Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Trading Symbol | ERIC |
Entity Registrant Name | ERICSSON LM TELEPHONE CO |
Entity Central Index Key | 0000717826 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Security Exchange Name | NASDAQ |
Title of 12(b) Security | American Depositary Shares(each representing one B share) |
Entity File Number | 000-12033 |
Entity Incorporation, State or Country Code | V7 |
Entity Address, Address Line One | Torshamnsgatan 21 |
Entity Address, Postal Zip Code | 164 83 |
Entity Address, City or Town | Stockholm |
Entity Address, Country | SE |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Accounting Standard | International Financial Reporting Standards |
ICFR Auditor Attestation Flag | true |
Auditor Name | Deloitte AB |
Auditor Firm ID | 1126 |
Auditor Location | Stockholm, Sweden |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | Torshamnsgatan 21 |
Entity Address, Postal Zip Code | 164 83 |
Entity Address, City or Town | Stockholm |
Entity Address, Country | SE |
Contact Personnel Name | Stefan Salentin |
City Area Code | 46 |
Local Phone Number | 10 719 0000 |
Contact Personnel Email Address | stefan.salentin@ericsson.com |
A shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 261,755,983 |
B shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 3,072,395,752 |
C shares [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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Net sales | kr 271,546 | kr 232,314 | kr 232,390 |
Cost of sales | (158,251) | (131,565) | (138,666) |
Gross income | 113,295 | 100,749 | 93,724 |
Research and development expenses | (47,298) | (42,074) | (39,714) |
Selling and administrative expenses | (35,692) | (26,957) | (26,684) |
Impairment losses on trade receivables | (40) | (40) | 118 |
Operating expenses | (83,030) | (69,071) | (66,280) |
Other operating income | 1,231 | 1,526 | 1,161 |
Other operating expenses | (4,493) | (1,164) | (499) |
Share in earnings of joint ventures and associated companies | 17 | (260) | (298) |
Earnings before financial items and income tax (EBIT) | 27,020 | 31,780 | 27,808 |
Financial income and expenses, net | (2,411) | (2,530) | (596) |
Income after financial items | 24,609 | 29,250 | 27,212 |
Income tax | (5,497) | (6,270) | (9,589) |
Net income | 19,112 | 22,980 | 17,623 |
Net income attributable to: | |||
Owners of the Parent Company | 18,724 | 22,694 | 17,483 |
Non-controlling interests | kr 388 | kr 286 | kr 140 |
Other information | |||
Average number of shares outstanding, basic (millions) | 3,330 | 3,329 | 3,323 |
Earnings (loss) per share attributable to owners of the Parent Company, basic (SEK) | kr 5.62 | kr 6.82 | kr 5.26 |
Earnings (loss) per share attributable to owners of the Parent Company, diluted (SEK) | kr 5.62 | kr 6.81 | kr 5.26 |
Consolidated statement of compr
Consolidated statement of comprehensive income (loss) - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Statement of comprehensive income [abstract] | ||||
Net income | kr 19,112 | kr 22,980 | kr 17,623 | |
Items that will not be reclassified to profit or loss | ||||
Remeasurements of defined benefit pension plans including asset ceiling | 10,669 | 3,537 | (4,618) | |
Revaluation of borrowings due to change in credit risk | 1,030 | 31 | 99 | |
Cash flow hedge reserve | ||||
Gains/losses arising during the period | 3,703 | |||
Transfer to goodwill | (3,677) | |||
Tax on items that will not be reclassified to profit or loss | (3,067) | (682) | 880 | |
Cash flow hedge reserve | ||||
Gains/losses arising during the period | (701) | (542) | 136 | |
Reclassification adjustments on gains/losses included in profit or loss | 280 | (96) | 281 | |
Translation reserves | ||||
Changes in translation reserves | 7,130 | [1] | 3,342 | (5,376) |
Reclassification to profit and loss | (85) | [1] | 46 | 124 |
Share of other comprehensive income of JV and associated companies | 49 | 28 | (81) | |
Tax on items that have been or may be reclassified to profit or loss | 87 | 126 | (86) | |
Other comprehensive income (loss), net of tax | 15,418 | 5,790 | (8,641) | |
Total comprehensive income | 34,530 | 28,770 | 8,982 | |
Total comprehensive income attributable to: | ||||
Owners of the Parent Company | 34,274 | 28,694 | 8,787 | |
Non-controlling interests | kr 256 | kr 76 | kr 195 | |
[1]Changes in translation reserves include changes regarding revaluation of goodwill in local currency of SEK 5,070 million (SEK 2,646 million in 2021 and SEK -3,359 million in 2020). |
Consolidated balance sheet
Consolidated balance sheet - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Non-current assets | ||
Capitalized development expenses | kr 3,705 | kr 3,528 |
Goodwill | 84,570 | 38,204 |
Customer relationships, IPRs and other intangible assets | 26,340 | 3,830 |
Property, plant and equipment | 14,236 | 13,580 |
Right-of-use assets | 7,870 | 7,948 |
Financial assets | ||
Equity in joint ventures and associated companies | 1,127 | 941 |
Other investments in shares and participations | 2,074 | 2,258 |
Customer finance, non-current | 415 | 568 |
Interest-bearing securities, non-current | 9,164 | 30,626 |
Other financial assets, non-current | 6,839 | 6,217 |
Deferred tax assets | 19,394 | 23,109 |
Non-current assets | 175,734 | 130,809 |
Current assets | ||
Inventories | 45,846 | 35,164 |
Contract assets | 9,843 | 10,506 |
Trade receivables | 48,413 | 45,399 |
Customer finance, current | 4,955 | 2,719 |
Current tax assets | 7,973 | 6,379 |
Other current receivables | 9,688 | 7,656 |
Interest-bearing securities, current | 8,736 | 12,932 |
Cash and cash equivalents | 38,349 | 54,050 |
Current assets | 173,803 | 174,805 |
Total assets | 349,537 | 305,614 |
Equity | ||
Capital stock | 16,672 | 16,672 |
Additional paid in capital | 24,731 | 24,731 |
Other reserves | 8,201 | 454 |
Retained earnings | 85,210 | 66,918 |
Equity attributable to owners of the Parent Company | 134,814 | 108,775 |
Non-controlling interests | (1,510) | (1,676) |
Equity | 133,304 | 107,099 |
Non-current liabilities | ||
Post-employment benefits | 27,361 | 36,050 |
Provisions, non-current | 3,959 | 3,722 |
Deferred tax liabilities | 4,784 | 884 |
Borrowings, non-current | 26,946 | 22,241 |
Lease liabilities, non-current | 6,818 | 7,079 |
Other non-current liabilities | 745 | 1,587 |
Non-current liabilities | 70,613 | 71,563 |
Current liabilities | ||
Provisions, current | 7,629 | 5,782 |
Borrowings, current | 5,984 | 9,590 |
Lease liabilities, current | 2,486 | 2,224 |
Contract liabilities | 42,251 | 32,834 |
Trade payables | 38,437 | 35,684 |
Current tax liabilities | 2,640 | 2,917 |
Other current liabilities | 46,193 | 37,921 |
Current liabilities | 145,620 | 126,952 |
Total equity and liabilities | kr 349,537 | kr 305,614 |
Consolidated statement of cash
Consolidated statement of cash flows - SEK (kr) kr in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Operating activities | |||||
Net income | kr 19,112 | kr 22,980 | kr 17,623 | ||
Adjustments to reconcile net income to cash | 17,638 | 17,143 | 19,931 | ||
Cash flows from (used in) Operations | 36,750 | 40,123 | 37,554 | ||
Changes in operating net assets | |||||
Inventories | (7,740) | (5,565) | 384 | ||
Customer finance, current and non-current | (1,732) | 34 | 370 | ||
Trade receivables and contract assets | 4,766 | 1,551 | (3,185) | ||
Trade payables | (1,995) | 1,385 | 4,303 | ||
Provisions and post-employment benefits | 2,339 | (118) | (2,669) | ||
Contract liabilities | 5,794 | 4,014 | (560) | ||
Other operating assets and liabilities, net | (813) | 2,701 | (2,280) | ||
Net changes in operating assets and liabilities | 619 | 4,002 | (3,637) | ||
Interest received | 344 | 8 | 763 | ||
Interest paid | (1,250) | (974) | (1,434) | ||
Taxes paid | (5,600) | (4,094) | (4,313) | ||
Cash flow from operating activities | 30,863 | 39,065 | 28,933 | ||
Investing activities | |||||
Investments in property, plant and equipment | (4,477) | (3,663) | (4,493) | ||
Sales of property, plant and equipment | 249 | 115 | 254 | ||
Acquisitions of subsidiaries and other operations | (51,995) | (389) | (9,657) | ||
Divestments of subsidiaries and other operations | 307 | 448 | 59 | ||
Product development | (1,720) | (962) | (817) | ||
Purchase of interest-bearing securities | (13,582) | (35,415) | (13,637) | ||
Sale of interest-bearing securities | 40,541 | 20,114 | 12,289 | ||
Other investing activities | (3,720) | (131) | 801 | ||
Cash flow from investing activities | (34,397) | (19,883) | (15,201) | ||
Financing activities | |||||
Proceeds from issuance of borrowings | 10,755 | 7,882 | 3,219 | ||
Repayment of borrowings | (16,029) | (5,791) | (9,031) | ||
Sale of own shares | 42 | 163 | |||
Dividends paid | (8,415) | (6,889) | (5,996) | ||
Repayment of lease liabilities | (2,593) | [1] | (2,368) | [1] | (2,417) |
Other financing activities | 352 | (2,183) | 1,570 | ||
Cash flow from financing activities | (15,930) | (9,307) | (12,492) | ||
Effect of exchange rate changes on cash | 3,763 | 563 | (2,707) | ||
Net change in cash and cash equivalents | (15,701) | 10,438 | (1,467) | ||
Cash and cash equivalents, beginning of period | 54,050 | 43,612 | 45,079 | ||
Cash and cash equivalents, end of period | kr 38,349 | kr 54,050 | kr 43,612 | ||
[1]Including advance payments. |
Consolidated statement of chang
Consolidated statement of changes in equity - SEK (kr) kr in Millions | Total | Capital stock [member] | Additional paid in capital [member] | Other reserves [member] | Retained earnings [member] | Stockholder's equity [member] | Non-controlling interests [member] | |
Beginning balance (Adjusted Balance) at Dec. 31, 2019 | kr 81,878 | kr 16,672 | kr 24,731 | kr 2,292 | kr 38,864 | kr 82,559 | kr (681) | |
Net income | 17,623 | 17,483 | 17,483 | 140 | ||||
Items that will not be reclassified to profit or loss | ||||||||
Remeasurements of defined benefits pension plans including asset ceiling | (4,618) | (4,614) | (4,614) | (4) | ||||
Revaluation of borrowings due to change in credit risk | 99 | 99 | 99 | |||||
Cash flow hedge reserve | ||||||||
Tax on items that will not be reclassified to profit or loss | 880 | (20) | 899 | 879 | 1 | |||
Cash flow hedge reserve | ||||||||
Gains/losses arising during the period | 136 | 136 | 136 | |||||
Reclassification to profit and loss | 281 | 281 | 281 | |||||
Translation reserves | ||||||||
Changes in translation reserves | (5,376) | (5,434) | (5,434) | 58 | ||||
Reclassification to profit and loss | 124 | 124 | 124 | |||||
Share of other comprehensive income of JV and associated companies | (81) | (81) | (81) | |||||
Tax on items that have been or may be reclassified to profit or loss | (86) | (86) | (86) | |||||
Other comprehensive income (loss), net of tax | (8,641) | (4,981) | (3,715) | (8,696) | 55 | |||
Total comprehensive income (loss) | 8,982 | (4,981) | 13,768 | 8,787 | 195 | |||
Transactions with owners | ||||||||
Sale of own shares | 163 | 163 | 163 | |||||
Long-term variable compensation plans | 150 | 150 | 150 | |||||
Dividends paid | (5,996) | (4,985) | (4,985) | (1,011) | ||||
Ending balance at Dec. 31, 2020 | 85,177 | 16,672 | 24,731 | (2,689) | 47,960 | 86,674 | (1,497) | |
Net income | 22,980 | 22,694 | 22,694 | 286 | ||||
Items that will not be reclassified to profit or loss | ||||||||
Remeasurements of defined benefits pension plans including asset ceiling | 3,537 | 3,532 | 3,532 | 5 | ||||
Revaluation of borrowings due to change in credit risk | 31 | 31 | 31 | |||||
Cash flow hedge reserve | ||||||||
Tax on items that will not be reclassified to profit or loss | (682) | (6) | (675) | (681) | (1) | |||
Cash flow hedge reserve | ||||||||
Gains/losses arising during the period | (542) | (542) | (542) | |||||
Reclassification to profit and loss | (96) | (96) | (96) | |||||
Translation reserves | ||||||||
Changes in translation reserves | 3,342 | 3,556 | 3,556 | (214) | ||||
Reclassification to profit and loss | 46 | 46 | 46 | |||||
Share of other comprehensive income of JV and associated companies | 28 | 28 | 28 | |||||
Tax on items that have been or may be reclassified to profit or loss | 126 | 126 | 126 | |||||
Other comprehensive income (loss), net of tax | 5,790 | 3,143 | 2,857 | 6,000 | (210) | |||
Total comprehensive income (loss) | 28,770 | 3,143 | 25,551 | 28,694 | 76 | |||
Transactions with owners | ||||||||
Sale of own shares | 42 | 42 | 42 | |||||
Long-term variable compensation plans | 93 | 93 | 93 | |||||
Dividends paid | (6,889) | (6,658) | (6,658) | (231) | ||||
Transactions with non-controlling interest | (94) | (70) | (70) | (24) | ||||
Ending balance at Dec. 31, 2021 | 107,099 | 16,672 | 24,731 | 454 | 66,918 | 108,775 | (1,676) | |
Net income | 19,112 | 18,724 | 18,724 | 388 | ||||
Items that will not be reclassified to profit or loss | ||||||||
Remeasurements of defined benefits pension plans including asset ceiling | 10,669 | 10,654 | 10,654 | 15 | ||||
Revaluation of borrowings due to change in credit risk | 1,030 | 1,030 | 1,030 | |||||
Cash flow hedge reserve | ||||||||
Gains/losses arising during the period | 3,703 | 3,703 | 3,703 | |||||
Transfer to goodwill | (3,677) | (3,677) | (3,677) | |||||
Tax on items that will not be reclassified to profit or loss | (3,067) | (970) | (2,093) | (3,063) | (4) | |||
Cash flow hedge reserve | ||||||||
Gains/losses arising during the period | (701) | (701) | (701) | |||||
Reclassification to profit and loss | 280 | 280 | 280 | |||||
Translation reserves | ||||||||
Changes in translation reserves | [1] | 7,130 | 7,273 | 7,273 | (143) | |||
Reclassification to profit and loss | [1] | (85) | (85) | (85) | ||||
Share of other comprehensive income of JV and associated companies | 49 | 49 | 49 | |||||
Tax on items that have been or may be reclassified to profit or loss | 87 | 87 | 87 | |||||
Other comprehensive income (loss), net of tax | 15,418 | 6,989 | 8,561 | 15,550 | (132) | |||
Total comprehensive income (loss) | 34,530 | 6,989 | 27,285 | 34,274 | 256 | |||
Transfer to retained earnings | 758 | (758) | ||||||
Transactions with owners | ||||||||
Long-term variable compensation plans | 89 | 89 | 89 | |||||
Dividends paid | [2] | (8,415) | (8,325) | (8,325) | (90) | |||
Transactions with non-controlling interest | 1 | 1 | 1 | |||||
Ending balance at Dec. 31, 2022 | kr 133,304 | kr 16,672 | kr 24,731 | kr 8,201 | kr 85,210 | kr 134,814 | kr (1,510) | |
[1]Changes in translation reserves include changes regarding revaluation of goodwill in local currency of SEK 5,070 million (SEK 2,646 million in 2021 and SEK -3,359 million in 2020).[2]Dividends paid per share amounted to SEK 2.50 (SEK 2.00 in 2021 and SEK 1.50 in 2020). |
Consolidated statement of cha_2
Consolidated statement of changes in equity (Parenthetical) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of changes in equity [abstract] | |||
Increase (decrease) through net exchange differences, goodwill | kr 5,070 | kr 2,646 | kr 3,359 |
Dividends paid per share | kr 2.5 | kr 2 | kr 1.5 |
A1 Significant accounting polic
A1 Significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary Of Significant Accounting Policies [Abstract] | |
A1 Significant accounting policies | Section A – Basis of presentation Significant accounting policies Basis of presentation 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, 2022, have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB, and 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 2022, the Company has applied IFRS as issued by the IASB (IFRS effective as per December 31, 2022). There is no difference between IFRS effective as per December 31, 2022, 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. The financial statements were approved by the Board of Directors on March 7 Disclosure about new standards and amendments applied as from January 1, 2022, can be found in the end of this note. The preparations for the adoption of new standards and interpretations not adopted in 2022 are disclosed at the end of this note, see heading Other. Basis of presentation The financial statements are presented in millions of Swedish Krona (SEK). They are prepared on a going concern and historical cost basis, except for certain financial assets and liabilities that are stated at fair value: financial instruments classified as fair value through profit and loss (FVTPL), financial instruments classified as fair value through other comprehensive income (FVOCI) and plan assets related to defined benefit pension plans. Assets acquired under business combinations are fair valued at initial recognition. Financial information in the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of cash flows and the consolidated statement of changes in equity with related notes are presented with two comparison years. For the consolidated balance sheet, financial information with related notes is presented with one comparison year. 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, Telefonaktie-bolaget 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 comprised of the 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. 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 transaction. 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 fair value through other comprehensive income (FVOCI) are allocated between translation differences resulting from changes in the amortized cost of the security and other changes in the carrying amount of the security. Translation differences related to changes in the amortized cost are recognized in profit or loss, and other changes in the carrying amount are recognized in Other Comprehensive Income (OCI). Foreign currency exchange effect is presented as a net item within Financial income and expenses, reported separately from other financial income and expenses items as this reflects the way the Company manages its foreign exchange risks on a net basis. Translations of 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 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 are 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. Business and operations For further disclosure, see the notes under section B. Revenue recognition The following paragraphs describe the types of contracts, when performance obligations are satisfied, and the timing of revenue recognition. They also describe the normal payment terms associated with such contracts and the resulting impact on the balance sheet over the duration of the contracts. The majority of Ericsson’s business is for the sale of standard products and services. Standard products and services Products and services are classified as standard solutions if they do not require significant installation and integration services to be delivered. Installation and integration services are generally completed within a short period of time, from the delivery of the related products. These products and services are viewed as separate distinct performance obligations. This type of customer contract is usually signed as a frame agreement and the customer issues individual purchase orders to commit to purchases of products and services over the duration of the agreement. Revenue for standard products is 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 sales, transfer of control is usually deemed to occur when the equipment arrives at the customer site. Standard product software is sold as an on-premises Software licenses are also sold on a when-and-if Transaction prices under these contracts are usually fixed, and mostly billed upon delivery of the hardware or software, or completion of installation services. A proportion of the transaction price may be billed upon formal acceptance of the related installation services, which will result in a contract asset for the proportion of the transaction price that is not yet billed. Amounts billed are normally subject to payments terms within 60 days from invoice date. Customer finance agreements are agreed separately with some customers where payment terms exceed 179 days. Revenue for recurring services such as customer support and managed services is recognized as the services are delivered, pro-rata Enterprise solutions Enterprise solutions comprise mainly of software platform solutions, delivered as-a-service pro-rata Cloud services allow the customer to use hosted software over the contract period without taking possession of the software. Cloud services are highly integrated with the software and the individual components are not considered distinct, hence all revenue is recognized in the period these services are provided. Contract duration ranges from one month to 5 years. Where equipment is supplied, lease assessment is performed. In most cases, no lease arrangement is identified. Cost of equipment is expensed as cost of sales over the contract period. Costs relating to services delivered are recognized as cost of sales when incurred. Revenue for fixed fee is recognized on a pro-rata Services sold through wholesalers or distributors are assessed for principal or agent relationship. Wholesalers are treated as agents for services that are activated upon delivery of equipment to the end users since the Company still has the primary responsibility to the customers for providing the services, hence revenue (in the gross amount) is recognized ratably from activation until the end of the contract. In some cases within the communication application platform interfaces (‘API’) business, wholesalers are viewed both as our customers and suppliers, hence revenue and costs of sales are accounted for on a gross basis when usage by the end customer occurs. For fixed fee contracts, billing is typically in advance, resulting in contract liability. For usage based contracts, billing is in arrears, resulting in a receivable. Typical credit term is 30 to 45 days. This type of business applies to the Enterprise segment. Intellectual Property Rights (IPR) This type of contract relates to the patent and licensing business. The Company has assessed that the nature of its IPR contracts is such that they provide customers a license with the right to access the Company’s intellectual properties over time, therefore revenue shall be recognized over the duration of the contract. Royalty revenue based on sales or usage is recognized when the sales and usage occur. The transaction price on these contracts is usually structured as a royalty fee based on sales or usage over the period, measured on a quarterly basis. This results in a receivable balance if the billing is performed the following quarter after measurement. Some contracts include lump sum amounts, payable either up front at commencement or on an annual basis. This results in a contract liability balance if payment is in advance of revenue, as revenue is recognized over time. Amounts billed are normally subject to payments terms within 60 days from invoice date. As described in note B1 “Segment Information”, revenue from IPR licensing contracts are allocated to the segments Networks and Cloud Software and Services. Customer contract related balances Trade receivables include amounts that are billed in accordance with customer contract terms and amounts that the Company has an unconditional right to, with only passage of time before the amounts can be billed in accordance with the customer contract terms. Customer finance credits arise from credit terms exceeding 179 days in the customer contract or a separate financing agreement signed with the customer. Customer finance is a class of financial assets that is managed separately from receivables. See note F1 “Financial risk management,” for further information on credit risk management of trade receivables and customer finance credits. Where significant financing is provided to the customer, revenue is adjusted to reflect the impact of the financing transaction. These transactions could arise from the customer finance credits above if the contracted interest rate is below the market rate or through implied financing transactions due to payment terms of more than one year from the date of transfer of control. The Company has elected to use the practical expedient not to adjust revenue for transactions with payment terms, measured from the date of transfer of control, of one year or less. Contract asset is unbilled sales amount relating to performance obligation that has been satisfied under customer contract but is conditional on terms other than only the passage of time before payment of the consideration is due. Contract liability relates to amounts that are paid by or due from customers for which performance obligations are unsatisfied or partially satisfied. Advances from customers are also included in the contract liability balance. Deferred sales commissions The Company has various incremental commission costs for internal sales personnel and channel partners that relate to the acquisition of customer contracts in the Enterprise segment. These costs are capitalized as deferred contract acquisition costs (within Other non-current Segment reporting The segment presentation, as per each segment, is based on the Company’s accounting policies as disclosed in this note. 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 CEO is defined as the CODM function in the Company. The Company’s segment disclosure about geographical areas is based on the country in which transfer of control of products and services occur. For further information, see note B1 “Segment information.” Inventories Inventories are measured at the lower of cost or net realizable value and using cost formula 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 initially recognized as CWIP (see Revenue recognition policy). When the related revenue is recognized, CWIP is derecognized and is instead recognized as Cost of sales. In note A2, “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. Long-term assets For further disclosure, see the notes under section C. 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 after-tax relation to cash flows and discount rate is applied because available models for calculating discount rate include a tax component. The effect of after-tax before-tax before-tax Additional disclosure is required in relation to goodwill impairment testing: see note A2 “Critical accounting estimates and judgments” and note C1 “Intangible assets.” Intangible assets other than goodwill Intangible assets other than goodwill comprises intangible assets acquired through business combination in order of materiality they are customer relationships, technology (patents), trademarks and software. In addition there are capitalized development expenses and separately acquired intangibles assets, mainly consisting of software. At initial recognition, acquired intangible assets relating 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 the 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 the 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 the income statement 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. Amortization of capitalized development expenses is made according to the straight-line method over their useful lives, which is normally three years. The Company has not recognized any intangible assets with indefinite useful life other than goodwill. Impairment tests are performed when there is an indication of impairment. Tests are performed in the same way as for goodwill but on an asset level, see above. However, intangible assets not yet available for use are tested annually for impairment. 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 A2, “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 and other technical assets, other equipment, tools and installations, and construction in progress. They are stated at cost less accumulated depreciation and any impairment losses. Depreciation is charged to the income statement, 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. For each item of property, plant and equipment, the Company recognizes separate components based on 1) physical component, and 2) a non-physical 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. Leases The main types of assets leased by the Company are, in the order of materiality, real estate, and vehicles and IT-equipment. Leases when the Company is the lessee The Company recognizes right-of-use non-lease At commencement date the lease liabilities are measured at the present value of the lease payments not paid at the commencement date, discounted using the Company’s incremental borrowing rate. The incremental borrowing rate is calculated considering interest swap rates, the creditworthiness of the entity that signs the lease and an adjustment for the asset being collateralized. Lease payments included in the liability are fixed payments, variable payments depending on an index or rate and penalties for termination of contracts. After the commencement date, the amount of lease liabilities is measured on an amortized cost basis using the effective interest method where the lease liabilities increase related to the accrued interest and decrease due to lease payments made. In addition, the lease liability is remeasured if there is a modification, a change in the lease term or a change in the future lease payments resulting from a change in an index or rate used to determine such lease payments. At commencement date the right-of-use After commencement date the right-of-use right-of-use right-of-use The Company applies the recognition exemption for short-term leases and leases for which the underlying asset is of low value and recognizes the lease payments for those leases as an expense on a straight-line basis over the lease term. The interest expense on lease liabilities in the income statement is presented as a component of finance costs separate from the depreciation charges for right-of-use low-value Leases when the Company is the lessor Lease contracts with the Company as lessor are classified as finance leases when substantially all 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 revenue as well as depreciation is recognized on a straight-line basis over the lease term. When the Company acts as a lessor it is mainly in relation to real estate sublease, financing and operating. Obligations For further disclosure, see the notes under section D. 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, the estimated cash flows are discounted to present value. However, the actual outflows as a result of the obligations may differ from such estimates. Provisions mainly relate to restructuring, customer and supplier-related provisions, warranty commitments and other obligations, cash-settled share-based payments, claims or obligations as a result of patent infringement, and other litigations. 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 has a constructive obligation and can reliably estimate the related liabilities. The estimate is based on the Company’s expected expenditure to settle the obligation and is adjusted when changes to the expenditure is known. Customer-related provisions mainly consist of estimated losses on onerous contracts. For losses on customer contracts, a provision equal to the total estimated loss is recorded immediately when a loss from a contract is probable and can be estimated reliably. The loss is calculated based upon the lower of the unavoidable costs to fulfill a contract and the exit penalty. The unavoidable cost includes both the incremental and allocated costs to fulfill the contract. Supplier-related provisions relate to contractual obligations, mostly relating to inventory, which has been assessed to be at risk for obsolescence based on the business forecast. Based on a risk assessment a provision equal to the best estimate of the expected obsolescence relating to the contractual commitments is provided for. 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. Share-based payment provision relates to cash-settled share-based programs. Refer to the accounting policy under “Cash-settled plans.” Other provisions relate mainly to litigations and other provisions which do not fall within the defined categories. 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 the Company’s 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. Present or possible obligations which do not meet the provision recognition criteria are reported as contingent liabilities. For further detailed information, see note D2 “Contingent liabilities.” In note A2 “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. Group structure For further disclosure, see the notes under section E. 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 a non-controlling Non-controlling The Company treats transactions with non-controlling non-controlling non-controlling At acquisition, the Company chooses 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 the 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. Any change in other comprehensive income of joint ventures and associated companies are presented as part of other comprehensive income. If the Company’s interest in an associated company is nil, the Company does not, 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 is 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 EBIT. 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 “Income tax,” 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 are included in consolidated equity since they are undistributed. They 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.” 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. Financial instruments and risk management For further disclosure, see the notes under section F. Plan assets under IAS 19 are excluded from the financial risk management policy and financial instruments disclosures in section F. 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 securities are recognized on the settlement date. Financial assets are derecognized when the rights to receive cash flows from the assets 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 transfe |
A2 Critical accounting estimate
A2 Critical accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Accounting Judgements And Estimates [Abstract] | |
A2 Critical accounting estimates and judgments | 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 The Company uses estimates and judgments in determining the amount and timing of revenue 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 discounts, performance related price and contract penalties. Transaction price, including variable considerations, is 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. This includes assessment of price concession based on latest available information on contract negotiations that could have retrospective impact on prices for products and services already ordered or delivered. Revenue is 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. These estimates comprised of prices set for similar customers and circumstances, adjusted to reflect appropriate profit margins for the market. Estimates are used to determine discounts that relate specifically to each performance obligation, thus impacting the stand-alone selling price. Judgments made in relation to accounting policies applied Management applies judgment when assessing the customer’s ability and intention to pay in a contract. The assessment is based on the latest customer credit standing and the customer’s past payment history. This assessment may change during the contract execution, and if there is evidence of deterioration in the customer’s ability or intention to pay, then no further revenue shall be recognized until the collectability criteria is met. Conversely, this assessment may also change favorably over time, upon which revenue shall now be recognized on a contract that did not initially meet the collectability criteria. Management also applies judgment in assessing criteria for contract combination. Master purchase agreement can cover a number of different businesses with the same customer and judgment is applied to assess if prices relating to the different businesses are highly dependent, in which case, contracts relating to such businesses shall be combined and the total transaction price allocated to each performance obligation based on estimated stand-alone selling prices. Judgment can also be applied on contract amendments related to prior performance obligations, in which case, the judgment is related to assess if part of the transaction price shall be applied retrospectively. Revenue for standard products 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. Judgment may be applied in determining whether risk and rewards have been transferred to the customer and whether the customer has accepted the products. Often all indicators of transfer of control are assessed together and an overall judgment formed as to when transfer of control has occurred in a customer contract. Impairment allowance on receivables and contract assets Key sources of estimation uncertainty The Company monitors the financial stability of its customers, the environments in which they operate and historical credit losses. This is combined with expectations of future economic conditions to calculate expected credit losses (ECLs). ECLs on trade receivables and contract assets are assessed using a provision matrix based on days past due for groupings of customers that have historically had similar loss patterns. The amount of ECLs is sensitive to changes in the circumstances of our customers and the environments in which they operate as well as management’s expectations of future economic conditions. Actual credit losses may be higher or lower than expected, therefore are regularly monitored to ensure the provision matrix is updated if required. Management review of current and future conditions is based on latest observable economic updates and our internal assessment of the potential impact on our customers. Total allowances for expected credit losses as of December 31, 2022 were SEK 2.5 (2.4) billion or 4% (4%) of gross trade receivables and contract assets. For further detailed information see note F1 “Financial risk management”. Customer financing receivables are valued at fair value on an individual basis. When market pricing is not available, an internal valuation model is applied considering external credit rating, political and commercial risks and bank pricing. Regular monitoring of customer behavior is also a part of the internal assessment. 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, 2022, amounted to SEK 5.7 (3.6) billion or 11% (9%) of gross inventory. For further detailed information, see note B5 “Inventories.” Acquired customer relationships, 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 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. Impairment losses for intangible assets and goodwill amounted to SEK -0.1 (-0.3) billion for 2022. At December 31, 2022, the carrying amount of acquired intangible assets amounted to SEK 110.9 (42.0) billion, including goodwill of SEK 84.6 (38.2) billion. For further discussion on goodwill, see note A1 “Significant accounting policies.” Estimates related to acquired intangible assets are based on similar assumptions and risks as for goodwill. For more information, see note C1 “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. Management judgment is required for the purchase price allocation. For example when determining the fair values of acquired intangible assets. Judgment is also required in the definition of cash-generating units for impairment testing purposes. Other judgments might result in significantly different results and financial position in the future. Leases Key sources of estimation uncertainty Estimation uncertainty exists due to possible future changes in business operations, which may impact the actual lease term of a contract. For example, an early break due to business downturn. The determination of the rates at which the lease liabilities are discounted is another uncertainty and this affects the lease liability and interest expense. This rate determines the discounting of lease liabilities and right-of-use Judgments made in relation to accounting policies applied At initial recognition and subsequent remeasurement, management estimates are made for the term applied in a lease contract. The outcome of these estimates may turn out not to match the actual outcome of the lease and may have an adverse effect on the right-of-use right-of-use Provisions and contingent liabilities Key sources of estimation uncertainty The key sources of estimation uncertainty relating to provisions are the assessment of the probability of outflow as well as whether a reliable estimate can be made. Supplier-related provisions require a reliable business forecast to estimate the expected usage of the committed inventory purchases. Therefore, estimation uncertainty exists regarding the forecast and expected usage to assess the future obsolescence risk and the provision amount. Other provisions include a provision relating to a potential deferred prosecution agreement breach resolution with the United States Department of Justice (DOJ). On March 2, 2023, the Company reached a resolution with the DOJ (the DOJ Plea Agreement) and agreed to pay a fine of approximately SEK 2.2 billion in line with the provision made in the fourth quarter 2022 for such resolution. The Company’s internal investigation and its cooperation with authorities in relation to the matters discussed in the 2019 internal Iraq investigation report remain open and ongoing. Other sources for estimation uncertainty are patent and other litigations and disputes which may continue over several years and therefore there is uncertainty in the final outcome and expected settlement. The same estimation uncertainties described above for provisions exist for contingent liabilities. Contingent liabilities include obligations that are not recognized because their amount cannot be measured reliably or because settlement is not probable. Contingent liabilities mainly relate to estimates for litigation, tax litigation, losses on customer contracts and pension guarantees. As the contingent liabilities will only be confirmed in the future based on the resolution of the litigation or dispute, management is required to estimate the possibility of an adverse outcome occurring and the potential settlement value. A contingent liability may exist at year end, and/or expense (provision) may have to be recognized at a later stage based on the latest conditions and progress of the potential obligation. Provisions and contingent liabilities are regularly reassessed based on the latest information available and are adjusted to reflect the Company’s best estimate of the eventual outcome. This means there may be changes to the values over time. At December 31, 2022, provisions amounted to SEK 11.6 (9.5) billion. For further detailed information, see note D1 “Provisions.” At December 31, 2022, contingent liabilities disclosed amounted to SEK 3.3 (1.6) billion. For further detailed information, see note D2 “Contingent liabilities” including a description of contingent liabilities which cannot be quantified. Judgments made in relation to accounting policies applied The nature and type of risks for these provisions and contingencies differ and management’s judgment is applied regarding the nature and extent of obligations in deciding on the probability of the outcome. Further judgment is required in determining the value of the present or possible obligation as this is based on the Company’s best estimate as to the expected future expenditure required to settle the obligation. Supplier payments program Judgments made in relation to accounting policies applied With the aim of increasing working capital efficiency, Ericsson continuously renegotiates payment days with suppliers. The negotiations with suppliers for payment days is an integral part of the procurement activities. Some suppliers sell their Ericsson receivables to banks and Ericsson can if requested introduce a bank interested in purchasing such receivables. Ericsson does not pay or receive a fee, nor provide additional security under the program. This arrangement does not lead to any significant change in the nature or function of Ericsson’s liabilities because the supplier invoices are considered part of working capital used in Ericsson’s normal operating cycle. The maximum credit period agreed with any supplier does not exceed six months. Therefore, these liabilities remain classified as trade payables with separate disclosure in the notes, see note B8 “Trade payables.” Pensions 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. Judgment is applied in determining the depth of the high-quality corporate bond market in each country. The impact of applying an alternative discount rate based on Swedish covered bonds is disclosed in note G1, “Post-employment benefits.” At December 31, 2022, defined benefit obligations for pensions and other post-employment benefits amounted to SEK 83.7 (113.5) billion and fair value of plan assets to SEK 60.5 (81.4) billion. For more information on estimates and assumptions, see note G1 “Post-employment benefits.” Accounting for deferred tax Key sources of estimation uncertainty D The largest amounts of tax loss carry-forwards are reported in Sweden, with an indefinite period of utilization (i.e. with no expiry date), except for withholding taxes that expire after five years. For further information, see note H1 “Taxes.” At December 31, 2022, the value of deferred tax assets amounted to SEK 19.4 (23.1) 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 taxable income, value added and other tax rules in all jurisdictions where the profits arise. 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. OECD guidelines on Pillar I (redistribution of excess profits over a certain margin to countries in proportion to local sales) and Pillar II (global minimum effective tax rate) are still not enacted in Sweden or other relevant countries´ tax laws. The likely effects of these proposals are being monitored, but it is not yet clear whether there will be a material impact on the Group´s results. |
B1 Segment information
B1 Segment information | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of operating segments [abstract] | |
B1 Segment information | Segment information New segment structure The Company started to report financial information according to the new segment structure as of the third quarter 2022. The financial information has been restated for the new reporting structure. Segments 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, three operating segments are presented; – Networks – Cloud Software and Services – Enterprise Segment Networks offers multitechnology capable Radio Access Network (RAN) solutions % ( % in 2021 and 2020 respectively) of the IPR licensing revenues are reported as part of segment Networks. Segment Cloud Software and Services in 2021 and 2020 respectively) of the IPR licensing revenues are reported as part of segment Cloud Software and Services. Segment Enterprise Enterprise Wireless Solutions including private wireless networks and wireless WAN (Cradlepoint) pre-packaged solutions. Technologies and New Businesses including mobile financial services, security solutions and advertising services. 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. Segment Enterprise has a multi-channel go-to-market Major customers The Company 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 customers, mainly consisting of communications service providers , largest customers accounted for % ( % in 2021 and % in 2020) of net sales. The largest customer accounted for approximately % ( % in 2021 and % in 2020) and the second largest customer accounted for % ( % in 2021 and % in 2020) of net sales in 2022. These customers were reported under segment Networks and Cloud Software and Services. Segment information 2022 Networks Cloud Software Enterprise Other Total Group Segment sales 193,468 60,524 15,380 2,174 271,546 271,546 Net sales 193,468 60,524 15,380 2,174 271,546 271,546 Gross income 86,368 20,106 6,946 (125) 113,295 113,295 Gross margin (%) 44.6% 33.2% 45.2% (5.7)% 41.7% 41.7% Earnings (loss) before financial items and income tax (EBIT) 1) 38,512 (1,689) (6,234) (3,569) 27,020 27,020 EBIT margin (%) 19.9% (2.8)% (40.5)% (164.2)% 10.0% 10.0% Financial income and expenses, net (2,411) Income after financial items 24,609 Income tax (5,497) Net income 19,112 Other segment items Share in earnings of JV and associated companies 30 27 — (40) 17 17 Amortizations (1,424) (122) (2,019) (12) (3,577) (3,577) Depreciations (4,073) (1,792) (515) (185) (6,565) (6,565) Impairment losses (211) (91) (87) (12) (401) (401) Restructuring charges (146) (96) (157) — (399) (399) Gains/losses on investments and sale of operations 253 — 111 (108) 256 256 1) – billion in relation to a potential resolution with the United States Department of Justice regarding, previously announced, non-criminal, alleged breaches under the deferred prosecution agreement (DPA), including estimated expenses for extended compliance monitorship, noting that the Company, on March 2, 2023, entered into the DOJ Plea Agreement with the DOJ and agreed to pay a fine of approximately SEK 2.2 billion in line with the provision made in the fourth quarter 2022, and – billion due to the divestment of IoT and other portfolio adjustments. Segment information Networks Cloud Software Enterprise Other Total Group Segment sales 167,838 56,224 6,236 2,016 232,314 232,314 Net sales 167,838 56,224 6,236 2,016 232,314 232,314 Gross income 78,869 18,829 2,891 160 100,749 100,749 Gross margin (%) 47.0% 33.5% 46.4% 7.9% 43.4% 43.4% Earnings (loss) before financial items and income tax (EBIT) 37,266 (2,234) (2,965) (287) 31,780 31,780 EBIT margin (%) 22.2% (4.0)% (47.5)% (14.2)% 13.7% 13.7% Financial income and expenses, net (2,530) Income after financial items 29,250 Income tax (6,270) Net income 22,980 Other segment items Share in earnings of JV and associated companies 40 72 — (372) (260) (260) Amortizations (1,169) (508) (830) — (2,507) (2,507) Depreciations (3,764) (1,568) (430) (189) (5,951) (5,951) Impairment losses (127) (185) (188) (11) (511) (511) Restructuring charges (262) (254) (16) (17) (549) (549) Gains/losses on investments and sale of operations 14 (51) 998 — 961 961 Segment information Networks Cloud Software Enterprise Other Total Group Segment sales 165,978 59,597 4,792 2,023 232,390 232,390 Net sales 165,978 59,597 4,792 2,023 232,390 232,390 Gross income 72,413 19,496 1,767 48 93,724 93,724 Gross margin (%) 43.6% 32.7% 36.9% 2.4% 40.3% 40.3% Earnings (loss) before financial items and income tax (EBIT) 30,851 (796) (1,935) (312) 27,808 27,808 EBIT margin (%) 18.6% (1.3)% (40.4)% (15.4)% 12.0% 12.0% Financial income and expenses, net (596) Income after financial items 27,212 Income tax (9,589) Net income 17,623 Other segment items Share in earnings of JV and associated companies 37 33 — (368) (298) (298) Amortizations (775) (612) (602) — (1,989) (1,989) Depreciations (3,764) (1,632) (407) (186) (5,989) (5,989) Impairment losses (494) (144) (32) (26) (696) (696) Restructuring charges (746) (277) (267) (16) (1,306) (1,306) Gains/losses on investments and sale of operations (129) 17 1 (30) (141) (141) Products and Services by Segments Networks Cloud Software Enterprise Other Total 2022 Products 147,997 21,105 4,923 (1) 174,024 Services 45,471 39,419 10,457 2,175 97,522 Total 193,468 60,524 15,380 2,174 271,546 2021 Products 128,951 19,267 3,955 24 152,197 Services 38,887 36,957 2,281 1,992 80,117 Total 167,838 56,224 6,236 2,016 232,314 2020 Products 122,229 20,317 3,735 (95) 146,186 Services 43,749 39,280 1,057 2,118 86,204 Total 165,978 59,597 4,792 2,023 232,390 Market area 2022 Net sales Non-current 5) Networks Cloud Software Enterprise Other Total Total South East Asia, Oceania and India 3) 23,695 9,179 77 — 32,951 999 North East Asia 4) 22,488 4,015 230 — 26,733 3,385 North America 2) 81,917 13,362 115 — 95,394 41,065 Europe and Latin America 1) 44,644 21,638 508 — 66,790 93,612 Middle East and Africa 11,707 10,472 392 — 22,571 (804) Other 1) 2) 3) 4) 6) 9,017 1,858 14,058 2,174 27,107 — Total 193,468 60,524 15,380 2,174 271,546 138,257 1) Of which in EU 6) 35,859 92,167 Of which in Sweden 6) 3,239 88,057 2) Of which in the United States 6) 109,709 39,906 3) Of which in India 6) 10,957 519 4) Of which in Japan 6) 9,965 187 4) Of which in China 6) 10,523 2,068 5) Total non-current 6) Including IPR licensing revenue reported under Market area Other which is allocated based on the country location of the customer. Other sales are attributed to countries based on the destination of products or services delivered. Market area 2021 Net sales Non-current 5) Networks Cloud Software Enterprise Other Total Total South East Asia, Oceania and India 3) 20,299 8,493 37 — 28,829 1,010 North East Asia 4) 24,464 4,405 252 — 29,121 2,700 North America 2) 66,464 10,913 79 — 77,456 11,971 Europe and Latin America 1) 38,671 21,181 420 — 60,272 52,141 Middle East and Africa 10,743 9,726 316 — 20,785 209 Other 1) 2) 3) 4) 6) 7,197 1,506 5,132 2,016 15,851 — Total 167,838 56,224 6,236 2,016 232,314 68,031 1) Of which in EU 6) 31,307 50,428 Of which in Sweden 6) 2,349 45,997 2) Of which in the United States 6) 79,896 10,749 3) Of which in India 6) 7,482 484 4) Of which in Japan 6) 13,678 261 4) Of which in China 6) 10,078 2,202 5) Total non-current 6) Including IPR licensing revenue reported under Market area Other which is allocated based on the country location of the customer. Other sales are attributed to countries based on the destination of products or services delivered. Market area 2020 Net sales Non-current 5) Networks Cloud Software Enterprise Other Total Total South East Asia, Oceania and India 3) 21,464 8,547 37 — 30,048 812 North East Asia 4) 27,120 5,955 259 — 33,334 2,648 North America 2) 62,199 11,508 68 — 73,775 12,749 Europe and Latin America 1) 33,257 22,116 372 — 55,745 49,895 Middle East and Africa 13,281 9,676 341 — 23,298 140 Other 1) 2) 3) 4) 6) 8,657 1,795 3,715 2,023 16,190 — Total 165,978 59,597 4,792 2,023 232,390 66,244 1) Of which in EU 6) 29,501 48,133 Of which in Sweden 6) 1,123 43,627 2) Of which in the United States 6) 77,835 11,533 3) Of which in India 6) 6,970 407 4) Of which in Japan 6) 12,150 272 4) Of which in China 6) 18,745 2,136 5) Total non-current 6) Including IPR licensing revenue reported under Market area Other which is allocated based on the country location of the customer. Other sales are attributed to countries based on the destination of products or services delivered. |
B2 Net sales
B2 Net sales | 12 Months Ended |
Dec. 31, 2022 | |
Revenue [abstract] | |
B2 Net sales | Net sales Net sales 2022 2021 2020 Hardware 119,215 106,399 96,294 Software 54,809 45,798 49,892 Services 97,522 80,117 86,204 Net sales 271,546 232,314 232,390 Of which IPR licensing revenues 10,399 8,134 9,975 Of which export sales from Sweden 153,833 140,898 132,269 |
B3 Expenses by nature
B3 Expenses by nature | 12 Months Ended |
Dec. 31, 2022 | |
Expenses by nature [abstract] | |
B3 Expenses by nature | Expenses by nature Expenses by nature 2022 2021 2020 Goods and services 147,023 119,787 120,102 Employee remuneration 89,191 77,462 74,645 Amortizations and depreciations 10,142 8,458 7,978 Impairments, obsolescence allowances and revaluation 4,383 1,456 3,082 Inventory increase, net (7,738) (5,565) (44) Additions to capitalized development (1,720) (962) (817) Expenses charged to cost of sales and operating expenses 241,281 200,636 204,946 Total restructuring charges in 2022 were SEK 0.4 (0.5) billion. Restructuring charges are included in the expenses presented above. Restructuring charges by function 2022 2021 2020 Cost of sales 195 273 725 R&D expenses 54 137 411 Selling and administrative expenses 150 139 170 Total restructuring charges 399 549 1,306 |
B4 Other operating income and e
B4 Other operating income and expenses | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
B4 Other operating income and expenses | Other operating income and expenses Other operating income and expenses 2022 2021 2020 Other operating income Gains on sales of intangible assets and PP&E 85 13 64 Gains on investments and sale of operations 1) 701 1,199 347 Other operating income 445 314 750 Total other operating income 1,231 1,526 1,161 Other operating expenses Losses on sales of intangible assets and PP&E (54) (3) — Losses on investments and sale of operations 1) (445) (238) (488) Impairment of goodwill 2) — (112) — Other operating expenses 3) (3,994) (811) (11) Total other operating expenses (4,493) (1,164) (499) 1) Information about divestments is presented in note E2 “Business combinations.” 2) For more information about the impairment of goodwill, see note C1 “Intangible assets.” 3) 2022 includes a provision of SEK -2.3 billion in relation to a potential resolution with the United States Department of Justice regarding previously announced, non-criminal, alleged breaches under the deferred prosecution agreement (DPA), including estimated expenses for the extended compliance monitorship, noting that the Company, on March 2, 2023, entered into the DOJ Plea Agreement with the DOJ and agreed to pay a fine of approx. SEK 2.2 billion, and charges of - billion related to the divestment of IoT and other portfolio adjustments. |
B5 Inventories
B5 Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Inventories [Abstract] | |
B5 Inventories | Inventories Inventories 2022 2021 Raw materials, components, consumables and manufacturing work in progress 16,873 11,584 Finished products 14,376 11,207 Contract work in progress 14,597 12,373 Inventories, net 45,846 35,164 The amount of inventories recognized as expense and included in Cost of sales was SEK 68,838 (60,362) million. Contract work in progress consists of costs incurred to date on customer projects where the performance obligations are yet to be fully delivered. These costs will be recognized as cost of sales when the related revenue is recognized in the income statement. The Company has had to increase its buffer of vital components to mitigate the supply chain issues affecting electronic components globally. Inventory allowance is reviewed periodically to ensure obsolete components are adequately provided for. The Company’s current climate-related strategy’s aim to have a portfolio of energy performance products may affect recoverability of inventories as customers push for fast substitution and uptake of volume towards the most energy efficient products. The current radio product offering largely reflects the latest energy efficient technologies and although ongoing improvements are expected in future, these factors have been included in the inventory obsolescence risk assessment at year end. Reported amounts are net of obsolescence allowances of SEK 5,716 (3,676) million. Movements in obsolescence allowances 2022 2021 Opening balance 3,676 3,627 Additions 3,927 1,378 Utilization (2,115) (1,457) Translation differences 228 128 Closing balance 5,716 3,676 Physical risks of climate changes on manufacturing facilities have also been identified as a potential climate-related risk to the Company’s operations, although these risks are mostly mitigated through having appropriate insurance policies for damage to inventories and fixed assets, as well as potential business interruptions, combined with having a globally spread production capability. |
B6 Customer contract related ba
B6 Customer contract related balances | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
B6 Customer contract related balances | Customer contract related balances Trade receivables, customer finance, contract assets, contract liabilities and 2022 2021 Customer finance credits 1) 5,370 3,287 Trade receivables 2) 48,413 45,399 Contract assets 9,843 10,506 Contract liabilities 42,251 32,834 Deferred sales commissions 3) 754 316 1) Of the total Customer finance credits balance, SEK 4,955 (2,719) million is current 2) Total trade receivables include SEK 70 (0) million relating to associated companies. 3) Of the total Deferred sales commissions balance SEK 345 (316) million is current. The non-current non-current non-current”) Deferred sales commissions amortized in the year is SEK 288 (143) million. There were no material impairment losses incurred in 2022 and 2021. For information about credit risk and impairment of customer contract related balances, see note F1, “Financial risk management.” Revenue recognized in the period 2022 2021 Revenue recognized relating to the opening contract liability balance 25,601 19,745 Revenue recognized relating to performance obligations satisfied, or partially satisfied, in prior reporting periods (7) (186) Revenue recognized relating to perf orman Transaction price allocated to the remaining performance obligations 2022 2021 Aggregate amount of transaction price allocated to unsatisfied, or partially unsatisfied, performance obligations 169,609 138,234 The Company expects that the transaction price allocated to the remaining performance obligations will be converted into revenue in accordance with the following approximation: 65% in 2023, 15% in 2024 and remaining 20% in 2025 and beyond. |
