,460 |
Net change in value of synthetic shares | (14,289) |
Committee fees | 350,000 |
Total fees paid in cash | 1,092,500 |
Total remuneration | kr 1,325,671 |
Board member [member] | Eric A. Elzvik [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Number of synthetic shares | shares | 4,330 |
Board member [member] | Kristin Skogen Lund [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | kr 990,000 |
Portion of Board fee | 25.00% |
Value at grant date of synthetic shares allocated | kr 247,460 |
Number of previously allocated synthetic shares outstanding | shares | 11,990 |
Net change in value of synthetic shares | kr 60,646 |
Committee fees | 250,000 |
Total fees paid in cash | 992,500 |
Total remuneration | kr 1,300,606 |
Board member [member] | Kristin Skogen Lund [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Number of synthetic shares | shares | 4,330 |
Board member [member] | Kristin S. Rinne [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | kr 990,000 |
Portion of Board fee | 50.00% |
Value at grant date of synthetic shares allocated | kr 494,976 |
Number of previously allocated synthetic shares outstanding | shares | 7,395 |
Net change in value of synthetic shares | kr (18,598) |
Committee fees | 200,000 |
Total fees paid in cash | 695,000 |
Total remuneration | kr 1,171,378 |
Board member [member] | Kristin S. Rinne [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Number of synthetic shares | shares | 8,661 |
Board member [member] | Sukhinder Singh Cassidy [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | kr 990,000 |
Portion of Board fee | 25.00% |
Value at grant date of synthetic shares allocated | kr 247,460 |
Number of previously allocated synthetic shares outstanding | shares | 6,210 |
Net change in value of synthetic shares | kr 3,393 |
Committee fees | 175,000 |
Total fees paid in cash | 917,500 |
Total remuneration | kr 1,168,353 |
Board member [member] | Sukhinder Singh Cassidy [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Number of synthetic shares | shares | 4,330 |
Board member [member] | Pehr Claesson [member] | Employee representatives [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | kr 15,000 |
Total fees paid in cash | 15,000 |
Total remuneration | 15,000 |
Board member [member] | Mikael Lannqvist [member] | Employee representatives [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | 9,000 |
Total fees paid in cash | 9,000 |
Total remuneration | 9,000 |
Board member [member] | Kjell-Ake Soting [Member] | Employee representatives [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | 27,000 |
Total fees paid in cash | 27,000 |
Total remuneration | 27,000 |
Board member [member] | Roger Svensson [member] | Employee representatives [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | 37,500 |
Total fees paid in cash | 37,500 |
Total remuneration | 37,500 |
Board member [member] | Karin Aberg [member] | Employee representatives [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | 33,000 |
Total fees paid in cash | 33,000 |
Total remuneration | 33,000 |
Board member [member] | Zlatko Hadzic [member] | Deputy employee representatives [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | 6,000 |
Total fees paid in cash | 6,000 |
Total remuneration | 6,000 |
Board member [member] | Torbjrn Nyman [member] | Deputy employee representatives [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | 13,500 |
Total fees paid in cash | 13,500 |
Total remuneration | 13,500 |
Board member [member] | Anders Ripa [member] | Deputy employee representatives [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | 13,500 |
Total fees paid in cash | 13,500 |
Total remuneration | 13,500 |
Board member [member] | Loredana Roslund [member] | Deputy employee representatives [member] | |
Disclosure of Information About Board Management and Employees [Line Items] | |
Board fees | 13,500 |
Total fees paid in cash | 13,500 |
Total remuneration | kr 13,500 |
Information Regarding Member163
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Remuneration to Members of the Board of Directors (Parenthetical) (Detail) - SEK (kr) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Information About Board Management and Employees [Line Items] | |||||
Share price used to calculate value of synthetic shares | kr 53.85 | ||||
Dividend compensation per share included in value of synthetic shares | kr 1 | kr 3.70 | kr 3.40 | kr 3 | |
Social security charges | kr 2,964,677 | ||||
Jacob Wallenberg [Member] | |||||
Disclosure of Information About Board Management and Employees [Line Items] | |||||
Statutory social charges | kr 174,460 |
Information Regarding Member164
Information Regarding Members of the Board of Directors, the Group Management and Employees - Additional Information (Detail) - SEK (kr) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | |
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Board fee description | The Annual General Meeting 2017 resolved that non-employeeDirectors may choose to receive the Board fee (i.e., exclusive of Committee fee) as follows i) 25% of the Board fee in cash and 75% in the form of synthetic shares, with a value corresponding to 75% of the Board fee at the time of allocation, ii) 50% in cash and 50% in the form of synthetic shares, or iii) 75% in cash and 25% in the form of synthetic shares. Directors may also choose not to participate in the synthetic share program and receive 100% of the Board fee in cash. Committee fees are always paid in cash. | |||
Number of trading days | 5 days | |||
Remuneration excluding social security charges | kr 2,788,056 | |||
Number of shares outstanding | 3,334,151,735 | 3,331,151,735 | ||
Accounted debt | kr 9,440,105 | |||
Matching result percentage | 33.33% | |||
Shares issued | 1,827,600 | |||
Strike price | kr 80 | |||
Additional arrangement period | 36 months | |||
Severance pay amounting period | 18 months | |||
The President and CEO [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Commitments for defined benefit based pensions including disability and survivor's pension | kr 45,651,263 | kr 44,800,609 | ||
Number of matching shares received by serving employees | 0 | |||
Other members of executive team [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Number of matching shares received by serving employees | 79,285 | |||
Other members of ELT [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Commitments related to ITP and early retirement | kr 36,957,641 | 38,333,332 | ||
Commitment to disability and survivors pensions | 8,693,622 | kr 6,467,277 | ||
Board and committee meeting attendance fee [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Fee and commission expense | 1,500 | |||
Purchased call options [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Shares issued | 1,000,000 | |||
Purchase of options shares | 2,000,000 | |||
Purchase price | kr 0.49 | |||
No compensation expenses recognized during the period | Seven-year period | |||
Chairman [member] | Board fees [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Fee and commission expense | 4,075,000 | |||
Chairman [member] | Committee fees [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Fee and commission expense | 200,000 | |||
Other directors [member] | Board fees [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Fee and commission expense | 990,000 | |||
Chairman of audit committee [member] | Board fees [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Fee and commission expense | 350,000 | |||
Other non-employee members of audit committee [member] | Board fees [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Fee and commission expense | 250,000 | |||
Chairmen of the finance and remuneration committees [member] | Board fees [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Fee and commission expense | 200,000 | |||
Other non-employee members of finance and remuneration committees [member] | Board fees [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Fee and commission expense | kr 175,000 | |||
Class B shares [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Weighted average market price | kr 57.15 | kr 51.92 | ||
Number of shares outstanding | 3,072,395,752 | |||
Synthetic shares [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Number of shares outstanding | 167,200 |
Information Regarding Member165
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Remuneration Costs for the President and CEO and Other Members of Executive Leadership Team (ELT) (Detail) - SEK (kr) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Classes Of Employee Benefits Expense [Line Items] | |||
Salary | kr 76,502,000,000 | kr 77,774,000,000 | kr 80,054,000,000 |
Pension costs | 2,622,000,000 | 2,114,000,000 | kr 2,553,000,000 |
Board of directors [member] | |||
Classes Of Employee Benefits Expense [Line Items] | |||
Salary | 176,538,632 | 165,383,449 | |
Annual variable remuneration provision earned for the year | 7,331,278 | 6,230,285 | |
Long-term variable compensation provision | 15,959,966 | 18,005,336 | |
Pension costs | 39,120,708 | 41,342,256 | |
Other benefits | 16,630,091 | 12,674,627 | |
Social charges and taxes | 60,981,063 | 49,388,312 | |
Total | 317,561,739 | 293,024,265 | |
Borje Ekholm [Member] | Board of directors [member] | |||
Classes Of Employee Benefits Expense [Line Items] | |||
Salary | 13,980,639 | ||
Long-term variable compensation provision | 6,119,323 | ||
Pension costs | 7,365,132 | ||
Other benefits | 315,263 | ||
Social charges and taxes | 8,728,588 | ||
Total | 36,508,946 | ||
Jan Frykhammar [member] | Board of directors [member] | |||
Classes Of Employee Benefits Expense [Line Items] | |||
Salary | 398,531 | ||
Pension costs | 162,941 | ||
Other benefits | 2,923 | ||
Social charges and taxes | 165,666 | ||
