Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
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 Emerging Growth Company | false |
Entity Shell Company | false |
Class B [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 3,072,395,752 |
Class A [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 261,755,983 |
Class C [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated income statement
Consolidated income statement - SEK (kr) shares in Millions, kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit or loss [abstract] | |||
Net sales | kr 210,838 | kr 205,378 | kr 220,316 |
Cost of sales | (142,638) | (157,451) | (155,062) |
Gross income | kr 68,200 | kr 47,927 | kr 65,254 |
Gross margin (%) | 32.30% | 23.30% | 29.60% |
Research and development expenses | kr (38,909) | kr (37,887) | kr (31,631) |
Selling and administrative expenses | (27,519) | (29,027) | (28,317) |
Impairment losses on trade receivables | (420) | (3,649) | (553) |
Operating expenses | (66,848) | (70,563) | (60,501) |
Other operating income | 497 | 1,154 | 1,987 |
Other operating expense | (665) | (13,285) | (1,584) |
Share in earnings of joint ventures and associated companies | 58 | 24 | 31 |
Operating income (loss) | 1,242 | (34,743) | 5,187 |
Financial income | (316) | (372) | (135) |
Financial expenses | (2,389) | (843) | (2,158) |
Income after financial items (loss) | (1,463) | (35,958) | 2,894 |
Taxes | (4,813) | 3,525 | (1,882) |
Net income (loss) | (6,276) | (32,433) | 1,012 |
Net income (loss) attributable to: | |||
Stockholders of the Parent Company | (6,530) | (32,576) | 833 |
Non-controlling interest | kr 254 | kr 143 | kr 179 |
Other information | |||
Average number of shares, basic (million) | 3,291 | 3,277 | 3,263 |
Earnings (loss) per share attributable to stockholders of the Parent Company, basic (SEK) | kr (1.98) | kr (9.94) | kr 0.26 |
Earnings (loss) per share attributable to stockholders of the Parent Company, diluted (SEK) | kr (1.98) | kr (9.94) | kr 0.25 |
Consolidated statement of compr
Consolidated statement of comprehensive income (loss) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of comprehensive income [abstract] | |||
Net income (loss) | kr (6,276) | kr (32,433) | kr 1,012 |
Items that will not be reclassified to profit or loss | |||
Remeasurements of defined benefits pension plans including asset ceiling | (2,453) | 970 | (1,766) |
Revaluation of borrowings due to change in credit risk | 207 | ||
Tax on items that will not be reclassified to profit or loss | 285 | (547) | 520 |
Available-for-sale financial assets | |||
Gains/losses arising during the period | 68 | (7) | |
Reclassification adjustments on gains/losses included in profit or loss | 5 | ||
Revaluation of other investments in shares and participations | |||
Fair value remeasurement | 99 | (2) | |
Changes in cumulative translation adjustments | 2,047 | (3,378) | 4,236 |
Share of other comprehensive income of joint ventures and associated companies | 14 | (362) | |
Tax on items that may be reclassified to profit or loss | (16) | 1 | |
Total other comprehensive income (loss), net of tax | 100 | (2,799) | 2,620 |
Total comprehensive income (loss) | (6,176) | (35,232) | 3,632 |
Total comprehensive income (loss) attributable to: | |||
Stockholders of the Parent Company | (6,470) | (35,357) | 3,403 |
Non-controlling interests | kr 294 | kr 125 | kr 229 |
Consolidated balance sheet
Consolidated balance sheet - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Non-current assets | ||||
Capitalized development expenses | kr 4,237 | kr 4,593 | kr 8,076 | |
Goodwill | 30,035 | 27,815 | 43,387 | |
Intellectual property rights, brands and other intangible assets | 3,474 | 4,148 | 7,747 | |
Property, plant and equipment | 12,849 | 12,857 | 16,734 | |
Financial assets | ||||
Equity in joint ventures and associated companies | 611 | 624 | 775 | |
Other investments in shares and participations | 1,515 | 1,279 | 1,179 | |
Customer finance, non-current | 1,180 | 2,178 | 2,128 | |
Interest-bearing securities, non-current | 23,982 | 25,105 | 7,586 | |
Other financial assets, non-current | 6,559 | 5,897 | 4,443 | |
Deferred tax assets | 23,152 | 21,963 | 16,998 | |
Non-current assets | 107,594 | 106,459 | 109,053 | |
Current assets | ||||
Inventories | 29,255 | 25,547 | 31,618 | |
Contract assets | 13,178 | 13,120 | 17,773 | |
Trade receivables | 51,172 | 48,105 | 48,358 | |
Customer finance, current | 1,704 | 1,753 | 2,625 | |
Other current receivables | 20,844 | 22,301 | 24,432 | |
Interest-bearing securities, current | 6,625 | 6,713 | 13,325 | |
Cash and cash equivalents | 38,389 | 35,884 | 36,966 | |
Current assets | 161,167 | 153,423 | 175,097 | |
Total assets | 268,761 | 259,882 | 284,150 | |
Equity | ||||
Stockholders' equity | 86,978 | 96,935 | 134,582 | |
Non-controlling interest in equity of subsidiaries | 792 | 636 | 675 | |
Equity | 87,770 | 97,571 | 135,257 | |
Non-current liabilities | ||||
Post-employment benefits | 28,720 | 25,009 | 23,723 | |
Provisions, non-current | 5,471 | 3,596 | 946 | |
Deferred tax liabilities | 670 | 901 | 2,147 | |
Borrowings, non-current | 30,870 | 30,500 | 18,653 | |
Other non-current liabilities | 4,346 | 2,776 | 2,621 | |
Non-current liabilities | 70,077 | 62,782 | 48,090 | |
Current liabilities | ||||
Provisions, current | 10,537 | 6,283 | 5,374 | |
Borrowings, current | 2,255 | 2,545 | 8,033 | |
Contract liabilities | 29,348 | 29,076 | 24,930 | |
Trade payables | 29,883 | 26,320 | 25,844 | |
Other current liabilities | 38,891 | 35,305 | 36,622 | |
Current liabilities | 110,914 | 99,529 | 100,803 | |
Total equity and liabilities | [1] | kr 268,761 | kr 259,882 | kr 284,150 |
[1] | Of which interest-bearing liabilities SEK 33,125 (33,045) million. |
Consolidated balance sheet (Par
Consolidated balance sheet (Parenthetical) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Non Current Assets Finance Liabilities [abstract] | ||
Interest-bearing liabilities | kr 33,125 | kr 33,045 |
Consolidated statement of cash
Consolidated statement of cash flows - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income (loss) | kr (6,276) | kr (32,433) | kr 1,012 |
Adjustments to reconcile net income to cash | 7,830 | 19,324 | 5,863 |
Cash flows from (used in) Operations | 1,554 | (13,109) | 6,875 |
Changes in operating net assets | |||
Inventories | (4,807) | 4,719 | (1,756) |
Customer finance, current and non-current | 1,085 | 798 | (950) |
Trade receivables and contract assets | (2,047) | 1,379 | 6,226 |
Trade payables | 2,436 | 1,886 | 3,301 |
Provisions and post-employment benefits | 6,696 | 4,755 | 3,069 |
Contract liabilities | (808) | 5,024 | 4,578 |
Other operating assets and liabilities, net | 5,233 | 4,149 | (7,333) |
Net changes in operating assets and liabilities | 7,788 | 22,710 | 7,135 |
Cash flow from operating activities | 9,342 | 9,601 | 14,010 |
Investing activities | |||
Investments in property, plant and equipment | (3,975) | (3,877) | (6,129) |
Sales of property, plant and equipment | 334 | 1,016 | 482 |
Acquisitions of subsidiaries and other operations | (1,618) | (289) | (984) |
Divestments of subsidiaries and other operations | 333 | 565 | 362 |
Product development | (925) | (1,444) | (4,483) |
Other investing activities | (523) | (463) | (3,004) |
Interest-bearing securities | 2,242 | (11,578) | 5,473 |
Cash flow from investing activities | (4,132) | (16,070) | (8,283) |
Cash flow before financing activities | 5,210 | (6,469) | 5,727 |
Financing activities | |||
Proceeds from issuance of borrowings | 911 | 13,416 | 1,527 |
Repayment of borrowings | (1,748) | (4,830) | (1,072) |
Proceeds from stock issue | 15 | 131 | |
Sale of own shares | 107 | 98 | 105 |
Repurchase of own shares | (15) | (131) | |
Dividends paid | (3,425) | (3,424) | (12,263) |
Other financing activities | 78 | 218 | (39) |
Cash flow from financing activities | (4,077) | 5,478 | (11,742) |
Effect of exchange rate changes on cash | 1,372 | (91) | 2,757 |
Net change in cash | 2,505 | (1,082) | (3,258) |
Cash and cash equivalents, beginning of period | 35,884 | 36,966 | 40,224 |
Cash and cash equivalents, end of period | kr 38,389 | kr 35,884 | kr 36,966 |
Consolidated statement of chang
Consolidated statement of changes in equity - SEK (kr) kr in Millions | Total | Group [member] | Joint ventures and associated companies [member] | Capital stock [member] | Additional paid in capital [member] | Retained earnings [member] | Retained earnings [member]Group [member] | Retained earnings [member]Joint ventures and associated companies [member] | Stockholder's equity [member] | Stockholder's equity [member]Group [member] | Stockholder's equity [member]Joint ventures and associated companies [member] | Non-controlling interest [member] | Non-controlling interest [member]Group [member] | Non-controlling interest [member]Joint ventures and associated companies [member] |
Changes in cumulative translation adjustments | kr 4,236 | kr (362) | kr 4,189 | kr (362) | kr 4,189 | kr (362) | kr 47 | |||||||
Items that will not be reclassified to profit or loss | ||||||||||||||
Remeasurements related to post-employment benefits | kr (1,766) | (1,766) | (1,770) | (1,770) | 4 | |||||||||
Tax on items that will not be reclassified to profit or loss | 520 | kr 521 | kr 521 | kr (1) | ||||||||||
Opening balance adjustment due to IFRS 15 | Increase (decrease) due to application of IFRS 15 [member] | (4,353) | (4,353) | (4,353) | |||||||||||
Beginning balance (Previously stated [member]) at Dec. 31, 2015 | 147,366 | kr 16,526 | kr 24,731 | 105,268 | 146,525 | 841 | ||||||||
Beginning balance (Adjusted Balance [member]) at Dec. 31, 2015 | 143,013 | 16,526 | 24,731 | 100,915 | 142,172 | 841 | ||||||||
Available-for-sale interest-bearing securities | ||||||||||||||
Gains (+)/Losses (-) arising during the period | (7) | (7) | (7) | (7) | ||||||||||
Revaluation of other investments in shares and participations | (2) | (2) | (2) | |||||||||||
Net income (loss) | Previously stated [member] | 1,895 | |||||||||||||
Net income (loss) | 1,012 | 986 | 26 | 807 | 26 | 807 | 26 | 179 | ||||||
Tax on items that may be reclassified to profit or loss | 1 | 1 | 1 | |||||||||||
Total other comprehensive income (loss), net of tax | 2,620 | 2,570 | 2,570 | 50 | ||||||||||
Total comprehensive income | 3,632 | 3,403 | 3,403 | 229 | ||||||||||
Transactions with owners | ||||||||||||||
Stock issue | 131 | 131 | 131 | |||||||||||
Sale of own shares | 105 | 105 | 105 | |||||||||||
Repurchase of own shares | (321) | (131) | (131) | (190) | ||||||||||
Long-term variable compensation plans | 957 | 957 | 957 | |||||||||||
Dividends paid | (12,263) | (12,058) | (12,058) | (205) | ||||||||||
Transactions with non-controlling interest | 3 | 3 | 3 | |||||||||||
Ending balance (Previously stated [member]) at Dec. 31, 2016 | 140,492 | |||||||||||||
Ending balance at Dec. 31, 2016 | 135,257 | 16,657 | 24,731 | 93,194 | 134,582 | 675 | ||||||||
Changes in cumulative translation adjustments | (3,378) | (3,349) | (3,349) | kr (29) | ||||||||||
Items that will not be reclassified to profit or loss | ||||||||||||||
Remeasurements related to post-employment benefits | 970 | 970 | 956 | 956 | 14 | |||||||||
Tax on items that will not be reclassified to profit or loss | (547) | (544) | (544) | (3) | ||||||||||
Available-for-sale interest-bearing securities | ||||||||||||||
Gains (+)/Losses (-) arising during the period | 68 | 68 | 68 | 68 | ||||||||||
Reclassification adjustments relating to available-for-sale financial assets disposed of in the year | 5 | 5 | 5 | 5 | ||||||||||
Revaluation of other investments in shares and participations | 99 | 99 | 99 | |||||||||||
Net income (loss) | Previously stated [member] | (35,063) | |||||||||||||
Net income (loss) | (32,433) | (32,454) | 21 | (32,597) | 21 | (32,597) | 21 | 143 | ||||||
Tax on items that may be reclassified to profit or loss | (16) | (16) | (16) | |||||||||||
Total other comprehensive income (loss), net of tax | (2,799) | (2,781) | (2,781) | (18) | ||||||||||
Total comprehensive income | (35,232) | (35,357) | (35,357) | 125 | ||||||||||
Transactions with owners | ||||||||||||||
Stock issue | 15 | 15 | 15 | |||||||||||
Sale of own shares | 98 | 98 | 98 | |||||||||||
Repurchase of own shares | (103) | (15) | (15) | (88) | ||||||||||
Long-term variable compensation plans | 885 | 885 | 885 | |||||||||||
Dividends paid | (3,424) | (3,273) | (3,273) | (151) | ||||||||||
Transactions with non-controlling interest | 75 | 75 | ||||||||||||
Ending balance (Previously stated [member]) at Dec. 31, 2017 | 100,176 | |||||||||||||
Ending balance (Adjusted Balance [member]) at Dec. 31, 2017 | 96,588 | 16,672 | 24,731 | 54,549 | 95,952 | 636 | ||||||||
Ending balance at Dec. 31, 2017 | 97,571 | 16,672 | 24,731 | 55,532 | 96,935 | 636 | ||||||||
Changes in cumulative translation adjustments | 2,047 | 14 | 2,010 | 14 | 2,010 | 14 | 37 | |||||||
Items that will not be reclassified to profit or loss | ||||||||||||||
Remeasurements related to post-employment benefits | (2,453) | (2,457) | (2,457) | 4 | ||||||||||
Revaluation of borrowings due to change in credit risk | 207 | 207 | 207 | |||||||||||
Tax on items that will not be reclassified to profit or loss | 285 | 286 | 286 | (1) | ||||||||||
Opening balance adjustment due to IFRS 15 | Application of IFRS9 [member] | (983) | (983) | (983) | |||||||||||
Available-for-sale interest-bearing securities | ||||||||||||||
Net income (loss) | (6,276) | kr (6,329) | kr 53 | kr (6,583) | kr 53 | kr (6,583) | kr 53 | kr 254 | ||||||
Total other comprehensive income (loss), net of tax | 100 | 60 | 60 | 40 | ||||||||||
Total comprehensive income | (6,176) | (6,470) | (6,470) | 294 | ||||||||||
Transactions with owners | ||||||||||||||
Sale of own shares | 107 | 107 | 107 | |||||||||||
Long-term variable compensation plans | 677 | 677 | 677 | |||||||||||
Dividends paid | (3,425) | (3,287) | (3,287) | (138) | ||||||||||
Transactions with non-controlling interest | (1) | (1) | (1) | |||||||||||
Ending balance at Dec. 31, 2018 | kr 87,770 | kr 16,672 | kr 24,731 | kr 45,575 | kr 86,978 | kr 792 |
Consolidated statement of cha_2
Consolidated statement of changes in equity (Parenthetical) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Restatement [abstract] | |||
Increase (decrease) through net exchange differences, goodwill | kr 1,584 | kr (2,484) | kr 2,355 |
Realized gain or losses net | kr 36 | kr (24) | kr (90) |
Dividends paid per share | kr 1 | kr 1 | kr 3.70 |
A1 Significant accounting polic
A1 Significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
A1 Significant accounting policies | A1 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, 2018 have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU and RFR 1 “Additional rules for Group Accounting,” related interpretations issued by the Swedish Financial Reporting Board (Rådet för Finansiell Rapportering), and the Swedish Annual Accounts Act. For the financial reporting of 2018, the Company has applied IFRS as issued by the IASB (IFRS effective as per December 31, 2018). There is no difference between IFRS effective as per December 31, 2018, and IFRS as endorsed by the EU, nor is RFR 1 related interpretations issued by the Swedish Financial Reporting Board (Rådet för Finansiell Rapportering) or the Swedish Annual Accounts Act in conflict with IFRS, for all periods presented. For disclosure about new standards and amendments applied as from January 1, 2018, see Note A3, “Changes in accounting policies.” The comparison years have been restated in relation to the adoption of IFRS 15, “Revenue from Contracts with Customers”. The accounting under the former standards IAS 11/18 is therefore not disclosed in this annual report. Restate refers to the retroactive adjustments made in relation to the adoption of IFRS 15, measured and presented as required by IFRS. The preparations for the adoption of new standards and interpretations not adopted 2018 are disclosed at the end of this note, see subheading Other. Basis of presentation The financial statements are presented in millions of Swedish Krona (SEK). They are prepared on a historical cost basis, except for certain financial assets and liabilities that are stated at fair value: financial instruments classified as FVTPL, financial instruments classified as FVOCI and plan assets related to defined benefit pension plans. 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. In addition, a consolidated balance sheet is presented as of the beginning of the comparison year due to the retrospective restatement of IFRS 15, “Revenue from Contracts with Customers”. Basis of consolidation and composition of the Group The consolidated financial statements are prepared in accordance with the purchase method. Accordingly, consolidated stockholders’ equity includes equity in subsidiaries, joint ventures and associated companies earned only after their acquisition. Subsidiaries are all companies for which Telefonaktiebolaget LM Ericsson, directly or indirectly, is the parent. To be classified as a parent, Telefonaktiebolaget LM Ericsson, directly or indirectly, must control another company which requires that the Parent Company has power over that other company, is exposed to variable returns from its involvement and has the ability to use its power over that other company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that such control ceases. Intra-group balances and any unrealized income and expense arising from intra-group transactions are fully eliminated in preparing the consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. The Company is composed of a parent company, Telefonaktiebolaget LM Ericsson, with generally fully-owned subsidiaries in many countries of the world. The largest operating subsidiaries are the fully-owned telecom vendor companies Ericsson AB, incorporated in Sweden and Ericsson Inc., incorporated in the US. Foreign currency remeasurement and translation Items included in the financial statements of each entity of the Company are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in Swedish Krona (SEK), which is the Parent Company’s functional and presentation currency. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of each respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end Changes in the fair value of monetary securities denominated in foreign currency classified as 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 OCI. Translation differences on monetary financial assets and liabilities are reported as part of the fair value gain or loss. Group companies The results and financial position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet. Period income and expenses for each income statement are translated at period average exchange rates. All resulting net exchange differences are recognized as a separate component of Other comprehensive income (OCI). On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and of borrowings and other currency instruments designated as hedges of such investments, are accounted for in OCI. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in OCI are recognized in the income statement as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. The Company is continuously monitoring the economies with high inflation, the risk of hyperinflation and potential impact on the Company. There is no significant impact due to any currency translation of a hyper-inflationary economy. Business and operations For further disclosure, see the notes under section B Revenue recognition IFRS 15, “Revenue from Contracts with Customers” is a principle-based model of recognizing revenue from customer contracts. It has a five-step model that requires revenue to be recognized when control over goods and services are transferred to the customer. The following paragraphs describes 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 vast 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 shall be recognized when control over the equipment is transferred to the customer at a point in time. This assessment shall be viewed from a customer’s perspective considering indicators such as transfer of titles and risks, customer acceptance, physical possession, and billing rights. For hardware sales, transfer of control is usually deemed to occur when the equipment arrives at the customer site and for software sales, when the licenses are made available to the customer. Software licences may be provided to the customer at a point in time, activated or ready to be activated by the customer at a later stage, therefore revenue is recognised when customer obtains control of the software. Contractual terms may vary, therefore judgment will be applied when assessing the indicators of transfer of control for both hardware and software sales. Software licences 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 and 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 may be 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, generally pro-rata Customized solution Some products and services are sold together as part of a customized solution to the customer. This type of contract requires significant installation and integration services to be delivered within the solution, normally over a period of more than 1 year. These products and services are viewed together as a combined performance obligation. This type of contract is usually sold as a firm contract in which the scope of the solution and obligations of both parties are clearly defined for the duration of the contract. Customized solution does not have any alternative use to the Company as it cannot be sold to or used by other customers. Revenue for the combined performance obligation shall be recognized over time if progress of completion can be reliably measured and enforceable right to payment exists over the duration of the contract. The progress of completion is estimated by reference to the output delivered such as achievement of contract milestones and customer acceptance. This method determines revenue milestones over the duration of the contract, and it is considered appropriate as it reflects the nature of the customized solution and how integration service is delivered in these projects. If the criteria above are not met, then all revenue shall be recognized upon the completion of the customized solution, when final acceptance is provided by the customer. Costs incurred in delivering customised solutions are recognized as costs of sales when the related revenue milestone is recognized in the Income statement. Costs incurred relating to future revenue milestones are recognized as Inventories and assessed for recoverability on a regular basis. Transaction price under these contracts is usually a fixed fee, split into a number of progress payments or billing milestones as defined in the contract. In most cases, revenue recognized is limited to the progress payments or unconditional billing milestones over the duration of the contract, therefore no contract asset or contract liability arises on these contracts. In some contracts, revenue may be recognized in advance of billing milestones if enforceable payment rights exist at all times over the contract duration. This will result in an unbilled receivable balance until billing milestones are reached. Amounts billed are normally subject to payments terms within 60 days from invoice date. Customer finance agreements may be agreed separately with some customers where payment terms exceed 179 days. Contract for customized solution applies to the Business Support Systems (BSS) business within the segment Digital Services and the Media Solutions business within the segment Emerging Business and Other. 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 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 occurs. 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 Digital Services. Customer contract related balances Trade receivables include amounts that have been 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. In accordance with IFRS 15, 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. Under previous standards these unbilled sales balances have been included within trade receivables. Contract liability relates to amounts that are paid by or due from customers for which performance obligations are unsatisfied or partially satisfied. Under previous standards these balances have been disclosed as deferred revenue within other current liabilities, and the Company concluded that the balances meet the definition of contract liability under IFRS 15. Advances from customers are also included in the contract liability balance. Segment reporting An operating segment is a component of a company whose operating results are regularly reviewed by the Company’s chief operating decision maker, (CODM), to make decisions about resources to be allocated to the segment and assess its performance. The President and the Chief Executive Officer is defined as the CODM function in the Company. The segment presentation, as per each segment, is based on the Company’s accounting policies as disclosed in this note. The Company’s segment disclosure about geographical areas is based on the country in which transfer of risks and rewards occur. For further information, see Note B1, “Segment information.” Inventories Inventories are measured at the lower of cost or net realizable value on a first-in, first-out Risks of obsolescence have been measured by estimating market value based on future customer demand and changes in technology and customer acceptance of new products. A significant part of Inventories is Contract work in progress (CWIP). Recognition and derecognition of CWIP relates to the Company’s revenue recognition principles meaning that costs incurred under a customer contract are 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. Trade payables See accounting policies under the subheading for Financial instruments and risk management. 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 before-tax before-tax Additional disclosure is required in relation to goodwill impairment testing: see Note A2, “Critical accounting estimates and judgments” below and Note C1, “Intangible assets.” Intangible assets Intangible assets other than goodwill Intangible assets other than goodwill comprise intangible assets acquired through business combinations, such as patents, customer relations, trademarks and software, as well as capitalized development expenses and separately acquired intangible assets, mainly consisting of software. At initial recognition, acquired intangible assets related to business combinations are stated at fair value and capitalized development expenses and software are stated at cost. Subsequent to initial recognition, these intangible assets are stated at initially recognized amounts less accumulated amortization and any impairment. Amortization and any impairment losses are included in Research and development expenses, which mainly consists of capitalized development expenses and technology; in Selling and administrative expenses, which mainly consists of expenses relating to customer relations and brands; and in Cost of sales. Costs incurred for development of products to be sold, leased, or otherwise marketed or intended for internal use are capitalized as from when technological and economic feasibility has been established until the product is available for sale or use. Research and development expenses directly related to orders from customers are accounted for as a part of Cost of sales. Other research and development expenses are charged to income as incurred. Amortization of acquired intangible assets, such as patents, customer relations, trademarks, and software, is made according to the straight-line method over their estimated useful lives, not exceeding ten years. The Company has not recognized any intangible assets with indefinite useful life other than goodwill. Impairment tests are performed whenever there is an indication of possible impairment. Tests are performed as for goodwill, see above. However, intangible assets not yet available for use are tested annually. Corporate assets have been allocated to cash-generating units in relation to each unit’s proportion of total net sales. The amount related to corporate assets is not significant. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. In Note 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, servers and other technical assets, other equipment, tools and installation and construction in process and advance payment. They are stated at cost less accumulated depreciation and any impairment losses. Depreciation is charged to income, on a straight-line basis, over the estimated useful life of each component of an item of property, plant, and equipment, including buildings. Estimated useful lives are, in general, 25–50 years for real estate and 3–10 years for machinery and equipment. Depreciation and any impairment charges are included in Cost of sales, Research and development or Selling and administrative expenses. The Company recognizes in the carrying amount of an item of property, plant, and equipment the cost of replacing a component and derecognizes the residual value of the replaced component. Impairment testing as well as recognition or reversal of impairment of property, plant and equipment is performed in the same manner as for intangible assets other than goodwill, see description under “Intangible assets other than goodwill” above. Gains and losses on disposals are determined by comparing the proceeds less cost to sell with the carrying amount and are recognized within Other operating income and expenses in the income statement. Leasing Leasing when the Company is the lessee Leases on terms in which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that type of asset, although the depreciation period must not exceed the lease term. Other leases are operating leases, and the leased assets under such contracts are not recognized on the balance sheet. Costs under operating leases are recognized in the income statement on a straight-line basis over the term of the lease. Lease incentives received are recognized as an integral part of the total lease expense, over the term of the lease. Leasing when the Company is the lessor Leasing contracts with the Company as lessor are classified as finance leases when the majority of risks and rewards are transferred to the lessee, and otherwise as operating leases. Under a finance lease, a receivable is recognized at an amount equal to the net investment in the lease and revenue is recognized in accordance with the revenue recognition principles. Under operating leases the equipment is recorded as property, plant and equipment and revenue as well as depreciation is recognized on a straight-line basis over the lease term. 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, discounting is made of estimated outflows. However, the actual outflows as a result of the obligations may differ from such estimates. The provisions are mainly related to restructuring, customer and supplier related provisions, warranty commitments and other obligations, such as unresolved income tax and value added tax issues, claims or obligations as a result of patent infringement and other litigations and customer finance guarantees . Product warranty commitments consider probabilities of all material quality issues based on historical performance for established products and expected performance for new products, estimates of repair cost per unit, and volumes sold still under warranty up to the reporting date. A restructuring obligation is considered to have arisen when the Company has a detailed formal plan for the restructuring (approved by management), which has been communicated in such a way that a valid expectation has been raised among those affected. Provision for restructuring is recorded when the Company can reliably estimate the liabilities relating to the obligation. Customer contract 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. These contract loss estimates may include penalties under a loss contract. Other provisions include provisions for unresolved tax issues, litigations and other provisions. The Company provides for estimated future settlements related to patent infringements based on the probable outcome of each infringement. The actual outcome or actual cost of settling an individual infringement may vary from the Company’s estimate. The Company estimates the outcome of any potential patent infringement made known to the Company through assertion and through the Company’s own monitoring of patent-related cases in the relevant legal systems. To the extent that the Company makes the judgment that an identified potential infringement will more likely than not result in an outflow of resources, the Company records a provision based on the Company’s best estimate of the expenditure required to settle with the counterpart. In the ordinary course of business, the Company is subject to proceedings, lawsuits and other unresolved claims, including proceedings under laws and government regulations and other matters. These matters are often resolved over a long period of time. The Company regularly assesses the likelihood of any adverse judgments in or outcomes of these matters, as well as potential ranges of possible losses. Provisions are recognized when it is probable that an obligation has arisen and the amount can be reasonably estimated based on a detailed analysis of each individual issue. Certain present obligations are not recognized as provisions as it is not probable that an economic outflow will be required to settle the obligations or the amount of the obligation cannot be measured with sufficient reliability. Such obligations are reported as contingent liabilities. For further detailed information, see Note 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 non-controlling Non-controlling The Company treats transactions with non-controlling non-controlling non-controlling When the Company ceases to have control, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest in an associate or financial asset. In addition, any amounts previously recognized in Other comprehensive income in respect of that entity are accounted for as if the Company had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in Other comprehensive income are reclassified to profit or loss. At acquisition, there is a choice on an acquisition-by-acquisition non-controlling non-controlling Joint ventures and associated companies Joint ventures and associated companies are accounted for in accordance with the equity method. Under the equity method, the investment in joint venture or associate is initially recognized at cost and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. If the Company’s interest in an associated company is nil, the Company shall not, as prescribed by IFRS, recognize its part of any future losses. Provisions related to obligations for such an interest shall, however, be recognized in relation to such an interest. Investments in associated companies, is i.e., when the Company has significant influence and the power to participate in the financial and operating policy decisions of the associated company, but is not in control or joint control over those policies. Normally, this is the case in voting stock interest, including effective potential voting rights, which stand at least at 20% but not more than 50%. The Company’s share of income before taxes is reported in item “Share in earnings of joint ventures and associated companies,” included in Operating Income. This reflects the fact that these interests are held for operating rather than investing or financial purposes. Ericsson’s share of income taxes related to associated companies is reported under the line item “Taxes,” in the income statement. Unrealized gains on transactions between the Company and its joint ventures and associated companies are eliminated to the extent of the Company’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Shares in earnings of joint ventures and associated companies included in consolidated equity which are undistributed are reported in Retained earnings in the balance sheet. Impairment testing as well as recognition or reversal of impairment of investments in each joint venture and associated company is performed in the same manner as for intangible assets other than goodwill. The entire carrying value of each investment, including goodwill, is tested as a single asset. See also description under “Intangible assets other than goodwill” below. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in Other comprehensive income are reclassified to profit or loss where appropriate. In Note 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. Financial instruments and risk management For further disclosure, see the notes under section F Accounting policies applied 2018 As from 2018 the Company has applied IFRS 9 “Financial instruments.” The following accounting polices apply to 2018. Financial assets Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. Regular purchases and sales of financial assets are recognized on the settlement date. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially |
A2 Critical accounting estimate
A2 Critical accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
A2 Critical accounting estimates and judgments | A2 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 under IFRS 15, “Revenue from Contracts with Customers”, 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. IFRS 15 also requires revenue to be allocated to each performance obligations by reference to their standalone selling prices. The Company considers that an adjusted market assessment approach should be used to estimate stand-alone selling prices for its products and services for the purposes of allocating transaction price. These estimates are comprised of prices set for similar customer and circumstances, adjusted to reflect appropriate profit margins for the market. Estimates are used to determine discounts that relate specifically to each performance obligations, thus impacting their stand-alone selling prices. 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 under IFRS 15 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. Revenue for standard products shall be recognised 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. In a sale of software licence, judgment may also be applied to determine when the software is made available to the customer by considering when they can direct the use of, and obtain substantially all the benefits of, the licence. 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. Revenue for customised solutions shall be recognized over time if progress of completion can be reliably measured and enforceable right to payment exists over the duration of the contract. The progress of completion is estimated by reference to the output delivered such as achievement of contract milestones and customer acceptance. Judgment are applied when determining the appropriate revenue milestones that best reflect the progress of completion and are aligned with key acceptance stages within the contract. Customer contract related balances Key sources of estimation uncertainty for 2018 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. Total allowances for expected credit losses as of December 31, 2018 were SEK 4.1 billion or 6.0% of gross trade receivables and contract assets. For further detailed information see Note F1, “Financial risk management”. Customer financing assets 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. Key sources of estimation uncertainty prior to 2018 The Company monitors the financial stability of its customers and the environment in which they operate to make estimates regarding the likelihood that the individual receivables will be paid. Total allowances for estimated losses as of December 31, 2017, were SEK 3.6 billion or 5.3% of gross trade and customer finance receivables. For further detailed information, see Note F1, “Financial risk management.” Credit risks for outstanding customer finance credits are regularly assessed as well, and allowances are recorded for estimated losses. Inventory valuation Key sources of estimation uncertainty Inventories are valued at the lower of cost and net realizable value. Estimates are required in relation to forecasted sales volumes and inventory balances. In situations where excess inventory balances are identified, estimates of net realizable values for the excess volumes are made. Inventory allowances for estimated losses as of December 31, 2018, amounted to SEK 2.6 (2.4) billion or 8% (9%) of gross inventory. For further detailed information, see Note B5, “Inventories.” Acquired intellectual property rights and other intangible assets, including goodwill Key sources of estimation uncertainty At initial recognition, future cash flows are estimated, to ensure that the initial carrying values do not exceed the expected discounted cash flows for the items of this type of assets. After initial recognition, impairment testing is performed whenever there is an indication of impairment, in addition goodwill impairment testing is performed at least once per year. Negative deviations in actual cash flows compared to estimated cash flows as well as new estimates that indicate lower future cash flows might result in recognition of impairment charges. As disclosed in Note C1, “Intangible assets” impairment has been recognized due to changes during 2018 in the accounting estimates for future cash flows. Write-downs for intangible assets and goodwill amounted to SEK 0.5 (17.2) billion for 2018. At December 31, 2018, the amount of acquired intellectual property rights and other intangible assets amounted to SEK 33.5 (32.0) billion, including goodwill of SEK 30.0 (27.8) 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. In the purchase price allocation made for each acquisition, the purchase price shall be assigned to the identifiable assets, liabilities and contingent liabilities based on fair values for these assets. Any remaining excess value is reported as goodwill. This allocation requires management judgment as well as the definition of cash-generating units for impairment testing purposes. Other judgments might result in significantly different results and financial position in the future. Provisions Key sources of estimation uncertainty Provisions are mainly related to estimates for onerous contracts with customers and suppliers. Onerous customer contract provision includes estimate of costs to be incurred based on the latest conditions and progress on the contract. Assumptions on the probable outcomes of revenue and costs, which may include costs of potential compensation or penalties on exit, are revised regularly based on latest available information and the provision remeasured accordingly. Other sources for estimation uncertainty are restructuring program execution, patent and other litigations as well as for unresolved income tax and value added tax issues. As commented above in the initial part of this note the amounts may come to differ due to future reassessments and outcomes. As disclosed in Note D1, “Provisions” provisions have been recognized due to significant changes during 2018 and 2017 in the accounting estimates for customer contracts resulting in identification of onerous contracts. At December 31, 2018, provisions amounted to SEK 16.0 (9.9) billion. For further detailed information, see Note D1, “Provisions.” Judgments made in relation to accounting policies applied Whether a present obligation is probable or not requires judgment. The nature and type of risks for these provisions differ and management’s judgment is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not. Contingent liabilities Key sources of estimation uncertainty As disclosed under ‘Provisions’ there are uncertainties in the estimated amounts. The same type of uncertainty exists for contingent liabilities. Judgments made in relation to accounting policies applied As disclosed under Note A1, “Significant accounting policies” a potential obligation that is not likely to result in an economic outflow is classified as a contingent liability, with no impact on the Company’s financial statements. However, should an obligation in a later period be deemed to be probable, then a provision shall be recognized, impacting the financial statements. Foreign exchange risks Key sources of estimation uncertainty Foreign exchange risk impacts the financial results of the Company, see further disclosure in Note F1, “Financial risk management,” under Foreign exchange risk. Pension and other post-employment benefits Key sources of estimation uncertainty Accounting for the costs of defined benefit pension plans and other applicable post-employment benefits is based on actuarial valuations, relying on key estimates for discount rates, future salary increases, employee turnover rates and mortality tables. The discount rate assumptions are based on rates for high-quality fixed-income investments with durations as close as possible to the Company’s pension plans. In countries where there is not a deep market in high-quality corporate bonds, the market yields on government bonds shall be applied. Judgment is applied in determining the deepness 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, 2018, defined benefit obligations for pensions and other post-employment benefits amounted to SEK 90.3 (87.6) billion and fair value of plan assets to SEK 64.3 (64.9) billion. For more information on estimates and assumptions, see Note G1, “Post-employment benefits.” Deferred taxes Key sources of estimation uncertainty Deferred tax assets and liabilities are recognized for temporary differences and for tax loss carry-forwards. Deferred tax is recognized net of valuation allowances. The valuation of temporary differences and tax loss carry-forwards, is based on management’s estimates of future taxable profits in different tax jurisdictions against which the temporary differences and loss carry-forwards may be utilized. The largest amounts of tax loss carry-forwards are reported in Sweden, with an indefinite period of utilization (i.e. with no expiry date), except for withholding taxes that expires after five years. For further information, see Note H1, “Taxes.” At December 31, 2018, the value of deferred tax assets amounted to SEK 23.2 (22.0) billion. The deferred tax assets related to loss carry-forwards are reported as non-current Accounting for income tax, value added tax, and other taxes Key sources of estimation uncertainty Accounting for these items is based upon evaluation of income, value added and other tax rules in all jurisdictions where the Company performs activities. The total complexity of rules related to taxes and the accounting for these require management’s involvement in judgments regarding classification of transactions and in estimates of probable outcomes of claimed deductions and/or disputes. |
A3 Changes in accounting polici
A3 Changes in accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
A3 Changes in accounting policies | A3 Two new IFRS standards are effective as from January 1, 2018, IFRS 9, “Financial instruments” and IFRS 15, “Revenue from Customer Contracts.” The following table illustrates the impact of the implementation of IFRS 9 and IFRS 15 on equity and other balance sheet items at the transition date of January 1, 2018. For IFRS 15 the Company has adopted the full retrospective method for transition, which mean that prior year comparatives have been restated and equity has been adjusted at the initial application date (January 1, 2016). The Company has applied IFRS 9 retrospectively on the required effective date, January 1, 2018. The 2018 opening balances have been adjusted, but the previous periods have not been restated. Based on the new requirements under IFRS 15, contract assets and contract liabilities have been added as new lines in the consolidated balance sheet and statement of cash flow. Previously, contract assets were reported as trade receivables and contract liabilities were reported as deferred revenue and as advances from customers within other current liabilities. Due to IFRS 9, impairment losses on trade receivables are reported on a separate line in the consolidated income statement. Previously, these losses have been reported as Selling and administrative expenses. In the statement of comprehensive income, a new line has been added for revaluation of borrowings due to changes in credit risk. A new line has been added to the consolidated statement of equity showing the adjustment to the opening balance. The prior periods financial statements, notes and key ratios presented in this annual report have been restated to reflect adoption of these new standards. Impact of IFRS 9 and IFRS 15 on balance sheet items 2017 As reported IFRS 15 Restated IFRS 9 Adjusted ASSETS Non-current Deferred tax assets 21,228 735 21,963 288 22,251 Current assets Inventories 24,960 587 25,547 — 25,547 Contract assets — 13,120 13,120 — 13,120 Trade receivables 63,210 –15,105 48,105 –1,240 46,865 EQUITY AND LIABILITIES Equity Stockholder’s equity 99,540 –2,605 96,935 –983 95,952 Non-current Borrowings, non-current 30,500 — 30,500 31 30,531 Current liabilities Provisions, current 6,350 –67 6,283 — 6,283 Contract liabilities — 29,076 29,076 — 29,076 Trade payables 26,321 –1 26,320 — 26,320 Other current liabilities 62,370 –27,065 35,305 — 35,305 2015 and 2016 As reported IFRS 15 Restated As reported IFRS 15 Restated ASSETS Non-current Deferred tax assets 13,183 1,228 14,411 15,522 1,476 16,998 Current assets Inventories 28,436 169 28,605 30,307 1,311 31,618 Contract assets — 20,188 20,188 — 17,773 17,773 Trade receivables 71,069 –21,880 49,189 68,117 –19,759 48,358 EQUITY AND LIABILITIES Equity Stockholder’s equity 146,525 –4,353 142,172 139,817 –5,235 134,582 Non-current Borrowings, non-current 22,744 — 22,744 18,653 — 18,653 Current liabilities Provisions, current 3,662 — 3,662 5,411 –37 5,374 Contract liabilities — 20,324 20,324 — 24,930 24,930 Trade payables 22,389 — 22,389 25,318 526 25,844 Other current liabilities 58,663 –16,267 42,396 56,003 –19,381 36,622 IFRS 9 – Financial instruments The complete version of IFRS 9 replaces most of the guidance in IAS 39. IFRS 9 updates the classification, measurement and impairment of financial assets as well as provides new requirements for hedge accounting. The Company has applied IFRS 9 retrospectively on the required effective date, January 1, 2018, and has not restated comparative information. Classification and measurement The following changes in classification of assets and liabilities were made as of January 1, 2018. • Investments in liquid bonds with low credit risk which are not held for trading were classified as available-for-sale non-current. • Trade receivables are managed in a business model whose objective is achieved through both collection of contractual cash flows and selling of assets. Therefore, trade receivables are classified as fair value through other comprehensive income (FVOCI). At transition, there was no change in the carrying value of these assets due to the change in classification. See below for the change in carrying value due to the changes in impairment requirements. • Customer finance assets are managed in a business model with the objective to realize cash flows through the sale of assets. Therefore, customer finance are classified FVTPL. There was no change in the carrying value of these assets at transition. • Investments in equity instruments, which were classified as available-for-sale • Notes, bonds, and loans issued by the Parent Company are managed on a fair value basis and are therefore designated as FVTPL with changes in fair value due to changes in credit risk realized in OCI. As a result, the carrying value of borrowings increased by SEK 31 million. Fair value hedge accounting will not be applied to any borrowings as from 2018. Reclassification of financial instruments as of 1.1.2018 MSEK Classification Classification Carrying Carrying Financial assets Customer finance Loans and FVTPL 3,931 3,931 Trade receivables Loans and FVOCI 48,105 46,865 1) Interest-bearing securities – held for trading FVTPL FVTPL 6,118 6,118 Interest-bearing securities – managed on a fair value basis Available- for-sale FVTPL 25,433 25,433 Interest-bearing securities – other Loans and Amortized 266 266 Cash equivalents – held for trading FVTPL FVTPL 14,345 14,345 Cash equivalents – other Loans and Amortized 3,136 3,136 Other investments in shares and participations Available- for-sale FVTPL 1,279 1,279 Other financial investments 2) FVTPL FVTPL 820 820 Derivatives 3) FVTPL FVTPL 1,293 1,293 Financial liabilities Borrowings – managed on a fair value basis Amortized Designated 28,771 28,802 4) Borrowings – other Amortized Amortized 4,274 4,274 Trade payables Amortized Amortized 26,320 26,320 Derivatives 3) FVTPL FVTPL 926 926 1) Change in value due to additional impairment allowance. 2) Other financial investments are presented in other financial assets. 3) Derivatives are presented in other current receivables or other current liabilities in the consolidated balance sheet 4) Change in value due to transition from amortized cost to fair value. Impairment Impairment losses for assets classified as amortized cost or FVOCI are now calculated based on expected credit losses (ECL). Previously, financial assets in the loans and receivables and available-for-sale The allowance for impairment for trade receivables and contract assets increased by SEK 1,240 million due to the change in models. The allowance for impairment for customer finance credits was removed as these assets are classified as FVTPL. The opening balance of the customer financing credits valued at fair value is unchanged from the net balance of customer finance credits after reducing for allowances at December 31, 2017. Cash equivalents and interest-bearing securities classified as amortized cost are assessed for impairment under IFRS 9. However, the impairment required for these balances was immaterial. IFRS 15 – Revenue from Contracts with Customers IFRS 15 replaced guidance in IAS 18 and IAS 11. This standard establishes a new principle-based model of recognizing revenue from customer contracts. It introduces a five-step model that requires revenue to be recognized when control over goods and services are transferred to the customer. The Company has adopted the full retrospective method for transition which required a restatement of prior year comparatives and adjustment to equity in the earliest presented comparative period, i.e. January 1, 2016 (‘initial application date’). The Company has applied the practical expedient in IFRS 15 C5(a) not to restate completed contracts at January 1, 2016. The impact of IFRS 15 was a reduction to equity (before tax effect) at transition date, January 1, 2018, of SEK 3.3 billion. The main impacted areas are described below. Discount in a contract The definition of a contract in IFRS 15 is stricter than standards effective prior to 2018 (previous standards) in that a contract exists only when enforceable rights and obligations are present. The majority of the Company’s business is conducted via frame agreements. Typically, a customer purchase order, together with a frame agreement, creates a firm enforceable commitment. The stricter definition of a contract affects how discounts are accounted for, as discounts shall be applied over the value and duration of a contract. Under the previous standards, the Company considers a broader interpretation of a contract from which it reasonably expects to derive benefit. For a business covered by frame agreement this may result in a longer timeframe for recognition of related discounts as future expected purchases are included in the assessment. The impact of IFRS 15 is that these discounts shall be recognized as a reduction in revenue earlier which resulted in a reduction of equity (before tax effect) of SEK 1.1 billion at transition date (corresponding impact at 1.1.2016 and 31.12.2016 is a reduction in equity (before tax effect) of SEK 3.8 billion and SEK 4.2 billion respectively). Customized solution contract Under IFRS 15 revenue for customized solution contracts shall be recognized over time if certain criteria are met. These contracts relate to the construction of assets specifically customized for the customer and with no alternative use to the Company. IFRS 15 also requires the Company to have enforceable right to payment for performance completed to date. The Company recognized revenue under previous standards over the duration of these contracts based on defined delivery milestones. No significant changes are expected in the method of measuring progress of completion over the duration of the contract. However, the additional requirement under IFRS 15 will ensure that revenue is recognized for performance completed to date based on enforceable right to payment that exists at that point. The Company has identified ongoing contracts where revenue will be deferred as the performance completed to date is restricted under IFRS 15 to enforceable billing rights under the contracts. This resulted in a reduction in equity (before tax effect) of SEK 0.8 billion at transition date (corresponding impact at 1.1.2016 and 31.12.2016 is a reduction in equity (before tax effect) of SEK 0.7 billion and SEK 0.8 billion respectively). Transfer of control for equipment Under IFRS 15, revenue shall be recognized when control over the equipment is transferred to the customer at a point in time. This assessment shall be viewed from a customer’s perspective considering indicators such as transfer of titles and risks, customer acceptance, physical possession, and billing rights. For hardware sale, transfer of control is usually deemed to occur when equipment arrives at the customer site and for software sale, when the licences are made available to the customer. Contractual terms may vary, therefore judgment will be applied when assessing the indicators of transfer of control. The accounting treatment under previous standards focused on a risk and reward assessment. The Company has identified contracts where the transfer of control under IFRS 15 differs from the previous risk and reward assessment. The resulting impact is a delay in revenue recognition on these contracts, thereby a reduction in equity (before tax effect) of SEK 0.4 billion at transition date (corresponding impact at 1.1.2016 and 31.12.2016 is a reduction in equity (before tax effect) of SEK 0.2 billion and SEK 0.5 billion respectively). Under previous standards revenue was recognized on these contracts when risk of the equipment was transferred at handover points, but the definition of transfer of control in IFRS 15 means that other factors such as billing right and physical possession together indicate that transfer of control occurs at a later point. Presentation of contract related balances The new requirement for classification and presentation of contract related balances under IFRS 15 resulted in a separate presentation of the contract asset and contract liability balances. At transition date, contract asset balance, estimated to be SEK 13.1 billion, was presented separately within current assets. Under previous standards these balances have been included within trade receivables as the accounting policy (see Note C1) for 2017 states that trade receivables include amounts where risks and rewards have been transferred to the customer but not yet invoiced. Under IFRS 15, these balances will be presented as contract assets since the Company concluded that they relate to contract assets that are conditional on terms other than only the passage of time before payment of the consideration is due. At transition date, contract liability balance of SEK 29.1 billion, was presented separately within current liabilities. Under previous standards these balances have been disclosed as deferred revenue within other current liabilities, whereas under IFRS 15 the Company concluded that they meet the definition of contract liability. The Company has considered the key areas impacted above and implemented the significant changes to the accounting principles, internal processes and internal controls framework to reflect the new revenue recognition model from January 1, 2018. Impact on Equity, Income statement and Cash flow The impact of IFRS 15 on equity was SEK –2.6 billion for December 31, 2017, –5.2 billion for December 31, 2016 and SEK –4.4 billion for January 1, 2016. The impact on the income statement also resulted in restated numbers reported by segment and market areas, for more information see Note B1, “Segment information.” The impacts on equity and on the income statement (for years 2016 and 2017) are presented in the tables below. The impact on cash flow resulted in changes in net income, adjustments to reconcile net income to cash and in various lines in operating net assets. There was no impact on cash flow from operating activities, investing activities or financing activities. The consolidated statement of cash flows has been restated according to IFRS 15. Impact of IFRS 15 on Equity As reported Impact of Restated January 1, 2016 147,366 –4,353 143,013 December 31, 2016 140,492 –5,235 135,257 December 31, 2017 100,176 –2,605 97,571 Impact of IFRS 15 on Income statement items As reported Impact of Restated 2017 Net sales 201,303 4,075 205,378 Cost of sales –156,758 –693 –157,451 Gross income 44,545 3,382 47,927 Operating income (loss) –38,126 3,383 –34,743 Taxes 4,267 –742 3,525 Net income (loss) –35,063 2,630 –32,433 Earnings per share, basic (SEK) –10.74 0.80 –9.94 Earnings per share, diluted (SEK) –10.74 0.80 –9.94 2016 Net sales 222,608 –2,292 220,316 Cost of sales –156,243 1,181 –155,062 Gross income 66,365 –1,111 65,254 Operating income (loss) 6,299 –1,112 5,187 Taxes –2,131 249 –1,882 Net income (loss) 1,895 –883 1,012 Earnings per share, basic (SEK) 0.53 –0.27 0.26 Earnings per share, diluted (SEK) 0.52 –0.27 0.25 Section B – Business and operations |
B1 Segment information
B1 Segment information | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
B1 Segment information | B1 Operating 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, four operating segments are reported; • Networks • Digital Services • Managed Services • Emerging Business and Other. Segment Networks Segment Digital Services Segment Managed Services Segment Emerging Business and Other iconec-tiv, Market areas The market areas are the Company’s primary sales channel with the responsibility to sell and deliver customer solutions. The Company operates worldwide and reports its operations divided into five geographical market areas: • Europe and Latin America • Middle East and Africa • North America • North East Asia • South East Asia, Oceania and India. In addition, IPR licensing revenues and the majority of segment Emerging Business and Other are externally reported as market area Other. Major customers The Company does not have any customer for which revenues from transactions have exceeded 10% of the Company’s total revenues for the years 2018, 2017 or 2016. 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 500, mainly consisting of network operators, the 10 largest customers accounted for 48% (45%) of net sales. The largest customer accounted for approximately 9% (8%) of net sales in 2018. For more information, see Risk factors, “Market, Technology and Business Risks.” Operating segments 2018 Networks Digital Managed Emerging Total Unallocated Group Segment sales 138,570 38,089 25,770 8,409 210,838 — 210,838 Net sales 138,570 38,089 25,770 8,409 210,838 — 210,838 Gross income 55,153 8,318 2,886 1,843 68,200 — 68,200 Gross margin (%) 39.8 % 21.8 % 11.2 % 21.9 % 32.3 % — 32.3 % Operating income (loss) 19,421 –13,852 1,093 –5,420 1,242 — 1,242 Operating margin (%) 14.0 % –36.4 % 4.2 % –64.5 % 0.6 % — 0.6 % Financial income –316 Financial expenses –2,389 Income after financial items –1,463 Taxes –4,813 Net income (loss) –6,276 Other segment items Share in earnings of JV and associated companies 28 27 3 — 58 — 58 Amortizations –830 –2,295 –14 –807 –3,946 — –3,946 Depreciations –1,717 –933 –169 –456 –3,275 — –3,275 Impairment losses –308 –406 –29 –354 –1,097 — –1,097 Restructuring expenses –1,781 –5,366 –276 –592 –8,015 — –8,015 Gains/losses on sale of investments and operations –132 –36 –57 — –225 — –225 Operating segments 2017 1) Networks Digital Managed Emerging Total Unallocated Group Segment sales 132,285 38,752 26,472 7,869 205,378 — 205,378 Net sales 132,285 38,752 26,472 7,869 205,378 — 205,378 Gross income 43,428 4,698 –1,574 1,375 47,927 — 47,927 Gross margin (%) 32.8 % 12.1 % –5.9 % 17.5 % 23.3 % — 23.3 % Operating income (loss) 10,455 –27,282 –4,089 –13,827 –34,743 — –34,743 Operating margin (%) 7.9 % –70.4 % –15.4 % –175.7 % –16.9 % — –16.9 % Financial income –372 Financial expenses –843 Income after fi nancial items –35,958 Taxes 3,525 Net income (loss) –32,433 Other segment items Share in earnings of JV and associated companies 22 8 –6 — 24 — 24 Amortizations –1,104 –2,465 –14 –765 –4,348 — –4,348 Depreciations –1,883 –1,268 –193 –759 –4,103 — –4,103 Impairment losses –1,413 –9,349 –108 –8,571 –19,441 — –19,441 Restructuring expenses –4,828 –2,513 –675 –485 –8,501 — –8,501 Gains/losses on sale of investments and operations 316 –56 1 –67 194 — 194 1) Operating segments 2016 1) Networks Digital Managed Emerging Total Unallocated Group Segment sales 140,076 42,774 28,780 8,686 220,316 — 220,316 Net sales 140,076 42,774 28,780 8,686 220,316 — 220,316 Gross income 46,193 15,603 1,244 2,214 65,254 — 65,254 Gross margin (%) 33.2 % 35.0 % 4.0 % 25.5 % 29.6 % — 29.6 % Operating income 16,669 –7,146 –326 –4,010 5,187 — 5,187 Operating margin (%) 11.9 % –15.3 % –1.7 % –46.2 % 2.4 % — 2.4 % Financial income –135 Financial expenses –2,158 Income after fi nancial items 2,894 Taxes –1,882 Net income 1,012 Other segment items Share in earnings of JV and associated companies 11 22 — –2 31 — 31 Amortizations –1,526 –1,923 –18 –998 –4,465 — –4,465 Depreciations –2,532 –1,061 –341 –487 –4,421 — –4,421 Impairment losses –90 –38 –12 –101 –241 — –241 Reversals of impairment losses 5 2 1 — 8 — 8 Restructuring expenses –3,413 –3,176 –382 –596 –7,567 — –7,567 Gains/losses on sale of investments and operations 72 27 18 6 123 — 123 1) Market area 2018 Net sales Non-current 5) Networks Digital Managed Emerging Total Total South East Asia, Oceania & India 21,337 4,824 3,388 40 29,589 445 North East Asia 4) 15,915 4,849 1,465 80 22,309 1,833 North America 3) 46,452 8,358 3,680 96 58,586 9,397 Europe & Latin America 1) 2) 34,413 12,339 13,207 313 60,272 39,481 Middle East & Africa 13,300 6,284 4,030 15 23,629 50 Other 1) 2) 3) 4) 6) 7,153 1,435 — 7,865 16,453 — Total 138,570 38,089 25,770 8,409 210,838 51,206 1) 6) 2 315 34,434 2) 6) 35 941 38,423 3) 6) 61 446 8,349 4) 6) 14 601 1,525 5) Total non-current 6) Including IPR licensing revenue reported under Other above. Market area 2017 5) Net sales Non-current 6) Networks Digital Managed Emerging Total Total South East Asia, Oceania & India 23,367 4,755 3,216 8 31,346 512 North East Asia 4) 16,239 5,463 1,867 14 23,583 1,516 North America 3) 40,645 8,035 3,207 114 52,001 8,387 Europe & Latin America 1) 2) 30,236 12,147 14,138 280 56,801 39,559 Middle East & Africa 14,075 6,800 4,044 46 24,965 63 Other 1) 2) 3) 4) 7) 7,723 1,552 — 7,407 16,682 — Total 132,285 38,752 26,472 7,869 205,378 50,037 1) 7) 3,334 34,381 2) 7) 36,472 37,895 3) 7) 54,694 7,092 4) 7) 14,983 1,123 5) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” 6) Total non-current 7) Including IPR licensing revenue reported under Other above. Market area 2016 5) Net sales Non-current 6) Networks Digital Managed Emerging Total Non-current South East Asia, Oceania & India 23,741 4,356 3,355 5 31,457 690 North East Asia 4) 18,694 6,777 1,513 9 26,993 1,556 North America 3) 37,863 7,986 6,017 85 51,951 14,650 Europe & Latin America 1) 2) 34,179 14,584 13,620 110 62,493 59,737 Middle East & Africa 16,108 6,987 4,275 2 27,372 86 Other 1) 2) 3) 4) 7) 9,491 2,084 — 8,475 20,050 — Total 140,076 42,774 28,780 8,686 220,316 76,719 1) 7) 3,365 53,111 2) 7) 38,783 57,759 3) 7) 56,332 11,053 4) 7) 18,886 530 5) 2016 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” 6) Total non-current 7) Including IPR licensing revenue reported under Other above. |
B2 Net sales
B2 Net sales | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
B2 Net sales | B2 Net sales 2018 2017 1) 2016 1) Hardware 76,792 70,862 72,675 Software 44,633 43,896 49,096 Services 89,413 90,620 98,545 Net sales 210,838 205,378 220,316 Of which IPR licensing revenues 7,954 8,250 10,256 Export sales from Sweden 109,969 87,463 105,552 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
B3 Expenses by nature
B3 Expenses by nature | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
B3 Expenses by nature | B3 Expenses by nature 2018 2017 1) 2016 1) Goods and services 135,554 128,180 133,809 Employee remuneration 67,161 76,502 77,774 Amortization and depreciation 7,221 8,451 8,886 Impairments, obsolescence allowances and revaluation 3,470 11,531 1,325 Financial expenses 2,389 843 2,158 Taxes 4,813 –3,525 1,882 Expenses incurred 220,608 221,982 225,834 Inventory increase/decrease (–/+) 2) –2,995 4,794 –1,748 Additions to capitalized development –925 –1,444 –4,483 Expenses charged to the income statement 216,688 225,332 219,603 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” 2) The inventory changes are based on changes of net inventory values. Total restructuring charges in 2018 were SEK 8.0 (8.5) billion and were primarely related to the completed cost reduction program initiated in 2017 and costs of SEK –3.1 billion related to revised BSS strategy. Restructuring charges in 2017 included mainly severence cost and the write-down of SEK –1.3 billion of the ICT center in Canada. Restructuring charges are included in the expenses presented above. Restructuring charges by function 2018 2017 2016 Cost of sales 5,938 5,242 3,475 R&D expenses 1,293 2,307 2,739 Selling and administrative expenses 784 952 1,353 Total restructuring charges 8,015 8,501 7,567 |
B4 Other operating income and e
B4 Other operating income and expenses | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
B4 Other operating income and expenses | B4 Other operating income and expenses 2018 2017 2016 Other operating income Gains on sales of intangible assets and PP&E 30 47 423 Gains on sales of investments and operations 1) 105 324 219 Other operating revenues 362 783 1,345 Total other operating income 497 1,154 1,987 Other operating expenses Losses on sales of intangible assets and PP&E –17 –74 –509 Losses on sales of investments and operations 1) –330 –130 –96 Write-down of goodwill 2) –275 –12,966 — Other operating expenses 3) –43 –115 –979 Total other operating expenses –665 –13,285 –1,584 1) Includes divestments presented in Note E2, “Business combinations.” 2) For more information about the write-down of goodwill, see Note C1, “Intangible assets.” 3) Includes revaluation of cash flow hedges of SEK 0 billion (SEK 0 billion in 2017 and SEK –0.9 billion in 2016) partly offset by result from trading activities. |
B5 Inventories
B5 Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
B5 Inventories | B5 Inventories 2018 2017 1) Raw materials, components, consumables and manufacturing work in progress 7,484 4,015 Finished products and goods for resale 9,667 9,273 Contract work in progress 12,104 12,259 Inventories, net 29,255 25,547 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” The amount of inventories, excluding contract work in progress, recognized as expense and included in Cost of sales was SEK 55,632 (58,901) million. Contract work in progress consists of costs incurred to date on standard and customised solutions where the performance obligations are yet to be fully delivered. These costs will be recognised as cost of sales when the related revenue is recognised in the Income statement. Reported amounts are net of obsolescence allowances of SEK 2,611 (2,425) million. Movements in obsolescence allowances 2018 2017 2016 Opening balance 2,425 2,412 2,555 Additions, net 1,079 1,319 725 Utilization –987 –1,210 –981 Translation differences 94 –91 113 Balances regarding acquired/divested businesses — –5 — Closing balance 2,611 2,425 2,412 |
B6 Customer contract related ba
B6 Customer contract related balances | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