B7 Other current receivables
B7 Other current receivables | 12 Months Ended |
Dec. 31, 2022 | |
Current assets [abstract] | |
B7 Other current receivables | Other current receivables Other current receivables 2022 2021 Prepaid expenses 2,506 2,290 Advance payments to suppliers 473 426 Derivative assets 1) 1,121 317 Other taxes 2) 3,349 3,022 Other 2,239 1,601 Total 9,688 7,656 1) See also note F1 “Financial risk management.” 2) Other taxes mainly includes VAT receivables. |
B8 Trade payables
B8 Trade payables | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
B8 Trade payables | Trade payables Trade payables 2022 2021 Trade payables to associated companies and joint ventures 179 115 Trade payables, excluding associated companies and joint ventures 1) 38,258 35,569 Total 38,437 35,684 1) Of the trade payable amount SEK 9.7 (8.3) billion relates to supplier invoices under Ericsson’s supplier payments program. |
B9 Other current liabilities
B9 Other current liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
B9 Other current liabilities | Other current liabilities Other current liabilities 2022 2021 Accrued interest 335 177 Accrued expenses 35,896 30,837 Of which employee-related 19,630 15,380 Of which supplier-related 9,849 9,100 Of which other 1) 6,417 6,357 Derivative liabilities 2) 2,621 762 Other 3) 7,341 6,145 Total 46,193 37,921 1) Major balance relates to accrued expenses for customer projects. 2) See also note F1 “Financial risk management.” 3) Includes items such as VAT and other payroll ded uctio |
C1 Intangible assets
C1 Intangible assets | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
C1 Intangible assets | Intangible assets Intangible assets 2022 2021 Capitalized Goodwill Customer relationships, 1) Capitalized Goodwill Customer relationships, 1) Cost Opening balance 19,158 44,963 55,936 18,049 41,592 53,913 Additions 1,720 — 126 962 — 131 Balances regarding acquired/divested business 2) — 40,881 23,451 — 725 (95) Disposals — — (452) — — (18) Translation differences 218 5,070 3,793 147 2,646 2,005 Closing balance 21,096 90,914 82,854 19,158 44,963 55,936 Accumulated amortizations Opening balance (11,885) — (44,456) (10,447) — (41,721) Amortizations (1,586) — (1,991) (1,343) — (1,164) Balances regarding divested business 2) — — 22 — — — Disposals — — 452 — — 18 Translation differences (175) — (2,797) (95) — (1,589) Closing balance (13,646) — (48,770) (11,885) — (44,456) Accumulated impairment losses Opening balance (3,745) (6,759) (7,650) (3,745) (6,647) (7,387) Balances regarding divested business 2) — 415 81 — — — Impairment losses — — (61) — (112) (201) Translation differences — — (114) — — (62) Closing balance (3,745) (6,344) (7,744) (3,745) (6,759) (7,650) Net carrying value 3,705 84,570 26,340 3,528 38,204 3,830 1) Intellectual property rights. 2) For more information on acquired/divested businesses, see note E2 “Business combinations.” The total goodwill for the Company is SEK 84.6 (38.2) billion and is allocated to the operating segments s and Cradlepoint SEK 9.0 billion. Impairment losses In segment Enterprise there was an impairment loss of intangibles of SEK 61 million in a business related to the Internet of Things during 2022 due to a strategic decision to discontinue the business operation, which is reported on the line item Research and development expenses in the income statement . In 2021 there was an impairment loss of SEK 176 million in the restated segment Enterprise and an impairment loss of SEK 137 million in the restated segment Cloud Software and Services. The impairment losses for 2020 is considered immaterial. Intangible assets The carrying value of customer relationships, IPR, and other intangible assets is SEK 26.3 (3.8) billion, of which customer relationships, acquired through the Vonage transaction, amount to SEK 18.8 billion with a remaining amortization period of 7 to 10 years. Capitalized development expenses The Company capitalizes 5G radio product development costs which are amortized over a period of 3 years. In considering the Company’s climate-related aim to have more energy efficient products, the Company continually assesses the impact of future radio product improvements on the recoverability of such development costs. The conclusion is that the carrying value at year end is appropriate as the amortization period and product development lifecycle are relatively short. Goodwill allocation Goodwill from the previous CGU Digital Services has been transferred to the new CGU Cloud Software and Services and goodwill from the Vonage acquisition during the year has been allocated to the Vonage CGU within segment Enterprise. Other than that , Impairment tests Each of segment Networks and segment Cloud Software and Services is a CGU and there are several CGUs within segment Enterprise. The value in use method has been used for goodwill impairment testing, which means that the recoverable amounts for CGUs 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 EBIT (based on EBIT margin or cost of goods sold and operating expenses relative to sales) – Related 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 2023–2027 for key telecom industry parameters: – By 2027, about 35 years after the introduction of digital mobile technology, it is predicted that there will be 9.1 billion mobile subscriptions (excl. Cellular IoT). Out of all mobile subscriptions, 7.9 billion will be associated with a smartphone. – The number of 5G subscriptions is forecasted to reach 4.3 billion (excluding Cellular IoT) by the end of 2027. – By 2027, about 42 billion connected devices are forecasted, of which over 30 billion will be related to Internet of Things, IoT. Connected IoT devices including connected cars, machines, meters, sensors, point-of-sale – Cellular IoT is predicted to grow from 3.1 billion devices in end of 2023 to 5.0 billion devices in end of 2027. – Mobile data traffic volume is estimated to increase by more than two times in the period 2023–2027. The mobile traffic is driven by smartphone users and video traffic, with mobile video traffic forecasted to grow by almost 30% annually through 2027 to account for approximately 80% 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 and data. The forecasted cash flows are based on a five-year business plan. The CGUs Vonage and Cradlepoint have assumed a forecasted growth above 20% per year over the next five years followed by a gradual decline in growth rates. The assumptions reflect the expected high growth market conditions in which both CGUs are present. Market maturity and market growth at long term sustainable levels (nominal rates described below) are not expected to be reached until after ten years. It is noted that it is more difficult to estimate market conditions the further into the future they are forecasted. Sales growth in the Enterprise segment is driven by the adoption of 5G and the convergence of 5G and Cloud communications in the enterprise market. The Enterprise Private Network and Wireless WAN addressable market is expected to grow with a CAGR of 34% 2022–2025 and by 2025 the Cloud Communications total addressable market is estimated to reach USD 73 billion, up from USD 41 billion in 2021. Projections over extended time periods where the estimated cash flow growth exceeds that of the market in which the Company operates are inherently uncertain. The recoverable amount for CGU Vonage would equal the carrying value, if the expected sales growth per year is reduced by circa 3% until assuming steady state, or if a 4% decrease in the long term EBIT margin would be applied. Likewise, an increase in the applied WACC for Vonage by 1.5% would give the same outcome. For the other CGUs there are no reasonably possible changes that would lead to the carrying value not being recoverable. The growth rates after the forecast period have increased this year as a result of the increase in risk-free rates. All CGUs use a nominal annual growth rate of 2.0% (1.5%) per year after the forecast period, except Vonage which uses a rate of 3.5%. The higher rate for Vonage is due to the higher risk-free rate implied by USD treasury bonds, which are used as the cash flows are forecasted in USD. An after-tax after-tax Post-tax CGU 2022 2021 Networks 9.0 7.5 Cloud Software and Services 10.0 8.0 Vonage 9.5 — Cradlepoint 9.5 10.0 iconectiv 10.0 9.0 Emodo 14.5 12.0 Red Bee Media 11.0 9.5 The Company’s discounting is based on after-tax after-tax before-tax before-tax Risk assessment on the business plans is carried out on a regular basis and an impairment review will be performed if conditions suggest that such assets may be impaired. |
C2 Property, Plant and Equipmen
C2 Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of information about property, plant and equipment (abstract) | |
C2 Property, plant and equipment | Property, plant and equipment Property, plant and equipment 2022 Real estate Machinery and other Other equipment, Construction in progress Total Cost Opening balance 6,946 3,549 35,009 705 46,209 Additions 47 200 2,705 1,525 4,477 Balances regarding acquired/divested business 37 — 138 11 186 Disposals (275) (421) (1,638) (253) (2,587) Reclassifications 287 213 593 (1,093) — Translation differences 481 284 1,413 78 2,256 Closing balance 7,523 3,825 38,220 973 50,541 Accumulated depreciations Opening balance (3,741) (2,678) (24,769) — (31,188) Depreciations (502) (373) (3,239) — (4,114) Disposals 226 434 1,509 — 2,169 Translation differences (265) (180) (1,107) — (1,552) Closing balance (4,282) (2,797) (27,606) — (34,685) Accumulated impairment losses Opening balance (283) (104) (1,054) — (1,441) Impairment losses (115) (4) (146) (9) (274) Disposals 44 3 145 9 201 Translation differences (31) (9) (66) — (106) Closing balance (385) (114) (1,121) — (1,620) Net carrying value 2,856 914 9,493 973 14,236 Contractual commitments for the acquisition of property, plant and equipment as per December 31, 2022, amounted to SEK 510 (477) million. Property, plant and equipment 2021 Real estate Machinery and other Other equipment, Construction in progress Total Cost Opening balance 6,503 3,030 32,890 995 43,418 Additions 54 207 2,215 1,187 3,663 Balances regarding acquired/divested business — — (75) — (75) Disposals (348) (135) (2,145) (94) (2,722) Reclassifications 356 270 813 (1,439) — Translation differences 381 177 1,311 56 1,925 Closing balance 6,946 3,549 35,009 705 46,209 Accumulated depreciations Opening balance (3,405) (2,393) (22,863) — (28,661) Depreciations (441) (286) (2,947) — (3,674) Balances regarding divested business — — 50 — 50 Disposals 315 136 1,956 — 2,407 Reclassifications 1 2 (3) — — Translation differences (211) (137) (962) — (1,310) Closing balance (3,741) (2,678) (24,769) — (31,188) Accumulated impairment losses Opening balance (275) (75) (1,024) — (1,374) Impairment losses (22) (30) (146) — (198) Disposals 29 5 176 — 210 Translation differences (15) (4) (60) — (79) Closing balance (283) (104) (1,054) — (1,441) Net carrying value 2,922 767 9,186 705 13,580 |
C3 Leases
C3 Leases | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Leases [Abstract] | |
C3 Leases | Leases Leases with the Company as lessee Right-of-use 2022 2021 Real estate Vehicles Other Total Real estate Vehicles Other Total Cost Opening balance 13,756 930 171 14,857 11,784 823 171 12,778 Additions 1,650 168 136 1,954 1,759 258 — 2,017 Balances regarding acquired/divested business 334 — — 334 (10) (11) — (21) Terminations (719) (178) — (897) (395) (180) — (575) Translation differences 874 78 (4) 948 618 40 — 658 Closing balance 15,895 998 303 17,196 13,756 930 171 14,857 Accumulated depre ciati Opening balance (5,687) (495) (79) (6,261) (3,700) (390) (55) (4,145) Depreciations (2,141) (250) (60) (2,451) (2,002) (251) (24) (2,277) Balances regarding divested business — — — — 8 6 — 14 Terminations 393 159 — 552 233 158 — 391 Translation differences (354) (43) 1 (396) (226) (18) — (244) Closing balance (7,789) (629) (138) (8,556) (5,687) (495) (79) (6,261) Accumulated impairment losses Opening balance (303) — — (303) (340) — — (340) Impairment losses (66) — — (66) — — — — Terminations 27 — — 27 63 — — 63 Translation differences (32) — — (32) (26) — — (26) Closing balance (374) — — (374) (303) — — (303) Financial sublease Opening balance (345) — — (345) (313) — — (313) Translation differences (51) — — (51) (32) — — (32) Closing balance (396) — — (396) (345) — — (345) Net carrying value 7,336 369 165 7,870 7,421 435 92 7,948 Lease liabilities The lease liabilities amounted to SEK 9,304 (9,303) million, of which SEK 2,486 (2,224) million is classified as current. The remaining contractual maturities as of December 31, 2022, is shown in note D4 “Contractual obligations.” Lease cost The total lease cost amounted to SEK 3,775 (3,375) million, of which depreciation was SEK 2,451 (2,277) million, impairment losses were SEK -66 (0) million, lease expense relating to low-value Cash payments Cash payments 2022 2021 Repayments of the lease liabilities 1) (2,593 ) (2,368 ) Interest expense of the lease liabilities (464 ) (426 ) Low-value (516 ) (434 ) Variable lease payments not included in the measurement of the lease liabilities (278 ) (238 ) Total cash outflow (3,851 ) (3,466 ) 1) Including advance payments. Future cash outflow Future cash outflows from leases not yet commenced in 2022 Leases with the Company as lessor Lessor leases relate to subleases of real estate. These lease contracts vary in length from 1 to 10 years. Receivables related to subleases in 2022 amounted to SEK 62 (70) million for operating leases and to SEK 75 (64) million for financial leases. Interest income from financial subleases was SEK 8 (9) million. At December 31, 2022, future minimum payment Future minimum payment receivables Financial leases Operating leases 2023 77 67 2024 80 28 2025 14 20 2026 — 19 2027 — 11 2028 and later — 3 Total 171 148 |
D1 Provisions
D1 Provisions | 12 Months Ended |
Dec. 31, 2022 | |
Provisions [abstract] | |
D1 Provisions | Provisions Provisions Restructuring Customer Supplier Warranty Share-based Other Total 2022 Opening balance 639 3,440 1,231 1,074 1,591 1,529 9,504 Additions 400 1,024 561 368 303 4,129 6,785 Balances regarding acquired business 1) — — — — — 1,050 1,050 Reversal of excess amounts (54) (585) (960) (120) (99) (220) (2,038) Charged to income statement 4,747 Utilization 1) (338) (824) (144) (646) (897) (1,724) (4,573) Reclassifications (21) (31) 32 — — 595 575 Translation differences 43 69 2 2 87 82 285 Closing balance 669 3,093 722 678 985 5,441 11,588 Of which current provisions 448 1,215 198 572 642 4,554 7,629 Of which non-current 221 1,878 524 106 343 887 3,959 2021 Opening balance 1,200 3,850 791 987 2,107 1,531 10,466 Additions 303 795 1,020 455 1,367 483 4,423 Reversal of excess amounts (98) (491) (228) (153) (122) (86) (1,178) Charged to income statement 3,245 Utilization (785) (841) (175) (109) (1,837) (462) (4,209) Reclassifications (1) 104 (179) (107) — 39 (144) Translation differences 20 23 2 1 76 24 146 Closing balance 639 3,440 1,231 1,074 1,591 1,529 9,504 Of which current provisions 411 1,488 1,231 320 915 1,417 5,782 Of which non-current 228 1,952 — 754 676 112 3,722 1) Includes a provision from acquired business in the third quarter 2022, which was utilized in the fourth quarter 2022. For more information see note E2 “Business combinations”. Provisions will fluctuate over time depending on the 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. 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 favourable than anticipated, which affect the provision balance as a reversal. In other cases, the outcome can be negative, and if so, a charge is recorded in the income statement. For 2022, the total provision value is SEK 11.6 (9.5) billion, of which SEK 4.0 (3.7) billion is classified as non-current. 2.3 billion provision raised in the fourth quarter of 2022 in relation to a potential resolution with the United States Department of Justice (DOJ), noting that the Company, on March 2, 2023, entered into the DOJ Plea Agreement with the DOJ and agreed to pay a fine of approx. SEK 2.2 billion. Refer to the section “Other provisions” below. For more information, see note A1 “Significant accounting policies” and note A2 “Critical accounting estimates and judgments” for key estimation uncertainty regarding timing and amount. Restructuring provisions Restructuring provisions relate to structural efficiency programs that are planned and controlled by management and have a material impact on either the scope of the business undertaken or the manner in which the business is conducted. The scope of the structural efficiency measures involves service delivery, supply and manufacturing, R&D, and selling and administration expenses. Restructuring provisions are recognized based on the expected costs of the respective restructuring programs and primarily consist of personnel costs. Estimation uncertainty exists regarding the execution of the restructuring programs, which may impact the expected timing and realization of costs. Restructuring provisions are reviewed and adjusted regularly based on management’s best estimate. The expected timing and amount of outflows are dependent on whether the plan execution is in line with management’s assessment. The majority of the restructuring provision will be utilized within 1 year. For more information about the restructuring charges booked in the income statement, see note B3 “Expenses by nature.” Customer-related provisions Customer-related provisions mainly consist of provisions for losses on customer contracts. To measure the customer-related provisions, management estimates the unavoidable costs to fulfill the obligations under the customer contract. If the exit penalty is lower than the estimated costs to fulfill the contract, then the provision value is limited to the exit penalty value. The unavoidable costs to fulfill the contract sometimes differ from management’s estimates. Provisions raised for loss-making customer contracts are therefore regularly reviewed and adjusted based on the latest information available considering the realization of the costs estimated. The expected timing and amount of outflows are dependent on whether the customer contract execution is in line with management’s assessment. The majority of the customer-related provisions will be utilized over 4 years. Supplier-related provisions Supplier-related provisions are for supplier claims/guarantees based on the contractual obligations mostly relating to inventory. The provision is calculated by comparing the committed inventory purchases with the expected usage based on forecast and any excess is provided for based on an assessment of the risk of obsolescence. Therefore, estimation uncertainty exists regarding the forecast and expected usage as well as the assessment of future obsolescence, as this is based on management’s expectations. The expected timing and amount of outflows are dependent on the actual outcome of the supplier claims and guarantees. The majority of the supplier-related provisions will be utilized over 2 years. 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. Uncertainty exists regarding the timing and amount as management utilizes the historical trends to estimate the warranty provisions as well as the cost to repair or replace, which may differ from the actual outcomes. New product warranty provisions require further estimation since historical information is not available. These provisions do not include costs for service in additions within customer contracts that are accounted for as separate performance obligations. The expected timing and amount of outflows are dependent on the actual product faults which may occur. The majority of the warranty provisions are expected to be utilized within 1 year. Share-based payments provisions Share-based payments provisions relate to cash-settled share-based programs and are based on the present period’s best estimate of the eventual pay-outs, Other provisions The Company made a provision in the fourth quarter of 2022 of SEK 2.3 billion in relation to a potential resolution with the United States Department of Justice (DOJ) regarding previously announced, non-criminal, billion for the previously announced extended compliance monitorship. On March 2, 2023, the Company reached a resolution (DOJ Plea Agreement) with the DOJ regarding non-criminal breaches under its DPA. Under the DOJ Plea Agreement, the Company has agreed to pay a fine of USD 206,728,848 (approximately SEK 2.2 billion). The entry of the DOJ Plea Agreement will bring the DPA to an end. The Company’s internal investigation and its cooperation with authorities in relation to the matters discussed in a 2019 Iraq-related internal investigation report remain open and ongoing. The Russian invasion of Ukraine has had an adverse effect on the operations of the Company’s business in Russia. As previously reported, the Company has provided SEK 0.9 billion for asset impairment and other costs in the first quarter 2022. Operations in Russia were suspended in the first quarter, and in December 2022, the Company announced that it has divested its customer support business in Russia. All costs relating to the business exit and divestment were included in the provision and fully utilized by year end. Other than the provision relating to the DOJ, other provisions relate mostly to the divestment of the IoT business, litigation and patent infringement disputes. Management regularly assesses the likelihood of any adverse outcomes and if deemed probable then a provision is raised based on the best estimate of the expenditure required to settle with the counterpart. There is uncertainty in the final outcome and settlement, therefore management reviews the estimation regularly. Outflows relating to litigation are inherently uncertain in what applies to timing and amount, and therefore most of the provisions are expected used |
D2 Contingent liabilities
D2 Contingent liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of contingent liabilities [abstract] | |
D2 Contingent liabilities | Contingent liabilities Contingent liabilities 2022 2021 Contingent liabilities 3,322 1,614 Total 3,322 1,614 Contingent liabilities m a ossi All ongoing legal and tax proceedings have been evaluated, their potential economic outflows and probability estimated, and ne cess As part of its defense to a now settled patent infringement lawsuit filed by Ericsson in 2013 in the Delhi High Court against Indian handset company Micromax, Micromax filed a complaint against Ericsson with the Competition Commission of India (CCI). The CCI decided to refer the case to the Director General’s Office for an in-depth In April 2019, Ericsson was informed by China’s State Administration for Market Regulation (SAMR) Anti-monopoly bureau that SAMR has initiated an investigation into Ericsson’s patent licensing practices in China. Ericsson is cooperating with the investigation, which is still in a fact-finding phase. The next steps include continued fact finding and meetings with SAMR in order to facilitate the authority’s assessments and conclusions. The above matters relating to Micromax and SAMR are possible obligations which cannot be quantified and are, therefore, not included in the contingent liability amount disclosed in the table. |
D3 Assets pledged as collateral
D3 Assets pledged as collateral | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Assets Pledged As Collateral [Abstract] | |
D3 Assets pledged as collateral | Assets pledged as c ol Assets pledged as collateral 2022 2021 Chattel mortgages 1) 6,333 6,341 Bank deposits 2) 893 532 Total 7,226 6,873 1) See also note G1 “Post-employment benefits.” 2) See also note F1 “Financial risk mana geme |
D4 Contractual obligations
D4 Contractual obligations | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Contractual Obligations [Abstract] | |
D4 Contractual obligations | Contractual obligations Contractual obligations, SEK billion Payment due by period <1 1–3 3–5 >5 2022 year years years years Total Current and non-current 1) 6.3 12.9 9.1 11.2 39.5 Lease obligations 2) 3.0 4.4 2.1 1.1 10.6 Other non-current — 0.6 — 0.1 0.7 Purchase obligations 3) 17.8 3.1 0.2 — 21.1 Trade payables 38.4 — — — 38.4 Commitments for customer finance 4) 44.3 8.6 1.2 — 54.1 Derivatives liabilities 4) 0.9 1.1 0.6 — 2.6 Total 110.7 30.7 13.2 12.4 167.0 2021 Current and non-current 1) 9.8 10.4 3.1 10.1 33.4 Lease obligations 2) 2.6 4.3 2.3 1.4 10.6 Other non-current — 1.0 — 0.6 1.6 Purchase obligations 3) 23.2 4.1 0.3 — 27.6 Trade payables 35.7 — — — 35.7 Commitments for customer finance 4) 34.4 9.7 3.2 — 47.3 Derivatives liabilities 4) 0.4 0.4 — — 0.8 Total 106.1 29.9 8.9 12.1 157.0 1) Current and non-current 2) Future lease obligations, nominal lease liability, see also note C3 “Leases.” 3) The amounts of purchase obligations are gross, before deduction of any related provisions. 4) See also note F1 “Financial risk management.” Contractual purchase obligations at the end of 2022 were lower than the previous year end as supply chain constraints eased in the fourth quarter of 2022. However, contractual obligations have increased due to unfavorable exchange rate movements and an increase in cu stom |
E1 Equity
E1 Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [abstract] | |
E1 Equity | Equity Capital stock Capital stock Parent Company Class A Class B Total December 31, 2022 1,309 15,363 16,672 December 31, 2021 1,309 15,363 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, 2022, the total number of treasury shares was 4,009,306 (4,009,306 in 2021 and 6,043,960 in 2020) Class B s har Number of shares 2022 Class A Class B Total As of January 1 261,755,983 3,072,395,752 3,334,151,735 As of December 31 261,755,983 3,072,395,752 3,334,151,735 2021 Class A Class B Total As of January 1 261,755,983 3,072,395,752 3,334,151,735 As of December 31 261,755,983 3,072,395,752 3,334,151,735 Dividend proposal The Board of Directors propose to the Annual General Meeting a dividend to the shareholders of SEK 2.70 per share (SEK 2.50 in 2021 and SEK 2.00 in 2020), representing a total dividend of SEK 9.0 (8.3) billion. The dividend is proposed to be paid in two equal installments, SEK 1.35 per share with the record date March 31, 2023 (payment date April 5, 2023), and SEK 1.35 per sh ar Additional paid in capital Additional paid in capital relates to payments made by owners and includes share premiums paid. Other reserves Other reserves include translation reserves, cash flow hedges and revaluation of borrowings. Translation reserves The translation reserves comprise all foreign currency translation reserves arising from the translation of the financial statements of foreign operations to the Group presentation currency and changes regarding revaluation of excess value in local currency. Cash flow hedge reserve For further information, see note F1 “Financial risk management.” Revaluation of borrowings For further information, see note F4 “Interest-bearing liabilities.” 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. 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. For more information, see note G1 “Post-employment benefits.” Non-controlling Equity in a subsidiary not attributable, directly or indirectly, to a parent. Other reserves 2022 2021 SEK million Translation Cash flow Revaluation Total Translation Cash flow Revaluation Total Opening balance 1,206 (411) (341) 454 (2,424) 101 (366) (2,689) Other comprehensive income Items that will not be reclassified to profit or loss Revaluation of borrowings due to change in credit risk — — 1,030 1,030 — — 31 31 Cash flow hedge reserve Gains/losses arising during the period — 3,703 — 3,703 — — — — Transfer to goodwill — (3,677) — (3,677) — — — — Tax on items that will not be reclassified to profit or loss — (758) (212) (970) — — (6) (6) Items that have been or may be reclassified to profit Cash flow hedge reserve Gains/losses arising during the period — (701) — (701) — (542) — (542) Reclassification to profit and loss — 280 — 280 — (96) — (96) Translation reserves Changes in translation reserves 7,273 — — 7,273 3,556 — — 3,556 Reclassification to profit and loss (85) — — (85) 46 — — 46 Share of other comprehensive income of JV and associated companies 49 — — 49 28 — — 28 Tax on items that have been or may be reclassified to profit — 87 — 87 — 126 — 126 Other comprehensive income, net of tax 7,237 (1,066) 818 6,989 3,630 (512) 25 3,143 Total comprehensive income 7,237 (1,066) 818 6,989 3,630 (512) 25 3,143 Transfer to retained earnings — 758 — 758 — — — — Closing balance 8,443 (719) 477 8,201 1,206 (411) (341) 454 |
E2 Business combinations
E2 Business combinations | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about business combination [abstract] | |
E2 Business combinations | Business combinations Acquisitions Acquisitions 2020–2022 2022 2021 2020 Consideration Purchase price paid on acquisition 1) 51,297 256 9,534 Deferred consideration/Others 2) 1,972 — 314 Total consideration, all cash and cash equivalents 53,269 256 9,848 Net assets (liabilities) acquired Intangible a s 23,554 (95) 3,583 Property, plant and equipment 186 1 55 Right-of-use 334 — 126 Investments in associates — — 167 Cash and cash equivalents 521 — 314 Other assets 5,344 21 1,292 Provisions, incl. post-employment benefits (1,050) — (16) Other liabilities (16,916) (348) (2,781) Total identifiable net assets (liabilities) 11,973 (421) 2,740 Goodwill 41,296 677 7,108 Total 53,269 256 9,848 Acquisition-related costs 3) 436 11 92 1) 2022 purchase price to acquire shares outstanding is net of hedge release of SEK 3.7 billion. 2) Deferred consideration relates to the pre-combination 3) Acquisition-related costs are included in Selling and administrative expenses in the consolidated income statement. In 2022, the Company made acquisitions resulting in a negative cash flow effect from business combinations amounting to SEK 51,734 (256) million, see also note H3 “Statement of cash flows.” The cash flow effect differs from the total consideration in the above table due to the acquired cash of SEK 0.5 billion and the portion of deferred consideration not paid by year end of SEK 1.0 billion. Vonage US-based Vonage 2022 Consideration Purchase price paid on acquisition 1) 51,297 Deferred consideration 2) 1,972 Total consideration, all cash and cash equivalents 53,269 Net assets (liabilities) acquired Intangible assets 23,554 Property, plant and equipment 186 Right-of-use 334 Deferred tax assets 2,353 Trade receivables 1,094 Cash and cash equivalents 521 Other assets 1,896 Provisions (1,050) Deferred tax liabilities (6,264) Borrowings (6,473 Lease liabilities (403) Other liabilities (3,775) Total identifiable net assets (liabilities) 11,973 Goodwill 41,296 Total 53,269 Acquisition-related costs 3) 436 world-wide. With increasing investments in 4G and 5G – and a flourishing ecosystem of new applications and use cases leveraging the power of modern networks – demand from enterprises for programmable networks has been accelerating. Goodwill in this transaction represents future customers, technology, and synergies and is not expected to be deductible for tax purposes. The intangible assets mainly relate to customer relationships. The fair values of the assets acquired and liabilities assumed, at the acquisition date as presented, are final. Vonage’s net sales and EBIT (loss) for the period, from acquisition date, amounts to SEK 7.0 billion and SEK –1.8 billion respectively. Vonage’s net sales and EBIT (loss) for the 2022 financial year, as though the acquisition date occurred at the beginning of the annual reporting period, amounts to SEK 14.4 billion and SEK –3.0 billion respectively. Acquisitions 2020–2022 Business Description Transaction date Vonage A US based global provider of cloud-based communications. Jul 2022 Quortus A UK based mobile core software business with expertise in enterprise 4G/5G technology. Nov 2021 Axonix A UK based mobile-first programmatic advertising exchange business. Mar 2021 Cradlepoint A US company providing Wireless WAN Edge 4G and 5G solutions for the enterprise market. Nov 2020 Genaker A Spanish provider of Mission Critical Push-to-talk (MC-PTT) Mar 2020 Divestments Divestments 2020–2022 2022 2021 2020 Proceeds Cash and cash equivalents 20 273 4 Shares in associated companies 298 — — Total proceeds 318 273 4 Net assets disposed of Property, plant and equipment — 26 1 Right-of-use — 7 1 Investments in associates 82 — — Intangible assets — — 48 Goodwill — (48) 4 Other assets 23 51 83 Provisions, incl. post-employment benefits (42) (30) (1) Other liabilities (101 36 6 Total net assets (38) 42 142 Net gains/losses from divestments 356 231 (138) Shares in associated companies (298) — — Cash flow effect 20 273 4 In 2022, the Company made divestments with a cash flow effect amounting to SEK 20 (273) million. Net gains/losses from the divestments are presented on Other operating income in the Income statement, see also note B4 “Other operating income and expenses.” For more information, see note H3 “Statement of cash flow.” Divestments 2020–2022 Business Description Transaction date Aerialink A US based company providing premier messaging solutions for business to business communications Nov 2022 Data center A data center business located in the Netherlands. Nov 2021 |
E3 Associated companies
E3 Associated companies | 12 Months Ended |
Dec. 31, 2022 | |
Investments accounted for using equity method [abstract] | |
E3 Associated companies | Associated companies Equity in associated companies 2022 2021 Opening balance 941 1,274 Investments 298 — Share in earnings 17 (260 ) Distribution of capital stock (24 ) — Taxes (14 ) (11 ) Dividends (58 ) (90 ) Divested business (82 ) (260 ) Translation differences 49 28 Closing balance 1,127 941 The Company owns 49.07% of the shares in Ericsson Nikola Tesla d.d., located in Croatia and 35.6% of the shares in ConcealFab Inc., located in US. See also note H4 “Related party transactions.” |
F1 Financial risk management
F1 Financial risk management | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Financial Risk Management [Abstract] | |
F1 Financial risk management | Section F – Financial instruments Financial risk management The Company’s financial risk management is governed by a policy approved by the Board of Directors. The Board of Directors is responsible for overseeing the capital structure and financial management of the Company, approving certain matters (such as investments, customer finance commitments and borrowing) and setting limits on the exposure to financial risks. For the Company, a robust financial position with an 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 deliver strong free cash flow. The Company’s capital objectives are: – Free cash flow before M&A of 9–12% of net sales – Positive net cash position – Investment grade rating by Moody’s (Baa3), S&P Global (BBB-) Ratings (BBB-). Capital objectives-related information 2022 2021 Free cash flow before M&A as % of net sales 1) 8.2% 13.8% Positive net cash (SEK billion) 1) 23.3 65.8 Credit rating Fitch Ratings BBB-, stable BBB-, stable S&P Global BBB-, developing BBB-, stable Moody´s Ba1, stable Ba1, stable 1) In March 2022, S&P Global The Company has a treasury and customer finance 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. The customer finance function may arrange suitable third-party financing solutions for customers to support their purchases from Ericsson. In some cases, and to the extent that customer loans are not provided directly by banks, the Parent Company may provide vendor finance credits to customers directly. The central function also 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 risk – 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 A1 “Significant accounting policies.” Foreign exchange risk The Company is a global company with sales mainly outside Sweden. Sales and costs incurred 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 will impact 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 EBIT 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 changes in foreign exchange rates. The table below presents the external net sales and cost exposures for the largest currencies which impact profitability. The internal exposures will not impact group profitability if all related transactions occur and are recognized in the profit and loss in the same month. Any effect on profit and loss from internal transactions is a function of timing and FX volatility, therefore impossible to predict. Currency exposure, Exposure Sales Sales Sales net Cost Cost 1) Cost USD 2) 106.2 51.5 157.7 (51.8) (77.9) (129.7) EUR 38.2 1.9 40.1 (32.1) 15.2 (16.9) JPY 9.7 — 9.7 (3.7) — (3.7) INR 10.9 (0.4) 10.5 (6.5) 0.1 (6.4) CAD 4.1 — 4.1 (1.0) 0.4 (0.6) TWD 4.5 — 4.5 (1.8) — (1.8) CNY 8.7 (0.3) 8.4 (7.2) 1.2 (6.0) KRW 4.5 — 4.5 (2.5) 0.2 (2.3) 1) External purchases in foreign currency translated to functional currency. 2) Sales transaction exposure in 2022 includes volume in the cash flow hedge of USD 401 million. Based on the outstanding cash flow hedge volume at year end, the hedged sales volume that will occur in 2023 is USD 2,278 million. As SEK has weakened against major currencies in the year, this had a positive effect on net sales of the Company. The strengthening of USD against SEK also resulted in the treasury function acting on the Board mandate to increase the hedge volume of sales and purchases denominated in USD, thereby protecting the value of a portion of future sales. This resulted in a higher outstanding volume of cash flow hedges at year end compared to prior years. 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. Transaction exposure The Company considers the following transaction exposures. a) Transaction risk impacting net sales and net income Transaction exposure relates to sales and cost incurred in non-reporting i) The Company has identified certain customer contracts where a fluctuation in the USD/SEK foreign exchange rate would significantly impact net sales. These contracts are multi-year contracts with highly probable payments at fixed points in time denominated in USD. The Board of Directors has provided a mandate to the Company to hedge between 0%–100% of the next three years receipts on a rolling basis, up to the end of the contract period. This mandate instructs the treasury function to hedge a percentage of this exposure according to a defined scale, locking in a higher percentage of exposure as the USD strengthens against SEK, up to 100%. ii) The Board of Directors has provided a mandate to the Company to hedge highly probable forecasted sales and purchases denominated in USD in EAB for the next 7 to 18 months, on a monthly rolling basis. This mandate instructs the treasury function to hedge a percentage of this exposure according to a defined scale, locking in a higher percentage of exposure as the USD strengthens against SEK, up to 100%. For both programs, hedge accounting is applied, whereby the Company enters into foreign exchange forward contracts that match the terms of the foreign exchange exposure as closely as possible and designates them as hedging instruments. Hedge ineffectiveness is expected to be minimal but may arise due to differences in timing of the cash flows between the hedged items and the hedging instruments. b) Transaction exposure in individual balance sheet According to Company policy, transaction exposure in subsidiaries’ balance sheets (e.g., trade receivables and trade payables that are remeasured due to change in foreign exchange rates) should be fully hedged. Foreign exchange exposures in balance sheet items are hedged through offsetting balances or derivatives. Foreign exchange exposures are managed net, and its effects are presented net within Financial income and expenses. This is not designated as hedge accounting. c) FX execution risk in Ericsson AB (EAB) As balance sheet hedging is done net on a monthly basis, significant volatility in USD hedge volumes exposes EAB to FX execution risk. The sensitivity of the FX impact is dependent on changes in foreign exchange rates, forecasts and seasonality. USD is the only currency being hedged. Since the start of the 7 to 18 month cash flow hedge program in March 2022, the USD hedge volume has steadily reduced through the year. Outstanding loan at year-end d) Transaction risk impacting business combination The Company is exposed to FX execution risk on consideration payable for acquisition in foreign currency from the period of communication of the proposed transaction to final completion date. Such transaction, if deemed material and highly probable, will be hedged to protect the cash consideration for acquisition accounting. Cash flow hedge accounting is applied, whereby the Company enters into foreign exchange forward contracts that match the terms of the foreign exchange exposure as closely as possible and designates them as hedging instruments. Hedge ineffectiveness is expected to be minimal but may arise due to differences in timing of the cash flows between the hedged item and the hedging instruments. 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 income and expenses. Sensitivity analysis The Company uses the Value at Risk (VaR) methodology to measure foreign exchange and interest rate risks 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 one-day The treasury function operates under two mandates. In the liquidity management activity, it 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 one-day In the asset-liability management activity, the interest rate risk is managed Sensitivity to interest rate increase of 1 basis point, SEK million < 3M 3–12M 1–3Y 3–5Y >5Y Total Interest-bearing assets — — (1) (1) — (2) Interest-bearing liabilities 1) — — 1 3 4 8 Derivatives — — (1) (2) (3) (6) Total — — (1) — 1 — 1) Borrowings are included as they are designated FVTPL. Outstanding derivatives Outstanding derivatives 2022 Gross Offset Net Related Net Currency derivatives 1) Assets 1,275 (165) 1,110 (277) 833 Liabilities (2,778) 165 (2,613) 2,382 (231) Interest rate derivatives Assets 11 — 11 — 11 Liabilities (8) — (8) — (8) 2021 Gross Offset Net Related Net Currency derivatives 1) Assets 294 (36) 258 — 258 Liabilities (707) 36 (671) 467 (204) Interest rate derivatives Assets 79 (20) 59 — 59 Liabilities (111) 20 (91) — (91) 1) Currency derivatives designated as cash flow hedge of SEK 566 (9) million are included in Other current receivables and SEK 1,472 (510) million in Other current liabilities. Cash collaterals paid or received under Credit Support Annex (CSA) to ISDA for cross-currency derivatives are recognized as Interest-bearing securities, current or Borrowings, current, respectively. The Company holds the following currency derivatives designated as hedging instruments: Foreign exchange forward contracts 2022 < 3 3 – 12 > 1 year Total Notional Amount (USD millions) 916 1,362 2,194 4,472 Average forward rate (SEK/USD) 9.66 10.46 9.90 Hedge ratio is 1:1 and changes in forward rate have been designated as the hedged risk. The change in the fair value of the hedging instrument is compared with the change in fair value of the hedged item, and the lower amount is taken to OCI. If the change in fair value of the hedging instrument is higher, then the excess change in fair value is considered ineffective hedging and recorded in net foreign exchange gains and losses. For hedge on customer contracts, upon recognition of the hedged net sales, the cumulative amount in hedging reserve is released in the OCI as a reclassification adjustment and recognized in net sales. For hedge on business combination, the cumulative amount in hedge reserve is transferred as a basis adjustment to goodwill upon recognition of the business combination. See note E1 “Equity” for movement in the cash flow hedge reserve. No hedge ineffectiveness was recognized in the income statement in 2022. Credit risk Credit risk is divided into three categories: credit risk in trade receivables and contract assets, customer finance risk and financial credit risk, see note A1 “Significant accounting policies.” Credit risk in trade receivables and contract assets Credit risk in trade receivables and contract assets 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 risk of all customers is regularly assessed. Through credit management system functionality, credit checks are performed every time a sales order is generated in the source system. These are based on the credit limit and risk profile set on the customer. Credit blocks appear if credit limit is reached or 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. Impairment of trade receivables and contract assets Trade receivables and contract assets are assessed for impairment under a unified model. The Company has determined that credit risk largely depends on both the risk in the country where the customer resides (e.g. ability to make cross border payments) as well as the payment pattern of the customer. Therefore, expected credit losses (ECLs) are calculated using a provision matrix that specifies a fixed rate depending both on the number of days past due and the country risk rating. The country risk ratings depend on the ratings used by all Export Credit Agencies within the OECD. The rates defined in the provision matrix are based on historical loss patterns for that grouping of customers. These rates are adjusted for current conditions as well as management expectations of changes to political risks and payment patterns in the future. The provision rates are higher on high risk countries compared to low risk countries and also higher on amounts that remain unpaid for longer periods of time. The Company has assessed the recent global economic conditions on the expected credit losses model for trade receivables and updated the provision matrix as appropriate. Trade receivables and contract assets together amounted to SEK 58,256 (55,905) million as of December 31, 2022. Provisions for expected credit losses on trade receivables and contract assets amounted to SEK 2,492 (2,398) million as of December 31, 2022. Total past due more than 360 days has decreased and the expectation of collection from some customers has also improved, resulting in a lower allowance as a percentage of gross exposure at year end. The Company’s write-offs have historically been low. During the year SEK 70 (163) million were written off due to the Company having no reasonable expectation of collection. Of these write-offs, SEK 4 (0) million are still subject to enforcement. Movements in allowances for impairment of trade receivables and contract assets 2022 2021 Opening balance 2,398 2,518 Balances regarding acquired business 90 — Increase in allowance 40 40 Write-offs (70) (163) Translation difference 34 3 Closing balance 1) 2,492 2,398 1) Of which SEK 1 (1) million relates to contract assets. The distribution of trade receivables and contract assets closely follows the distribution of the Company’s sales, see note B1 “Segment information.” The ten largest customers represented 45% (47%) of the total trade Aging analysis of gross values of trade receivables and contracts assets by Days past dues 2022 Not 1-90 91-180 181-360 >360 Total Country risk :Low 32,015 2,090 165 103 328 34,701 Country risk: Medium 17,731 1,614 150 134 585 20,214 Country risk: High 3,304 610 384 295 1,240 5,833 Total 53,050 4,314 699 532 2,153 60,748 Days past dues 2021 Not 1-90 91-180 181-360 >360 Total Country risk :Low 36,439 976 171 51 292 37,929 Country risk: Medium 12,119 689 208 220 735 13,971 Country risk: High 4,044 429 293 270 1,367 6,403 Total 52,602 2,094 672 541 2,394 58,303 Customer finance credit risk All major commitments to finance customers are made only after approval in accordance with the work procedure for the Board of Directors and 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 the relevant base rate. 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 and bond markets 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. As of December 31, 2022, the total amount payable to the Company under customer finance credits was SEK 7,758 (5,239) million. The carrying value of these assets was SEK 5,370 (3,287) million as of December 31, 2022. Customer finance is arranged for infrastructure projects in different geographic markets. As of December 31, 2022, there were a total of 73 (81) customer finance arrangements originated by or guaranteed by the Company. As of December 31, 2022, the five largest facilities represented 74% (70%) of the customer finance exposure. The geographical split of the year end exposure is as follows: Middle East and Africa 30% (44%), Europe and Latin America 27% (17%), North America 24% (32%) and South East Asia, Oceania and India 18% (6%). As of December 31, 2022, the Company also had unutilized customer finance commitments of SEK 54,086 (47,344) million. Security arrangements for customer finance facilities may 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 an insurance company. All such institutions have been rated at least investment grade. A credit risk transfer under a sub-participation The table below summarizes the Company’s outstanding customer finance as of December 31, 2022 and 2021. Outstanding customer finance credit risk exposure 1) 2022 2021 Fair value of customer finance credits 5,370 3,287 Financial guarantees for third-parties 6 6 Accrued interest 8 9 Maximum exposure to credit risk 5,384 3,302 Less third-party risk coverage (298) (94) The Company’s risk exposure, less third-party risk coverage 5,086 3,208 1) This table shows the maximum exposure to credit risk. Fair value assessment of customer finance credits Customer finance risk exposures are held at fair value and are classified as Level 3 on the fair value hierarchy. The Credit Asset Management Team within Ericsson Credit AB, reporting to Head of Group Treasury and Customer Finance, has established a process with respect to measurement of fair values. The quarterly credit review uses an internal model to determine a commercial rating for each credit and for calculation of the fair value. The model is based on external credit rating, political/country rating and bank pricing. Regular monitoring of customer behavior is also a part of the internal assessment. Revaluation of customer finance (excluding effect of foreign exchange translation) amounted to a net loss in the consolidated income statement of SEK 15 (gain of 350) million ) Customer finance fair value reconciliation 2022 2021 Opening balance 3,287 3,137 Additions 37,295 30,121 Disposals/repayments (35,412) (30,468) Revaluation/amortization of interest (151) 322 Translation difference 351 175 Closing balance 5,370 3,287 Of which non-current 415 568 Due to 5G buildout, the demand for customer financing solutions has continued to increase significantly. Most of such financing has been successfully transferred to banks. 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 high rated securities such as treasury bills, government bonds, commercial papers, and mortgage-covered bonds (see Liquidity risk section below). Separate credit limits are assigned to each counterpart in order to minimize risk concentration. All derivative transactions are covered by ISDA netting agreements to reduce the credit risk. For cross-currency derivatives a Credit Support Annex (CSA) to ISDA is signed to further reduce the credit risk by exchanging collateral weekly against market value. The Company has also moved some derivative exposures to clearing counterparties with daily settlement of margins. At December 31, 2022, the credit risk in financial cash instruments was equal to the instruments’ carrying value. The expected credit losses on cash equivalents and interest-bearings securities classified as amortized cost were immaterial 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, analyzed by contractual maturity, see note D4 “Contractual obligations.” The current cash position is deemed to satisfy all short-term liquidity requirements. Cash, cash equivalents, interest bearing securities and derivative assets 2022 Rating or < 3 M 3-12 M 1-5 Y >5 Y Total Bank deposits 38,485 166 7 — 38,658 Other financial institutions 604 — — — 604 Type of issuer: Governments AA/ 915 3,950 277 — 5,142 Corporates A2/P2 1,283 — — — 1,283 Mortgage institutes AAA — 1,682 8,880 — 10,562 Derivative assets 323 385 277 136 1,121 41,610 6,183 9,441 136 57,370 2021 Rating or < 3 M 3-12 M 1-5 Y >5 Y Total Bank deposits 44,758 104 11 — 44,873 Other financial institutions 247 — — — 247 Type of issuer: Governments AA/AAA 5,743 2,906 11,860 — 20,509 Corporates A2/P2 4,226 — — — 4,226 Mortgage institutes AAA — 5,749 21,700 304 27,753 Derivative assets 118 199 — — 317 55,092 8,958 33,571 304 97,925 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. The Company mitigates the risk by having diversified funding sources through a mix of bonds and bilateral loans, with a spread of debt maturing over time. The funding strategy is flexible to enable pre-financing 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. Funding programs 1) Amount Utilized Unutilized Euro Medium-Term Note program 5,000 2,218 2,782 SEC Registered program (USD million) 2) — — — Commercial Paper Program (SEK million) 10,000 — 10,000 1) There are no financial covenants related to these programs. 2) Program amount indeterminate. In February 2022, the Company issued new EUR 750 million notes under the Euro Medium-Term Note program with maturity in 2027. In May 2022, the Company redeemed USD 1,000 million notes issued under the SEC Registered program. In December 2022, the Company established a Green Financing Framework to enable it to issue green bonds and other green financing instruments. The proceeds will be exclusively allocated to investments in energy efficiency and renewable energy. Bonds issued within the Green Financing Framework will be under the existing funding programs. Committed credit facilities Amount Utilized Unutilized Multi-currency revolving credit facility (USD million) 2,000 — 2,000 In September 2022, the Company exercised one (of two) one-year The Green Financing Framework and the revolving credit facility were both unutilized at year end, and as such there was no accounting impact. Financial instruments arising from the use of these facilities will be assessed for accounting in future periods. 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 as they are based on quoted prices in active markets for identical assets. For some of the Company’s financial assets and liabilities, especially derivatives, quoted prices are not readily available and fair values are calculated using market inputs such as interest rate quotes and currency rates. For financial liabilities designated at fair value to profit and loss, the carrying amount reflects the effect in own credit spreads either in quoted prices or quoted Credit Default Swap (CDS) for Investment Grade companies. Valuation hierarchy – Quoted market prices – level 1 Assets and liabilities are classified as level 1 if their value is observable in an active market. Such instruments are valued by reference to unadjusted quoted prices for identical assets or liabilities in active markets where the quoted price is readily available, and the price represents actual and regularly occurring market transactions. – Valuation technique using observable inputs – level 2 Assets and liabilities classified as level 2 have been valued using models whose inputs are observable either directly or indirectly. Valuations based on observable inputs include cash equivalents (e.g. discounted papers, term deposits) and interest rate derivatives which are valued using interest rate yield curves. Other market observable inputs include credit spreads and FX forward rates. Inputs for base interest rates are quoted fixing rates, interest rates swaps and IBOR rates. FX derivatives are valued by using observable forward rates, discounted using base interest rate curve. Valuation of foreign exchange options are made using the Black-Scholes formula. The value of credit risks in derivative contracts are monitored regularly. Derivative credit and debit valuations adjustments are calculated based on outstanding market values and default probabilities from the CDS market, and if effect on valuation is material, are included in the fair value of the derivatives. – Valuation technique using significant unobservable inputs – level 3 Assets and liabilities are classified as level 3 if their valuation incorporates significant inputs that are not based on observable market data (unobservable inputs). Apart from trade receivables and customer finance receivables, this valuation technique mainly applies to investment in shares and other participations whereby valuation input is considered observable if it can be directly observed from transactions in an active market, or if there is compelling external evidence demonstrating an executable exit price. Using a market approach to valuation, unobservable inputs are generally determined via reference to observable inputs, historical observations or other analytical techniques. Reconciliation of Level 3 fair value items Investment in Opening balance 1,674 Additions 218 Disposals (205) Gains or losses 1) 291 Translation differences 8 Closing balance 1,986 1) Table shows net gains or losses recognized in Other operating income or expenses, of which SEK 290 million unrealized gains relate to Level 3 assets held at the end of the year. Financial instruments carried at amortized cost Financial instruments, such as some cash equivalents, interest-bearing securities, borrowings and payables, are carried at amortized cost which is deemed to be equal to fair value. 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. Financial instruments 2022 2021 Amortized Fair Fair value hierarchy level Amortized Fair Fair value hierarchy level SEK billion cost value Level 1 Level 2 Level 3 cost value Level 1 Level 2 Level 3 Assets at fair value through profit or loss Customer finance — 5.4 — — 5.4 — 3.3 — — 3.3 Interest-bearing securities — 17.5 17.5 — — — 43.3 43.3 — — Cash equivalents 1) — 15.7 — 15.7 — — 26.0 — 26.0 — Other financial assets — 2.1 0.1 — 2.0 — 2.3 0.6 — 1.7 Other current assets — 1.1 — 1.1 — — 0.3 — 0.3 — Assets at fair value through OCI Trade receivable — 48.4 — — 48.4 — 45.4 — — 45.4 Assets at amortized cost Interest-bearing securities 0.4 — — — — 0.3 — — — — Cash equivalents 1) 2.9 — — — — 4.0 — — — — Other financial assets 0.6 — — — — 0.5 — — — — Financial assets 3.9 90.2 4.8 120.6 Financial liabilities at designated FVTPL Parent Company borrowings — (29.6) (16.7) (12.9) — — (31.4) (19.5) (11.9) — Financial liabilities at FVTPL Other current liabilities — (2.6) — (2.6) — — (0.8) — (0.8) — Liabilities at amortized cost Trade payables (38.4) — — — — (35.7) — — — — Borrowings (3.3) — — — — (0.4) — — — — Financial liabilities (41.7) (32.2) (36.1) (32.2) 1) Total Cash and cash equivalent is SEK 38.3 (54.1) billion, of which SEK 18.6 (30.0) billion relating Market price risk in own shares and other listed equity investments The Company is exposed to fluctuations in its own share price through 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 A1 “Significant accounting policies”, note G2 “Information regarding members of the Board of Directors and Group management” and note G3 “Share-based compensation.” Share-based plans for employees The obligation to deliver shares under the Long-Term Variable compensation programs (LTV) for the Executive Team is covered by holding Ericsson Class B shares as treasury stock. The cash flow exposure is managed through the holding of Ericsson Class B shares as treasury stock shall be sold to generate funds, which also cover social security payments, when shares are delivered to participants at the end of their service period. 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 2) 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 provision in the balance sheet. For further information about LTV, the cash- settled plans to employees and the synthetic share-based compensations to the Board of Directors, see note G2 “Information regarding members of the Board of Directors and Group management” and note G3 “Share-based compensation.” |