Total | 730,061 | ||
The President and CEO [member] | Board of directors [member] | |||
Classes Of Employee Benefits Expense [Line Items] | |||
Salary | 14,379,170 | 45,882,357 | |
Long-term variable compensation provision | 6,119,323 | 8,727,083 | |
Pension costs | 7,528,073 | 11,954,758 | |
Other benefits | 318,187 | 69,992 | |
Social charges and taxes | 8,894,255 | 20,241,066 | |
Total | 37,239,007 | 86,875,256 | |
Other members of executive team [member] | Board of directors [member] | |||
Classes Of Employee Benefits Expense [Line Items] | |||
Salary | 162,159,462 | 119,501,092 | |
Annual variable remuneration provision earned for the year | 7,331,278 | 6,230,285 | |
Long-term variable compensation provision | 9,840,643 | 9,278,252 | |
Pension costs | 31,592,635 | 29,387,498 | |
Other benefits | 17,311,905 | 12,604,635 | |
Social charges and taxes | 52,086,808 | 29,147,247 | |
Total | kr 280,322,732 | kr 206,149,008 |
Information Regarding Member166
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Maximum Outstanding Matching Rights (Detail) | Dec. 31, 2017shares |
Number of Class B shares [member] | Top of range [member] | Other members of executive team [member] | |
Disclosure of Maximum Outstanding Matching Rights [Line Items] | |
Stock Purchase Plans 2014-2016 Executive Performance Stock Plans 2014-2016 | 183,054 |
Information Regarding Member167
Information Regarding Members of the Board of Directors, the Group Management and Employees - Additional Information 1 (Detail) | May 18, 2017 | Dec. 31, 2017SEK (kr)EmployeesEmployeekr / sharesshares | Dec. 31, 2016kr / shares | Dec. 18, 2017kr / shares |
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Number of shares issued | 1,827,600 | |||
Average price of share | kr / shares | kr 53.82 | |||
Employee stock purchase plan [member] | Bottom of range [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Number Of Extra Shares For Subscription under the plan | 4 | |||
Employee stock purchase plan [member] | Top of range [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Number Of Extra Shares For Subscription under the plan | 6 | |||
Maximum number of employees participate | 0.50% | |||
Key contributor retention plan [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Matching share for each contribution share purchased | 1 | |||
Key contributor retention plan [member] | Top of range [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Employees nominated | 10.00% | |||
Long-term variable compensation program [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Number of shares issued | 14,100,000 | |||
Compensation cost | kr | kr 170 | |||
Service period | 3 years | |||
Fair value share price | kr / shares | kr 57.15 | kr 56.55 | ||
Executive performance plan [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Service period | 3 years | |||
Executive performance plan [member] | Long-term variable compensation program [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Number of shares issued | 2,300,000 | |||
Compensation cost | kr | kr 31.4 | |||
Stock Purchase plan 2016 [member] | Top of range [member] | Employees [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Gross fixed salary | 7.50% | |||
Stock Purchase plan 2016 [member] | Stock Purchase plan 2016 [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Description of type of plan | If the contribution shares are retained by the employee for three years after the investment and their employment with the Ericsson Group continues during that time, then the employee's shares will be matched with a corresponding number of Class B shares or ADSs free of consideration. Employees in 100 countries participate in the plans. | |||
Key contributor plan [member] | Long-term variable compensation program [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Number of shares issued | 11,800,000 | |||
Compensation cost | kr | kr 138.6 | |||
Long-term variable compensation program [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Recognized service period | over the service period of three years | |||
Long-term variable compensation program [member] | Performance share awards [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Vesting period | 3 years | |||
Vesting description | Awards under LTV 2017 are granted free of charge entitling the participant, provided that certain performance conditions set out below are met, to receive a number of shares, free of charge, following expiration of a three-year vesting period (“Performance Share Awards”). | |||
Period of employement eligibility for awards | 3 years | |||
Long-term variable compensation program [member] | Sweden, Kronor [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Number of shares issued | 3,000,000 | |||
Fair value | kr | kr 65.68 | |||
Compensation cost | kr | kr 9,900,000 | |||