B6 Customer contract related balances | B6 Trade receivables, customer finance, contract assets and contract liabilities 2018 2017 1) Customer finance credits 2,884 3,931 Trade receivables 51,172 48,105 Contract assets 13,178 13,120 Contract liabilities 29,348 29,076 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” Total trade receivables include SEK 140 (58) million balance relating to associated companies and joint ventures. Of the total Customer finance credits balance, SEK 1,704 (1,753) million is current. Revenue recognized in the period 2018 2017 Revenue recognized in the year relating to the opening contract liability balance 22,447 17,509 Revenue recognized relating to performance obligations satisfied in prior financial periods –1,148 –1,035 Revenue recognised in 2018 and 2017 relating to performance obligations satisfied or partially satisfied in prior financial periods is a net adjustment that relates to contract modifications, retrospective price adjustments, settlement and adjustments to variable consideration based on actual measurements concluded in the year. Transaction price allocated to the remaining performance obligations 2018 Aggregate amount of transaction price allocated to unsatisfied or partially satisfied performance obligations 104,519 The company expects to recognize approximately 80% of the transaction price allocated to the remaining performance obligations as revenue in 2019 and the remaining 20% as revenue in 2020. For all reporting periods prior to the transition date, the Company has elected the practical expedient not to disclose the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the entity expects to recognise the amount as revenue. For information about credit risk and impairment of customer contract related balances, see Note F1, “Financial risk management.” |
B7 Other current receivables
B7 Other current receivables | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
B7 Other current receivables | B7 Other current receivables 2018 2017 Prepaid expenses 2,101 2,546 Advance payments to suppliers 269 338 Derivatives with a positive value 1) 403 1,207 Taxes 16,862 15,291 Other 1,209 2,919 Total 20,844 22,301 1) See also Note F1, “Financial risk management.” |
B8 Trade payables
B8 Trade payables | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
B8 Trade payables | B8 Trade payables 2018 2017 Trade payables to associated companies and joint ventures 293 286 Trade payables, excluding associated companies and joint ventures 29,590 26,034 Total 29,883 26,320 |
B9 Other current liabilities
B9 Other current liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
B9 Other current liabilities | B9 Other current liabilities 2018 2017 1) Accrued interest 656 383 Accrued expenses 32,258 29,196 Of which employee-related 12,774 8,935 Of which supplier-related 10,920 10,491 Of which other 2) 8,564 9,770 Derivatives with a negative value 3) 887 926 Other 4) 5,090 4,800 Total 38,891 35,305 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” 2) Major balance relates to accrued expenses for customer projects. 3) See Note F1, “Financial risk management.” 4) Includes items such as VAT and withholding tax payables and other payroll deductions, and liabilities for goods received where the related invoice has not yet been received. |
C1 Intangible assets
C1 Intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
C1 Intangible assets | C1 Intangible assets 2018 Capitalized Goodwill IPR 1) Cost Opening balance 22,731 40,799 55,932 Acquisitions/capitalization 925 — 28 Balances regarding acquired/divested businesses 2) — 911 451 Sales/disposals –1,468 — –41 Reclassification 3) 1,505 — — Translation difference 26 1,584 1,731 Closing balance 23,719 43,294 58,101 Accumulated amortizations Opening balance –13,677 — –44,434 Amortizations –2,559 — –1,387 Sales/disposals 1,468 — 41 Translation difference — — –1,497 Closing balance –14,768 — –47,277 Accumulated impairment losses Opening balance –4,460 –12,984 –7,350 Impairment losses –254 –275 — Closing balance –4,714 –13,259 –7,350 Net carrying value 4,237 30,035 3,474 1) Intellectual property rights. 2) For more information on acquired/divested businesses, see Note E2, “Business combinations.” 3) Reclassification from inventory. Intangible assets 2017 Capitalized Goodwill IPR 1) Cost Opening balance 22,306 43,405 57,340 Acquisitions/capitalization 1,444 — 336 Balances regarding acquired/divested businesses 2) — –122 101 Sales/disposals –1,019 — –152 Translation difference — –2,484 –1,693 Closing balance 22,731 40,799 55,932 Accumulated amortizations Opening balance –12,015 — –44,262 Amortizations –2,681 — –1,667 Sales/disposals 1,019 — 152 Translation difference — — 1,343 Closing balance –13,677 — –44,434 Accumulated impairment losses Opening balance –2,215 –18 –5,331 Impairment losses –2,245 –12,966 –2,019 Closing balance –4,460 –12,984 –7,350 Net carrying value 4,593 27,815 4,148 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 30.0 (27.8) billion and is allocated to the operating segments Networks, with SEK 25.7 billion, Digital Services, with SEK 3.1 billion and segment Emerging Business and Other, with SEK 1.2 billion. Segment Managed Services does not carry goodwill. More information is disclosed in Note B1, “Segment information.” Write-down during 2018 In Digital Services there was an impairment write-down of SEK 0.3 billion related to capitalized development expenses triggered by a change in the Business Support System (BSS) strategy, which is reported on line item Research and development expenses. In segment Emerging Business and Other for the Cash Generating Unit, CGU, Edge Gravity there was a goodwill impairment write-down of SEK 0.3 billion triggered by a change in business strategy, which is reported on line item Other operating expenses. There is no remaining goodwill for this CGU. Write-down during 2017 The impairment write-down of SEK 13.0 billion was triggered by the focused business strategy and the new organizational structure implemented and externally communicated during the year. In Digital Services the strategy was shifted from a services-lead to a product-lead strategy, and actions include accelerating the introduction of the new products, streamlining the services organization and tightening the contract scoping as the sales of legacy products and related services decline in 2017. For the Media Business strategic opportunities was explored. These changes have significantly impacted the approved business plans and have had a significant impact on the estimated future cash flows used for calculating the recoverable amounts. Goodwill allocation The goodwill allocation has not changed since last year when a reallocation of goodwill was made between the different Cash Generating Units, CGUs. The goodwill increase during the year through acquisitions has been allocated to CGU Digital Services and CGU EMODO, within segment Emerging Business and Other. Impairment tests Each operating segment is a CGU, except for segment Emerging Business and Other which consists of five CGUs. 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 five-year business plans approved by management. Except for one CGU within segment Emerging Business and Other, where fair value less cost of disposal has been used. Estimation of future cash flows includes assumptions mainly for the following key financial parameters: • Sales growth • Development of operating income (based on operating margin or cost of goods sold and operating expenses relative to sales) • 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 2019–2023 for key industry parameters: • By 2023, less than 35 years after the introduction of digital mobile technology, it is predicted that there will be 8.8 billion mobile subscriptions. • The number of mobile subscriptions is estimated to grow from around 8.0 billion by the end of 2018 to around 8.8 billion by the end of 2023. Out of all mobile subscriptions, 6.9 billion will be associated with a smartphone. The number of 5G subscriptions is forecasted to reach 1 billion by the end of 2023. • By 2023, over 30 billion connected devices are forecasted, of which around 20 billion will be related to Internet of Things, IoT. Connected IoT devices include connected cars, machines, meters, sensors, point-of-sale • Mobile data traffic volume is estimated to increase by around four times in the period 2018–2023. The mobile traffic is driven by smartphone users and video traffic. Smartphone traffic will grow by around four times, and mobile video traffic is forecast to grow by around 40% annually through 2023 to account for approximately 75% of all mobile data traffic. The assumptions are also based upon information gathered in the Company’s long-term strategy process, including assessments of new technology, the Company’s competitive position and new types of business and customers, driven by the continued integration of telecom and data. For the value in use method the impairment testing is based on specific estimates for the first five years and with a reduction of nominal annual growth rate to an average GDP growth of 1% (1%) per year thereafter. An after-tax after-tax For the CGU Media Solutions the fair value less cost of disposal method has been used, which has been classified as level 3 in the fair value hierarchy. The Company’s discounting is based on after-tax after-tax before-tax before-tax |
C2 Property, plant and equipmen
C2 Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
C2 Property, plant and equipment | C2 Property, plant and equipment 2018 Real Machinery and other Other equipment, Construction in progress Total Cost Opening balance 6,510 3,819 30,614 1,608 42,551 Additions 11 124 1,976 1,864 3,975 Balances regarding acquired/divested businesses — –11 –116 — –127 Sales/disposals –484 –649 –2,430 –332 –3,895 Reclassifications 566 8 1,707 –2,281 — Translation difference 241 81 718 12 1,052 Closing balance 6,844 3,372 32,469 871 43,556 Accumulated depreciation Opening balance –3,529 –3,288 –21,552 — –28,369 Depreciations –425 –211 –2,639 — –3,275 Balances regarding divested businesses — 5 71 — 76 Sales/disposals 393 615 1,911 — 2,919 Reclassification — 1 –1 — — Translation difference –142 –70 –559 — –771 Closing balance –3,703 –2,948 –22,769 — –29,420 Accumulated impairment losses Opening balance –241 –64 –1,020 — –1,325 Impairment losses –119 –22 –427 — –568 Sales/disposals 78 20 557 — 655 Translation difference –10 — –39 — –49 Closing balance –292 –66 –929 — –1,287 Net carrying value 2,849 358 8,771 871 12,849 Contractual commitments for the acquisition of property, plant and equipment as per December 31, 2018, amounted to SEK 366 (350) million. In 2018 impairment losses have been made of SEK 0.6 (2.2) billion, where SEK 1.2 billion in 2017 were related to the divest and sale of the ICT center in Canada, as rapid technology development allows the Company to consolidate test activities to the two remaining centers in Sweden. The impairment loss of SEK 0.6 (2.2) billion by segment was Networks SEK 0.3 (1.0) billion, Digital Services SEK 0.2 (0.7) billion, Managed Services SEK 0.0 (0.1) billion and Emerging Business and Other SEK 0.0 (0.4) billion. Property, plant and equipment 2017 Real Machinery and other Other equipment, Construction in progress Total Cost Opening balance 7,132 4,286 33,134 2,648 47,200 Additions 150 183 1,317 2,227 3,877 Balances regarding acquired/divested businesses –9 –134 –12 — –155 Sales/disposals –1,323 –457 –5,387 –185 –7,352 Reclassifications 757 56 2,226 –3,039 — Translation difference –197 –115 –664 –43 –1,019 Closing balance 6,510 3,819 30,614 1,608 42,551 Accumulated depreciation Opening balance 1) –3,528 –3,629 –22,951 — –30,108 Depreciations –458 –279 –3,366 — –4,103 Balances regarding divested businesses 9 85 11 — 105 Sales/disposals 349 442 4,263 — 5,054 Translation difference 99 93 491 — 683 Closing balance –3,529 –3,288 –21,552 — –28,369 Accumulated impairment losses Opening balance 1) –144 –25 –189 — –358 Impairment losses –297 –42 –1,872 — –2,211 Sales/disposals 200 4 1,050 — 1,254 Translation difference — –1 –9 — –10 Closing balance –241 –64 –1,020 — –1,325 Net carrying value 2,740 467 8,042 1,608 12,857 1) The opening balances have been reclassified compared to the Annual Report 2017 between accumulated depreciation and accumulated impairment losses with an amount of SEK 233 million. The total accumulated depreciation changed from SEK –30,341 to –30,108 million and the total accumulated impairment losses changed from SEK –125 to –358 million. The amount is divided between the different categories with SEK 101 million on Real estate, SEK 22 million on Machinery and other technical assets, and SEK 110 million on Other equipment, tools and installations. Based on IAS 1 this reclassification is considered not to be material and have had no impact on the financial statements. |
C3 Leasing
C3 Leasing | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
C3 Leasing | C3 Due to replacement of former lease contract with operating lease contract the Company has from 2016 no finance leases. As of December 31, 2018, future minimum lease payment obligations were distributed as follows: Future minimum lease payment obligations Operating 2019 3,088 2020 2,603 2021 2,126 2022 1,311 2023 1,033 2024 and later 3,208 Total 13,369 Expenses in 2018 for leasing of assets were SEK 4,100 (4,194) million, of which variable expenses comprised SEK 125 (101) million. The leasing contracts vary in length from 1 to 13 years. The Company’s lease agreements normally do not include any contingent rents. In the few cases they occur, they relate to charges for heating linked to the oil price index. Most of the leases of real estate contain terms of renewal, giving the Company the right to prolong the agreement in question for a predefined period of time. Leases with the Company as lessor Leasing income relates to subleasing of real estate as well as equipment provided to customers under leasing arrangements. These leasing contracts vary in length from 1 to 15 years. At December 31, 2018, future minimum payment receivables were distributed as follows: Future minimum payment receivables Operating 2019 105 2020 100 2021 101 2022 98 2023 97 2024 and later 104 Total 605 Leasing income in 2018 was SEK 96 (44) million. |
D1 Provisions
D1 Provisions | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
D1 Provisions | D1 Provisions Restructuring Customer Suppliers Warranty Other Total 2018 Opening balance 4,043 2,642 1,613 158 1,423 9,879 Additions 3,539 8,532 214 401 1,024 13,710 Reversal of excess amounts –408 –236 –15 –20 –46 –725 Negative effect on Income statement 12,985 Utilization/Cash out –4.148 –1,979 –264 –257 –287 –6,935 Reclassifications 120 — 10 72 –112 90 Translation difference 163 –43 1 9 –141 –11 Closing balance 3,309 8,916 1,559 363 1,861 16,008 2017 1) Opening balance 4,163 74 134 211 1,738 6,320 Additions 5,448 4,105 1,885 242 799 12,479 Reversal of excess amounts –207 — –90 –2 –63 –362 Negative effect on Income statement 12,117 Utilization/Cash out –5,327 –1,532 –262 –267 –833 –8,221 Reclassifications 1 –10 –50 –25 –59 –143 Translation difference –35 5 –4 –1 –159 –194 Closing balance 4,043 2,642 1,613 158 1,423 9,879 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” Provisions will fluctuate over time depending on business mix, market mix and technology shifts. Risk assessment in the ongoing business is performed monthly to identify the need for new additions and reversals. During certain years the Company undertakes restructuring activities that may require recognition of provisions. Management uses its best judgment to estimate provisions based on this assessment. Under certain circumstances, provisions are no longer required due to outcomes being more favorable than anticipated, which affect the provisions balance as a reversal. In other cases, the outcome can be negative, and if so, a charge is recorded in the income statement. For 2018, new or additional provisions amounting to SEK 13.7 billion were made, and SEK 0.7 billion of provisions were reversed. The actual cash outlays for 2018 were SEK 6.9 billion compared with the estimated SEK 6.0 billion. The expected total cash outlays in 2019 are approximately SEK 10.0 billion. Of the total provisions, SEK 5.5 (3.6) billion is classified as non-current. Restructuring provisions In 2018, SEK 3.5 billion in provisions were made and SEK 0.4 billion were reversed due to a more favorable outcome than expected. The scope of the structural efficiency measures involves service delivery, supply and manufacturing, R&D and Selling and administrative expenses. The cash outlays for restructuring provisions were SEK 4.1 billion for the full-year, compared with the expected SEK 3.0 billion. The cash outlays for the full-year also includes provisions identified and paid out during 2018. The cash outlays for 2019 for these provisions are estimated to total approximately SEK 2.1 billion. Customer related Customer related provision consists of provision for onerous customer contracts. During 2018, new provisions amounting to SEK 8.5 billion were made for onerous customer contracts where it is probable that expected costs will exceed revenue for the remaining duration of the contracts. SEK 5.9 billion of this amount relates to the reshape of BSS business, where SEK 3.1 billion is treated as restructuring charges in the income statement. The cash outlays were SEK 2.0 billion in 2018 compared to the estimated of SEK 1.9 billion. For 2019, the cash outlays for these provisions are estimated to total approximately SEK 6.0 billion. Supplier related Supplier related provisions include provision for supplier claims/guarantees. During 2018, new provisions amounting to SEK 0.2 billion were made and SEK 0.0 billion were reversed due to more favorable outcome. The cash outlays were SEK 0.3 billion in 2018 compared to the estimated of SEK 0.2 billion. For 2019, the cash outlays for this provision is estimated to total approximately SEK 0.9 billion. Warranty provisions Warranty provisions are based on historic quality rates for established products as well as estimates regarding quality rates for new products and costs to remedy the various types of faults predicted. These provisions do not include costs for service in additions within customer contracts that are accounted for as separate performance obligations. Provisions amounting to SEK 0.4 billion were made. The actual cash outlays for 2018 were SEK 0.3 billion, compared to the expected SEK 0.2 billion. The cash outlays of warranty provisions during year 2019 are estimated to total approximately SEK 0.3 billion. Other provisions Other provisions include provisions for tax issues, litigations, excess premises and other. During 2018, new provisions amounting to SEK 1.0 billion were made and SEK 0.0 billion were reversed due to a more favorable outcome. The cash outlays were SEK 0.3 billion in 2018 compared to the estimate of SEK 0.7 billion. For 2019, the cash outlays for other provisions are estimated to total approximately SEK 0.6 billion. |
D2 Contingent liabilities
D2 Contingent liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
D2 Contingent liabilities | D2 Contingent liabilities 2018 2017 Contingent liabilities 1,638 1,561 Total 1,638 1,561 Contingent liabilities assumed by the Company include guarantees of loans to other companies of SEK 26 (24) million. Ericsson has SEK 0 (0) million issued to guarantee the performance of a third-party. All ongoing legal and tax proceedings have been evaluated, their potential economic outflows and probability estimated and necessary provisions made. In Note 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. Financial guarantees for third-parties amounted to SEK 42 (80) million as of December 31, 2018. The maturity date for the majority of the issued guarantees occurs in 2020 at the latest. The Company has been voluntarily cooperating since 2013 with an investigation by the United States Securitiesand Exchange Commission (SEC) and, since 2015, with an investigation by the United States Department of Justice (DOJ) into Ericsson’s compliance with the U.S. Foreign Corrupt Practices Act (FCPA). The Company has identified facts that are relevant to the investigations. These facts have been shared with the authorities by the Company. The Company continues to cooperate with the SEC and the DOJ and is engaged in discussions with them to find a resolution. While the length of these discussions cannot be determined, based on the facts that the Company has shared with the authorities, it believes that the resolution of these matters will likely result in monetary and other measures, the magnitude of which cannot be estimated currently but may be material. In April 2018, the Company, the present President and CEO and the Chief Financial Officer of Ericsson as well as three former executives were named defendants in a putative class action filed in the United States District Court for the Southern District of New York. The complaint alleges violations of United States securities laws, principally in connection with service revenues and recognition of expenses on long-term service projects. In December 2018 Ericsson filed a motion to dismiss the complaint. In January 2019, the plaintiff filed an amended complaint which Ericsson is currently evaluating. 2017, IV filed additional lawsuits in the Eastern District of Texas accusing Ericsson and some of Ericsson’s U.S customers of infringing 10 U.S. Patents. In February 2019, a jury awarded IV damages of USD 43 million in one of those lawsuits. Ericsson disagrees with the jury’s verdict and intends to appeal. Separately, the Patent Trial and Appeal Board has instituted review of the patents that were the subject of the February 2019 trial, following its findings that there is a reasonable likelihood that those patents are unpatentable. The next case is currently set to go to trial in May 2019. |
D3 Assets pledged as collateral
D3 Assets pledged as collateral | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
D3 Assets pledged as collateral | D3 Assets pledged as collateral 2018 2017 Chattel mortgages 1) 5,328 4,740 Bank deposits 353 475 Total 5,681 5,215 1) See also Note G1, “Post-Employment benefits.” |
D4 Contractual obligations
D4 Contractual obligations | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
D4 Contractual obligations | D4 Contractual obligations 2018 Payment due by period SEK billion <1 1–3 3–5 >5 Total Current and non-current 1) 2) 2.3 14.0 11.2 6.6 34.1 Operating leases 3) 3.1 4.8 2.3 3.2 13.4 Other non-current 0.4 2.5 0.1 1.3 4.3 Purchase obligations 4) 5.7 1.9 0.1 — 7.7 Trade payables 29.9 — — — 29.9 Commitments for customer finance 5) 30.3 — — — 30.3 Total 71.7 23.2 13.7 11.1 119.7 1) Including interest payments, see also Note F2, “Financial income and expenses.” 2) See also Note F4, “Interest-bearing liabilities.” 3) See also Note C3, “Leasing.” 4) The amounts of purchase obligations are gross, before deduction of any related provisions. 5) See also Note F1, “Financial risk management.” For information about financial guarantees, see Note D2, “Contingent liabilities.” |
E1 Equity
E1 Equity | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
E1 Equity | E1 Capital stock 2018 Capital stock at December 31, 2018, consisted of the following: Capital stock Parent Company Number of Capital stock Class A shares 261,755,983 1,309 Class B shares 3,072,395,752 15,363 Total 3,334,151,735 16,672 The capital stock of the Parent Company is divided into two classes: Class A shares (quota value SEK 5.00) and Class B shares (quota value SEK 5.00). Both classes have the same rights of participation in the net assets and earnings. Class A shares, however, are entitled to one vote per share while Class B shares are entitled to one tenth of one vote per share. At December 31, 2018, the total number of treasury shares was 37,057,039 (50,265,499 in 2017 and 62,192,390 in 2016) Class B shares. Reconciliation of number of shares Number of Capital stock Number of shares Jan 1, 2018 3,334,151,735 16,672 Number of shares Dec 31, 2018 3,334,151,735 16,672 For further information about the number of shares, see the chapter Share information. Dividend proposal The Board of Directors will propose to the Annual General Meeting 2019 a dividend of SEK 1.00 per share (SEK 1.00 in 2017 and SEK 1.00 in 2016). Additional paid in capital This relates to payments made by owners and includes share premiums paid. Retained earnings Retained earnings, including net income for the year, comprise the earned profits of the Parent Company and its share of net income in subsidiaries, joint ventures and associated companies. Retained earnings also include: Remeasurements related to post-employment benefits Actuarial gains and losses resulting from experience-based events and changes in actuarial assumptions, fluctuations in the effect of the asset ceiling, and adjustments related to the Swedish special payroll taxes. Revaluation of other investments in shares and participations The fair value reserve comprises the cumulative net change in the fair value of available-for-sale Cumulative translation adjustments The cumulative translation adjustments comprise all foreign currency differences arising from the translation of the financial statements of foreign operations and changes regarding revaluation of excess value in local currency as well as from the translation of liabilities that hedge the Company’s net investment in foreign subsidiaries. Non-controlling Equity in a subsidiary not attributable, directly or indirectly, to a parent. |
E2 Business combinations
E2 Business combinations | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
E2 Business combinations | E2 Acquisitions and divestments Acquisitions Acquisitions 2016–2018 2018 2017 2016 Total consideration, including cash 1,314 62 920 Net assets acquired Cash and cash equivalents 94 — 139 Property, plant and equipment 4 12 19 Intangible assets 481 101 817 Investments in associates 64 — — Other assets 254 1 290 Other liabilities –494 25 –290 Total identifiable net assets 403 139 975 Goodwill 1) 911 –77 –55 Total 1,314 62 920 Acquisition-related costs 2) 24 49 4 1) Of which SEK 911 (0) million was acquired goodwill and SEK 0 (–77) million refers to a reclassification when the preliminary purchase price allocations were finalized between the years. 2) Acquisition-related costs are included in Selling and administrative expenses in the consolidated income statement. In 2018, Ericsson made acquisitions with a negative cash flow effect amounting to SEK 1.220 (62) million. The acquisitions presented below are not material, but the Company gives the information to provide the reader a summarized view of the content of the acquisitions made. The acquisitions consist primarily of: CENX: US-based VidScale: Placecast: In order to finalize a Purchase price allocation all relevant information needs to be in place. Examples of such information are final consideration and final opening balances, they may remain preliminary for a period of time due to for example adjustments of working capital, tax items or decisions from local authorities. Divestments Divestments 2016–2018 2018 2017 2016 Proceeds 226 459 25 Net assets disposed of Property, plant and equipment 55 62 36 Investments in joint ventures and associated companies 114 — 15 Intangible assets 30 — — Goodwill — 45 — Other assets 809 219 5 Provisions, incl. post-employement benefits –43 — — Other liabilities –571 –180 –114 Total net assets 394 146 –58 Net gains/losses from divestments –168 313 83 Cash flow effect 226 459 25 In 2018, the Company made divestments with a cash flow effect amounting to SEK 226 (459) million. The divestments consist primarily of: Ericsson Local Services AB (LSS) Excellence Field Factory Acquisitions 2016–2018 Company Description Transaction date CENX A US based service assurance technology company. Sep 2018 VidScale A US company providing cloud-based Content Delivery Network (CDN) solutions. Mar 2018 Placecast A US company that leverages deterministic carrier data to deliver better audience, verification, and insight solutions. Feb 2018 Nodeprime A US based software development company with an infrastructure management platform. Apr 2016 Ericpol A software development company in Poland within telecommunications. Apr 2016 FYI Television A US based premier entertainment metadata and rich media content supplier. Jan 2016 Divestments 2016–2018 Company Description Transaction date Ericsson Local Services AB (LSS) A divestment of the Local Services company in Sweden. Aug 2018 Excellence Field Factory A divestment of the Spanish fiber service operations. Jun 2018 Power Modules A divestment of the power modules business. Sep 2017 Birla Ericsson Optical Ltd A divestment of the shares in the associated company. Jul 2016 |
E3 Associated companies
E3 Associated companies | 12 Months Ended |
Dec. 31, 2018 | |
Investments accounted for using equity method [abstract] | |
E3 Associated companies | E3 Equity in associated companies 2018 2017 Opening balance 624 775 Investments 64 — Share in earnings 58 24 Distribution of capital stock — –95 Taxes –5 –3 Dividends –30 –77 Divested business –114 — Translation difference 14 — Closing balance 611 624 |
F1 Financial risk management
F1 Financial risk management | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
F1 Financial risk management | F1 The Company’s financial risk management is governed by a policy approved by the Board of Directors. The Finance Committee of the Board of Directors is responsible for overseeing the capital structure and financial management of the Company, approving certain matters (such as investments, customer finance commitments, guarantees and borrowing) and continuously monitoring the exposure to financial risks. The Company defines its managed capital as the total Company equity. For the Company, a robust financial position with a strong equity ratio, solid investment grade rating, low leverage and ample liquidity is deemed important. This provides financial flexibility and independence to operate and manage variations in working capital needs as well as to capitalize on business opportunities. The Company’s overall capital structure should support the financial targets. The capital structure is managed by balancing equity, debt financing and liquidity in such a way that the Company can secure funding of operations at a reasonable cost of capital. Regular borrowings are complemented with committed credit facilities to give additional flexibility to manage unforeseen funding needs. The Company strives to deliver positive free cash flow. The Company’s capital objectives are: • To maintain an equity ratio above 40% • To maintain a positive net cash position larger than the pension liability • To restore a solid investment grade rating by Moody’s (Baa2) and Standard & Poor’s (BBB). Capital objectives-related information, SEK billion 2018 2017 1) Capital 88 98 Equity ratio 32.7 % 37.5 % Free cash flow 3.0 5.1 Positive net cash 35.9 34.7 Post-employment benefits 28.7 25.0 Credit rating Moody’s Ba2, stable Ba2, negative Standard & Poor’s BB+, stable BB+, stable 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” In July 2018, Moody’s announced that they had changed their Corporate Credit Rating outlook from negative to stable. The Company has a treasury function with the principal role to ensure that appropriate financing is in place through loans and committed credit facilities, actively managing the Company’s liquidity as well as financial assets and liabilities, and managing and controlling financial risk exposures in a manner consistent with underlying business risks and financial policies. Hedging activities, cash management and insurance management are largely centralized to the treasury function in Stockholm. The Company also has a customer finance function with the main objective to find suitable third-party financing solutions for customers and to minimize recourse to the Company. To the extent that customer loans are not provided directly by banks, the Parent Company provides or guarantees vendor credits. The customer finance function monitors the exposure from outstanding vendor credits and credit commitments. The Company classifies financial risks as: • Foreign exchange risk • Interest rate risk • Credit risk • Liquidity and refinancing risk • Market price risk in own and other equity instruments. The Board of Directors has established risk limits for defined exposures to foreign exchange and interest rate risks as well as to political risks in certain countries. For further information about accounting policies, see Note A1, “Significant accounting policies.” Foreign exchange risk The Company is a global company with sales mainly outside Sweden. Sales and incurred costs are to a large extent denominated in currencies other than SEK and therefore the financial results of the Company are impacted by currency fluctuations. The Company reports the financial statements in SEK. Movements in exchange rates between currencies that affect these statements are impacting the comparability between periods. Line items, primarily sales, are impacted by translation exposure incurred when converting foreign entities’ financial statements into SEK. Line items and profitability, such as operating income are impacted by transaction exposure incurred when financial assets and liabilities, primarily trade receivables and trade payables, are initially recognized and subsequently remeasured due to change in foreign exchange rates. The table below presents the net exposure for the largest currencies impact on sales and also net transaction exposure of these currencies on profitability. Currency exposure, SEK billion Exposure Sales Sales Sales net Incurred Net currency exposure exposure exposure exposure 1) exposure USD 59.9 34.0 93.9 –3.8 30.2 EUR 23.8 12.2 36.0 –4.2 8.0 CNY 12.4 0.0 12.4 –7.7 –7.7 INR 8.9 –0.1 8.8 –1.0 –1.1 AUD 7.3 –0.4 6.9 3.7 3.3 JPY 6.8 0.0 6.8 4.4 4.4 BRL 6.8 0.0 6.8 0.8 0.8 SAR 5.3 0.6 5.9 2.1 2.7 GBP 6.1 –1.0 5.1 1.3 0.3 1) Transactions in foreign currency – internal sales, internal purchases, external purchases. Translation exposure Translation exposure relates to sales and cost incurred in foreign entities when converted into SEK upon consolidation. These exposures cannot be addressed by hedging, but as the income statement is translated using weighted average rate, the impact of volatility in foreign currency rates is reduced. Transaction exposure Transaction exposure relates to sales and cost incurred in non-reporting 12-month Outstanding internal loans that are funding hedged net future sales and costs incurred are revalued against “Financial expense.” Hedge accounting is not applied and the gains and losses due to the hedge are recognized immediately. The sensitivity in “Financial expense” in relation to this revaluation is dependent on changes in foreign exchange rates, forecasts, seasonality and hedging policy. USD is the Company’s largest exposure and at year-end According to Company policy, transaction exposure in subsidiaries’ balance sheets (i.e., trade receivables and payables and customer finance receivables) should be fully hedged, except for non-tradable Foreign exchange exposures in balance sheet items are hedged through offsetting balances or derivatives. Interest rate risk The Company is exposed to interest rate risk through market value fluctuations in certain balance sheet items and through changes in interest revenues and expenses. The net cash position was SEK 35.9 (34.7) billion at the end of 2018, consisting of cash, cash equivalents and interest-bearing securities of SEK 69.0 (67.7) billion, offset by interest-bearing liabilities of SEK 33.1 (33.0) billion. Sensitivity analysis The Company uses the 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 1-day The treasury function operates under two mandates. In the liquidity management activity, the treasury function has a mandate to deviate from floating interest on net liquidity and take foreign exchange positions up to an aggregated risk of VaR SEK 45 million given a confidence level of 99% and a 1-day In the asset-liability management activity, the treasury function manages the interest rate risk by matching fixed and floating interest rates in interest- bearing balance sheet items. The policy is that the net sensitivity on a 1 basis point move on interest-bearing assets matching interest-bearing liabilities, taking derivatives into consideration, is less than SEK 10 million. The average exposure during 2018 was SEK 1.81 million per basis point shift. Sensitivity to interest rate increase of 1 basis point, SEK million 1) < 3M 3–12M 1–3Y 3–5Y >5Y Total Interest-bearing assets 0 –3 0 –3 –1 –7 Interest-bearing liabilities 2) 0 2 0 2 3 7 Derivatives 0 2 –1 –2 2 1 Total 0 1 –1 –3 4 1 1) Excluding changes in credit risk reported in OCI. 2) Borrowings are included as they are designated FVTPL in 2018. In prior years, borrowings were included due to fair value hedge accounting. Outstanding derivatives Outstanding derivatives 1) 2018 2017 Fair value Asset Liability Asset Liability Currency derivatives Maturity within 3 months 226 207 130 542 Maturity between 3 and 12 months 38 46 215 147 Maturity between 1 and 3 years — 145 25 — Maturity between 3 and 5 years 3 194 754 — Total 267 592 1,125 689 Interest rate derivatives Maturity within 3 months 16 32 10 35 Maturity between 3 and 12 months 8 15 1 — Maturity between 1 and 3 years 10 3 34 105 Maturity between 3 and 5 years 44 222 83 54 Maturity of more than 5 years 58 23 39 43 Total 136 2) 295 168 2) 237 Of which designated in fair value hedge relations — — 44 — 1) Prior to 2018, some of the derivatives hedging non-current non-current 2) Of which SEK 0 (86) million is reported as non-current When managing the interest rate exposure, the Company uses derivative instruments, such as interest rate swaps. Prior to 2018, derivative instruments used for converting fixed rate debt into floating rate debt were designated as fair value hedges. 