F2 Financial income and expense
F2 Financial income and expenses | 12 Months Ended |
Dec. 31, 2022 | |
Finance Income And Expenses [Abstract] | |
F2 Financial income and expenses | Financial income and expenses Financial income and expenses 2022 2021 2020 Contractual interest on financial assets 717 360 665 of which on financial assets at amortized cost 251 148 148 Net revaluation gains and losses on financial assets (146) 10 (103) Other financial income 207 321 131 Financial income 778 691 693 Contractual interest on financial liabilities (972) (525) (873) of which on financial liabilities at amortized cost (128) (41) (152) Net revaluation gains and losses on financial liabilities 379 67 9 Lease interest expense (464) (426) (490) Net interest on pension liabilities 1) (361) (262) (262) Other financial expenses (512) (528) (500) Financial expenses (1,930) (1,674) (2,116) Net foreign exchange gains/losses (1,259) (1,547) 827 Financial income and expenses, net (2,411) (2,530) (596) Net gains and losses on financial instruments exclude effect of foreign exchange translations: Financial instruments at fair value through profit or loss 2) (2,552) (534) (257) Financial liabilities designated at fair value through profit or loss 2,847 404 (121) 1) Includes gains or losses on plan settlement. 2) Excludes net loss from revaluation of customer finance receivables of SEK 15 million (net gain of SEK 350 million in 2021 and net loss of SEK 262 million in 2020), reported as Selling and administrative expenses, and net loss on revaluation of investments in shares and participations of SEK 205 million (net gain of SEK 784 million in 2021 and net gain of SEK 12 million in 2020) reported as Other operating income or expenses. |
F3 Financial assets, non-curren
F3 Financial assets, non-current | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
F3 Financial assets, non-current | Financial assets, non-current Financial assets, non-current 2022 2021 Other Interest- non-current Other financial non-current 1) Other Interest- non-current Other financial non-current 1) Opening balance 2,258 30,626 6,217 1,519 21,613 4,842 Additions 218 13,583 1,249 184 30,305 1,054 Disposals/repayments/deductions (205) (29,523) (481) (229) (13,547) (959) Amortization — — (288) — — — Change in value in funded pension plans 2) — — 244 — — 1,064 Revaluation (205) 262 85 784 (75) 99 Reclassification — (5,784) (542) (1) (7,670) (1) Translation differences 8 — 355 1 — 118 Closing balance 2,074 9,164 6,839 2,258 30,626 6,217 1) Includes items such as pension surplus assets, tax credit receivables, deferred sales commissions and loans to associates. 2) This amount includes asset ceiling. For further information, see note G1 “Post-employment benefits.” |
F4 Interest-bearing liabilities
F4 Interest-bearing liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings [abstract] | |
F4 Interest-bearing liabilities | Interest-bearing liabilities As of December 31, 2022, the Company’s outstanding interest-bearing liabilities were SEK 32.9 (31.8) billion. Interest-bearing liabilities (excluding lease obligations) 2022 2021 Borrowings, current Current part of non-current 2,865 9,459 Other borrowings, current 3,119 131 Total borrowings, current 5,984 9,590 Borrowings, non-current Notes and bond loans 26,752 22,016 Other borrowings, non-current 194 225 Total borrowings, non-current 26,946 22,241 Total interest-bearing liabilities 32,930 31,831 Reconciliation of liabilities arising from financing activities (including lease obligations) 2022 2021 Opening balance 41,134 39,460 Cash flows Proceeds from issuance of borrowings 10,755 7,882 Repayment of borrowings 1) (16,029) (5,791) Other financing activities 315 (2,128) Lease payments (2,593) (2,368) Non-cash Effect of foreign exchange movement 4,762 2,621 Revaluation due to changes in credit risk (1,030) (31) Other changes in fair value (2,888) (415) Acquisition of new lease contracts 1,986 2,009 Balances regarding acquired business 6,876 — Other non-cash 1) (1,054) (105) Closing balance 42,234 41,134 1) Repayment in 2022 includes capped call received of SEK 0.6 billion (not classified as Borrowings) relating to convertible bonds repaid, therefore net repayment amount is lower. This is included in Other non-cash 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. The global economy continues to face multiple challenges due to the war in Ukraine Inflation rates have risen significantly across the world and central Notes, bonds and bilateral loans Issued-maturing Nominal Coupon Currency Maturity date Carrying Changes in Cumulative Carrying Notes and bond loans 2012–2022 1,000 4.125 % USD May 15, 2022 — (58) — 9,163 2017–2024 500 1.875 % EUR Mar 1, 2024 5,392 (72) 46 5,297 2017–2025 1) 150 2.741 % USD Dec 22, 2025 1,422 (50) 30 1,393 2020–2030 1) 200 3.020 % USD Dec 30, 2030 1,682 (97) 18 1,825 2021–2029 500 1.000 % EUR May 26, 2029 4,196 (286) (312) 5,007 2022–2027 750 1.125 % EUR Feb 8, 2027 7,119 (208) (207) — Total notes and bond loans 19,811 (771) (425) 22,685 Bilateral loans 2017–2023 2) 220 USD Jun 15, 2023 2,292 (38) 6 2,033 2019–2024 3) 281 USD July 31, 2024 2,925 (58) 4 2,608 2019–2025 2) 150 USD Dec 18, 2025 1,555 (45) (1) 1,400 2021–2028 3) 305 USD Jun 21, 2028 2,981 (118) (183) 2,692 Total bilateral loans 9,753 (259) (174) 8,733 1) Private Placement, Swedish Export Credit Corporation (SEK). 2) Nordic Investment Bank (NIB), R&D project financing. 3) European Investment Bank (EIB), R&D project financing. |
G1 Post-employment benefits
G1 Post-employment benefits | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of information about defined benefit plans [abstract] | |
G1 Post-employment benefits | 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 global economy continues to face multiple challenges due to the war in Ukraine and the threat of recession affecting all major economies. Short term inflation rates have risen significantly across the world and central banks have raised interest rates in response. Asset prices (equity and bonds) remain volatile in these market conditions. The Company has updated the assumptions used to value the defined benefit pension liabilities based on the latest market conditions. Discount rates have increased, resulting in significant actuarial gain on remeasurement, although this is partly offset by higher inflation assumptions. Net actuarial gain on defined benefit obligations was SEK 29.0 billion. Plan assets also decreased due to market volatility in the year resulting in a remeasurement loss of SEK 14.1 billion. The net pension obligations decreased by SEK 8.7 billion compared to prior year. 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 according to IAS 19 is funded to 57% (51%) by the assets of Ericsson Pensionsstiftelse (a Swedish Pension Foundation). These liabilities, if valued using different methodology and assumptions established by the Swedish PRI Pensionsgaranti, are considered funded to more than 100% by the assets of Ericsson Pensionsstiftelse. There are no funding requirements for the Swedish plans. The disability and survivors’ pension part of the ITP-plan The Company pays benefit directly to the pensioners as the obligations fall 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. 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 collective funding ratio ranges from 125% to 175% and reflects the market value of Alecta’s plan assets as a percentage of its commitments to policy holders (both guaranteed and non-guaranteed), 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 6.1 billion to PRI Pensionsgaranti at year end. PRI continuously measures the Company credit risk levels according to the credit insurance terms and conditions. The Company has agreed to pledge additional business assets worth SEK 750 million in the first quarter of 2023 as additional credit risk guarantee. 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 2022. 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. In June 2022, the trustees completed a bulk annuity transaction which transferred all risks relating to some of the defined benefit plan liabilities to insurance companies. This resulted in a settlement event, whereby defined benefit obligation of SEK 11 billion was discharged. UK plans The Company operates both defined benefit and defined contribution plans in the UK. All 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. In December 2022, the trustees purchased a bulk annuity buy-in plans. buy-in Other plans The Company also sponsors plans in other countries. The main plans are in Brazil, India and Ireland. The main pension plans in Brazil are 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. The Provident Fund Plan in India is self-managed through a registered Exempted Trust and according to local legislation, investment returns shall be guaranteed at minimum rates of return specified by the government. The Company has an obligation to fund any shortfall on the yield of the trust’s investments over the administered interest rates on an annual basis. These administered rates are determined annually predominantly considering the social and economic factors in the past. Amount recognized in the Consolidated balance sheet Amount recognized in the Consolidated balance sheet Sweden US UK Other Total 2022 Defined benefit obligation (DBO) 50,441 5,365 9,866 18,019 83,691 Fair value of plan assets 28,521 5,111 11,999 14,849 60,480 Deficit/surplus (+/–) 21,920 254 (2,133) 3,170 23,211 Plans with net surplus, excluding asset ceiling 1) — 298 2,137 1,715 4,150 Provision for post-employment benefits 2) 21,920 552 4 4,885 27,361 2021 Defined benefit obligation (DBO) 58,754 18,463 17,071 19,255 113,543 Fair value of plan assets 29,876 18,254 19,427 13,798 81,355 Deficit/surplus (+/–) 28,878 209 (2,356) 5,457 32,188 Plans with net surplus, excluding asset ceiling 1) — 450 2,802 610 3,862 Provision for post-employment benefits 2) 28,878 659 446 6,067 36,050 1) Plans with a net surplus, i.e., where plan assets exceed DBO, are reported as Other financial assets, non-current, 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. Pension costs for defined contribution plans and defined benefit plans Sweden US UK Other Total 2022 Pension cost for defined contribution plans 1,192 542 128 1,209 3,071 Pension cost for defined benefit plans 1) 2,144 160 (22) 1,204 3,486 Total 3,336 702 106 2,413 6,557 Total pension cost expressed as a percentage of wages and salaries 8.9% 2021 Pension cost for defined contribution plans 1,199 460 138 1,084 2,881 Pension cost for defined benefit plans 1,920 97 (6) 931 2,942 Total 3,119 557 132 2,015 5,823 Total pension cost expressed as a percentage of wages and salaries 9.3% 2020 Pension cost for defined contribution plans 963 415 136 664 2,178 Pension cost for defined benefit plans 1,783 13 (4) 993 2,785 Total 2,746 428 132 1,657 4,963 Total pension cost expressed as a percentage of wages and salaries 1) For the UK plans, negative cost was due to interest income of SEK 355 million exceeding interest cost of SEK 312 million during the year. Change in the net defined benefit obligation Change in the net defined benefit obligation Present value 1) Fair value of Total Present value 1) Fair value of Total Opening balance 113,543 (81,355) 32,188 108,188 (73,611) 34,577 Included in the income statement 2) Current service cost 2,772 — 2,772 2,644 — 2,644 Past service cost and gains and losses on settlements 311 — 311 1 — 1 Interest cost/income (+/–) 1,716 (1,475) 241 1,463 (1,240) 223 Taxes and administrative expenses — 62 62 — 41 41 Other 43 1 44 10 (17) (7) 4,842 (1,412) 3,430 4,118 (1,216) 2,902 Remeasurements Return on plan assets excluding amounts in interest expense/income — 14,135 14,135 — (3,526) (3,526) Actuarial gains/losses (–/+) arising from changes in demographic assumptions 1,118 — 1,118 (49) — (49) Actuarial gains/losses (–/+) arising from changes in financial assumptions (29,031) — (29,031) (287) — (287) Experience-based gains/losses (–/+) 3,236 — 3,236 350 — 350 (24,677) 14,135 (10,542) 14 (3,526) (3,512) Other changes Translation difference 3,381 (3,297) 84 3,951 (3,764) 187 Contributions and payments from: Employers 3) (1,302) (652) (1,954) (1,260) (679) (1,939) Plan participants 334 (325) 9 285 (270) 15 Payments from plans: Benefit payments (1,806) 1,806 — (1,825) 1,825 — Settlements (10,759) 10,755 (4) (12) — (12) Business combinations and divestments — — — 84 (114) (30) Other 135 (135) — — — — Closing balance 83,691 (60,480) 23,211 113,543 (81,355) 32,188 1) The weighted average duration of DBO is 18.3 (20.4) years. 2) Excludes the impact of the asset ceiling of SEK 55 (40) million in 2022. 3) The expected contribution to the plans during 2023 is SEK 2.2 billion. Present value of the defined benefit obligation Sweden US UK Other Total 2022 DBO, closing balance 50,441 5,365 9,866 18,019 83,691 Of which partially or fully funded 50,441 4,812 9,866 14,417 79,536 Of which unfunded — 553 — 3,602 4,155 2021 DBO, closing balance 58,754 18,463 17,071 19,255 113,543 Of which partially or fully funded 58,754 17,805 17,071 15,574 109,204 Of which unfunded — 658 — 3,681 4,339 Asset allocation by asset type and geography 1) Sweden US UK Other Total Of which unquoted 2) 2022 Cash and cash equivalents 1,151 184 449 88 1,872 6 % Equity securities 6,803 419 1,113 2,791 11,126 50 % Debt securities 14,114 3,646 5,818 8,539 32,117 28 % Real estate 5,577 — 199 603 6,379 100 % Investment funds 917 789 2,417 578 4,701 74 % Assets held by insurance company — — 1,872 1,717 3,589 100 % Other (41) 73 131 533 696 15 % Total 28,521 5,111 11,999 14,849 60,480 Of which real estate occupied by the Company — — — — — Of which securities issued by the Company — — — — — 2021 Cash and cash equivalents 1,100 500 1,468 46 3,114 33 % Equity securities 7,619 659 3,823 2,651 14,752 58 % Debt securities 14,427 15,817 12,705 7,999 50,948 44 % Real estate 5,157 — 195 594 5,946 100 % Investment funds 1,782 1,247 — 484 3,513 64 % Assets held by insurance company — — — 1,597 1,597 100 % Other (209) 31 1,236 427 1,485 69 % Total 29,876 18,254 19,427 13,798 81,355 Of which real estate occupied by the Company — — — — — Of which securities issued by the Company — — — — — 1) Asset class is presented based on the underlying exposure of the investment. This includes direct investment in securities or investment through pooled funds that invest in an asset class. 2) Unquoted refers to assets classified as fair value level 2 and 3. Unquoted assets comprise mainly investments in pooled investment vehicles. Actuarial assumptions Financial and demographic actuarial assumptions 2022 2021 Sweden US UK Sweden US UK Financial assumptions Discount rate 2.0% 5.4% 4.9% 0.6% 2.7% 1.8% Inflation rate 2.3% 2.5% 3.1% 2.0% 2.5% 3.2% Salary increase rate 2.8% 3.0% — 2.8% 3.5% — Demographic assumptions Life expectancy after age 65 in years 23 22 23 23 23 23 Actuarial assumptions are assessed on a quarterly basis. See also note A1 “Significant accounting policies” and note A2 “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, 2022, the discount rate applied in Sweden was 2.0% (0.6%). If the discount rate had been based on Swedish covered mortgage bonds, the discount rate as of December 31, 2022 would have been 3.9% (2.1%). If the discount rate based on Swedish covered mortgage bonds had been applied for the pension liability calculation, the DBO at December 31, 2022 would have been approximately SEK 16.5 (18.8) billion lower. 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. Higher corporate bond discount rates were used to value pensions liabilities in the US and UK plans at year end hence lowering the liabilities, although this was partially offset by higher inflation rate in the UK. Total remeasurements in Other comprehensive income related to post-employment benefits 2022 2021 Actuarial gains and losses (+/–) 8,943 3,255 The effect of asset ceiling 127 25 Swedish special payroll taxes 1,599 257 Total 10,669 3,537 Sensitivity analysis of significant actuarial assumptions, SEK billion 2022 Impact on the DBO of a change in Sweden US UK Financial assumptions Discount rate -0.5% 5.9 0.3 0.9 Discount rate +0.5% (5.2) (0.2) (0.8) Inflation rate -0.5% (4.1) — (0.6) Inflation rate +0.5% 7.0 — 0.6 Salary increase rate -0.5% (1.8) — — Salary increase rate +0.5% 1.9 — — Demographic assumptions Longevity - 1 year (2.4) (0.1) (0.3) Longevity + 1 year 2.4 0.1 0.3 |
G2 Information Regarding Member
G2 Information Regarding Members of the Board of Directors and Group Management | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Information About Board Of Directors And Group Management [Abstract] | |
G2 Information regarding members of the Board of Directors and Group management | Information regarding members of the Board of Directors and Group management Remuneration to the Board of Directors Remuneration to members of the Board of Directors SEK Board fees Number of Value at Number of Net change 1) Committee Total fees 2) Total Total A B C (A+B+C) Board member Ronnie Leten 4,375,000 — — 94,954 (2,501,774) 385,000 4,760,000 2,258,226 4,487,599 Helena Stjernholm 1,100,000 6,669 549,992 23,547 (1,182,457) 180,000 730,000 97,535 1,441,705 Jacob Wallenberg 1,100,000 10,003 824,947 35,323 (1,773,786) 180,000 455,000 (493,839) 1,375,710 Jon Fredrik Baksaas 1,100,000 6,669 549,992 30,007 (1,519,416) 205,000 755,000 (214,424) 1,250,514 Jan Carlson 1,100,000 10,003 824,947 35,323 (1,773,786) 455,000 730,000 (218,839) 1,512,156 Nora Denzel 1,100,000 3,334 274,955 11,772 (591,164) 180,000 1,005,000 688,791 1,240,674 Börje Ekholm — — — — — — — — 150,241 Carolina Dybeck Happe 1,100,000 10,003/75% 824,947 — (215,765) — — 609,182 — Eric A. Elzvik 1,100,000 3,334/25% 274,955 11,772 (591,164) 475,000 1,300,000 983,791 1,480,674 Kurt Jofs 1,100,000 3,334/25% 274,955 19,378 (459,865) 635,000 1,460,000 1,275,090 1,598,923 Kristin S. Rinne 1,100,000 6,669/50% 549,992 14,005 (999,684) 205,000 755,000 305,308 1,371,568 Employee Representatives Torbjörn Nyman 43,500 — — — — 22,500 66,000 66,000 43,500 Anders Ripa 43,500 — — — — 12,000 55,500 55,500 27,000 Kjell-Åke Soting 43,500 — — — — 15,000 58,500 58,500 39,000 Annika Salomonsson 4) 28,500 — — — — — 28,500 28,500 — Ulf Rosberg (deputy) 43,500 — — — — — 43,500 43,500 22,500 Loredana Roslund (deputy) 43,500 — — — — — 43,500 43,500 27,000 Roger Svensson — — — — — — — — 7,500 Per Holmberg (deputy) — — — — — — — — 21,000 Total 14,521,000 60,018 4,949,682 276,081 (11,608,861) 2,949,500 12,245,500 5,586,321 3) 16,097,264 1) The difference in value as of the time for payment, compared to December 31, 2021, for synthetic shares allocated in 2017 (for which payment was made in 2022). The difference in value as of December 31, 2022 compared to December 31, 2021, for synthetic shares allocated in 2018, 2019, 2020 and 2021. Calculated on a share price of SEK 60.90. The difference in value as of December 31, 2022, compared to grant date for synthetic shares allocated in 2022. The value of synthetic shares allocated in 2018, 2019, 2020 and 2021 includes respectively SEK 1.00, SEK 1.50, SEK 2.00 and SEK 2.50 per share in compensation for dividends resolved by the Annual General Meetings 2019, 2020, 2021 and 2022 and the value of the synthetic shares allocated in 2017 includes dividend compensation for dividends resolved in 2018, 2019, 2020 and 2021. 2) Committee fee and cash portion of the Board fee. 3) Excluding social security charges in the amount of SEK 1,102,787. 4) Appointed deputy employee representative Board member as of March 29, 2022. Comments to the table – The Chair of the Board was entitled to a Board fee of SEK 4,375,000 and a fee of SEK 205,000 as Chair of the Finance Committee and a fee of SEK 180,000 as member of the Remuneration Committee. – The other Directors elected by the Annual General Meeting were entitled to a fee of SEK 1,100,000 each. In addition, the Chair of the Audit and Compliance Committee was entitled to a fee of SEK 475,000 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. – The Annual General Meeting 2022 resolved that non-employee Directors may 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. The number of synthetic shares allocated is based on a volume-weighted average of the market price of Ericsson’s Class B shares on Nasdaq Stockholm during the five trading days 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 2017 occurred in 2022. The amounts paid in 2022 under the synthetic share programs were determined based on the volume-weighted average price for Ericsson’s Class B shares on Nasdaq Stockholm during the five trading days immediately following the publication of the year-end SEK 113.09 and totalled SEK 7,865,764 excluding social security charges. The payments made do not constitute a cost for the Company in 2022. The Company’s costs for the synthetic shares have been disclosed each year and the net change in value of the synthetic shares for which payment was made in 2022, is disclosed in the table above “Remuneration to members of the Board of Directors”. 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, 2022, the total outstanding number of synthetic shares under the programs is 336,099 and the total accounted debt is SEK 21,951,066. 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 financial year. These costs are disclosed under Remuneration costs below. Costs recognized during a financial 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 (the Guidelines) as approved by the Annual General Meeting (AGM) of shareholders held in 2020. Remuneration costs for the President and CEO and other members of Executive Team (ET) SEK President President President Other members of ET 2022 3) Other members of ET 2021 Other members of ET 2020 Total 2022 Total 2021 Total 2020 Salary 1) 19,154,852 18,208,859 17,727,726 132,945,295 110,043,431 98,063,266 152,100,147 128,252,290 115,790,992 Termination benefits — — — 25,503,967 — — 25,503,967 — — Annual variable remuneration provision earned for the year — — — 90,908,181 52,507,185 37,992,529 90,908,181 52,507,185 37,992,529 Long-term variable compensation provision 41,125,015 43,701,650 41,110,656 43,688,149 48,260,833 41,237,506 84,813,164 91,962,483 82,348,162 Pension costs 2) 9,856,121 9,569,049 9,113,376 42,248,588 40,886,802 39,685,920 52,104,709 50,455,851 48,799,296 Other benefits 135,743 555,688 770,276 20,167,043 11,199,631 14,360,413 20,302,786 11,755,319 15,130,689 Social charges and taxes 22,079,378 22,633,474 21,592,463 60,745,133 57,469,705 52,289,551 82,824,511 80,103,179 73,882,014 Total 92,351,109 94,668,720 90,314,497 416,206,356 320,367,587 283,629,185 508,557,465 415,036,307 373,943,682 1) Includes compensation for unused vacation days. 2) Includes cash payments to the President and CEO in lieu of defined contribution payment in a cost neutral way to Ericsson. 3) Does not include cash compensation paid to Rory Read during 2022 amounting to MUSD 32.76 for acceleration of existing restricted and performance stock units in Vonage Holdings Corp. (Vonage). Further information is included in the “Remuneration report”. Comments to the table – Fredrik Jejdling was appointed Executive Vice President by the Board of Directors effective November 7, 2017. He did not substitute the President and CEO as the deputy to the President and CEO in 2022. Information regarding Fredrik Jejdling is included in the group “Other members of ET.” The details of Fredrik Jejdling’s remuneration in 2022 can be found in the Remuneration report 2022. – Arun Bansal was appointed as Executive Vice President by the Board of Directors effective June 10, 2020. He did not substitute the President and CEO as the deputy to the President and CEO in 2022. He was relieved from his duties as Executive Vice President from June 1, 2022. Information regarding Arun Bansal is included in the group “Other members of ET”. The details of Arun Bansal’s remuneration in 2022 corresponding to the period until he was appointed as Executive Vice President can be found in the Remuneration report 2022. – The group “Other members of ET 2022” comprises of the following persons: MajBritt Arfert, Erik Ekudden, Niklas Heuveldop, Chris Houghton, Fredrik Jejdling, Stella Medlicott, Carl Mellander, Nunzio Mirtillo, Fadi Pharaon and Asa Tamsons. In addition, Scott Dresser joined ET on March 21, 2022, George Mulhern, Moti Gyamlani and and – The group “Other members of ET 2021” and “Other members of ET 2020” comprises of the following 14 persons: MajBritt Arfert, Arun Bansal, Xavier Dedullen, Erik Ekudden, Niklas Heuveldop, Chris Houghton, Fredrik Jejdling, Jan Karlsson, Peter Laurin, Stella Medlicott, Carl Mellander, Nunzio Mirtillo, Fadi Pharaon and Asa Tamsons. – The salary stated in the table for the President and CEO and other members of the ET includes vacation pay paid during 2022 as well as other contracted compensation expenses in 2022. – “Long-term variable compensation provision” refers to the compensation costs for full year 2022 for all outstanding share-based plans. 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, 2022, for other members of ET under IAS 19 amounted to 2022: SEK 37.6 million, 2021: SEK 47.4 million of which 2022: SEK 30.0 million, 2021: SEK 32.9 – 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. |
G3 Share-based compensation
G3 Share-based compensation | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
G3 Share-based compensation | Share-based compensation Accounting treatment of Long-Term Variable Compensation Programs In note A1” Significant accounting policies”, the overall accounting policies for share-based payments within the Company are disclosed. In summary: – Share-settled programs, the total compensation expense is calculated based on the fair value (FV) at grant date and recognized over the service period of three years. – Cash-settled plans, the accounting principles are the same as for any other accruals or provisions. Prior to payout an accrual or provision is recognized every period based on the present period’s best estimate of the total amount. Any difference between total payout and the sum of accruals of provisions is recognized in the income statement in the period of final payout. Long-Term Variable Compensation All long-term variable compensation programs have been designed to form a part of a well-balanced total remuneration package and in general to span over a minimum of three years (service period). As these are variable compensation programs, the outcomes cannot be predicted when the programs are introduced and rewards depend on long-term personal commitment, corporate performance and the share price performance. Following discontinuation of the previous long-term variable compensation programs at the end of 2016, the shareholders approved the new Long-Term Variable Compensation Program (LTV) for the Executive Team (ET). The Company also introduced the new Executive Performance Plan (EPP) for senior managers and the Key Contributor Plan (KC Plan) for key employees as integral parts of its remuneration strategy starting from 2017. All new programs are share-based payment programs as defined by IFRS 2 “Share-based Payment,” either share- or cash-settled. Share-Settled Programs Long-Term Variable Compensation Program for the Executive Team The Long-Term Variable Compensation Program for the ET as approved by the shareholders, is designed to provide long-term incentives for members of the ET and to incentivize the Company’s performance creating long-term value. Awards under LTV (Performance Share Awards) are granted to the participants, provided that certain performance conditions are met, to receive a number of shares, free of charge, following expiration of a three-year vesting period (vesting period). Allotment of shares pursuant to Performance Share Awards are subject to the achievement of performance criteria which are defined specific to each year’s program when the program is introduced. Which portion, if any, of the Performance Share Awards for LTV will vest is determined at the end of the relevant performance period based on the satisfaction of the predetermined performance criteria for that year’s LTV program (performance period). The performance criteria for the currently running LTV and EPP are summarized in the below table along with the satisfaction and achieved vesting levels for the ones which the performance period have lapsed. It is generally required that the participant retains his or her employment over a period of three years from the date of grant of awards to be eligible for receiving the performance awards. Provided that the 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 service period, allotment of vested shares will take place as soon as practicably possible following the expiration of the vesting period. When determining the final vesting level of Performance Share Awards, the Board of Directors examines 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, reserves the right to reduce the vesting level to a lower level deemed appropriate. LTV and EPP performance criteria Program Year Target Criteria Weight Performance Period Vesting Opportunity pro-rata) Achievement Achieved 2022 2022 Group operating income (EBIT) Range (SEK billion): 24.1–34.1 45% Jan 1, 2022–Dec 31, 2022 0%–200% SEK 32.2 billion 2) 162.76% 2022 Absolute TSR Range: 6%-14% 25% Jan 1, 2022–Dec 31, 2024 0%–200% 2022 Relative TSR Ranking of Ericsson: 6–2 20% Jan 1, 2022–Dec 31, 2024 0%–200% 1) 2022 Group Environmental, Social and Governance (“ESG”) CO2e emissions (ktonnes): 265–200 5% Jan 1, 2022–Dec 31, 2024 0%–200% Increasing the representation of women leaders in the Ericsson Group: Range 22%–24% 5% Jan 1, 2022–Dec 31, 2024 0%–200% 2022 Total 100% 0%–200% 2021 2021 Group operating income (EBIT) Range (SEK billion): 15.0–24.0 50% Jan 1, 2021–Dec 31, 2021 0% SEK 27.4 billion 2) 200% 2021 Absolute TSR Range: 6%–14% 30% Jan 1, 2021–Dec 31, 2023 0% 2021 Relative TSR Ranking of Ericsson: 6–2 20% Jan 1, 2021–Dec 31, 2023 0% 1) 2021 Total 100% 0% 2020 2020 Group operating income (EBIT) Range (SEK billion): 19.1–27.9 50% Jan 1, 2020–Dec 31, 2020 0% SEK 29.1 billion 3) 200% 2020 Absolute TSR Range: 6%–14% 30% Jan 1, 2020–Dec 31, 2022 0% (6.65 )% 0.00% 2020 Relative TSR Ranking of Ericsson: 6–2 20% Jan 1, 2020–Dec 31, 2022 0%–200% 1) 12 out of 11 0.00% 2020 Total 100% 0% 100.00% 2019 2019 Group operating income (EBIT) Range (SEK billion): 10.0–20.0 50% Jan 1, 2019–Dec 31, 2019 0% SEK 20.4 billion 4) 200% 2019 Absolute TSR Range: 6%–14% 30% Jan 1, 2019–Dec 31, 2021 0% 9.00% 74.89% 2019 Relative TSR Ranking of Ericsson: 7–2 20% Jan 1, 2019–Dec 31, 2021 0% 1) 6.52 out of 12 19.39% 2019 Total 100% 0% 126.35% 1) The portion of the Performance Share Awards granted to a participant based on the relative TSR performance condition is subject to fulfilment of the related performance criteria over the performance period compared to Peer Groups consisting of 11 companies for the program year 2022, 2021 and 2020 and 12 companies for the program years 2019. The vesting of the Performance Share Awards under this performance condition will vary depending on the Company’s TSR performance ranking versus the other companies in the peer group at the end of the performance period. 2) Excludes restructuring charges and items not included in target performance criterion. 3) Excludes restructuring charges. 4) Excludes fines and similar related to the United States Department of Justice (DOJ) / U.S. Securities and Exchange Commission (SEC) resolution, including payments required pursuant to the DOJ Plea Agreement announced by the Company on March 2, 2023. 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 is entitled to decide that participants may, instead, be offered cash settlement. All major decisions relating to outcome of LTV are taken by the Remuneration Committee, with approval by the full Board of Directors as required. 2022 Long-Term Variable Compensation Program for the Executive Team (LTV 2022) LTV 2022 was approved at the Annual General Meeting (AGM) of shareholders held in 2022 and includes all members of the ET, a total of 15 ET members in 2022, including the President and CEO. The participants were granted Performance Share Awards on May 18, 2022. The value of the underlying shares in respect of the Performance Share Awards made to the President and CEO was 190% of the annual base salary, and for other participants ranged between 30% and 70% 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 Awards entitles was calculated as the volume weighted average of the market price of Ericsson B shares on Nasdaq Stockholm during the five trading days immediately following the publication of the Company’s interim report for the fourth quarter of 2021. Having evaluated the ongoing long-term variable compensation programs and considering investor input obtained, the Remuneration Committee and the Board of Directors proposed to the Annual General Meeting of shareholders 2022 a long-term variable compensation program 2022 for the Executive Team similar to the long-term variable compensation program 2021 adding a Group Environmental, Social and Governance performance criterion (“ESG”). The purpose is to further strengthen Ericsson’s commitment to long-term sustainability and responsible business. Hence again a one-year The performance criteria relating to TSR are absolute TSR development and relative TSR development for the Ericsson B share over the period January 1, 2022 to December 31, 2024 (the performance period). The criteria related to ESG are split into two sub-components: 2 The Remuneration Committee and the Board decided to propose a long-term variable remuneration program for 2023 with a similar structure as the long-term variable remuneration program for 2022 to the 2023 Annual General Meeting. The performance criteria for LTV 2022 along with the details on how the performance criteria will be calculated and measured are explained in minutes from the AGM 2022 under Item 16. The Board of Directors resolved on the achieved vesting level for the 2022 Group operating income (EBIT) performance criteria as 162.76% for this portion of the Performance Share Awards granted based on the 2022 Group operating income (EBIT) outcome. 2021 Long-Term Variable Compensation Program for the Executive Team (LTV 2021) LTV 2021 was approved at the Annual General Meeting (AGM) of shareholders held in 2021 and includes all members of the ET, a total of 15 ET members in 2021, including the President and CEO. The participants were granted Performance Share Awards on May 3, 2021. The value of the underlying shares in respect of the Performance Share Awards made to the President and CEO was 190% of the annual base salary, and for other participants ranged between 30% and 70% 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 Awards entitles was calculated as the volume weighted average of the market price of Ericsson B shares on Nasdaq Stockholm during the five trading days immediately following the publication of the Company’s interim report for the fourth quarter of 2020. Following evaluation of the previously introduced Long-term variable compensation programs, the Board of Directors decided to use the same performance criteria for LTV 2021 as the ones used for LTV 2020, LTV 2019 and LTV 2018 in order to secure continuity and consistency in supporting achievement of the Company’s 2022 targets. Hence again a one-year The performance criteria relating to TSR are absolute TSR development and relative TSR development for the Ericsson B share over the period January 1, 2021 to December 31, 2023 (the performance period). The performance criteria for LTV 2021 along with the details on how the performance criteria will be calculated and measured are explained in minutes from the AGM 2021 under Item 16. The Board of Directors resolved on the achieved vesting level for the 2021 Group operating income (EBIT) performance criteria as 200% for this portion of the Performance Share Awards granted based on the 2021 Group operating income (EBIT) outcome. 2020 Long-Term Variable Compensation Program for the Executive Team (LTV 2020) LTV 2020 was approved at the Annual General Meeting (AGM) of shareholders held in 2020 and includes all members of the ET, a total of 15 ET members in 2020, including the President and CEO. The participants were granted Performance Share Awards on April 1, 2020. The value of the underlying shares in respect of the Performance Share Awards made to the President and CEO was 180% of the annual base salary, and for other participants ranged between 30% and 70% 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 Awards entitles was calculated as the volume weighted average of the market price of Ericsson B shares on Nasdaq Stockholm during the five trading days immediately following the publication of the Company’s interim report for the fourth quarter of 2019. Following evaluation of the previously introduced Long-term variable compensation programs, the Board of Directors decided to use the same performance criteria for LTV 2020 as the ones used for LTV 2019 and LTV 2018 in order to secure continuity and consistency in supporting achievement of the Company’s 2020 targets. Hence again a one-year The performance criteria relating to TSR are absolute TSR development and relative TSR development for the Ericsson B share over the period January 1, 2020 to December 31, 2022 (the performance period). The performance criteria for LTV 2020 along with the details on how the performance criteria will be calculated and measured are explained in minutes from the AGM 2020 under Item 17. The Board of Directors resolved on the achieved vesting level for the 2020 Group operating income (EBIT) performance criteria as 200% for this portion of the Performance Share Awards granted based on the 2020 Group operating income (EBIT) outcome. The Board of Directors also resolved on the achieved vesting levels for the absolute and relative TSR development performance criteria as 0.00 0.00 -6.65% 2019 Long-Term Variable Compensation Program for the Executive Team (LTV 2019) LTV 2019 was approved at the AGM 2019 and includes a total of 14 ET members in 2019, including the President and CEO, but excluding Helena Norrman who was not granted LTV 2019 due to her resignation, and Stella Medlicott and Fadi Pharaon who carried over their EPP entitlements for 2019 after their appointments to the ET. The participants were granted Performance Share Awards on May 18, 2019. The value of the underlying shares in respect of the Performance Share Awards made to the President and CEO was 180% of the annual base salary, and for other participants ranged between 30% and 70% 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 Awards entitles was calculated as the volume weighted average of the market price of Ericsson B shares on Nasdaq Stockholm during the five trading days immediately following the publication of the Company’s interim report for the first quarter of 2019. Following evaluation of the previously introduced Long-Term Variable Compensation Programs, the Board of Directors decided to use the same performance criteria for LTV 2019 as the ones used for LTV 2018 in order to secure continuity and consistency in supporting achievement of the Company’s 2020 targets. Hence again a one-year The performance criteria relating to TSR are absolute TSR development and relative TSR development for the Ericsson B share over the period January 1, 2019 to December 31, 2021 (the performance period). The performance criteria for LTV 2019 along with the details on how the performance criteria will be calculated and measured are explained in minutes from the AGM 2019 under Item 17. The Board of Directors resolved on the achieved vesting level for the 2019 Group operating income (EBIT) performance criteria as 200% for this portion of the Performance Share Awards granted based on a 2019 Group operating income (EBIT) outcome excluding fines and similar related to the United States Department of Justice (DOJ) / U.S The Board of Directors also resolved on the achieved vesting levels for the absolute and relative TSR development performance criteria as 74,89% and 19,39 Delivery of shares under LTV 2019 to CEO and entitled ET members is still on hold given the enforcement actions. Given this position, the vesting (and delivery) of the shares is postponed to a later date; namely, until such time as the Chairman of the Board together with the CLO authorize the final vesting of shares under the LTV 2019. The LTV 2019 plan provides for delayed vesting. Cash-Settled Plans Executive Performance Plans (EPP) The Executive Performance Plan (EPP) is a cash-settled plan which uses the same performance criteria as the ones under the respective year’s long-term variable compensation program for the ET. Senior managers, except for the members of the ET, are selected as participants to EPP annually through a nomination process that identifies individuals according to performance, potential, critical skills, and business critical roles. There are two award levels, high and regular, which represent the potential award levels as a percentage of the participant’s annual gross salary, which are determined separately by the Board of Directors for each year’s plan before the plan is launched. Participants are assigned a potential award, which is converted into a number of synthetic shares based on the same market price of Ericsson B shares used for the respective year’s LTV. The three-year vesting period is the same as for the LTV. The vesting level of the award is subject to the achievement of the same performance criteria over the same performance period defined for the respective year 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 Ericsson B shares at Nasdaq Stockholm at the vesting date, and this final amount is paid to the participant in cash gross before tax. Executive Performance Plan 2022 (EPP 2022) 165 senior managers were selected to participate in EPP 2022. The regular award level is set at 15% and the high award level is set at 25% for all countries except for the USA/Canada. The regular and high award levels are set at 35% and 45% respectively in the USA/Canada. Executive Performance Plan 2021 (EPP 2021) 159 senior managers were selected to participate in EPP 2021. The regular award level is set at 15% and the high award level is set at 25% for all countries except for the USA. The regular and high award levels are set at 25% and 35% respectively in the USA. Executive Performance Plan 2020 (EPP 2020) 155 senior managers were selected to participate in EPP 2020. The regular award level is set at 15% and the high award level is set at 25% for all countries except for the USA. The regular and high award levels are set at 25% and 35% respectively in the USA. Executive Performance Plan 2019 (EPP 2019) 161 senior managers were selected to participate in EPP 2019. The regular award level is set at 15% and the high award level is set at 22.5%. The awards under EPP 2019 were paid in 2022 at the end of the vesting period and EPP 2019 was officially closed. Key Contributor Plans (KC Plans) The KC Plan is a cash-settled retention plan. Employees, except for senior managers and the members of the ET, are selected as participants to KC Plan annually through a nomination process that identifies individuals according to performance, potential, critical skills, and business critical roles. Participants are assigned a potential award based on a percentage of their annual gross salary, which is converted into a number of synthetic shares based on the same market price of Ericsson B shares used for the respective year’s LTV. The KC Plan is a retention plan, therefore there are no performance criteria for vesting of awards. In general, there is a three-year service period for receiving the award in full and the award is subject only to continued employment during the service period. As of the KC 2019 plan the total service period is three years, however the payout is distributed over the entire service period with staggered payments according to the below schedule: – 25% of the award to be paid at the end of the first year, – 25% of the award to be paid at the end of the second year, and – the remaining 50% of the award to be paid at the end of the third year. Accounting wise, the plans with three staggered payments are seen as three separate tranches. The tranches are accounted for as separate awards and accrued in parallel with the same grant date but different vesting dates. The consequence of the staggered payments is a front-end The value of each synthetic share is driven by the absolute share price performance of Ericsson B shares during the service period. At the end of the service period, the allotted synthetic shares are converted into a cash amount, based on the market price of Ericsson B shares Nasdaq Stockholm at the vesting date, and this final amount is paid to the participant in cash gross before tax. Key Contributor Plan 2022 (KC Plan 2022) 7,704 employees were selected to participate in KC Plan 2022. There are at multiple levels between 10% - 40% of the participants’ annual gross salary. The total service period is three years, however the payout is distributed over the entire service period with staggered payments as explained under Key Contributor Plans (KC Plans). Key Contributor Plan 2021 (KC Plan 2021) 7,246 employees were selected to participate in KC Plan 2021. There are three award levels at 10%, 25% and 30% of the participants’ annual gross salary. The total service period is three years, however the payout is distributed over the entire service period with staggered payments as explained under Key Contributor Plans (KC Plans). Key Contributor Plan 2020 (KC Plan 2020) 7,007 employees were selected to participate in KC Plan 2020. There are three award levels at 10%, 25% and 30% of the participants’ annual gross salary. The total service period is three years, however the payout is distributed over the entire service period with staggered payments as explained under Key Contributor Plans (KC Plans). Key Contributor Plan 2019 (KC Plan 2019) 6,941 employees were selected to participate in KC Plan 2019. There are three award levels at 10%, 25% and 30% of the participants’ annual gross salary. The total service period is three years, however the payout is distributed over the entire service period with staggered payments as explained under Key Contributor Plans (KC Plans) and was officially closed in 2022. Number of shares and synthetic shares The awards granted to the participants of the LTV programs and the development of the granted shares over time, considering the fulfilment of performance conditions, are displayed in the below table, together with the number of synthetic shares for the EPP and KC plans. Number of shares and synthetic shares (million) Executive team programs Of which the President and CEO Share-settled programs LTV 2022 LTV 2021 LTV 2020 LTV 2019 Total LTV 2022 LTV 2021 LTV 2020 LTV 2019 Total Maximum shares required 2.0 2.1 2.5 3.0 9.6 — — — — — Granted shares 0.7 0.6 0.9 0.6 2.8 0.3 0.3 0.4 0.3 1.3 Outstanding number of shares beginning of 2022 — 0.9 1.3 0.8 3.0 — 0.5 0.6 0.3 1.4 Exercised during 2022 — — — — — — — — — — Forfeited during 2022 — — — — — — — — — — Increase/decrease due to performance condition 2022 0.2 — (0.4) — (0.2) 0.1 — (0.2) — (0.1) Outstanding number of shares end of 2022 0.9 0.9 0.9 0.8 3.5 0.4 0.5 0.4 0.3 1.6 Executive performance program Key contributors plans Cash-settled plan EPP 2022 EPP 2021 EPP 2020 EPP 2019 Total KC 2022 KC 2021 KC 2020 KC 2019 Total Synthetic shares 1.1 1.1 1.0 — 3.2 9.5 5.4 5.0 — 19.9 Compensation expense The compensation expense is based on the FV and the number of shares or synthetic shares. The compensation expense for the share-settled long-term variable compensation programs for the President and CEO and the ET during 2022 was SEK 89 million. The compensation expense for the EPP and the KC Plans during 2022, which are cash settled, was SEK 5 million and SEK 356 million respectively as shown in the table Compensation expense for LTV 2019-2022 below. The total compensation expense during 2022 amounted to SEK 450 (1,346) million. The total provision for the cash-settled plans amounted to SEK 985 (1,591) million, including social charges of SEK 120 (190) million, at the end of 2022. Compensation expense for LTV 2019–2022 Share-settled programs 2022 2021 2020 2019 Total LTV 2022 12 — — — 12 LTV 2021 36 24 — — 60 LTV 2020 31 31 23 — 85 LTV 2019 10 28 28 17 83 Total executive team programs 89 83 51 17 240 Of which the President and CEO 41 38 24 8 111 Cash-settled plans EPP 2022 12 — — — 12 EPP 2021 15 17 — — 32 EPP 2020 (19) 56 34 — 71 EPP 2019 (3) 14 50 11 72 Total executive performance plans 5 87 84 11 187 KC 2022 280 — — — 280 KC 2021 89 355 — — 444 KC 2020 5 376 523 — 904 KC 2019 (18) 194 335 248 759 Total key contributor plans 356 925 858 248 2,387 Total cash-settled plans 361 1,012 942 259 2,574 Total compensation expense 450 1,095 993 276 2,814 Fair value The compensation expense for the share-settled plans is based on FV and the number of shares. The FV for the LTV programs includes adjustments for absolute and relative TSR development performance criteria at the grant date, 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 performance criteria of the LTV program are also based on the outcome of the Group operating income (EBIT) as per fiscal years 2022, 2021 and 2020. The FV for the Group operating income (EBIT) performance criteria is calculated as the share price at grant date, reduced by the net present value of the dividend expected during the three-year vesting period. For the performance criteria the number of shares is adjusted in relation to the achievement level of the performance criteria at the end of the performance period. The compensation expense for the cash-settled plans is based on the FV and the number of synthetic shares allocated. The FV for the EPP includes the same criteria as the share-settled plans and calculated in a similar way, however reassessed quarterly with updated criteria. The FV for the KC Plans are the share price reduced by the net present value of the dividend expected during the service period. The KC Plans 2022, 2021 and 2020 have three FV based on the three different service periods. The FV per performance criteria and program is shown in the table Fair values below. Fair values (SEK) Executive team programs LTV 2022 LTV 2021 LTV 2020 LTV 2019 Share price at grant 78.88 116.66 78.88 90.70 Fair value Absolute TSR 41.18 113.47 54.69 87.92 Fair value ESG - Environmental 71.45 — — — Fair value ESG - Social 71.45 — — — Fair value Relative TSR 54.48 108.61 98.06 94.63 Fair value Group operating income (EBIT) 71.45 110.70 74.22 86.94 Executive performance plans EPP 2022 EPP 2021 EPP 2020 EPP 2019 Fair value Absolute TSR 10.53 3.63 — 78.88 Fair value ESG - Environmental 54.37 — — — Fair value ESG - Social 54.37 — — — Fair value Relative TSR 17.08 1.39 — 78.88 Fair value Group operating income (EBIT) 54.37 56.79 59.31 78.88 Key contributor plans KC 2022 KC 2021 KC 2020 KC 2019 Fair value - Tranche 1 59.31 94.13 109.80 84.12 Fair value - Tranche 2 56.79 59.31 94.13 111.78 Fair value - Tranche 3 54.37 56.79 59.31 78.88 Payout of Cash-settled Plan During 2022 four plans vested: EPP 2019 and KC Plan 2019 tranche 3 (vesting May 18) and KC Plan 2020 tranche 2 and KC Plan 2021 tranche 1 (vesting February 18). The share price for the plan that vested February 18 was SEK 94.13 and for the plans that vested May 18 SEK 78.88 and the accumulated payout to the participants amounted to SEK 784 million. The Ericsson share purchase plan (ESPP) Ericsson is committed to helping employees thrive and to recognizing them for the impact they create by providing opportunities to enrich their working experience. In order to encourage employees to play an active role in achieving the Company’s purpose, further create sense of belonging and ownership, the new Ericsson share purchase plan was launched in November 2021. At the end of 2022 the plan is implemented in 79 countries to approximately 90,500 eligible employees. Further deployment will be pursued in additional countries where possible in line with local statutory legislation during 2023. The ESPP is an all-employee B-shares Ericsson share purchase plan Eligible Number of countries Number of participants Take-up rate – percent of eligible employees 90,500 79 16,319 18.0% 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 Class B share from the shareholders at a strike price of SEK 80 per share (to be recalculated to neutralize the effects of dividend payments during the option period) during one year after a seven-year period. 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. In 2019 Investor AB, shareholder of Ericsson, made an offer to the Board Chairs of its listed core investment to purchase call options relating to shares in the respective core investment. Following this offer, Ronnie Leten, Chair of the Board of Directors, entered into such a call option agreement with Investor AB with respect to Ericsson Class B share. Under the agreement, Investor AB has issued 128,452 call options to Ronnie Leten on market terms (valuation conducted, using the Black & Scholes model, by an independent third party) and Ronnie Leten has purchased these call options for a purchase price of SEK 15.57 per call option. Each call option entitles the purchase of one Ericsson Class B share from Investor AB at a strike price of SEK 87.97 per share (to be recalculated to neutralize the effects of dividend payments during the option period) during one year after a four-year period starting February 5, 2019. 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 period. |
G4 Employee information
G4 Employee information | 12 Months Ended |
Dec. 31, 2022 | |
Number and average number of employees [abstract] | |
G4 Employee information | Employee information Employee numbers, wages and salaries Average number of employees by gender and market area 2022 2021 Women Men Total Women Men Total South East Asia, Oceania and India 5,700 20,902 26,602 5,470 20,828 26,298 North East Asia 4,376 8,711 13,087 4,579 9,323 13,902 North America 2,471 8,415 10,886 2,269 7,999 10,268 Europe and Latin America 1) 12,017 34,637 46,654 11,581 34,336 45,917 Middle East and Africa 883 3,629 4,512 823 3,549 4,372 Total 25,447 76,294 101,741 24,722 76,035 100,757 1) 9,006 26,259 35,265 8,728 25,971 34,699 Of which in Sweden 3,408 10,635 14,043 3,173 10,237 13,410 Number of employees by market area at year-end 2022 2021 South East Asia, Oceania and India 27,761 26,369 North East Asia 13,207 13,091 North America 11,993 10,344 Europe and Latin America 1) 48,023 47,064 Middle East and Africa 4,545 4,454 Total 105,529 101,322 1) 36,594 35,950 Of which in Sweden 14,481 14,183 Number of employees by gender and age at year-end Women Men Percent of total Under 25 years old 1,543 2,435 4% 25–35 years old 9,848 21,790 30% 36–45 years old 8,051 27,595 34% 46–55 years old 5,261 18,646 22% Over 55 years old 2,229 8,131 10% Percent of total 26% 74% 100% E 2022 2021 Headcount at year-end 105,529 101,322 Employees who have left the Company 13,028 11,631 Employees who have joined the Company 17,235 12,129 Temporary employees 627 868 Wages and salaries and social security expenses (SEK million) 2022 2021 Wages and salaries 73,526 62,823 Social security expenses 15,665 14,639 Of which pension costs 6,316 5,601 Amounts related to the President and CEO Remuneration to Board members and Presidents in subsidiaries (SEK million) 2022 2021 Salary and other remuneration 477 572 Of which annual variable remuneration 90 80 Pension costs 1) 34 41 1) Pension costs are over and above any social security charges and taxes. Board members, Presidents and Group management by gender at year end 2022 2021 Women Men Women Men Parent Company Board members and President 36% 64% 23% 77% Group Management 19% 81% 20% 80% Subsidiaries Board members and Presidents 20% 80% 21% 79% |
H1 Taxes
H1 Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Major components of tax expense (income) [abstract] | |
H1 Taxes | Taxes The Company’s tax expense for 2022 was SEK –5,497 (–6,270) million or 22.3% (21.4%) of income after financial items. The tax rate may vary between years depending on business and geographical mix. Items reported for income taxes include the impact of the Swedish tax rate reduction which was signed into law on June 14, 2018. The law enacts a corporate income tax of 21.4% from January 1, 2019 and then reduces it to 20.6% from January 1, 2021. Income taxes recognized in the income statement 2022 2021 2020 Current income taxes for the year (7,353) (6,110) (5,470) Current income taxes related to prior years 253 (337) (175) Deferred tax income/expense (+/–) 1,617 188 (3,911) Share of taxes in joint ventures and associated companies (14) (11) (33) Income tax expense (5,497) (6,270) (9,589) A reconciliation between reported tax expense for the year and the theoretical tax expense that would arise when applying statutory tax rate in Sweden, 20.6% (20.6%), on the consolidated income before taxes, is shown in the table below. Taxes were positively impacted by SEK 411 (969) million as a result of utilization of previously impaired withholding tax assets in Sweden and negatively impacted by the tax effect of the provision made in relation to a potential resolution with the United States Department of Justice (DOJ) of SEK million. 1) The withholding tax expense 2020 includes an impairment of withholding tax of SEK –1,393 million. Reconciliation of Swedish income tax rate with effective tax rate 2022 2021 2020 Calculated tax expense at Swedish tax rate 20.6% (20.6%) (5,070) (6,025) (5,823) Effect of foreign tax rates (605) (324) (616) Current income taxes related to prior years 253 (337) (175) Remeasurement of tax loss carry-forwards (49) (175) (258) Remeasurement of deductible temporary differences 15 220 369 Withholding tax expense — — (1,393) Reversal of impaired withholding tax 411 969 — Tax effect of non-deductible (760) (975) (2,079) Tax effect of non-taxable 327 392 372 Tax effect of changes in tax rates (19) (15) 14 Income tax expense (5,497) (6,270) (9,589) Effective tax rate 22.3% 21.4% 35.2% 1) On March 2, 2023, the Company reached a resolution with the DOJ (the DOJ Plea Agreement) and agreed to pay a fine of approximately SEK 2.2 billion. 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 tax liabilities Net balance 2022 Intangible assets and property, plant and equipment 1,161 8,135 Current assets 3,605 1,055 Post-employment benefits 5,558 571 Provisions 5,234 — Deferred tax credits 2,081 — Other 1,837 295 Loss carry-forwards 5,190 — Deferred tax assets/liabilities 24,666 10,056 14,610 Netting of assets/liabilities (5,272) (5,272) Deferred tax balances, net 19,394 4,784 14,610 2021 Intangible assets and property, plant and equipment 160 1,331 Current assets 3,605 862 Post-employment benefits 6,782 567 Provisions 3,555 — Deferred tax credits 5,288 — Other 1,425 44 Loss carry-forwards 4,214 — Deferred tax assets/liabilities 25,029 2,804 22,225 Netting of assets/liabilities (1,920) (1,920) Deferred tax balances, net 23,109 884 22,225 Changes in deferred taxes, net 2022 2021 Opening balance, net 22,225 25,207 Recognized in net income 1,617 188 Recognized in other comprehensive income (2,099) (556) Balances regarding acquired/divested businesses (3,911) 171 Deferred tax credits utilization (3,586) (3,027) Translation difference 364 242 Closing balance, net 14,610 22,225 Total tax reported in other comprehensive income (OCI) amounted to SEK million, of which actuarial gains and losses related to pensions constituted SEK million, revaluation of borrowings SEK million, cash flow hedges SEK – million and non-controlling interests SEK million. Of the total tax effect reported in OCI, SEK –2,099 (–556) million is deferred tax and SEK –881 million is current tax. 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. Tax loss carry-forwards Significant 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. The majority of the recognized tax loss carry-forwards pertains to Sweden, US, UK Future income projections considering 5G roll-out, As of December 31, 2022, the recognized tax loss carry-forwards amounted to SEK 23,438 (19,635) million. The increase is primarily attributable to Vonage acquisition. The tax value of the tax loss carry-forward is reported as a tax asset based on the indefinite utilization period and the expectation that the group will realize a significant taxable income 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 value 2023 17 3 2024 12 2 2025 19 6 2026 85 22 2027 1,236 317 2028 or later (also includes unlimited carry-forwards) 22,069 4,840 Total 23,438 5,190 In addition to the table above there are tax loss carry-forwards of SEK 8,490 (4,038) million at a tax value of SEK 1,777 (671) million (including SEK 2,394 million relating to the recent US acquisitions) that have not been recognized due to judgments that they are unlikely to be utilizable against future taxable profits in the respective jurisdictions. The majority of the tax loss carry-forwards have an expiration date in excess of five years. Risk assessment on the business plans is carried out on a regular basis, and deferred tax asset recoverability analysis will be performed if conditions suggest that such assets may be impaired. The adoption of the amendment to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction from 1 January 2023 is not expected to have a material impact on the deferred tax balances, however it is expected to impact the disclosure of deferred tax balances which will be restated as appropriate in 2023. |