Long-term variable compensation program [member] | Sweden, Kronor [member] | Executive Board [Member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Number of shares issued | 7,000,000 | |||
Per share value | kr / shares | kr 57.15 | |||
Class B shares [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Per share value | kr / shares | kr 5 | |||
Number of exercise and matching shares transferred | 45,000,000 | |||
Percentage of shares outstanding | 1.40% | |||
Number of shares outstanding | 3,284,000,000 | |||
Number of treasury shares | 50,000,000 | |||
Members of executive team [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Total employees | Employee | 16 | |||
Retention of key employees [member] | Key contributor plan [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Number of employees who selected for plan | Employee | 7,000 | |||
Number of employees nominated for plan | Employee | 6,876 | |||
Number of awards | Two award levels at 10% and 25% of the participants' annual gross salary. | |||
Employee retention period | 3 years | |||
Senior Managers [member] | Employee stock purchase plan [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Vesting period | 3 years | |||
Number of employees nominated for plan | 452 | |||
Number of awards | Two award levels at 15% and 22.5% of the participants' annual gross salary. | |||
Senior Managers [member] | Employee stock purchase plan [member] | Top of range [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Number of employees who selected for plan | Employees | 500 | |||
The President and CEO [member] | Performance share awards [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Percentage value of awards on annual base salary | 180.00% | |||
Other participants [member] | Performance share awards [member] | ||||
Disclosure of Information About Board Management and Employees [Line Items] | ||||
Percentage value of awards on annual base salary | 22.50% |
Information Regarding Member168
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Performance Targets (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Absolute TSR [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Criteria | Range:6%-14% |
Weight | 50.00% |
Relative TSR [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Criteria | Ranking of Ericsson: 12-5 |
Weight | 50.00% |
Bottom of range [member] | Absolute TSR [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting | 0.00% |
Bottom of range [member] | Relative TSR [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting | 0.00% |
Top of range [member] | Absolute TSR [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting | 200.00% |
Top of range [member] | Relative TSR [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting | 200.00% |
Information Regarding Member169
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Compensation Cost (Detail) | 12 Months Ended |
Dec. 31, 2017SEK (kr)shares | |
Disclosure of key management personnel compensation [Line Items] | |
Number of synthetic shares | 1,827,600 |
Long-term variable compensation program [member] | |
Disclosure of key management personnel compensation [Line Items] | |
Number of synthetic shares | 14,100,000 |
Total compensation cost | kr | kr 170 |
Executive performance plan [member] | Long-term variable compensation program [member] | |
Disclosure of key management personnel compensation [Line Items] | |
Number of synthetic shares | 2,300,000 |
Total compensation cost | kr | kr 31.4 |
Key contributor plan [member] | Long-term variable compensation program [member] | |
Disclosure of key management personnel compensation [Line Items] | |
Number of synthetic shares | 11,800,000 |
Total compensation cost | kr | kr 138.6 |
Information Regarding Member170
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Compensation Cost (Parenthetical) (Detail) - kr / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 18, 2017 | |
Disclosure of key management personnel compensation [Line Items] | ||
Cost recognized period | 7 years 6 months | |
Long-term variable compensation program [member] | ||
Disclosure of key management personnel compensation [Line Items] | ||
Fair value granted | kr 65.68 | |
Fair value share price | kr 57.15 | kr 56.55 |
Information Regarding Member171
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Stock Purchase Plans (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Stock purchase plan 2014 [member] | |
Disclosure of Detailed Information About Stock Purchase Plans [Line Items] | |
Contribution period | August 2014-July 2015 |
Number of participants at launch | 32,000 |
Take-up rate-percent of eligible employees | 30.00% |
Stock Purchase plan 2015 [member] | |
Disclosure of Detailed Information About Stock Purchase Plans [Line Items] | |
Contribution period | August 2015-July 2016 |
Number of participants at launch | 33,800 |
Take-up rate-percent of eligible employees | 31.00% |
Stock Purchase plan 2016 [member] | |