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 or an invoice is generated in the source system. These are based on the credit risk set on the customer. Credit blocks appear if past due receivables are higher than permitted levels. Release of a credit block requires authorization. Letters of credits are used as a method for securing payments from customers operating in emerging markets, in particular in markets with unstable political and/or economic environments. By having banks confirming the letters of credit, the political and commercial credit risk exposures to the Company are mitigated. Impairment of trade receivables and contract assets in 2018 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 depends 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 for 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. There were no significant changes to the model during the year. Trade receivables and contract assets together amounted to SEK 64,350 million as of December 31, 2018. Provisions for expected credit losses on trade receivables and contract assets amounted to SEK 4,123 million as of December 31, 2018. The Company’s write-offs have historically been low. The allowance increased during 2018 due to additional invoices becoming past due and worsening aging profile of outstanding receivables from certain customers. This was offset by write-offs of SEK 890 million during the year due to the Company having no reasonable expectation of collection. Of these write-offs, SEK 61 million are still subject to enforcement. Movements in allowances for impairment of trade receivables and contract assets 2018 Opening balance 3,335 Adjustment due to IFRS 9 1) 1,240 Opening balance, adjusted 4,575 Losses recognized in profit or loss 420 Write-offs –890 Translation difference 18 Closing balance 2) 4,123 1) For more information see Note A3, “Changes in accounting policies.” 2) Of which SEK 15 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”) and does not include any major concentrations of credit risk by customer or by geography. The 10 largest customers represented 53% (47%) of the total trade receivables and contract assets in 2018. Aging analysis of gross values by risk category at December 31, 2018 Days past due 1–90 91–180 181–360 >360 Total Country risk: Low 1,387 350 139 498 2,374 Country risk: Medium 1,596 540 309 1,724 4,169 Country risk: High 927 614 699 1,630 3,870 Total past due 3,910 1,504 1,147 3,852 10,413 Impairment of trade receivables and contract assets in prior years Trade receivables and contract assets amounted to SEK 61,225 million as of December 31, 2017. In prior years, contract assets were presented within trade receivables, for more information see Note A3, “Changes in accounting policies.” Provisions for expected losses were regularly assessed according to IAS 39 and amounted to SEK 3,335 million as of December 31, 2017. In 2017, trade receivables were reassessed as part of the provision and adjustments related to customer projects. Movements in allowances for impairment of trade receivables and contract assets 2017 Opening balance 1,403 Additions 3,544 Utilized –1,485 Reversal of excess amounts –48 Reclassification –66 Translation difference –13 Closing balance 3,335 Aging analysis as per December 31, 2017 1) Trade receivables Allowances Of which neither impaired nor past due 54,474 — Of which impaired, not past due 15 –15 Of which past due in the following time intervals less than 90 days 2,924 — 90 days or more 3,769 — Of which past due and impaired in the following time intervals less than 90 days 220 –220 90 days or more 3,100 –3,100 Total 64,502 –3,335 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” Customer finance credit risk All major commitments to finance customers are made only after approval by the Finance Committee of the Board of Directors, according to the established credit approval process. Prior to the approval of new facilities reported as customer finance, an internal credit risk assessment is conducted in order to assess the credit rating of each transaction for political and commercial risk. The credit risk analysis is made by using an assessment tool, where the political risk rating is identical to the rating used by all Export Credit Agencies within the OECD. The commercial risk is assessed by analyzing a large number of parameters, which may affect the level of the future commercial credit risk exposure. The output from the assessment tool for the credit rating also includes an internal pricing of the risk. This is expressed as a risk margin per annum over funding cost. The reference pricing for political and commercial risk, on which the tool is based, is reviewed using information from Export Credit Agencies and prevailing pricing in the bank loan 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, 2018, the total amount payable to the Company under customer finance credits was SEK 4,247 (4,223) million. The carrying value of these assets was SEK 2,883 (3,931) million as of December 31, 2018, which represents the maximum exposure to credit risk on these assets. Customer finance is arranged for infrastructure projects in different geographic markets. As of December 31, 2018, there were a total of 94 (79) customer finance arrangements originated by or guaranteed by the Company. The five largest facilities represented 62% (64%) of the customer finance exposure in 2018. As of December 31, 2018, Middle East and Africa made up 57% (56%) of the oustanding exposure while South East Asia, Oceania and India made up 15% (24%). As of December 31, 2018, the Company also had unutilized customer finance commitments of SEK 30,270 (9,706) 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 Information about financial guarantees related to customer finance is included in Note D2, “Contingent liabilities.” The table below summarizes the Company’s outstanding customer finance as of December 31, 2018 and 2017. Outstanding customer finance credit risk exposure 1) 2018 2017 Fair value of customer finance credits 2) 2,883 3,931 Financial guarantees for third-parties 42 77 Accrued interest 21 14 Maximum exposure to credit risk 2,946 4,022 Less third-party risk coverage –331 –505 The Company’s risk exposure, less third-party risk coverage 2,615 3,517 1) This table has been adjusted to show the maximum exposure to credit risk. In prior years, impairments were not considered. 2) At December 31, 2017, the fair value of the customer finance credits was the same as the carrying value. Fair value assessment of customer finance credits in 2018 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 amounted to a net negative impact in the income statement of SEK 1,073 million in 2018, of which SEK 1,073 million is related to credits held as of December 31, 2018. This effect is presented within selling and administrative expenses and was mainly related to the Middle East, including Iran. Customer finance fair value reconciliation 2018 Opening balance 3,931 Additions 6,100 Disposals/repayments –6,200 Revaluation –1,073 Translation difference 126 Closing balance 2,884 Of which non-current 1,180 Impairment of customer finance credits in prior years Risk provisions related to customer finance risk exposures are only made upon events which occur after the financing arrangement has become effective and which are expected to have a significant adverse impact on the borrower’s ability and/or willingness to service the outstanding debt. These events can be political (normally outside the control of the borrower) or commercial, e.g. a borrower’s deteriorated creditworthiness. Movements in allowances for impairment of customer finance 2017 Opening balance 250 Additions 85 Utilized –3 Reversal of excess amounts –27 Translation difference –13 Closing balance 292 The effect of risk provisions and reversals for customer finance affecting the income statement amounted to a net negative impact of SEK 59 million in 2017. Credit losses amounted to SEK 24 million in 2017. Aging analysis as per December 31, 2017 Customer Allowances Of which neither impaired nor past due 1,841 — Of which impaired, not past due 2,029 –104 Of which past due in the following time intervals less than 90 days 4 — 90 days or more 99 — Of which past due and impaired in the following time intervals less than 90 days 29 –20 90 days or more 221 –168 Total 4,223 –292 Financial credit risk Financial instruments carry an element of risk in that counterparts may be unable to fulfill their payment obligations. This exposure arises in the investments in cash, cash equivalents, interest-bearing securities and from derivative positions with positive unrealized results against banks and other counterparties. The Company mitigates these risks by investing cash primarily in well-rated securities such as treasury bills, government bonds, commercial papers, and mortgage-covered bonds with short-term ratings of at least A-2/P-2 At December 31, 2018, 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. Credit exposure in derivative instruments was SEK 0.4 (1.3) billion. Transfers of financial assets Transfers where the Company has continuing involvement During 2018, there were no new financial assets transferred where the Company had continuing involvement. However, during 2016 the Company derecognized financial assets where it had continuing involvement. A repurchase of these assets would amount to SEK 207 (380) million. No assets or liabilities were recognized in relation to the continuing involvement. Liquidity risk The Company minimizes the liquidity risk by maintaining a sufficient cash position, centralized cash management, investments in highly liquid interest-bearing securities, and by having sufficient committed credit lines in place to meet potential funding needs. For information about contractual obligations, see Note D4, “Contractual obligations.” The current cash position is deemed to satisfy all short-term liquidity requirements as well as non-current Cash, cash equivalents and interest-bearing securities Remaining time to maturity SEK billion < 3 3–12 1–5 >5 Total Banks 32.2 0.4 0.0 0.0 32.6 Type of issuer/counterpart Governments 7.6 2.3 7.7 0.9 18.5 Corporates 2.2 0.0 0.0 0.0 2.2 Mortgage institutes 0.0 0.2 15.2 0.3 15.7 2018 42.0 2.9 22.9 1.2 69.0 2017 36.4 1.2 28.4 1.7 67.7 The instruments are classified as FVTPL or amortized cost. Cash, cash equivalents and interest-bearing securities are mainly held in SEK unless offset by EUR-funding. Refinancing risk Refinancing risk is the risk that the Company is unable to refinance outstanding debt under reasonable terms and conditions, or at all, at a given point in time. Debt financing is mainly carried out through borrowing in the Swedish and international debt capital markets. Bank financing is used for certain subsidiary funding and to obtain committed credit facilities. Funding programs 1) Amount Utilized Unutilized Euro Medium-Term Note program (USD million) 5,000 1,456 3,544 SEC Registered program (USD million) 2) 1,000 — 1) There are no financial covenants related to these programs. 2) Program amount indeterminate. In May 2018, the Company signed a multicurrency credit facility agreement equivalent to EUR 250 million with the European Investment Bank. The credit facility will mature five years after disbursement. The agreement will support research and development activities for 5G. Committed credit facilities Amount Utilized Unutilized Multi-currency revolving credit facility (USD million) 2,000 — 2,000 European Investment Bank (EIB) credit facility (EUR million) 250 — 250 Fair valuation of the Company’s financial instruments The Company’s financial instruments accounted for at fair value generally meet the requirements of level 1 valuation due to the fact that they are based on quoted prices in active markets for identical assets. Exceptions to this relates to: • OTC derivatives with an amount of gross SEK 0.5 (1.4) billion in relation to assets and gross SEK 1.0 (1.1) billion in relation to liabilities were valued based on references to other market data as currency or interest rates. These valuations fall under level 2 valuation as defined by IFRS. • Ownership in other companies and other financial investments where the Company neither has control nor significant influence. The amount recognized in these cases was SEK 2.5 (2.1) billion. These assets, classified as level 3 assets for valuation purposes, have been valued based on value in use technique. • Customer finance credits are classified as level 3 assets for valuation purposes and have been valued according to the model described above in “Customer finance credit risk.” • Trade receivables are classified as level 3 assets for valuation purposes. By definition, they have a term of less than 180 days. Therefore, the gross value less impairment allowances for expected credit losses is deemed to be equal to the fair value. Financial instruments carried at other than fair value 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. Offsetting financial assets and liabilities As required by IFRS, the Company has off set financial instruments. The related assets amounted to SEK 0.5 (1.4) billion, prior to offsetting of SEK 0.1 (0.1) billion, with a net amount of SEK 0.4 (1.3) billion recognized in the balance sheet. The related liabilities amounted to SEK 1.0 (1.0) billion, prior to offsetting of SEK 0.1 (0.1) billion, with a net amount of SEK 0.9 (0.9) billion recognized in the balance sheet. Market price risk in own shares and other listed equity investments The Company is exposed to fluctuations in its own share price (through stock purchase plans for employees) and other share-based compensation for employees and the Board of Directors. Some of the plans are share settled and some are cash settled as further disclosed in Note A1, “Significant accounting policies” and Note G3, “Share-based compensation.” Share-based plans for employees The obligation to deliver shares under the stock purchase plan and the 2017–2018 Long-term Variable Compensation Programs for the Executive Team (LTV) is covered by holding Ericsson Class B shares as treasury stock. A change in the share price will result in a change in social security charges, which represents a risk to the income statement. The cash flow exposure is hedged through the holding of Ericsson Class B shares as treasury stock to be sold to generate funds, which also cover social security payments. Cash settled plans to employees and the Board of Directors In the case of synthetic share programs (a cash settled program as defined in IFRS) to Board members and cash settled plans to employees, the Company is exposed to risks in relation to own share price, both with regard to compensation expenses and social security charges. The obligations to pay compensation amounts under the synthetic share-based compensations to the Board of Directors and employees are covered by a liability in the balance sheet. For further information about the stock purchase plan, LTV, the cash settled plans to employees and the synthetic share-based compensations to the Board of Directors, see Note G3, “Share-based payments.” Financial instruments, book value 2018 SEK billion Customer Trade Interest- Cash Borrowings Trade Other Other Other 2018 Note B6 B6 F3 H3 F4 B8 F3 B7 B9 Assets at fair value through profit or loss 2.9 30.2 15.2 2.5 0.4 51.2 Assets at amortized cost 0.4 4.2 4.6 Assets at fair value through OCI 51.2 51.2 Financial liabilities at fair value through profit or loss 1) –30.7 –0.9 –31.6 Financial liabilities at amortized cost –2.4 –29.9 –32.3 Total 2.9 51.2 30.6 19.4 –33.1 –29.9 2.5 0.4 –0.9 43.1 1) Financial instruments, book value 2017 1) SEK billion Customer Trade Interest- Cash Borrowings Trade Other Other Other 2017 Note B6 B6 F3 H3 F4 B8 F3 B7 B9 Assets at fair value through profit or loss 6.1 14.3 0.9 1.2 –0.9 21.6 Loans and receivables 3.9 48.1 0.3 3.2 5.0 60.5 Available-for-sale 25.4 1.3 26.7 Financial liabilities at amortized cost –33.0 –26.3 –59.3 Total 3.9 48.1 31.8 17.5 –33.0 –26.3 7.2 1.2 –0.9 49.5 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
F2 Financial income and expense
F2 Financial income and expenses | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
F2 Financial income and expenses | F2 Financial income and expenses 2018 2017 1) 2016 1) Financial Financial Financial Financial Financial Financial Contractual interest on financial assets –461 — –86 — 12 — Of which on financial assets at fair value through profit or loss –927 — –92 — –316 — Contractual interest on financial liabilities — –997 — –1,027 — –1,355 Of which on financial liabilities designated fair value through profit or loss — –530 — — — — Net gains/losses on: Instruments at fair value through profit or loss 2) 225 –817 –231 543 –68 –729 Of which included in fair value hedge relationships — — — 2 — 71 Of which designated fair value through profit or loss — –2,087 — — — — Assets at fair value through OCI –80 — — — — — Available for sale — — 40 — — — Loans and receivables — — –102 — –79 — Instruments at amortized cost — — — 72 — 218 Other financial income and expenses 1 –575 7 –431 — –292 Total –316 –2,389 –372 –843 –135 –2,158 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” 2) Excluding net loss from derivatives hedging operating assets and liabilities, SEK 128 million (net loss of SEK 451 million in 2017 and net loss of SEK 234 million in 2016), reported as Cost of sales. |
F3 Financial assets, non-curren
F3 Financial assets, non-current | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
F3 Financial assets, non-current | F3 non-current Financial assets, non-current, Other investments in Interest-bearing securities, non-current Derivatives, non-current Other financial assets, non-current Opening balance 1,279 25,105 86 5,811 Additions 398 50,190 — 632 Disposals/repayments/deductions –92 –51,353 –86 –210 Change in value in funded pension plans 1) — — — 492 Revaluation –72 40 — –3 Reclassification — — — –213 Translation difference 2 — — 50 Closing balance 1,515 23,982 — 6,559 Financial assets, non-current, Other investments in Interest-bearing securities, non-current Derivatives, non-current Other financial assets, non-current Cost Opening balance 2,516 7,586 — 4,648 Additions 146 54,687 86 503 Disposals/repayments/deductions –43 –37,241 — –375 Change in value in funded pension plans 1) — — — 1,300 Revaluation 99 73 — 27 Translation difference –50 — — –169 Closing balance 2,668 25,105 86 5,934 Accumulated impairment losses/allowances Opening balance –1,337 — — –206 Impairment losses/allowances –126 — — –1 Disposals/repayments/deductions 25 — — 77 Translation difference 49 — — 7 Closing balance –1,389 — — –123 Net carrying value 1,279 25,105 86 5,811 1) 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, 2018 | |
Text block [abstract] | |
F4 Interest-bearing liabilities | F4 As of December 31, 2018, the Company’s outstanding interest-bearing liabilities were SEK 33.1 (33.0) billion. Interest-bearing liabilities 2018 2017 Borrowings, current Current part of non-current 72 89 Other borrowings, current 2,183 2,456 Total borrowings, current 2,255 2,545 Borrowings, non-current Notes and bond loans 21,875 20,560 Other borrowings, non-current 8,995 9,940 Total borrowings, non-current 30,870 30,500 Total interest-bearing liabilities 33,125 33,045 Reconciliation of liabilities arising from financing activities 2018 2017 Opening balance 33,045 26,686 Adjustment due to IFRS 9 1) 31 — Adjusted opening balance 33,076 26,686 Cash flows Proceeds from issuance of borrowings 911 13,416 Repayment of borrowings –1,748 –4,830 Non-cash Effect of foreign exchange movement 2,813 –2,155 Revaluation due to changes in credit risk –207 — Other changes in fair value –28 –72 Reclassification 2) –1,692 — Closing balance 33,125 33,045 1) For more information see Note A3, “Changes in accounting policies.” 2) The borrowing was reclassified to other non-current In addition to the above numbers SEK 75 (201) million is allocated to the financing cash flow due to hedging derivatives. To secure long-term funding, the Company uses notes and bond programs together with bilateral research and development loans. All outstanding notes and bond loans are issued by the Parent Company under its Euro Medium Term Note (EMTN) program or under its U.S. Securities and Exchange Commission (SEC) Registered program. Bonds issued at a fixed interest rate are normally swapped to a floating interest rate using interest rate swaps under the Asset and liability management mandate described in Note F1, “Financial risk management.” Total weighted average interest rate cost for the long-term funding during the year was 1.74% (1.68%). Changes in fair value due to changes in credit risk in 2018 Borrowings managed by the Ericsson Internal Bank are designated FVTPL because they are managed on a fair value basis. Changes in fair value are recognized in the income statement, except for changes in fair value due to changes in credit risk which are recognized in other comprehensive income. Ericsson’s credit risk is calculated from the market value of the instruments traded on the credit market. For interest bearing securities not traded on the credit market, an average of the five latest pricing updates from the company’s core banks is used. The pricing updates are based on the credit markets view of Ericsson’s credit and therefore reflects a market price of the credit risk. Fair value hedge accounting in prior years In prior years, the outstanding EUR bonds and USD bond were revalued based on changes in benchmark interest rates according to the fair value hedge methodology stipulated in IAS 39 “Financial Instruments: Recognition and Measurement.” Notes, bonds and bilateral loans Issued-maturing Nominal Coupon Currency Maturity date Book value Changes in Cumulative Book value Unrealized hedge Notes and bond loans 2010–2020 1) 170 USD Dec 23, 2020 1,545 –37 24 1,394 2012–2022 1,000 4.125 % USD May 15, 2022 8,776 –68 19 8,180 2) 9 2017–2021 500 0.875 % EUR Mar 1, 2021 5,141 47 13 4,897 2) 7 2017–2024 500 1.875 % EUR Mar 1, 2024 5,087 –35 –43 4,862 2) –7 2017–2025 1) 150 USD Dec 22, 2025 1,326 –13 –13 1,227 Total notes and bond loans 21,875 –106 0 20,560 9 Bilateral loans 2012–2021 3) 98 USD Sep 30, 2021 860 –32 –1 805 2013–2020 4) 684 USD Nov 6, 2020 6,030 –66 –87 5,609 2017–2023 3) 220 USD Jun 15, 2023 1,959 –3 –3 1,797 Total bilateral loans 8,849 –101 –91 8,211 1) Private Placement, Swedish Export Credit Corporation (SEK). 2) Interest rate swaps were designated as fair value hedges. 3) Nordic Investment Bank (NIB), R&D project financing. 4) European Investment Bank (EIB), R&D project financing. |
G1 Post-employment benefits
G1 Post-employment benefits | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
G1 Post-employment benefits | G1 Ericsson sponsors a number of post-employment benefit plans throughout the Company, which are in line with market practice in each country. The year 2018 was characterized by an increase in discount rates in most plans outside Sweden. In total, financial assumption changes resulted in actuarial losses on defined benefit obligations of SEK 0.3 billion. The development of plan assets was lower than expected resulting in actuarial losses of SEK 3.0 billion. Swedish plans Sweden has both defined benefit and defined contribution plans based on collective agreement between the parties in the Swedish labor market: • A defined benefit plan, known as ITP 2 (occupational pension for salaried employees in manufacturing industries and trade), complemented by a defined contribution plan, known as ITPK (supplementary retirement benefits). This is a final salary-based plan. • A defined contribution plan, known as ITP 1, for employees born in 1979 or later. • A defined contribution plan ITP 1 or alternative ITP, for employees earning more than 10 income base amount and who have opted out of the defined benefit plan ITP 2, where rules are set by the Company and approved by each employee selected to participate. The Company has by far most of its Swedish pension liabilities under defined benefit plans which are funded to 49% (53%) through Ericsson Pensions-stiftelse (a Swedish Pension Foundation). The Pensionsstiftelse covers the liability up to the value of the defined benefit obligation based on Swedish GAAP calculations. There are no funding requirements for the Swedish plans. The disability and survivors’ pension part of the ITP-plan The benefit payments are made by the Company since the liability is growing and the necessary surplus therefore is not yet reached. For the unfunded plans the Company meets the payment obligation when it falls due. The responsibility for governance of the plans and the plan assets lies with the Company and the Pensionsstiftelse. The Swedish Pensionsstiftelse is managed on the basis of a capital preservation strategy and the risk profile is set accordingly. Traditional asset-liability matching (ALM) studies are undertaken on a regular basis to allocate within different asset classes. The plans are exposed to various risks, e.g., a sudden decrease in the bond yields, which would lead to an increase in the plan liability. A sudden instability in the financial market might also lead to a decrease in fair value of plan assets held by the Pensionsstiftelse, as the holdings of plan assets partly are exposed to equity markets; however, this may be partly offset by higher values in fixed income holdings. Swedish plans are linked to inflation and higher inflation will most likely lead to a higher liability. For the time being, inflation is a low risk factor to the Swedish plans as actual rate of inflation has not reached the ceiling target set by the Central Bank of Sweden. Multi-employer plans As before, the Company has secured the disability and survivors’ pension part of the ITP Plan through an insurance solution with the insurance company Alecta. Although this part of the plan is classified as a multi-employer defined benefit plan, it is not possible to get sufficient information to apply defined benefit accounting, as for most of the accrued pension benefits in Alecta, information is missing on the allocation of earnings process between employers. Full vesting is instead registered on the last employer. Alecta is not able to calculate a breakdown of assets and provisions for each respective employer, and therefore, the disability and survivors’ pension portion of the ITP Plan has been accounted for as a defined contribution plan. Alecta has a collective funding ratio which acts as a buffer for its insurance commitments to protect against fluctuations in investment return and insurance risks. Alecta’s target ratio is 140% and reflects the fair value of Alecta’s plan assets as a percentage of plan commitments, then measured in accordance with Alecta’s actuarial assumptions, which are different from those in IAS 19R. Alecta’s collective funding ratio was 142% (154%) as of December 31, 2018. The Company’s share of Alecta’s saving premiums is 0.4%; the total share of active members in Alecta are 1.9%. The expected contribution to the plan is SEK 74 million for 2019. 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 5.1 billion to PRI Pensionsgaranti. US plans The Company operates both defined contribution and defined benefit pension plans in the US, which are a combination of final salary pension plans and contribution-based arrangements. The final salary pension plans provide benefits to members in the form of a guaranteed level of pension payable for life. The level of benefits provided depends on members’ length of service and their salary in the final years leading up to retirement. Retirees generally do not receive inflationary increases once in payment. The other type of plan is a contribution-based pension plan, which provides a benefit determined using a “cash balance” approach. The balance is credited monthly with interest credits and contribution credits, based on a combination of current year salary and length of service. The majority of benefit payments are from trustee-administered funds; however, there are also a number of unfunded plans where the Company meets the benefit payment obligation as it falls due. In the US, the Company’s policy is at least to meet or exceed the funding requirements of federal regulations. The funded level in the US Pension Plan is above the point at which minimum funding would be required for fiscal year 2018. Plan assets held in trusts are governed by local regulations and practice, as is the nature of the relationship between the Company and the trustees (or equivalent) and their composition. Responsibility for governance of the plans – including investment decisions and contribution schedules – lies with the Plan Administrative Committee (PAC). The PAC is composed of representatives from the Company. The Company’s plans are exposed to various risks associated with pension plans, i.e., a sudden decrease in bond yields would lead to an increase in the present value of the defined benefit obligation. A sudden instability in the financial markets might also lead to a decrease in the fair value of plan assets held by the trust. Pension benefits in the US are not linked to inflation; however, higher inflation poses the risk of increased final salaries being used to determine benefits for active employees. There is also a risk that the duration of payments to retirees will exceed the life expectancy in mortality tables. UK plans The Company operates both defined benefit and defined contribution plans in the UK. Most defined benefit plans in the UK are closed to future pension accrual. The defined benefit plans provide benefits to members in the form of a guaranteed level of pension payable for life. The level of benefits provided is defined by the Trust Deed & Rules and depends on members’ length of service and their salary. Pensions in payment are generally updated in line with the UK retail price index, subject to caps defined by the rules. The plans’ assets are held in trusts and are invested in a diverse range of assets. The plans are governed by local regulations and responsibility for the governance of the plans lies with the Trustee Directors, who are appointed by the Company from its employees and from the plans’ members. Independent professional trustees sit on a number of the Boards. The plans remain exposed to various risks associated with defined benefit plans, e.g. a decrease in bond yields or increase in inflation would lead to an increase in the present value of the defined benefit obligation. Alternatively, the duration of payments to retirees could exceed the life expectancy assumed in the current mortality tables leading to an increase in liabilities. A sudden instability in the financial markets might also lead to a decrease in the fair value of the plans’ assets. The Company and Trustees’ aim is to reduce the plans’ exposure to the key risks over time. Other plans The Company also sponsors plans in other countries. The main plans are in Brazil and Ireland. The plan in Brazil is a pension plan wholly funded with a net surplus of assets. The plan in Ireland is a final salary pension plan and is partly funded. The plans are managed by corporate trustees with directors appointed partly by the local company and partly by the plan members. The trustees are independent from the local company and subject to the specific country’s pension laws. Amount recognized in the Consolidated balance sheet Amount recognized in the Consolidated balance sheet Sweden US UK Other Total 2018 Defined benefit obligation (DBO) 44,845 21,059 12,374 12,042 90,320 Fair value of plan assets 21,912 19,899 14,385 8,126 64,322 Deficit/surplus (+/–) 22,933 1,160 –2,011 3,916 25,998 Plans with net surplus, excluding asset ceiling 1) — — 2,246 476 2,722 Provision for post-employment benefits 2) 22,933 1,160 235 4,392 28,720 2017 Defined benefit obligation (DBO) 41,166 21,005 13,246 12,228 87,645 Fair value of plan assets 21,938 20,402 14,599 8,000 64,939 Deficit/surplus (+/–) 19,228 603 –1,353 4,228 22,706 Plans with net surplus, excluding asset ceiling 1) — 83 1,685 535 2,303 Provision for post-employment benefits 2) 19,228 686 332 4,763 25,009 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, with a trend toward defined contribution plans. Pension costs for defined contribution plans and defined benefit plans Sweden US UK Other Total 2018 Pension cost for defined contribution plans 937 473 145 1,170 2,725 Pension cost for defined benefit plans 1,350 175 75 557 2,157 Total 2,287 648 220 1,727 4,882 Total pension cost expressed as a percentage of wages and salaries 9.2 % 2017 Pension cost for defined contribution plans 1,096 473 173 1,228 2,970 Pension cost for defined benefit plans 1,824 168 38 592 2,622 Total 2,920 641 211 1,820 5,592 Total pension cost expressed as a percentage of wages and salaries 9.5 % 2016 Pension cost for defined contribution plans 1,061 687 185 1,287 3,220 Pension cost for defined benefit plans 1,314 167 38 595 2,114 Total 2,375 854 223 1,882 5,334 Total pension cost expressed as a percentage of wages and salaries 8.9 % Change in the net defined benefit obligation Change in the net defined benefit obligation Present value 2) Fair value of Total Present value 2) Fair value of Total Opening balance 87,645 –64,939 22,706 87,175 –64,485 22,690 Included in the income statement Current service cost 1,602 — 1,602 1,793 — 1,793 Past service cost and gains and losses on settlements 100 — 100 296 — 296 Interest cost/income (+/–) 2,196 –1,912 284 2,198 –1,892 306 Taxes and administrative expenses 78 54 132 143 45 188 Other –6 2 –4 –13 2 –11 3,970 –1,856 2,114 3) 4,417 –1,845 2,572 3) Remeasurements Return on plan assets excluding amounts in interest expense/income — 3,016 3,016 — –2,438 –2,438 Actuarial gains/losses (–/+) arising from changes in demographic assumptions –124 — –124 –396 — –396 Actuarial gains/losses (–/+) arising from changes in financial assumptions 261 — 261 2,110 — 2,110 Experience-based gains/losses (–/+) –613 — –613 –219 — –219 –476 3,016 2,540 1,495 –2,438 –943 Other changes Translation difference 2,659 –2,383 276 –2,275 2,262 –12 Contributions and payments from: Employers 1) –984 –513 –1,497 –880 –583 –1,463 Plan participants 28 –21 7 27 –23 4 Payments from plans: Benefit payments –2,357 2,357 — –2,173 2,173 — Settlements –145 17 –128 –141 — –141 Business combinations and divestments –20 — –20 — — — Closing balance 90,320 –64,322 25,998 87,645 –64,939 22,706 1) The expected contribution to the plans is SEK 2.1 billion during 2019. 2) The weighted average duration of DBO is 20.3 (20.1) years. 3) Excluding the impact of the asset ceiling of SEK 43 million in 2018 and SEK 50 million in 2017. Present value of the defined benefit obligation Sweden US UK Other Total 2018 DBO, closing balance 44,845 21,059 12,374 12,042 90,320 Of which partially or fully funded 44,845 20,372 12,374 9,292 86,883 Of which unfunded — 687 — 2,750 3,437 2017 DBO, closing balance 41,166 21,005 13,246 12,228 87,645 Of which partially or fully funded 40,665 20,319 13,246 9,465 83,695 Of which unfunded 501 686 — 2,763 3,950 Asset allocation by asset type and geography Sweden US UK Other Total Of which 2018 Cash and cash equivalents 935 585 1,416 88 3,024 0 % Equity securities 4,434 729 2,293 2,439 9,895 18 % Debt securities 10,642 17,329 9,410 3,485 40,866 23 % Real estate 4,228 — 154 229 4,611 100 % Investment funds 1,673 1,151 415 230 3,469 70 % Assets held by insurance company — — — 1,289 1,289 100 % Other — 105 697 366 1,168 33 % Total 21,912 19,899 14,385 8,126 64,322 Of which real estate occupied by the Company — — — — — Of which securities issued by the Company — — — — — 2017 Cash and cash equivalents 3,124 382 834 88 4,428 0 % Equity securities 4,079 795 3,116 2,432 10,422 16 % Debt securities 8,663 17,650 9,331 3,494 39,138 68 % Real estate 4,269 — 244 212 4,725 100 % Investment funds 1,803 1,478 160 208 3,649 66 % Assets held by insurance company — — — 1,200 1,200 100 % Other — 97 914 366 1,377 41 % Total 21,938 20,402 14,599 8,000 64,939 Of which real estate occupied by the Company — — — — — Of which securities issued by the Company — — — — — Actuarial assumptions Financial and demographic actuarial assumptions 1) 2018 2017 Financial assumptions Discount rate, Sweden 1.5 % 1.6 % Discount rate, US 4.3 % 3.7 % Discount rate, UK 3.0 % 2.6 % Discount rate, weighted average of total 2.6 % 2.5 % Demographic assumptions Life expectancy after age 65 in years, weighted average 23 23 1) Weighted average for the Group for disclosure purposes only. Country-specific assumptions were used for each actuarial calculation. Actuarial assumptions are assessed on a quarterly basis. See also Note 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, 2018, the discount rate applied in Sweden was 1.5% (1.6%). If the discount rate had been based on Swedish covered bonds, the discount rate as of December 31, 2018 would have been 2.5% (2.8%). If these discount rates based on Swedish covered bonds had been applied for the pension liability calculation, the DBO at December 31, 2018 would have been approximately SEK 9.5 (9.1) 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. Total remeasurements in Other comprehensive income (loss) related to post-employment benefits 2018 2017 Actuarial gains and losses (+/–) –1,887 1,210 The effect of asset ceiling 87 27 Swedish special payroll taxes 1) –653 –267 Total –2,453 970 1) Swedish payroll taxes are included in recognized gain/loss during the year in OCI. Sensitivity analysis of significant actuarial assumptions SEK billion 2018 2017 Impact on the DBO of an increase in the discount rate Discount rate, Sweden +0.5% –5.0 –4.5 Discount rate, US +0.5% –1.0 –1.1 Discount rate, UK +0.5% –1.3 –1.5 Discount rate, weighted average of total +0.5% –8.3 –8.1 Impact on the DBO of an decrease in the discount rate Discount rate, Sweden –0.5% +5.4 +5.2 Discount rate, US –0.5% +1.1 +1.2 Discount rate, UK –0.5% +1.5 +1.8 Discount rate, weighted average of total –0.5% +9.2 +9.3 |