H2 Earnings per share
H2 Earnings per share | 12 Months Ended |
Dec. 31, 2022 | |
Basic And Diluted Earning Per Share [Abstract] | |
H2 Earnings per share | Earnings per share Earnings per share 2022 2021 2020 Basic Net income attributable to owners of the Parent Company (SEK million) 18,724 22,694 17,483 Average number of shares outstanding, basic (millions) 3,330 3,329 3,323 Earnings per share, basic (SEK) 5.62 6.82 5.26 Diluted Net income attributable to owners of the Parent Company (SEK million) 18,724 22,694 17,483 Average number of shares outstanding, basic (millions) 3,330 3,329 3,323 Dilutive effect for stock purchase (millions) 4 3 3 Average number of shares outstanding, diluted (millions) 3,334 3,332 3,326 Earnings per share, diluted (SEK) 5.62 6.81 5.26 |
H3 Statement of cash flows
H3 Statement of cash flows | 12 Months Ended |
Dec. 31, 2022 | |
Statement of cash flows [abstract] | |
H3 Statement of cash flows | Statement of cash flows Cash and cash equivalents include cash of SEK 19,746 (24,014) million and cash equivalents of SEK 18,603 (30,036) million. For more information regarding the disposition of cash and cash equivalents and unutilized credit commitments, see note F1 “Financial risk management.” Cash and cash equivalents as of December 31, 2022, include SEK 2,246 (2,616) million in countries where there exist significant cross-border conversion restrictions due to hard currency shortage or strict government controls. This amount is not directly available for distribution to the Parent Company, however it may be used to pay normal business expenditures in the local jurisdictions, thereby reducing group liabilities. Adjustments to reconcile net income to cash 2022 2021 2020 Property, plant and equipment Depreciations 4,114 3,674 3,602 Impairment losses 274 198 512 Total 4,388 3,872 4,114 Right-of-use Depreciations 2,451 2,277 2,387 Impairment losses 66 — 47 Total 2,517 2,277 2,434 Intangible assets Amortizations Capitalized development expenses 1,586 1,343 906 Customer relationships, IPRs and other intangible assets 1,991 1,164 1,083 Total amortizations 3,577 2,507 1,989 Impairments Customer relationships, IPRs and other intangible assets 61 201 137 Goodwill — 112 — Total impairments 61 313 137 Total 3,638 2,820 2,126 Total depreciation, amortization and impairment losses on property, plant and equipment and intangible assets 10,543 8,969 8,674 Taxes 5,383 6,576 10,436 Dividends from joint ventures/associated companies 1) 58 90 43 Undistributed earnings in joint ventures/associated companies 1) (3) 270 331 Gains/losses on investments and sale of operations, intangible assets and PP&E, net 2) (287) (971) 77 Other non-cash 3) 1,944 2,209 370 Total adjustments to reconcile net income to cash 17,638 17,143 19,931 1) See note E3 “Associated companies.” 2) Includes revaluation gains and losses on investments, see note B4 “Other operating income and expenses.” 3) Relates mainly to unrealized foreign exchange, gains/losses on financial instruments. For information about reconciliation of liabilities arising from financing activities, see note F4 “Interest-bearing liabilities.” Acquisitions/divestments of subsidiaries and other operations Acquisitions Divestments 2022 Cash flow from business combinations 1) (51,734) 20 Acquisitions/divestments of other investments (261) 287 Total (51,995) 307 2021 Cash flow from business combinations 1) (256) 273 Acquisitions/divestments of other investments (133) 175 Total (389) 448 2020 Cash flow from business combinations 1) (9,534) 4 Acquisitions/divestments of other investments (123) 55 Total (9,657) 59 1) See also note E2 “Business combinations.” |
H4 Related party transactions
H4 Related party transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions [abstract] | |
H4 Related party transactions | Related party transactions Related party transactions, SEK billion 2022 2021 2020 Sales to Ericsson Nikola Tesla 0.3 0.4 0.4 Purchases from Ericsson Nikola Tesla 1.5 1.2 1.2 Loans to MediaKind (Leone Media Inc.) 0.6 0.5 0.5 IAS 24, “Related Party Disclosures” requires disclosure of related party relationships, transactions and outstanding balances. During 2022, 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. The main related party transactions relate to Ericsson Nikola Tesla d.d located in Croatia, where Ericsson holds 49.07% of the shares and to MediaKind (Leone Media Inc.) located in US, where Ericsson holds 45.5% of the shares. For information regarding equity and Ericsson’s share of assets, liabilities and income in joint ventures and associated companies, see note E3 “Associated companies.” For information regarding transactions with the Board of Directors and Group management, see note G2 “Information regarding members of the Board of Directors and Group management.” For information about the Company’s pension trusts, see note G1 “Post-employment benefits.” |
H5 Fees to auditors
H5 Fees to auditors | 12 Months Ended |
Dec. 31, 2022 | |
Auditor's remuneration [abstract] | |
H5 Fees to auditors | Fees to auditors Fees to auditors 2022 Deloitte Others Total Audit fees 163 7 170 Audit-related fees 7 2 9 Tax fees 2 11 13 Other fees 1 22 23 Total 173 42 215 2021 Deloitte Others Total Audit fees 132 8 140 Audit-related fees 9 1 10 Tax fees 2 6 8 Other fees 1 2 3 Total 144 17 161 2020 Deloitte Others Total Audit fees 97 9 106 Audit-related fees 8 — 8 Tax fees 4 6 10 Other fees 5 2 7 Total 114 17 131 At the 2022 Annual General Meeting Deloitte was appointed auditor for the period until the 2023 Annual General Meeting. The audit-related services include quarterly reviews and assurance on Ericsson’s Sustainability and Corporate Responsibility report. The tax services include corporate tax compliance work. Other services include work related to agreed-upon-procedures engagements. |
H6 Events after the reporting p
H6 Events after the reporting period | 12 Months Ended |
Dec. 31, 2022 | |
Events After The Reporting Period [Abstract] | |
Events after the reporting period | Events after the reporting period Proposals from the Nomination Committee On January 11, 2023, Ericsson announced – Jan Carlson, Chairman (re-election – Jon Fredrik Baksaas (re-election) – Carolina Dybeck Happe (re-election) – Börje Ekholm (re-election) – Eric A. Elzvik (re-election) – Kristin S. Rinne (re-election) – Helena Stjernholm (re-election) – Jacob Wallenberg (re-election) – Jonas Synnergren (new election) – Christy Wyatt (new election) In addition, the Nomination Committee informed the Company that the current chairman, Ronnie Leten, and board members Kurt Jofs and Nora Denzel had informed the Nomination Committee that they will not stand for re-election The Company expects to hold its Annual General Meeting on March 29, 2023, and the Nomination Committee’s complete proposals and motivated statement are available on the Company’s website www.ericsson.com. Ericsson announces changes to the Executive Team On January 25, 2023, Ericsson announced that Jenny Lindqvist has been appointed as Senior Vice President, Head of Market Area Europe and President & Jenny Lindqvist has a Master of Science in Business and As a member of Ericsson’s Executive Leadership Team, Jenny Lindqvist succeeds Stefan Koetz who has been acting in this role as of June 1, 2022. Stefan will take on a new role as Head of Strategic Projects for Market Area Europe and atin America. Update on deferred prosecution agreement In 2019, Ericsson entered into a deferred prosecution agreement (DPA) with the United States Department of Justice (DOJ) in order to resolve past (prior to 2017) Foreign Corrupt Practices Act (FCPA) violations relating to misconduct in certain countries. The DPA provided that, in the event of any breach of its ongoing DPA obligations, the Company could be prosecuted for the historical FCPA violations covered by the DPA. As announced in October 2021 and March 2022, the DOJ notified Ericsson that it failed to provide certain documents and information to the DOJ in a timely manner and did not adequately report to the DOJ certain information relating to the 2019 internal Iraq investigation. The DOJ has not alleged or charged Ericsson with any new criminal misconduct since the start of the DPA. The Company’s internal investigation and its cooperation with authorities in relation to the matters discussed in a 2019 Iraq-related internal investigation report remain open and ongoing. The Company continues to thoroughly investigate the matters in full cooperation with the DOJ and the SEC. As previously disclosed, the Company’s 2019 investigation did not conclude that Ericsson made or was responsible for any payments to any terrorist organization and significant further investigation over the course of 2022 has not altered this conclusion. Since 2019, Ericsson has taken substantial remedial measures, overseen by the Board of Directors. These include enhancing its group-wide approach to risk management and strengthening its compliance program and internal controls. The Company agreed in December 2022 to extend its independent compliance monitorship with one year, until June 2024, to further our efforts to embed best-in-class compliance, risk management and internal controls across the organization. On March 2, 2023, the Company reached a resolution (DOJ Plea Agreement) with the DOJ regarding non-criminal breaches under its DPA. Under the DOJ Plea Agreement, Ericsson will plead guilty to previously deferred charges relating to conduct prior to 2017. In addition, Ericsson has agreed to pay a fine of USD 206,728,848. The entry of the DOJ Plea Agreement will bring the DPA to an end. In the fourth quarter of 2022, the Company made a provision of SEK 2.3 billion (approx. USD 220 million) in relation to the DOJ Plea Agreement, including estimated expenses (SEK 0.1 billion) for the extended compliance monitorship. |
A1 Significant accounting pol_2
A1 Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation 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, 2022, have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB, and 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 2022, the Company has applied IFRS as issued by the IASB (IFRS effective as per December 31, 2022). There is no difference between IFRS effective as per December 31, 2022, 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. The financial statements were approved by the Board of Directors on March 7 Disclosure about new standards and amendments applied as from January 1, 2022, can be found in the end of this note. The preparations for the adoption of new standards and interpretations not adopted in 2022 are disclosed at the end of this note, see heading Other. Basis of presentation The financial statements are presented in millions of Swedish Krona (SEK). They are prepared on a going concern and historical cost basis, except for certain financial assets and liabilities that are stated at fair value: financial instruments classified as fair value through profit and loss (FVTPL), financial instruments classified as fair value through other comprehensive income (FVOCI) and plan assets related to defined benefit pension plans. Assets acquired under business combinations are fair valued at initial recognition. Financial information in the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of cash flows and the consolidated statement of changes in equity with related notes are presented with two comparison years. For the consolidated balance sheet, financial information with related notes is presented with one comparison year. |
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, Telefonaktie-bolaget 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 comprised of the 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. |
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 | Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of each respective transaction. 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 fair value through other comprehensive income (FVOCI) are allocated between translation differences resulting from changes in the amortized cost of the security and other changes in the carrying amount of the security. Translation differences related to changes in the amortized cost are recognized in profit or loss, and other changes in the carrying amount are recognized in Other Comprehensive Income (OCI). Foreign currency exchange effect is presented as a net item within Financial income and expenses, reported separately from other financial income and expenses items as this reflects the way the Company manages its foreign exchange risks on a net basis. |
Translations of Group companies | Translations of 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 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 are 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. |
Revenue recognition | Revenue recognition The following paragraphs describe the types of contracts, when performance obligations are satisfied, and the timing of revenue recognition. They also describe the normal payment terms associated with such contracts and the resulting impact on the balance sheet over the duration of the contracts. The majority of Ericsson’s business is for the sale of standard products and services. |
Standard products and services | Standard products and services Products and services are classified as standard solutions if they do not require significant installation and integration services to be delivered. Installation and integration services are generally completed within a short period of time, from the delivery of the related products. These products and services are viewed as separate distinct performance obligations. This type of customer contract is usually signed as a frame agreement and the customer issues individual purchase orders to commit to purchases of products and services over the duration of the agreement. Revenue for standard products is 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 sales, transfer of control is usually deemed to occur when the equipment arrives at the customer site. Standard product software is sold as an on-premises Software licenses are also sold on a when-and-if Transaction prices under these contracts are usually fixed, and mostly billed upon delivery of the hardware or software, or completion of installation services. A proportion of the transaction price may be billed upon formal acceptance of the related installation services, which will result in a contract asset for the proportion of the transaction price that is not yet billed. Amounts billed are normally subject to payments terms within 60 days from invoice date. Customer finance agreements are agreed separately with some customers where payment terms exceed 179 days. Revenue for recurring services such as customer support and managed services is recognized as the services are delivered, pro-rata |
Enterprise solutions | Enterprise solutions Enterprise solutions comprise mainly of software platform solutions, delivered as-a-service pro-rata Cloud services allow the customer to use hosted software over the contract period without taking possession of the software. Cloud services are highly integrated with the software and the individual components are not considered distinct, hence all revenue is recognized in the period these services are provided. Contract duration ranges from one month to 5 years. Where equipment is supplied, lease assessment is performed. In most cases, no lease arrangement is identified. Cost of equipment is expensed as cost of sales over the contract period. Costs relating to services delivered are recognized as cost of sales when incurred. Revenue for fixed fee is recognized on a pro-rata Services sold through wholesalers or distributors are assessed for principal or agent relationship. Wholesalers are treated as agents for services that are activated upon delivery of equipment to the end users since the Company still has the primary responsibility to the customers for providing the services, hence revenue (in the gross amount) is recognized ratably from activation until the end of the contract. In some cases within the communication application platform interfaces (‘API’) business, wholesalers are viewed both as our customers and suppliers, hence revenue and costs of sales are accounted for on a gross basis when usage by the end customer occurs. For fixed fee contracts, billing is typically in advance, resulting in contract liability. For usage based contracts, billing is in arrears, resulting in a receivable. Typical credit term is 30 to 45 days. This type of business applies to the Enterprise segment. |
Intellectual Property Rights (IPR) | Intellectual Property Rights (IPR) This type of contract relates to the patent and licensing business. The Company has assessed that the nature of its IPR contracts is such that they provide customers a license with the right to access the Company’s intellectual properties over time, therefore revenue shall be recognized over the duration of the contract. Royalty revenue based on sales or usage is recognized when the sales and usage occur. The transaction price on these contracts is usually structured as a royalty fee based on sales or usage over the period, measured on a quarterly basis. This results in a receivable balance if the billing is performed the following quarter after measurement. Some contracts include lump sum amounts, payable either up front at commencement or on an annual basis. This results in a contract liability balance if payment is in advance of revenue, as revenue is recognized over time. Amounts billed are normally subject to payments terms within 60 days from invoice date. As described in note B1 “Segment Information”, revenue from IPR licensing contracts are allocated to the segments Networks and Cloud Software and Services. |
Customer contract related balances | Customer contract related balances Trade receivables include amounts that are billed in accordance with customer contract terms and amounts that the Company has an unconditional right to, with only passage of time before the amounts can be billed in accordance with the customer contract terms. Customer finance credits arise from credit terms exceeding 179 days in the customer contract or a separate financing agreement signed with the customer. Customer finance is a class of financial assets that is managed separately from receivables. See note F1 “Financial risk management,” for further information on credit risk management of trade receivables and customer finance credits. Where significant financing is provided to the customer, revenue is adjusted to reflect the impact of the financing transaction. These transactions could arise from the customer finance credits above if the contracted interest rate is below the market rate or through implied financing transactions due to payment terms of more than one year from the date of transfer of control. The Company has elected to use the practical expedient not to adjust revenue for transactions with payment terms, measured from the date of transfer of control, of one year or less. Contract asset is unbilled sales amount relating to performance obligation that has been satisfied under customer contract but is conditional on terms other than only the passage of time before payment of the consideration is due. Contract liability relates to amounts that are paid by or due from customers for which performance obligations are unsatisfied or partially satisfied. Advances from customers are also included in the contract liability balance. |
Deferred sales commissions | Deferred sales commissions The Company has various incremental commission costs for internal sales personnel and channel partners that relate to the acquisition of customer contracts in the Enterprise segment. These costs are capitalized as deferred contract acquisition costs (within Other non-current |
Segment reporting | Segment reporting The segment presentation, as per each segment, is based on the Company’s accounting policies as disclosed in this note. 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 CEO is defined as the CODM function in the Company. The Company’s segment disclosure about geographical areas is based on the country in which transfer of control of products and services occur. For further information, see note B1 “Segment information.” |
Inventories | Inventories Inventories are measured at the lower of cost or net realizable value and using cost formula 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 initially recognized as CWIP (see Revenue recognition policy). When the related revenue is recognized, CWIP is derecognized and is instead recognized as Cost of sales. In note A2, “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 after-tax relation to cash flows and discount rate is applied because available models for calculating discount rate include a tax component. The effect of after-tax before-tax before-tax Additional disclosure is required in relation to goodwill impairment testing: see note A2 “Critical accounting estimates and judgments” and note C1 “Intangible assets.” |
Intangible assets other than goodwill | Intangible assets other than goodwill Intangible assets other than goodwill comprises intangible assets acquired through business combination in order of materiality they are customer relationships, technology (patents), trademarks and software. In addition there are capitalized development expenses and separately acquired intangibles assets, mainly consisting of software. At initial recognition, acquired intangible assets relating 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 the 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 the 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 the income statement 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. Amortization of capitalized development expenses is made according to the straight-line method over their useful lives, which is normally three years. The Company has not recognized any intangible assets with indefinite useful life other than goodwill. Impairment tests are performed when there is an indication of impairment. Tests are performed in the same way as for goodwill but on an asset level, see above. However, intangible assets not yet available for use are tested annually for impairment. 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 A2, “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 and other technical assets, other equipment, tools and installations, and construction in progress. They are stated at cost less accumulated depreciation and any impairment losses. Depreciation is charged to the income statement, 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. For each item of property, plant and equipment, the Company recognizes separate components based on 1) physical component, and 2) a non-physical 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. |
Leases | Leases The main types of assets leased by the Company are, in the order of materiality, real estate, and vehicles and IT-equipment. Leases when the Company is the lessee The Company recognizes right-of-use non-lease At commencement date the lease liabilities are measured at the present value of the lease payments not paid at the commencement date, discounted using the Company’s incremental borrowing rate. The incremental borrowing rate is calculated considering interest swap rates, the creditworthiness of the entity that signs the lease and an adjustment for the asset being collateralized. Lease payments included in the liability are fixed payments, variable payments depending on an index or rate and penalties for termination of contracts. After the commencement date, the amount of lease liabilities is measured on an amortized cost basis using the effective interest method where the lease liabilities increase related to the accrued interest and decrease due to lease payments made. In addition, the lease liability is remeasured if there is a modification, a change in the lease term or a change in the future lease payments resulting from a change in an index or rate used to determine such lease payments. At commencement date the right-of-use After commencement date the right-of-use right-of-use right-of-use The Company applies the recognition exemption for short-term leases and leases for which the underlying asset is of low value and recognizes the lease payments for those leases as an expense on a straight-line basis over the lease term. The interest expense on lease liabilities in the income statement is presented as a component of finance costs separate from the depreciation charges for right-of-use low-value Leases when the Company is the lessor Lease contracts with the Company as lessor are classified as finance leases when substantially all 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 revenue as well as depreciation is recognized on a straight-line basis over the lease term. When the Company acts as a lessor it is mainly in relation to real estate sublease, financing and operating. |
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, the estimated cash flows are discounted to present value. However, the actual outflows as a result of the obligations may differ from such estimates. Provisions mainly relate to restructuring, customer and supplier-related provisions, warranty commitments and other obligations, cash-settled share-based payments, claims or obligations as a result of patent infringement, and other litigations. 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 has a constructive obligation and can reliably estimate the related liabilities. The estimate is based on the Company’s expected expenditure to settle the obligation and is adjusted when changes to the expenditure is known. Customer-related provisions mainly consist of estimated losses on onerous contracts. For losses on customer contracts, a provision equal to the total estimated loss is recorded immediately when a loss from a contract is probable and can be estimated reliably. The loss is calculated based upon the lower of the unavoidable costs to fulfill a contract and the exit penalty. The unavoidable cost includes both the incremental and allocated costs to fulfill the contract. Supplier-related provisions relate to contractual obligations, mostly relating to inventory, which has been assessed to be at risk for obsolescence based on the business forecast. Based on a risk assessment a provision equal to the best estimate of the expected obsolescence relating to the contractual commitments is provided for. 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. Share-based payment provision relates to cash-settled share-based programs. Refer to the accounting policy under “Cash-settled plans.” Other provisions relate mainly to litigations and other provisions which do not fall within the defined categories. 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 the Company’s 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. Present or possible obligations which do not meet the provision recognition criteria are reported as contingent liabilities. For further detailed information, |
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 a non-controlling |
Non-controlling interests | Non-controlling The Company treats transactions with non-controlling non-controlling non-controlling At acquisition, the Company chooses 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 the 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. Any change in other comprehensive income of joint ventures and associated companies are presented as part of other comprehensive income. If the Company’s interest in an associated company is nil, the Company does not, 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 is 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 EBIT. 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 “Income tax,” 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 are included in consolidated equity since they are undistributed. They 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.” 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. |
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 securities are recognized on the settlement date. Financial assets are derecognized when the rights to receive cash flows from the assets 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 amortized cost, at fair value through other comprehensive income (FVOCI), and at fair value through profit or loss (FVTPL). The classification depends on the cash flow characteristics of the asset and the business model in which it is held. 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 using observable inputs such as market prices for implied volatility, foreign exchange and interest rates. Where there are no observable market data, fair values are calculated using other inputs such as data from transactions, external evidence on exit price or other analytical techniques. |
Financial assets at amortized cost | Financial assets at amortized cost Financial assets are classified as amortized cost if the contractual terms give rise to payments that are solely payments of principal and interest on the principal amount outstanding and the financial asset is held in a business model whose objective is to hold financial assets in order to collect contractual cash flows. These assets are subsequently measured at amortized cost using the effective interest method, minus impairment allowances. Interest income and gains and losses from financial assets at amortized cost are recognized in financial income. Interest bearing assets, including cash equivalents, held with the objective to collect contractual cash flows, are classified as amortized cost assets. |
Financial assets at fair value through other comprehensive income | Financial assets at fair value through other comprehensive income (FVOCI) Assets are classified as FVOCI if the contractual terms give rise to payments that are solely payments of principal and interest on the principal amount outstanding and the financial asset is held in a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets. These assets are subsequently measured at fair value with changes in fair value recognized in other comprehensive income (OCI), except for effective interest, impairment gains and losses and foreign exchange gains and losses which are recognized in the income statement. Upon derecognition, the cumulative gain or loss in OCI is reclassified to the income statement. Trade receivables are classified as FVOCI because the business model is primarily to collect, with occasional sales. |
Financial assets at fair value through profit or loss | Financial assets at fair value through profit or loss (FVTPL) All financial assets that are not classified as either amortized cost or FVOCI are classified as FVTPL. Derivatives are classified as FVTPL, unless they are designated as hedging instruments for the purpose of hedge accounting. Derivatives assets and liabilities are offset where there is legally enforceable right to set-off, non-current Interest-bearing assets including cash collaterals paid in the Parent Company are classified as FVTPL as they are either held in a portfolio managed on a fair value basis or held for short term liquidity purposes. Customer finance receivables are classified as FVTPL because they are primarily held for sale. These assets are presented on the balance sheet based on their maturity date (i.e., those with a maturity longer than one year are presented as non-current). non-current Gains or losses arising from changes in the fair values of investment in shares and participations are presented in the income statement within other operating income. Gains and losses on derivatives are presented in the income statement as follows. Gains and losses on derivatives used to hedge foreign exchange risks are presented within net foreign exchange gains and losses. Gains and losses on interest rate derivatives used to hedge financial assets and liabilities are presented in financial income and financial expense, respectively. Gains and losses on revaluation of customer financing receivables are presented in the income statement as selling expenses. Gains and losses arising from changes in the fair values of all other assets in the FVTPL category are presented in the income statement within financial income. Dividends on equity instruments are recognized in the income statement as part of financial income when the Company’s right to receive payments is established. |
Impairment in relation to financial assets | Impairment in relation to financial assets At each balance sheet date, financial assets classified as either amortized cost or FVOCI and contract assets are assessed for impairment based on Expected Credit Losses (ECL). ECLs are the differences between all contractual cash flows that are due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate. The Company adopts a simplified approach for trade receivables and contract assets whereby allowances are always equal to lifetime ECL. The Company has established a provision matrix based on historical credit loss experience, which has been adjusted for current conditions and expectations of future economic conditions. The losses are recognized in the income statement. When there is no reasonable expectation of collection, the asset is written off. Other amortized costs assets are mainly investment grade assets deemed to be low risk hence credit risk is assumed not to have increased significantly since initial recognition. If the Company identifies evidence of significant change in credit risk on the assets, lifetime ECL is used to calculate allowance on the asset. Default is deemed if the asset is more than 90 days past due, after which lifetime ECL is also used to calculate allowance on the asset. |
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 expired. |
Borrowings | Borrowings Borrowings issued by the Parent Company are designated FVTPL because they are managed on a fair value basis. Changes in fair value are recognized in financial expense, except for changes in fair value due to changes in credit risk which are recognized in other comprehensive income. Borrowings not issued by the Parent Company and cash collaterals received are classified as amortized cost liabilities. They are initially recognized at fair value, net of transaction costs incurred. These borrowings are subsequently measured 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. |
Trade payables | Trade payables Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. Invoices sold to banks under the Company’s supply chain financing program continue to be recognized as trade payables as there is no significant change in the nature and function of the liabilities. |
Cash flow hedge accounting | Cash flow hedge accounting The Company has the following recurring hedge programs: a) Certain customer contracts where a fluctuation in the USD/SEK foreign exchange (FX) rate would significantly impact net sales. These contracts are multi-year contracts denominated in USD with highly probable payments at fixed points in time. b) Highly probable forecasted sales denominated in USD in Ericsson AB (‘EAB) for the next 7 to 18 months are hedged on a monthly rolling basis. For both programs, the Company enters into FX forward contracts that match the terms of the foreign exchange exposure as closely as possible and designates these as hedging instruments. At inception, the Company documents the economic relationship between the hedged item and hedging instrument. For FX hedges, the hedge ratio is usually 1:1. The Company designates changes in forward rates as the hedged risk. When applying hedge accounting, the effective portion of changes in the fair value of derivatives that is designated and qualifies as cash flow hedges is recognized in OCI. The gain or loss relating to an ineffective portion is recognized immediately in Financial income and expenses, net. Upon recognition of the hedged net sales, the cumulative amount in cash flow hedge reserve is released in the OCI as a reclassification adjustment and recognized in net sales. In addition to the recurring hedge programs, cash flow hedge is also designated for certain highly probable acquisition expected to be transacted in foreign currencies. FX derivatives are used as hedging instruments, at a hedge ratio of 1:1. The Company designates changes in forward rates as the hedged risks. The accounting is similar to that described for the cash flow hedge above, except that upon recognition of the hedged acquisition, the cumulative amount in the cash flow hedge reserve is released and recognized as a basis adjustment to the goodwill. |
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 for such bonds, the market yields on government bonds are used. The calculations are based upon actuarial assumptions that are updated 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 and changes in the discount rate. Actuarial gains and losses and gains and losses from remeasurement of plan assets 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, referred to as ‘asset ceiling’. 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. Current service cost relating to employee service is recognized in the profit and loss in the period. Past service cost relating to plan amendments or curtailment is recognized immediately in the period it occurs. 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 A2, “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 the services received under the plans. For share-settled plans, a corresponding increase in equity shall be recognized. As from 2017 the granted share-based programs are cash-settled, except for programs for the Executive Team. Those programs are share-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 relate to the development of the Parent Company’s share price in relation to a group of reference shares. All plans have service conditions and some of them have performance or market conditions. For share-settled plans, a corresponding increase in equity shall be recognized. 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. For further detailed information, see note G3 “Share-based compensation.” 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 the 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, and accounted for as a provision. Otherwise the accounting is similar to a share-settled plan. For further detailed information, see note G3 “Share-based compensation.” Compensation to the Board of Directors Since 2008, the annual general shareholders meeting of the Parent Company has each year resolved that the Board members shall be able to choose to receive part of the Board remuneration in the form of synthetic shares. The program gives non-employee pro-rata |
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. Current income tax is measured at the tax rate that is expected to be applied based on the tax laws that have been enacted or substantially enacted for the reporting period in the corresponding jurisdiction. Deferred tax is recognized for temporary differences between the book values of assets and liabilities and their tax values for unused tax loss carry-forwards and for unused tax credits. 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, tax loss carry-forwards and tax credits 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. As prescribed in IFRIC 23, only uncertainty over income tax treatment is considered if and when recognizing and measuring income tax items in the financial statements. 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 and/ or tax credits in different tax jurisdictions. All deferred tax assets are subject to annual review of probable utilization. In note A2, “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. |
Earnings per share | Earnings per share Basic earnings per share are calculated by dividing net income attributable to owners of the Parent Company by the weighted average number of shares outstanding (total number of shares less treasury shares) during the year. Diluted earnings per share are calculated by dividing net income attributable to owners 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. |
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. Movements in cash collaterals received and bank borrowings less than 3 months (used for short term liquidity purposes) are presented net within “Other financing activities”. |
Government grants | Government grants Government grants are recognized when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants will be received. Government grants received are mainly recognized in the consolidated income statement as a deduction against the related expense. |
New accounting standards and interpretations | New accounting standards and interpretations On January 1, 2022, the following amendments issued by the IASB were adopted with no material impact on the results and financial position of the Company. – IAS 16: Property, Plant and Equipment (PP&E) – Proceeds before Intended Use – IAS 37: Onerous Contracts – Cost of Fulfilling a Contract – Annual Improvements to IFRS Standards 2018–2020 – IFRS 3: Reference to the Conceptual Framework A number of new standards, amendments to standards and interpretations are not yet effective for the year ended December 31, 2022 and have not been applied in preparing these consolidated financial statements. The IASB has issued the following new standard with effective date January 1, 2023: – IFRS 17 Insurance contracts (including the June 2020 and December 2021 amendments to IFRS 17, which establishes principles for the recognition, measurements, presentation and disclosure of insurance contracts.) The IASB has also issued the following amendments with effective date January 1, 2023: – Amendments to IAS 1 Presentation of financial statements – Classification of liabilities as current or non-current – Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 – Disclosure of Accounting policies – Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors – Definition of Accounting Estimates – Amendments to IAS 12 Income Taxes – Deferred Tax related to Assets and Liabilities arising from a Single Transaction. The Company has finalized the evaluation of any impact on financial results or position from this standard and these amendments and concluded that they will not have a material impact on the results and financial position of the Company. |
B1 Segment information (Tables)
B1 Segment information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of operating segments [abstract] | |
Summary of Reportable Segments | Segment information 2022 Networks Cloud Software Enterprise Other Total Group Segment sales 193,468 60,524 15,380 2,174 271,546 271,546 Net sales 193,468 60,524 15,380 2,174 271,546 271,546 Gross income 86,368 20,106 6,946 (125) 113,295 113,295 Gross margin (%) 44.6% 33.2% 45.2% (5.7)% 41.7% 41.7% Earnings (loss) before financial items and income tax (EBIT) 1) 38,512 (1,689) (6,234) (3,569) 27,020 27,020 EBIT margin (%) 19.9% (2.8)% (40.5)% (164.2)% 10.0% 10.0% Financial income and expenses, net (2,411) Income after financial items 24,609 Income tax (5,497) Net income 19,112 Other segment items Share in earnings of JV and associated companies 30 27 — (40) 17 17 Amortizations (1,424) (122) (2,019) (12) (3,577) (3,577) Depreciations (4,073) (1,792) (515) (185) (6,565) (6,565) Impairment losses (211) (91) (87) (12) (401) (401) Restructuring charges (146) (96) (157) — (399) (399) Gains/losses on investments and sale of operations 253 — 111 (108) 256 256 1) – billion in relation to a potential resolution with the United States Department of Justice regarding, previously announced, non-criminal, alleged breaches under the deferred prosecution agreement (DPA), including estimated expenses for extended compliance monitorship, noting that the Company, on March 2, 2023, entered into the DOJ Plea Agreement with the DOJ and agreed to pay a fine of approximately SEK 2.2 billion in line with the provision made in the fourth quarter 2022, and – billion due to the divestment of IoT and other portfolio adjustments. Segment information Networks Cloud Software Enterprise Other Total Group Segment sales 167,838 56,224 6,236 2,016 232,314 232,314 Net sales 167,838 56,224 6,236 2,016 232,314 232,314 Gross income 78,869 18,829 2,891 160 100,749 100,749 Gross margin (%) 47.0% 33.5% 46.4% 7.9% 43.4% 43.4% Earnings (loss) before financial items and income tax (EBIT) 37,266 (2,234) (2,965) (287) 31,780 31,780 EBIT margin (%) 22.2% (4.0)% (47.5)% (14.2)% 13.7% 13.7% Financial income and expenses, net (2,530) Income after financial items 29,250 Income tax (6,270) Net income 22,980 Other segment items Share in earnings of JV and associated companies 40 72 — (372) (260) (260) Amortizations (1,169) (508) (830) — (2,507) (2,507) Depreciations (3,764) (1,568) (430) (189) (5,951) (5,951) Impairment losses (127) (185) (188) (11) (511) (511) Restructuring charges (262) (254) (16) (17) (549) (549) Gains/losses on investments and sale of operations 14 (51) 998 — 961 961 Segment information Networks Cloud Software Enterprise Other Total Group Segment sales 165,978 59,597 4,792 2,023 232,390 232,390 Net sales 165,978 59,597 4,792 2,023 232,390 232,390 Gross income 72,413 19,496 1,767 48 93,724 93,724 Gross margin (%) 43.6% 32.7% 36.9% 2.4% 40.3% 40.3% Earnings (loss) before financial items and income tax (EBIT) 30,851 (796) (1,935) (312) 27,808 27,808 EBIT margin (%) 18.6% (1.3)% (40.4)% (15.4)% 12.0% 12.0% Financial income and expenses, net (596) Income after financial items 27,212 Income tax (9,589) Net income 17,623 Other segment items Share in earnings of JV and associated companies 37 33 — (368) (298) (298) Amortizations (775) (612) (602) — (1,989) (1,989) Depreciations (3,764) (1,632) (407) (186) (5,989) (5,989) Impairment losses (494) (144) (32) (26) (696) (696) Restructuring charges (746) (277) (267) (16) (1,306) (1,306) Gains/losses on investments and sale of operations (129) 17 1 (30) (141) (141) |
Summary of Products and Services by Segment | Products and Services by Segments Networks Cloud Software Enterprise Other Total 2022 Products 147,997 21,105 4,923 (1) 174,024 Services 45,471 39,419 10,457 2,175 97,522 Total 193,468 60,524 15,380 2,174 271,546 2021 Products 128,951 19,267 3,955 24 152,197 Services 38,887 36,957 2,281 1,992 80,117 Total 167,838 56,224 6,236 2,016 232,314 2020 Products 122,229 20,317 3,735 (95) 146,186 Services 43,749 39,280 1,057 2,118 86,204 Total 165,978 59,597 4,792 2,023 232,390 |
Summary of Geographical Information | Market area 2022 Net sales Non-current 5) Networks Cloud Software Enterprise Other Total Total South East Asia, Oceania and India 3) 23,695 9,179 77 — 32,951 999 North East Asia 4) 22,488 4,015 230 — 26,733 3,385 North America 2) 81,917 13,362 115 — 95,394 41,065 Europe and Latin America 1) 44,644 21,638 508 — 66,790 93,612 Middle East and Africa 11,707 10,472 392 — 22,571 (804) Other 1) 2) 3) 4) 6) 9,017 1,858 14,058 2,174 27,107 — Total 193,468 60,524 15,380 2,174 271,546 138,257 1) Of which in EU 6) 35,859 92,167 Of which in Sweden 6) 3,239 88,057 2) Of which in the United States 6) 109,709 39,906 3) Of which in India 6) 10,957 519 4) Of which in Japan 6) 9,965 187 4) Of which in China 6) 10,523 2,068 5) Total non-current 6) Including IPR licensing revenue reported under Market area Other which is allocated based on the country location of the customer. Other sales are attributed to countries based on the destination of products or services delivered. Market area 2021 Net sales Non-current 5) Networks Cloud Software Enterprise Other Total Total South East Asia, Oceania and India 3) 20,299 8,493 37 — 28,829 1,010 North East Asia 4) 24,464 4,405 252 — 29,121 2,700 North America 2) 66,464 10,913 79 — 77,456 11,971 Europe and Latin America 1) 38,671 21,181 420 — 60,272 52,141 Middle East and Africa 10,743 9,726 316 — 20,785 209 Other 1) 2) 3) 4) 6) 7,197 1,506 5,132 2,016 15,851 — Total 167,838 56,224 6,236 2,016 232,314 68,031 1) Of which in EU 6) 31,307 50,428 Of which in Sweden 6) 2,349 45,997 2) Of which in the United States 6) 79,896 10,749 3) Of which in India 6) 7,482 484 4) Of which in Japan 6) 13,678 261 4) Of which in China 6) 10,078 2,202 5) Total non-current 6) Including IPR licensing revenue reported under Market area Other which is allocated based on the country location of the customer. Other sales are attributed to countries based on the destination of products or services delivered. Market area 2020 Net sales Non-current 5) Networks Cloud Software Enterprise Other Total Total South East Asia, Oceania and India 3) 21,464 8,547 37 — 30,048 812 North East Asia 4) 27,120 5,955 259 — 33,334 2,648 North America 2) 62,199 11,508 68 — 73,775 12,749 Europe and Latin America 1) 33,257 22,116 372 — 55,745 49,895 Middle East and Africa 13,281 9,676 341 — 23,298 140 Other 1) 2) 3) 4) 6) 8,657 1,795 3,715 2,023 16,190 — Total 165,978 59,597 4,792 2,023 232,390 66,244 1) Of which in EU 6) 29,501 48,133 Of which in Sweden 6) 1,123 43,627 2) Of which in the United States 6) 77,835 11,533 3) Of which in India 6) 6,970 407 4) Of which in Japan 6) 12,150 272 4) Of which in China 6) 18,745 2,136 5) Total non-current 6) Including IPR licensing revenue reported under Market area Other which is allocated based on the country location of the customer. Other sales are attributed to countries based on the destination of products or services delivered. |
B2 Net sales (Tables)
B2 Net sales (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue [abstract] | |
Summary of Net Sales | Net sales 2022 2021 2020 Hardware 119,215 106,399 96,294 Software 54,809 45,798 49,892 Services 97,522 80,117 86,204 Net sales 271,546 232,314 232,390 Of which IPR licensing revenues 10,399 8,134 9,975 Of which export sales from Sweden 153,833 140,898 132,269 |
B3 Expenses by nature (Tables)
B3 Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Expenses by nature [abstract] | |
Summary of Expenses by Nature | Expenses by nature 2022 2021 2020 Goods and services 147,023 119,787 120,102 Employee remuneration 89,191 77,462 74,645 Amortizations and depreciations 10,142 8,458 7,978 Impairments, obsolescence allowances and revaluation 4,383 1,456 3,082 Inventory increase, net (7,738) (5,565) (44) Additions to capitalized development (1,720) (962) (817) Expenses charged to cost of sales and operating expenses 241,281 200,636 204,946 |
Summary of Restructuring Charges by Function | Restructuring charges by function 2022 2021 2020 Cost of sales 195 273 725 R&D expenses 54 137 411 Selling and administrative expenses 150 139 170 Total restructuring charges 399 549 1,306 |
B4 Other operating income and_2
B4 Other operating income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Schedule of Other Operating Income and Expenses | Other operating income and expenses 2022 2021 2020 Other operating income Gains on sales of intangible assets and PP&E 85 13 64 Gains on investments and sale of operations 1) 701 1,199 347 Other operating income 445 314 750 Total other operating income 1,231 1,526 1,161 Other operating expenses Losses on sales of intangible assets and PP&E (54) (3) — Losses on investments and sale of operations 1) (445) (238) (488) Impairment of goodwill 2) — (112) — Other operating expenses 3) (3,994) (811) (11) Total other operating expenses (4,493) (1,164) (499) 1) Information about divestments is presented in note E2 “Business combinations.” 2) For more information about the impairment of goodwill, see note C1 “Intangible assets.” 3) 2022 includes a provision of SEK -2.3 billion in relation to a potential resolution with the United States Department of Justice regarding previously announced, non-criminal, alleged breaches under the deferred prosecution agreement (DPA), including estimated expenses for the extended compliance monitorship, noting that the Company, on March 2, 2023, entered into the DOJ Plea Agreement with the DOJ and agreed to pay a fine of approx. SEK 2.2 billion, and charges of - billion related to the divestment of IoT and other portfolio adjustments. |
B5 Inventories (Tables)
B5 Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Classes of current inventories, alternative [abstract] | |
Summary of Inventories | Inventories 2022 2021 Raw materials, components, consumables and manufacturing work in progress 16,873 11,584 Finished products 14,376 11,207 Contract work in progress 14,597 12,373 Inventories, net 45,846 35,164 |
Movements in Obsolescence Allowances | Movements in obsolescence allowances 2022 2021 Opening balance 3,676 3,627 Additions 3,927 1,378 Utilization (2,115) (1,457) Translation differences 228 128 Closing balance 5,716 3,676 |
B6 Customer contract related _2
B6 Customer contract related balances (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Trade Receivables, Customer Finance, Contract Assets, Contract Liabilities and Deferred Sales Commissions | Trade receivables, customer finance, contract assets, contract liabilities and 2022 2021 Customer finance credits 1) 5,370 3,287 Trade receivables 2) 48,413 45,399 Contract assets 9,843 10,506 Contract liabilities 42,251 32,834 Deferred sales commissions 3) 754 316 1) Of the total Customer finance credits balance, SEK 4,955 (2,719) million is current 2) Total trade receivables include SEK 70 (0) million relating to associated companies. 3) Of the total Deferred sales commissions balance SEK 345 (316) million is current. The non-current non-current non-current”) |
Summary of Significant Movements in Contract Assets and Liabilities | Revenue recognized in the period 2022 2021 Revenue recognized relating to the opening contract liability balance 25,601 19,745 Revenue recognized relating to performance obligations satisfied, or partially satisfied, in prior reporting periods (7) (186) Transaction price allocated to the remaining performance obligations 2022 2021 Aggregate amount of transaction price allocated to unsatisfied, or partially unsatisfied, performance obligations 169,609 138,234 |
B7 Other current receivables (T
B7 Other current receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Current assets [abstract] | |
Summary of Other Current Receivables | Other current receivables 2022 2021 Prepaid expenses 2,506 2,290 Advance payments to suppliers 473 426 Derivative assets 1) 1,121 317 Other taxes 2) 3,349 3,022 Other 2,239 1,601 Total 9,688 7,656 1) See also note F1 “Financial risk management.” 2) Other taxes mainly includes VAT receivables. |
B8 Trade payables (Tables)
B8 Trade payables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other current payables [abstract] | |
Summary of Trade Payables | Trade payables 2022 2021 Trade payables to associated companies and joint ventures 179 115 Trade payables, excluding associated companies and joint ventures 1) 38,258 35,569 Total 38,437 35,684 1) Of the trade payable amount SEK 9.7 (8.3) billion relates to supplier invoices under Ericsson’s supplier payments program. |
B9 Other current liabilities (T
B9 Other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of Other Current Liabilities | Other current liabilities 2022 2021 Accrued interest 335 177 Accrued expenses 35,896 30,837 Of which employee-related 19,630 15,380 Of which supplier-related 9,849 9,100 Of which other 1) 6,417 6,357 Derivative liabilities 2) 2,621 762 Other 3) 7,341 6,145 Total 46,193 37,921 1) Major balance relates to accrued expenses for customer projects. 2) See also note F1 “Financial risk management.” 3) Includes items such as VAT and other payroll ded uctio |
C1 Intangible assets (Tables)
C1 Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [line items] | |
Summary of intangible assets | Intangible assets 2022 2021 Capitalized Goodwill Customer relationships, 1) Capitalized Goodwill Customer relationships, 1) Cost Opening balance 19,158 44,963 55,936 18,049 41,592 53,913 Additions 1,720 — 126 962 — 131 Balances regarding acquired/divested business 2) — 40,881 23,451 — 725 (95) Disposals — — (452) — — (18) Translation differences 218 5,070 3,793 147 2,646 2,005 Closing balance 21,096 90,914 82,854 19,158 44,963 55,936 Accumulated amortizations Opening balance (11,885) — (44,456) (10,447) — (41,721) Amortizations (1,586) — (1,991) (1,343) — (1,164) Balances regarding divested business 2) — — 22 — — — Disposals — — 452 — — 18 Translation differences (175) — (2,797) (95) — (1,589) Closing balance (13,646) — (48,770) (11,885) — (44,456) Accumulated impairment losses Opening balance (3,745) (6,759) (7,650) (3,745) (6,647) (7,387) Balances regarding divested business 2) — 415 81 — — — Impairment losses — — (61) — (112) (201) Translation differences — — (114) — — (62) Closing balance (3,745) (6,344) (7,744) (3,745) (6,759) (7,650) Net carrying value 3,705 84,570 26,340 3,528 38,204 3,830 1) Intellectual property rights. 2) For more information on acquired/divested businesses, see note E2 “Business combinations.” |
After-tax discount rates applied [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Summary of discounting of projected after tax cash flows | An after-tax after-tax Post-tax CGU 2022 2021 Networks 9.0 7.5 Cloud Software and Services 10.0 8.0 Vonage 9.5 — Cradlepoint 9.5 10.0 iconectiv 10.0 9.0 Emodo 14.5 12.0 Red Bee Media 11.0 9.5 |
C2 Property, plant and equipm_2
C2 Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of information about property, plant and equipment (abstract) | |
Summary of Property, Plant and Equipment | Property, plant and equipment 2022 Real estate Machinery and other Other equipment, Construction in progress Total Cost Opening balance 6,946 3,549 35,009 705 46,209 Additions 47 200 2,705 1,525 4,477 Balances regarding acquired/divested business 37 — 138 11 186 Disposals (275) (421) (1,638) (253) (2,587) Reclassifications 287 213 593 (1,093) — Translation differences 481 284 1,413 78 2,256 Closing balance 7,523 3,825 38,220 973 50,541 Accumulated depreciations Opening balance (3,741) (2,678) (24,769) — (31,188) Depreciations (502) (373) (3,239) — (4,114) Disposals 226 434 1,509 — 2,169 Translation differences (265) (180) (1,107) — (1,552) Closing balance (4,282) (2,797) (27,606) — (34,685) Accumulated impairment losses Opening balance (283) (104) (1,054) — (1,441) Impairment losses (115) (4) (146) (9) (274) Disposals 44 3 145 9 201 Translation differences (31) (9) (66) — (106) Closing balance (385) (114) (1,121) — (1,620) Net carrying value 2,856 914 9,493 973 14,236 Contractual commitments for the acquisition of property, plant and equipment as per December 31, 2022, amounted to SEK 510 (477) million. Property, plant and equipment 2021 Real estate Machinery and other Other equipment, Construction in progress Total Cost Opening balance 6,503 3,030 32,890 995 43,418 Additions 54 207 2,215 1,187 3,663 Balances regarding acquired/divested business — — (75) — (75) Disposals (348) (135) (2,145) (94) (2,722) Reclassifications 356 270 813 (1,439) — Translation differences 381 177 1,311 56 1,925 Closing balance 6,946 3,549 35,009 705 46,209 Accumulated depreciations Opening balance (3,405) (2,393) (22,863) — (28,661) Depreciations (441) (286) (2,947) — (3,674) Balances regarding divested business — — 50 — 50 Disposals 315 136 1,956 — 2,407 Reclassifications 1 2 (3) — — Translation differences (211) (137) (962) — (1,310) Closing balance (3,741) (2,678) (24,769) — (31,188) Accumulated impairment losses Opening balance (275) (75) (1,024) — (1,374) Impairment losses (22) (30) (146) — (198) Disposals 29 5 176 — 210 Translation differences (15) (4) (60) — (79) Closing balance (283) (104) (1,054) — (1,441) Net carrying value 2,922 767 9,186 705 13,580 |