Disclosure of Detailed Information About Stock Purchase Plans [Line Items] | |
Contribution period | August 2016-July 2017 |
Number of participants at launch | 31,500 |
Take-up rate-percent of eligible employees | 29.00% |
Information Regarding Member172
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Executive Performance Stock Plan Targets (Detail) - SEK (kr) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Executive Performance Stock Plan Targets [line items] | ||
Growth (Net sales growth) | kr 246.9 | kr 228 |
Margin (Operating income growth)1) | 24.8 | 16.8 |
Cash flow (Cash conversion) | kr 0 | kr 0 |
Bottom of range [member] | ||
Disclosure of Executive Performance Stock Plan Targets [line items] | ||
Compound annual growth rate, Growth (Net sales growth) | 2.00% | 2.00% |
Compound annual growth rate, Margin (Operating income growth) | 5.00% | 5.00% |
Top of range [member] | ||
Disclosure of Executive Performance Stock Plan Targets [line items] | ||
Compound annual growth rate, Growth (Net sales growth) | 6.00% | 6.00% |
Compound annual growth rate, Margin (Operating income growth) | 15.00% | 15.00% |
Top of range [member] | Year 1 [member] | ||
Disclosure of Executive Performance Stock Plan Targets [line items] | ||
Cash flow (Cash conversion) | 70.00% | 70.00% |
Top of range [member] | Year 2 [member] | ||
Disclosure of Executive Performance Stock Plan Targets [line items] | ||
Cash flow (Cash conversion) | 70.00% | 70.00% |
Top of range [member] | Year 3 [member] | ||
Disclosure of Executive Performance Stock Plan Targets [line items] | ||
Cash flow (Cash conversion) | 70.00% | 70.00% |
Information Regarding Member173
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Shares for All Plans (Detail) shares in Millions, kr in Millions | 12 Months Ended |
Dec. 31, 2017SEK (kr)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Originally designated | 94.5 |
Outstanding beginning of 2017 | 45 |
Awarded during 2017 | 17.1 |
Exercised/matched during 2017 | 13 |
Forfeited/expired during 2017 | 5.4 |
Outstanding end of 20171) | 43.7 |
Compensation costs charged during 2017 (SEK million)3) | kr | kr 875.5 |
2016 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Originally designated | 21.6 |
Outstanding beginning of 2017 | 7.5 |
Awarded during 2017 | 17.1 |
Exercised/matched during 2017 | 1.4 |
Forfeited/expired during 2017 | 1.6 |
Outstanding end of 20171) | 21.6 |
Compensation costs charged during 2017 (SEK million)3) | kr | kr 274.5 |
2015 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Originally designated | 23.5 |
Outstanding beginning of 2017 | 18.7 |
Exercised/matched during 2017 | 1.6 |
Forfeited/expired during 2017 | 1.7 |
Outstanding end of 20171) | 15.4 |
Compensation costs charged during 2017 (SEK million)3) | kr | kr 315.4 |
2014 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Originally designated | 22.8 |
Outstanding beginning of 2017 | 11.8 |
Exercised/matched during 2017 | 3.2 |
Forfeited/expired during 2017 | 1.9 |
Outstanding end of 20171) | 6.7 |
Compensation costs charged during 2017 (SEK million)3) | kr | kr 234.1 |
2013 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Originally designated | 26.6 |
Outstanding beginning of 2017 | 7 |
Exercised/matched during 2017 | 6.8 |
Forfeited/expired during 2017 | 0.2 |
Compensation costs charged during 2017 (SEK million)3) | kr | kr 51.5 |
Information Regarding Member174
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Shares for All Plans (Parenthetical) (Detail) - SEK (kr) kr / shares in Units, kr in Millions | Aug. 15, 2017 | May 15, 2017 | Feb. 15, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Vesting period | 3 years | |||||
Compensation cost | kr 957 | kr 865 | ||||
2012 plan [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Outstanding share option vesting percentage | 39.70% | |||||
Outstanding share option lapsed percentage | 33.00% | |||||
2013 plan [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Outstanding share option vesting percentage | 60.30% | |||||
Outstanding share option lapsed percentage | 67.00% | |||||
Number of Class B shares [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Fair value of share at each investment | kr 46.19 | kr 54.46 | kr 46.77 |
Information Regarding Member175
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Average Number of employees (Detail) - Employees | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Information About Employees [line items] | ||
Average number of employees | 107,369 | 116,416 |
Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 25,793 | 26,936 |
Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 81,576 | 89,480 |
South East Asia, Oceania and India [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 24,985 | 26,605 |
South East Asia, Oceania and India [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 5,212 | 6,106 |