G2 Information regarding member
G2 Information regarding members of the Board of Directors and Group management | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
G2 Information regarding members of the Board of Directors and Group management | G2 Remuneration to the Board of Directors Remuneration to members of the Board of Directors SEK Board fees Number of Value at grant Number of previously Net change 1) Committee Total fees 2) Total A B C (A+B+C) Board member Ronnie Leten 4,075,000 30,969/50 % 2,037,330 — 375,654 375,000 2,412,500 4,825,484 Helena Stjernholm 990,000 7,523/50 % 494,909 19,754 494,201 175,000 670,000 1,659,110 Jacob Wallenberg 990,000 11,285/75 % 742,396 28,390 748,678 175,000 422,500 1,913,574 Jon Fredrik Baksaas 990,000 11,285/75 % 742,396 12,992 307,523 200,000 447,500 1,497,419 Jan Carlson 990,000 11,285/75 % 742,396 12,992 307,523 425,000 672,500 1,722,419 Nora Denzel 990,000 3,761/25 % 247,422 9,819 276,017 425,000 1,167,500 1,690,939 Börje Ekholm — — — 24,789 737,547 — — 737,547 Eric A. Elzvik 990,000 3,761/25 % 247,422 4,330 102,491 350,000 1,092,500 1,442,413 Kurt Jofs 990,000 11,285/75 % 742,396 — 136,887 350,000 597,500 1,476,783 Kristin S. Rinne 990,000 3,761/25 % 247,422 16,056 352,161 200,000 447,500 1,047,083 Employee Representatives Torbjörn Nyman 31,500 — — — — — 31,500 31,500 Kjell-Åke Soting 40,500 — — — — — 40,500 40,500 Roger Svensson 48,000 — — — — — 48,000 48,000 Karin Åberg 3) 13,500 — — — — — 13,500 13,500 Per Holmberg (deputy) 4) 1,500 — — — — — 1,500 1,500 Tomas Lundh (deputy) 5) 7,500 — — — — — 7,500 7,500 Anders Ripa (deputy) 21,000 — — — — — 21,000 21,000 Loredana Roslund (deputy) 21,000 — — — — — 21,000 21,000 Total 12,179,500 94,915 6,244,089 129,122 3,838,682 2,675,000 8,114,500 18,197,271 Total 12,179,500 94,915 6,244,089 153,178 7) 4,393,522 7) 2,675,000 8,114,500 18,752,111 7) 1) The difference in value as of the time for payment, compared to December 31, 2017, for synthetic shares allocated in 2013 (for which payment was made in 2018). The difference in value as of December 31, 2018 compared to December 31, 2017, for synthetic shares allocated in 2014, 2015, 2016 and 2017. Calculated on a share price of SEK 77.92. The difference in value as of December 31, 2018, compared to grant date for synthetic shares allocated in 2018. The value of synthetic shares allocated in 2014, 2015, 2016 and 2017 includes respectively SEK 3.40, SEK 3.70, SEK 1.00 and SEK 1.00 per share in compensation for dividends resolved by the Annual General Meetings 2015, 2016, 2017 and 2018 and the value of the synthetic shares allocated in 2013 includes dividend compensation for dividends resolved in 2014, 2015, 2016 and 2017. 2) Committee fee and cash portion of the Board fee. 3) Left the Board in connection with the Annual General Meeting of shareholders 2018. 4) Joined the Board in November 2018. 5) Left the Board in September 2018. 6) Excluding social security charges in the amount of SEK 4,176,652. 7) Including synthetic shares previously allocated to the former Directors Kristin Skogen Lund and Sukhinder Singh Cassidy. Comments to the table • The Chair of the Board was entitled to a Board fee of SEK 4,075,000 and a fee of SEK 200,000 as Chair of the Finance Committee and a fee of SEK 175,000 as member of the Remuneration Committee. • The other Directors elected by the Annual General Meeting were entitled to a fee of SEK 990,000 each. In addition, the Chair of the Audit and Compliance Committee was entitled to a fee of SEK 350,000 and the other non- 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 2018 resolved that non-employee The number of synthetic shares allocated is based on a volume-weighted average of the market price of Ericsson Class B shares on Nasdaq Stock-holm during the five trading days immediately following the publication of Ericsson’s interim report for the first quarter 2018; SEK 65,79. The number of synthetic shares is rounded down to the nearest whole number of shares. The synthetic shares are vested during the Directors’ term of office and the right to receive payment with regard to the allocated synthetic shares occurs after the publication of the Company’s year-end year-end Synthetic shares were allocated to members of the Board for the first time in 2008 and have been allocated annually since then on equal terms and conditions. Payment based on synthetic shares allocated in 2013 occurred in 2018. The amounts paid in 2018 under the synthetic share programs were determined based on the volume-weighed average price for shares of Class B on Nasdaq Stockholm during the five trading days immediately following the publication of the year-end The value of all outstanding synthetic shares fluctuates in line with the market value of Ericsson’s Class B share and may differ from year to year compared to the original value on their respective grant dates. The change in value of the outstanding synthetic shares is established each year and affects the total recognized costs that year. As of December 31, 2018, the total outstanding number of synthetic shares under the programs is 248,093 and the total accounted debt is SEK 19,765,326. Remuneration to the Group management The Company’s costs for remuneration to the Group management are the costs recognized in the Income statement during the fiscal year. These costs are disclosed under “Remuneration costs” below. Costs recognized during a fiscal year in the Income statement are not fully paid by the Company at the end of the fiscal year. The unpaid amounts that the Company has in relation to the Group management are disclosed under “Outstanding balances.” Guidelines for remuneration to Group management 2018 For Group management consisting of the Executive Team (ET), including the President and CEO, total remuneration consists of fixed salary, short- and long-term variable compensation, pension and other benefits. The following guidelines apply to the remuneration of the Executive Team: • Variable compensation is in cash and stock-based programs awarded against specific business targets derived from the long-term business plan approved by the Board of Directors. Targets may include share-price related or financial targets at either Group or unit level, operational targets, employee engagement targets or customer satisfaction targets. • All benefits, including pension benefits, follow the competitive practice in the home country taking total compensation into account. • By way of exception, additional arrangements can be made when deemed necessary. An additional arrangement can be renewed but each such arrangement shall be limited in time and shall not exceed a period of 36 months and twice the remuneration that the individual would have received had no additional arrangement been made. • The standard mutual notice period is no more than six months. Upon termination of employment by the Company, severance pay amounting to a maximum of 18 months fixed salary is paid. Notice of termination given by the employee due to significant structural changes, or other events that in a determining manner affect the content of work or the condition for the position, is equated with notice of termination served by the Company. • On a case to case basis, the mutual notice period can be increased to no more than 12 months in which case there will be a corresponding reduction in severance pay (where applicable). In all circumstances, fixed salary during the notice period plus any severance pay payable will not together exceed an amount equivalent to the individual’s 24 months fixed salary. Remuneration costs The total remuneration to the President and CEO and to other members of the Group management, consisting of the ET, includes fixed salary, short- and long-term variable compensation, pension and other benefits. These remuneration elements are based on the guidelines for remuneration to Group management as approved by the Annual General Meeting (AGM) of shareholders held in 2018: see the approved guidelines in the previous section “Guidelines for remuneration to Group management 2018.” Remuneration costs for the President and CEO and other members of Executive Team (ET) SEK President and President and Other members Other members Total 2018 Total 2017 Salary 1) 15,362,592 14,379,170 87,557,407 108,135,646 102,919,999 122,514,816 Termination benefits — — 8,977,037 54,023,816 8,977,037 54,023,816 Annual variable remuneration provision earned for the year — — 26,041,833 7,331,278 26,041,833 7,331,278 Long-term variable compensation provision 18,351,265 6,119,323 16,549,282 9,840,643 34,900,547 15,959,966 Pension costs 2) 7,890,372 7,528,073 31,776,195 31,592,635 39,666,567 39,120,708 Other benefits 424,513 318,187 11,785,239 17,311,905 12,209,752 17,630,092 Social charges and taxes 13,205,431 8,894,255 51,255,788 52,086,808 64,461,219 60,981,063 Total 55,234,173 37,239,008 233,942,781 280,322,731 289,176,954 317,561,739 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. Comments to the table • Fredrik Jejdling appointed as Executive Vice President by the Board of Directors effective November 7, 2017, did not act as deputy to the President and CEO in 2018. Information regarding Fredrik Jejdling is included in the group “Other members of ET.” • The group “Other members of ET” comprises of the following persons: MajBritt Arfert, Arun Bansal, Niklas Heuveldop, Chris Houghton, Rafiah Ibrahim, Fredrik Jejdling, Peter Laurin, Carl Mellander, Nunzio Mirtillo, and Helena Norrman. In addition, Jan Karlsson joined ET on February 1, 2018, and Xavier Dedullen, Erik Ekudden and Åsa Tamsons joined ET on April 1, 2018. Elaine Weidman-Grunewald (left ET effective February 1, and Ericsson July 31, 2018), Ulf Ewaldsson (left ET effective February 1, and Ericsson December 31, 2018) and Nina Macpherson (left ET and Ericsson effective March 31, 2018 due to retirement). • The salary stated in the table for the President and CEO and other members of the ET includes vacation pay paid during 2018 as well as other contracted compensation expenses in 2018. • “Long-term variable compensation provision” refers to the compensation costs for all outstanding share-based plans for full year 2018. • For members of the ET employed in Sweden before 2011, a supplementary plan is applied in addition to the occupational pension plan for salaried staff on the Swedish labor market (ITP) with pension payable from the age of 60 years. These pension plans are not conditional upon future employment at Ericsson. Outstanding balances The Company has recognized the following liabilities relating to unpaid remunerations in the Balance sheet: • Ericsson’s commitments for defined benefit based pensions as of December 31, 2018, for other members of ET under IAS 19 amounted to SEK 56.0 (45.7) million of which SEK 45.2 (37.0) million refers to the ITP and early retirement, and the remaining SEK 10.9 (8.7) million to disability and survivors’ pensions. The President and CEO does not have a Swedish defined benefit based pension plan, hence, Ericsson bears no commitment. • For previous Presidents and CEOs, the Company has made provisions for defined benefit pension plans in connection with their active service periods within the Company. |
G3 Share-based compensation
G3 Share-based compensation | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
G3 Share-based compensation | G3 The table below shows the maximum outstanding matching rights for the President and CEO and the other members of the Executive team (ET) under the currently open Stock Purchase Plans (SPP) and Executive Performance Stock Plans (EPSP). Maximum outstanding matching rights As of December 31, 2018 Number of Class B shares The President Other members Stock Purchase Plans 2015–2016 Executive Performance Stock Plans 2015–2016 — 125,568 Comments to the table • For the definition of matching rights, see the description in section “Long term variable compensation”. • Matching result of 22.22% is included for the 2015 EPSP. • Cash conversion targets for the 2015 EPSP for the years 2016 and 2018 were reached, but it was not reached in 2017. • During 2018, no matching shares were received by President and CEO since Börje Ekholm is not entitled for the Stock Purchase and Executive Performance Stock Plans. • During 2018, other members of the ET received 67,987 matching shares. Option agreements Prior to taking office as President and CEO of Ericsson, Board member Börje Ekholm entered into an option agreement in 2016 with Investor AB and AB Industrivärden, shareholders of Ericsson. Each of these two shareholders has issued 1,000,000 call options to Börje Ekholm on market terms (valuation conducted, using the Black & Scholes model, by an independent third party). Under the agreements, Börje Ekholm has purchased in total 2,000,000 call options, issued by the shareholders, for a purchase price of SEK 0.49 per call option. Each call option entitles the purchase of one Ericsson B share from the shareholders at a strike price of SEK 80 per share during one year after a seven-year period. Since the President and CEO has the power to influence the dividend paid by the Company, a potential conflict of interest exists. The option agreements therefore contain a strike price recalculation mechanism which is intended to make the options payoff neutral regardless of what the actual dividends are. Due to the fact that the call options were purchased on market terms as described above, no compensation expense has been recognized by the Company and will not be recognized during the remaining part of the seven-year period. Long-Term Variable compensation Following discontinuation of the previous long-term variable compensation programs at the end of 2016, the Company introduced the new Long-Term Variable Compensation Program (LTV) for the Executive Team, the new Executive Performance Plan (EPP) for senior managers and the new Key Contributor Plan (KC Plan) for key employees as integral parts of its remuneration strategy starting from 2017. 2017–2018 Long-Term Variable Compensation Programs (LTV) for the Executive Team The Long-Term Variable Compensation Program (LTV) for the ET is designed to provide long-term incentives for members of the ET and to incentivize the Company’s performance creating long-term value. The aim is to attract, retain, and motivate the executives in a competitive market through performance based share related incentives and to encourage the build-up The 2018 Long-Term Variable Compensation Program (LTV 2018) was approved by the AGM 2018 and includes all members of the ET, a total of 14 (16) employees in 2018, including the President and CEO, but excluding Ulf Ewaldsson, Elaine Weidman-Grunewald and Nina Macpherson who left the ET prior to the award grant date of May 18, 2018, and Jan Karlsson who carried over his EPP entitlement for 2018 after his appointment to the ET. Awards under LTV are granted to the participant, provided that certain performance conditions are met, to receive a number of shares, free of charge, following expiration of a three-year vesting period (“Performance Share Awards”). Allotment of shares pursuant to Performance Share Awards are subject to the achievement of the performance criteria, as set out below, and generally requires that the participant retains his or her employment over a period of three years from the date of grant (the “Vesting Period”). All major decisions relating to LTV are taken by the Remuneration Committee, with approval by the full Board of Directors as required. The participants were granted Performance Share Awards on May 18, 2018. The value of the underlying shares in respect of the Performance Share Award 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 increase of the maximum value of the underlying shares in respect of the Performance Share Awards made to the ET members other than the President and CEO from 22.5% in 2017 to between 30% and 70% of the participants’ respective base salaries at the time of grant in 2018 was approved by the AGM 2018 with the intention to increase the long-term focus and alignment with the long-term expectations of the shareholders. The share price used to calculate the number of shares to which the Performance Share Award entitles was calculated as the volume-weighted average of the market price of 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 2018. The vesting of Performance Share Awards is subject to the satisfaction of challenging performance criteria which will determine what portion, if any, of the Performance Share Awards will vest at the end of the Performance Period. Following continous evaluation of the Long-Term Variable Compensation Programs 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, 2018 to December 31, 2020 (the “Performance Period”). The performance criteria for LTV 2018 and LTV 2017 along with the details on how the performance criteria will be calculated and measured are explained in minutes from the AGM 2018 under Item 17, and summarized in the table below. The Board resolved on the vesting level for the 2018 Group operating income performance condition as 200% for this portion of the performance share awards granted based on a 2018 Group operating income excluding restructuring charges and the provisions taken in Q4 2018 related to the revised BSS strategy. Provided that the above performance criteria have been met during the Performance Period and that the participant has retained his or her employment (unless special circumstances are at hand) during the Vesting Period, allotment of vested shares will take place as soon as practicably possible following the expiration of the Vesting Period. LTV and EPP Performance Criteria Program Year Target Criteria Weight Performance Period Vesting 2018 2018 Group Operating Income Range (SEK billion): 4.6–9.6 50 % January 1, 2018— December 31, 2018 0%–200% (linear pro-rata) 2018 Absolute TSR Range: 6%–14% 30 % January 1, 2018— December 31, 2020 0%–200% (linear pro-rata) 2018 Relative TSR Ranking of 20 % January 1, 2018— 0%–200% (linear pro-rata) 1) 2017 Absolute TSR Range: 6%–14% 50 % January 1, 2017— 0%–200% (linear pro-rata) 2017 Relative TSR Ranking of Ericsson: 12–5 50 % January 1, 2017— 0%–200% (linear pro-rata) 1) 1) The portion of the performance share awards granted to a participant based on the relative TSR performance condition is subject to fulfillment of the related performance criteria over the performance period compared to Peer Groups consisting of 12 and 18 companies respectively for the program years 2018 and 2017. 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. When determining the final vesting level of Performance Share Awards, the Board of Directors shall examine whether the vesting level is reasonable considering the Company’s financial results and position, conditions on the stock market and other circumstances, and if not, as determined by the Board of Directors, reduce the vesting level to a lower level deemed appropriate by the Board of Directors. In the event delivery of shares to the participants cannot take place under applicable law or at a reasonable cost and employing reasonable administrative measures, the Board of Directors will be entitled to decide that participants may, instead, be offered cash settlement. LTV share-settled plan for the President and CEO and Executive Team Plan (million shares) Long-term variable LTV 2018 LTV 2017 Total Maximum shares required 3.0 3.0 6.0 Granted shares 0.8 0.7 1.5 Increase due to performace condition 0.4 — 0.4 Outstanding number of shares end of 2018 1.2 0.7 1.9 Compensation cost charged during 2018 (SEK million) 1) 17.9 14.7 32.6 1) Of which the President and CEO: Granted shares 0.4 0.4 0.8 Outstanding number of shares end of 2018 0.6 0.4 1.0 Compensation cost charged during 2018 (SEK million) 8.6 9.8 18.4 1) Total compensation cost charged during 2017: SEK 9.9 million. The maximum number of shares required for LTV 2018 is 3.0 (3.0) million. 0.8 (0.7) million shares were granted to the ET members in May 18, 2018. The 2018 ET plan is a share-settled plan recognized over a three-year service period that has two types of conditions, market conditions and performance condition. The weighted fair value for LTV 2018 market conditions was calculated as per the share price at grant date May 18, 2018 and amounted to SEK 79.70. The share price at grant date was SEK 65.79. The fair value for the market conditions calculated is the weighted average of the fair values including adjustments for absolute and relative TSR performance criteria on 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 amount is fixed for the service period, except for any persons leaving. The performance condition for the ET plan is based on the outcome of the Group operating income as per 2018 fiscal year. For the performance condition the number of shares are adjusted in relation to the achievement level of the performance condition at the end of the performance period. The outcome of the performance conditions was achieved at a vesting level of 200% and the total number of shares has been increased by 0.4 million shares to 1.2 million shares. The share price for the performance condition was SEK 62.93 and is calculated based on the share price at grant, reduced by the net present value of the dividend expectations during the three-year service period. The 2017 LTV program is a share-settled plan with market conditions accounted for as described for LTV 2018. The total compensation expense is calculated based on the fair value at grant date and recognized over the service period of three years. The amount is fixed for the service period, except for any persons leaving. The fair value for LTV 2017 at grant date was calculated as per May 18, 2017 and amounted to SEK 65.68. The share price at grant date May 18, 2017 was SEK 57.15. The accounting treatment for LTV is prescribed in IFRS 2 Share-based payment as described in Note A1, “Significant accounting policies.” 2017–2018 Executive Performance Plans (EPP) The Executive Performance Plan (EPP) is designed to attract, retain, and motivate senior managers in a competitive market through performance based long-term cash incentive supporting the achievement of the Company’s long-term strategies and business objectives. Under the 2018 Executive Performance Plan (EPP 2018), up to 182 (500) senior managers were identified to be eligible for the plan, and 171 (452) of these 182 (500) senior managers were selected as participants to the plan through a nomination process that identifies individuals according to performance, potential, critical skills, and business critical roles. There are two award levels at 15% and 22.5% of the participants’ annual gross salary. Participants are assigned a potential award, which is converted into a number of synthetic shares based on the same market price of Ericsson B shares used for the respective year’s LTV program. The three-year vesting period is the same as for the LTV program. The vesting level of the award is subject to the achievement of the same performance criteria over the same Performance Periods defined for the respective year’s LTV program, 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 payout date, and this final amount is paid to the participant in cash gross before tax. The accounting treatment for EPP is prescribed in IFRS 2 Share-based payment as described in Note A1, “Significant accounting policies.” At the start of the service period, compensation costs are calculated as for the respective year’s LTV program. As it is a cash settled plan the compensation expense is remeasured during the service period, considering the impact of the share price development targets, being the same as under the respective year’s LTV program. Total compensation expense for the Company is the same as the total pay-out 2017–2018 Key Contributor Plans (KC Plan) The Key Contributor Plan (KC Plan) is designed to recognize the best talent, individual performance, potential and critical skills as well as to encourage the retention of key employees. Under the 2018 Key Contributo Plan (2018 KC Plan), up to 6,037 (7,000) employees were identified to be eligible for the plan, and 5,886 (6,876) of these 6,037 (7,000) employees were selected through a nomination process that identifies individuals according to performance, potential, critical skills, and business critical roles. There are two award levels at 10% and 25% of the participants’ annual gross salary. Participants are assigned a potential award, which is converted into a number of synthetic shares based on the same market price of Ericsson B shares used for the respective year’s LTV program. There is a mandatory three-year retention period for receiving the award and the award is subject only to continued employment until the end of the retention period. The value of each synthetic share is driven by the absolute share price performance of Ericsson B shares during the retention period. At the end of the retention period, the synthetic shares are converted into a cash amount, based on the market price of Ericsson B shares Nasdaq Stockholm at the payout date, and this final amount is paid to the Participant in cash gross before tax. The cost of the cash-settled plans (EPP and KC Plan) is shown in the table below: LTV cash-settled plans (million) Number of synthetic shares Plan LTV 2018 LTV 2017 Total Executive Performance Plan 1.0 1.9 2.9 Key Contributor Plan 9.4 10.5 19.9 Total 10.4 12.4 22.8 Compensation cost under LTV cash-settled plans (SEK million) Compensation cost year 2018 Plan LTV 2018 LTV 2017 Total Executive Performance Plan 1) 19.8 110.7 130.5 Key Contributor Plan 2) 155.9 322.9 478.8 3) Total 175.7 433.6 609.3 1) Fair value for EPP SEK 98.97 for LTV 2018 and 136.16 (65.68) for LTV 2017. 2) Fair value for KC Plan SEK 79.98 for LTV 2018 and 81.06 (56.55) for LTV 2017. 3) Total compensation cost charged during 2017: SEK 170 million. The accounting treatment for KC Plan is prescribed in IFRS 2 Share-based payment as described in Note A1, “Significant accounting policies.” At grant date the share price was SEK 65.79 (57.15). As it is a cash settled plan the compensation expense is remeasured during the service period, considering the Ericsson share price development during the service period. The total cost for a plan for the three years of service is equal to the pay-out. 2015–2016 Long-Term Variable compensation programs Until 2017, share-based compensation was made up of three different but linked plans: the all-employee The Stock Purchase Plan (SPP) The Stock Purchase Plan (SPP) was designed to offer an incentive for all employees to participate in the Company where practicable. For the 2016 and earlier plans, employees were able to save up to 7.5% of their gross fixed salary for purchase of Ericsson B contribution shares at market price on Nasdaq Stockholm or American Depositary Shares (ADSs) on NASDAQ New York (contribution shares) during a twelve-month period (contribution period). If the contribution shares are retained by the employee for three years after the investment and their employment with the Ericsson Group continues during that time, then the employee’s shares will be matched with a corresponding number of Ericsson B sshares or ADSs free of consideration. Employees in 100 countries participate in the plans. The table below shows the contribution periods and participation details for ongoing plans as of December 31, 2018. Stock Purchase Plans Plan Contribution Number of Take-up rate Stock Purchase plan 2015 August 2015– July 2016 33,800 31 % Stock Purchase plan 2016 August 2016 – July 2017 31,500 29 % The accounting treatment for SPP is prescribed in IFRS 2 “Share-based payment” as described in Note A1, “Significant accounting policies.” This plan is a stock purchase share-settled plan. The total cost for a plan for the three years of service is based on the number of shares that vest, due to savings and calculated based on the fair value of the shares as defined at grant date. The Key Contributor Retention Plan The Key Contributor Retention Plan was part of Ericsson’s talent management strategy and was designed to give recognition for performance, critical skills and potential as well as to encourage retention of key employees. Under the program, up to 10% of employees were selected through a nomination process that identifies individuals according to performance, critical skills and potential. Participants selected obtained one extra matching share in addition to the ordinary one matching share for each contribution share purchased under SPP during a twelve-month period. Since no SPP was proposed after 2016, the cash-based KC Plan described above was introduced replacing the Key Contributor Retention Plan. The accounting treatment for the Key Contributor Retention Plan is the same as for SPP, however, these employees receive two shares for each share invested. Executive Performance Stock Plan targets Base year value Year 1 Year 2 Year 3 2016 Growth (Net sales growth) 246.9 Compound annual growth rate of 2%–6% Margin (Operating income growth) 1) 24.8 Compound annual growth rate of 5%–15% Cash flow (Cash conversion) — ³ ³ ³ 1) Excluding extraordinary restructuring charges. The Executive Performance Stock Plan (EPSP) The Executive Performance Stock Plan (EPSP) was designed to focus management on driving earnings and provide competitive remuneration. Senior managers, including the members of the ET, were selected to obtain up to four or six extra shares (performance matching shares) in addition to the ordinary one matching share for each contribution share purchased under SPP. Up to 0.5% of employees were offered participation in the plan. The performance targets were linked to growth of Net Sales, Operating Income and Cash Conversion. The table “Executive Performance Stock Plan targets” show ongoing Executive Performance Stock Plans as of December 31, 2018. Since no SPP was proposed after 2016, the share-based LTV was introduced for the ET with the approval of shareholders in the AGM of shareholders. For the senior managers, the cash based EPP was introduced replacing the Executive Performance Stock Plan. The LTV and the EPP are described above. The accounting treatment for the Executive Performance Stock Plan is prescribed in IFRS 2 Share-based payment as described in Note A1 Significant accounting policies. This plan is a stock purchase share-settled plan with performance conditions. The total cost for a plan for the three years of service is based on the number of shares that vest, due to fulfillment of targets and savings. The costs are calculated based on the fair value of the shares as defined at grant date. Shares for LTV 2014–2016 Stock Purchase Plan, Key Contributor Retention Plan Plan (million shares) 2016 2015 2014 Total Originally designated A 21.6 23.5 22.8 67.9 Outstanding beginning of 2018 B 21.6 15.4 6.7 43.7 Awarded during 2018 C — — — — Exercised/matched during 2018 D 1.5 3.6 6.5 11.6 Forfeited/expired during 2018 E 1.4 2.3 0.2 3.9 Outstanding end of 2018 1) F=B+C–D–E 18.7 9.5 — 28.2 Compensation costs charged during 2018 (SEK million) 3) G 321.7 2) 260.4 2) 62.8 2) 644.9 1) Shares under the Executive Performance Stock Plans were based on the fact that the 2014 plan came out at 33%, in casu 67% lapsed and that the 2015 plan vested for 22% and lapsed for 78%. For the other ongoing plans, cost is estimated. 2) Share price is calculated as the share price on the investment date, reduced by the net present value of the dividend expectations during the three-year vesting period. Net present value calculations are based on data from external party. For shares under the Executive Performance Stock Plans, the company makes a forecast for the fulfillment of the financial targets for all ongoing plans except for 2014 and 2015 plans as disclosed under 1) when calculating the compensation cost. 3) Total compensation costs charged during 2017: SEK 876 million, 2016: SEK 957 million. Shares for LTV 2014–2016 and LTV 2017 LTV 2014–2016 and LTV 2017 are funded with treasury stock and are equity settled. Treasury stock for all plans has been issued in directed cash issues of Class C shares at the quotient value and purchased under a public offering at the subscription price plus a premium corresponding to the subscribers’ financing costs, and then converted to Class B shares. For all these plans, additional shares have been allocated for financing of social security expenses. Treasury stock is sold on the Nasdaq Stockholm to cover social security payments when arising due to matching/vesting of shares. During 2018, 1,594,920 shares were sold at an average price of SEK 66.97. Sales of shares are recognized directly in equity. If, as of December 31, 2017, all shares allocated for future matching/vesting under the Stock Purchase Plan were transferred, and shares designated to cover social security payments were disposed of as a result of the exercise and the matching/vesting, approximately 33 million Class B shares would be transferred, corresponding to 1.0% of the total number of shares outstanding, or 3,297 million not including treasury stock. As of December 31, 2018, 37 million Class B shares were held as treasury stock. The table on the previous page shows how shares (representing matching rights but excluding shares for social security expenses) are being used for all outstanding stock purchase plans, key contributor retention plans and excecutive performance stock plans. From up to down the table includes (A) the number of shares originally approved by the Annual General Meeting; (B) the number of originally designated shares that were outstanding at the beginning of 2018; (C) the number of shares awarded during 2018; (D) the number of shares matched during 2018; (E) the number of shares forfeited by participants or expired under the plan rules during 2018; and (F) the balance left as outstanding at the end of 2018, having added new awards to the shares outstanding at the beginning of the year and deducted the shares related to awards matched, forfeited and expired. The final row (G) shows the compensation costs charged to the accounts during 2018 for each plan, calculated as fair value in SEK. For a description of compensation cost, including accounting treatment, see Note A1, “Significant accounting policies,” section Share-based compensation to employees and the Board of Directors. |