C3 Leases (Tables)
C3 Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Leases [Abstract] | |
Summary of Components of Right of Use Assets | Leases with the Company as lessee Right-of-use 2022 2021 Real estate Vehicles Other Total Real estate Vehicles Other Total Cost Opening balance 13,756 930 171 14,857 11,784 823 171 12,778 Additions 1,650 168 136 1,954 1,759 258 — 2,017 Balances regarding acquired/divested business 334 — — 334 (10) (11) — (21) Terminations (719) (178) — (897) (395) (180) — (575) Translation differences 874 78 (4) 948 618 40 — 658 Closing balance 15,895 998 303 17,196 13,756 930 171 14,857 Accumulated depre ciati Opening balance (5,687) (495) (79) (6,261) (3,700) (390) (55) (4,145) Depreciations (2,141) (250) (60) (2,451) (2,002) (251) (24) (2,277) Balances regarding divested business — — — — 8 6 — 14 Terminations 393 159 — 552 233 158 — 391 Translation differences (354) (43) 1 (396) (226) (18) — (244) Closing balance (7,789) (629) (138) (8,556) (5,687) (495) (79) (6,261) Accumulated impairment losses Opening balance (303) — — (303) (340) — — (340) Impairment losses (66) — — (66) — — — — Terminations 27 — — 27 63 — — 63 Translation differences (32) — — (32) (26) — — (26) Closing balance (374) — — (374) (303) — — (303) Financial sublease Opening balance (345) — — (345) (313) — — (313) Translation differences (51) — — (51) (32) — — (32) Closing balance (396) — — (396) (345) — — (345) Net carrying value 7,336 369 165 7,870 7,421 435 92 7,948 |
Summary of Cash payments | Cash payments 2022 2021 Repayments of the lease liabilities 1) (2,593 ) (2,368 ) Interest expense of the lease liabilities (464 ) (426 ) Low-value (516 ) (434 ) Variable lease payments not included in the measurement of the lease liabilities (278 ) (238 ) Total cash outflow (3,851 ) (3,466 ) 1) Including advance payments. |
Summary of Future Minimum Payment Receivables | Future minimum payment receivables Financial leases Operating leases 2023 77 67 2024 80 28 2025 14 20 2026 — 19 2027 — 11 2028 and later — 3 Total 171 148 |
D1 Provisions (Tables)
D1 Provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Provisions [abstract] | |
Summary of Provisions | Provisions Restructuring Customer Supplier Warranty Share-based Other Total 2022 Opening balance 639 3,440 1,231 1,074 1,591 1,529 9,504 Additions 400 1,024 561 368 303 4,129 6,785 Balances regarding acquired business 1) — — — — — 1,050 1,050 Reversal of excess amounts (54) (585) (960) (120) (99) (220) (2,038) Charged to income statement 4,747 Utilization 1) (338) (824) (144) (646) (897) (1,724) (4,573) Reclassifications (21) (31) 32 — — 595 575 Translation differences 43 69 2 2 87 82 285 Closing balance 669 3,093 722 678 985 5,441 11,588 Of which current provisions 448 1,215 198 572 642 4,554 7,629 Of which non-current 221 1,878 524 106 343 887 3,959 2021 Opening balance 1,200 3,850 791 987 2,107 1,531 10,466 Additions 303 795 1,020 455 1,367 483 4,423 Reversal of excess amounts (98) (491) (228) (153) (122) (86) (1,178) Charged to income statement 3,245 Utilization (785) (841) (175) (109) (1,837) (462) (4,209) Reclassifications (1) 104 (179) (107) — 39 (144) Translation differences 20 23 2 1 76 24 146 Closing balance 639 3,440 1,231 1,074 1,591 1,529 9,504 Of which current provisions 411 1,488 1,231 320 915 1,417 5,782 Of which non-current 228 1,952 — 754 676 112 3,722 1) Includes a provision from acquired business in the third quarter 2022, which was utilized in the fourth quarter 2022. For more information see note E2 “Business combinations”. |
D2 Contingent liabilities (Tabl
D2 Contingent liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of contingent liabilities [abstract] | |
Summary of Contingent Liabilities | Contingent liabilities 2022 2021 Contingent liabilities 3,322 1,614 Total 3,322 1,614 |
D3 Assets pledged as collater_2
D3 Assets pledged as collateral (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Assets Pledged As Collateral [Abstract] | |
Summary of Assets Pledged as Collateral | Assets pledged as collateral 2022 2021 Chattel mortgages 1) 6,333 6,341 Bank deposits 2) 893 532 Total 7,226 6,873 1) See also note G1 “Post-employment benefits.” 2) See also note F1 “Financial risk mana geme |
D4 Contractual obligations (Tab
D4 Contractual obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Contractual Obligations [Abstract] | |
Summary of Contractual Obligations | Contractual obligations, SEK billion Payment due by period <1 1–3 3–5 >5 2022 year years years years Total Current and non-current 1) 6.3 12.9 9.1 11.2 39.5 Lease obligations 2) 3.0 4.4 2.1 1.1 10.6 Other non-current — 0.6 — 0.1 0.7 Purchase obligations 3) 17.8 3.1 0.2 — 21.1 Trade payables 38.4 — — — 38.4 Commitments for customer finance 4) 44.3 8.6 1.2 — 54.1 Derivatives liabilities 4) 0.9 1.1 0.6 — 2.6 Total 110.7 30.7 13.2 12.4 167.0 2021 Current and non-current 1) 9.8 10.4 3.1 10.1 33.4 Lease obligations 2) 2.6 4.3 2.3 1.4 10.6 Other non-current — 1.0 — 0.6 1.6 Purchase obligations 3) 23.2 4.1 0.3 — 27.6 Trade payables 35.7 — — — 35.7 Commitments for customer finance 4) 34.4 9.7 3.2 — 47.3 Derivatives liabilities 4) 0.4 0.4 — — 0.8 Total 106.1 29.9 8.9 12.1 157.0 1) Current and non-current 2) Future lease obligations, nominal lease liability, see also note C3 “Leases.” 3) The amounts of purchase obligations are gross, before deduction of any related provisions. 4) See also note F1 “Financial risk management.” |
E1 Equity (Tables)
E1 Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [abstract] | |
Summary of Capital Stock | Capital stock Capital stock Parent Company Class A Class B Total December 31, 2022 1,309 15,363 16,672 December 31, 2021 1,309 15,363 16,672 |
Summary of Number of Shares | Number of shares 2022 Class A Class B Total As of January 1 261,755,983 3,072,395,752 3,334,151,735 As of December 31 261,755,983 3,072,395,752 3,334,151,735 2021 Class A Class B Total As of January 1 261,755,983 3,072,395,752 3,334,151,735 As of December 31 261,755,983 3,072,395,752 3,334,151,735 |
Summary of Other Reserves | Other reserves 2022 2021 SEK million Translation Cash flow Revaluation Total Translation Cash flow Revaluation Total Opening balance 1,206 (411) (341) 454 (2,424) 101 (366) (2,689) Other comprehensive income Items that will not be reclassified to profit or loss Revaluation of borrowings due to change in credit risk — — 1,030 1,030 — — 31 31 Cash flow hedge reserve Gains/losses arising during the period — 3,703 — 3,703 — — — — Transfer to goodwill — (3,677) — (3,677) — — — — Tax on items that will not be reclassified to profit or loss — (758) (212) (970) — — (6) (6) Items that have been or may be reclassified to profit Cash flow hedge reserve Gains/losses arising during the period — (701) — (701) — (542) — (542) Reclassification to profit and loss — 280 — 280 — (96) — (96) Translation reserves Changes in translation reserves 7,273 — — 7,273 3,556 — — 3,556 Reclassification to profit and loss (85) — — (85) 46 — — 46 Share of other comprehensive income of JV and associated companies 49 — — 49 28 — — 28 Tax on items that have been or may be reclassified to profit — 87 — 87 — 126 — 126 Other comprehensive income, net of tax 7,237 (1,066) 818 6,989 3,630 (512) 25 3,143 Total comprehensive income 7,237 (1,066) 818 6,989 3,630 (512) 25 3,143 Transfer to retained earnings — 758 — 758 — — — — Closing balance 8,443 (719) 477 8,201 1,206 (411) (341) 454 |
E2 Business combinations (Table
E2 Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about business combination [line items] | |
Summary of Business Divestments Transactions | Divestments Divestments 2020–2022 2022 2021 2020 Proceeds Cash and cash equivalents 20 273 4 Shares in associated companies 298 — — Total proceeds 318 273 4 Net assets disposed of Property, plant and equipment — 26 1 Right-of-use — 7 1 Investments in associates 82 — — Intangible assets — — 48 Goodwill — (48) 4 Other assets 23 51 83 Provisions, incl. post-employment benefits (42) (30) (1) Other liabilities (101 36 6 Total net assets (38) 42 142 Net gains/losses from divestments 356 231 (138) Shares in associated companies (298) — — Cash flow effect 20 273 4 |
Summary of Business Combinations Transactions | Acquisitions 2020–2022 Business Description Transaction date Vonage A US based global provider of cloud-based communications. Jul 2022 Quortus A UK based mobile core software business with expertise in enterprise 4G/5G technology. Nov 2021 Axonix A UK based mobile-first programmatic advertising exchange business. Mar 2021 Cradlepoint A US company providing Wireless WAN Edge 4G and 5G solutions for the enterprise market. Nov 2020 Genaker A Spanish provider of Mission Critical Push-to-talk (MC-PTT) Mar 2020 |
Summary of Business Divestments Transactions | Divestments 2020–2022 Business Description Transaction date Aerialink A US based company providing premier messaging solutions for business to business communications Nov 2022 Data center A data center business located in the Netherlands. Nov 2021 |
Acquisitions 2020-2022 [member] | |
Disclosure of detailed information about business combination [line items] | |
Summary of Net Assets Acquired and Total Consideration Transferred Business Combinations | Acquisitions Acquisitions 2020–2022 2022 2021 2020 Consideration Purchase price paid on acquisition 1) 51,297 256 9,534 Deferred consideration/Others 2) 1,972 — 314 Total consideration, all cash and cash equivalents 53,269 256 9,848 Net assets (liabilities) acquired Intangible a s 23,554 (95) 3,583 Property, plant and equipment 186 1 55 Right-of-use 334 — 126 Investments in associates — — 167 Cash and cash equivalents 521 — 314 Other assets 5,344 21 1,292 Provisions, incl. post-employment benefits (1,050) — (16) Other liabilities (16,916) (348) (2,781) Total identifiable net assets (liabilities) 11,973 (421) 2,740 Goodwill 41,296 677 7,108 Total 53,269 256 9,848 Acquisition-related costs 3) 436 11 92 1) 2022 purchase price to acquire shares outstanding is net of hedge release of SEK 3.7 billion. 2) Deferred consideration relates to the pre-combination 3) Acquisition-related costs are included in Selling and administrative expenses in the consolidated income statement. |
Vonage [Member] | |
Disclosure of detailed information about business combination [line items] | |
Summary of Net Assets Acquired and Total Consideration Transferred Business Combinations | Vonage 2022 Consideration Purchase price paid on acquisition 1) 51,297 Deferred consideration 2) 1,972 Total consideration, all cash and cash equivalents 53,269 Net assets (liabilities) acquired Intangible assets 23,554 Property, plant and equipment 186 Right-of-use 334 Deferred tax assets 2,353 Trade receivables 1,094 Cash and cash equivalents 521 Other assets 1,896 Provisions (1,050) Deferred tax liabilities (6,264) Borrowings (6,473 Lease liabilities (403) Other liabilities (3,775) Total identifiable net assets (liabilities) 11,973 Goodwill 41,296 Total 53,269 Acquisition-related costs 3) 436 |
E3 Associated companies (Tables
E3 Associated companies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments accounted for using equity method [abstract] | |
Equity in Associated Companies | Equity in associated companies 2022 2021 Opening balance 941 1,274 Investments 298 — Share in earnings 17 (260 ) Distribution of capital stock (24 ) — Taxes (14 ) (11 ) Dividends (58 ) (90 ) Divested business (82 ) (260 ) Translation differences 49 28 Closing balance 1,127 941 |
F1 Financial risk management (T
F1 Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Financial Risk Management [Abstract] | |
Summary of Capital Objectives-Related Information | Capital objectives-related information 2022 2021 Free cash flow before M&A as % of net sales 1) 8.2% 13.8% Positive net cash (SEK billion) 1) 23.3 65.8 Credit rating Fitch Ratings BBB-, stable BBB-, stable S&P Global BBB-, developing BBB-, stable Moody´s Ba1, stable Ba1, stable 1) |
Summary of Net Exposure for Largest Currencies Impact on Sales | Currency exposure, Exposure Sales Sales Sales net Cost Cost 1) Cost USD 2) 106.2 51.5 157.7 (51.8) (77.9) (129.7) EUR 38.2 1.9 40.1 (32.1) 15.2 (16.9) JPY 9.7 — 9.7 (3.7) — (3.7) INR 10.9 (0.4) 10.5 (6.5) 0.1 (6.4) CAD 4.1 — 4.1 (1.0) 0.4 (0.6) TWD 4.5 — 4.5 (1.8) — (1.8) CNY 8.7 (0.3) 8.4 (7.2) 1.2 (6.0) KRW 4.5 — 4.5 (2.5) 0.2 (2.3) 1) External purchases in foreign currency translated to functional currency. 2) Sales transaction exposure in 2022 includes volume in the cash flow hedge of USD 401 million. Based on the outstanding cash flow hedge volume at year end, the hedged sales volume that will occur in 2023 is USD 2,278 million. |
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 — — (1) (1) — (2) Interest-bearing liabilities 1) — — 1 3 4 8 Derivatives — — (1) (2) (3) (6) Total — — (1) — 1 — 1) Borrowings are included as they are designated FVTPL. |
Disclosure of Outstanding Derivatives | Outstanding derivatives Outstanding derivatives 2022 Gross Offset Net Related Net Currency derivatives 1) Assets 1,275 (165) 1,110 (277) 833 Liabilities (2,778) 165 (2,613) 2,382 (231) Interest rate derivatives Assets 11 — 11 — 11 Liabilities (8) — (8) — (8) 2021 Gross Offset Net Related Net Currency derivatives 1) Assets 294 (36) 258 — 258 Liabilities (707) 36 (671) 467 (204) Interest rate derivatives Assets 79 (20) 59 — 59 Liabilities (111) 20 (91) — (91) 1) Currency derivatives designated as cash flow hedge of SEK 566 (9) million are included in Other current receivables and SEK 1,472 (510) million in Other current liabilities. |
Summary of Currency Derivatives Designated as Hedging Instruments | Foreign exchange forward contracts 2022 < 3 3 – 12 > 1 year Total Notional Amount (USD millions) 916 1,362 2,194 4,472 Average forward rate (SEK/USD) 9.66 10.46 9.90 |
Summary of Movements in Allowances for Impairment of Trade Receivables and Contract Assets | Movements in allowances for impairment of trade receivables and contract assets 2022 2021 Opening balance 2,398 2,518 Balances regarding acquired business 90 — Increase in allowance 40 40 Write-offs (70) (163) Translation difference 34 3 Closing balance 1) 2,492 2,398 1) Of which SEK 1 (1) million relates to contract assets. |
Summary of Aging Analysis of Gross Values of Trade Receivables and Contracts Assets by Risk Category | Aging analysis of gross values of trade receivables and contracts assets by Days past dues 2022 Not 1-90 91-180 181-360 >360 Total Country risk :Low 32,015 2,090 165 103 328 34,701 Country risk: Medium 17,731 1,614 150 134 585 20,214 Country risk: High 3,304 610 384 295 1,240 5,833 Total 53,050 4,314 699 532 2,153 60,748 Days past dues 2021 Not 1-90 91-180 181-360 >360 Total Country risk :Low 36,439 976 171 51 292 37,929 Country risk: Medium 12,119 689 208 220 735 13,971 Country risk: High 4,044 429 293 270 1,367 6,403 Total 52,602 2,094 672 541 2,394 58,303 |
Summary of Outstanding Customer Finance Credit Exposure | Outstanding customer finance credit risk exposure 1) 2022 2021 Fair value of customer finance credits 5,370 3,287 Financial guarantees for third-parties 6 6 Accrued interest 8 9 Maximum exposure to credit risk 5,384 3,302 Less third-party risk coverage (298) (94) The Company’s risk exposure, less third-party risk coverage 5,086 3,208 1) This table shows the maximum exposure to credit risk. |
Disclosure of Customer Finance Fair Value Reconciliation | Customer finance fair value reconciliation 2022 2021 Opening balance 3,287 3,137 Additions 37,295 30,121 Disposals/repayments (35,412) (30,468) Revaluation/amortization of interest (151) 322 Translation difference 351 175 Closing balance 5,370 3,287 Of which non-current 415 568 |
Summary of Cash, Cash Equivalents and Interest-Bearing Securities | Cash, cash equivalents, interest bearing securities and derivative assets 2022 Rating or < 3 M 3-12 M 1-5 Y >5 Y Total Bank deposits 38,485 166 7 — 38,658 Other financial institutions 604 — — — 604 Type of issuer: Governments AA/ 915 3,950 277 — 5,142 Corporates A2/P2 1,283 — — — 1,283 Mortgage institutes AAA — 1,682 8,880 — 10,562 Derivative assets 323 385 277 136 1,121 41,610 6,183 9,441 136 57,370 2021 Rating or < 3 M 3-12 M 1-5 Y >5 Y Total Bank deposits 44,758 104 11 — 44,873 Other financial institutions 247 — — — 247 Type of issuer: Governments AA/AAA 5,743 2,906 11,860 — 20,509 Corporates A2/P2 4,226 — — — 4,226 Mortgage institutes AAA — 5,749 21,700 304 27,753 Derivative assets 118 199 — — 317 55,092 8,958 33,571 304 97,925 |
Summary of Funding Programs | Funding programs 1) Amount Utilized Unutilized Euro Medium-Term Note program 5,000 2,218 2,782 SEC Registered program (USD million) 2) — — — Commercial Paper Program (SEK million) 10,000 — 10,000 1) There are no financial covenants related to these programs. 2) Program amount indeterminate. |
Summary of Committed Credit Facilities | Committed credit facilities Amount Utilized Unutilized Multi-currency revolving credit facility (USD million) 2,000 — 2,000 |
Summary of Financial Instruments | Financial instruments 2022 2021 Amortized Fair Fair value hierarchy level Amortized Fair Fair value hierarchy level SEK billion cost value Level 1 Level 2 Level 3 cost value Level 1 Level 2 Level 3 Assets at fair value through profit or loss Customer finance — 5.4 — — 5.4 — 3.3 — — 3.3 Interest-bearing securities — 17.5 17.5 — — — 43.3 43.3 — — Cash equivalents 1) — 15.7 — 15.7 — — 26.0 — 26.0 — Other financial assets — 2.1 0.1 — 2.0 — 2.3 0.6 — 1.7 Other current assets — 1.1 — 1.1 — — 0.3 — 0.3 — Assets at fair value through OCI Trade receivable — 48.4 — — 48.4 — 45.4 — — 45.4 Assets at amortized cost Interest-bearing securities 0.4 — — — — 0.3 — — — — Cash equivalents 1) 2.9 — — — — 4.0 — — — — Other financial assets 0.6 — — — — 0.5 — — — — Financial assets 3.9 90.2 4.8 120.6 Financial liabilities at designated FVTPL Parent Company borrowings — (29.6) (16.7) (12.9) — — (31.4) (19.5) (11.9) — Financial liabilities at FVTPL Other current liabilities — (2.6) — (2.6) — — (0.8) — (0.8) — Liabilities at amortized cost Trade payables (38.4) — — — — (35.7) — — — — Borrowings (3.3) — — — — (0.4) — — — — Financial liabilities (41.7) (32.2) (36.1) (32.2) 1) Total Cash and cash equivalent is SEK 38.3 (54.1) billion, of which SEK 18.6 (30.0) billion relating |
Summary of Reconciliation of Level 3 Fair Value Items Investment in Shares and Participations | Reconciliation of Level 3 fair value items Investment in Opening balance 1,674 Additions 218 Disposals (205) Gains or losses 1) 291 Translation differences 8 Closing balance 1,986 1) Table shows net gains or losses recognized in Other operating income or expenses, of which SEK 290 million unrealized gains relate to Level 3 assets held at the end of the year. |
F2 Financial income and expen_2
F2 Financial income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Finance Income And Expenses [Abstract] | |
Summary of Financial Income and Expenses | Financial income and expenses 2022 2021 2020 Contractual interest on financial assets 717 360 665 of which on financial assets at amortized cost 251 148 148 Net revaluation gains and losses on financial assets (146) 10 (103) Other financial income 207 321 131 Financial income 778 691 693 Contractual interest on financial liabilities (972) (525) (873) of which on financial liabilities at amortized cost (128) (41) (152) Net revaluation gains and losses on financial liabilities 379 67 9 Lease interest expense (464) (426) (490) Net interest on pension liabilities 1) (361) (262) (262) Other financial expenses (512) (528) (500) Financial expenses (1,930) (1,674) (2,116) Net foreign exchange gains/losses (1,259) (1,547) 827 Financial income and expenses, net (2,411) (2,530) (596) Net gains and losses on financial instruments exclude effect of foreign exchange translations: Financial instruments at fair value through profit or loss 2) (2,552) (534) (257) Financial liabilities designated at fair value through profit or loss 2,847 404 (121) 1) Includes gains or losses on plan settlement. 2) Excludes net loss from revaluation of customer finance receivables of SEK 15 million (net gain of SEK 350 million in 2021 and net loss of SEK 262 million in 2020), reported as Selling and administrative expenses, and net loss on revaluation of investments in shares and participations of SEK 205 million (net gain of SEK 784 million in 2021 and net gain of SEK 12 million in 2020) reported as Other operating income or expenses. |
F3 Financial assets, non-curr_2
F3 Financial assets, non-current (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of Financial Assets, Non-current | Financial assets, non-current 2022 2021 Other Interest- non-current Other financial non-current 1) Other Interest- non-current Other financial non-current 1) Opening balance 2,258 30,626 6,217 1,519 21,613 4,842 Additions 218 13,583 1,249 184 30,305 1,054 Disposals/repayments/deductions (205) (29,523) (481) (229) (13,547) (959) Amortization — — (288) — — — Change in value in funded pension plans 2) — — 244 — — 1,064 Revaluation (205) 262 85 784 (75) 99 Reclassification — (5,784) (542) (1) (7,670) (1) Translation differences 8 — 355 1 — 118 Closing balance 2,074 9,164 6,839 2,258 30,626 6,217 1) Includes items such as pension surplus assets, tax credit receivables, deferred sales commissions and loans to associates. 2) This amount includes asset ceiling. For further information, see note G1 “Post-employment benefits.” |
F4 Interest-bearing liabiliti_2
F4 Interest-bearing liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings [abstract] | |
Summary of Interest-Bearing Liabilities | As of December 31, 2022, the Company’s outstanding interest-bearing liabilities were SEK 32.9 (31.8) billion. Interest-bearing liabilities (excluding lease obligations) 2022 2021 Borrowings, current Current part of non-current 2,865 9,459 Other borrowings, current 3,119 131 Total borrowings, current 5,984 9,590 Borrowings, non-current Notes and bond loans 26,752 22,016 Other borrowings, non-current 194 225 Total borrowings, non-current 26,946 22,241 Total interest-bearing liabilities 32,930 31,831 |
Reconciliation of Liabilities Arising from Financing Activities | Reconciliation of liabilities arising from financing activities (including lease obligations) 2022 2021 Opening balance 41,134 39,460 Cash flows Proceeds from issuance of borrowings 10,755 7,882 Repayment of borrowings 1) (16,029) (5,791) Other financing activities 315 (2,128) Lease payments (2,593) (2,368) Non-cash Effect of foreign exchange movement 4,762 2,621 Revaluation due to changes in credit risk (1,030) (31) Other changes in fair value (2,888) (415) Acquisition of new lease contracts 1,986 2,009 Balances regarding acquired business 6,876 — Other non-cash 1) (1,054) (105) Closing balance 42,234 41,134 1) Repayment in 2022 includes capped call received of SEK 0.6 billion (not classified as Borrowings) relating to convertible bonds repaid, therefore net repayment amount is lower. This is included in Other non-cash |
Summary of Notes, Bonds, Bilateral Loans and Committed Credit | Notes, bonds and bilateral loans Issued-maturing Nominal Coupon Currency Maturity date Carrying Changes in Cumulative Carrying Notes and bond loans 2012–2022 1,000 4.125 % USD May 15, 2022 — (58) — 9,163 2017–2024 500 1.875 % EUR Mar 1, 2024 5,392 (72) 46 5,297 2017–2025 1) 150 2.741 % USD Dec 22, 2025 1,422 (50) 30 1,393 2020–2030 1) 200 3.020 % USD Dec 30, 2030 1,682 (97) 18 1,825 2021–2029 500 1.000 % EUR May 26, 2029 4,196 (286) (312) 5,007 2022–2027 750 1.125 % EUR Feb 8, 2027 7,119 (208) (207) — Total notes and bond loans 19,811 (771) (425) 22,685 Bilateral loans 2017–2023 2) 220 USD Jun 15, 2023 2,292 (38) 6 2,033 2019–2024 3) 281 USD July 31, 2024 2,925 (58) 4 2,608 2019–2025 2) 150 USD Dec 18, 2025 1,555 (45) (1) 1,400 2021–2028 3) 305 USD Jun 21, 2028 2,981 (118) (183) 2,692 Total bilateral loans 9,753 (259) (174) 8,733 1) Private Placement, Swedish Export Credit Corporation (SEK). 2) Nordic Investment Bank (NIB), R&D project financing. 3) European Investment Bank (EIB), R&D project financing. |
G1 Post-employment benefits (Ta
G1 Post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Employee Benefits Expenses [Abstract] | |
Summary of Amount Recognized in the Consolidated Balance Sheet | Amount recognized in the Consolidated balance sheet Sweden US UK Other Total 2022 Defined benefit obligation (DBO) 50,441 5,365 9,866 18,019 83,691 Fair value of plan assets 28,521 5,111 11,999 14,849 60,480 Deficit/surplus (+/–) 21,920 254 (2,133) 3,170 23,211 Plans with net surplus, excluding asset ceiling 1) — 298 2,137 1,715 4,150 Provision for post-employment benefits 2) 21,920 552 4 4,885 27,361 2021 Defined benefit obligation (DBO) 58,754 18,463 17,071 19,255 113,543 Fair value of plan assets 29,876 18,254 19,427 13,798 81,355 Deficit/surplus (+/–) 28,878 209 (2,356) 5,457 32,188 Plans with net surplus, excluding asset ceiling 1) — 450 2,802 610 3,862 Provision for post-employment benefits 2) 28,878 659 446 6,067 36,050 1) Plans with a net surplus, i.e., where plan assets exceed DBO, are reported as Other financial assets, non-current, 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 2022 Pension cost for defined contribution plans 1,192 542 128 1,209 3,071 Pension cost for defined benefit plans 1) 2,144 160 (22) 1,204 3,486 Total 3,336 702 106 2,413 6,557 Total pension cost expressed as a percentage of wages and salaries 8.9% 2021 Pension cost for defined contribution plans 1,199 460 138 1,084 2,881 Pension cost for defined benefit plans 1,920 97 (6) 931 2,942 Total 3,119 557 132 2,015 5,823 Total pension cost expressed as a percentage of wages and salaries 9.3% 2020 Pension cost for defined contribution plans 963 415 136 664 2,178 Pension cost for defined benefit plans 1,783 13 (4) 993 2,785 Total 2,746 428 132 1,657 4,963 Total pension cost expressed as a percentage of wages and salaries 1) For the UK plans, negative cost was due to interest income of SEK 355 million exceeding interest cost of SEK 312 million during the year. |
Summary of Change in the Net Defined Benefit Obligation | Change in the net defined benefit obligation Change in the net defined benefit obligation Present value 1) Fair value of Total Present value 1) Fair value of Total Opening balance 113,543 (81,355) 32,188 108,188 (73,611) 34,577 Included in the income statement 2) Current service cost 2,772 — 2,772 2,644 — 2,644 Past service cost and gains and losses on settlements 311 — 311 1 — 1 Interest cost/income (+/–) 1,716 (1,475) 241 1,463 (1,240) 223 Taxes and administrative expenses — 62 62 — 41 41 Other 43 1 44 10 (17) (7) 4,842 (1,412) 3,430 4,118 (1,216) 2,902 Remeasurements Return on plan assets excluding amounts in interest expense/income — 14,135 14,135 — (3,526) (3,526) Actuarial gains/losses (–/+) arising from changes in demographic assumptions 1,118 — 1,118 (49) — (49) Actuarial gains/losses (–/+) arising from changes in financial assumptions (29,031) — (29,031) (287) — (287) Experience-based gains/losses (–/+) 3,236 — 3,236 350 — 350 (24,677) 14,135 (10,542) 14 (3,526) (3,512) Other changes Translation difference 3,381 (3,297) 84 3,951 (3,764) 187 Contributions and payments from: Employers 3) (1,302) (652) (1,954) (1,260) (679) (1,939) Plan participants 334 (325) 9 285 (270) 15 Payments from plans: Benefit payments (1,806) 1,806 — (1,825) 1,825 — Settlements (10,759) 10,755 (4) (12) — (12) Business combinations and divestments — — — 84 (114) (30) Other 135 (135) — — — — Closing balance 83,691 (60,480) 23,211 113,543 (81,355) 32,188 1) The weighted average duration of DBO is 18.3 (20.4) years. 2) Excludes the impact of the asset ceiling of SEK 55 (40) million in 2022. 3) The expected contribution to the plans during 2023 is SEK 2.2 billion. |
Summary of Present Value of the Defined Benefit Obligation | Present value of the defined benefit obligation Sweden US UK Other Total 2022 DBO, closing balance 50,441 5,365 9,866 18,019 83,691 Of which partially or fully funded 50,441 4,812 9,866 14,417 79,536 Of which unfunded — 553 — 3,602 4,155 2021 DBO, closing balance 58,754 18,463 17,071 19,255 113,543 Of which partially or fully funded 58,754 17,805 17,071 15,574 109,204 Of which unfunded — 658 — 3,681 4,339 |
Summary of Asset Allocation by Asset Type and Geography | Asset allocation by asset type and geography 1) Sweden US UK Other Total Of which unquoted 2) 2022 Cash and cash equivalents 1,151 184 449 88 1,872 6 % Equity securities 6,803 419 1,113 2,791 11,126 50 % Debt securities 14,114 3,646 5,818 8,539 32,117 28 % Real estate 5,577 — 199 603 6,379 100 % Investment funds 917 789 2,417 578 4,701 74 % Assets held by insurance company — — 1,872 1,717 3,589 100 % Other (41) 73 131 533 696 15 % Total 28,521 5,111 11,999 14,849 60,480 Of which real estate occupied by the Company — — — — — Of which securities issued by the Company — — — — — 2021 Cash and cash equivalents 1,100 500 1,468 46 3,114 33 % Equity securities 7,619 659 3,823 2,651 14,752 58 % Debt securities 14,427 15,817 12,705 7,999 50,948 44 % Real estate 5,157 — 195 594 5,946 100 % Investment funds 1,782 1,247 — 484 3,513 64 % Assets held by insurance company — — — 1,597 1,597 100 % Other (209) 31 1,236 427 1,485 69 % Total 29,876 18,254 19,427 13,798 81,355 Of which real estate occupied by the Company — — — — — Of which securities issued by the Company — — — — — 1) Asset class is presented based on the underlying exposure of the investment. This includes direct investment in securities or investment through pooled funds that invest in an asset class. 2) Unquoted refers to assets classified as fair value level 2 and 3. Unquoted assets comprise mainly investments in pooled investment vehicles. |
Summary of Financial and Demographic Actuarial Assumptions | Financial and demographic actuarial assumptions 2022 2021 Sweden US UK Sweden US UK Financial assumptions Discount rate 2.0% 5.4% 4.9% 0.6% 2.7% 1.8% Inflation rate 2.3% 2.5% 3.1% 2.0% 2.5% 3.2% Salary increase rate 2.8% 3.0% — 2.8% 3.5% — Demographic assumptions Life expectancy after age 65 in years 23 22 23 23 23 23 |
Summary of Total Remeasurements in Other Comprehensive Income (Loss) Related to Post-Employment Benefits | Total remeasurements in Other comprehensive income related to post-employment benefits 2022 2021 Actuarial gains and losses (+/–) 8,943 3,255 The effect of asset ceiling 127 25 Swedish special payroll taxes 1,599 257 Total 10,669 3,537 |
Summary of Sensitivity Analysis of Significant Actuarial Assumptions | Sensitivity analysis of significant actuarial assumptions, SEK billion 2022 Impact on the DBO of a change in Sweden US UK Financial assumptions Discount rate -0.5% 5.9 0.3 0.9 Discount rate +0.5% (5.2) (0.2) (0.8) Inflation rate -0.5% (4.1) — (0.6) Inflation rate +0.5% 7.0 — 0.6 Salary increase rate -0.5% (1.8) — — Salary increase rate +0.5% 1.9 — — Demographic assumptions Longevity - 1 year (2.4) (0.1) (0.3) Longevity + 1 year 2.4 0.1 0.3 |
G2 Information Regarding Memb_2
G2 Information Regarding Members of the Board of Directors and Group Management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Information About Board Of Directors And Group Management [Abstract] | |
Summary of Remuneration to Members of the Board of Directors | Remuneration to members of the Board of Directors SEK Board fees Number of Value at Number of Net change 1) Committee Total fees 2) Total Total A B C (A+B+C) Board member Ronnie Leten 4,375,000 — — 94,954 (2,501,774) 385,000 4,760,000 2,258,226 4,487,599 Helena Stjernholm 1,100,000 6,669 549,992 23,547 (1,182,457) 180,000 730,000 97,535 1,441,705 Jacob Wallenberg 1,100,000 10,003 824,947 35,323 (1,773,786) 180,000 455,000 (493,839) 1,375,710 Jon Fredrik Baksaas 1,100,000 6,669 549,992 30,007 (1,519,416) 205,000 755,000 (214,424) 1,250,514 Jan Carlson 1,100,000 10,003 824,947 35,323 (1,773,786) 455,000 730,000 (218,839) 1,512,156 Nora Denzel 1,100,000 3,334 274,955 11,772 (591,164) 180,000 1,005,000 688,791 1,240,674 Börje Ekholm — — — — — — — — 150,241 Carolina Dybeck Happe 1,100,000 10,003/75% 824,947 — (215,765) — — 609,182 — Eric A. Elzvik 1,100,000 3,334/25% 274,955 11,772 (591,164) 475,000 1,300,000 983,791 1,480,674 Kurt Jofs 1,100,000 3,334/25% 274,955 19,378 (459,865) 635,000 1,460,000 1,275,090 1,598,923 Kristin S. Rinne 1,100,000 6,669/50% 549,992 14,005 (999,684) 205,000 755,000 305,308 1,371,568 Employee Representatives Torbjörn Nyman 43,500 — — — — 22,500 66,000 66,000 43,500 Anders Ripa 43,500 — — — — 12,000 55,500 55,500 27,000 Kjell-Åke Soting 43,500 — — — — 15,000 58,500 58,500 39,000 Annika Salomonsson 4) 28,500 — — — — — 28,500 28,500 — Ulf Rosberg (deputy) 43,500 — — — — — 43,500 43,500 22,500 Loredana Roslund (deputy) 43,500 — — — — — 43,500 43,500 27,000 Roger Svensson — — — — — — — — 7,500 Per Holmberg (deputy) — — — — — — — — 21,000 Total 14,521,000 60,018 4,949,682 276,081 (11,608,861) 2,949,500 12,245,500 5,586,321 3) 16,097,264 1) The difference in value as of the time for payment, compared to December 31, 2021, for synthetic shares allocated in 2017 (for which payment was made in 2022). The difference in value as of December 31, 2022 compared to December 31, 2021, for synthetic shares allocated in 2018, 2019, 2020 and 2021. Calculated on a share price of SEK 60.90. The difference in value as of December 31, 2022, compared to grant date for synthetic shares allocated in 2022. The value of synthetic shares allocated in 2018, 2019, 2020 and 2021 includes respectively SEK 1.00, SEK 1.50, SEK 2.00 and SEK 2.50 per share in compensation for dividends resolved by the Annual General Meetings 2019, 2020, 2021 and 2022 and the value of the synthetic shares allocated in 2017 includes dividend compensation for dividends resolved in 2018, 2019, 2020 and 2021. 2) Committee fee and cash portion of the Board fee. 3) Excluding social security charges in the amount of SEK 1,102,787. 4) Appointed deputy employee representative Board member as of March 29, 2022. |
Summary of Remuneration Costs for the President and CEO and Other Members of Executive Team (ET) | Remuneration costs for the President and CEO and other members of Executive Team (ET) SEK President President President Other members of ET 2022 3) Other members of ET 2021 Other members of ET 2020 Total 2022 Total 2021 Total 2020 Salary 1) 19,154,852 18,208,859 17,727,726 132,945,295 110,043,431 98,063,266 152,100,147 128,252,290 115,790,992 Termination benefits — — — 25,503,967 — — 25,503,967 — — Annual variable remuneration provision earned for the year — — — 90,908,181 52,507,185 37,992,529 90,908,181 52,507,185 37,992,529 Long-term variable compensation provision 41,125,015 43,701,650 41,110,656 43,688,149 48,260,833 41,237,506 84,813,164 91,962,483 82,348,162 Pension costs 2) 9,856,121 9,569,049 9,113,376 42,248,588 40,886,802 39,685,920 52,104,709 50,455,851 48,799,296 Other benefits 135,743 555,688 770,276 20,167,043 11,199,631 14,360,413 20,302,786 11,755,319 15,130,689 Social charges and taxes 22,079,378 22,633,474 21,592,463 60,745,133 57,469,705 52,289,551 82,824,511 80,103,179 73,882,014 Total 92,351,109 94,668,720 90,314,497 416,206,356 320,367,587 283,629,185 508,557,465 415,036,307 373,943,682 1) Includes compensation for unused vacation days. 2) Includes cash payments to the President and CEO in lieu of defined contribution payment in a cost neutral way to Ericsson. 3) Does not include cash compensation paid to Rory Read during 2022 amounting to MUSD 32.76 for acceleration of existing restricted and performance stock units in Vonage Holdings Corp. (Vonage). Further information is included in the “Remuneration report”. |
G3 Share-based compensation (Ta
G3 Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Summary of Performance Criteria | LTV and EPP performance criteria Program Year Target Criteria Weight Performance Period Vesting Opportunity pro-rata) Achievement Achieved 2022 2022 Group operating income (EBIT) Range (SEK billion): 24.1–34.1 45% Jan 1, 2022–Dec 31, 2022 0%–200% SEK 32.2 billion 2) 162.76% 2022 Absolute TSR Range: 6%-14% 25% Jan 1, 2022–Dec 31, 2024 0%–200% 2022 Relative TSR Ranking of Ericsson: 6–2 20% Jan 1, 2022–Dec 31, 2024 0%–200% 1) 2022 Group Environmental, Social and Governance (“ESG”) CO2e emissions (ktonnes): 265–200 5% Jan 1, 2022–Dec 31, 2024 0%–200% Increasing the representation of women leaders in the Ericsson Group: Range 22%–24% 5% Jan 1, 2022–Dec 31, 2024 0%–200% 2022 Total 100% 0%–200% 2021 2021 Group operating income (EBIT) Range (SEK billion): 15.0–24.0 50% Jan 1, 2021–Dec 31, 2021 0% SEK 27.4 billion 2) 200% 2021 Absolute TSR Range: 6%–14% 30% Jan 1, 2021–Dec 31, 2023 0% 2021 Relative TSR Ranking of Ericsson: 6–2 20% Jan 1, 2021–Dec 31, 2023 0% 1) 2021 Total 100% 0% 2020 2020 Group operating income (EBIT) Range (SEK billion): 19.1–27.9 50% Jan 1, 2020–Dec 31, 2020 0% SEK 29.1 billion 3) 200% 2020 Absolute TSR Range: 6%–14% 30% Jan 1, 2020–Dec 31, 2022 0% (6.65 )% 0.00% 2020 Relative TSR Ranking of Ericsson: 6–2 20% Jan 1, 2020–Dec 31, 2022 0%–200% 1) 12 out of 11 0.00% 2020 Total 100% 0% 100.00% 2019 2019 Group operating income (EBIT) Range (SEK billion): 10.0–20.0 50% Jan 1, 2019–Dec 31, 2019 0% SEK 20.4 billion 4) 200% 2019 Absolute TSR Range: 6%–14% 30% Jan 1, 2019–Dec 31, 2021 0% 9.00% 74.89% 2019 Relative TSR Ranking of Ericsson: 7–2 20% Jan 1, 2019–Dec 31, 2021 0% 1) 6.52 out of 12 19.39% 2019 Total 100% 0% 126.35% 1) The portion of the Performance Share Awards granted to a participant based on the relative TSR performance condition is subject to fulfilment of the related performance criteria over the performance period compared to Peer Groups consisting of 11 companies for the program year 2022, 2021 and 2020 and 12 companies for the program years 2019. The vesting of the Performance Share Awards under this performance condition will vary depending on the Company’s TSR performance ranking versus the other companies in the peer group at the end of the performance period. 2) Excludes restructuring charges and items not included in target performance criterion. 3) Excludes restructuring charges. 4) Excludes fines and similar related to the United States Department of Justice (DOJ) / U.S. Securities and Exchange Commission (SEC) resolution, including payments required pursuant to the DOJ Plea Agreement announced by the Company on March 2, 2023. |
Summary of Number of Shares and Synthetic Shares | Number of shares and synthetic shares (million) Executive team programs Of which the President and CEO Share-settled programs LTV 2022 LTV 2021 LTV 2020 LTV 2019 Total LTV 2022 LTV 2021 LTV 2020 LTV 2019 Total Maximum shares required 2.0 2.1 2.5 3.0 9.6 — — — — — Granted shares 0.7 0.6 0.9 0.6 2.8 0.3 0.3 0.4 0.3 1.3 Outstanding number of shares beginning of 2022 — 0.9 1.3 0.8 3.0 — 0.5 0.6 0.3 1.4 Exercised during 2022 — — — — — — — — — — Forfeited during 2022 — — — — — — — — — — Increase/decrease due to performance condition 2022 0.2 — (0.4) — (0.2) 0.1 — (0.2) — (0.1) Outstanding number of shares end of 2022 0.9 0.9 0.9 0.8 3.5 0.4 0.5 0.4 0.3 1.6 Executive performance program Key contributors plans Cash-settled plan EPP 2022 EPP 2021 EPP 2020 EPP 2019 Total KC 2022 KC 2021 KC 2020 KC 2019 Total Synthetic shares 1.1 1.1 1.0 — 3.2 9.5 5.4 5.0 — 19.9 |
Summary of Compensation Expense | Compensation expense for LTV 2019–2022 Share-settled programs 2022 2021 2020 2019 Total LTV 2022 12 — — — 12 LTV 2021 36 24 — — 60 LTV 2020 31 31 23 — 85 LTV 2019 10 28 28 17 83 Total executive team programs 89 83 51 17 240 Of which the President and CEO 41 38 24 8 111 Cash-settled plans EPP 2022 12 — — — 12 EPP 2021 15 17 — — 32 EPP 2020 (19) 56 34 — 71 EPP 2019 (3) 14 50 11 72 Total executive performance plans 5 87 84 11 187 KC 2022 280 — — — 280 KC 2021 89 355 — — 444 KC 2020 5 376 523 — 904 KC 2019 (18) 194 335 248 759 Total key contributor plans 356 925 858 248 2,387 Total cash-settled plans 361 1,012 942 259 2,574 Total compensation expense 450 1,095 993 276 2,814 |
Summary of FV Per Performance Criteria and Program | Fair values (SEK) Executive team programs LTV 2022 LTV 2021 LTV 2020 LTV 2019 Share price at grant 78.88 116.66 78.88 90.70 Fair value Absolute TSR 41.18 113.47 54.69 87.92 Fair value ESG - Environmental 71.45 — — — Fair value ESG - Social 71.45 — — — Fair value Relative TSR 54.48 108.61 98.06 94.63 Fair value Group operating income (EBIT) 71.45 110.70 74.22 86.94 Executive performance plans EPP 2022 EPP 2021 EPP 2020 EPP 2019 Fair value Absolute TSR 10.53 3.63 — 78.88 Fair value ESG - Environmental 54.37 — — — Fair value ESG - Social 54.37 — — — Fair value Relative TSR 17.08 1.39 — 78.88 Fair value Group operating income (EBIT) 54.37 56.79 59.31 78.88 Key contributor plans KC 2022 KC 2021 KC 2020 KC 2019 Fair value - Tranche 1 59.31 94.13 109.80 84.12 Fair value - Tranche 2 56.79 59.31 94.13 111.78 Fair value - Tranche 3 54.37 56.79 59.31 78.88 |
Ericsson Share Purchase Plan [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Summary of Stock Purchase Plans | Ericsson share purchase plan Eligible Number of countries Number of participants Take-up rate – percent of eligible employees 90,500 79 16,319 18.0% |
G4 Employee information (Tables
G4 Employee information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Number and average number of employees [abstract] | |
Summary of Average Number of Employees | Employee numbers, wages and salaries Average number of employees by gender and market area 2022 2021 Women Men Total Women Men Total South East Asia, Oceania and India 5,700 20,902 26,602 5,470 20,828 26,298 North East Asia 4,376 8,711 13,087 4,579 9,323 13,902 North America 2,471 8,415 10,886 2,269 7,999 10,268 Europe and Latin America 1) 12,017 34,637 46,654 11,581 34,336 45,917 Middle East and Africa 883 3,629 4,512 823 3,549 4,372 Total 25,447 76,294 101,741 24,722 76,035 100,757 1) 9,006 26,259 35,265 8,728 25,971 34,699 Of which in Sweden 3,408 10,635 14,043 3,173 10,237 13,410 |
Summary of Number of Employees by Market Area | Number of employees by market area at year-end 2022 2021 South East Asia, Oceania and India 27,761 26,369 North East Asia 13,207 13,091 North America 11,993 10,344 Europe and Latin America 1) 48,023 47,064 Middle East and Africa 4,545 4,454 Total 105,529 101,322 1) 36,594 35,950 Of which in Sweden 14,481 14,183 |
Summary of Number of Employees by Gender and Age | Number of employees by gender and age at year-end Women Men Percent of total Under 25 years old 1,543 2,435 4% 25–35 years old 9,848 21,790 30% 36–45 years old 8,051 27,595 34% 46–55 years old 5,261 18,646 22% Over 55 years old 2,229 8,131 10% Percent of total 26% 74% 100% |
Summary of Employee Movements | E 2022 2021 Headcount at year-end 105,529 101,322 Employees who have left the Company 13,028 11,631 Employees who have joined the Company 17,235 12,129 Temporary employees 627 868 |
Summary of Wages and Salaries and Social Security Expenses | Wages and salaries and social security expenses (SEK million) 2022 2021 Wages and salaries 73,526 62,823 Social security expenses 15,665 14,639 Of which pension costs 6,316 5,601 |
Summary of Remuneration to Board Members and Presidents in Subsidiaries | Amounts related to the President and CEO Remuneration to Board members and Presidents in subsidiaries (SEK million) 2022 2021 Salary and other remuneration 477 572 Of which annual variable remuneration 90 80 Pension costs 1) 34 41 1) Pension costs are over and above any social security charges and taxes. |
Summary of Board Members, Presidents and Group Management by Gender | Board members, Presidents and Group management by gender at year end 2022 2021 Women Men Women Men Parent Company Board members and President 36% 64% 23% 77% Group Management 19% 81% 20% 80% Subsidiaries Board members and Presidents 20% 80% 21% 79% |
H1 Taxes (Tables)
H1 Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Major components of tax expense (income) [abstract] | |
Components of Income Taxes Recognized in Income Statement | Income taxes recognized in the income statement 2022 2021 2020 Current income taxes for the year (7,353) (6,110) (5,470) Current income taxes related to prior years 253 (337) (175) Deferred tax income/expense (+/–) 1,617 188 (3,911) Share of taxes in joint ventures and associated companies (14) (11) (33) Income tax expense (5,497) (6,270) (9,589) |
Reconciliation of Swedish Income Tax Rate with Effective Tax Rate | Reconciliation of Swedish income tax rate with effective tax rate 2022 2021 2020 Calculated tax expense at Swedish tax rate 20.6% (20.6%) (5,070) (6,025) (5,823) Effect of foreign tax rates (605) (324) (616) Current income taxes related to prior years 253 (337) (175) Remeasurement of tax loss carry-forwards (49) (175) (258) Remeasurement of deductible temporary differences 15 220 369 Withholding tax expense — — (1,393) Reversal of impaired withholding tax 411 969 — Tax effect of non-deductible (760) (975) (2,079) Tax effect of non-taxable 327 392 372 Tax effect of changes in tax rates (19) (15) 14 Income tax expense (5,497) (6,270) (9,589) Effective tax rate 22.3% 21.4% 35.2% 1) On March 2, 2023, the Company reached a resolution with the DOJ (the DOJ Plea Agreement) and agreed to pay a fine of approximately SEK 2.2 billion. |
Tax Effects of Temporary Differences and Tax Loss Carry-forwards | Tax effects of temporary differences and tax loss carry-forwards Deferred Deferred tax liabilities Net balance 2022 Intangible assets and property, plant and equipment 1,161 8,135 Current assets 3,605 1,055 Post-employment benefits 5,558 571 Provisions 5,234 — Deferred tax credits 2,081 — Other 1,837 295 Loss carry-forwards 5,190 — Deferred tax assets/liabilities 24,666 10,056 14,610 Netting of assets/liabilities (5,272) (5,272) Deferred tax balances, net 19,394 4,784 14,610 2021 Intangible assets and property, plant and equipment 160 1,331 Current assets 3,605 862 Post-employment benefits 6,782 567 Provisions 3,555 — Deferred tax credits 5,288 — Other 1,425 44 Loss carry-forwards 4,214 — Deferred tax assets/liabilities 25,029 2,804 22,225 Netting of assets/liabilities (1,920) (1,920) Deferred tax balances, net 23,109 884 22,225 |
Changes in Deferred Taxes, Net | Changes in deferred taxes, net 2022 2021 Opening balance, net 22,225 25,207 Recognized in net income 1,617 188 Recognized in other comprehensive income (2,099) (556) Balances regarding acquired/divested businesses (3,911) 171 Deferred tax credits utilization (3,586) (3,027) Translation difference 364 242 Closing balance, net 14,610 22,225 |
Tax Loss Carry-forwards | Tax loss carry-forwards Year of expiration Tax loss carry- forwards Tax value 2023 17 3 2024 12 2 2025 19 6 2026 85 22 2027 1,236 317 2028 or later (also includes unlimited carry-forwards) 22,069 4,840 Total 23,438 5,190 |
H2 Earnings per share (Tables)
H2 Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Basic And Diluted Earning Per Share [Abstract] | |
Schedule of Earnings Per Share | Earnings per share 2022 2021 2020 Basic Net income attributable to owners of the Parent Company (SEK million) 18,724 22,694 17,483 Average number of shares outstanding, basic (millions) 3,330 3,329 3,323 Earnings per share, basic (SEK) 5.62 6.82 5.26 Diluted Net income attributable to owners of the Parent Company (SEK million) 18,724 22,694 17,483 Average number of shares outstanding, basic (millions) 3,330 3,329 3,323 Dilutive effect for stock purchase (millions) 4 3 3 Average number of shares outstanding, diluted (millions) 3,334 3,332 3,326 Earnings per share, diluted (SEK) 5.62 6.81 5.26 |
H3 Statement of cash flows (Tab
H3 Statement of cash flows (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Statement of cash flows [abstract] | |
Summary of Adjustments to Reconcile Net Income to Cash | Adjustments to reconcile net income to cash 2022 2021 2020 Property, plant and equipment Depreciations 4,114 3,674 3,602 Impairment losses 274 198 512 Total 4,388 3,872 4,114 Right-of-use Depreciations 2,451 2,277 2,387 Impairment losses 66 — 47 Total 2,517 2,277 2,434 Intangible assets Amortizations Capitalized development expenses 1,586 1,343 906 Customer relationships, IPRs and other intangible assets 1,991 1,164 1,083 Total amortizations 3,577 2,507 1,989 Impairments Customer relationships, IPRs and other intangible assets 61 201 137 Goodwill — 112 — Total impairments 61 313 137 Total 3,638 2,820 2,126 Total depreciation, amortization and impairment losses on property, plant and equipment and intangible assets 10,543 8,969 8,674 Taxes 5,383 6,576 10,436 Dividends from joint ventures/associated companies 1) 58 90 43 Undistributed earnings in joint ventures/associated companies 1) (3) 270 331 Gains/losses on investments and sale of operations, intangible assets and PP&E, net 2) (287) (971) 77 Other non-cash 3) 1,944 2,209 370 Total adjustments to reconcile net income to cash 17,638 17,143 19,931 1) See note E3 “Associated companies.” 2) Includes revaluation gains and losses on investments, see note B4 “Other operating income and expenses.” 3) Relates 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 2022 Cash flow from business combinations 1) (51,734) 20 Acquisitions/divestments of other investments (261) 287 Total (51,995) 307 2021 Cash flow from business combinations 1) (256) 273 Acquisitions/divestments of other investments (133) 175 Total (389) 448 2020 Cash flow from business combinations 1) (9,534) 4 Acquisitions/divestments of other investments (123) 55 Total (9,657) 59 1) See also note E2 “Business combinations.” |
H4 Related party transactions (
H4 Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions [abstract] | |
Summary of Related Party Transactions | Related party transactions, SEK billion 2022 2021 2020 Sales to Ericsson Nikola Tesla 0.3 0.4 0.4 Purchases from Ericsson Nikola Tesla 1.5 1.2 1.2 Loans to MediaKind (Leone Media Inc.) 0.6 0.5 0.5 |
H5 Fees to auditors (Tables)
H5 Fees to auditors (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Auditor's remuneration [abstract] | |
Summary of Fees to Auditors | Fees to auditors 2022 Deloitte Others Total Audit fees 163 7 170 Audit-related fees 7 2 9 Tax fees 2 11 13 Other fees 1 22 23 Total 173 42 215 2021 Deloitte Others Total Audit fees 132 8 140 Audit-related fees 9 1 10 Tax fees 2 6 8 Other fees 1 2 3 Total 144 17 161 2020 Deloitte Others Total Audit fees 97 9 106 Audit-related fees 8 — 8 Tax fees 4 6 10 Other fees 5 2 7 Total 114 17 131 |
Significant Accounting Policies
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Summary Of Significant Accounting Policies [Line Items] | |
Payments terms | 60 days from invoice date. |
Customer finance agreements, description | Customer finance agreements are agreed separately with some customers where payment terms exceed 179 days. |
Description of type of hedge | At inception, the Company documents the economic relationship between the hedged item and hedging instrument. For FX hedges, the hedge ratio is usually 1:1. The Company designates changes in forward rates as the hedged risk. |
Intellectual Property Rights [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Payments terms | 60 days from invoice date. |
Bottom of range [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of months of hedged forecasted sales | 7 months |
Bottom of range [Member] | Real estate [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful lives in general for real estate | 25 years |
Bottom of range [Member] | Machinery and Equipment [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful lives in general for real estate | 3 years |
Bottom of range [Member] | Enterprise Solution [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Payments terms | 30 |
Top of range [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of months of hedged forecasted sales | 18 months |
Top of range [Member] | Real estate [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful lives in general for real estate | 50 years |
Top of range [Member] | Machinery and Equipment [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful lives in general for real estate | 10 years |
Top of range [Member] | Enterprise Solution [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Payments terms | 45 |
Critical Accounting Estimates a
Critical Accounting Estimates and Judgments - Additional Information (Detail) kr in Millions | 12 Months Ended | ||||
Dec. 31, 2022 SEK (kr) | Dec. 31, 2021 SEK (kr) | Dec. 31, 2020 SEK (kr) | Mar. 02, 2023 SEK (kr) | Mar. 02, 2023 USD ($) | |
Disclosure of accounting judgements and estimates [line items] | |||||
Allowances for estimated losses on trade and customer receivables | kr 2,500 | kr 2,400 | |||
Percentage of allowances for estimated losses on gross trade and customer finance receivables | 4% | 4% | |||
Allowances for estimated losses on inventory valuation | kr 5,700 | kr 3,600 | |||
Allowances for estimated losses on inventory valuation, percentage | 11% | 9% | |||
Write-downs for intangible assets and goodwill | kr (61) | kr (313) | kr (137) | ||
Goodwill | 84,570 | 38,204 | |||
Provisions | 11,588 | 9,504 | kr 10,466 | ||
Contingent liabilities | 3,322 | 1,614 | |||
Defined benefit obligation (DBO) | 83,691 | 113,543 | |||
Fair value of plan assets | 60,480 | 81,355 | |||
Deferred tax assets | 19,394 | 23,109 | |||
Non Adjusting Events After Reporting Period [Member] | United States Department Of Justice [Member] | |||||
Disclosure of accounting judgements and estimates [line items] | |||||
Agreed fine to be paid | kr 2,200 | $ 206,728,848 | |||
Intellectual property rights brands and other intangible assets [member] | |||||
Disclosure of accounting judgements and estimates [line items] | |||||
Intangible assets and goodwill | kr 110,900 | kr 42,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2022 Customer Segment | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | |||
Number of operating segments reported | Segment | 3 | ||
Description of factors used to identify entity's reportable segments | 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, three operating segments are presented; | ||
Number of largest customers | 10 | ||
Bottom of range [Member] | |||
Disclosure of operating segments [line items] | |||
Number of customer base | 500 | ||
10 largest customers [member] | |||
Disclosure of operating segments [line items] | |||
Percentage of contribution to net sales | 50% | 49% | 50% |
Largest customer [member] | |||
Disclosure of operating segments [line items] | |||
Percentage of contribution to net sales | 14% | 13% | 13% |
Second largest customers [member] | |||
Disclosure of operating segments [line items] | |||
Percentage of contribution to net sales | 10% | 9% | 10% |
Networks [member] | IPR licensing revenues [member] | |||
Disclosure of operating segments [line items] | |||
Percentage of revenue | 82% | 82% | 82% |
Cloud Software and Services [Member] | IPR licensing revenues [member] | |||
Disclosure of operating segments [line items] | |||
Percentage of revenue | 18% | 18% | 18% |
Segment Information - Summary o
Segment Information - Summary of Reportable Segments (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reportable segments [line items] | |||
Net sales | kr 271,546 | kr 232,314 | kr 232,390 |
Gross income | 113,295 | 100,749 | 93,724 |
Earnings (loss) before financial items and income tax (EBIT) | 27,020 | 31,780 | 27,808 |
Financial income and expenses, net | (2,411) | (2,530) | (596) |
Income after financial items | 24,609 | 29,250 | 27,212 |
Income tax | (5,497) | (6,270) | (9,589) |
Net income | 19,112 | 22,980 | 17,623 |
Other segment items | |||
Share in earnings of JV and associated companies | 17 | (260) | (298) |
Impairment losses | 66 | 0 | |
Restructuring charges | (399) | (549) | (1,306) |
Networks [member] | |||
Disclosure of reportable segments [line items] | |||
Net sales | 193,468 | 167,838 | 165,978 |
Cloud Software and Services [Member] | |||
Disclosure of reportable segments [line items] | |||
Net sales | 60,524 | 56,224 | 59,597 |
Enterprise [Member] | |||
Disclosure of reportable segments [line items] | |||
Net sales | 15,380 | 6,236 | 4,792 |
Segment information [member] | |||
Disclosure of reportable segments [line items] | |||
Net sales | 271,546 | 232,314 | 232,390 |
Gross income | kr 113,295 | kr 100,749 | kr 93,724 |
Gross margin | 41.70% | 43.40% | 40.30% |
Earnings (loss) before financial items and income tax (EBIT) | kr 27,020 | kr 31,780 | kr 27,808 |
EBIT margin | 10% | 13.70% | 12% |
Financial income and expenses, net | kr (2,411) | kr (2,530) | kr (596) |
Income after financial items | 24,609 | 29,250 | 27,212 |
Income tax | (5,497) | (6,270) | (9,589) |
Net income | 19,112 | 22,980 | 17,623 |
Other segment items | |||
Share in earnings of JV and associated companies | 17 | (260) | (298) |
Amortizations | (3,577) | (2,507) | (1,989) |
Depreciations | (6,565) | (5,951) | (5,989) |
Impairment losses | (401) | (511) | (696) |
Restructuring charges | (399) | (549) | (1,306) |
Gains/losses on sale of investments and operations | 256 | 961 | (141) |
Segment information [member] | Networks [member] | |||
Disclosure of reportable segments [line items] | |||
Net sales | 193,468 | 167,838 | 165,978 |
Gross income | kr 86,368 | kr 78,869 | kr 72,413 |
Gross margin | 44.60% | 47% | 43.60% |
Earnings (loss) before financial items and income tax (EBIT) | kr 38,512 | kr 37,266 | kr 30,851 |
EBIT margin | 19.90% | 22.20% | 18.60% |
Other segment items | |||
Share in earnings of JV and associated companies | kr 30 | kr 40 | kr 37 |
Amortizations | (1,424) | (1,169) | (775) |
Depreciations | (4,073) | (3,764) | (3,764) |
Impairment losses | (211) | (127) | (494) |
Restructuring charges | (146) | (262) | (746) |
Gains/losses on sale of investments and operations | 253 | 14 | (129) |
Segment information [member] | Cloud Software and Services [Member] | |||
Disclosure of reportable segments [line items] | |||
Net sales | 60,524 | 56,224 | 59,597 |
Gross income | kr 20,106 | kr 18,829 | kr 19,496 |
Gross margin | 33.20% | 33.50% | 32.70% |
Earnings (loss) before financial items and income tax (EBIT) | kr (1,689) | kr (2,234) | kr (796) |
EBIT margin | (2.80%) | (4.00%) | (1.30%) |
Other segment items | |||
Share in earnings of JV and associated companies | kr 27 | kr 72 | kr 33 |
Amortizations | (122) | (508) | (612) |
Depreciations | (1,792) | (1,568) | (1,632) |
Impairment losses | (91) | (185) | (144) |
Restructuring charges | (96) | (254) | (277) |
Gains/losses on sale of investments and operations | 0 | (51) | 17 |
Segment information [member] | Enterprise [Member] | |||
Disclosure of reportable segments [line items] | |||
Net sales | 15,380 | 6,236 | 4,792 |
Gross income | kr 6,946 | kr 2,891 | kr 1,767 |
Gross margin | 45.20% | 46.40% | 36.90% |
Earnings (loss) before financial items and income tax (EBIT) | kr (6,234) | kr (2,965) | kr (1,935) |
EBIT margin | (40.50%) | (47.50%) | (40.40%) |
Other segment items | |||
Share in earnings of JV and associated companies | kr 0 | kr 0 | kr 0 |
Amortizations | (2,019) | (830) | (602) |
Depreciations | (515) | (430) | (407) |
Impairment losses | (87) | (188) | (32) |
Restructuring charges | (157) | (16) | (267) |
Gains/losses on sale of investments and operations | 111 | 998 | 1 |
Segment information [member] | Others [Member] | |||
Disclosure of reportable segments [line items] | |||
Net sales | 2,174 | 2,016 | 2,023 |
Gross income | kr (125) | kr 160 | kr 48 |
Gross margin | (5.70%) | 7.90% | 2.40% |
Earnings (loss) before financial items and income tax (EBIT) | kr (3,569) | kr (287) | kr (312) |
EBIT margin | (164.20%) | (14.20%) | (15.40%) |
Other segment items | |||
Share in earnings of JV and associated companies | kr (40) | kr (372) | kr (368) |
Amortizations | (12) | 0 | 0 |
Depreciations | (185) | (189) | (186) |
Impairment losses | (12) | (11) | (26) |
Restructuring charges | 0 | (17) | (16) |
Gains/losses on sale of investments and operations | kr (108) | kr 0 | kr (30) |
Segment Information - Summary_2
Segment Information - Summary of Reportable Segments (Parenthetical) (Detail) kr in Millions | Mar. 02, 2023 SEK (kr) | Mar. 02, 2023 USD ($) | Dec. 31, 2022 SEK (kr) | Dec. 31, 2021 SEK (kr) | Dec. 31, 2020 SEK (kr) |
Disclosure of operating segments [line items] | |||||
Provisions | kr 11,588 | kr 9,504 | kr 10,466 | ||
Non Adjusting Events After Reporting Period [Member] | United States Department Of Justice [Member] | |||||
Disclosure of operating segments [line items] | |||||
Agreed fine to be paid | kr 2,200 | $ 206,728,848 | |||
Others [member] | |||||
Disclosure of operating segments [line items] | |||||
Provisions | 2,300 | ||||
IoT and other portfolio adjustments [member] | |||||
Disclosure of operating segments [line items] | |||||