South East Asia, Oceania and India [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 19,773 | 20,499 |
North East Asia [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 12,846 | 13,483 |
North East Asia [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 4,189 | 4,297 |
North East Asia [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 8,657 | 9,186 |
North America [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 10,932 | 13,529 |
North America [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 2,337 | 2,862 |
North America [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 8,595 | 10,667 |
Europe and Latin America [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 53,782 | 57,486 |
Europe and Latin America [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 13,135 | 12,928 |
Europe and Latin America [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 40,647 | 44,558 |
Middle East and Africa [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 4,824 | 5,313 |
Middle East and Africa [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 920 | 743 |
Middle East and Africa [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 3,904 | 4,570 |
Sweden [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 14,312 | 16,009 |
Sweden [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 3,299 | 3,650 |
Sweden [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 11,013 | 12,359 |
Of which in EU [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 41,664 | 43,907 |
Of which in EU [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 10,534 | 10,056 |
Of which in EU [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 31,130 | 33,852 |
Information Regarding Member176
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Number of Employees by Region (Detail) - Employees | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 100,735 | 111,464 |
South East Asia, Oceania and India [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 24,495 | 26,570 |
North East Asia [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 12,456 | 13,042 |
North America [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 10,009 | 11,547 |
Europe and Latin America [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 49,231 | 54,873 |
Middle East and Africa [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 4,544 | 5,432 |
Sweden [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 13,864 | 15,303 |
Of which in EU [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 39,508 | 42,625 |
Information Regarding Member177
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Number of Employees by Gender and Age (Detail) - Employees | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Information About Employees [line items] | ||
Number of employees | 100,735 | 111,464 |
Percentage of employees | 100.00% | |
Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 77.00% | |
Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 23.00% | |
Under 25 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 4.00% | |
Under 25 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 1,611 | |
Under 25 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 2,283 | |
25-35 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 37.00% | |
25-35 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 9,776 | |
25-35 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 27,458 | |
Between 36 to 45 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 31.00% | |
Between 36 to 45 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 6,452 | |
Between 36 to 45 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 25,301 | |
46-55 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 21.00% | |
46-55 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 4,205 | |
46-55 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 16,741 | |
Over 55 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 7.00% | |
Over 55 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 1,490 | |
Over 55 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 5,418 |
Information Regarding Member178
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Employee Movements (Detail) - Employees | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Information About Employees [line items] | ||
Number of employees | 100,735 | 111,464 |
Employees who have left the Company [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 21,791 | 19,865 |
Employees who have joined the Company [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 11,062 | 15,048 |
Temporary employee [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 676 | 1,148 |
Information Regarding Member179
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Wages and Salaries and Social Security Expenses (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Information About Employees [line items] | |||
Wages and salaries | kr 76,502 | kr 77,774 | kr 80,054 |