G4 Employee information
G4 Employee information | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
G4 Employee information | G4 Employee numbers, wages and salaries Average number of employees by gender and market area 2018 2017 Women Men Total Women Men Total South East Asia, Oceania and India 4,740 18,957 23,697 5,212 19,773 24,985 North East Asia 4,024 8,375 12,399 4,189 8,657 12,846 North America 2,057 7,520 9,577 2,337 8,595 10,932 Europe and Latin America 1) 2) 11,627 36,290 47,917 13,135 40,647 53,782 Middle East and Africa 700 3,553 4,253 920 3,904 4,824 Total 23,148 74,695 97,843 25,793 81,576 107,369 1) 3,059 9,976 13,035 3,299 11,013 14,312 2) 8,918 27,590 36,508 10,534 31,130 41,664 Number of employees by market area at year-end 2018 2017 South East Asia, Oceania and India 23,959 24,495 North East Asia 12,788 12,456 North America 9,727 10,009 Europe and Latin America 1) 44,621 49,231 Middle East and Africa 4,264 4,544 Total 95,359 100,735 1) 12,502 13,864 2) 35,268 39,508 Number of employees by gender and age at year-end Women Men Percent Under 25 years old 1,190 1,961 3 % 25–35 years old 9,294 25,284 36 % 36–45 years old 6,292 24,276 32 % 46–55 years old 4,168 16,366 22 % Over 55 years old 1,426 5,102 7 % Percent of total 23 % 77 % 100 % Employee movements 2018 2017 Headcount at year-end 95,359 100,735 Employees who have left the Company 16,630 21,791 Employees who have joined the Company 11,254 11,062 Temporary employees 560 676 Wages and salaries and social security expenses (SEK million) 2018 2017 Wages and salaries 53,298 58,966 Social security expenses 13,863 17,536 Of which pension costs 4,882 5,592 Amounts related to the President and CEO and the Executive Leadership Team are included in the table above. Remuneration to Board members and Presidents in subsidiaries (SEK million) 2018 2017 Salary and other remuneration 273 347 Of which annual variable remuneration 28 79 Pension costs 1) 25 32 1) Pension costs are over and above any social secutity charges and taxes. Board members, Presidents and Group management by gender at year end 2018 2017 Women Men Women Men Parent Company Board members and President 23 % 77 % 43 % 57 % Group Management 27 % 73 % 36 % 64 % Subsidiaries Board members and Presidents 19 % 81 % 19 % 81 % |
H1 Taxes
H1 Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
H1 Taxes | H1 The Company’s tax expense for 2018 was SEK –4,813 (3,525) million or –329.1% (9.8%) of income after financial items. The tax rate may vary between years depending on business and geographical mix. Items reported for income taxes include a reasonable estimate of the impact of the material aspects of the Swedish tax rate reduction which was signed into law on June 14, 2018, on the deferred tax assets and liabilities. The law reduces the corporate income tax from 22% to 21.4% from January 1, 2019, and to 20.6% from January 1, 2021. Income taxes recognized in the income statement 2018 2017 1) 2016 1) Current income taxes for the year –5,513 –4,168 –3,654 Current income taxes related to prior years –392 83 –489 Deferred tax income/expense (+/–) 1,097 7,613 2,266 Share of taxes in joint ventures and associated companies –5 –3 –5 Tax expense/benefit –4,813 3,525 –1,882 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” A reconciliation between reported tax expense for the year and the theoretical tax expense that would arise when applying statutory tax rate in Sweden, 22.0%, on the consolidated income before taxes, is shown in the table below. The tax effect of rate change mainly includes the effect of the remeasurement of deferred tax assets following the reduction in the Swedish corporate income tax rate. The impairment of withholding tax assets is related to the revised BSS strategy that is estimated to negatively impact the possibility of utilization of such taxes in Sweden. Reconciliation of Swedish income tax rate with effective tax rate 2018 2017 1) 2016 1) Expected tax expense at Swedish tax rate 22.0% 322 7,910 –637 Effect of foreign tax rates –773 205 –536 Current income taxes related to prior years –392 83 –489 Remeasurement of tax loss carry-forwards 113 –150 143 Remeasurement of deductible temporary differences 33 127 119 Impairment of withholding tax –3,000 –1,273 –456 Tax effect of non-deductible –1,130 –2,871 –901 Tax effect of non-taxable 722 480 935 Tax effect of changes in tax rates –708 –986 –60 Tax expense/benefit –4,813 3,525 –1,882 Effective tax rate –329.1 % 9.8 % 65.0 % 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” Deferred tax balances Deferred tax assets and liabilities are derived from the balance sheet items as shown in the table below. Tax effects of temporary differences and tax loss carry-forwards Deferred Deferred Net 2018 Intangible assets and property, plant and equipment 1,182 2,125 Current assets 3,614 731 Post-employment benefits 5,459 842 Provisions 4,441 — Other 3,223 188 Loss carry-forwards 8,449 — Deferred tax assets/liabilities 26,368 3,886 22,482 Netting of assets/liabilities –3,216 –3,216 Deferred tax balances, net 23,152 670 22,482 2017 1) Intangible assets and property, plant and equipment 894 2,374 Current assets 3,402 866 Post-employment benefits 4,886 704 Provisions 1,846 15 Other 3,556 275 Loss carry-forwards 10,712 — Deferred tax assets/liabilities 25,296 4,234 21,062 Netting of assets/liabilities –3,333 –3,333 Deferred tax balances, net 21,963 901 21,062 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” Changes in deferred taxes, net 2018 2017 1) Opening balance, net 21,062 14,851 Opening balance adjustment due to IFRS 9 288 — Opening balance, adjusted 21,350 14,851 Recognized in net income (loss) 1,097 7,613 Recognized in other comprehensive income (loss) 285 –563 Acquisitions/disposals of subsidiaries –116 — Reclassification to current tax –289 –462 Translation difference 155 –377 Closing balance, net 22,482 21,062 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” Tax effects reported directly in Other comprehensive income (loss) amount to SEK 285 (–563) million, of which actuarial gains and losses related to pensions constituted SEK 329 (–547) million. Deferred tax assets are only recognized in countries where the Company expects to be able to generate corresponding taxable income in the future to benefit from tax reductions. Deferred tax assets and liabilites have been adjusted for the effect of the reduction of the Swedish corporate income tax rate. Tax loss carry-forwards Significant tax loss carry-forwards are related to Sweden, the United States and Germany. These countries have long or indefinite periods of utilization. Of the total SEK 8,449 (10,712) million recognized deferred tax assets related to tax loss carry-forwards, SEK 7,006 (8,795) million relates to Sweden. Deferred tax assets regarding tax loss carry-forwards are reported to the extent that realization of the related tax benefit through future taxable profits is probable also when considering the period during which these can be utilized, as described below. Future income projections support the recognition of deferred tax assets. As of December 31, 2018, the recognized tax loss carry-forwards amounted to SEK 39,415 (47,360) million. The reduction is primarily attributable to utilization of the loss carry-forward against current year’s taxable income. 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 2019 1 — 2020 1 — 2021 168 25 2022 414 122 2023 121 23 2024 or later 38,710 8,279 Total 39,415 8,449 In addition to the table above there are tax loss carry-forwards of SEK 4,223 (4,544) million at a tax value of SEK 773 (842) million that have not been recognized due to judgments of the possibility they will be used against future taxable profits in the respective jurisdictions. The majority of these tax loss carry-forwards have an expiration date in excess of five years. |
H2 Earnings per share
H2 Earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
H2 Earnings per share | H2 Earnings per share 2018 2017 1) 2016 1) Basic Net income (loss) attributable to stockholders of the Parent Company (SEK million) –6,530 –32,576 833 Average number of shares outstanding, basic (millions) 3,291 3,277 3,263 Earnings (loss) per share, basic (SEK) –1.98 –9.94 0.26 Diluted Net income (loss) attributable to stockholders of the Parent Company (SEK million) –6,530 –32,576 833 Average number of shares outstanding, basic (millions) 3,291 3,277 3,263 Dilutive effect for stock purchase (millions) — — 40 Average number of shares outstanding, diluted (millions) 3,291 3,277 3,303 Earnings (loss) per share, diluted (SEK) –1.98 –9.94 0.25 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” When a company reports a loss, the number of shares used for calculating earnings diluted per share shall be the same as for basic calculation. |
H3 Statement of cash flows
H3 Statement of cash flows | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
H3 Statement of cash flows | H3 Interest paid in 2018 was SEK –829 million (SEK –794 million in 2017 and SEK –1,269 million in 2016) and interest received in 2018 was SEK –283 million (SEK 1 million in 2017 and SEK 110 million in 2016). Taxes paid, including withholding tax, were SEK –5,874 million in 2018 (SEK –4,724 million in 2017 and SEK –9,105 million in 2016). Cash and cash equivalents include cash of SEK 18,998 (18,403) million and temporary investments of SEK 19,391 (17,481) million. For more information regarding the disposition of cash and cash equivalents and unutilized credit commitments, see Note F4, “Interest-bearing liabilities.” Cash and cash equivalents as of December 31, 2018, include SEK 3.1 (3.1) billion in countries where there exists significant cross-border conversion restrictions due to hard currency shortage or strict government controls. This amount is therefore not considered available for general use by the Parent Company. Adjustments to reconcile net income to cash 2018 2017 1) 2016 1) Property, plant and equipment Depreciation 3,275 4,103 4,421 Impairment losses/reversals of impairments 568 2,211 148 Total 3,843 6,314 4,569 Intangible assets Amortizations Capitalized development expenses 2,559 2,681 1,815 Intellectual Property Rights, brands and other intangible assets 1,387 1,667 2,650 Total amortizations 3,946 4,348 4,465 Impairments Capitalized development expenses 254 2,245 85 Intellectual Property Rights, brands and other intangible assets — 2,019 — Goodwill 275 12,966 — Total impairments 529 17,230 85 Total 4,475 21,578 4,550 Total depreciation, amortization and impairment losses on property, plant and equipment and intangible assets 8,318 27,892 9,119 Taxes –1,897 –9,064 1) –6,449 1) Dividends from joint ventures/associated companies 2) 30 77 84 Undistributed earnings in joint ventures/ associated companies 2) –53 –21 –26 Gains/losses on sales of investments and operations, intangible assets and PP&E, net 3) 212 –167 –37 Other non-cash 4) 1,220 607 3,172 Total adjustments to reconcile net income to cash 7,830 19,324 5,863 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” 2) See Note E3, “Associated companies.” 3) See Note B4, “Other operating income and expense.” 4) Refers 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 2018 Cash flow from business combinations 1) –1,220 226 Acquisitions/divestments of other investments –398 107 Total –1,618 333 2017 Cash flow from business combinations 1) –62 459 Acquisitions/divestments of other investments –227 106 Total –289 565 2016 Cash flow from business combinations 1) –781 25 Acquisitions/divestments of other investments –203 337 Total –984 362 1) See also Note E2, “Business combinations.” |
H4 Related party transactions
H4 Related party transactions | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
H4 Related party transactions | H4 During 2018, various minor related party transactions were executed pursuant to contracts based on terms customary in the industry and negotiated on an arm’s length basis. For information regarding equity and Ericsson’s share of assets, liabilities and income in joint ventures and associated companies, see Note 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, 2018 | |
Text block [abstract] | |
H5 Fees to auditors | H5 Fees to auditors PwC Others Total 2018 Audit fees 98 4 102 Audit-related fees 11 2 13 Tax fees 9 2 11 Other fees 9 6 15 Total 127 14 141 2017 Audit fees 89 2 91 Audit-related fees 11 — 11 Tax fees 13 4 17 Other fees 9 7 16 Total 122 13 135 2016 Audit fees 90 3 93 Audit-related fees 10 — 10 Tax fees 10 8 18 Other fees 16 11 27 Total 126 22 148 The total fee to PwC and their networks of firms is SEK 127 (122) millions. For 2018 SEK 39 (39) million has been paid to the auditors for the audit engagement to the audit firm PricewaterhouseCoopers AB, SEK 9 (10) million for other statutory engagements, SEK 1 (3) million for tax advisory services and SEK 8 (5) million for other services. No valuation services has been performed. During the period 2016–2018, in addition to audit services, PwC provided certain audit-related services, tax and other services to the Company. The audit-related services include quarterly reviews, ISO audits, SSAE 16 reviews and services in connection with the issuing of certificates and opinions and consultation on financial accounting. The tax services include corporate tax compliance work. Other services include, work related to acquisitions and operational effectiveness. Audit fees to other auditors largely consist of local statutory audits. |
H6 Events after the reporting p
H6 Events after the reporting period | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
H6 Events after the reporting period | H6 Ericsson announces change to the Executive Team On 16 January 2019, Ericsson announced that Helena Norrman, Senior Vice President, Chief Marketing and Communications Officer and Head of Marketing and Corporate Relations, has decided to leave Ericsson to pursue opportunities outside the company. She will leave her position no later than June 30, 2019. Ericsson completes divestment of majority stake in MediaKind On February 1 2019, Ericsson announced it had closed the divestment of the MediaKind business to the private equity firm One Equity Partners. One Equity Partners become majority owner, while Ericsson has 49% of the shares after the transaction on January 31, 2019. Ericsson anticipates that the transaction will generate a positive impact on operating income in Q1 2019 that with current visibility is estimated to SEK 0.4–0.6 billion and will be reported in segment Emerging Business and Other. As of February 1, 2019, Ericsson’s 49% share of MediaKind results will be reported as share in earnings of JV and associated companies in segment Emerging Business and Other. MediaKind was in 2018 reported as part of segment Emerging Business and Other, as part Ericsson Media Solutions. Ericsson announces change to the Executive Team On 12 March 2019, Ericsson announced that Rafiah Ibrahim will leave her position as Senior Vice President and Head of Market Area Middle East & Africa and will take on a role as advisor to CEO Börje Ekholm. Ericsson’s Annual General Meeting On 27 March 2019, Ericsson held its Annual General Meeting in Stockholm, Sweden. Decisions at the AGM 2019 included: • Payment of a dividend of SEK 1 per share • Re-election of Ronnie Leten as Chair of the Board of Directors • Re-election of other members of the Board of Directors: Jon Fredrik Baksaas, Jan Carlson, Nora Denzel, Eric A. Elzvik, Börje Ekholm, Kurt Jofs, Kristin S. Rinne, Helena Stjernholm and Jacob Wallenberg Approval of Board of Directors’ fees: • Chair of the Board: SEK 4,075,000 (unchanged) • Other non-employee Board members: SEK 1,020,000 each (previously SEK 990,000) • Chair of the Audit and Compliance Committee: SEK 400,000 (previously SEK 350,000) • Other non-employee members of the Audit and Compliance Committee: SEK 250,000 each (unchanged) • Chairs of the Finance, Remuneration and Technology and Science Committees: SEK 200,000 each (unchanged) • Other non-employee members of the Finance, Remuneration and Technology and Science Committees: SEK 175,000 each (unchanged) • Approval for part of the Directors’ fees to be paid in the form of synthetic shares • Re-election of PricewaterhouseCoopers AB as external auditor • Approval of Guidelines for remuneration to Group Management • Implementation of a Long-Term Variable Compensation Program 2019 for the members of the Executive Team |
A1 Significant accounting pol_2
A1 Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Basis of presentation | Basis of presentation The financial statements are presented in millions of Swedish Krona (SEK). They are prepared on a historical cost basis, except for certain financial assets and liabilities that are stated at fair value: financial instruments classified as FVTPL, financial instruments classified as FVOCI and plan assets related to defined benefit pension plans. 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. In addition, a consolidated balance sheet is presented as of the beginning of the comparison year due to the retrospective restatement of IFRS 15, “Revenue from Contracts with Customers”. |
Basis of consolidation and composition of the Group | Basis of consolidation and composition of the Group The consolidated financial statements are prepared in accordance with the purchase method. Accordingly, consolidated stockholders’ equity includes equity in subsidiaries, joint ventures and associated companies earned only after their acquisition. Subsidiaries are all companies for which Telefonaktiebolaget LM Ericsson, directly or indirectly, is the parent. To be classified as a parent, Telefonaktiebolaget LM Ericsson, directly or indirectly, must control another company which requires that the Parent Company has power over that other company, is exposed to variable returns from its involvement and has the ability to use its power over that other company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that such control ceases. Intra-group balances and any unrealized income and expense arising from intra-group transactions are fully eliminated in preparing the consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. The Company is composed of a parent company, Telefonaktiebolaget LM Ericsson, with generally fully-owned subsidiaries in many countries of the world. The largest operating subsidiaries are the fully-owned telecom vendor companies Ericsson AB, incorporated in Sweden and Ericsson Inc., incorporated in the US. |
Foreign currency remeasurement and translation | Foreign currency remeasurement and translation Items included in the financial statements of each entity of the Company are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in Swedish Krona (SEK), which is the Parent Company’s functional and presentation currency. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of each respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end Changes in the fair value of monetary securities denominated in foreign currency classified as 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 OCI. Translation differences on monetary financial assets and liabilities are reported as part of the fair value gain or loss. |
Group companies | Group companies The results and financial position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet. Period income and expenses for each income statement are translated at period average exchange rates. All resulting net exchange differences are recognized as a separate component of Other comprehensive income (OCI). On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and of borrowings and other currency instruments designated as hedges of such investments, are accounted for in OCI. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in OCI are recognized in the income statement as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. The Company is continuously monitoring the economies with high inflation, the risk of hyperinflation and potential impact on the Company. There is no significant impact due to any currency translation of a hyper-inflationary economy. |
Revenue recognition | Revenue recognition IFRS 15, “Revenue from Contracts with Customers” is a principle-based model of recognizing revenue from customer contracts. It has a five-step model that requires revenue to be recognized when control over goods and services are transferred to the customer. The following paragraphs describes 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 vast 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 shall be recognized when control over the equipment is transferred to the customer at a point in time. This assessment shall be viewed from a customer’s perspective considering indicators such as transfer of titles and risks, customer acceptance, physical possession, and billing rights. For hardware sales, transfer of control is usually deemed to occur when the equipment arrives at the customer site and for software sales, when the licenses are made available to the customer. Software licences may be provided to the customer at a point in time, activated or ready to be activated by the customer at a later stage, therefore revenue is recognised when customer obtains control of the software. Contractual terms may vary, therefore judgment will be applied when assessing the indicators of transfer of control for both hardware and software sales. Software licences 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 and 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 may be 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, generally pro-rata |
Customized solution | Customized solution Some products and services are sold together as part of a customized solution to the customer. This type of contract requires significant installation and integration services to be delivered within the solution, normally over a period of more than 1 year. These products and services are viewed together as a combined performance obligation. This type of contract is usually sold as a firm contract in which the scope of the solution and obligations of both parties are clearly defined for the duration of the contract. Customized solution does not have any alternative use to the Company as it cannot be sold to or used by other customers. Revenue for the combined performance obligation shall be recognized over time if progress of completion can be reliably measured and enforceable right to payment exists over the duration of the contract. The progress of completion is estimated by reference to the output delivered such as achievement of contract milestones and customer acceptance. This method determines revenue milestones over the duration of the contract, and it is considered appropriate as it reflects the nature of the customized solution and how integration service is delivered in these projects. If the criteria above are not met, then all revenue shall be recognized upon the completion of the customized solution, when final acceptance is provided by the customer. Costs incurred in delivering customised solutions are recognized as costs of sales when the related revenue milestone is recognized in the Income statement. Costs incurred relating to future revenue milestones are recognized as Inventories and assessed for recoverability on a regular basis. Transaction price under these contracts is usually a fixed fee, split into a number of progress payments or billing milestones as defined in the contract. In most cases, revenue recognized is limited to the progress payments or unconditional billing milestones over the duration of the contract, therefore no contract asset or contract liability arises on these contracts. In some contracts, revenue may be recognized in advance of billing milestones if enforceable payment rights exist at all times over the contract duration. This will result in an unbilled receivable balance until billing milestones are reached. Amounts billed are normally subject to payments terms within 60 days from invoice date. Customer finance agreements may be agreed separately with some customers where payment terms exceed 179 days. Contract for customized solution applies to the Business Support Systems (BSS) business within the segment Digital Services and the Media Solutions business within the segment Emerging Business and Other. |
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 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 occurs. 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 Digital Services. |
Customer contract related balances | Customer contract related balances Trade receivables include amounts that have been 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. In accordance with IFRS 15, 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. Under previous standards these unbilled sales balances have been included within trade receivables. Contract liability relates to amounts that are paid by or due from customers for which performance obligations are unsatisfied or partially satisfied. Under previous standards these balances have been disclosed as deferred revenue within other current liabilities, and the Company concluded that the balances meet the definition of contract liability under IFRS 15. Advances from customers are also included in the contract liability balance. |
Segment reporting | Segment reporting An operating segment is a component of a company whose operating results are regularly reviewed by the Company’s chief operating decision maker, (CODM), to make decisions about resources to be allocated to the segment and assess its performance. The President and the Chief Executive Officer is defined as the CODM function in the Company. The segment presentation, as per each segment, is based on the Company’s accounting policies as disclosed in this note. The Company’s segment disclosure about geographical areas is based on the country in which transfer of risks and rewards occur. For further information, see Note B1, “Segment information.” |
Inventories | Inventories Inventories are measured at the lower of cost or net realizable value on a first-in, first-out Risks of obsolescence have been measured by estimating market value based on future customer demand and changes in technology and customer acceptance of new products. A significant part of Inventories is Contract work in progress (CWIP). Recognition and derecognition of CWIP relates to the Company’s revenue recognition principles meaning that costs incurred under a customer contract are 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. |
Trade payables | Trade payables See accounting policies under the subheading for Financial instruments and risk management. |
Goodwill | Goodwill As from the acquisition date, goodwill acquired in a business combination is allocated to each cash-generating unit (CGU) of the Company expected to benefit from the synergies of the combination. An annual impairment test for the CGUs to which goodwill has been allocated is performed in the fourth quarter, or when there is an indication of impairment. An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The recoverable amount is the higher of the value in use and the fair value less costs of disposal. In assessing value in use, the estimated future cash flows after tax are discounted to their present value using an after-tax before-tax before-tax Additional disclosure is required in relation to goodwill impairment testing: see Note A2, “Critical accounting estimates and judgments” below and Note C1, “Intangible assets.” |
Intangible assets | Intangible assets Intangible assets other than goodwill Intangible assets other than goodwill comprise intangible assets acquired through business combinations, such as patents, customer relations, trademarks and software, as well as capitalized development expenses and separately acquired intangible assets, mainly consisting of software. At initial recognition, acquired intangible assets related to business combinations are stated at fair value and capitalized development expenses and software are stated at cost. Subsequent to initial recognition, these intangible assets are stated at initially recognized amounts less accumulated amortization and any impairment. Amortization and any impairment losses are included in Research and development expenses, which mainly consists of capitalized development expenses and technology; in Selling and administrative expenses, which mainly consists of expenses relating to customer relations and brands; and in Cost of sales. Costs incurred for development of products to be sold, leased, or otherwise marketed or intended for internal use are capitalized as from when technological and economic feasibility has been established until the product is available for sale or use. Research and development expenses directly related to orders from customers are accounted for as a part of Cost of sales. Other research and development expenses are charged to income as incurred. Amortization of acquired intangible assets, such as patents, customer relations, trademarks, and software, is made according to the straight-line method over their estimated useful lives, not exceeding ten years. The Company has not recognized any intangible assets with indefinite useful life other than goodwill. Impairment tests are performed whenever there is an indication of possible impairment. Tests are performed as for goodwill, see above. However, intangible assets not yet available for use are tested annually. Corporate assets have been allocated to cash-generating units in relation to each unit’s proportion of total net sales. The amount related to corporate assets is not significant. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. In Note 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, servers and other technical assets, other equipment, tools and installation and construction in process and advance payment. They are stated at cost less accumulated depreciation and any impairment losses. Depreciation is charged to income, on a straight-line basis, over the estimated useful life of each component of an item of property, plant, and equipment, including buildings. Estimated useful lives are, in general, 25–50 years for real estate and 3–10 years for machinery and equipment. Depreciation and any impairment charges are included in Cost of sales, Research and development or Selling and administrative expenses. The Company recognizes in the carrying amount of an item of property, plant, and equipment the cost of replacing a component and derecognizes the residual value of the replaced component. Impairment testing as well as recognition or reversal of impairment of property, plant and equipment is performed in the same manner as for intangible assets other than goodwill, see description under “Intangible assets other than goodwill” above. Gains and losses on disposals are determined by comparing the proceeds less cost to sell with the carrying amount and are recognized within Other operating income and expenses in the income statement. |
Leasing | Leasing Leasing when the Company is the lessee Leases on terms in which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that type of asset, although the depreciation period must not exceed the lease term. Other leases are operating leases, and the leased assets under such contracts are not recognized on the balance sheet. Costs under operating leases are recognized in the income statement on a straight-line basis over the term of the lease. Lease incentives received are recognized as an integral part of the total lease expense, over the term of the lease. Leasing when the Company is the lessor Leasing contracts with the Company as lessor are classified as finance leases when the majority of risks and rewards are transferred to the lessee, and otherwise as operating leases. Under a finance lease, a receivable is recognized at an amount equal to the net investment in the lease and revenue is recognized in accordance with the revenue recognition principles. Under operating leases the equipment is recorded as property, plant and equipment and revenue as well as depreciation is recognized on a straight-line basis over the lease term. |
Provisions and contingent liabilities | Provisions and contingent liabilities Provisions are made when there are legal or constructive obligations as a result of past events and when it is probable that an outflow of resources will be required to settle the obligations and the amounts can be reliably estimated. When the effect of the time value of money is material, discounting is made of estimated outflows. However, the actual outflows as a result of the obligations may differ from such estimates. The provisions are mainly related to restructuring, customer and supplier related provisions, warranty commitments and other obligations, such as unresolved income tax and value added tax issues, claims or obligations as a result of patent infringement and other litigations and customer finance guarantees . Product warranty commitments consider probabilities of all material quality issues based on historical performance for established products and expected performance for new products, estimates of repair cost per unit, and volumes sold still under warranty up to the reporting date. A restructuring obligation is considered to have arisen when the Company has a detailed formal plan for the restructuring (approved by management), which has been communicated in such a way that a valid expectation has been raised among those affected. Provision for restructuring is recorded when the Company can reliably estimate the liabilities relating to the obligation. Customer contract 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. These contract loss estimates may include penalties under a loss contract. Other provisions include provisions for unresolved tax issues, litigations and other provisions. The Company provides for estimated future settlements related to patent infringements based on the probable outcome of each infringement. The actual outcome or actual cost of settling an individual infringement may vary from the Company’s estimate. The Company estimates the outcome of any potential patent infringement made known to the Company through assertion and through the Company’s own monitoring of patent-related cases in the relevant legal systems. To the extent that the Company makes the judgment that an identified potential infringement will more likely than not result in an outflow of resources, the Company records a provision based on the Company’s best estimate of the expenditure required to settle with the counterpart. In the ordinary course of business, the Company is subject to proceedings, lawsuits and other unresolved claims, including proceedings under laws and government regulations and other matters. These matters are often resolved over a long period of time. The Company regularly assesses the likelihood of any adverse judgments in or outcomes of these matters, as well as potential ranges of possible losses. Provisions are recognized when it is probable that an obligation has arisen and the amount can be reasonably estimated based on a detailed analysis of each individual issue. Certain present obligations are not recognized as provisions as it is not probable that an economic outflow will be required to settle the obligations or the amount of the obligation cannot be measured with sufficient reliability. Such obligations are reported as contingent liabilities. For further detailed information, see Note 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. |