Charges related to divestment of business | kr 1,000 |
Segment Information - Summary_3
Segment Information - Summary of Products and Services Segments (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | |||
Total | kr 271,546 | kr 232,314 | kr 232,390 |
Services [member] | |||
Disclosure of operating segments [line items] | |||
Total | 97,522 | 80,117 | 86,204 |
Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Total | 271,546 | 232,314 | 232,390 |
Operating segments [member] | Products [member] | |||
Disclosure of operating segments [line items] | |||
Total | 174,024 | 152,197 | 146,186 |
Operating segments [member] | Services [member] | |||
Disclosure of operating segments [line items] | |||
Total | 97,522 | 80,117 | 86,204 |
Networks [member] | |||
Disclosure of operating segments [line items] | |||
Total | 193,468 | 167,838 | 165,978 |
Networks [member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Total | 193,468 | 167,838 | 165,978 |
Networks [member] | Operating segments [member] | Products [member] | |||
Disclosure of operating segments [line items] | |||
Total | 147,997 | 128,951 | 122,229 |
Networks [member] | Operating segments [member] | Services [member] | |||
Disclosure of operating segments [line items] | |||
Total | 45,471 | 38,887 | 43,749 |
Cloud Software and Services [Member] | |||
Disclosure of operating segments [line items] | |||
Total | 60,524 | 56,224 | 59,597 |
Cloud Software and Services [Member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Total | 60,524 | 56,224 | 59,597 |
Cloud Software and Services [Member] | Operating segments [member] | Products [member] | |||
Disclosure of operating segments [line items] | |||
Total | 21,105 | 19,267 | 20,317 |
Cloud Software and Services [Member] | Operating segments [member] | Services [member] | |||
Disclosure of operating segments [line items] | |||
Total | 39,419 | 36,957 | 39,280 |
Enterprise [Member] | |||
Disclosure of operating segments [line items] | |||
Total | 15,380 | 6,236 | 4,792 |
Enterprise [Member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Total | 15,380 | 6,236 | 4,792 |
Enterprise [Member] | Operating segments [member] | Products [member] | |||
Disclosure of operating segments [line items] | |||
Total | 4,923 | 3,955 | 3,735 |
Enterprise [Member] | Operating segments [member] | Services [member] | |||
Disclosure of operating segments [line items] | |||
Total | 10,457 | 2,281 | 1,057 |
Other [Member] | |||
Disclosure of operating segments [line items] | |||
Total | 2,174 | 2,016 | 2,023 |
Other [Member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Total | 2,174 | 2,016 | 2,023 |
Other [Member] | Operating segments [member] | Products [member] | |||
Disclosure of operating segments [line items] | |||
Total | (1) | 24 | (95) |
Other [Member] | Operating segments [member] | Services [member] | |||
Disclosure of operating segments [line items] | |||
Total | kr 2,175 | kr 1,992 | kr 2,118 |
Segment Information - Summary_4
Segment Information - Summary of Geographical Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographical areas [line items] | |||
Net sales | kr 271,546 | kr 232,314 | kr 232,390 |
Non-current assets, total | 138,257 | 68,031 | 66,244 |
Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 193,468 | 167,838 | 165,978 |
Cloud Software and Services [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 60,524 | 56,224 | 59,597 |
Enterprise [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 15,380 | 6,236 | 4,792 |
Other [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 2,174 | 2,016 | 2,023 |
South East Asia, Oceania and India [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 32,951 | 28,829 | 30,048 |
Non-current assets, total | 999 | 1,010 | 812 |
South East Asia, Oceania and India [member] | Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 23,695 | 20,299 | 21,464 |
South East Asia, Oceania and India [member] | Cloud Software and Services [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 9,179 | 8,493 | 8,547 |
South East Asia, Oceania and India [member] | Enterprise [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 77 | 37 | 37 |
South East Asia, Oceania and India [member] | Other [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 0 | 0 | 0 |
North East Asia [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 26,733 | 29,121 | 33,334 |
Non-current assets, total | 3,385 | 2,700 | 2,648 |
North East Asia [member] | Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 22,488 | 24,464 | 27,120 |
North East Asia [member] | Cloud Software and Services [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 4,015 | 4,405 | 5,955 |
North East Asia [member] | Enterprise [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 230 | 252 | 259 |
North East Asia [member] | Other [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 0 | 0 | 0 |
North America [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 95,394 | 77,456 | 73,775 |
Non-current assets, total | 41,065 | 11,971 | 12,749 |
North America [member] | Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 81,917 | 66,464 | 62,199 |
North America [member] | Cloud Software and Services [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 13,362 | 10,913 | 11,508 |
North America [member] | Enterprise [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 115 | 79 | 68 |
North America [member] | Other [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 0 | 0 | 0 |
Europe and Latin America [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 66,790 | 60,272 | 55,745 |
Non-current assets, total | 93,612 | 52,141 | 49,895 |
Europe and Latin America [member] | Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 44,644 | 38,671 | 33,257 |
Europe and Latin America [member] | Cloud Software and Services [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 21,638 | 21,181 | 22,116 |
Europe and Latin America [member] | Enterprise [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 508 | 420 | 372 |
Europe and Latin America [member] | Other [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 0 | 0 | 0 |
Middle East and Africa [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 22,571 | 20,785 | 23,298 |
Non-current assets, total | (804) | 209 | 140 |
Middle East and Africa [member] | Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 11,707 | 10,743 | 13,281 |
Middle East and Africa [member] | Cloud Software and Services [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 10,472 | 9,726 | 9,676 |
Middle East and Africa [member] | Enterprise [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 392 | 316 | 341 |
Middle East and Africa [member] | Other [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 0 | 0 | 0 |
Other regions [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 27,107 | 15,851 | 16,190 |
Non-current assets, total | 0 | 0 | 0 |
Other regions [member] | Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 9,017 | 7,197 | 8,657 |
Other regions [member] | Cloud Software and Services [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 1,858 | 1,506 | 1,795 |
Other regions [member] | Enterprise [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 14,058 | 5,132 | 3,715 |
Other regions [member] | Other [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 2,174 | 2,016 | 2,023 |
Sweden [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 3,239 | 2,349 | 1,123 |
Non-current assets, total | 88,057 | 45,997 | 43,627 |
European union [Member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 35,859 | 31,307 | 29,501 |
Non-current assets, total | 92,167 | 50,428 | 48,133 |
US [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 109,709 | 79,896 | 77,835 |
Non-current assets, total | 39,906 | 10,749 | 11,533 |
China [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 10,523 | 10,078 | 18,745 |
Non-current assets, total | 2,068 | 2,202 | 2,136 |
JAPAN | |||
Disclosure of geographical areas [line items] | |||
Net sales | 9,965 | 13,678 | 12,150 |
Non-current assets, total | 187 | 261 | 272 |
INDIA | |||
Disclosure of geographical areas [line items] | |||
Net sales | 10,957 | 7,482 | 6,970 |
Non-current assets, total | kr 519 | kr 484 | kr 407 |
Net Sales - Summary of Net Sale
Net Sales - Summary of Net Sales (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of net sales [line items] | |||
Net sales | kr 271,546 | kr 232,314 | kr 232,390 |
IPR licensing revenues | 10,399 | 8,134 | 9,975 |
Of which export sales from Sweden | 153,833 | 140,898 | 132,269 |
Hardware [member] | |||
Disclosure of net sales [line items] | |||
Net sales | 119,215 | 106,399 | 96,294 |
Software [member] | |||
Disclosure of net sales [line items] | |||
Net sales | 54,809 | 45,798 | 49,892 |
Services [member] | |||
Disclosure of net sales [line items] | |||
Net sales | kr 97,522 | kr 80,117 | kr 86,204 |
Expenses by Nature - Summary of
Expenses by Nature - Summary of Expenses by Nature (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses by nature [abstract] | |||
Goods and services | kr 147,023 | kr 119,787 | kr 120,102 |
Employee remuneration | 89,191 | 77,462 | 74,645 |
Amortizations and depreciations | 10,142 | 8,458 | 7,978 |
Impairments, obsolescence allowances and revaluation | 4,383 | 1,456 | 3,082 |
Inventory increase, net | (7,738) | (5,565) | (44) |
Additions to capitalized development | (1,720) | (962) | (817) |
Expenses charged to cost of sales and operating expenses | kr 241,281 | kr 200,636 | kr 204,946 |
Expenses by Nature - Additional
Expenses by Nature - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses by nature [abstract] | |||
Restructuring expenses | kr 399 | kr 549 | kr 1,306 |
Expenses by Nature - Summary _2
Expenses by Nature - Summary of Restructuring Charges by Function (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expense by Nature [line items] | |||
Total restructuring charges | kr 399 | kr 549 | kr 1,306 |
Cost of sales [member] | |||
Expense by Nature [line items] | |||
Total restructuring charges | 195 | 273 | 725 |
R&D expenses [member] | |||
Expense by Nature [line items] | |||
Total restructuring charges | 54 | 137 | 411 |
Selling and administrative expenses [member] | |||
Expense by Nature [line items] | |||
Total restructuring charges | kr 150 | kr 139 | kr 170 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other operating income | |||
Gains on sales of intangible assets and PP&E | kr 85 | kr 13 | kr 64 |
Gains on investments and sale of operations | 701 | 1,199 | 347 |
Other operating income | 445 | 314 | 750 |
Total other operating income | 1,231 | 1,526 | 1,161 |
Other operating expenses | |||
Losses on sales of intangible assets and PP&E | (54) | (3) | |
Losses on investments and sale of operations | (445) | (238) | (488) |
Impairment of goodwill | 0 | (112) | 0 |
Other operating expenses | (3,994) | (811) | (11) |
Total other operating expenses | kr (4,493) | kr (1,164) | kr (499) |
Other Operating Income and Ex_2
Other Operating Income and Expenses - Schedule of Other Operating Income and Expenses (Parenthetical) (Detail) kr in Millions | Mar. 02, 2023 SEK (kr) | Mar. 02, 2023 USD ($) | Dec. 31, 2022 SEK (kr) | Dec. 31, 2021 SEK (kr) | Dec. 31, 2020 SEK (kr) |
Other Operating Income and Expenses [Line Items] | |||||
Provisions | kr 11,588 | kr 9,504 | kr 10,466 | ||
United States Department Of Justice [Member] | Non Adjusting Events After Reporting Period [Member] | |||||
Other Operating Income and Expenses [Line Items] | |||||
Agreed fine to be paid | kr 2,200 | $ 206,728,848 | |||
Others [member] | |||||
Other Operating Income and Expenses [Line Items] | |||||
Provisions | 2,300 | ||||
IoT and other portfolio adjustments [member] | |||||
Other Operating Income and Expenses [Line Items] | |||||
Charges related to divestment of business | kr 1,000 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Inventories [Abstract] | ||
Raw materials, components, consumables and manufacturing work in progress | kr 16,873 | kr 11,584 |
Finished products | 14,376 | 11,207 |
Contract work in progress | 14,597 | 12,373 |
Inventories, net | kr 45,846 | kr 35,164 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Inventories [Abstract] | |||
Inventories, recognized as expense | kr 68,838 | kr (60,362) | |
Inventory obsolescence allowances | kr 5,716 | kr 3,676 | kr 3,627 |
Inventories - Movements in Obso
Inventories - Movements in Obsolescence Allowances (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Inventories [Abstract] | ||
Inventory obsolescence allowances, Opening balance | kr 3,676 | kr 3,627 |
Additions | 3,927 | 1,378 |
Utilization | (2,115) | (1,457) |
Translation differences | 228 | 128 |
Inventory obsolescence allowances, Closing balance | kr 5,716 | kr 3,676 |
Customer Contract Related Balan
Customer Contract Related Balances - Schedule of Trade Receivables, Customer Finance, Contract Assets, Contract Liabilities and Deferred Sales Commissions (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Receivables Customer Finance Contract Assets And Contract Liabilities [Abstract] | ||
Customer finance credits | kr 5,370 | kr 3,287 |
Trade receivables | 48,413 | 45,399 |
Contract assets | 9,843 | 10,506 |
Contract liabilities | 42,251 | 32,834 |
Deferred sales commissions | kr 754 | kr 316 |
Customer Contract Related Bal_2
Customer Contract Related Balances - Schedule of Trade Receivables, Customer Finance, Contract Assets, Contract Liabilities and Deferred Sales Commissions (Parenthetical) (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Receivables Customer Finance Contract Assets And Contract Liabilities [Line Items] | ||
Current deferred sales commissions | kr 345 | kr 316 |
Current trade receivables | 48,413 | 45,399 |
Customer finance, current | 4,955 | 2,719 |
Associates [member] | ||
Disclosure Of Receivables Customer Finance Contract Assets And Contract Liabilities [Line Items] | ||
Current trade receivables | kr 70 | kr 0 |
Customer Contract Related Bal_3
Customer Contract Related Balances - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Receivables Customer Finance Contract Assets And Contract Liabilities [Line Items] | ||
Amortization Of Deferred Sales Commissions | kr 288 | kr (143) |
2023 [member] | ||
Disclosure Of Receivables Customer Finance Contract Assets And Contract Liabilities [Line Items] | ||
Percentage of expected transaction price allocated to remaining performance obligation will converted to revenue | 65% | |
2024 [member] | ||
Disclosure Of Receivables Customer Finance Contract Assets And Contract Liabilities [Line Items] | ||
Percentage of expected transaction price allocated to remaining performance obligation will converted to revenue | 15% | |
2025 and beyond [member] | ||
Disclosure Of Receivables Customer Finance Contract Assets And Contract Liabilities [Line Items] | ||
Percentage of expected transaction price allocated to remaining performance obligation will converted to revenue | 20% |
Customer Contract Related Bal_4
Customer Contract Related Balances - Summary of Significant Movements in Contract Assets and Liabilities (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of performance obligations [abstract] | ||
Revenue recognized in the year relating to the opening contract liability balance | kr 25,601 | kr 19,745 |
Revenue recognized relating to performance obligations satisfied, or partially satisfied, in prior reporting periods | (7) | (186) |
Aggregate amount of transaction price allocated to unsatisfied, or partially unsatisfied, performance obligations | kr 169,609 | kr 138,234 |
Other Current Receivables - Sum
Other Current Receivables - Summary of Other Current Receivables (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of other current receivables [line items] | ||
Derivative assets | kr 1,121 | kr 317 |
Other taxes | 7,973 | 6,379 |
Total other current receivables | 9,688 | 7,656 |
Others [member] | ||
Disclosure of other current receivables [line items] | ||
Prepaid expenses | 2,506 | 2,290 |
Advance payments to suppliers | 473 | 426 |
Derivative assets | 1,121 | 317 |
Other taxes | 3,349 | 3,022 |
Total other current receivables | kr 2,239 | kr 1,601 |
Trade Payables - Summary of Tra
Trade Payables - Summary of Trade Payables (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Trade and other payables [abstract] | ||
Trade payables to associated companies and joint ventures | kr 179 | kr 115 |
Trade payables, excluding associated companies and joint ventures | 38,258 | 35,569 |
Total | kr 38,437 | kr 35,684 |
Trade Payables - Summary of T_2
Trade Payables - Summary of Trade Payables (Parenthetical) (Detail) - SEK (kr) kr in Billions | Dec. 31, 2022 | Dec. 31, 2021 |
Ericsson's supplier payments program [member] | ||
Trade And Other Receivables [Line Items] | ||
Trade payable relates to supplier invoices | kr 9.7 | kr 8.3 |
Other Current Liabilities - Sum
Other Current Liabilities - Summary of Other Current Liabilities (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Other Current Liabilities [line items] | ||
Accrued interest | kr 335 | kr 177 |
Accrued expenses | 35,896 | 30,837 |
Derivative liabilities | 2,621 | 762 |
Total | 46,193 | 37,921 |
Of which employee-related [member] | ||
Disclosure of Other Current Liabilities [line items] | ||
Accrued expenses | 19,630 | 15,380 |
Of which supplier-related [member] | ||
Disclosure of Other Current Liabilities [line items] | ||
Accrued expenses | 9,849 | 9,100 |
Of which other [member] | ||
Disclosure of Other Current Liabilities [line items] | ||
Accrued expenses | 6,417 | 6,357 |
Other [member] | ||
Disclosure of Other Current Liabilities [line items] | ||
Other | kr 7,341 | kr 6,145 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Impairment losses | kr (61) | kr (313) | kr (137) |
Capitalized development expenditure [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | 3,528 | ||
Intangible assets and goodwill, Closing balance | 3,705 | 3,528 | |
Capitalized development expenditure [member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | 19,158 | 18,049 | |
Additions | 1,720 | 962 | |
Translation differences | 218 | 147 | |
Intangible assets and goodwill, Closing balance | 21,096 | 19,158 | 18,049 |
Capitalized development expenditure [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | (11,885) | (10,447) | |
Amortizations | (1,586) | (1,343) | |
Translation differences | (175) | (95) | |
Intangible assets and goodwill, Closing balance | (13,646) | (11,885) | (10,447) |
Capitalized development expenditure [member] | Accumulated impairment losses [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | (3,745) | (3,745) | |
Intangible assets and goodwill, Closing balance | (3,745) | (3,745) | (3,745) |
Goodwill [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | 38,204 | ||
Intangible assets and goodwill, Closing balance | 84,570 | 38,204 | |
Goodwill [member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | 44,963 | 41,592 | |
Balances regarding acquired/divested business | 40,881 | 725 | |
Translation differences | 5,070 | 2,646 | |
Intangible assets and goodwill, Closing balance | 90,914 | 44,963 | 41,592 |
Goodwill [member] | Accumulated impairment losses [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | (6,759) | (6,647) | |
Balances regarding acquired/divested business | 415 | ||
Impairment losses | (112) | ||
Intangible assets and goodwill, Closing balance | (6,344) | (6,759) | (6,647) |
Customer Relationships IPR and other Intangible Assets [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | 3,830 | ||
Intangible assets and goodwill, Closing balance | 26,340 | 3,830 | |
Customer Relationships IPR and other Intangible Assets [Member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | 55,936 | 53,913 | |
Additions | 126 | 131 | |
Balances regarding acquired/divested business | 23,451 | (95) | |
Disposals | (452) | (18) | |
Translation differences | 3,793 | 2,005 | |
Intangible assets and goodwill, Closing balance | 82,854 | 55,936 | 53,913 |
Customer Relationships IPR and other Intangible Assets [Member] | Accumulated depreciation and amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | (44,456) | (41,721) | |
Amortizations | (1,991) | (1,164) | |
Balances regarding acquired/divested business | 22 | ||
Disposals | 452 | 18 | |
Translation differences | (2,797) | (1,589) | |
Intangible assets and goodwill, Closing balance | (48,770) | (44,456) | (41,721) |
Customer Relationships IPR and other Intangible Assets [Member] | Accumulated impairment losses [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | (7,650) | (7,387) | |
Balances regarding acquired/divested business | 81 | ||
Impairment losses | (61) | (201) | |
Translation differences | (114) | (62) | |
Intangible assets and goodwill, Closing balance | kr (7,744) | kr (7,650) | kr (7,387) |
Intangible assets -Summary of S
Intangible assets -Summary of Sensitivity Analysis of Significant Actuarial Assumption (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Networks [Member] | ||
Disclosure of information for cash-generating units [line items] | ||
Post-tax discount rates | 9% | 7.50% |
Cloud Software and Services [Member] | ||
Disclosure of information for cash-generating units [line items] | ||
Post-tax discount rates | 10% | 8% |
Vonage [Member] | ||
Disclosure of information for cash-generating units [line items] | ||
Post-tax discount rates | 9.50% | |
Cradlepoint [Member] | ||
Disclosure of information for cash-generating units [line items] | ||
Post-tax discount rates | 9.50% | 10% |
iconectiv [Member] | ||
Disclosure of information for cash-generating units [line items] | ||
Post-tax discount rates | 10% | 9% |
Emodo [Member] | ||
Disclosure of information for cash-generating units [line items] | ||
Post-tax discount rates | 14.50% | 12% |
Red Bee Media [Member] | ||
Disclosure of information for cash-generating units [line items] | ||
Post-tax discount rates | 11% | 9.50% |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) kr in Millions, Employee in Billions, $ in Billions | 12 Months Ended | |||
Dec. 31, 2022 SEK (kr) Employee | Dec. 31, 2021 SEK (kr) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | kr 84,570 | kr 38,204 | ||
Percentage of change in long term EBIT | (4.00%) | |||
Percentage of change in anticipated sales | (3.00%) | |||
Intangible assets other than goodwill | kr 26,340 | kr 3,830 | ||
By The End Of Two Thousand And Twenty Seven [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Estimated number of devices to be manufactured | 5,000,000,000 | |||
By The End Of Two Thousand And Twenty Three [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Estimated number of devices to be manufactured | 3,100,000,000 | |||
Cradlepoint [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | kr 9,000 | |||
2023-2027 and 2027 [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Percentage of estimated increase in mobile video traffic | 30% | |||
Percentage of estimated increase in mobile data traffic | 80% | |||
2023-2027 [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Nominal annual growth rate | 2% | 1.50% | 2% | 1.50% |
Subscription by 2027 [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Number of connected devices are forecasted | Employee | 42 | |||
Mobile Subscriptions | Subscription by 2027 [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Estimated number of global mobile subscriptions | Employee | 9.1 | |||
Smart phone [member] | Subscription by 2027 [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Estimated number of global mobile subscriptions | Employee | 7.9 | |||
5G subscriptions [member] | Subscription by 2027 [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Estimated number of global mobile subscriptions | Employee | 4.3 | |||
Cloud Communications [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Addressable Market | $ | $ 41 | |||
Cloud Communications [Member] | 2022-2025 [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Addressable Market | $ | $ 73 | |||
Enterprise Private Network and Wireless WAN [Member] | 2022-2025 [member] | Forecast [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Compound Annual Growth Rate | 34% | |||
Capitalised development expenditure [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Remaining amortisation period of intangible assets | 3 years | |||
Customer Relationships IPR and other Intangible Assets [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Intangible assets other than goodwill | kr 26,300 | kr 3,800 | ||
Customer Relationships IPR and other Intangible Assets [Member] | Top of range [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Remaining amortisation period of intangible assets | 10 years | |||
Customer Relationships IPR and other Intangible Assets [Member] | Bottom of range [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Remaining amortisation period of intangible assets | 7 years | |||
Networks [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | kr 28,500 | 25,800 | ||
Internet of things [member] | Subscription by 2027 [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Number of connected devices are forecasted | Employee | 30 | |||
Cash Generating Unit [Member] | 2023-2027 [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Nominal annual growth rate | 20% | 20% | ||
Vonage [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | kr 42,000 | |||
Nominal annual growth rate | 3.50% | 3.50% | ||
Percentage of reasonably possible decrease increase in weighted average cost of capital | 1.50% | |||
ERIC Vonage [Member] | Customer Relationships IPR and other Intangible Assets [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Intangible assets other than goodwill | kr 18,800 | |||
Cloud Software and Services [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | 3,600 | 3,200 | ||
Write down of capitalized development expenses | 137 | |||
Enterprise [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | 52,500 | 9,200 | ||
Write down of capitalized development expenses | kr 61 | kr 176 |
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, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | kr 13,580 | |
Property, plant and equipment, closing balance | 14,236 | kr 13,580 |
Real estate [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 2,922 | |
Property, plant and equipment, closing balance | 2,856 | 2,922 |
Machinery and other technical assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 767 | |
Property, plant and equipment, closing balance | 914 | 767 |
Other equipment tools and installations [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 9,186 | |
Property, plant and equipment, closing balance | 9,493 | 9,186 |
Construction in progress and advance payments [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 705 | |
Property, plant and equipment, closing balance | 973 | 705 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 46,209 | 43,418 |
Additions | 4,477 | 3,663 |
Balances regarding acquired/divested business | 186 | (75) |
Disposals | (2,587) | (2,722) |
Reclassifications | 0 | |
Translation differences | 2,256 | 1,925 |
Property, plant and equipment, closing balance | 50,541 | 46,209 |
Cost [member] | Real estate [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 6,946 | 6,503 |
Additions | 47 | 54 |
Balances regarding acquired/divested business | 37 | |
Disposals | (275) | (348) |
Reclassifications | 287 | 356 |
Translation differences | 481 | 381 |
Property, plant and equipment, closing balance | 7,523 | 6,946 |
Cost [member] | Machinery and other technical assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 3,549 | 3,030 |
Additions | 200 | 207 |
Balances regarding acquired/divested business | 0 | |
Disposals | (421) | (135) |
Reclassifications | 213 | 270 |
Translation differences | 284 | 177 |
Property, plant and equipment, closing balance | 3,825 | 3,549 |
Cost [member] | Other equipment tools and installations [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 35,009 | 32,890 |
Additions | 2,705 | 2,215 |
Balances regarding acquired/divested business | 138 | (75) |
Disposals | (1,638) | (2,145) |
Reclassifications | 593 | 813 |
Translation differences | 1,413 | 1,311 |
Property, plant and equipment, closing balance | 38,220 | 35,009 |
Cost [member] | Construction in progress and advance payments [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 705 | 995 |
Additions | 1,525 | 1,187 |
Balances regarding acquired/divested business | 11 | |
Disposals | (253) | (94) |
Reclassifications | (1,093) | (1,439) |
Translation differences | 78 | 56 |
Property, plant and equipment, closing balance | 973 | 705 |
Accumulated depreciation and amortization [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (31,188) | (28,661) |
Depreciations | (4,114) | (3,674) |
Balances regarding acquired/divested business | 50 | |
Disposals | 2,169 | 2,407 |
Translation differences | (1,552) | (1,310) |
Property, plant and equipment, closing balance | (34,685) | (31,188) |
Accumulated depreciation and amortization [member] | Real estate [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (3,741) | (3,405) |
Depreciations | (502) | (441) |
Disposals | 226 | 315 |
Reclassifications | 1 | |
Translation differences | (265) | (211) |
Property, plant and equipment, closing balance | (4,282) | (3,741) |
Accumulated depreciation and amortization [member] | Machinery and other technical assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (2,678) | (2,393) |
Depreciations | (373) | (286) |
Disposals | 434 | 136 |
Reclassifications | 2 | |
Translation differences | (180) | (137) |
Property, plant and equipment, closing balance | (2,797) | (2,678) |
Accumulated depreciation and amortization [member] | Other equipment tools and installations [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (24,769) | (22,863) |
Depreciations | (3,239) | (2,947) |
Balances regarding acquired/divested business | 50 | |
Disposals | 1,509 | 1,956 |
Reclassifications | (3) | |
Translation differences | (1,107) | (962) |
Property, plant and equipment, closing balance | (27,606) | (24,769) |
Accumulated impairment losses [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (1,441) | (1,374) |
Impairment losses | (274) | (198) |
Disposals | 201 | 210 |
Translation differences | (106) | (79) |
Property, plant and equipment, closing balance | (1,620) | (1,441) |
Accumulated impairment losses [member] | Real estate [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (283) | (275) |
Impairment losses | (115) | (22) |
Disposals | 44 | 29 |
Translation differences | (31) | (15) |
Property, plant and equipment, closing balance | (385) | (283) |
Accumulated impairment losses [member] | Machinery and other technical assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (104) | (75) |
Impairment losses | (4) | (30) |
Disposals | 3 | 5 |
Translation differences | (9) | (4) |
Property, plant and equipment, closing balance | (114) | (104) |
Accumulated impairment losses [member] | Other equipment tools and installations [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (1,054) | (1,024) |
Impairment losses | (146) | (146) |
Disposals | 145 | 176 |
Translation differences | (66) | (60) |
Property, plant and equipment, closing balance | (1,121) | kr (1,054) |
Accumulated impairment losses [member] | Construction in progress and advance payments [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses | (9) | |
Disposals | kr 9 |
Leases - Summary of Components
Leases - Summary of Components of Right of Use Assets (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Leases [Line Items] | ||
Opening balance | kr 7,948 | |
Depreciation | (2,451) | kr (2,277) |
Impairment losses | 66 | 0 |
Closing balance | 7,870 | 7,948 |
Cost [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | 14,857 | 12,778 |
Additions | 1,954 | 2,017 |
Balances regarding acquired/divested business | 334 | (21) |
Terminations | (897) | (575) |
Translation differences | 948 | 658 |
Closing balance | 17,196 | 14,857 |
Accumulated depreciation and amortization [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | (6,261) | (4,145) |
Depreciation | (2,451) | (2,277) |
Balances regarding acquired/divested business | 14 | |
Terminations | 552 | 391 |
Translation differences | (396) | (244) |
Closing balance | (8,556) | (6,261) |
Accumulated impairment losses [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | (303) | (340) |
Impairment losses | (66) | |
Terminations | 27 | 63 |
Translation differences | (32) | (26) |
Closing balance | (374) | (303) |
Financial sublease [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | (345) | (313) |
Translation differences | (51) | (32) |
Closing balance | (396) | (345) |
Real estate [Member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | 7,421 | |
Closing balance | 7,336 | 7,421 |
Real estate [Member] | Cost [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | 13,756 | 11,784 |
Additions | 1,650 | 1,759 |
Balances regarding acquired/divested business | 334 | (10) |
Terminations | (719) | (395) |
Translation differences | 874 | 618 |
Closing balance | 15,895 | 13,756 |
Real estate [Member] | Accumulated depreciation and amortization [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | (5,687) | (3,700) |
Depreciation | (2,141) | (2,002) |
Balances regarding acquired/divested business | 8 | |
Terminations | 393 | 233 |
Translation differences | (354) | (226) |
Closing balance | (7,789) | (5,687) |
Real estate [Member] | Accumulated impairment losses [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | (303) | (340) |
Impairment losses | (66) | |
Terminations | 27 | 63 |
Translation differences | (32) | (26) |
Closing balance | (374) | (303) |
Real estate [Member] | Financial sublease [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | (345) | (313) |
Translation differences | (51) | (32) |
Closing balance | (396) | (345) |
Vehicles [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | 435 | |
Closing balance | 369 | 435 |
Vehicles [member] | Cost [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | 930 | 823 |
Additions | 168 | 258 |
Balances regarding acquired/divested business | (11) | |
Terminations | (178) | (180) |
Translation differences | 78 | 40 |
Closing balance | 998 | 930 |
Vehicles [member] | Accumulated depreciation and amortization [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | (495) | (390) |
Depreciation | (250) | (251) |
Balances regarding acquired/divested business | 6 | |
Terminations | 159 | 158 |
Translation differences | (43) | (18) |
Closing balance | (629) | (495) |
Other [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | 92 | |
Closing balance | 165 | 92 |
Other [member] | Cost [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | 171 | 171 |
Additions | 136 | |
Translation differences | (4) | |
Closing balance | 303 | 171 |
Other [member] | Accumulated depreciation and amortization [member] | ||
Disclosure Of Leases [Line Items] | ||
Opening balance | (79) | (55) |
Depreciation | (60) | (24) |
Translation differences | 1 | |
Closing balance | kr (138) | kr (79) |
Leases - Additional Information
Leases - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Leases [Line Items] | ||
Lease liabilities | kr 9,304 | kr 9,303 |
Current lease liabilities | 2,486 | 2,224 |
Lease cost | 3,775 | 3,375 |
Depreciation | 2,451 | 2,277 |
Impairment losses | (66) | 0 |
Lease expense relating to low-value assets | 516 | 434 |
Interest expense | 464 | 426 |
Variable lease payments | kr 278 | kr 238 |
Future cash outflows from leases not yet commenced | 71 | 157 |
Sublease receivables for operating leases | kr 62 | kr 70 |
Sublease receivables for financial leases | 75 | 64 |
Sublease interest income from financial leases | kr 8 | kr 9 |
Bottom of range [Member] | Lessor [member] | ||
Disclosure Of Leases [Line Items] | ||
Leasing contract period | 1 year | |
Top of range [Member] | Lessor [member] | ||
Disclosure Of Leases [Line Items] | ||
Leasing contract period | 10 years |
Leases - Summary of Cash paymen
Leases - Summary of Cash payments (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Disclosure Of Financial Lease And Operating Lease By Lessee [Abstract] | |||||
Repayment of lease liabilities | kr (2,593) | [1] | kr (2,368) | [1] | kr (2,417) |
Interest expense of the lease liabilities | (464) | (426) | |||
Low-value asset not included in the measurement of the liabilities | (516) | (434) | |||
Variable lease payments not included in the measurement of the lease liabilities | (278) | (238) | |||
Total cash outflow | kr (3,851) | kr (3,466) | |||
[1]Including advance payments. |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Payment Receivables (Detail) kr in Millions | Dec. 31, 2022 SEK (kr) |
Disclosure of Financial Lease and Operating Lease by Lessor [Line Items] | |
Future minimum, Operating leases | kr 171 |
Future minimum, Financial leases | 148 |
2023 [member] | |
Disclosure of Financial Lease and Operating Lease by Lessor [Line Items] | |
Future minimum, Operating leases | 77 |
Future minimum, Financial leases | 67 |
2024 [member] | |
Disclosure of Financial Lease and Operating Lease by Lessor [Line Items] | |
Future minimum, Operating leases | 80 |
Future minimum, Financial leases | 28 |
2025 [member] | |
Disclosure of Financial Lease and Operating Lease by Lessor [Line Items] | |
Future minimum, Operating leases | 14 |
Future minimum, Financial leases | 20 |
2026 [member] | |
Disclosure of Financial Lease and Operating Lease by Lessor [Line Items] | |
Future minimum, Operating leases | 0 |
Future minimum, Financial leases | 19 |
2027 [member] | |
Disclosure of Financial Lease and Operating Lease by Lessor [Line Items] | |
Future minimum, Operating leases | 0 |
Future minimum, Financial leases | 11 |
2028 and later [member] | |
Disclosure of Financial Lease and Operating Lease by Lessor [Line Items] | |
Future minimum, Operating leases | 0 |
Future minimum, Financial leases | kr 3 |
Provisions - Summary of Provisi
Provisions - Summary of Provisions (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Changes In Provisions [line items] | ||
Opening balance | kr 9,504 | kr 10,466 |
Additions | 6,785 | 4,423 |
Reversal of excess amounts | (2,038) | (1,178) |
Charged to income statement | 4,747 | 3,245 |
Utilization/Cash out | (4,573) | (4,209) |
Reclassifications | 575 | (144) |
Translation differences | 285 | 146 |
Closing balance | 11,588 | 9,504 |
Provisions, current | 7,629 | 5,782 |
Provisions, non-current | 3,959 | 3,722 |
Balances regarding acquired business | 1,050 | |
Restructuring [member] | ||
Disclosure Of Changes In Provisions [line items] | ||
Opening balance | 639 | 1,200 |
Additions | 400 | 303 |
Reversal of excess amounts | (54) | (98) |
Utilization/Cash out | (338) | (785) |
Reclassifications | (21) | (1) |
Translation differences | 43 | 20 |
Closing balance | 669 | 639 |
Provisions, current | 448 | 411 |
Provisions, non-current | 221 | 228 |
Customer Related Provision [member] | ||
Disclosure Of Changes In Provisions [line items] | ||
Opening balance | 3,440 | 3,850 |
Additions | 1,024 | 795 |
Reversal of excess amounts | (585) | (491) |
Utilization/Cash out | (824) | (841) |
Reclassifications | (31) | 104 |
Translation differences | 69 | 23 |
Closing balance | 3,093 | 3,440 |
Provisions, current | 1,215 | 1,488 |
Provisions, non-current | 1,878 | 1,952 |
Suppliers Related Provision [member] | ||
Disclosure Of Changes In Provisions [line items] | ||
Opening balance | 1,231 | 791 |
Additions | 561 | 1,020 |
Reversal of excess amounts | (960) | (228) |
Utilization/Cash out | (144) | (175) |
Reclassifications | 32 | (179) |
Translation differences | 2 | 2 |
Closing balance | 722 | 1,231 |
Provisions, current | 198 | 1,231 |
Provisions, non-current | 524 | |
Warranty [member] | ||
Disclosure Of Changes In Provisions [line items] | ||
Opening balance | 1,074 | 987 |
Additions | 368 | 455 |
Reversal of excess amounts | (120) | (153) |
Utilization/Cash out | (646) | (109) |
Reclassifications | 0 | (107) |
Translation differences | 2 | 1 |
Closing balance | 678 | 1,074 |
Provisions, current | 572 | 320 |
Provisions, non-current | 106 | 754 |
Other [member] | ||
Disclosure Of Changes In Provisions [line items] | ||
Opening balance | 1,529 | 1,531 |
Additions | 4,129 | 483 |
Reversal of excess amounts | (220) | (86) |
Utilization/Cash out | (1,724) | (462) |
Reclassifications | 595 | 39 |
Translation differences | 82 | 24 |
Closing balance | 5,441 | 1,529 |
Provisions, current | 4,554 | 1,417 |
Provisions, non-current | 887 | 112 |
Balances regarding acquired business | 1,050 | |
Provision for Share Based Payments [Member] | ||
Disclosure Of Changes In Provisions [line items] | ||
Opening balance | 1,591 | 2,107 |
Additions | 303 | 1,367 |
Reversal of excess amounts | (99) | (122) |
Utilization/Cash out | (897) | (1,837) |
Reclassifications | 0 | |
Translation differences | 87 | 76 |
Closing balance | 985 | 1,591 |
Provisions, current | 642 | 915 |
Provisions, non-current | kr 343 | kr 676 |
Provisions - Additional Informa
Provisions - Additional Information (Detail) kr in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 SEK (kr) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 SEK (kr) | Dec. 31, 2022 SEK (kr) | Mar. 02, 2023 SEK (kr) | Mar. 02, 2023 USD ($) | Dec. 31, 2021 SEK (kr) | Dec. 31, 2020 SEK (kr) | |
Disclosure of Provisions [line items] | ||||||||
Non-current provisions | kr 3,959 | kr 3,959 | kr 3,722 | |||||
Provisions | 11,588 | 11,588 | 9,504 | kr 10,466 | ||||
United States Department Of Justice [Member] | ||||||||
Disclosure of Provisions [line items] | ||||||||
Complience monitorship expenses | 100 | |||||||
Increase (decrease) in other provisions | 2,300 | $ 220,000,000 | ||||||
Non Adjusting Events After Reporting Period [Member] | United States Department Of Justice [Member] | ||||||||
Disclosure of Provisions [line items] | ||||||||
Agreed fine to be paid | kr 2,200 | $ 206,728,848 | ||||||
Restructuring [member] | ||||||||
Disclosure of Provisions [line items] | ||||||||
Non-current provisions | 221 | 221 | 228 | |||||
Provisions | 669 | kr 669 | 639 | 1,200 | ||||
Description of expected timing of outflows, other provisions | 1 year | |||||||
Customer Related Provision [member] | ||||||||
Disclosure of Provisions [line items] | ||||||||
Non-current provisions | 1,878 | kr 1,878 | 1,952 | |||||
Provisions | 3,093 | kr 3,093 | 3,440 | 3,850 | ||||
Description of expected timing of outflows, other provisions | 4 years | |||||||
Suppliers Related Provision [member] | ||||||||
Disclosure of Provisions [line items] | ||||||||
Non-current provisions | 524 | kr 524 | ||||||
Provisions | 722 | kr 722 | 1,231 | 791 | ||||
Description of expected timing of outflows, other provisions | 2 years | |||||||
Warranty [member] | ||||||||
Disclosure of Provisions [line items] | ||||||||
Non-current provisions | 106 | kr 106 | 754 | |||||
Provisions | 678 | kr 678 | 1,074 | 987 | ||||
Description of expected timing of outflows, other provisions | 1 year | |||||||
Other [member] | ||||||||
Disclosure of Provisions [line items] | ||||||||
Non-current provisions | 887 | kr 887 | 112 | |||||
Provisions | 5,441 | kr 5,441 | 1,529 | 1,531 | ||||
Description of expected timing of outflows, other provisions | 1 year | |||||||
Other [member] | United States Department Of Justice [Member] | ||||||||
Disclosure of Provisions [line items] | ||||||||
Complience monitorship expenses | 100 | |||||||
Increase (decrease) in other provisions | 2,300 | |||||||
Other [member] | Russia [Member] | ||||||||
Disclosure of Provisions [line items] | ||||||||
Asset impairment and other costs | kr 900 | |||||||
Provision for Share Based Payments | ||||||||
Disclosure of Provisions [line items] | ||||||||
Non-current provisions | 343 | kr 343 | 676 | |||||
Provisions | kr 985 | kr 985 | kr 1,591 | kr 2,107 | ||||
Description of expected timing of outflows, other provisions | 1 year |
Contingent liabilities - Summar
Contingent liabilities - Summary of Contingent Liabilities (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of contingent liabilities [abstract] | ||
Contingent liabilities | kr 3,322 | kr 1,614 |
Assets Pledged as Collateral -
Assets Pledged as Collateral - Summary of Assets Pledged as Collateral (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Assets Pledged As Collateral [Abstract] | |||
Chattel mortgages | [1] | kr 6,333 | kr 6,341 |
Bank deposits | [2] | 893 | 532 |
Total | kr 7,226 | kr 6,873 | |
[1]See also note G1 “Post-employment benefits.”[2]See also note F1 “Financial risk management.” |
Contractual Obligations - Summa
Contractual Obligations - Summary of Contractual Obligations (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Contractual Obligations [line items] | |||
Other non-current liabilities | kr 745 | kr 1,587 | |
Trade payables | 38,437 | 35,684 | |
Contractual obligations [member] | |||
Disclosure of Contractual Obligations [line items] | |||
Current and non-current debt | [1] | 39,500 | 33,400 |
Lease obligations | [2] | 10,600 | 10,600 |
Other non-current liabilities | 700 | 1,600 | |
Purchase obligations | [3] | 21,100 | 27,600 |
Trade payables | 38,400 | 35,700 | |
Commitments for customer finance | [4] | 54,100 | 47,300 |
Derivatives liabilities | [4] | 2,600 | 800 |
Total | 167,000 | 157,000 | |
Contractual obligations [member] | 2023 [member] | |||
Disclosure of Contractual Obligations [line items] | |||
Current and non-current debt | [1] | 6,300 | 9,800 |
Lease obligations | [2] | 3,000 | 2,600 |
Other non-current liabilities | 0 | 0 | |
Purchase obligations | [3] | 17,800 | 23,200 |
Trade payables | 38,400 | 35,700 | |
Commitments for customer finance | [4] | 44,300 | 34,400 |
Derivatives liabilities | [4] | 900 | 400 |
Total | 110,700 | 106,100 | |
Contractual obligations [member] | Maturity between 1 and 3 years [member] | |||
Disclosure of Contractual Obligations [line items] | |||
Current and non-current debt | [1] | 12,900 | 10,400 |
Lease obligations | [2] | 4,400 | 4,300 |
Other non-current liabilities | 600 | 1,000 | |
Purchase obligations | [3] | 3,100 | 4,100 |
Trade payables | 0 | 0 | |
Commitments for customer finance | [4] | 8,600 | 9,700 |
Derivatives liabilities | [4] | 1,100 | 400 |
Total | 30,700 | 29,900 | |
Contractual obligations [member] | Maturity between 3 and 5 years [member] | |||
Disclosure of Contractual Obligations [line items] | |||
Current and non-current debt | [1] | 9,100 | 3,100 |
Lease obligations | [2] | 2,100 | 2,300 |
Other non-current liabilities | 0 | 0 | |
Purchase obligations | [3] | 200 | 300 |
Trade payables | 0 | 0 | |
Commitments for customer finance | [4] | 1,200 | 3,200 |
Derivatives liabilities | [4] | 600 | 0 |
Total | 13,200 | 8,900 | |
Contractual obligations [member] | 2028 and later [member] | |||
Disclosure of Contractual Obligations [line items] | |||
Current and non-current debt | [1] | 11,200 | 10,100 |
Lease obligations | [2] | 1,100 | 1,400 |
Other non-current liabilities | 100 | 600 | |
Purchase obligations | [3] | 0 | 0 |
Trade payables | 0 | 0 | |
Commitments for customer finance | [4] | 0 | 0 |
Derivatives liabilities | [4] | 0 | 0 |
Total | kr 12,400 | kr 12,100 | |
[1]Current and non-current debt, including interest commitments.[2]Future lease obligations, nominal lease liability, see also note C3 “Leases.”[3]The amounts of purchase obligations are gross, before deduction of any related provisions.[4]See also note F1 “Financial risk management.” |
Equity and Other Comprehensive
Equity and Other Comprehensive Income (Loss) - Summary of Capital Stock (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of classes of share capital [line items] | |||
Capital stock | kr 133,304 | kr 107,099 | kr 85,177 |
Capital stock [member] | |||
Disclosure of classes of share capital [line items] | |||
Capital stock | 16,672 | 16,672 | kr 16,672 |
Capital stock [member] | Class A shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Capital stock | 1,309 | 1,309 | |
Capital stock [member] | Class B shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Capital stock | kr 15,363 | kr 15,363 |
Equity and Other Comprehensiv_2
Equity and Other Comprehensive Income (Loss) - Additional Information (Detail) - SEK (kr) kr / shares in Units, kr in Millions | 12 Months Ended | |||||
Sep. 29, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of classes of share capital [line items] | ||||||
Dividends recognised as distributions to owners | kr 8,415 | [1] | kr 6,889 | kr 5,996 | ||
Board of Directors [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Dividends recognised as distributions to owners | kr 9,000 | kr 8,300 | ||||
Major ordinary share transactions [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Dividend proposed | kr 1.35 | kr 1.35 | kr 2.7 | kr 2.5 | kr 2 | |
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 | 4,009,306 | 4,009,306 | 6,043,960 | |||
[1]Dividends paid per share amounted to SEK 2.50 (SEK 2.00 in 2021 and SEK 1.50 in 2020). |
Equity and Other Comprehensiv_3
Equity and Other Comprehensive Income (Loss) - Summary of Reconciliation of Number of Shares (Detail) - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Number of Shares Outstanding | ||
Number of shares | 3,334,151,735 | 3,334,151,735 |
Class A Shares [Member] | ||
Number of Shares Outstanding | ||
Number of shares | 261,755,983 | 261,755,983 |
Class B Shares [Member] | ||
Number of Shares Outstanding | ||
Number of shares | 3,072,395,752 | 3,072,395,752 |
Equity and Other Comprehensiv_4
Equity and Other Comprehensive Income (Loss) - Summary of Other Reserves (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Other Reserves [Line Items] | ||||
Opening balance on Jan 1 | kr 454 | |||
Items that will not be reclassified to profit or loss | ||||
Revaluation of borrowings due to change in credit risk | 1,030 | kr 31 | kr 99 | |
Tax on items that will not be reclassified to profit or loss | (3,067) | (682) | 880 | |
Cash flow hedge reserve | ||||
Gains/losses arising during the period | (701) | (542) | 136 | |
Reclassification to profit and loss | 280 | (96) | 281 | |
Gains/losses arising during the period | 3,703 | |||
Transfer to goodwill | (3,677) | |||
Translation reserves | ||||
Changes in translation reserves | 7,130 | [1] | 3,342 | (5,376) |
Reclassification to profit and loss | (85) | [1] | 46 | 124 |
Share of other comprehensive income of JV and associated companies | 49 | 28 | (81) | |
Tax on items that have been or may be reclassified to profit or loss | 87 | 126 | (86) | |
Other comprehensive income, net of tax | 15,418 | 5,790 | (8,641) | |
Total comprehensive income | 34,530 | 28,770 | 8,982 | |
Closing balance on Dec 31 | 8,201 | 454 | ||
Reserve of exchange differences on translation [member] | ||||
Other Reserves [Line Items] | ||||
Opening balance on Jan 1 | 1,206 | (2,424) | ||
Items that will not be reclassified to profit or loss | ||||
Revaluation of borrowings due to change in credit risk | 0 | 0 | ||
Tax on items that will not be reclassified to profit or loss | 0 | 0 | ||
Cash flow hedge reserve | ||||
Gains/losses arising during the period | 0 | 0 | ||
Reclassification to profit and loss | 0 | 0 | ||
Gains/losses arising during the period | 0 | 0 | ||
Transfer to goodwill | 0 | 0 | ||
Translation reserves | ||||
Changes in translation reserves | 7,273 | 3,556 | ||
Reclassification to profit and loss | (85) | 46 | ||
Share of other comprehensive income of JV and associated companies | 49 | 28 | ||
Tax on items that have been or may be reclassified to profit or loss | 0 | 0 | ||
Other comprehensive income, net of tax | 7,237 | 3,630 | ||
Total comprehensive income | 7,237 | 3,630 | ||
Transfer to retained earnings | 0 | 0 | ||
Closing balance on Dec 31 | 8,443 | 1,206 | (2,424) | |
Reserve of cash flow hedges [member] | ||||
Other Reserves [Line Items] | ||||
Opening balance on Jan 1 | (411) | 101 | ||
Items that will not be reclassified to profit or loss | ||||
Revaluation of borrowings due to change in credit risk | 0 | 0 | ||
Tax on items that will not be reclassified to profit or loss | (758) | 0 | ||
Cash flow hedge reserve | ||||
Gains/losses arising during the period | (701) | (542) | ||
Reclassification to profit and loss | 280 | (96) | ||
Gains/losses arising during the period | 3,703 | 0 | ||
Transfer to goodwill | (3,677) | 0 | ||
Translation reserves | ||||
Changes in translation reserves | 0 | 0 | ||
Reclassification to profit and loss | 0 | 0 | ||
Share of other comprehensive income of JV and associated companies | 0 | 0 | ||
Tax on items that have been or may be reclassified to profit or loss | 87 | 126 | ||
Other comprehensive income, net of tax | (1,066) | (512) | ||
Total comprehensive income | (1,066) | (512) | ||
Transfer to retained earnings | 758 | 0 | ||
Closing balance on Dec 31 | (719) | (411) | 101 | |
Revaluation Of Borrowings [Member] | ||||
Other Reserves [Line Items] | ||||
Opening balance on Jan 1 | (341) | (366) | ||
Items that will not be reclassified to profit or loss | ||||
Revaluation of borrowings due to change in credit risk | 1,030 | 31 | ||
Tax on items that will not be reclassified to profit or loss | (212) | (6) | ||
Cash flow hedge reserve | ||||
Gains/losses arising during the period | 0 | 0 | ||
Reclassification to profit and loss | 0 | 0 | ||
Gains/losses arising during the period | 0 | 0 | ||
Transfer to goodwill | 0 | 0 | ||
Translation reserves | ||||
Changes in translation reserves | 0 | 0 | ||
Reclassification to profit and loss | 0 | 0 | ||
Share of other comprehensive income of JV and associated companies | 0 | 0 | ||
Tax on items that have been or may be reclassified to profit or loss | 0 | 0 | ||
Other comprehensive income, net of tax | 818 | 25 | ||
Total comprehensive income | 818 | 25 | ||
Transfer to retained earnings | 0 | 0 | ||
Closing balance on Dec 31 | 477 | (341) | (366) | |
Other reserves [member] | ||||
Other Reserves [Line Items] | ||||
Opening balance on Jan 1 | 454 | (2,689) | ||
Items that will not be reclassified to profit or loss | ||||
Revaluation of borrowings due to change in credit risk | 1,030 | 31 | 99 | |
Tax on items that will not be reclassified to profit or loss | (970) | (6) | (20) | |
Cash flow hedge reserve | ||||
Gains/losses arising during the period | (701) | (542) | 136 | |
Reclassification to profit and loss | 280 | (96) | 281 | |
Gains/losses arising during the period | 3,703 | 0 | ||
Transfer to goodwill | (3,677) | |||
Translation reserves | ||||
Changes in translation reserves | 7,273 | [1] | 3,556 | (5,434) |
Reclassification to profit and loss | (85) | [1] | 46 | 124 |
Share of other comprehensive income of JV and associated companies | 49 | 28 | (81) | |
Tax on items that have been or may be reclassified to profit or loss | 87 | 126 | (86) | |
Other comprehensive income, net of tax | 6,989 | 3,143 | (4,981) | |
Total comprehensive income | 6,989 | 3,143 | (4,981) | |
Transfer to retained earnings | 758 | |||
Closing balance on Dec 31 | kr 8,201 | kr 454 | kr (2,689) | |
[1]Changes in translation reserves include changes regarding revaluation of goodwill in local currency of SEK 5,070 million (SEK 2,646 million in 2021 and SEK -3,359 million in 2020). |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Acquisitions 2020-2022 [member] | |||
Disclosure Of Consideration Transferred Business Combinations [Line Items] | |||
Purchase price paid on acquisition | kr 51,297 | kr 256 | kr 9,534 |
Deferred consideration/Others | 1,972 | 0 | 314 |
Total consideration, all cash and cash equivalents | 53,269 | 256 | 9,848 |
Net assets (liabilities) acquired | |||
Intangible assets | 23,554 | (95) | 3,583 |
Property, plant and equipment | 186 | 1 | 55 |
Right-of-use of assets | 334 | 0 | 126 |
Investments in associates | 0 | 0 | 167 |
Cash and cash equivalents | 521 | 0 | 314 |
Other assets | 5,344 | 21 | 1,292 |
Provisions, incl. post-employment benefits | (1,050) | 0 | (16) |
Other liabilities | (16,916) | (348) | (2,781) |
Total identifiable net assets (liabilities) | 11,973 | (421) | 2,740 |
Goodwill | 41,296 | 677 | 7,108 |
Total | 53,269 | 256 | 9,848 |
Acquisition-related costs | 436 | kr 11 | kr 92 |
Vonage Holdings Corp | |||
Disclosure Of Consideration Transferred Business Combinations [Line Items] | |||
Purchase price paid on acquisition | 51,297 | ||
Deferred consideration | 1,972 | ||
Total consideration, all cash and cash equivalents | 53,269 | ||
Net assets (liabilities) acquired | |||
Intangible assets | 23,554 | ||
Property, plant and equipment | 186 | ||
Right-of-use of assets | 334 | ||
Deferred tax assets | 2,353 | ||
Trade receivables | 1,094 | ||
Cash and cash equivalents | 521 | ||
Other assets | 1,896 | ||
Provisions | (1,050) | ||
Deferred tax liabilities | (6,264) | ||
Borrowings | (6,473) | ||
Lease liabilities | (403) | ||
Other liabilities | (3,775) | ||
Total identifiable net assets (liabilities) | 11,973 | ||
Goodwill | 41,296 | ||
Total | 53,269 | ||
Acquisition-related costs | kr 436 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Acquisitions 2020-2022 [member] | |||
Disclosure Of Business Combinations [Line Items] | |||
Cash flow effect pursuant to business combinations | kr 51,734 | kr (256) | |
Deferred consideration payable | 1,000 | ||
Cash and cash equivalents in subsidiary or businesses acquired or disposed | 521 | 0 | kr 314 |
Hedge RecognisedAsOfAcquisitionDate | 3,700 | ||
Divestments [Member] | |||
Disclosure Of Business Combinations [Line Items] | |||
Cash flow effect pursuant to business combinations | 20 | kr 273 | |
Vonage [Member] | |||
Disclosure Of Business Combinations [Line Items] | |||
EBIT loss acquiree since acquisition date | (1,800) | ||
EBIT (loss) combined entity as if combination occurred at beginning of period | (3,000) | ||
Revenue of combined entity as if combination occurred at beginning of period | 14,400 | ||
Revenue of acquiree since acquisition date | kr 7,000 |
Business Combinations - Summa_2
Business Combinations - Summary of Divestments Transactions (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net assets disposed of | |||
Goodwill | kr 84,570 | kr 38,204 | |
Divestments 2020-2022 [member] | |||
Disclosure Of Divestitures [Line Items] | |||
Proceeds | 318 | 273 | kr 4 |
Cash and cash equivalents | 20 | 273 | 4 |
Shares in associated companies | 298 | 0 | 0 |
Net assets disposed of | |||
Property, plant and equipment | 0 | 26 | 1 |
Right-of-use assets | 0 | 7 | 1 |
Investments in associates | 82 | 0 | 0 |
Intangible assets | 0 | 0 | 48 |
Goodwill | 0 | (48) | 4 |
Other assets | 23 | 51 | 83 |
Provisions, incl. post-employment benefits | (42) | (30) | (1) |
Other liabilities | (101) | 36 | 6 |
Total net assets | (38) | 42 | 142 |
Net gains/losses from divestments | 356 | 231 | (138) |
Shares in associated companies | (298) | 0 | 0 |
Cash flow effect | kr 20 | kr 273 | kr 4 |
Business Combinations - Summa_3
Business Combinations - Summary of Business Acquisitions Transactions (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Cradlepoint [member] | |
Disclosure Of Business Combinations [Line Items] | |
Company | Cradlepoint |
Description | A US company providing Wireless WAN Edge 4G and 5G solutions for the enterprise market. |
Transaction date | Nov. 01, 2020 |
Genaker [member] | |
Disclosure Of Business Combinations [Line Items] | |
Company | Genaker |
Description | A Spanish provider of Mission Critical Push-to-talk (MC-PTT) solutions. |
Transaction date | Mar. 01, 2020 |
Quortus [Member] | |
Disclosure Of Business Combinations [Line Items] | |
Company | Quortus |
Description | A UK based mobile core software business with expertise in enterprise 4G/5G technology. |
Transaction date | Nov. 01, 2021 |
Axonix [Member] | |
Disclosure Of Business Combinations [Line Items] | |
Company | Axonix |
Description | A UK based mobile-first programmatic advertising exchange business. |
Transaction date | Mar. 01, 2021 |
Vonage [Member] | |
Disclosure Of Business Combinations [Line Items] | |
Company | Vonage |
Description | A US based global provider of cloud-based communications. |
Transaction date | Jul. 01, 2022 |
Business Combinations - Summa_4
Business Combinations - Summary of Business Divestments Transactions (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Data Center [Member] | |
Disclosure Of Business Divestitures [Line Items] | |
Divestments, Company | Data center |
Divestments, Description | A data center business located in the Netherlands. |
Business Divestments, transaction date | Nov. 01, 2021 |
Aerialink [Member] | |
Disclosure Of Business Divestitures [Line Items] | |
Divestments, Company | Aerialink |
Divestments, Description | A US based company providing premier messaging solutions for business to business communications |