Directors remuneration [member] | |||
Disclosure of Information About Employees [line items] | |||
Wages and salaries | 58,966 | 60,064 | |
Social security expenses | 17,536 | 17,710 | |
Of which pension costs | kr 5,592 | kr 5,254 |
Information Regarding Member180
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Remuneration to Board Members and Presidents in Subsidiaries (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Number and average number of employees [abstract] | ||
Salary and other remuneration | kr 347 | kr 462 |
Of which annual variable remuneration | 79 | 106 |
Pension costs | kr 32 | kr 38 |
Information Regarding Member181
Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Board Members, Presidents and Group Management by Gender (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Women [member] | Parent [member] | ||
Disclosure of Information About Employees [line items] | ||
Board members and President | 43.00% | 46.00% |
Group Management | 36.00% | 35.00% |
Women [member] | Subsidiaries [member] | ||
Disclosure of Information About Employees [line items] | ||
Board members and President | 19.00% | 19.00% |
Men [member] | Parent [member] | ||
Disclosure of Information About Employees [line items] | ||
Board members and President | 57.00% | 54.00% |
Group Management | 64.00% | 65.00% |
Men [member] | Subsidiaries [member] | ||
Disclosure of Information About Employees [line items] | ||
Board members and President | 81.00% | 81.00% |
Fees to Auditors - Summary of F
Fees to Auditors - Summary of Fees to Auditors (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Auditors Remuneration [line items] | |||
Audit fees | kr 91 | kr 93 | kr 93 |
Audit-related fees | 11 | 10 | 11 |
Tax fees | 17 | 18 | 32 |
Other fees | 16 | 27 | 8 |
Total | 135 | 148 | 144 |
PwC [member] | |||
Auditors Remuneration [line items] | |||
Audit fees | 89 | 90 | 91 |
Audit-related fees | 11 | 10 | 11 |
Tax fees | 13 | 10 | 19 |
Other fees | 9 | 16 | 8 |
Total | 122 | 126 | 129 |
Others [member] | |||
Auditors Remuneration [line items] | |||
Audit fees | 2 | 3 | 2 |
Tax fees | 4 | 8 | 13 |
Other fees | 7 | 11 | |
Total | kr 13 | kr 22 | kr 15 |
Fees to Auditors - Additional I
Fees to Auditors - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Auditors Remuneration [line items] | |||
Auditors fee | kr 135 | kr 148 | kr 144 |
Tax fees | 17 | 18 | 32 |
Other audit fees | 16 | 27 | 8 |
PwC [member] | |||
Auditors Remuneration [line items] | |||
Auditors fee | 122 | 126 | 129 |
Tax fees | 13 | 10 | 19 |
Other audit fees | 9 | kr 16 | kr 8 |
PwC AB Sweden [member] | |||
Auditors Remuneration [line items] | |||
Auditors fee | 39 | ||
Other statutory engagements fees | 10 | ||
Tax fees | 3 | ||
Other audit fees | kr 5 |
Contractual Obligations - Summa
Contractual Obligations - Summary of Contractual Obligations (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Contractual Obligations [Line Items] | ||
Current and Non-current debt | kr 33,045 | kr 26,686 |
Other non-current liabilities | 2,776 | 2,621 |
Trade payables | 26,321 | 25,318 |
Commitments for customer finance | 9,706 | kr 13,082 |
Contractual obligations [member] | ||
Disclosure of Contractual Obligations [Line Items] | ||
Current and Non-current debt | 33,900 | |
Operating leases | 17,100 | |
Other non-current liabilities | 2,800 | |
Purchase obligations | 7,800 | |
Trade payables | 26,300 | |
Commitments for customer finance | 9,700 | |
Total | 97,600 | |
Contractual obligations [member] | 2018 [member] | ||
Disclosure of Contractual Obligations [Line Items] | ||
Current and Non-current debt | 2,800 | |
Operating leases | 3,500 | |
Other non-current liabilities | 400 | |
Purchase obligations | 6,200 | |
Trade payables | 26,300 | |
Commitments for customer finance | 9,700 | |
Total | 48,900 | |
Contractual obligations [member] | Maturity between 1 and 3 years [member] | ||
Disclosure of Contractual Obligations [Line Items] | ||
Current and Non-current debt | 8,900 | |
Operating leases | 5,400 | |
Other non-current liabilities | 700 | |
Purchase obligations | 900 | |
Total | 15,900 | |
Contractual obligations [member] | Maturity between 3 and 5 years [member] | ||
Disclosure of Contractual Obligations [Line Items] | ||
Current and Non-current debt | 14,300 | |
Operating leases | 3,400 | |
Purchase obligations | 700 | |
Total | 18,400 | |
Contractual obligations [member] | 2023 or later [member] | ||
Disclosure of Contractual Obligations [Line Items] | ||
Current and Non-current debt | 7,900 | |
Operating leases | 4,800 | |
Other non-current liabilities | 1,700 | |
Total | kr 14,400 |
Events after the Reporting Peri
Events after the Reporting Period - Additional Information (Detail) | 12 Months Ended |
Jan. 31, 2018 | |
Events After Reporting Period [Member] | |
Disclosure of non-adjusting events after reporting period [line items] | |
Equity Interest percentage | 49.00% |