Business combinations | Business combinations At the acquisition of a business, the cost of the acquisition, being the purchase price, is measured as the fair value of the assets given, and liabilities incurred or assumed at the date of exchange, including any cost related to contingent consideration. Transaction costs attributable to the acquisition are expensed as incurred. The acquisition cost is allocated to acquired assets, liabilities and contingent liabilities based upon appraisals made, including assets and liabilities that were not recognized on the acquired entity’s balance sheet, for example intangible assets such as customer relations, brands, patents and financial liabilities. Goodwill arises when the purchase price exceeds the fair value of recognizable acquired net assets. In acquisitions with non-controlling In case there is a put option for non-controlling |
Non-controlling interest | Non-controlling The Company treats transactions with non-controlling non-controlling non-controlling When the Company ceases to have control, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest in an associate or financial asset. In addition, any amounts previously recognized in Other comprehensive income in respect of that entity are accounted for as if the Company had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in Other comprehensive income are reclassified to profit or loss. At acquisition, there is a choice on an acquisition-by-acquisition non-controlling non-controlling |
Joint ventures and associated companies | Joint ventures and associated companies Joint ventures and associated companies are accounted for in accordance with the equity method. Under the equity method, the investment in joint venture or associate is initially recognized at cost and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. If the Company’s interest in an associated company is nil, the Company shall not, as prescribed by IFRS, recognize its part of any future losses. Provisions related to obligations for such an interest shall, however, be recognized in relation to such an interest. Investments in associated companies, is i.e., when the Company has significant influence and the power to participate in the financial and operating policy decisions of the associated company, but is not in control or joint control over those policies. Normally, this is the case in voting stock interest, including effective potential voting rights, which stand at least at 20% but not more than 50%. The Company’s share of income before taxes is reported in item “Share in earnings of joint ventures and associated companies,” included in Operating Income. This reflects the fact that these interests are held for operating rather than investing or financial purposes. Ericsson’s share of income taxes related to associated companies is reported under the line item “Taxes,” in the income statement. Unrealized gains on transactions between the Company and its joint ventures and associated companies are eliminated to the extent of the Company’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Shares in earnings of joint ventures and associated companies included in consolidated equity which are undistributed are reported in Retained earnings in the balance sheet. Impairment testing as well as recognition or reversal of impairment of investments in each joint venture and associated company is performed in the same manner as for intangible assets other than goodwill. The entire carrying value of each investment, including goodwill, is tested as a single asset. See also description under “Intangible assets other than goodwill” below. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in Other comprehensive income are reclassified to profit or loss where appropriate. In Note 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. |
Financial assets | Financial assets Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. Regular purchases and sales of financial assets are recognized on the settlement date. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. Separate assets or liabilities are recognized if any rights and obligations are created or retained in the transfer. The Company classifies its financial assets in the following categories: at amortized cost, at fair value through other comprehensive income (FVOCI), and at fair value through profit or loss (FVTPL). The classification depends on the 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 by discounting the expected future cash flows at prevailing interest rates. Valuations of foreign exchange options and Interest Rate Guarantees (IRG) are made by using the Black-Scholes formula. Inputs to the valuations are market prices for implied volatility, foreign exchange and interest rates. Financial assets at 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. 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. 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. A financial asset is classified as held for trading if it is acquired principally for the purpose of selling in the near term. Derivatives are classified as held for trading, unless they are designated as hedging instruments for the purpose of hedge accounting. Assets held for trading are classified as current assets. Debt instruments classified as FVTPL, but not held for trading, are classified on the balance sheet based on their maturity date (i.e., those with a maturity longer than one year are classified as non-current). non-current Gains or losses arising from changes in the fair values of the FVTPL category (excluding derivatives and customer financing) are presented in the income statement within financial income in the period in which they arise. Gains and losses on derivatives are presented in the income statement as follows. Gains and losses on derivatives that hedge operating assets or liabilities, financial assets and financial liabilities are presented as cost of sales, financial income and financial expense, respectively. Gains and losses on customer financing are presented in the income statement as selling expenses. 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 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 difference 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. Allowances for trade receivables and contract assets 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. |
Financial liabilities | Financial liabilities Financial liabilities are recognized when the Company becomes bound to the contractual obligations of the instrument. Financial liabilities are derecognized when they are extinguished, i.e., when the obligation specified in the contract is discharged, cancelled or expires. Borrowings Borrowings managed by the Ericsson Internal Bank are designated FVTPL because they are managed on a fair value basis. Changes in fair value are recognized in the income statement, except for changes in fair value due to changes in credit risk which are recognized in other comprehensive income. Borrowings not managed by the Ericsson Internal Bank are initially recognized at fair value, net of transaction costs incurred. These borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. Trade payables Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. |
Financial guarantees | Financial guarantees Financial guarantee contracts are initially recognized at fair value (i.e., usually the fee received). Subsequently, these contracts are measured at the higher of: • The expected credit losses. • The recognized contractual fee less cumulative amortization when amortized over the guarantee period, using the straight-line-method. |
Accounting policies applied prior to 2018 | Accounting policies applied prior to 2018 Prior to 2018, IAS 39 was applied instead of IFRS 9. Comparative information has not been restated. The following accounting policies apply to periods prior to 2018. Financial assets Financial assets were recognized when the Company became a party to the contractual provisions of the instrument. Regular purchases and sales of financial assets were recognized on the settlement date. Financial assets were derecognized when the rights to receive cash flows from the investments had expired or had been transferred and the Company had transferred substantially all risks and rewards of ownership. Separate assets or liabilities were recognized if any rights and obligations were created or retained in the transfer. The Company classified its financial assets in the following categories: at fair value through profit or loss, loans and receivables, and available-for-sale. Financial assets were 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 were initially recognized at fair value, and transaction costs were expensed in the income statement. The fair values of quoted financial investments and derivatives were based on quoted market prices or rates. If official rates or market prices were not available, fair values were calculated by discounting the expected future cash flows at prevailing interest rates. Valuations of foreign exchange options and Interest Rate Guarantees (IRG) were made by using the Black-Scholes formula. Inputs to the valuations were market prices for implied volatility, foreign exchange and interest rates. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss either were designated as such at initial recognition or were financial assets held for trading. A financial asset was classified as held for trading if it was acquired principally for the purpose of selling in the near term. Derivatives were classified as held for trading, unless they were designated as hedging instruments for the purpose of hedge accounting. Assets held for trading were classified as current assets. Gains or losses arising from changes in the fair values of the “Financial assets at fair value through profit or loss” category (excluding derivatives) were presented in the income statement within Financial income in the period in which they arise. Derivatives were presented in the income statement either as Cost of sales, Other operating income, Financial income or Financial expense, depending on the intent with the transaction. Loans and receivables Receivables, including those that relate to customer financing, were subsequently measured at amortized cost using the effective interest rate method, less allowances for impairment charges. Trade receivables included amounts due from customers. The balance represented amounts billed to customers as well as amounts where risk and rewards had been transferred to the customer, but the invoice had not yet been issued. Collectability of the receivables was assessed for purposes of initial revenue recognition. Available-for-sale Investments in liquid bonds with low credit risk which were not held for trading are classified as available-for-sale. non-current. available-for-sale Dividends on available-for-sale Changes in the fair value of monetary securities denominated in a foreign currency and classified as available-for-sale non-monetary non-monetary available-for-sale available-for-sale Impairment in relation to financial assets At each balance sheet date, the Company assessed whether there was objective evidence that a financial asset or a group of financial assets was impaired. In the case of equity securities classified as available-for-sale, available-for-sale An assessment of impairment of receivables was performed when there was objective evidence that the Company would not be able to collect all amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor would enter bankruptcy or financial reorganization, and default or delinquency in payments were considered indicators that the trade receivable was impaired. The amount of the allowance was the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset was reduced through the use of an allowance account, and the amount of the loss was recognized in the income statement and presented as impairment losses on trade receivables. In previous years, this was presented within selling expenses. When a trade receivable was finally established as uncollectible, it was written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off were credited to impairment losses on trade receivables in the income statement. Financial liabilities Financial liabilities were recognized when the Company became bound to the contractual obligations of the instrument. Financial liabilities were derecognized when they were extinguished, i.e., when the obligation specified in the contract was discharged, cancelled or expired. Borrowings Borrowings were initially recognized at fair value, net of transaction costs incurred. Borrowings were subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value was recognized in the income statement over the period of the borrowings using the effective interest method. Borrowings were classified as current liabilities unless the Company had an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. Trade payables Trade payables were recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. Fair value hedging and fair value hedge accounting The purpose of fair value hedges was to hedge the variability in the fair value of fixed-rate debt (issued bonds) from changes in the relevant benchmark yield curve for its entire term by converting fixed interest payments to a floating rate (e.g., STIBOR or LIBOR) by using interest rate swaps (IRS). The credit risk/ spread was not hedged. The fixed leg of the IRS was matched against the cash flows of the hedged bond. Hereby, the fixed-rate bond/debt was converted into a floating-rate debt in accordance with the policy. Changes in the fair value of derivatives that were designated and qualify as fair value hedges were recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that were attributable to the hedged risk, when hedge accounting was applied. The Company only applied fair value hedge accounting for hedging fixed interest risk on borrowings. Both gains and losses relating to the interest rate swaps hedging fixed rate borrowings and the changes in the fair value of the hedged fixed rate borrowings attributable to interest rate risk were recognized in the income statement within Financial expenses. If the hedge no longer met the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method was used was amortized to the income statement over the remaining period to maturity. When applying fair value hedge accounting, derivatives were initially recognized at fair value at trade date and subsequently re-measured At the inception of the hedge, the Company documented the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documented its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that were used in hedging transactions were highly effective in offsetting changes in fair values or cash flows of the hedged items. The fair value of a hedging derivative was classified as a non-current Financial guarantees Financial guarantee contracts were initially recognized at fair value (i.e., usually the fee received). Subsequently, these contracts were measured at the higher of: • The expected credit losses. • The recognized contractual fee less cumulative amortization when amortized over the guarantee period, using the straight-line-method. • The best estimate of the net expenditure comprising future fees and cash flows from subrogation rights. |
Post-employment benefits | Post-employment benefits Pensions and other post-employment benefits are classified as either defined contribution plans or defined benefit plans. Under a defined contribution plan, the Company’s only obligation is to pay a fixed amount to a separate entity (a pension trust fund) with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits. The related actuarial and investment risks fall on the employee. The expenditures for defined contribution plans are recognized as expenses during the period when the employee provides service. Under a defined benefit plan, it is the Company’s obligation to provide agreed benefits to current and former employees. The related actuarial and investment risks fall on the Company. The present value of the defined benefit obligations for current and former employees is calculated using the Projected Unit Credit Method. The discount rate for each country is determined by reference to market yields on high-quality corporate bonds that have maturity dates approximating the terms of the Company’s obligations. In countries where there is no deep market in such bonds, the market yields on government bonds are used. The calculations are based upon actuarial assumptions, assessed on a quarterly basis, and are as a minimum prepared annually. Actuarial assumptions are the Company’s best estimate of the variables that determine the cost of providing the benefits. When using actuarial assumptions, it is possible that the actual results will differ from the estimated results or that the actuarial assumptions will change from one period to another. These differences are reported as actuarial gains and losses. They are, for example, caused by unexpectedly high or low rates of employee turnover, changed life expectancy, salary changes, remeasurement of plan assets and changes in the discount rate. Actuarial gains and losses are recognized in OCI in the period in which they occur. The Company’s net liability for each defined benefit plan consists of the present value of pension commitments less the fair value of plan assets and is recognized net on the balance sheet. When the result is a net benefit to the Company, the recognized asset is limited to the present value of any future refunds from the plan or reductions in future contributions to the plan. Interest cost on the defined benefit obligation and interest income on plan assets is calculated as a net interest amount by applying the discount rate to the net defined benefit liability. All past service costs are recognized immediately. Swedish special payroll tax is accounted for as a part of the pension cost and the pension liability respectively. Payroll taxes related to actuarial gains and losses are included in determining actuarial gains and losses, reported under OCI. In Note 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 services received under the plans. The conditions under a program shall be considered as prescribed in IFRS 2, “Share-based payment.” As from 2017 the newly 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. The amount charged to the income statement for these plans is reversed in equity each time of the income statement charge. The reason for this IFRS accounting principle is that compensation cost for a share settled program is a cost with no direct cash flow impact. All plans have service conditions and some of them have performance or market conditions. For further detailed information, see Note 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 end of the service period. The fair value of the synthetic shares, being the cash equivalents of shares, is therefore reassessed and amended during the service period. Otherwise the accounting is similar to a share settled plan. For further detailed information, see Note G3, “Share-based compensation.” Compensation to the Board of Directors During 2008, the Parent Company introduced a share-based compensation program as a part of the remuneration to the Board of Directors (a synthetic share program). The program gives non-employee |
Income taxes | Income taxes Income taxes in the consolidated financial statements include both current and deferred taxes. Income taxes are reported in the income statement unless the underlying item is reported directly in equity or OCI. For those items, the related income tax is also reported directly in equity or OCI. A current tax liability or asset is recognized for the estimated taxes payable or refundable for the current year or prior years. Deferred tax is recognized for temporary differences between the book values of assets and liabilities and their tax values and for tax loss carry- forwards. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences and tax loss carry-forwards can be utilized. In the recognition of income taxes, the Company offsets current tax receivables against current tax liabilities and deferred tax assets against deferred tax liabilities in the balance sheet, when the Company has a legal right to offset these items and the intention to do so. Deferred tax is not recognized for the following temporary differences: goodwill not deductible for tax purposes, for the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and for differences related to investments in subsidiaries when it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is measured at the tax rate that is expected to be applied to the temporary differences when they reverse, based on the tax laws that have been enacted or substantively enacted by the reporting date. An adjustment of deferred tax asset/liability balances due to a change in the tax rate is recognized in the income statement, unless it relates to a temporary difference earlier recognized directly in equity or OCI, in which case the adjustment is also recognized in equity or OCI. The measurement of deferred tax assets involves judgment regarding the deductibility of costs not yet subject to taxation and estimates regarding sufficient future taxable income to enable utilization of unused tax losses in different tax jurisdictions. All deferred tax assets are subject to annual review of probable utilization. In Note 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 stockholders of the Parent Company by the weighted average number of shares outstanding (total number of shares less treasury stock) during the year. Diluted earnings per share are calculated by dividing net income attributable to stockholders of the Parent Company, when appropriately adjusted by the sum of the weighted average number of ordinary shares outstanding and dilutive potential ordinary shares. Potential ordinary shares are treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share. Rights to matching shares are considered dilutive when the actual fulfillment of any performance conditions as of the reporting date would give a right to ordinary shares. |
Statement of cash flows | Statement of cash flows The statement of cash flows is prepared in accordance with the indirect method. Cash flows in foreign subsidiaries are translated at the average exchange rate during the period. Payments for subsidiaries acquired or divested are reported as cash flow from investing activities, net of cash and cash equivalents acquired or disposed of respectively. Cash and cash equivalents consist of cash, bank, and interest-bearing securities that are highly liquid monetary financial instruments with a remaining maturity of three months or less at the date of acquisition. |
New accounting standards and interpretations | New accounting standards and interpretations A number of issued new standards, amendments to standards and interpretations are not yet effective for the year ended December 31, 2018 and have not been applied in preparing these consolidated financial statements. Below the applicable standards/interpretations that have been issued are described. IFRS 16 – Leases In January 2016, IASB issued a new lease standard, IFRS 16, that will replace IAS 17 Leases and the related interpretations IFRIC 4, SIC-15 SIC-27. |
A1 Significant accounting pol_3
A1 Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Estimated Impact of IFRS 16 on Balance Sheet Items | Estimated opening balance sheet impact of IFRS 16 (discounted) SEK billion IFRS 16 adjustment Right-of-use 8.7 Lease liabilities, current 2.0 Lease liabilities, non-current 8.1 Equity 0.3 |
A3 Changes in accounting poli_2
A3 Changes in accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Impact on Implementation of IFRS 9 and IFRS 15 on Equity and Other Balance Sheet Items | Impact of IFRS 9 and IFRS 15 on balance sheet items 2017 As reported IFRS 15 Restated IFRS 9 Adjusted ASSETS Non-current Deferred tax assets 21,228 735 21,963 288 22,251 Current assets Inventories 24,960 587 25,547 — 25,547 Contract assets — 13,120 13,120 — 13,120 Trade receivables 63,210 –15,105 48,105 –1,240 46,865 EQUITY AND LIABILITIES Equity Stockholder’s equity 99,540 –2,605 96,935 –983 95,952 Non-current Borrowings, non-current 30,500 — 30,500 31 30,531 Current liabilities Provisions, current 6,350 –67 6,283 — 6,283 Contract liabilities — 29,076 29,076 — 29,076 Trade payables 26,321 –1 26,320 — 26,320 Other current liabilities 62,370 –27,065 35,305 — 35,305 2015 and 2016 As reported IFRS 15 Restated As reported IFRS 15 Restated ASSETS Non-current Deferred tax assets 13,183 1,228 14,411 15,522 1,476 16,998 Current assets Inventories 28,436 169 28,605 30,307 1,311 31,618 Contract assets — 20,188 20,188 — 17,773 17,773 Trade receivables 71,069 –21,880 49,189 68,117 –19,759 48,358 EQUITY AND LIABILITIES Equity Stockholder’s equity 146,525 –4,353 142,172 139,817 –5,235 134,582 Non-current Borrowings, non-current 22,744 — 22,744 18,653 — 18,653 Current liabilities Provisions, current 3,662 — 3,662 5,411 –37 5,374 Contract liabilities — 20,324 20,324 — 24,930 24,930 Trade payables 22,389 — 22,389 25,318 526 25,844 Other current liabilities 58,663 –16,267 42,396 56,003 –19,381 36,622 |
Summary of Reclassification of Financial Instruments | Reclassification of financial instruments as of 1.1.2018 MSEK Classification Classification Carrying Carrying Financial assets Customer finance Loans and FVTPL 3,931 3,931 Trade receivables Loans and FVOCI 48,105 46,865 1) Interest-bearing securities – held for trading FVTPL FVTPL 6,118 6,118 Interest-bearing securities – managed on a fair value basis Available- for-sale FVTPL 25,433 25,433 Interest-bearing securities – other Loans and Amortized 266 266 Cash equivalents – held for trading FVTPL FVTPL 14,345 14,345 Cash equivalents – other Loans and Amortized 3,136 3,136 Other investments in shares and participations Available- for-sale FVTPL 1,279 1,279 Other financial investments 2) FVTPL FVTPL 820 820 Derivatives 3) FVTPL FVTPL 1,293 1,293 Financial liabilities Borrowings – managed on a fair value basis Amortized Designated 28,771 28,802 4) Borrowings – other Amortized Amortized 4,274 4,274 Trade payables Amortized Amortized 26,320 26,320 Derivatives 3) FVTPL FVTPL 926 926 1) Change in value due to additional impairment allowance. 2) Other financial investments are presented in other financial assets. 3) Derivatives are presented in other current receivables or other current liabilities in the consolidated balance sheet 4) Change in value due to transition from amortized cost to fair value. |
Summary of Estimated Impact of IFRS 15 on Equity | Impact of IFRS 15 on Equity As reported Impact of Restated January 1, 2016 147,366 –4,353 143,013 December 31, 2016 140,492 –5,235 135,257 December 31, 2017 100,176 –2,605 97,571 |
Summary of Estimated Impact of IFRS 15 on Income Statement Items | Impact of IFRS 15 on Income statement items As reported Impact of Restated 2017 Net sales 201,303 4,075 205,378 Cost of sales –156,758 –693 –157,451 Gross income 44,545 3,382 47,927 Operating income (loss) –38,126 3,383 –34,743 Taxes 4,267 –742 3,525 Net income (loss) –35,063 2,630 –32,433 Earnings per share, basic (SEK) –10.74 0.80 –9.94 Earnings per share, diluted (SEK) –10.74 0.80 –9.94 2016 Net sales 222,608 –2,292 220,316 Cost of sales –156,243 1,181 –155,062 Gross income 66,365 –1,111 65,254 Operating income (loss) 6,299 –1,112 5,187 Taxes –2,131 249 –1,882 Net income (loss) 1,895 –883 1,012 Earnings per share, basic (SEK) 0.53 –0.27 0.26 Earnings per share, diluted (SEK) 0.52 –0.27 0.25 |
B1 Segment information (Tables)
B1 Segment information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Operating Segments | Operating segments 2018 Networks Digital Managed Emerging Total Unallocated Group Segment sales 138,570 38,089 25,770 8,409 210,838 — 210,838 Net sales 138,570 38,089 25,770 8,409 210,838 — 210,838 Gross income 55,153 8,318 2,886 1,843 68,200 — 68,200 Gross margin (%) 39.8 % 21.8 % 11.2 % 21.9 % 32.3 % — 32.3 % Operating income (loss) 19,421 –13,852 1,093 –5,420 1,242 — 1,242 Operating margin (%) 14.0 % –36.4 % 4.2 % –64.5 % 0.6 % — 0.6 % Financial income –316 Financial expenses –2,389 Income after financial items –1,463 Taxes –4,813 Net income (loss) –6,276 Other segment items Share in earnings of JV and associated companies 28 27 3 — 58 — 58 Amortizations –830 –2,295 –14 –807 –3,946 — –3,946 Depreciations –1,717 –933 –169 –456 –3,275 — –3,275 Impairment losses –308 –406 –29 –354 –1,097 — –1,097 Restructuring expenses –1,781 –5,366 –276 –592 –8,015 — –8,015 Gains/losses on sale of investments and operations –132 –36 –57 — –225 — –225 Operating segments 2017 1) Networks Digital Managed Emerging Total Unallocated Group Segment sales 132,285 38,752 26,472 7,869 205,378 — 205,378 Net sales 132,285 38,752 26,472 7,869 205,378 — 205,378 Gross income 43,428 4,698 –1,574 1,375 47,927 — 47,927 Gross margin (%) 32.8 % 12.1 % –5.9 % 17.5 % 23.3 % — 23.3 % Operating income (loss) 10,455 –27,282 –4,089 –13,827 –34,743 — –34,743 Operating margin (%) 7.9 % –70.4 % –15.4 % –175.7 % –16.9 % — –16.9 % Financial income –372 Financial expenses –843 Income after fi nancial items –35,958 Taxes 3,525 Net income (loss) –32,433 Other segment items Share in earnings of JV and associated companies 22 8 –6 — 24 — 24 Amortizations –1,104 –2,465 –14 –765 –4,348 — –4,348 Depreciations –1,883 –1,268 –193 –759 –4,103 — –4,103 Impairment losses –1,413 –9,349 –108 –8,571 –19,441 — –19,441 Restructuring expenses –4,828 –2,513 –675 –485 –8,501 — –8,501 Gains/losses on sale of investments and operations 316 –56 1 –67 194 — 194 1) Operating segments 2016 1) Networks Digital Managed Emerging Total Unallocated Group Segment sales 140,076 42,774 28,780 8,686 220,316 — 220,316 Net sales 140,076 42,774 28,780 8,686 220,316 — 220,316 Gross income 46,193 15,603 1,244 2,214 65,254 — 65,254 Gross margin (%) 33.2 % 35.0 % 4.0 % 25.5 % 29.6 % — 29.6 % Operating income 16,669 –7,146 –326 –4,010 5,187 — 5,187 Operating margin (%) 11.9 % –15.3 % –1.7 % –46.2 % 2.4 % — 2.4 % Financial income –135 Financial expenses –2,158 Income after fi nancial items 2,894 Taxes –1,882 Net income 1,012 Other segment items Share in earnings of JV and associated companies 11 22 — –2 31 — 31 Amortizations –1,526 –1,923 –18 –998 –4,465 — –4,465 Depreciations –2,532 –1,061 –341 –487 –4,421 — –4,421 Impairment losses –90 –38 –12 –101 –241 — –241 Reversals of impairment losses 5 2 1 — 8 — 8 Restructuring expenses –3,413 –3,176 –382 –596 –7,567 — –7,567 Gains/losses on sale of investments and operations 72 27 18 6 123 — 123 1) |
Summary of Geographical Information | Market area 2018 Net sales Non-current 5) Networks Digital Managed Emerging Total Total South East Asia, Oceania & India 21,337 4,824 3,388 40 29,589 445 North East Asia 4) 15,915 4,849 1,465 80 22,309 1,833 North America 3) 46,452 8,358 3,680 96 58,586 9,397 Europe & Latin America 1) 2) 34,413 12,339 13,207 313 60,272 39,481 Middle East & Africa 13,300 6,284 4,030 15 23,629 50 Other 1) 2) 3) 4) 6) 7,153 1,435 — 7,865 16,453 — Total 138,570 38,089 25,770 8,409 210,838 51,206 1) 6) 2 315 34,434 2) 6) 35 941 38,423 3) 6) 61 446 8,349 4) 6) 14 601 1,525 5) Total non-current 6) Including IPR licensing revenue reported under Other above. Market area 2017 5) Net sales Non-current 6) Networks Digital Managed Emerging Total Total South East Asia, Oceania & India 23,367 4,755 3,216 8 31,346 512 North East Asia 4) 16,239 5,463 1,867 14 23,583 1,516 North America 3) 40,645 8,035 3,207 114 52,001 8,387 Europe & Latin America 1) 2) 30,236 12,147 14,138 280 56,801 39,559 Middle East & Africa 14,075 6,800 4,044 46 24,965 63 Other 1) 2) 3) 4) 7) 7,723 1,552 — 7,407 16,682 — Total 132,285 38,752 26,472 7,869 205,378 50,037 1) 7) 3,334 34,381 2) 7) 36,472 37,895 3) 7) 54,694 7,092 4) 7) 14,983 1,123 5) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” 6) Total non-current 7) Including IPR licensing revenue reported under Other above. Market area 2016 5) Net sales Non-current 6) Networks Digital Managed Emerging Total Non-current South East Asia, Oceania & India 23,741 4,356 3,355 5 31,457 690 North East Asia 4) 18,694 6,777 1,513 9 26,993 1,556 North America 3) 37,863 7,986 6,017 85 51,951 14,650 Europe & Latin America 1) 2) 34,179 14,584 13,620 110 62,493 59,737 Middle East & Africa 16,108 6,987 4,275 2 27,372 86 Other 1) 2) 3) 4) 7) 9,491 2,084 — 8,475 20,050 — Total 140,076 42,774 28,780 8,686 220,316 76,719 1) 7) 3,365 53,111 2) 7) 38,783 57,759 3) 7) 56,332 11,053 4) 7) 18,886 530 5) 2016 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” 6) Total non-current 7) Including IPR licensing revenue reported under Other above. |
B2 Net sales (Tables)
B2 Net sales (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Net Sales | Net sales 2018 2017 1) 2016 1) Hardware 76,792 70,862 72,675 Software 44,633 43,896 49,096 Services 89,413 90,620 98,545 Net sales 210,838 205,378 220,316 Of which IPR licensing revenues 7,954 8,250 10,256 Export sales from Sweden 109,969 87,463 105,552 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
B3 Expenses by nature (Tables)
B3 Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Expenses by Nature | Expenses by nature 2018 2017 1) 2016 1) Goods and services 135,554 128,180 133,809 Employee remuneration 67,161 76,502 77,774 Amortization and depreciation 7,221 8,451 8,886 Impairments, obsolescence allowances and revaluation 3,470 11,531 1,325 Financial expenses 2,389 843 2,158 Taxes 4,813 –3,525 1,882 Expenses incurred 220,608 221,982 225,834 Inventory increase/decrease (–/+) 2) –2,995 4,794 –1,748 Additions to capitalized development –925 –1,444 –4,483 Expenses charged to the income statement 216,688 225,332 219,603 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” 2) The inventory changes are based on changes of net inventory values. |
Summary of Restructuring Charges by Function | Restructuring charges by function 2018 2017 2016 Cost of sales 5,938 5,242 3,475 R&D expenses 1,293 2,307 2,739 Selling and administrative expenses 784 952 1,353 Total restructuring charges 8,015 8,501 7,567 |
B4 Other operating income and_2
B4 Other operating income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Other Operating Income and Expenses | Other operating income and expenses 2018 2017 2016 Other operating income Gains on sales of intangible assets and PP&E 30 47 423 Gains on sales of investments and operations 1) 105 324 219 Other operating revenues 362 783 1,345 Total other operating income 497 1,154 1,987 Other operating expenses Losses on sales of intangible assets and PP&E –17 –74 –509 Losses on sales of investments and operations 1) –330 –130 –96 Write-down of goodwill 2) –275 –12,966 — Other operating expenses 3) –43 –115 –979 Total other operating expenses –665 –13,285 –1,584 1) Includes divestments presented in Note E2, “Business combinations.” 2) For more information about the write-down of goodwill, see Note C1, “Intangible assets.” 3) Includes revaluation of cash flow hedges of SEK 0 billion (SEK 0 billion in 2017 and SEK –0.9 billion in 2016) partly offset by result from trading activities. |
B5 Inventories (Tables)
B5 Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Inventories | Inventories 2018 2017 1) Raw materials, components, consumables and manufacturing work in progress 7,484 4,015 Finished products and goods for resale 9,667 9,273 Contract work in progress 12,104 12,259 Inventories, net 29,255 25,547 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