Business Divestments, transaction date | Nov. 01, 2022 |
Associated Companies - Equity i
Associated Companies - Equity in Associated Companies (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | ||||
Share in earnings | kr 17 | kr (260) | kr (298) | |
Taxes | (5,497) | (6,270) | (9,589) | |
Dividends | (8,415) | [1] | (6,889) | (5,996) |
Associates [member] | ||||
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | ||||
Equity in joint ventures and associated companies,Opening balance | 941 | 1,274 | ||
Investments | 298 | 0 | ||
Share in earnings | 17 | (260) | ||
Distribution of capital stock | (24) | 0 | ||
Taxes | (14) | (11) | ||
Dividends | (58) | (90) | ||
Divested business | (82) | (260) | ||
Translation differences | 49 | 28 | ||
Equity in joint ventures and associated companies,Closing balance | kr 1,127 | kr 941 | kr 1,274 | |
[1]Dividends paid per share amounted to SEK 2.50 (SEK 2.00 in 2021 and SEK 1.50 in 2020). |
Associated Companies - Addition
Associated Companies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Conceal Fab Inc., [Member] | |
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |
Percentage of ownership | 35.60% |
Ericsson Nikola Tesla d.d., [Member] | |
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |
Percentage of ownership | 49.07% |
Financial Risk Management - Sch
Financial Risk Management - Schedule of Capital Objectives-Related Information (Detail) - SEK (kr) kr in Billions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Capital Objectives Related Information [Line Items] | ||
Free cash flow before M&A as % of net sales 1) | 8.20% | 13.80% |
Positive net cash (SEK billion) 1) | kr 23.3 | kr 65.8 |
Moody's [member] | External credit grades [member] | ||
Disclosure Of Capital Objectives Related Information [Line Items] | ||
Credit rating | Ba1, stable | Ba1, stable |
SP Global [Member] | External credit grades [member] | ||
Disclosure Of Capital Objectives Related Information [Line Items] | ||
Credit rating | BBB-, developing | BBB-, stable |
Fitch Ratings [member] | External credit grades [member] | ||
Disclosure Of Capital Objectives Related Information [Line Items] | ||
Credit rating | BBB-, stable | BBB-, stable |
Financial Risk Management - Sum
Financial Risk Management - Summary of Net Exposure for Largest Currencies Impact on Sales (Detail) kr in Billions | 12 Months Ended |
Dec. 31, 2022 SEK (kr) | |
USD [member] | |
Disclosure Of Currency Exposure [Line Items] | |
Sales translation exposure | kr 106.2 |
Sales transaction exposure | 51.5 |
Sales net exposure | 157.7 |
Cost translation exposure | (51.8) |
Cost transaction exposure | (77.9) |
Cost net exposure | (129.7) |
EUR [member] | |
Disclosure Of Currency Exposure [Line Items] | |
Sales translation exposure | 38.2 |
Sales transaction exposure | 1.9 |
Sales net exposure | 40.1 |
Cost translation exposure | (32.1) |
Cost transaction exposure | 15.2 |
Cost net exposure | (16.9) |
JPY [member] | |
Disclosure Of Currency Exposure [Line Items] | |
Sales translation exposure | 9.7 |
Sales transaction exposure | 0 |
Sales net exposure | 9.7 |
Cost translation exposure | (3.7) |
Cost transaction exposure | 0 |
Cost net exposure | (3.7) |
INR [member] | |
Disclosure Of Currency Exposure [Line Items] | |
Sales translation exposure | 10.9 |
Sales transaction exposure | (0.4) |
Sales net exposure | 10.5 |
Cost translation exposure | (6.5) |
Cost transaction exposure | 0.1 |
Cost net exposure | (6.4) |
CAD [member] | |
Disclosure Of Currency Exposure [Line Items] | |
Sales translation exposure | 4.1 |
Sales transaction exposure | 0 |
Sales net exposure | 4.1 |
Cost translation exposure | (1) |
Cost transaction exposure | 0.4 |
Cost net exposure | (0.6) |
TWD [member] | |
Disclosure Of Currency Exposure [Line Items] | |
Sales translation exposure | 4.5 |
Sales transaction exposure | 0 |
Sales net exposure | 4.5 |
Cost translation exposure | (1.8) |
Cost transaction exposure | 0 |
Cost net exposure | (1.8) |
CNY [member] | |
Disclosure Of Currency Exposure [Line Items] | |
Sales translation exposure | 8.7 |
Sales transaction exposure | (0.3) |
Sales net exposure | 8.4 |
Cost translation exposure | (7.2) |
Cost transaction exposure | 1.2 |
Cost net exposure | (6) |
KRW [member] | |
Disclosure Of Currency Exposure [Line Items] | |
Sales translation exposure | 4.5 |
Sales transaction exposure | 0 |
Sales net exposure | 4.5 |
Cost translation exposure | (2.5) |
Cost transaction exposure | 0.2 |
Cost net exposure | kr (2.3) |
Financial Risk Management - S_2
Financial Risk Management - Summary of Net Exposure for Largest Currencies Impact on Sales (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flow hedges [member] | ||
Disclosure Of Currency Exposure [Line Items] | ||
Hedged Sales Volume | $ 2,278 | $ 401 |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) € in Millions, kr in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2022 USD ($) | May 31, 2022 USD ($) | Feb. 28, 2022 EUR (€) | Dec. 31, 2022 SEK (kr) Arrangements | Dec. 31, 2021 SEK (kr) Arrangements | Dec. 31, 2020 SEK (kr) | Dec. 31, 2022 USD ($) Arrangements | Dec. 31, 2021 USD ($) Arrangements | |
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Description of objectives, policies and processes for managing risk | In order to spread the FX execution risk over the year, 14% of each of the next six months forecasted sales and purchases in EAB are hedged monthly. This excludes volume in the 7 to 18 month cash flow hedge program. The hedged volumes are funded by internal loans from its parent company which are not hedged, therefore the FX impact on revaluation of the loan is recognized in net FX as incurred. | |||||||
Outstanding loan at year-end | $ | $ 149 | $ 728 | ||||||
Average balance over the year | $ | $ 529 | $ 926 | ||||||
Net gain on the hedge loan balances | kr 897 | |||||||
Percentage of probability level | 99% | |||||||
Description of Sensitivity analysis | The Company uses the Value at Risk (VaR) methodology to measure foreign exchange and interest rate risks 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 one-day time horizon. | |||||||
Percentage of risk at confidence level | 99% | |||||||
Maximum foreign exchange positions | kr 45 | |||||||
Average of value at risk calculated | 21 | kr (15.3) | ||||||
Sensitivity to interest rate increase of 1 basis point | 0 | |||||||
Trade receivables and contract assets | 58,256 | 55,905 | ||||||
Contract assets | 9,843 | 10,506 | ||||||
Provisions for expected credit losses on trade receivables and contract assets | 2,492 | 2,398 | ||||||
Receivables write-offs | 70 | 163 | ||||||
Receivables subject to enforcement | kr 4 | 0 | ||||||
Information about major customers | the five largest facilities represented 74% (70%) of the customer finance exposure. | |||||||
Customer finance credits | kr 7,758 | 5,239 | ||||||
Carrying value of customer finance credits | kr 5,370 | kr 3,287 | ||||||
Total customer finance arrangements | Arrangements | 73 | 81 | 73 | 81 | ||||
Unutilized customer finance commitments | kr 54,086 | kr 47,344 | ||||||
Fair value revaluations for customer finance | (15) | 350 | ||||||
Customer finance credit realized losses | (17) | 347 | ||||||
Credit exposure | 800 | 300 | ||||||
Repayment of borrowings | 16,029 | 5,791 | kr 9,031 | |||||
Proceeds from issuance of borrowings | kr 10,755 | kr 7,882 | kr 3,219 | |||||
Free Cash Flow Before Merger And Acquisition Of Net Sales | 8.20% | 13.80% | ||||||
Long term borrowings average maturity duration | 3 years 9 months 18 days | 3 years 6 months | ||||||
Ericssons Sustainability KPIs Revolving Credit Facility [Member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Committed credit facilities amount | $ | $ 2,000 | |||||||
Euro Medium Term Note Program [member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Borrowings maturity | 2027 | |||||||
Proceeds from issuance of borrowings | € | € 750 | |||||||
SEC Registered Program [member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Repayment of borrowings | $ | $ 1,000 | |||||||
Middle East and Africa [member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Aggregate percentage of customer finance exposure | 30% | 44% | ||||||
South East Asia, Oceania and India [member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Aggregate percentage of customer finance exposure | 18% | 6% | ||||||
North America [member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Aggregate percentage of customer finance exposure | 24% | 32% | ||||||
Europe And Latin America [Member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Aggregate percentage of customer finance exposure | 27% | 17% | ||||||
Interest Bearing Assets [member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Sensitivity to interest rate increase of 1 basis point | kr (2) | |||||||
Interest bearing liabilities [member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Sensitivity to interest rate increase of 1 basis point | kr 8 | |||||||
Trade receivables [member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Concentrations of risk | 45% | (47.00%) | ||||||
Contract assets [member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Contract assets | kr 1 | kr 1 | ||||||
Exchange rate risk [member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
SEK exchange rate | 14 | |||||||
Currency risk [member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Net unrealized revaluation gain on hedged loans | kr 294 | |||||||
Net realized loss on hedged loans | kr 1,191 | |||||||
Bottom of range [Member] | Scenario Forecast [Member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Free Cash Flow Before Merger And Acquisition Of Net Sales | 9% | |||||||
Top of range [Member] | Scenario Forecast [Member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Free Cash Flow Before Merger And Acquisition Of Net Sales | 12% | |||||||
Top of range [Member] | Interest Bearing Assets [member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Sensitivity to interest rate increase of 1 basis point | kr 10 | |||||||
Top of range [Member] | Interest bearing liabilities [member] | ||||||||
Disclosure Of Financial Risk Management [Line Items] | ||||||||
Sensitivity to interest rate increase of 1 basis point | kr 1.5 | kr 1.1 |
Financial Risk Management - S_3
Financial Risk Management - Summary of Sensitivity to Interest Rate Increase of One Basis Point (Detail) kr in Millions | 12 Months Ended |
Dec. 31, 2022 SEK (kr) | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | kr 0 |
Less than three months [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 0 |
Maturity between 3 and 12 months [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 0 |
Maturity between 1 and 3 years [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | (1) |
Maturity between 3 and 5 years [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 0 |
2026 and later [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 1 |
Interest Bearing Assets [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | (2) |
Interest Bearing Assets [member] | Less than three months [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 0 |
Interest Bearing Assets [member] | Maturity between 3 and 12 months [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 0 |
Interest Bearing Assets [member] | Maturity between 1 and 3 years [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | (1) |
Interest Bearing Assets [member] | Maturity between 3 and 5 years [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | (1) |
Interest Bearing Assets [member] | 2026 and later [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 0 |
Interest bearing liabilities [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 8 |
Interest bearing liabilities [member] | Less than three months [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 0 |
Interest bearing liabilities [member] | Maturity between 3 and 12 months [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 0 |
Interest bearing liabilities [member] | Maturity between 1 and 3 years [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 1 |
Interest bearing liabilities [member] | Maturity between 3 and 5 years [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 3 |
Interest bearing liabilities [member] | 2026 and later [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 4 |
Derivatives [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | (6) |
Derivatives [member] | Less than three months [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 0 |
Derivatives [member] | Maturity between 3 and 12 months [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 0 |
Derivatives [member] | Maturity between 1 and 3 years [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | (1) |
Derivatives [member] | Maturity between 3 and 5 years [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | (2) |
Derivatives [member] | 2026 and later [member] | |
Disclosure Of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | kr (3) |
Financial Risk Management - Dis
Financial Risk Management - Disclosure of Outstanding Derivatives (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Currency Derivatives [member] | Liabilities [member] | ||
Outstanding Derivatives [Line Items] | ||
Outstanding derivatives gross amount recognized | kr (2,778) | kr (707) |
Outstanding derivatives offset | 165 | 36 |
Outstanding derivatives net amount presented | (2,613) | (671) |
Outstanding derivatives related amounts not offset – Collaterals | 2,382 | 467 |
Net Outstanding derivatives | (231) | (204) |
Currency Derivatives [member] | Assets [member] | ||
Outstanding Derivatives [Line Items] | ||
Outstanding derivatives gross amount recognized | 1,275 | 294 |
Outstanding derivatives offset | (165) | (36) |
Outstanding derivatives net amount presented | 1,110 | 258 |
Outstanding derivatives related amounts not offset – Collaterals | (277) | 0 |
Net Outstanding derivatives | 833 | 258 |
Interest Rate Derivatives [member] | Liabilities [member] | ||
Outstanding Derivatives [Line Items] | ||
Outstanding derivatives gross amount recognized | (8) | (111) |
Outstanding derivatives offset | 0 | 20 |
Outstanding derivatives net amount presented | (8) | (91) |
Outstanding derivatives related amounts not offset – Collaterals | 0 | 0 |
Net Outstanding derivatives | (8) | (91) |
Interest Rate Derivatives [member] | Assets [member] | ||
Outstanding Derivatives [Line Items] | ||
Outstanding derivatives gross amount recognized | 11 | 79 |
Outstanding derivatives offset | 0 | (20) |
Outstanding derivatives net amount presented | 11 | 59 |
Outstanding derivatives related amounts not offset – Collaterals | 0 | 0 |
Net Outstanding derivatives | kr 11 | kr 59 |
Financial Risk Management - D_2
Financial Risk Management - Disclosure of Outstanding Derivatives (Parenthetical) (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Outstanding Derivatives [Line Items] | ||
Other current liabilities | kr 46,193 | kr 37,921 |
Currency Derivatives [member] | Cash flow hedges [member] | ||
Outstanding Derivatives [Line Items] | ||
Other current assets | 566 | 9 |
Other current liabilities | kr 1,472 | kr 510 |
Financial Risk Management - S_4
Financial Risk Management - Summary of Currency Derivatives Designated as Hedging Instruments (Detail) - Cash flow hedges [member] - Foreign exchange forward contracts [member] $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Disclosure Of Information About Terms And Conditions Of Hedging Instruments And How They Affect Future Cash Flows [Line Items] | |
Notional Amount (USD millions) | 4,472 |
Maturity within 3 months [member] | |
Disclosure Of Information About Terms And Conditions Of Hedging Instruments And How They Affect Future Cash Flows [Line Items] | |
Notional Amount (USD millions) | 916 |
Average forward rate (SEK/USD) | 9.66 |
Maturity between 3 and 12 months [member] | |
Disclosure Of Information About Terms And Conditions Of Hedging Instruments And How They Affect Future Cash Flows [Line Items] | |
Notional Amount (USD millions) | 1,362 |
Average forward rate (SEK/USD) | 10.46 |
Longer than 1 year [member] | |
Disclosure Of Information About Terms And Conditions Of Hedging Instruments And How They Affect Future Cash Flows [Line Items] | |
Notional Amount (USD millions) | 2,194 |
Average forward rate (SEK/USD) | 9.9 |
Financial Risk Management - S_5
Financial Risk Management - Summary of Movements in Allowances for Impairment of Trade Receivables and Contract Assets (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Trade and other receivables [abstract] | ||
Opening balance | kr 2,398 | kr 2,518 |
Balances regarding acquired business | 90 | 0 |
Increase in allowance | 40 | 40 |
Write-offs | (70) | (163) |
Translation difference | 34 | 3 |
Closing balance | kr 2,492 | kr 2,398 |
Financial Risk Management - S_6
Financial Risk Management - Summary of Aging Analysis of Gross Values of Trade Receivables and Contracts Assets by Risk Category (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | kr 60,748 | kr 58,303 |
Not due [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 53,050 | 52,602 |
Maturity within 3 months [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 4,314 | 2,094 |
Later than 3 months and not later than 6 months [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 699 | 672 |
2021 [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 532 | 541 |
Longer than 1 year [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 2,153 | 2,394 |
Country risk Low [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 34,701 | 37,929 |
Country risk Low [member] | Not due [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 32,015 | 36,439 |
Country risk Low [member] | Maturity within 3 months [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 2,090 | 976 |
Country risk Low [member] | Later than 3 months and not later than 6 months [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 165 | 171 |
Country risk Low [member] | 2021 [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 103 | 51 |
Country risk Low [member] | Longer than 1 year [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 328 | 292 |
Country risk medium [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 20,214 | 13,971 |
Country risk medium [member] | Not due [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 17,731 | 12,119 |
Country risk medium [member] | Maturity within 3 months [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 1,614 | 689 |
Country risk medium [member] | Later than 3 months and not later than 6 months [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 150 | 208 |
Country risk medium [member] | 2021 [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 134 | 220 |
Country risk medium [member] | Longer than 1 year [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 585 | 735 |
Country risk high [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 5,833 | 6,403 |
Country risk high [member] | Not due [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 3,304 | 4,044 |
Country risk high [member] | Maturity within 3 months [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 610 | 429 |
Country risk high [member] | Later than 3 months and not later than 6 months [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 384 | 293 |
Country risk high [member] | 2021 [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | 295 | 270 |
Country risk high [member] | Longer than 1 year [member] | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Aging analysis by risk category | kr 1,240 | kr 1,367 |
Financial Risk Management - S_7
Financial Risk Management - Summary of Outstanding Customer Finance Credit Exposure (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Outstanding Customer Finance [Abstract] | ||
Fair value of customer finance credits | kr 5,370 | kr 3,287 |
Financial guarantees for third-parties | 6 | 6 |
Accrued interest | 8 | 9 |
Maximum exposure to credit risk | 5,384 | 3,302 |
Less third-party risk coverage | (298) | (94) |
The Company's risk exposure, less third-party risk coverage | kr 5,086 | kr 3,208 |
Financial Risk Management - D_3
Financial Risk Management - Disclosure of Customer Finance Fair Value Reconciliation (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Customer Finance Reconciliation [Abstract] | ||
Opening balance | kr 3,287 | kr 3,137 |
Additions | 37,295 | 30,121 |
Disposals/repayments | (35,412) | (30,468) |
Revaluation | (151) | 322 |
Translation difference | 351 | 175 |
Closing balance | 5,370 | 3,287 |
Of which non-current | kr 415 | kr 568 |
Financial Risk Management - S_8
Financial Risk Management - Summary of Cash, Cash Equivalents and Interest-Bearing Securities (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Bank deposits | kr 38,658 | kr 44,873 |
Other financial institutions | 604 | 247 |
Derivative assets | 1,121 | 317 |
Cash, cash equivalents, interest bearing securities and derivative assets | 57,370 | 97,925 |
Maturity within 3 months [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Bank deposits | 38,485 | 44,758 |
Other financial institutions | 604 | 247 |
Derivative assets | 323 | 118 |
Cash, cash equivalents, interest bearing securities and derivative assets | 41,610 | 55,092 |
Maturity between 3 and 12 months [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Bank deposits | 166 | 104 |
Other financial institutions | 0 | 0 |
Derivative assets | 385 | 199 |
Cash, cash equivalents, interest bearing securities and derivative assets | 6,183 | 8,958 |
Maturity less than five years [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Bank deposits | 7 | 11 |
Other financial institutions | 0 | 0 |
Derivative assets | 277 | 0 |
Cash, cash equivalents, interest bearing securities and derivative assets | 9,441 | 33,571 |
2026 and later [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Bank deposits | 0 | 0 |
Other financial institutions | 0 | 0 |
Derivative assets | 136 | 0 |
Cash, cash equivalents, interest bearing securities and derivative assets | 136 | 304 |
AA/AAA [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Type of issuer/counterpart Governments | 5,142 | 20,509 |
AA/AAA [member] | Maturity within 3 months [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Type of issuer/counterpart Governments | 915 | 5,743 |
AA/AAA [member] | Maturity between 3 and 12 months [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Type of issuer/counterpart Governments | 3,950 | 2,906 |
AA/AAA [member] | Maturity less than five years [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Type of issuer/counterpart Governments | 277 | 11,860 |
AA/AAA [member] | 2026 and later [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Type of issuer/counterpart Governments | 0 | 0 |
A2/P2 [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Corporates | 1,283 | 4,226 |
A2/P2 [member] | Maturity within 3 months [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Corporates | 1,283 | 4,226 |
A2/P2 [member] | Maturity between 3 and 12 months [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Corporates | 0 | 0 |
A2/P2 [member] | Maturity less than five years [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Corporates | 0 | 0 |
A2/P2 [member] | 2026 and later [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Corporates | 0 | 0 |
AAA [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Mortgage institutes | 10,562 | 27,753 |
AAA [member] | Maturity within 3 months [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Mortgage institutes | 0 | 0 |
AAA [member] | Maturity between 3 and 12 months [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Mortgage institutes | 1,682 | 5,749 |
AAA [member] | Maturity less than five years [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Mortgage institutes | 8,880 | 21,700 |
AAA [member] | 2026 and later [member] | ||
Disclosure Of Cash And Cash Equivalents And Interest Bearing Securities [Line Items] | ||
Mortgage institutes | kr 0 | kr 304 |
Financial Risk Management - S_9
Financial Risk Management - Summary of Funding Programs (Detail) - 12 months ended Dec. 31, 2022 kr in Millions, $ in Millions | USD ($) | SEK (kr) |
Euro Medium Term Note Program [member] | ||
Disclosure Of Funding Programs [Line Items] | ||
Amount | $ 5,000 | |
Utilized | 2,218 | |
Unutilized | 2,782 | |
SEC Registered Program [member] | ||
Disclosure Of Funding Programs [Line Items] | ||
Amount | 0 | |
Utilized | 0 | |
Unutilized | $ 0 | |
Commercial Paper Program [Member] | ||
Disclosure Of Funding Programs [Line Items] | ||
Amount | kr | kr 10,000 | |
Utilized | kr | 0 | |
Unutilized | kr | kr 10,000 |
Financial Risk Management - _10
Financial Risk Management - Summary of Committed Credit Facilities (Detail) - Multi-currency revolving credit facility [member] $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Disclosure Of Line Of Credit Facility [Line Items] | |
Amount | $ 2,000 |
Utilized | 0 |
Unutilized | $ 2,000 |
Financial Risk Management - _11
Financial Risk Management - Summary of Financial Instruments (Detail) - SEK (kr) kr in Billions | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through profit or loss | kr 90.2 | kr 120.6 | |
Assets at amortized cost | 3.9 | 4.8 | |
Financial liabilities at FVTPL | (32.2) | (32.2) | |
Liabilities at amortized cost | (41.7) | (36.1) | |
Customer finance [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through profit or loss | 5.4 | 3.3 | |
Customer finance [member] | Level 3 [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through profit or loss | 5.4 | 3.3 | |
Interest bearing liabilities [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through profit or loss | 17.5 | 43.3 | |
Interest bearing liabilities [member] | Level 1 [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through profit or loss | 17.5 | 43.3 | |
Cash equivalents [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through profit or loss | [1] | 15.7 | 26 |
Assets at amortized cost | [1] | 2.9 | 4 |
Cash equivalents [member] | Level 2 [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through profit or loss | [1] | 15.7 | 26 |
Other Financial Asset | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through profit or loss | 2.1 | 2.3 | |
Assets at amortized cost | 0.6 | 0.5 | |
Other Financial Asset | Level 1 [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through profit or loss | 0.1 | 0.6 | |
Other Financial Asset | Level 3 [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through profit or loss | 2 | 1.7 | |
Trade receivables [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through OCI | 48.4 | 45.4 | |
Trade receivables [member] | Level 3 [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through OCI | 48.4 | 45.4 | |
Interest bearing securities [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at amortized cost | 0.4 | 0.3 | |
Parent Company borrowings [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Financial liabilities at designated FVTPL | (29.6) | (31.4) | |
Parent Company borrowings [member] | Level 1 [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Financial liabilities at designated FVTPL | (16.7) | (19.5) | |
Parent Company borrowings [member] | Level 2 [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Financial liabilities at designated FVTPL | (12.9) | (11.9) | |
Other current liabilities [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Financial liabilities at FVTPL | (2.6) | (0.8) | |
Other current liabilities [member] | Level 2 [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Financial liabilities at FVTPL | (2.6) | (0.8) | |
Trade payables [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Liabilities at amortized cost | (38.4) | (35.7) | |
Borrowings [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Liabilities at amortized cost | (3.3) | (0.4) | |
Other Current Assets [Member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through profit or loss | 1.1 | 0.3 | |
Other Current Assets [Member] | Level 2 [member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Assets at fair value through profit or loss | kr 1.1 | kr 0.3 | |
[1]Total Cash and cash equivalent is SEK 38.3 (54.1) billion, of which SEK 18.6 (30.0) billion relating to Cash equivalents are presented in the table above. |
Financial Risk Management - _12
Financial Risk Management - Summary of Financial Instruments (Parenthetical) (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [abstract] | ||||
Cash and cash equivalents | kr 38,349 | kr 54,050 | kr 43,612 | kr 45,079 |
Cash equivalents | kr 18,603 | kr 30,036 |
Financial Risk Management - _13
Financial Risk Management - Summary of Reconciliation of Level 3 Fair Value Items Investment in Shares and Participations (Detail) kr in Millions | 12 Months Ended |
Dec. 31, 2022 SEK (kr) | |
Reconciliation of changes in fair value measurement, assets [abstract] | |
Opening balance | kr 305,614 |
Closing balance | 349,537 |
Level 3 [member] | Investment in shares and participations | |
Reconciliation of changes in fair value measurement, assets [abstract] | |
Opening balance | 1,674 |
Additions | 218 |
Disposals | (205) |
Gains or losses 1) | 291 |
Translation differences | 8 |
Closing balance | kr 1,986 |
Financial Risk Management - _14
Financial Risk Management - Summary of Reconciliation of Level 3 Fair Value Items Investment in Shares and Participations (Parenthetical) (Detail) kr in Millions | 12 Months Ended |
Dec. 31, 2022 SEK (kr) | |
Level 3 [member] | |
Disclosure of fair value measurement of assets [line items] | |
Gains (losses) recognised in profit or loss attributable to change in unrealised gains or losses for assets held at end of period, fair value measurement | kr 290 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about finance income expense [line items] | |||
Contractual interest on financial assets | kr 717 | kr 360 | kr 665 |
Financial income | 778 | 691 | 693 |
Net revaluation gains and losses on financial assets | (146) | 10 | (103) |
Net interest on pension liabilities | (361) | (262) | (262) |
Financial expenses | (1,930) | (1,674) | (2,116) |
Net revaluation gains and losses on financial liabilities | 379 | 67 | 9 |
Net foreign exchange gains/losses | (1,259) | (1,547) | 827 |
Financial income and expenses, net | (2,411) | (2,530) | (596) |
Financial instruments at fair value through profit or loss | (2,552) | (534) | (257) |
Financial liabilities designated at fair value through profit or loss | 2,847 | 404 | (121) |
Financial assets at amortized cost [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Financial income | 251 | 148 | 148 |
Contractual interest on financial liabilities [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Financial expenses | (972) | (525) | (873) |
Contractual interest on financial liabilities at amortized cost [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Financial expenses | (128) | (41) | (152) |
Lease interest expense [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Financial expenses | (464) | (426) | (490) |
Other financial expenses [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Financial income | 207 | 321 | 131 |
Financial expenses | kr (512) | kr (528) | kr (500) |
Financial Income and Expenses_2
Financial Income and Expenses - Summary of Financial Income and Expenses (Parenthetical) (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Detailed Information About Finance Income Expense [Abstract] | |||
Net loss from revaluation of customer finance receivables | kr 15 | kr 350 | kr 262 |
Net loss on revaluation of investments in shares and participations | kr 205 | ||
Net gain on revaluation of investments in shares and participations | kr 784 | kr 12 |
Financial Assets, Non-current -
Financial Assets, Non-current - Summary of Financial Assets, Non-current (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of financial assets [line items] | ||
Opening balance | kr 2,258 | |
Opening balance | 30,626 | |
Translation differences | 34 | kr 3 |
Closing balance | 2,074 | 2,258 |
Closing balance | 9,164 | 30,626 |
Other investment in shares and participations [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Opening balance | 2,258 | 1,519 |
Additions | 218 | 184 |
Disposals/repayments/deductions | (205) | (229) |
Amortization | 0 | 0 |
Change in value in funded pension plans | 0 | 0 |
Revaluation | (205) | 784 |
Reclassification | 0 | (1) |
Translation differences | 8 | 1 |
Closing balance | 2,074 | 2,258 |
Interest bearing securities, non-current [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Opening balance | 30,626 | 21,613 |
Additions | 13,583 | 30,305 |
Disposals/repayments/deductions | (29,523) | (13,547) |
Amortization | 0 | 0 |
Change in value in funded pension plans | 0 | 0 |
Revaluation | 262 | (75) |
Reclassification | (5,784) | (7,670) |
Translation differences | 0 | 0 |
Closing balance | 9,164 | 30,626 |
Other financial assets, non-current [member] | Financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Opening balance | 6,217 | 4,842 |
Additions | 1,249 | 1,054 |
Disposals/repayments/deductions | (481) | (959) |
Amortization | (288) | 0 |
Change in value in funded pension plans | 244 | 1,064 |
Revaluation | 85 | 99 |
Reclassification | (542) | (1) |
Translation differences | 355 | 118 |
Closing balance | kr 6,839 | kr 6,217 |
Interest-Bearing Liabilities -
Interest-Bearing Liabilities - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Interest Bearing Liabilities [Line Items] | ||
Interest-bearing liabilities | kr 32,930 | kr 31,831 |
European Investment Bank credit facility [member] | ||
Disclosure Of Interest Bearing Liabilities [Line Items] | ||
Weighted average interest rate of long term debt | 2.45% | 1.75% |
Interest-Bearing Liabilities _2
Interest-Bearing Liabilities - Summary of Interest-Bearing Liabilities (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Borrowings, current | ||
Current part of non-current borrowings | kr 2,865 | kr 9,459 |
Other borrowings, current | 3,119 | 131 |
Total borrowings, current | 5,984 | 9,590 |
Borrowings, non-current | ||
Notes and bond loans | 26,752 | 22,016 |
Other borrowings, non-current | 194 | 225 |
Total borrowings, non-current | 26,946 | 22,241 |
Total interest-bearing liabilities | kr 32,930 | kr 31,831 |
Interest-Bearing Liabilities _3
Interest-Bearing Liabilities - Reconciliation of Liabilities Arising from Financing Activities (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||
Opening balance | kr 31,831 | ||||
Cash flows | |||||
Proceeds from issuance of borrowings | 10,755 | kr 7,882 | kr 3,219 | ||
Repayment of borrowings | (16,029) | (5,791) | (9,031) | ||
Other financing activities | 352 | (2,183) | 1,570 | ||
Lease payments | (2,593) | [1] | (2,368) | [1] | (2,417) |
Non-cash changes | |||||
Closing balance | 32,930 | 31,831 | |||
Liabilities Arising From Financing Activities [Member] | |||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||
Opening balance | 41,134 | 39,460 | |||
Cash flows | |||||
Proceeds from issuance of borrowings | 10,755 | 7,882 | |||
Repayment of borrowings | (16,029) | (5,791) | |||
Other financing activities | 315 | (2,128) | |||
Lease payments | (2,593) | (2,368) | |||
Non-cash changes | |||||
Effect of foreign exchange movement | 4,762 | 2,621 | |||
Revaluation due to changes in credit risk | (1,030) | (31) | |||
Other changes in fair value | (2,888) | (415) | |||
Acquisition of new lease contracts | 1,986 | 2,009 | |||
Balances regarding acquired business | 6,876 | 0 | |||
Other non-cash movements | (1,054) | (105) | |||
Closing balance | kr 42,234 | kr 41,134 | kr 39,460 | ||
[1]Including advance payments. |
Interest-Bearing Liabilities _4
Interest-Bearing Liabilities - Reconciliation of Liabilities Arising from Financing Activities (Parenthetical) (Detail) kr in Billions | 12 Months Ended |
Dec. 31, 2022 SEK (kr) | |
Disclosure Of Borrowings [Line Items] | |
Convertible Bonds Capped Call Received | kr 0.6 |
Interest-Bearing Liabilities _5
Interest-Bearing Liabilities - Summary of Notes, Bonds, Bilateral Loans and Committed Credit (Detail) € in Millions, kr in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 SEK (kr) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 SEK (kr) | |
Disclosure Of Borrowings [Line Items] | ||||
Interest-bearing liabilities | kr 32,930 | kr 31,831 | ||
Notes and bond loans [Member] | ||||
Disclosure Of Borrowings [Line Items] | ||||
Interest-bearing liabilities | 19,811 | 22,685 | ||
Changes in fair value due to changes in credit risk 2022 | (771) | |||
Cumulative changes in fair value due to changes in credit risk 2022 | kr (425) | |||
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 | |||
Maturity date | May 15, 2022 | |||
Interest-bearing liabilities | kr 0 | 9,163 | ||
Changes in fair value due to changes in credit risk 2022 | (58) | |||
Cumulative changes in fair value due to changes in credit risk 2022 | kr 0 | |||
Notes and bond loans [Member] | Mar 1, 2024 [member] | ||||
Disclosure Of Borrowings [Line Items] | ||||
Nominal amount | € | € 500 | |||
Coupon | 1.875% | 1.875% | 1.875% | |
Currency | EUR | |||
Maturity date | Mar 1, 2024 | |||
Interest-bearing liabilities | kr 5,392 | 5,297 | ||
Changes in fair value due to changes in credit risk 2022 | (72) | |||
Cumulative changes in fair value due to changes in credit risk 2022 | kr 46 | |||
Notes and bond loans [Member] | Dec 22, 2025 [member] | ||||
Disclosure Of Borrowings [Line Items] | ||||
Nominal amount | $ | $ 150 | |||
Coupon | 2.741% | 2.741% | 2.741% | |
Currency | USD | |||
Maturity date | Dec 22, 2025 | |||
Interest-bearing liabilities | kr 1,422 | 1,393 | ||
Changes in fair value due to changes in credit risk 2022 | (50) | |||
Cumulative changes in fair value due to changes in credit risk 2022 | kr 30 | |||
Notes and bond loans [Member] | Dec 30, 2030 [member] | ||||
Disclosure Of Borrowings [Line Items] | ||||
Nominal amount | $ | $ 200 | |||
Coupon | 3.02% | 3.02% | 3.02% | |
Currency | USD | |||
Maturity date | Dec 30, 2030 | |||
Interest-bearing liabilities | kr 1,682 | 1,825 | ||
Changes in fair value due to changes in credit risk 2022 | (97) | |||
Cumulative changes in fair value due to changes in credit risk 2022 | kr 18 | |||
Notes and bond loans [Member] | May 26, 2029 [member] | ||||
Disclosure Of Borrowings [Line Items] | ||||
Nominal amount | € | € 500 | |||
Coupon | 1% | 1% | 1% | |
Currency | EUR | |||
Maturity date | May 26, 2029 | |||
Interest-bearing liabilities | kr 4,196 | 5,007 | ||
Changes in fair value due to changes in credit risk 2022 | (286) | |||
Cumulative changes in fair value due to changes in credit risk 2022 | kr (312) | |||
Notes and bond loans [Member] | Feb 8, 2027 | ||||
Disclosure Of Borrowings [Line Items] | ||||
Nominal amount | € | € 750 | |||
Coupon | 1.125% | 1.125% | 1.125% | |
Currency | EUR | |||
Maturity date | Feb 8, 2027 | |||
Interest-bearing liabilities | kr 7,119 | 0 | ||
Changes in fair value due to changes in credit risk 2022 | (208) | |||
Cumulative changes in fair value due to changes in credit risk 2022 | (207) | |||
Bilateral loans [Member] | ||||
Disclosure Of Borrowings [Line Items] | ||||
Interest-bearing liabilities | 9,753 | 8,733 | ||
Changes in fair value due to changes in credit risk 2022 | (259) | |||
Cumulative changes in fair value due to changes in credit risk 2022 | kr (174) | |||
Bilateral loans [Member] | June 15, 2023 [member] | ||||
Disclosure Of Borrowings [Line Items] | ||||
Nominal amount | $ | $ 220 | |||
Currency | USD | |||
Maturity date | Jun 15, 2023 | |||
Interest-bearing liabilities | kr 2,292 | 2,033 | ||
Changes in fair value due to changes in credit risk 2022 | (38) | |||
Cumulative changes in fair value due to changes in credit risk 2022 | kr 6 | |||
Bilateral loans [Member] | July 31, 2024 [member] | ||||
Disclosure Of Borrowings [Line Items] | ||||
Nominal amount | $ | 281 | |||
Currency | USD | |||
Maturity date | July 31, 2024 | |||
Interest-bearing liabilities | kr 2,925 | 2,608 | ||
Changes in fair value due to changes in credit risk 2022 | (58) | |||
Cumulative changes in fair value due to changes in credit risk 2022 | kr 4 | |||
Bilateral loans [Member] | Dec 18, 2025 [Member] | ||||
Disclosure Of Borrowings [Line Items] | ||||
Nominal amount | $ | 150 | |||
Currency | USD | |||
Maturity date | Dec 18, 2025 | |||
Interest-bearing liabilities | kr 1,555 | 1,400 | ||
Changes in fair value due to changes in credit risk 2022 | (45) | |||
Cumulative changes in fair value due to changes in credit risk 2022 | kr (1) | |||
Bilateral loans [Member] | Jun 21, 2028 [member] | ||||
Disclosure Of Borrowings [Line Items] | ||||
Nominal amount | $ | $ 305 | |||
Currency | USD | |||
Maturity date | Jun 21, 2028 | |||
Interest-bearing liabilities | kr 2,981 | kr 2,692 | ||
Changes in fair value due to changes in credit risk 2022 | (118) | |||
Cumulative changes in fair value due to changes in credit risk 2022 | kr (183) |
Post-Employment Benefits - Addi
Post-Employment Benefits - Additional Information (Detail) - SEK (kr) kr in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | |
Disclosure Of Employee Benefits [Line Items] | |||||
Percentage Alecta's of collective funding ratio | 172% | 172% | 172% | ||
Percentage of company's share of Alecta's saving premiums | 0.30% | 0.30% | |||
Percentage of maximum pension liability relation to PRI pensionsgaranti | 2% | ||||
Amount of pledged business mortgage | kr 6,100 | kr 6,100 | |||
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 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 6.1 billion to PRI Pensionsgaranti at year end. PRI continuously measures the Company credit risk levels according to the credit insurance terms and conditions. The Company has agreed to pledge additional business assets worth SEK 750 million in the first quarter of 2023 as additional credit risk guarantee. | ||||
Settlements | kr 4 | kr 12 | |||
Remeasurement loss | (10,542) | (3,512) | |||
Present value of defined benefit obligation [member] | |||||
Disclosure Of Employee Benefits [Line Items] | |||||
Net actuarial gains losses net defined benefit liability asset | 29,000 | ||||
Settlements | 10,759 | 12 | |||
Increase (decrease) in net defined benefit liability (asset) | 8,700 | ||||
Remeasurement loss | (24,677) | 14 | |||
Plan assets [member] | |||||
Disclosure Of Employee Benefits [Line Items] | |||||
Settlements | (10,755) | 0 | |||
Remeasurement loss | kr 14,135 | kr (3,526) | |||
Forecast [Member] | |||||
Disclosure Of Employee Benefits [Line Items] | |||||
Additional businees assets to be pledged | kr 750 | ||||
Alecta [member] | |||||
Disclosure Of Employee Benefits [Line Items] | |||||
Percentage of total share of active members in Alecta | 2.10% | ||||
Expected contribution to Alectas plan | kr 100 | ||||
Sweden [member] | |||||
Disclosure Of Employee Benefits [Line Items] | |||||
Discount rate | 2% | 2% | 0.60% | ||
Discount rates based upon Swedish covered bonds | 3.90% | 3.90% | 2.10% | ||
Decrease in defined benefit obligation resulting from discount rates based upon Swedish covered bonds | kr 16,500 | kr 16,500 | kr 18,800 | ||
COUNTRYG B [Member] | Present value of defined benefit obligation [member] | |||||
Disclosure Of Employee Benefits [Line Items] | |||||
Annual buy-in contract bought-out | kr 2,300 | ||||
COUNTRYU S [Member] | Present value of defined benefit obligation [member] | |||||
Disclosure Of Employee Benefits [Line Items] | |||||
Settlements | kr 11,000 | ||||
Bottom of range [Member] | |||||
Disclosure Of Employee Benefits [Line Items] | |||||
Percentage Alecta's of collective funding ratio ranges | 125% | ||||
Top of Range [member] | |||||
Disclosure Of Employee Benefits [Line Items] | |||||
Percentage Alecta's of collective funding ratio ranges | 175% | ||||
Ericsson Pensionsstiftelse [member] | |||||
Disclosure Of Employee Benefits [Line Items] | |||||
Percentage of defined benefit plans | 57% | 57% | 51% | ||
Percentage of defined benefit plans | 100% | 100% | |||
Other Plans [member] | |||||
Disclosure Of Employee Benefits [Line Items] | |||||
Net liability recognized | kr 0 | kr 0 |
Post-Employment Benefits - Summ
Post-Employment Benefits - Summary of Amount Recognized in the Consolidated Balance Sheet (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of defined benefit plans [line items] | ||
Defined benefit obligation (DBO) | kr 83,691 | kr 113,543 |
Fair value of plan assets | 60,480 | 81,355 |
Deficit/surplus (+/–) | 23,211 | 32,188 |
Plans with net surplus, excluding asset ceiling | 4,150 | 3,862 |
Provision for post-employment benefits | 27,361 | 36,050 |
Sweden [member] | ||
Disclosure of defined benefit plans [line items] | ||
Defined benefit obligation (DBO) | 50,441 | 58,754 |
Fair value of plan assets | 28,521 | 29,876 |
Deficit/surplus (+/–) | 21,920 | 28,878 |
Plans with net surplus, excluding asset ceiling | 0 | 0 |
Provision for post-employment benefits | 21,920 | 28,878 |
US [member] | ||
Disclosure of defined benefit plans [line items] | ||
Defined benefit obligation (DBO) | 5,365 | 18,463 |
Fair value of plan assets | 5,111 | 18,254 |
Deficit/surplus (+/–) | 254 | 209 |
Plans with net surplus, excluding asset ceiling | 298 | 450 |
Provision for post-employment benefits | 552 | 659 |
United Kingdom [member] | ||
Disclosure of defined benefit plans [line items] | ||
Defined benefit obligation (DBO) | 9,866 | 17,071 |
Fair value of plan assets | 11,999 | 19,427 |
Deficit/surplus (+/–) | (2,133) | (2,356) |
Plans with net surplus, excluding asset ceiling | 2,137 | 2,802 |
Provision for post-employment benefits | 4 | 446 |
Other Countries [member] | ||
Disclosure of defined benefit plans [line items] | ||
Defined benefit obligation (DBO) | 18,019 | 19,255 |
Fair value of plan assets | 14,849 | 13,798 |
Deficit/surplus (+/–) | 3,170 | 5,457 |
Plans with net surplus, excluding asset ceiling | 1,715 | 610 |
Provision for post-employment benefits | kr 4,885 | kr 6,067 |
Post-Employment Benefits - Su_2
Post-Employment Benefits - Summary of Amount Recognized in the Consolidated Balance Sheet (Parenthetical) (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of defined benefit plans [abstract] | ||
Effect of asset ceiling | kr 584 | kr 540 |
Post-Employment Benefits - Su_3
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Defined Benefit Plans Expense Recognized In Income Statement [line items] | |||
Pension cost for defined contribution plans | kr 3,071 | kr 2,881 | kr 2,178 |
Pension cost for defined benefit plans | 3,486 | 2,942 | 2,785 |
Total | kr 6,557 | kr 5,823 | kr 4,963 |
Total pension cost expressed as a percentage of wages and salaries | 8.90% | 9.30% | 8.10% |
Sweden [member] | |||
Disclosure of Defined Benefit Plans Expense Recognized In Income Statement [line items] | |||
Pension cost for defined contribution plans | kr 1,192 | kr 1,199 | kr 963 |
Pension cost for defined benefit plans | 2,144 | 1,920 | 1,783 |
Total | 3,336 | 3,119 | 2,746 |
US [member] | |||
Disclosure of Defined Benefit Plans Expense Recognized In Income Statement [line items] | |||
Pension cost for defined contribution plans | 542 | 460 | 415 |
Pension cost for defined benefit plans | 160 | 97 | 13 |
Total | 702 | 557 | 428 |
United Kingdom [member] | |||
Disclosure of Defined Benefit Plans Expense Recognized In Income Statement [line items] | |||
Pension cost for defined contribution plans | 128 | 138 | 136 |
Pension cost for defined benefit plans | (22) | (6) | (4) |
Total | 106 | 132 | 132 |
Other Countries [member] | |||
Disclosure of Defined Benefit Plans Expense Recognized In Income Statement [line items] | |||
Pension cost for defined contribution plans | 1,209 | 1,084 | 664 |
Pension cost for defined benefit plans | 1,204 | 931 | 993 |
Total | kr 2,413 | kr 2,015 | kr 1,657 |
Post-Employment Benefits - Su_4
Post-Employment Benefits - Summary of Pension Costs for Defined Contribution Plans and Defined Benefit Plans (Parenthetical) (Detail) - United Kingdom [member] kr in Millions | 12 Months Ended |
Dec. 31, 2022 SEK (kr) | |
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [Line Items] | |
Defined benefit plans net interest income | kr 355 |
Defined benefit plans interest cost | kr 312 |
Post-Employment Benefits - Su_5
Post-Employment Benefits - Summary of Change in the Net Defined Benefit Obligation (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Opening balance | kr 32,188 | kr 34,577 |
Included in the income statement | ||
Current service cost | 2,772 | 2,644 |
Past service cost and gains and losses on settlements | 311 | 1 |
Interest cost/income (+/–) | 241 | 223 |
Taxes and administrative expenses | 62 | 41 |
Other | 44 | (7) |
Components of defined benefit cost recognized | 3,430 | 2,902 |
Remeasurements | ||
Return on plan assets excluding amounts in interest expense/income | 14,135 | (3,526) |
Actuarial gains/losses (–/+) arising from changes in demographic assumptions | 1,118 | (49) |
Actuarial gains/losses (–/+) arising from changes in financial assumptions | (29,031) | (287) |
Experience-based gains/losses (–/+) | 3,236 | 350 |
Total remeasurements | (10,542) | (3,512) |
Translation difference | 84 | 187 |
Contributions and payments from: | ||
Employers | (1,954) | (1,939) |
Plan participants | 9 | 15 |
Benefit payments | 0 | |
Settlements | (4) | (12) |
Business combinations and divestments | 0 | (30) |
Closing balance | 23,211 | 32,188 |
Present value of defined benefit obligation [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Opening balance | 113,543 | 108,188 |
Included in the income statement | ||
Current service cost | 2,772 | 2,644 |
Past service cost and gains and losses on settlements | 311 | 1 |
Interest cost/income (+/–) | 1,716 | 1,463 |
Taxes and administrative expenses | 0 | |
Other | 43 | 10 |
Components of defined benefit cost recognized | 4,842 | 4,118 |
Remeasurements | ||
Return on plan assets excluding amounts in interest expense/income | 0 | |
Actuarial gains/losses (–/+) arising from changes in demographic assumptions | 1,118 | (49) |
Actuarial gains/losses (–/+) arising from changes in financial assumptions | (29,031) | (287) |
Experience-based gains/losses (–/+) | 3,236 | 350 |
Total remeasurements | (24,677) | 14 |
Translation difference | 3,381 | 3,951 |
Contributions and payments from: | ||
Employers | (1,302) | (1,260) |
Plan participants | 334 | 285 |
Benefit payments | (1,806) | (1,825) |
Settlements | (10,759) | (12) |
Other | 135 | |
Business combinations and divestments | 0 | 84 |
Closing balance | 83,691 | 113,543 |
Plan assets [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Opening balance | (81,355) | (73,611) |
Included in the income statement | ||
Current service cost | 0 | |
Past service cost and gains and losses on settlements | 0 | |
Interest cost/income (+/–) | (1,475) | (1,240) |
Taxes and administrative expenses | 62 | 41 |
Other | 1 | (17) |
Components of defined benefit cost recognized | (1,412) | (1,216) |
Remeasurements | ||
Return on plan assets excluding amounts in interest expense/income | 14,135 | (3,526) |
Actuarial gains/losses (–/+) arising from changes in demographic assumptions | 0 | |
Actuarial gains/losses (–/+) arising from changes in financial assumptions | 0 | |
Experience-based gains/losses (–/+) | 0 | |
Total remeasurements | 14,135 | (3,526) |
Translation difference | (3,297) | (3,764) |
Contributions and payments from: | ||
Employers | (652) | (679) |
Plan participants | (325) | (270) |
Benefit payments | 1,806 | 1,825 |
Settlements | 10,755 | 0 |
Other | (135) | |
Business combinations and divestments | 0 | (114) |
Closing balance | kr (60,480) | kr (81,355) |
Post-Employment Benefits - Su_6
Post-Employment Benefits - Summary of Change in the Net Defined Benefit Obligation (Parenthetical) (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Weighted average duration of DBO | 18 years 3 months 18 days | 20 years 4 months 24 days |
Asset ceiling excluded from defined benefit cost recognized in income statement | kr 55 | kr 40 |
2023 [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Expected contributions to plan | kr 2,200 |
Post-Employment Benefits - Su_7
Post-Employment Benefits - Summary of Present Value of the Defined Benefit Obligation (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | kr 83,691 | kr 113,543 |
Of which partially or fully funded [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | 79,536 | 109,204 |
Of which unfunded [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | 4,155 | 4,339 |
Sweden [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | 50,441 | 58,754 |
Sweden [member] | Of which partially or fully funded [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | 50,441 | 58,754 |
Sweden [member] | Of which unfunded [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | 0 | |
US [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | 5,365 | 18,463 |
US [member] | Of which partially or fully funded [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | 4,812 | 17,805 |
US [member] | Of which unfunded [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | 553 | 658 |
United Kingdom [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | 9,866 | 17,071 |
United Kingdom [member] | Of which partially or fully funded [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | 9,866 | 17,071 |
United Kingdom [member] | Of which unfunded [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | 0 | |
Other Countries [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | 18,019 | 19,255 |
Other Countries [member] | Of which partially or fully funded [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | 14,417 | 15,574 |
Other Countries [member] | Of which unfunded [member] | ||
Present Value Of Defined Benefit Obligation [Line Items] | ||
Defined benefit obligation (DBO) | kr 3,602 | kr 3,681 |
Post-Employment Benefits - Su_8
Post-Employment Benefits - Summary of Asset Allocation by Asset Type and Geography (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | kr 1,872 | kr 3,114 |
Equity securities | 11,126 | 14,752 |
Debt securities | 32,117 | 50,948 |
Real estate | 6,379 | 5,946 |
Investment funds | 4,701 | 3,513 |
Assets held by insurance company | 3,589 | 1,597 |
Other | 696 | 1,485 |
Fair value of plan assets | kr 60,480 | kr 81,355 |
Investment funds [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 74% | 64% |
Cash and cash equivalents [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 6% | 33% |
Equity securities [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 50% | 58% |
Debt securities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 28% | 44% |
Real estate [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 100% | 100% |
Assets held by insurance company [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 100% | 100% |
Other [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 15% | 69% |
Owner occupied property measured using investment property fair value model [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 0% | |
Securities issued [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 0% | |
Sweden [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | kr 1,151 | kr 1,100 |
Equity securities | 6,803 | 7,619 |
Debt securities | 14,114 | 14,427 |
Real estate | 5,577 | 5,157 |
Investment funds | 917 | 1,782 |
Assets held by insurance company | 0 | |
Other | (41) | (209) |
Fair value of plan assets | kr 28,521 | 29,876 |
Sweden [member] | Owner occupied property measured using investment property fair value model [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 0% | |
Sweden [member] | Securities issued [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 0% | |
US [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | kr 184 | 500 |
Equity securities | 419 | 659 |
Debt securities | 3,646 | 15,817 |
Real estate | 0 | |
Investment funds | 789 | 1,247 |
Assets held by insurance company | 0 | |
Other | 73 | 31 |
Fair value of plan assets | kr 5,111 | 18,254 |
US [member] | Owner occupied property measured using investment property fair value model [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 0% | |
US [member] | Securities issued [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 0% | |
United Kingdom [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | kr 449 | 1,468 |
Equity securities | 1,113 | 3,823 |
Debt securities | 5,818 | 12,705 |
Real estate | 199 | 195 |
Investment funds | 2,417 | 0 |
Assets held by insurance company | 1,872 | |
Other | 131 | 1,236 |
Fair value of plan assets | kr 11,999 | 19,427 |
United Kingdom [member] | Owner occupied property measured using investment property fair value model [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 0% | |
United Kingdom [member] | Securities issued [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 0% | |
Other Countries [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | kr 88 | 46 |
Equity securities | 2,791 | 2,651 |
Debt securities | 8,539 | 7,999 |
Real estate | 603 | 594 |
Investment funds | 578 | 484 |
Assets held by insurance company | 1,717 | 1,597 |
Other | 533 | 427 |
Fair value of plan assets | kr 14,849 | kr 13,798 |
Other Countries [member] | Owner occupied property measured using investment property fair value model [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 0% | |
Other Countries [member] | Securities issued [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 0% |
Post-Employment Benefits - Su_9
Post-Employment Benefits - Summary of Financial and Demographic Actuarial Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Sweden [member] | ||
Financial assumptions | ||
Discount rate | 2% | 0.60% |
Inflation rate | 2.30% | 2% |
Salary increase rate | 2.80% | 2.80% |
Demographic assumptions | ||
Life expectancy after age 65 in years | 23 years | 23 years |
US [member] | ||
Financial assumptions | ||
Discount rate | 5.40% | 2.70% |
Inflation rate | 2.50% | 2.50% |
Salary increase rate | 3% | 3.50% |
Demographic assumptions | ||
Life expectancy after age 65 in years | 22 years | 23 years |
United Kingdom [member] | ||
Financial assumptions | ||
Discount rate | 4.90% | 1.80% |
Inflation rate | 3.10% | 3.20% |
Salary increase rate | 0% | |
Demographic assumptions | ||
Life expectancy after age 65 in years | 23 years | 23 years |
Post-Employment Benefits - S_10
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, 2022 | Dec. 31, 2021 | |
Disclosure Of Remeasurement Of Other Comprehensive Income Loss Related To Post Employment Benefits [Abstract] | ||
Actuarial gains and losses (+/–) | kr 8,943 | kr 3,255 |
The effect of asset ceiling | 127 | 25 |
Swedish special payroll taxes | 1,599 | 257 |
Total | kr 10,669 | kr 3,537 |
Post-Employment Benefits - S_11
Post-Employment Benefits - Summary of Sensitivity Analysis of Significant Actuarial Assumptions (Detail) - Present value of defined benefit obligation [member] kr in Millions | Dec. 31, 2022 SEK (kr) |
Discount rate | Sweden [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Discount rate -0.5% | kr 5.9 |
Discount rate +0.5% | (5.2) |
Discount rate | US [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Discount rate -0.5% | 0.3 |
Discount rate +0.5% | (0.2) |
Discount rate | United Kingdom [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Discount rate -0.5% | 0.9 |
Discount rate +0.5% | (0.8) |
Actuarial assumption of expected rates of inflation [member] | Sweden [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Discount rate -0.5% | (4.1) |
Discount rate +0.5% | 7 |
Actuarial assumption of expected rates of inflation [member] | US [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Discount rate -0.5% | 0 |
Discount rate +0.5% | 0 |
Actuarial assumption of expected rates of inflation [member] | United Kingdom [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Discount rate -0.5% | (0.6) |
Discount rate +0.5% | 0.6 |
Actuarial assumption of expected rates of salary increases [member] | Sweden [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Discount rate -0.5% | (1.8) |
Discount rate +0.5% | 1.9 |
Actuarial assumption of expected rates of salary increases [member] | US [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Discount rate -0.5% | 0 |
Discount rate +0.5% | 0 |
Actuarial assumption of expected rates of salary increases [member] | United Kingdom [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Discount rate -0.5% | 0 |
Discount rate +0.5% | 0 |
Longevity | Sweden [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Discount rate -0.5% | (2.4) |
Discount rate +0.5% | 2.4 |
Longevity | US [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Discount rate -0.5% | (0.1) |
Discount rate +0.5% | 0.1 |
Longevity | United Kingdom [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Discount rate -0.5% | (0.3) |
Discount rate +0.5% | kr 0.3 |
Information Regarding Members o
Information Regarding Members of the Board of Directors and Group Management - Summary of Remuneration to Members of the Board of Directors (Detail) - Board member [member] - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | kr 14,521,000 | |
Value at grant date of synthetic shares allocated | kr 4,949,682 | |
Number of previously allocated synthetic shares outstanding | 276,081 | |
Net change in value of synthetic shares | kr (11,608,861) | |
Committee fees | 2,949,500 | |
Total fees paid in cash | 12,245,500 | |
Total remuneration | kr 5,586,321 | kr 16,097,264 |
Synthetic shares [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Number of synthetic shares | 60,018 | |
Ronnie Leten [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | kr 4,375,000 | |
Number of previously allocated synthetic shares outstanding | 94,954 | |
Net change in value of synthetic shares | kr (2,501,774) | |
Committee fees | 385,000 | |
Total fees paid in cash | 4,760,000 | |
Total remuneration | 2,258,226 | 4,487,599 |
Helena Stjernholm [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | 1,100,000 | |
Value at grant date of synthetic shares allocated | kr 549,992 | |
Number of previously allocated synthetic shares outstanding | 23,547 | |
Net change in value of synthetic shares | kr (1,182,457) | |
Committee fees | 180,000 | |
Total fees paid in cash | 730,000 | |
Total remuneration | kr 97,535 | 1,441,705 |
Helena Stjernholm [member] | Synthetic shares [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Number of synthetic shares | 6,669 | |
Portion of Board fee | 50% | |
Jacob Wallenberg [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | kr 1,100,000 | |
Value at grant date of synthetic shares allocated | kr 824,947 | |
Number of previously allocated synthetic shares outstanding | 35,323 | |
Net change in value of synthetic shares | kr (1,773,786) | |
Committee fees | 180,000 | |
Total fees paid in cash | 455,000 | |
Total remuneration | kr (493,839) | 1,375,710 |
Jacob Wallenberg [member] | Synthetic shares [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Number of synthetic shares | 10,003 | |
Portion of Board fee | 75% | |
Jon Fredrik Baksaas [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | kr 1,100,000 | |
Value at grant date of synthetic shares allocated | kr 549,992 | |
Number of previously allocated synthetic shares outstanding | 30,007 | |
Net change in value of synthetic shares | kr (1,519,416) | |
Committee fees | 205,000 | |
Total fees paid in cash | 755,000 | |
Total remuneration | kr (214,424) | 1,250,514 |
Jon Fredrik Baksaas [member] | Synthetic shares [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Number of synthetic shares | 6,669 | |
Portion of Board fee | 50% | |
Jan Carlson [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | kr 1,100,000 | |
Value at grant date of synthetic shares allocated | kr 824,947 | |
Number of previously allocated synthetic shares outstanding | 35,323 | |
Net change in value of synthetic shares | kr (1,773,786) | |
Committee fees | 455,000 | |
Total fees paid in cash | 730,000 | |
Total remuneration | kr (218,839) | 1,512,156 |
Jan Carlson [member] | Synthetic shares [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Number of synthetic shares | 10,003 | |
Portion of Board fee | 75% | |
Nora Denzel [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | kr 1,100,000 | |
Value at grant date of synthetic shares allocated | kr 274,955 | |
Number of previously allocated synthetic shares outstanding | 11,772 | |
Net change in value of synthetic shares | kr (591,164) | |
Committee fees | 180,000 | |
Total fees paid in cash | 1,005,000 | |
Total remuneration | kr 688,791 | 1,240,674 |
Nora Denzel [member] | Synthetic shares [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Number of synthetic shares | 3,334 | |
Portion of Board fee | 25% | |
Borje Ekholm | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Total remuneration | 150,241 | |
Carolina Dybeck Happe [Member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | kr 1,100,000 | |
Value at grant date of synthetic shares allocated | 824,947 | |
Net change in value of synthetic shares | (215,765) | |
Total remuneration | kr 609,182 | |
Carolina Dybeck Happe [Member] | Synthetic shares [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Number of synthetic shares | 10,003 | |
Portion of Board fee | 75% | |
Eric A. Elzvik [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | kr 1,100,000 | |
Value at grant date of synthetic shares allocated | kr 274,955 | |
Number of previously allocated synthetic shares outstanding | 11,772 | |
Net change in value of synthetic shares | kr (591,164) | |
Committee fees | 475,000 | |
Total fees paid in cash | 1,300,000 | |
Total remuneration | kr 983,791 | 1,480,674 |
Eric A. Elzvik [member] | Synthetic shares [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Number of synthetic shares | 3,334 | |
Portion of Board fee | 25% | |
Kurt Jofs [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | kr 1,100,000 | |
Value at grant date of synthetic shares allocated | kr 274,955 | |
Number of previously allocated synthetic shares outstanding | 19,378 | |
Net change in value of synthetic shares | kr (459,865) | |
Committee fees | 635,000 | |
Total fees paid in cash | 1,460,000 | |
Total remuneration | kr 1,275,090 | 1,598,923 |
Kurt Jofs [member] | Synthetic shares [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Number of synthetic shares | 3,334 | |
Portion of Board fee | 25% | |
Kristin S. Rinne [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | kr 1,100,000 | |
Value at grant date of synthetic shares allocated | kr 549,992 | |
Number of previously allocated synthetic shares outstanding | 14,005 | |
Net change in value of synthetic shares | kr (999,684) | |
Committee fees | 205,000 | |
Total fees paid in cash | 755,000 | |
Total remuneration | kr 305,308 | 1,371,568 |
Kristin S. Rinne [member] | Synthetic shares [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Number of synthetic shares | 6,669 | |
Portion of Board fee | 50% | |
Torbjörn Nyman [member] | Employee representatives [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | kr 43,500 | |
Committee fees | 22,500 | |
Total fees paid in cash | 66,000 | |
Total remuneration | 66,000 | 43,500 |
Anders Ripa [member] | Employee representatives [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | 43,500 | |
Committee fees | 12,000 | |
Total fees paid in cash | 55,500 | |
Total remuneration | 55,500 | 27,000 |
Kjell-Åke Soting [member] | Employee representatives [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | 43,500 | |
Committee fees | 15,000 | |
Total fees paid in cash | 58,500 | |
Total remuneration | 58,500 | 39,000 |
Annika Salomonsson [Member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | 28,500 | |
Total fees paid in cash | 28,500 | |
Total remuneration | 28,500 | |
Ulf Rosberg [Member] | Deputy Employee Representatives | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | 43,500 | |
Value at grant date of synthetic shares allocated | 0 | |
Total fees paid in cash | 43,500 | |
Total remuneration | 43,500 | 22,500 |
Loredana Roslund [member] | Deputy Employee Representatives | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | 43,500 | |
Value at grant date of synthetic shares allocated | 0 | |
Total fees paid in cash | 43,500 | |
Total remuneration | 43,500 | 27,000 |
Roger Svensson [member] | Employee representatives [member] | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | 0 | |
Value at grant date of synthetic shares allocated | 0 | |
Total remuneration | 7,500 | |
Per Holmberg [member] | Deputy Employee Representatives | ||
Disclosure of Information About Board Management and Employees [line items] | ||
Board fees | 0 | |
Value at grant date of synthetic shares allocated | kr 0 | |
Total remuneration | kr 21,000 |
Information Regarding Members_2
Information Regarding Members of the Board of Directors and Group Management - Summary of Remuneration to Members of the Board of Directors (Parenthetical) (Detail) - SEK (kr) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Information About Board Management And Employees [Abstract] | |||||
Share price used to calculate value of synthetic shares | kr 60.9 | ||||
Dividend compensation per share included in value of synthetic shares | kr 2.5 | kr 2 | kr 1.5 | kr 1 | |
Social security charges | kr 1,102,787 |
Information Regarding Members_3
Information Regarding Members of the Board of Directors and Group Management - Additional Information (Detail) - SEK (kr) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Information About Board Management and Employees [line items] | |||
Board fee description | The Annual General Meeting 2022 resolved that non-employee Directors 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 7,865,764 | ||
Number of shares outstanding | 3,334,151,735 | 3,334,151,735 | |
Accounted debt | kr 21,951,066 | ||
Other Members of Executive Team [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Commitments for defined benefit based pensions including disability and survivor's pension | 37,600,000 | kr 47,400,000 | |
Commitments related to ITP and early retirement | 30,000,000 | 32,900,000 | |
Commitment to disability and survivors pensions | kr 7,700,000 | kr 14,500,000 | |
Class B shares [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Weighted average market price | kr 82.47 | kr 113.09 | |
Number of shares outstanding | 3,072,395,752 | 3,072,395,752 | |
Synthetic shares [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Number of shares outstanding | 336,099 | ||
Board and committee meeting attendance fee [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | kr 1,500 | ||
Chairman [member] | Board fees [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | 4,375,000 | ||
Chairman [member] | Committee fees [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | 205,000 | ||
Chairman [member] | Member of remuneration committee [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | 180,000 | ||
Other directors [member] | Board fees [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | 1,100,000 | ||
Chairman of audit committee [member] | Board fees [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | 475,000 | ||
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 | 275,000 | ||
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 | 205,000 | ||
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 180,000 |
Information Regarding Members_4
Information Regarding Members of the Board of Directors and Group Management - Summary of Remuneration Costs for the President and CEO and Other Members of Executive Team (ET) (Detail) - SEK (kr) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Classes Of Employee Benefits Expense [line items] | |||
Salary | kr 152,100,147 | kr 128,252,290 | kr 115,790,992 |
Termination benefits | 25,503,967 | ||
Annual variable remuneration provision earned for the year | 90,908,181 | 52,507,185 | 37,992,529 |
Long-term variable compensation provision | 84,813,164 | 91,962,483 | 82,348,162 |
Pension costs | 52,104,709 | 50,455,851 | 48,799,296 |
Other benefits | 20,302,786 | 11,755,319 | 15,130,689 |
Social charges and taxes | 82,824,511 | 80,103,179 | 73,882,014 |
Total | 508,557,465 | 415,036,307 | 373,943,682 |
The President and CEO [member] | |||
Classes Of Employee Benefits Expense [line items] | |||
Salary | 19,154,852 | 18,208,859 | 17,727,726 |
Long-term variable compensation provision | 41,125,015 | 43,701,650 | 41,110,656 |
Pension costs | 9,856,121 | 9,569,049 | 9,113,376 |
Other benefits | 135,743 | 555,688 | 770,276 |
Social charges and taxes | 22,079,378 | 22,633,474 | 21,592,463 |
Total | 92,351,109 | 94,668,720 | 90,314,497 |
Other Members of Executive Team [member] | |||
Classes Of Employee Benefits Expense [line items] | |||
Salary | 132,945,295 | 110,043,431 | 98,063,266 |
Termination benefits | 25,503,967 | ||
Annual variable remuneration provision earned for the year | 90,908,181 | 52,507,185 | 37,992,529 |
Long-term variable compensation provision | 43,688,149 | 48,260,833 | 41,237,506 |
Pension costs | 42,248,588 | 40,886,802 | 39,685,920 |
Other benefits | 20,167,043 | 11,199,631 | 14,360,413 |
Social charges and taxes | 60,745,133 | 57,469,705 | 52,289,551 |
Total | kr 416,206,356 | kr 320,367,587 | kr 283,629,185 |
Share Based Compensation - Addi
Share Based Compensation - Additional Information (Detail) kr / shares in Units, kr in Millions | 12 Months Ended | ||||||
Jan. 01, 2019 Employee | Dec. 31, 2023 shares | Dec. 31, 2022 SEK (kr) Employee Country kr / shares | Dec. 31, 2021 SEK (kr) Employee kr / shares | Dec. 31, 2020 Employee | Dec. 31, 2019 Employee kr / shares shares | Dec. 31, 2016 kr / shares shares | |
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage of performance share awards granted | 162.76% | 200% | 200% | ||||
Compensation expense charged | kr | kr 2,814 | ||||||
share price at vesting | kr / shares | kr 94.13 | kr 78.88 | |||||
Payout amount at vesting | kr | kr 784 | ||||||
Strike price | kr / shares | kr 87.97 | ||||||
Reporting year [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Compensation expense charged | kr | 450 | kr 1,346 | |||||
Provisions for cash settled plans | kr | 985 | 1,591 | |||||
Social Charges included in the provision for cash-settled plans | kr | 120 | kr 190 | |||||
No compensation expenses recognized during the period | four-year period | ||||||
Purchased call options [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Purchase of options shares | shares | 128,452 | 1,000,000 | |||||
Purchase of options shares | shares | 2,000,000 | ||||||
Purchase price | kr / shares | kr 15.57 | kr 0.49 | |||||
No compensation expenses recognized during the period | seven-year period | ||||||
Key contributor retention plan [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Compensation expense charged | kr | 356 | ||||||
Executive performance plan [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Compensation expense charged | kr | kr 5 | ||||||
Executive Performance Plan 2020 (EPP 2020) [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Number of senior managers who selected for plan | 155 | ||||||
Executive Performance Plan 2020 (EPP 2020) [member] | All Countries Except USA [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage of regular award level | 15% | ||||||
Percentage of high award level | 25% | ||||||
Executive Performance Plan 2021 [Member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Number of senior managers who selected for plan | 159 | ||||||
Executive Performance Plan 2021 [Member] | All Countries Except USA [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage of regular award level | 15% | ||||||
Percentage of high award level | 25% | ||||||
Ericsson Share Purchase Plan [Member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Number of countries launched the plan | Country | 79 | ||||||
Number of eligible employees | 90,500 | ||||||
Stock issued during period value shares issued | shares | 50,000 | ||||||
Cash payment percentage out of contribution amount | 15% | ||||||
Executive Performance Plan 2019 (EPP 2019) [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Number of senior managers who selected for plan | 161 | ||||||
Percentage of regular award level | 15% | ||||||
Percentage of high award level | 22.50% | ||||||
Executive Performance Plan 2022 [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Number of senior managers who selected for plan | 165 | ||||||
Senior Managers [member] | Executive performance plan [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Number of awards | three-year | ||||||
The President and CEO [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Compensation expense charged | kr | kr 89 | ||||||
Board of directors [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage of performance share awards granted | 200% | ||||||
Percentage of vesting level of LTV program | 100% | 126.35% | |||||
Retention Of Key Employees | Key Contributor Plan 2021 [Member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Number of awards | three award levels at 10%, 25% and 30% of the participants’ annual gross salary. | ||||||
Employee retention period | 3 years | ||||||
Number of employees who selected for plan | 7,246 | ||||||
Retention Of Key Employees | Key Contributor Plan 2019 [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Number of awards | There are three award levels at 10%, 25% and 30% of the participants’ annual gross salary. The total service period is three years, however the payout is distributed over the entire service period with staggered payments as explained under Key Contributor Plans (KC Plans) and was officially closed in 2022. | ||||||
Employee retention period | 3 years | ||||||
Employee retention payment plan | – 25% of the award to be paid at the end of the first year, – 25% of the award to be paid at the end of the second year, and – the remaining 50% of the award to be paid at the end of the third year. | ||||||
Number of employees who selected for plan | 6,941 | ||||||
Retention Of Key Employees | Key Contributor Plan 2019 [member] | 2023 [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage of award to be paid | 25% | ||||||
Retention Of Key Employees | Key Contributor Plan 2019 [member] | 2024 [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage of award to be paid | 25% | ||||||
Retention Of Key Employees | Key Contributor Plan 2019 [member] | 2025 [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage of award to be paid | 50% | ||||||
Retention Of Key Employees | Key Contributor Plan 2020 (KC Plan 2020) [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Number of awards | hree award levels at 10%, 25% and 30% of the participants’ annual gross salary. The total service period is three years, however the payout is distributed over the entire service period with staggered payments as explained under Key Contributor Plans (KC Plans). | ||||||
Employee retention period | 3 years | ||||||
Number of employees who selected for plan | 7,007 | ||||||
Retention Of Key Employees | Key Contributor Plan 2022 [Member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Number of awards | There are at multiple levels between 10% - 40% of the participants’ annual gross salary. The total service period is three years, however the payout is distributed over the entire service period with staggered payments as explained under Key Contributor Plans (KC Plans). | ||||||
Employee retention period | 3 years | ||||||
Number of employees who selected for plan | 7,704 | ||||||
Performance share awards [member] | The President and CEO [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage value of awards on annual base salary | 190% | 190% | 180% | 180% | |||
Performance share awards [member] | Other participants [member] | Bottom of range [Member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage value of awards on annual base salary | 30% | 30% | 30% | 30% | |||
Performance share awards [member] | Other participants [member] | Top of range [Member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage value of awards on annual base salary | 70% | 70% | 70% | 70% | |||
Absolute TSR [member] | Board of directors [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage of vesting level of LTV program | 6.65% | 9% | |||||
Long-term variable compensation program [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Vesting period | 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 (Performance Share Awards) are granted to the participants, provided that certain performance conditions are met, to receive a number of shares, free of charge, following expiration of a three-year vesting period (vesting period). | ||||||
Period of employment eligibility for awards | 3 years | ||||||
Rest of the Countries [Member] | Executive Performance Plan 2022 [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage of regular award level | 15% | ||||||
Percentage of high award level | 25% | ||||||
CA [Member] | Executive Performance Plan 2022 [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage of high award level | 45% | ||||||
US [member] | Executive Performance Plan 2020 (EPP 2020) [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage of regular award level | 25% | ||||||
Percentage of high award level | 35% | ||||||
US [member] | Executive Performance Plan 2021 [Member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage of regular award level | 25% | ||||||
Percentage of high award level | 35% | ||||||
US [member] | Executive Performance Plan 2022 [member] | |||||||
Disclosure of Information About Board Management and Employees [line items] | |||||||
Percentage of regular award level | 35% |
Share Based Compensation - Summ
Share Based Compensation - Summary of Performance Criteria (Detail) - SEK (kr) kr in Billions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Weight | 100% | 100% | 100% | 100% |
Achieved Vesting Level | 100% | 126.35% | ||
Bottom of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Vesting Opportunity | 0% | 0% | 0% | 0% |
Top of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Vesting Opportunity | 200% | 200% | 200% | 200% |
2022 Group operating income [member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Criteria | Range (SEK billion): 24.1–34.1 | |||
Weight | 45% | |||
Achievement, value | kr 32.2 | |||
Achieved Vesting Level | 162.76% | |||
2022 Group operating income [member] | Bottom of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Jan 1, 2022 | |||
Vesting Opportunity | 0% | |||
2022 Group operating income [member] | Top of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Dec 31, 2022 | |||
Vesting Opportunity | 200% | |||
2021 Group operating income [member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Criteria | Range (SEK billion): 15.0–24.0 | |||
Weight | 50% | |||
Achievement, value | kr 27.4 | |||
Achieved Vesting Level | 200% | |||
2021 Group operating income [member] | Bottom of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Jan 1, 2021 | |||
Vesting Opportunity | 0% | |||
2021 Group operating income [member] | Top of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Dec 31, 2021 | |||
Vesting Opportunity | 200% | |||
2020 Group operating income [member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Criteria | Range (SEK billion): 19.1–27.9 | |||
Weight | 50% | |||
Achievement, value | kr 29.1 | |||
Achieved Vesting Level | 200% | |||
2020 Group operating income [member] | Bottom of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Jan 1, 2020 | |||
Vesting Opportunity | 0% | |||
2020 Group operating income [member] | Top of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Dec 31, 2020 | |||
Vesting Opportunity | 200% | |||
Absolute TSR [member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Criteria | Range: 6%-14% | Range: 6%–14% | Range: 6%–14% | Range: 6%–14% |
Weight | 25% | 30% | 30% | 30% |
Achieved Vesting Level | 0% | 74.89% | ||
Achievement, percentage | 6.65% | 9% | ||
Absolute TSR [member] | Bottom of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Jan 1, 2022 | Jan 1, 2021 | Jan 1, 2020 | Jan 1, 2019 |
Vesting Opportunity | 0% | 0% | 0% | 0% |
Absolute TSR [member] | Top of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 |
Vesting Opportunity | 200% | 200% | 200% | 200% |
Relative TSR [member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Criteria | Ranking of Ericsson: 6–2 | Ranking of Ericsson: 6–2 | Ranking of Ericsson: 6–2 | Ranking of Ericsson: 7–2 |
Weight | 20% | 20% | 20% | 20% |
Achieved Vesting Level | 0% | 19.39% | ||
Achievement, description | 12 out of 11 | 6.52 out of 12 | ||
Relative TSR [member] | Bottom of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Jan 1, 2022 | Jan 1, 2021 | Jan 1, 2020 | Jan 1, 2019 |
Vesting Opportunity | 0% | 0% | 0% | 0% |
Relative TSR [member] | Top of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 |
Vesting Opportunity | 200% | 200% | 200% | 200% |
2019 Group operating income [member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Criteria | Range (SEK billion): 10.0–20.0 | |||
Weight | 50% | |||
Achievement, value | kr 20.4 | |||
Achieved Vesting Level | 200% | |||
2019 Group operating income [member] | Bottom of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Jan 1, 2019 | |||
Vesting Opportunity | 0% | |||
2019 Group operating income [member] | Top of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Dec 31, 2019 | |||
Vesting Opportunity | 200% | |||
Increasing the representation of women leaders in the Ericsson Group Range 22-24 [member] | Group Environmental, Social and Governance [member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Criteria | Increasing the representation of women leaders in the Ericsson Group: Range 22%–24% | |||
Weight | 5% | |||
Increasing the representation of women leaders in the Ericsson Group Range 22-24 [member] | Group Environmental, Social and Governance [member] | Bottom of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Jan 1, 2022 | |||
Vesting Opportunity | 0% | |||
Increasing the representation of women leaders in the Ericsson Group Range 22-24 [member] | Group Environmental, Social and Governance [member] | Top of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Dec 31, 2024 | |||
Vesting Opportunity | 200% | |||
CO2e emissions (ktonnes) 265200 [member] | Group Environmental, Social and Governance [member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Criteria | CO2e emissions (ktonnes): 265–200 | |||
Weight | 5% | |||
CO2e emissions (ktonnes) 265200 [member] | Group Environmental, Social and Governance [member] | Bottom of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Jan 1, 2022 | |||
Vesting Opportunity | 0% | |||
CO2e emissions (ktonnes) 265200 [member] | Group Environmental, Social and Governance [member] | Top of range [Member] | ||||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||||
Performance Period | Dec 31, 2024 | |||
Vesting Opportunity | 200% |
Share Based Compensation - Su_2
Share Based Compensation - Summary of Performance Criteria (Parenthetical) (Detail) - Country | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | ||||
Number of companies in peer group | 11 | 11 | 11 | 12 |
Share Based Compensation - Su_3
Share Based Compensation - Summary of Number of Shares and Synthetic Shares (Detail) | 12 Months Ended |
Dec. 31, 2022 shares | |
Members of Executive Board [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 9,600,000 |
Granted shares | 2,800,000 |
Outstanding beginning | 3,000,000 |
Increase/decrease due to performance condition 2022 | (200,000) |
Outstanding ending | 3,500,000 |
Members of Executive Board [member] | LTV 2022 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 2,000,000 |
Granted shares | 700,000 |
Outstanding beginning | 0 |
Exercised during 2022 | 0 |
Forfeited during 2022 | 0 |
Increase/decrease due to performance condition 2022 | 200,000 |
Outstanding ending | 900,000 |
Members of Executive Board [member] | LTV 2021 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 2,100,000 |
Granted shares | 600,000 |
Outstanding beginning | 900,000 |
Outstanding ending | 900,000 |
Members of Executive Board [member] | LTV 2020 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 2,500,000 |
Granted shares | 900,000 |
Outstanding beginning | 1,300,000 |
Increase/decrease due to performance condition 2022 | (400,000) |
Outstanding ending | 900,000 |
Members of Executive Board [member] | LTV 2019 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 3,000,000 |
Granted shares | 600,000 |
Outstanding beginning | 800,000 |
Outstanding ending | 800,000 |
The President and CEO [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 0 |
Granted shares | 1,300,000 |
Outstanding beginning | 1,400,000 |
Increase/decrease due to performance condition 2022 | (100,000) |
Outstanding ending | 1,600,000 |
The President and CEO [member] | LTV 2022 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 0 |
Granted shares | 300,000 |
Outstanding beginning | 0 |
Exercised during 2022 | 0 |
Forfeited during 2022 | 0 |
Increase/decrease due to performance condition 2022 | 100,000 |
Outstanding ending | 400,000 |
The President and CEO [member] | LTV 2021 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Granted shares | 300,000 |
Outstanding beginning | 500,000 |
Outstanding ending | 500,000 |
The President and CEO [member] | LTV 2020 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Granted shares | 400,000 |
Outstanding beginning | 600,000 |
Increase/decrease due to performance condition 2022 | (200,000) |
Outstanding ending | 400,000 |
The President and CEO [member] | LTV 2019 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Granted shares | 300,000 |
Outstanding beginning | 300,000 |
Outstanding ending | 300,000 |
Executive performance plan [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 3,200,000 |
Key contributor plan [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 19,900,000 |
Key contributor plan [member] | Key contributor plan 2022 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 9,500,000 |
Key contributor plan [member] | Key Contributor Plan2021 | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 5,400,000 |
Key contributor plan [member] | Key Contributor Plan 2020 (KC Plan 2020) [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 5,000,000 |
Key contributor plan [member] | Key Contributor Plan 2019 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 0 |
Synthetic shares [member] | Executive performance plan [member] | EPP 2022 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 1,100,000 |
Synthetic shares [member] | Executive performance plan [member] | EPP 2021 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 1,100,000 |
Synthetic shares [member] | Executive performance plan [member] | EPP 2020 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 1,000,000 |
Synthetic shares [member] | Executive performance plan [member] | EPP 2019 [member] | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | |
Maximum shares required | 0 |
Share Based Compensation - Su_4
Share Based Compensation - Summary of Compensation Expense (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | kr 2,814 | |
Executive performance plan [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 187 | |
Executive performance plan [member] | EPP 2022 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 12 | |
Executive performance plan [member] | EPP 2021 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 32 | |
Executive performance plan [member] | EPP 2020 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 71 | |
Executive performance plan [member] | EPP 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 72 | |
Key contributor plan [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 2,387 | |
Key contributor plan [member] | Key contributor plan 2022 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 280 | |
Key contributor plan [member] | Key Contributor Plan2021 | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 444 | |
Key contributor plan [member] | Key Contributor Plan 2020 (KC Plan 2020) [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 904 | |
Key contributor plan [member] | Key Contributor Plan 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 759 | |
Cash-settled plans [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 2,574 | |
Reporting year [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 450 | kr 1,346 |
Reporting year [member] | Executive performance plan [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 5 | |
Reporting year [member] | Executive performance plan [member] | EPP 2022 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 12 | |
Reporting year [member] | Executive performance plan [member] | EPP 2021 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 15 | |
Reporting year [member] | Executive performance plan [member] | EPP 2020 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | (19) | |
Reporting year [member] | Executive performance plan [member] | EPP 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | (3) | |
Reporting year [member] | Key contributor plan [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 356 | |
Reporting year [member] | Key contributor plan [member] | Key contributor plan 2022 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 280 | |
Reporting year [member] | Key contributor plan [member] | Key Contributor Plan2021 | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 89 | |
Reporting year [member] | Key contributor plan [member] | Key Contributor Plan 2020 (KC Plan 2020) [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 5 | |
Reporting year [member] | Key contributor plan [member] | Key Contributor Plan 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | (18) | |
Reporting year [member] | Cash-settled plans [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 361 | |
2021 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 1,095 | |
2021 [member] | Executive performance plan [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 87 | |
2021 [member] | Executive performance plan [member] | EPP 2021 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 17 | |
2021 [member] | Executive performance plan [member] | EPP 2020 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 56 | |
2021 [member] | Executive performance plan [member] | EPP 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 14 | |
2021 [member] | Key contributor plan [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 925 | |
2021 [member] | Key contributor plan [member] | Key Contributor Plan2021 | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 355 | |
2021 [member] | Key contributor plan [member] | Key Contributor Plan 2020 (KC Plan 2020) [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 376 | |
2021 [member] | Key contributor plan [member] | Key Contributor Plan 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 194 | |
2021 [member] | Cash-settled plans [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 1,012 | |
2020 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 993 | |
2020 [member] | Executive performance plan [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 84 | |
2020 [member] | Executive performance plan [member] | EPP 2020 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 34 | |
2020 [member] | Executive performance plan [member] | EPP 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 50 | |
2020 [member] | Key contributor plan [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 858 | |
2020 [member] | Key contributor plan [member] | Key Contributor Plan 2020 (KC Plan 2020) [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 523 | |
2020 [member] | Key contributor plan [member] | Key Contributor Plan 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 335 | |
2020 [member] | Cash-settled plans [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 942 | |
2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 276 | |
2019 [member] | Executive performance plan [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 11 | |
2019 [member] | Executive performance plan [member] | EPP 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 11 | |
2019 [member] | Key contributor plan [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 248 | |
2019 [member] | Key contributor plan [member] | Key Contributor Plan 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 248 | |
2019 [member] | Cash-settled plans [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 259 | |
Executive team plans [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 240 | |
Executive team plans [member] | LTV 2022 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 12 | |
Executive team plans [member] | LTV 2021 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 60 | |
Executive team plans [member] | LTV 2020 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 85 | |
Executive team plans [member] | LTV 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 83 | |
Executive team plans [member] | Reporting year [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 89 | |
Executive team plans [member] | Reporting year [member] | LTV 2022 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 12 | |
Executive team plans [member] | Reporting year [member] | LTV 2021 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 36 | |
Executive team plans [member] | Reporting year [member] | LTV 2020 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 31 | |
Executive team plans [member] | Reporting year [member] | LTV 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 10 | |
Executive team plans [member] | 2021 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 83 | |
Executive team plans [member] | 2021 [member] | LTV 2021 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 24 | |
Executive team plans [member] | 2021 [member] | LTV 2020 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 31 | |
Executive team plans [member] | 2021 [member] | LTV 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 28 | |
Executive team plans [member] | 2020 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 51 | |
Executive team plans [member] | 2020 [member] | LTV 2020 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 23 | |
Executive team plans [member] | 2020 [member] | LTV 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 28 | |
Executive team plans [member] | 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 17 | |
Executive team plans [member] | 2019 [member] | LTV 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 17 | |
The President and CEO [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 111 | |
The President and CEO [member] | Reporting year [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 41 | |
The President and CEO [member] | 2021 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 38 | |
The President and CEO [member] | 2020 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | 24 | |
The President and CEO [member] | 2019 [member] | ||
Disclosure of terms and conditions of share based payment arrangement [line Items] | ||
Compensation expense charged | kr 8 |
Share Based Compensation - Su_5
Share Based Compensation - Summary of FV Per Performance Criteria and Program (Detail) - kr / shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Executive performance plan [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Fair value Group operating income | kr 54.37 | kr 56.79 | kr 59.31 | kr 78.88 |
Fair value ESG - Social | 54.37 | |||
Fair value ESG - Environmental | 54.37 | |||
Key contributor plan [member] | Fair value – Tranche 1 [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Fair value | 59.31 | 94.13 | 109.8 | 84.12 |
Key contributor plan [member] | Fair value – Tranche 2 [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Fair value | 56.79 | 59.31 | 94.13 | 111.78 |
Key contributor plan [member] | Fair value – Tranche 3 [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Fair value | 54.37 | 56.79 | 59.31 | 78.88 |
Fair Value Absolute T S R | Executive performance plan [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Fair value | 10.53 | 3.63 | 78.88 | |
Fair Value Relative T S R | Executive performance plan [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Fair value | 17.08 | 1.39 | 78.88 | |
Long-term variable compensation program [member] | Executive team plans [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share price at grant | 78.88 | 116.66 | 78.88 | 90.7 |
Fair value Group operating income | 71.45 | 110.7 | 74.22 | 86.94 |
Fair value ESG - Social | 71.45 | |||
Fair value ESG - Environmental | 71.45 | |||
Long-term variable compensation program [member] | Fair Value Absolute T S R | Executive team plans [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Fair value | 41.18 | 113.47 | 54.69 | 87.92 |
Long-term variable compensation program [member] | Fair Value Relative T S R | Executive team plans [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Fair value | kr 54.48 | kr 108.61 | kr 98.06 | kr 94.63 |
Share Based Compensation - Su_6
Share Based Compensation - Summary of Stock Purchase Plans (Detail) - Ericsson Share Purchase Plan [Member] | 12 Months Ended |
Dec. 31, 2022 Employee Country | |
Disclosure Of Detailed Information About Stock Purchase Plans [Line Items] | |
Number of participants | 16,319 |
Take-up rate – percent of eligible employees | 18% |
Number of eligible employees | 90,500 |
Number of countries launched the plan | Country | 79 |
Employee Information - Summary
Employee Information - Summary of Average Number of Employees (Detail) - Employee | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Information About Employees [line items] | ||
Average number of employees | 101,741 | 100,757 |
Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 25,447 | 24,722 |
Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 76,294 | 76,035 |
South East Asia, Oceania and India [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 26,602 | 26,298 |
South East Asia, Oceania and India [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 5,700 | 5,470 |
South East Asia, Oceania and India [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 20,902 | 20,828 |
North East Asia [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 13,087 | 13,902 |
North East Asia [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 4,376 | 4,579 |
North East Asia [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 8,711 | 9,323 |
North America [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 10,886 | 10,268 |
North America [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 2,471 | 2,269 |
North America [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 8,415 | 7,999 |
Europe and Latin America [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 46,654 | 45,917 |
Europe and Latin America [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 12,017 | 11,581 |
Europe and Latin America [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 34,637 | 34,336 |
Middle East and Africa [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 4,512 | 4,372 |
Middle East and Africa [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 883 | 823 |
Middle East and Africa [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 3,629 | 3,549 |
Of which in EU [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 35,265 | 34,699 |
Of which in EU [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 9,006 | 8,728 |
Of which in EU [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 26,259 | 25,971 |
Of which in Sweden [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 14,043 | 13,410 |
Of which in Sweden [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 3,408 | 3,173 |
Of which in Sweden [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 10,635 | 10,237 |
Employee Information - Summar_2
Employee Information - Summary of Number of Employees by Market Area (Detail) - Employee | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Information About Employees [line items] | ||
Number of employees | 105,529 | 101,322 |
South East Asia, Oceania and India [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 27,761 | 26,369 |
North East Asia [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 13,207 | 13,091 |
North America [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 11,993 | 10,344 |
Europe and Latin America [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 48,023 | 47,064 |
Middle East and Africa [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 4,545 | 4,454 |
Of which in EU [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 36,594 | 35,950 |
Of which in Sweden [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 14,481 | 14,183 |
Employee Information - Summar_3
Employee Information - Summary of Number of Employees by Gender and Age (Detail) - Employee | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Information About Employees [line items] | ||
Number of employees | 105,529 | 101,322 |
Percentage of employees | 100% | |
Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 26% | |
Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 74% | |
Under 25 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 4% | |
Under 25 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 1,543 | |
Under 25 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 2,435 | |
25-35 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 30% | |
25-35 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 9,848 | |
25-35 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 21,790 | |
36-45 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 34% | |
36-45 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 8,051 | |
36-45 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 27,595 | |
46-55 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 22% | |
46-55 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 5,261 | |
46-55 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 18,646 | |
Over 55 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 10% | |
Over 55 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 2,229 | |
Over 55 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 8,131 |
Employee Information - Summar_4
Employee Information - Summary of Employee Movements (Detail) - Employee | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Information About Employees [line items] | ||
Number of employees | 105,529 | 101,322 |
Employees who have left the Company [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 13,028 | 11,631 |
Employees who have joined the Company [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 17,235 | 12,129 |
Temporary employees [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 627 | 868 |
Employee Information - Summar_5
Employee Information - Summary of Wages and Salaries and Social Security Expenses (Detail) - SEK (kr) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Information About Employees [line items] | |||
Wages and salaries | kr 152,100,147 | kr 128,252,290 | kr 115,790,992 |
Social security expenses | 82,824,511 | 80,103,179 | kr 73,882,014 |
Employee remuneration [member] | |||
Disclosure of Information About Employees [line items] | |||
Wages and salaries | 73,526,000,000 | 62,823,000,000 | |
Social security expenses | 15,665,000,000 | 14,639,000,000 | |
Of which pension costs | kr 6,316,000,000 | kr 5,601,000,000 |
Employee Information - Summar_6
Employee Information - Summary of Remuneration to Board Members and Presidents in Subsidiaries (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Remuneration To Board Members And Presidents In Subsidiaries [Abstract] | ||
Salary and other remuneration | kr 477 | kr 572 |
Of which annual variable remuneration | 90 | 80 |
Pension costs | kr 34 | kr 41 |
Employee Information - Summar_7
Employee Information - Summary of Board Members, Presidents and Group Management by Gender (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Women [member] | Parent [member] | ||
Disclosure of Information About Employees [line items] | ||
Board members and President | 36% | 23% |
Group Management | 19% | 20% |
Women [member] | Subsidiaries [member] | ||
Disclosure of Information About Employees [line items] | ||
Board members and President | 20% | 21% |
Men [member] | Parent [member] | ||
Disclosure of Information About Employees [line items] | ||
Board members and President | 64% | 77% |
Group Management | 81% | 80% |
Men [member] | Subsidiaries [member] | ||
Disclosure of Information About Employees [line items] | ||
Board members and President | 80% | 79% |
Taxes - Additional Information
Taxes - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||||
Jan. 01, 2021 | Jan. 01, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||||
Income tax | kr (5,497) | kr (6,270) | kr (9,589) | ||
Effective tax rate | 22.30% | 21.40% | 35.20% | ||
Expected applicable tax rate | 20.60% | 20.60% | |||
Actuarial gains and losses related to pensions | kr (2,093) | kr (675) | |||
Cash flow hedges | 671 | 126 | |||
Revaluation of borrowings | (212) | (6) | |||
Deferred tax assets | 19,394 | 23,109 | |||
Tax loss carry-forwards | 23,438 | 19,635 | |||
Unrecognized tax loss carry forwards | 8,490 | 4,038 | |||
Unrecognized tax loss carry forwards, tax value | 1,777 | 671 | |||
Impaired withholding tax assets | kr (1,393) | ||||
Income tax related to non-controlling interests | (4) | (1) | |||
DeferredTax | 1,617 | 188 | |||
Other comprehensive income (loss) totals | (2,980) | (556) | |||
Current tax | 7,353 | 6,110 | kr 5,470 | ||
Business combinations [member] | |||||
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||||
Unrecognized tax loss carry forwards, tax value | 2,394 | ||||
Department of justice [member] | |||||
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||||
Income tax | 450 | ||||
Other comprehensive income [member] | |||||
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||||
DeferredTax | (2,099) | (556) | |||
Current tax | (881) | 0 | |||
Loss Carry Forwards [member] | |||||
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||||
Deferred tax assets | kr 5,190 | kr 4,214 | |||
Sweden [member] | |||||
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||||
Expected applicable tax rate | 20.60% | 20.60% | |||
Impaired withholding tax assets | kr 411 | kr 969 | |||
Sweden [member] | Loss Carry Forwards [member] | |||||
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||||
Deferred tax assets | kr 3,508 | kr 3,512 | |||
Changes in tax rates or tax laws enacted or announced [member] | |||||
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||||
Change in income tax rate | 20.60% | 21.40% |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Major components of tax expense (income) [abstract] | |||
Current income taxes for the year | kr (7,353) | kr (6,110) | kr (5,470) |
Current income taxes related to prior years | 253 | (337) | (175) |
Deferred tax income/expense (+/–) | 1,617 | 188 | (3,911) |
Share of taxes in joint ventures and associated companies | (14) | (11) | (33) |
Income tax expense | kr (5,497) | kr (6,270) | kr (9,589) |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Calculated tax expense at Swedish tax rate 20.6% | kr (5,070) | kr (6,025) | kr (5,823) |
Effect of foreign tax rates | (605) | (324) | (616) |
Current income taxes related to prior years | 253 | (337) | (175) |
Remeasurement of tax loss carry-forwards | (49) | (175) | (258) |
Remeasurement of deductible temporary differences | 15 | 220 | 369 |
Withholding tax expense | 0 | 0 | (1,393) |
Reversal of impaired withholding tax | 411 | 969 | 0 |
Tax effect of non-deductible expenses | (760) | (975) | (2,079) |
Tax effect of non-taxable income | 327 | 392 | 372 |
Tax effect of changes in tax rates | (19) | (15) | 14 |
Income tax expense | kr (5,497) | kr (6,270) | kr (9,589) |
Effective tax rate | 22.30% | 21.40% | 35.20% |
Taxes - Reconciliation of Swe_2
Taxes - Reconciliation of Swedish Income Tax Rate with Effective Tax Rate (Parenthetical) (Detail) kr in Billions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 02, 2023 SEK (kr) | Mar. 02, 2023 USD ($) | |
Reconciliation Of Accounting Profit Multiplied By Applicable Tax Rates [Line Items] | ||||
Expected applicable tax rate | 20.60% | 20.60% | ||
United States Department Of Justice [Member] | Non Adjusting Events After Reporting Period [Member] | ||||
Reconciliation Of Accounting Profit Multiplied By Applicable Tax Rates [Line Items] | ||||
Agreed fine to be paid | kr 2.2 | $ 206,728,848 |
Taxes - Tax Effects of Temporar
Taxes - Tax Effects of Temporary Differences and Tax Loss Carry-forwards (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | kr 19,394 | kr 23,109 | |
Deferred tax liabilities | 4,784 | 884 | |
Net balance | 14,610 | 22,225 | kr 25,207 |
Intangible assets and property, plant and equipment [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 1,161 | 160 | |
Deferred tax liabilities | 8,135 | 1,331 | |
Current assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 3,605 | 3,605 | |
Deferred tax liabilities | 1,055 | 862 | |
Post employment benefits [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 5,558 | 6,782 | |
Deferred tax liabilities | 571 | 567 | |
Provisions [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 5,234 | 3,555 | |
Deferred tax credits [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 2,081 | 5,288 | |
Other [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 1,837 | 1,425 | |
Deferred tax liabilities | 295 | 44 | |
Loss Carry Forwards [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 5,190 | 4,214 | |
Deferred tax assets/ liabilities [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 24,666 | 25,029 | |
Deferred tax liabilities | 10,056 | 2,804 | |
Net balance | 14,610 | 22,225 | |
Netting of tax assets/ liabilities [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Netting of deferred tax assets | (5,272) | (1,920) | |
Netting of deferred tax liabilities | kr (5,272) | kr (1,920) |
Taxes - Changes in Deferred Tax
Taxes - Changes in Deferred Taxes, Net (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance, net | kr 22,225 | kr 25,207 |
Recognized in net income | 1,617 | 188 |
Recognized in other comprehensive income | (2,099) | (556) |
Balances regarding acquired/divested businesses | (3,911) | 171 |
Deferred tax credits utilization | (3,586) | (3,027) |
Translation difference | 364 | 242 |
Closing balance, net | kr 14,610 | kr 22,225 |
Taxes - Tax Loss Carry-forwards
Taxes - Tax Loss Carry-forwards (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Income Taxes [line items] | ||
Tax loss carry-forwards | kr 23,438 | kr 19,635 |
Tax value | 5,190 | |
2023 [member] | ||
Disclosure Of Income Taxes [line items] | ||
Tax loss carry-forwards | 17 | |
Tax value | 3 | |
2024 [member] | ||
Disclosure Of Income Taxes [line items] | ||
Tax loss carry-forwards | 12 | |
Tax value | 2 | |
2025 [member] | ||
Disclosure Of Income Taxes [line items] | ||
Tax loss carry-forwards | 19 | |
Tax value | 6 | |
2026 [member] | ||
Disclosure Of Income Taxes [line items] | ||
Tax loss carry-forwards | 85 | |
Tax value | 22 | |
2027 [member] | ||
Disclosure Of Income Taxes [line items] | ||
Tax loss carry-forwards | 1,236 | |
Tax value | 317 | |
2028 or later (also includes unlimited carry-forwards) [Member] | ||
Disclosure Of Income Taxes [line items] | ||
Tax loss carry-forwards | 22,069 | |
Tax value | kr 4,840 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic | |||
Net income (loss) attributable to owners of the Parent Company (SEK million) | kr 18,724 | kr 22,694 | kr 17,483 |
Average number of shares outstanding, basic (millions) | 3,330 | 3,329 | 3,323 |
Earnings (loss) per share attributable to owners of the Parent Company, basic (SEK) | kr 5.62 | kr 6.82 | kr 5.26 |
Diluted | |||
Net income (loss) attributable to owners of the Parent Company (SEK million) | kr 18,724 | kr 22,694 | kr 17,483 |
Average number of shares outstanding, basic (millions) | 3,330 | 3,329 | 3,323 |
Dilutive effect for stock purchase (millions) | 4 | 3 | 3 |
Average number of shares outstanding, diluted (millions) | 3,334 | 3,332 | 3,326 |
Earnings (loss) per share attributable to owners of the Parent Company, diluted (SEK) | kr 5.62 | kr 6.81 | kr 5.26 |
Statement of Cash Flows - Addit
Statement of Cash Flows - Additional Information (Detail) - SEK (kr) kr in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Cash Flow Statement [Abstract] | ||
Cash and cash equivalents include cash | kr 19,746 | kr 24,014 |
Cash equivalents | 18,603 | 30,036 |
Cash and cash equivalents | kr 2,246 | kr 2,616 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Adjustments To Reconcile Net Income To Cash [Line Items] | |||
Depreciations | kr 4,114 | kr 3,674 | kr 3,602 |
Impairment losses | 274 | 198 | 512 |
Adjustments to reconcile net income to cash | 17,638 | 17,143 | 19,931 |
Depreciations | 2,451 | 2,277 | 2,387 |
Impairment losses | 66 | 0 | 47 |
Amortizations | 3,577 | 2,507 | 1,989 |
Goodwill | 0 | 112 | 0 |
Total impairments | 61 | 313 | 137 |
Total depreciation, amortization and impairment losses on property, plant and equipment and intangible assets | 10,543 | 8,969 | 8,674 |
Taxes | 5,383 | 6,576 | 10,436 |
Dividends from joint ventures/associated companies | 58 | 90 | 43 |
Undistributed earnings in joint ventures/ associated companies | (3) | 270 | 331 |
Gains/losses on investments and sale of operations, intangible assets and PP&E, net | (287) | (971) | 77 |
Other non-cash items | 1,944 | 2,209 | 370 |
Right-of-use assets [member] | |||
Disclosure Of Adjustments To Reconcile Net Income To Cash [Line Items] | |||
Adjustments to reconcile net income to cash | 2,517 | 2,277 | 2,434 |
Intangible asset and goodwill [member] | |||
Disclosure Of Adjustments To Reconcile Net Income To Cash [Line Items] | |||
Adjustments to reconcile net income to cash | 3,638 | 2,820 | 2,126 |
Property, plant and equipments [member] | |||
Disclosure Of Adjustments To Reconcile Net Income To Cash [Line Items] | |||
Adjustments to reconcile net income to cash | 4,388 | 3,872 | 4,114 |
Capitalized development expenditure [member] | |||
Disclosure Of Adjustments To Reconcile Net Income To Cash [Line Items] | |||
Amortizations | 1,586 | 1,343 | 906 |
Customer relationships, IPRs and other intangible assets [member] | |||
Disclosure Of Adjustments To Reconcile Net Income To Cash [Line Items] | |||
Amortizations | 1,991 | 1,164 | 1,083 |
Impairments | kr 61 | kr 201 | kr 137 |
Statement of Cash Flows - Sum_2
Statement of Cash Flows - Summary of Acquisitions/Divestments of Subsidiaries and Other Operations (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Acquisitions And Divestments [Line Items] | |||
Acquisitions | kr (51,995) | kr (389) | kr (9,657) |
Divestments | 307 | 448 | 59 |
Cash flow from business combination [member] | |||
Disclosure Of Acquisitions And Divestments [Line Items] | |||
Acquisitions | (51,734) | (256) | (9,534) |
Divestments | 20 | 273 | 4 |
Acquisition or divestments of other investment [member] | |||
Disclosure Of Acquisitions And Divestments [Line Items] | |||
Acquisitions | (261) | (133) | (123) |
Divestments | kr 287 | kr 175 | kr 55 |
Related party transactions - Su
Related party transactions - Summary of Related Party Transactions (Detail) - SEK (kr) kr in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Ericsson Nikola Tesla | |||
Disclosure of transactions between related parties [line items] | |||
Sales to Ericsson Nikola Tesla | kr 0.3 | kr 0.4 | kr 0.4 |
Purchases from Ericsson Nikola Tesla | 1.5 | 1.2 | 1.2 |
Leone Media Inc. | |||
Disclosure of transactions between related parties [line items] | |||
Loans to MediaKind (Leone Media Inc.) | kr 0.6 | kr 0.5 | kr 0.5 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Ericsson Nikola Tesla d.d | Croatia | |
Disclosure Of Transactions Between Related Parties [Line Items] | |
Percentage of ownership | 49.07% |
Leone Media Inc. | US | |
Disclosure Of Transactions Between Related Parties [Line Items] | |
Percentage of ownership | 45.50% |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Auditors Remuneration [line items] | |||
Audit fees | kr 170 | kr 140 | kr 106 |
Audit-related fees | 9 | 10 | 8 |
Tax fees | 13 | 8 | 10 |
Other fees | 23 | 3 | 7 |
Total | 215 | 161 | 131 |
Deloitte [member] | |||
Auditors Remuneration [line items] | |||
Audit fees | 163 | 132 | 97 |
Audit-related fees | 7 | 9 | 8 |
Tax fees | 2 | 2 | 4 |
Other fees | 1 | 1 | 5 |
Total | 173 | 144 | 114 |
Others [member] | |||
Auditors Remuneration [line items] | |||
Audit fees | 7 | 8 | 9 |
Audit-related fees | 2 | 1 | |
Tax fees | 11 | 6 | 6 |
Other fees | 22 | 2 | 2 |
Total | kr 42 | kr 17 | kr 17 |
Events After The Reporting Peri
Events After The Reporting Period - Additional Information (Detail) - United States Department Of Justice [Member] kr in Billions | 3 Months Ended | |||
Dec. 31, 2022 SEK (kr) | Dec. 31, 2022 USD ($) | Mar. 02, 2023 SEK (kr) | Mar. 02, 2023 USD ($) | |
Disclosure of non-adjusting events after reporting period [line items] | ||||
Complience monitorship expenses | kr 0.1 | |||
Increase (decrease) in other provisions | kr 2.3 | $ 220,000,000 | ||
Non Adjusting Events After Reporting Period [Member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Agreed fine to be paid | kr 2.2 | $ 206,728,848 |