Movements in Obsolescence Allowances | Movements in obsolescence allowances 2018 2017 2016 Opening balance 2,425 2,412 2,555 Additions, net 1,079 1,319 725 Utilization –987 –1,210 –981 Translation differences 94 –91 113 Balances regarding acquired/divested businesses — –5 — Closing balance 2,611 2,425 2,412 |
B6 Customer contract related _2
B6 Customer contract related balances (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Trade Receivables, Customer Finance, Contract Assets and Contract Liabilities | Trade receivables, customer finance, contract assets and contract liabilities 2018 2017 1) Customer finance credits 2,884 3,931 Trade receivables 51,172 48,105 Contract assets 13,178 13,120 Contract liabilities 29,348 29,076 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
Summary of Significant Movements in Contract Assets and Liabilities | Revenue recognized in the period 2018 2017 Revenue recognized in the year relating to the opening contract liability balance 22,447 17,509 Revenue recognized relating to performance obligations satisfied in prior financial periods –1,148 –1,035 2018 Aggregate amount of transaction price allocated to unsatisfied or partially satisfied performance obligations 104,519 |
B7 Other current receivables (T
B7 Other current receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Other Current Receivables | Other current receivables 2018 2017 Prepaid expenses 2,101 2,546 Advance payments to suppliers 269 338 Derivatives with a positive value 1) 403 1,207 Taxes 16,862 15,291 Other 1,209 2,919 Total 20,844 22,301 1) See also Note F1, “Financial risk management.” |
B8 Trade payables (Tables)
B8 Trade payables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Trade Payables | Trade payables 2018 2017 Trade payables to associated companies and joint ventures 293 286 Trade payables, excluding associated companies and joint ventures 29,590 26,034 Total 29,883 26,320 |
B9 Other current liabilities (T
B9 Other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Other Current Liabilities | Other current liabilities 2018 2017 1) Accrued interest 656 383 Accrued expenses 32,258 29,196 Of which employee-related 12,774 8,935 Of which supplier-related 10,920 10,491 Of which other 2) 8,564 9,770 Derivatives with a negative value 3) 887 926 Other 4) 5,090 4,800 Total 38,891 35,305 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” 2) Major balance relates to accrued expenses for customer projects. 3) See Note F1, “Financial risk management.” 4) Includes items such as VAT and withholding tax payables and other payroll deductions, and liabilities for goods received where the related invoice has not yet been received. |
C1 Intangible assets (Tables)
C1 Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Intangible Assets | Intangible assets 2018 Capitalized Goodwill IPR 1) Cost Opening balance 22,731 40,799 55,932 Acquisitions/capitalization 925 — 28 Balances regarding acquired/divested businesses 2) — 911 451 Sales/disposals –1,468 — –41 Reclassification 3) 1,505 — — Translation difference 26 1,584 1,731 Closing balance 23,719 43,294 58,101 Accumulated amortizations Opening balance –13,677 — –44,434 Amortizations –2,559 — –1,387 Sales/disposals 1,468 — 41 Translation difference — — –1,497 Closing balance –14,768 — –47,277 Accumulated impairment losses Opening balance –4,460 –12,984 –7,350 Impairment losses –254 –275 — Closing balance –4,714 –13,259 –7,350 Net carrying value 4,237 30,035 3,474 1) Intellectual property rights. 2) For more information on acquired/divested businesses, see Note E2, “Business combinations.” 3) Reclassification from inventory. Intangible assets 2017 Capitalized Goodwill IPR 1) Cost Opening balance 22,306 43,405 57,340 Acquisitions/capitalization 1,444 — 336 Balances regarding acquired/divested businesses 2) — –122 101 Sales/disposals –1,019 — –152 Translation difference — –2,484 –1,693 Closing balance 22,731 40,799 55,932 Accumulated amortizations Opening balance –12,015 — –44,262 Amortizations –2,681 — –1,667 Sales/disposals 1,019 — 152 Translation difference — — 1,343 Closing balance –13,677 — –44,434 Accumulated impairment losses Opening balance –2,215 –18 –5,331 Impairment losses –2,245 –12,966 –2,019 Closing balance –4,460 –12,984 –7,350 Net carrying value 4,593 27,815 4,148 1) Intellectual property rights. 2) For more information on acquired/divested businesses, see Note E2, “Business combinations.” |
C2 Property, plant and equipm_2
C2 Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment 2018 Real Machinery and other Other equipment, Construction in progress Total Cost Opening balance 6,510 3,819 30,614 1,608 42,551 Additions 11 124 1,976 1,864 3,975 Balances regarding acquired/divested businesses — –11 –116 — –127 Sales/disposals –484 –649 –2,430 –332 –3,895 Reclassifications 566 8 1,707 –2,281 — Translation difference 241 81 718 12 1,052 Closing balance 6,844 3,372 32,469 871 43,556 Accumulated depreciation Opening balance –3,529 –3,288 –21,552 — –28,369 Depreciations –425 –211 –2,639 — –3,275 Balances regarding divested businesses — 5 71 — 76 Sales/disposals 393 615 1,911 — 2,919 Reclassification — 1 –1 — — Translation difference –142 –70 –559 — –771 Closing balance –3,703 –2,948 –22,769 — –29,420 Accumulated impairment losses Opening balance –241 –64 –1,020 — –1,325 Impairment losses –119 –22 –427 — –568 Sales/disposals 78 20 557 — 655 Translation difference –10 — –39 — –49 Closing balance –292 –66 –929 — –1,287 Net carrying value 2,849 358 8,771 871 12,849 Property, plant and equipment 2017 Real Machinery and other Other equipment, Construction in progress Total Cost Opening balance 7,132 4,286 33,134 2,648 47,200 Additions 150 183 1,317 2,227 3,877 Balances regarding acquired/divested businesses –9 –134 –12 — –155 Sales/disposals –1,323 –457 –5,387 –185 –7,352 Reclassifications 757 56 2,226 –3,039 — Translation difference –197 –115 –664 –43 –1,019 Closing balance 6,510 3,819 30,614 1,608 42,551 Accumulated depreciation Opening balance 1) –3,528 –3,629 –22,951 — –30,108 Depreciations –458 –279 –3,366 — –4,103 Balances regarding divested businesses 9 85 11 — 105 Sales/disposals 349 442 4,263 — 5,054 Translation difference 99 93 491 — 683 Closing balance –3,529 –3,288 –21,552 — –28,369 Accumulated impairment losses Opening balance 1) –144 –25 –189 — –358 Impairment losses –297 –42 –1,872 — –2,211 Sales/disposals 200 4 1,050 — 1,254 Translation difference — –1 –9 — –10 Closing balance –241 –64 –1,020 — –1,325 Net carrying value 2,740 467 8,042 1,608 12,857 1) The opening balances have been reclassified compared to the Annual Report 2017 between accumulated depreciation and accumulated impairment losses with an amount of SEK 233 million. The total accumulated depreciation changed from SEK –30,341 to –30,108 million and the total accumulated impairment losses changed from SEK –125 to –358 million. The amount is divided between the different categories with SEK 101 million on Real estate, SEK 22 million on Machinery and other technical assets, and SEK 110 million on Other equipment, tools and installations. Based on IAS 1 this reclassification is considered not to be material and have had no impact on the financial statements. |
C3 Leasing (Tables)
C3 Leasing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Future Minimum Payment Receivables | Future minimum lease payment obligations Operating 2019 3,088 2020 2,603 2021 2,126 2022 1,311 2023 1,033 2024 and later 3,208 Total 13,369 |
Summary of Future Minimum Lease Payment Obligations | Future minimum payment receivables Operating 2019 105 2020 100 2021 101 2022 98 2023 97 2024 and later 104 Total 605 |
D1 Provisions (Tables)
D1 Provisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Provisions | Provisions Restructuring Customer Suppliers Warranty Other Total 2018 Opening balance 4,043 2,642 1,613 158 1,423 9,879 Additions 3,539 8,532 214 401 1,024 13,710 Reversal of excess amounts –408 –236 –15 –20 –46 –725 Negative effect on Income statement 12,985 Utilization/Cash out –4.148 –1,979 –264 –257 –287 –6,935 Reclassifications 120 — 10 72 –112 90 Translation difference 163 –43 1 9 –141 –11 Closing balance 3,309 8,916 1,559 363 1,861 16,008 2017 1) Opening balance 4,163 74 134 211 1,738 6,320 Additions 5,448 4,105 1,885 242 799 12,479 Reversal of excess amounts –207 — –90 –2 –63 –362 Negative effect on Income statement 12,117 Utilization/Cash out –5,327 –1,532 –262 –267 –833 –8,221 Reclassifications 1 –10 –50 –25 –59 –143 Translation difference –35 5 –4 –1 –159 –194 Closing balance 4,043 2,642 1,613 158 1,423 9,879 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
D2 Contingent liabilities (Tabl
D2 Contingent liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Contingent Liabilities | Contingent liabilities 2018 2017 Contingent liabilities 1,638 1,561 Total 1,638 1,561 |
D3 Assets pledged as collater_2
D3 Assets pledged as collateral (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Assets Pledged as Collateral | Assets pledged as collateral 2018 2017 Chattel mortgages 1) 5,328 4,740 Bank deposits 353 475 Total 5,681 5,215 1) See also Note G1, “Post-Employment benefits.” |
D4 Contractual obligations (Tab
D4 Contractual obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Contractual Obligations | Contractual obligations 2018 Payment due by period SEK billion <1 1–3 3–5 >5 Total Current and non-current 1) 2) 2.3 14.0 11.2 6.6 34.1 Operating leases 3) 3.1 4.8 2.3 3.2 13.4 Other non-current 0.4 2.5 0.1 1.3 4.3 Purchase obligations 4) 5.7 1.9 0.1 — 7.7 Trade payables 29.9 — — — 29.9 Commitments for customer finance 5) 30.3 — — — 30.3 Total 71.7 23.2 13.7 11.1 119.7 1) Including interest payments, see also Note F2, “Financial income and expenses.” 2) See also Note F4, “Interest-bearing liabilities.” 3) See also Note C3, “Leasing.” 4) The amounts of purchase obligations are gross, before deduction of any related provisions. 5) See also Note F1, “Financial risk management.” |
E1 Equity (Tables)
E1 Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Capital Stock | Capital stock at December 31, 2018, consisted of the following: Capital stock Parent Company Number of Capital stock Class A shares 261,755,983 1,309 Class B shares 3,072,395,752 15,363 Total 3,334,151,735 16,672 |
Summary of Reconciliation of Number of Shares | Reconciliation of number of shares Number of Capital stock Number of shares Jan 1, 2018 3,334,151,735 16,672 Number of shares Dec 31, 2018 3,334,151,735 16,672 |
E2 Business combinations (Table
E2 Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Net Assets Acquired and Total Consideration Transferred Business Combinations | Acquisitions Acquisitions 2016–2018 2018 2017 2016 Total consideration, including cash 1,314 62 920 Net assets acquired Cash and cash equivalents 94 — 139 Property, plant and equipment 4 12 19 Intangible assets 481 101 817 Investments in associates 64 — — Other assets 254 1 290 Other liabilities –494 25 –290 Total identifiable net assets 403 139 975 Goodwill 1) 911 –77 –55 Total 1,314 62 920 Acquisition-related costs 2) 24 49 4 1) Of which SEK 911 (0) million was acquired goodwill and SEK 0 (–77) million refers to a reclassification when the preliminary purchase price allocations were finalized between the years. 2) Acquisition-related costs are included in Selling and administrative expenses in the consolidated income statement. |
Summary of Divestments Transactions | Divestments Divestments 2016–2018 2018 2017 2016 Proceeds 226 459 25 Net assets disposed of Property, plant and equipment 55 62 36 Investments in joint ventures and associated companies 114 — 15 Intangible assets 30 — — Goodwill — 45 — Other assets 809 219 5 Provisions, incl. post-employement benefits –43 — — Other liabilities –571 –180 –114 Total net assets 394 146 –58 Net gains/losses from divestments –168 313 83 Cash flow effect 226 459 25 |
Summary of Business Combinations Transactions | Acquisitions 2016–2018 Company Description Transaction date CENX A US based service assurance technology company. Sep 2018 VidScale A US company providing cloud-based Content Delivery Network (CDN) solutions. Mar 2018 Placecast A US company that leverages deterministic carrier data to deliver better audience, verification, and insight solutions. Feb 2018 Nodeprime A US based software development company with an infrastructure management platform. Apr 2016 Ericpol A software development company in Poland within telecommunications. Apr 2016 FYI Television A US based premier entertainment metadata and rich media content supplier. Jan 2016 |
Summary of Business Divestments Transactions | Divestments 2016–2018 Company Description Transaction date Ericsson Local Services AB (LSS) A divestment of the Local Services company in Sweden. Aug 2018 Excellence Field Factory A divestment of the Spanish fiber service operations. Jun 2018 Power Modules A divestment of the power modules business. Sep 2017 Birla Ericsson Optical Ltd A divestment of the shares in the associated company. Jul 2016 |
E3 Associated companies (Tables
E3 Associated companies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments accounted for using equity method [abstract] | |
Equity in Associated Companies | Equity in associated companies 2018 2017 Opening balance 624 775 Investments 64 — Share in earnings 58 24 Distribution of capital stock — –95 Taxes –5 –3 Dividends –30 –77 Divested business –114 — Translation difference 14 — Closing balance 611 624 |
F1 Financial risk management (T
F1 Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Capital Objectives-Related Information | Capital objectives-related information, SEK billion 2018 2017 1) Capital 88 98 Equity ratio 32.7 % 37.5 % Free cash flow 3.0 5.1 Positive net cash 35.9 34.7 Post-employment benefits 28.7 25.0 Credit rating Moody’s Ba2, stable Ba2, negative Standard & Poor’s BB+, stable BB+, stable 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
Summary of Net Exposure for Largest Currencies Impact on Sales | The table below presents the net exposure for the largest currencies impact on sales and also net transaction exposure of these currencies on profitability. Currency exposure, SEK billion Exposure Sales Sales Sales net Incurred Net currency exposure exposure exposure exposure 1) exposure USD 59.9 34.0 93.9 –3.8 30.2 EUR 23.8 12.2 36.0 –4.2 8.0 CNY 12.4 0.0 12.4 –7.7 –7.7 INR 8.9 –0.1 8.8 –1.0 –1.1 AUD 7.3 –0.4 6.9 3.7 3.3 JPY 6.8 0.0 6.8 4.4 4.4 BRL 6.8 0.0 6.8 0.8 0.8 SAR 5.3 0.6 5.9 2.1 2.7 GBP 6.1 –1.0 5.1 1.3 0.3 1) Transactions in foreign currency – internal sales, internal purchases, external purchases. |
Summary of Sensitivity to Interest Rate Increase of One Basis Point | Sensitivity to interest rate increase of 1 basis point, SEK million 1) < 3M 3–12M 1–3Y 3–5Y >5Y Total Interest-bearing assets 0 –3 0 –3 –1 –7 Interest-bearing liabilities 2) 0 2 0 2 3 7 Derivatives 0 2 –1 –2 2 1 Total 0 1 –1 –3 4 1 1) Excluding changes in credit risk reported in OCI. 2) Borrowings are included as they are designated FVTPL in 2018. In prior years, borrowings were included due to fair value hedge accounting. |
Disclosure of Detailed Information about Currency Derivatives | Outstanding derivatives Outstanding derivatives 1) 2018 2017 Fair value Asset Liability Asset Liability Currency derivatives Maturity within 3 months 226 207 130 542 Maturity between 3 and 12 months 38 46 215 147 Maturity between 1 and 3 years — 145 25 — Maturity between 3 and 5 years 3 194 754 — Total 267 592 1,125 689 Interest rate derivatives Maturity within 3 months 16 32 10 35 Maturity between 3 and 12 months 8 15 1 — Maturity between 1 and 3 years 10 3 34 105 Maturity between 3 and 5 years 44 222 83 54 Maturity of more than 5 years 58 23 39 43 Total 136 2) 295 168 2) 237 Of which designated in fair value hedge relations — — 44 — 1) Prior to 2018, some of the derivatives hedging non-current non-current 2) Of which SEK 0 (86) million is reported as non-current |
Summary of Movements in Allowances for Impairment of Trade Receivables and Contract Assets | Movements in allowances for impairment of trade receivables and contract assets 2018 Opening balance 3,335 Adjustment due to IFRS 9 1) 1,240 Opening balance, adjusted 4,575 Losses recognized in profit or loss 420 Write-offs –890 Translation difference 18 Closing balance 2) 4,123 1) For more information see Note A3, “Changes in accounting policies.” 2) Of which SEK 15 million relates to contract assets. |
Summary of Aging Analysis of Gross Values by Risk Category | Aging analysis of gross values by risk category at December 31, 2018 Days past due 1–90 91–180 181–360 >360 Total Country risk: Low 1,387 350 139 498 2,374 Country risk: Medium 1,596 540 309 1,724 4,169 Country risk: High 927 614 699 1,630 3,870 Total past due 3,910 1,504 1,147 3,852 10,413 |
Summary of Movements in Allowances for Impairment of Trade Receivables and Contract | Movements in allowances for impairment of trade receivables and contract assets 2017 Opening balance 1,403 Additions 3,544 Utilized –1,485 Reversal of excess amounts –48 Reclassification –66 Translation difference –13 Closing balance 3,335 |
Summary of Aging Analysis Impairment of Trade Receivables and Contract Assets | Aging analysis as per December 31, 2017 1) Trade receivables Allowances Of which neither impaired nor past due 54,474 — Of which impaired, not past due 15 –15 Of which past due in the following time intervals less than 90 days 2,924 — 90 days or more 3,769 — Of which past due and impaired in the following time intervals less than 90 days 220 –220 90 days or more 3,100 –3,100 Total 64,502 –3,335 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
Summary of Outstanding Customer Finance Credit Exposure | The table below summarizes the Company’s outstanding customer finance as of December 31, 2018 and 2017. Outstanding customer finance credit risk exposure 1) 2018 2017 Fair value of customer finance credits 2) 2,883 3,931 Financial guarantees for third-parties 42 77 Accrued interest 21 14 Maximum exposure to credit risk 2,946 4,022 Less third-party risk coverage –331 –505 The Company’s risk exposure, less third-party risk coverage 2,615 3,517 1) This table has been adjusted to show the maximum exposure to credit risk. In prior years, impairments were not considered. 2) At December 31, 2017, the fair value of the customer finance credits was the same as the carrying value. |
Disclosure of Customer Finance Fair Value Reconciliation | Customer finance fair value reconciliation 2018 Opening balance 3,931 Additions 6,100 Disposals/repayments –6,200 Revaluation –1,073 Translation difference 126 Closing balance 2,884 Of which non-current 1,180 |
Summary of Movements in Allowances for Impairment of Customer Finance | Movements in allowances for impairment of customer finance 2017 Opening balance 250 Additions 85 Utilized –3 Reversal of excess amounts –27 Translation difference –13 Closing balance 292 |
Summary of Aging Analysis of Customer Finance | Aging analysis as per December 31, 2017 Customer Allowances Of which neither impaired nor past due 1,841 — Of which impaired, not past due 2,029 –104 Of which past due in the following time intervals less than 90 days 4 — 90 days or more 99 — Of which past due and impaired in the following time intervals less than 90 days 29 –20 90 days or more 221 –168 Total 4,223 –292 |
Summary of Cash, Cash Equivalents and Interest-Bearing Securities | Cash, cash equivalents and interest-bearing securities Remaining time to maturity SEK billion < 3 3–12 1–5 >5 Total Banks 32.2 0.4 0.0 0.0 32.6 Type of issuer/counterpart Governments 7.6 2.3 7.7 0.9 18.5 Corporates 2.2 0.0 0.0 0.0 2.2 Mortgage institutes 0.0 0.2 15.2 0.3 15.7 2018 42.0 2.9 22.9 1.2 69.0 2017 36.4 1.2 28.4 1.7 67.7 |
Summary of Funding Programs | Funding programs 1) Amount Utilized Unutilized Euro Medium-Term Note program (USD million) 5,000 1,456 3,544 SEC Registered program (USD million) 2) 1,000 — 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 European Investment Bank (EIB) credit facility (EUR million) 250 — 250 |
Summary of Financial Instruments, Book Value | Financial instruments, book value 2018 SEK billion Customer Trade Interest- Cash Borrowings Trade Other Other Other 2018 Note B6 B6 F3 H3 F4 B8 F3 B7 B9 Assets at fair value through profit or loss 2.9 30.2 15.2 2.5 0.4 51.2 Assets at amortized cost 0.4 4.2 4.6 Assets at fair value through OCI 51.2 51.2 Financial liabilities at fair value through profit or loss 1) –30.7 –0.9 –31.6 Financial liabilities at amortized cost –2.4 –29.9 –32.3 Total 2.9 51.2 30.6 19.4 –33.1 –29.9 2.5 0.4 –0.9 43.1 1) Financial instruments, book value 2017 1) SEK billion Customer Trade Interest- Cash Borrowings Trade Other Other Other 2017 Note B6 B6 F3 H3 F4 B8 F3 B7 B9 Assets at fair value through profit or loss 6.1 14.3 0.9 1.2 –0.9 21.6 Loans and receivables 3.9 48.1 0.3 3.2 5.0 60.5 Available-for-sale 25.4 1.3 26.7 Financial liabilities at amortized cost –33.0 –26.3 –59.3 Total 3.9 48.1 31.8 17.5 –33.0 –26.3 7.2 1.2 –0.9 49.5 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
F2 Financial income and expen_2
F2 Financial income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Financial Income and Expenses | Financial income and expenses 2018 2017 1) 2016 1) Financial Financial Financial Financial Financial Financial Contractual interest on financial assets –461 — –86 — 12 — Of which on financial assets at fair value through profit or loss –927 — –92 — –316 — Contractual interest on financial liabilities — –997 — –1,027 — –1,355 Of which on financial liabilities designated fair value through profit or loss — –530 — — — — Net gains/losses on: Instruments at fair value through profit or loss 2) 225 –817 –231 543 –68 –729 Of which included in fair value hedge relationships — — — 2 — 71 Of which designated fair value through profit or loss — –2,087 — — — — Assets at fair value through OCI –80 — — — — — Available for sale — — 40 — — — Loans and receivables — — –102 — –79 — Instruments at amortized cost — — — 72 — 218 Other financial income and expenses 1 –575 7 –431 — –292 Total –316 –2,389 –372 –843 –135 –2,158 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” 2) Excluding net loss from derivatives hedging operating assets and liabilities, SEK 128 million (net loss of SEK 451 million in 2017 and net loss of SEK 234 million in 2016), reported as Cost of sales. |
F3 Financial assets, non-curr_2
F3 Financial assets, non-current (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Financial Assets, Non-current | Financial assets, non-current, Other investments in Interest-bearing securities, non-current Derivatives, non-current Other financial assets, non-current Opening balance 1,279 25,105 86 5,811 Additions 398 50,190 — 632 Disposals/repayments/deductions –92 –51,353 –86 –210 Change in value in funded pension plans 1) — — — 492 Revaluation –72 40 — –3 Reclassification — — — –213 Translation difference 2 — — 50 Closing balance 1,515 23,982 — 6,559 Financial assets, non-current, Other investments in Interest-bearing securities, non-current Derivatives, non-current Other financial assets, non-current Cost Opening balance 2,516 7,586 — 4,648 Additions 146 54,687 86 503 Disposals/repayments/deductions –43 –37,241 — –375 Change in value in funded pension plans 1) — — — 1,300 Revaluation 99 73 — 27 Translation difference –50 — — –169 Closing balance 2,668 25,105 86 5,934 Accumulated impairment losses/allowances Opening balance –1,337 — — –206 Impairment losses/allowances –126 — — –1 Disposals/repayments/deductions 25 — — 77 Translation difference 49 — — 7 Closing balance –1,389 — — –123 Net carrying value 1,279 25,105 86 5,811 1) 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, 2018 | |
Text block [abstract] | |
Summary of Interest-Bearing Liabilities | As of December 31, 2018, the Company’s outstanding interest-bearing liabilities were SEK 33.1 (33.0) billion. Interest-bearing liabilities 2018 2017 Borrowings, current Current part of non-current 72 89 Other borrowings, current 2,183 2,456 Total borrowings, current 2,255 2,545 Borrowings, non-current Notes and bond loans 21,875 20,560 Other borrowings, non-current 8,995 9,940 Total borrowings, non-current 30,870 30,500 Total interest-bearing liabilities 33,125 33,045 |
Reconciliation of Liabilities Arising from Financing Activities | Reconciliation of liabilities arising from financing activities 2018 2017 Opening balance 33,045 26,686 Adjustment due to IFRS 9 1) 31 — Adjusted opening balance 33,076 26,686 Cash flows Proceeds from issuance of borrowings 911 13,416 Repayment of borrowings –1,748 –4,830 Non-cash Effect of foreign exchange movement 2,813 –2,155 Revaluation due to changes in credit risk –207 — Other changes in fair value –28 –72 Reclassification 2) –1,692 — Closing balance 33,125 33,045 1) For more information see Note A3, “Changes in accounting policies.” 2) The borrowing was reclassified to other non-current |
Summary of Notes, Bonds, Bilateral Loans and Committed Credit | Notes, bonds and bilateral loans Issued-maturing Nominal Coupon Currency Maturity date Book value Changes in Cumulative Book value Unrealized hedge Notes and bond loans 2010–2020 1) 170 USD Dec 23, 2020 1,545 –37 24 1,394 2012–2022 1,000 4.125 % USD May 15, 2022 8,776 –68 19 8,180 2) 9 2017–2021 500 0.875 % EUR Mar 1, 2021 5,141 47 13 4,897 2) 7 2017–2024 500 1.875 % EUR Mar 1, 2024 5,087 –35 –43 4,862 2) –7 2017–2025 1) 150 USD Dec 22, 2025 1,326 –13 –13 1,227 Total notes and bond loans 21,875 –106 0 20,560 9 Bilateral loans 2012–2021 3) 98 USD Sep 30, 2021 860 –32 –1 805 2013–2020 4) 684 USD Nov 6, 2020 6,030 –66 –87 5,609 2017–2023 3) 220 USD Jun 15, 2023 1,959 –3 –3 1,797 Total bilateral loans 8,849 –101 –91 8,211 1) Private Placement, Swedish Export Credit Corporation (SEK). 2) Interest rate swaps were designated as fair value hedges. 3) Nordic Investment Bank (NIB), R&D project financing. 4) European Investment Bank (EIB), R&D project financing. |
G1 Post-employment benefits (Ta
G1 Post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Amount Recognized in the Consolidated Balance Sheet | Amount recognized in the Consolidated balance sheet Sweden US UK Other Total 2018 Defined benefit obligation (DBO) 44,845 21,059 12,374 12,042 90,320 Fair value of plan assets 21,912 19,899 14,385 8,126 64,322 Deficit/surplus (+/–) 22,933 1,160 –2,011 3,916 25,998 Plans with net surplus, excluding asset ceiling 1) — — 2,246 476 2,722 Provision for post-employment benefits 2) 22,933 1,160 235 4,392 28,720 2017 Defined benefit obligation (DBO) 41,166 21,005 13,246 12,228 87,645 Fair value of plan assets 21,938 20,402 14,599 8,000 64,939 Deficit/surplus (+/–) 19,228 603 –1,353 4,228 22,706 Plans with net surplus, excluding asset ceiling 1) — 83 1,685 535 2,303 Provision for post-employment benefits 2) 19,228 686 332 4,763 25,009 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 2018 Pension cost for defined contribution plans 937 473 145 1,170 2,725 Pension cost for defined benefit plans 1,350 175 75 557 2,157 Total 2,287 648 220 1,727 4,882 Total pension cost expressed as a percentage of wages and salaries 9.2 % 2017 Pension cost for defined contribution plans 1,096 473 173 1,228 2,970 Pension cost for defined benefit plans 1,824 168 38 592 2,622 Total 2,920 641 211 1,820 5,592 Total pension cost expressed as a percentage of wages and salaries 9.5 % 2016 Pension cost for defined contribution plans 1,061 687 185 1,287 3,220 Pension cost for defined benefit plans 1,314 167 38 595 2,114 Total 2,375 854 223 1,882 5,334 Total pension cost expressed as a percentage of wages and salaries 8.9 % |
Summary of Change in the Net Defined Benefit Obligation | Change in the net defined benefit obligation Present value 2) Fair value of Total Present value 2) Fair value of Total Opening balance 87,645 –64,939 22,706 87,175 –64,485 22,690 Included in the income statement Current service cost 1,602 — 1,602 1,793 — 1,793 Past service cost and gains and losses on settlements 100 — 100 296 — 296 Interest cost/income (+/–) 2,196 –1,912 284 2,198 –1,892 306 Taxes and administrative expenses 78 54 132 143 45 188 Other –6 2 –4 –13 2 –11 3,970 –1,856 2,114 3) 4,417 –1,845 2,572 3) Remeasurements Return on plan assets excluding amounts in interest expense/income — 3,016 3,016 — –2,438 –2,438 Actuarial gains/losses (–/+) arising from changes in demographic assumptions –124 — –124 –396 — –396 Actuarial gains/losses (–/+) arising from changes in financial assumptions 261 — 261 2,110 — 2,110 Experience-based gains/losses (–/+) –613 — –613 –219 — –219 –476 3,016 2,540 1,495 –2,438 –943 Other changes Translation difference 2,659 –2,383 276 –2,275 2,262 –12 Contributions and payments from: Employers 1) –984 –513 –1,497 –880 –583 –1,463 Plan participants 28 –21 7 27 –23 4 Payments from plans: Benefit payments –2,357 2,357 — –2,173 2,173 — Settlements –145 17 –128 –141 — –141 Business combinations and divestments –20 — –20 — — — Closing balance 90,320 –64,322 25,998 87,645 –64,939 22,706 1) The expected contribution to the plans is SEK 2.1 billion during 2019. 2) The weighted average duration of DBO is 20.3 (20.1) years. 3) Excluding the impact of the asset ceiling of SEK 43 million in 2018 and SEK 50 million in 2017. |
Summary of Present Value of the Defined Benefit Obligation | Present value of the defined benefit obligation Sweden US UK Other Total 2018 DBO, closing balance 44,845 21,059 12,374 12,042 90,320 Of which partially or fully funded 44,845 20,372 12,374 9,292 86,883 Of which unfunded — 687 — 2,750 3,437 2017 DBO, closing balance 41,166 21,005 13,246 12,228 87,645 Of which partially or fully funded 40,665 20,319 13,246 9,465 83,695 Of which unfunded 501 686 — 2,763 3,950 |
Summary of Asset Allocation by Asset Type and Geography | Asset allocation by asset type and geography Sweden US UK Other Total Of which 2018 Cash and cash equivalents 935 585 1,416 88 3,024 0 % Equity securities 4,434 729 2,293 2,439 9,895 18 % Debt securities 10,642 17,329 9,410 3,485 40,866 23 % Real estate 4,228 — 154 229 4,611 100 % Investment funds 1,673 1,151 415 230 3,469 70 % Assets held by insurance company — — — 1,289 1,289 100 % Other — 105 697 366 1,168 33 % Total 21,912 19,899 14,385 8,126 64,322 Of which real estate occupied by the Company — — — — — Of which securities issued by the Company — — — — — 2017 Cash and cash equivalents 3,124 382 834 88 4,428 0 % Equity securities 4,079 795 3,116 2,432 10,422 16 % Debt securities 8,663 17,650 9,331 3,494 39,138 68 % Real estate 4,269 — 244 212 4,725 100 % Investment funds 1,803 1,478 160 208 3,649 66 % Assets held by insurance company — — — 1,200 1,200 100 % Other — 97 914 366 1,377 41 % Total 21,938 20,402 14,599 8,000 64,939 Of which real estate occupied by the Company — — — — — Of which securities issued by the Company — — — — — |
Summary of Financial and Demographic Actuarial Assumptions | Financial and demographic actuarial assumptions 1) 2018 2017 Financial assumptions Discount rate, Sweden 1.5 % 1.6 % Discount rate, US 4.3 % 3.7 % Discount rate, UK 3.0 % 2.6 % Discount rate, weighted average of total 2.6 % 2.5 % Demographic assumptions Life expectancy after age 65 in years, weighted average 23 23 1) Weighted average for the Group for disclosure purposes only. Country-specific assumptions were used for each actuarial calculation. |
Summary of Total Remeasurements in Other Comprehensive Income (Loss) Related to Post-Employment Benefits | Total remeasurements in Other comprehensive income (loss) related to post-employment benefits 2018 2017 Actuarial gains and losses (+/–) –1,887 1,210 The effect of asset ceiling 87 27 Swedish special payroll taxes 1) –653 –267 Total –2,453 970 1) Swedish payroll taxes are included in recognized gain/loss during the year in OCI. |
Summary of Sensitivity Analysis of Significant Actuarial Assumptions | Sensitivity analysis of significant actuarial assumptions SEK billion 2018 2017 Impact on the DBO of an increase in the discount rate Discount rate, Sweden +0.5% –5.0 –4.5 Discount rate, US +0.5% –1.0 –1.1 Discount rate, UK +0.5% –1.3 –1.5 Discount rate, weighted average of total +0.5% –8.3 –8.1 Impact on the DBO of an decrease in the discount rate Discount rate, Sweden –0.5% +5.4 +5.2 Discount rate, US –0.5% +1.1 +1.2 Discount rate, UK –0.5% +1.5 +1.8 Discount rate, weighted average of total –0.5% +9.2 +9.3 |
G2 Information regarding memb_2
G2 Information regarding members of the Board of Directors and Group management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [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 grant Number of previously Net change 1) Committee Total fees 2) Total A B C (A+B+C) Board member Ronnie Leten 4,075,000 30,969/50 % 2,037,330 — 375,654 375,000 2,412,500 4,825,484 Helena Stjernholm 990,000 7,523/50 % 494,909 19,754 494,201 175,000 670,000 1,659,110 Jacob Wallenberg 990,000 11,285/75 % 742,396 28,390 748,678 175,000 422,500 1,913,574 Jon Fredrik Baksaas 990,000 11,285/75 % 742,396 12,992 307,523 200,000 447,500 1,497,419 Jan Carlson 990,000 11,285/75 % 742,396 12,992 307,523 425,000 672,500 1,722,419 Nora Denzel 990,000 3,761/25 % 247,422 9,819 276,017 425,000 1,167,500 1,690,939 Börje Ekholm — — — 24,789 737,547 — — 737,547 Eric A. Elzvik 990,000 3,761/25 % 247,422 4,330 102,491 350,000 1,092,500 1,442,413 Kurt Jofs 990,000 11,285/75 % 742,396 — 136,887 350,000 597,500 1,476,783 Kristin S. Rinne 990,000 3,761/25 % 247,422 16,056 352,161 200,000 447,500 1,047,083 Employee Representatives Torbjörn Nyman 31,500 — — — — — 31,500 31,500 Kjell-Åke Soting 40,500 — — — — — 40,500 40,500 Roger Svensson 48,000 — — — — — 48,000 48,000 Karin Åberg 3) 13,500 — — — — — 13,500 13,500 Per Holmberg (deputy) 4) 1,500 — — — — — 1,500 1,500 Tomas Lundh (deputy) 5) 7,500 — — — — — 7,500 7,500 Anders Ripa (deputy) 21,000 — — — — — 21,000 21,000 Loredana Roslund (deputy) 21,000 — — — — — 21,000 21,000 Total 12,179,500 94,915 6,244,089 129,122 3,838,682 2,675,000 8,114,500 18,197,271 Total 12,179,500 94,915 6,244,089 153,178 7) 4,393,522 7) 2,675,000 8,114,500 18,752,111 7) 1) The difference in value as of the time for payment, compared to December 31, 2017, for synthetic shares allocated in 2013 (for which payment was made in 2018). The difference in value as of December 31, 2018 compared to December 31, 2017, for synthetic shares allocated in 2014, 2015, 2016 and 2017. Calculated on a share price of SEK 77.92. The difference in value as of December 31, 2018, compared to grant date for synthetic shares allocated in 2018. The value of synthetic shares allocated in 2014, 2015, 2016 and 2017 includes respectively SEK 3.40, SEK 3.70, SEK 1.00 and SEK 1.00 per share in compensation for dividends resolved by the Annual General Meetings 2015, 2016, 2017 and 2018 and the value of the synthetic shares allocated in 2013 includes dividend compensation for dividends resolved in 2014, 2015, 2016 and 2017. 2) Committee fee and cash portion of the Board fee. 3) Left the Board in connection with the Annual General Meeting of shareholders 2018. 4) Joined the Board in November 2018. 5) Left the Board in September 2018. 6) Excluding social security charges in the amount of SEK 4,176,652. 7) Including synthetic shares previously allocated to the former Directors Kristin Skogen Lund and Sukhinder Singh Cassidy. |
Summary of Remuneration Costs for the President and CEO and Other Members of Executive Leadership Team (ELT) | Remuneration costs for the President and CEO and other members of Executive Team (ET) SEK President and President and Other members Other members Total 2018 Total 2017 Salary 1) 15,362,592 14,379,170 87,557,407 108,135,646 102,919,999 122,514,816 Termination benefits — — 8,977,037 54,023,816 8,977,037 54,023,816 Annual variable remuneration provision earned for the year — — 26,041,833 7,331,278 26,041,833 7,331,278 Long-term variable compensation provision 18,351,265 6,119,323 16,549,282 9,840,643 34,900,547 15,959,966 Pension costs 2) 7,890,372 7,528,073 31,776,195 31,592,635 39,666,567 39,120,708 Other benefits 424,513 318,187 11,785,239 17,311,905 12,209,752 17,630,092 Social charges and taxes 13,205,431 8,894,255 51,255,788 52,086,808 64,461,219 60,981,063 Total 55,234,173 37,239,008 233,942,781 280,322,731 289,176,954 317,561,739 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. |
G3 Share-based compensation (Ta
G3 Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Maximum Outstanding Matching Rights | Maximum outstanding matching rights As of December 31, 2018 Number of Class B shares The President Other members Stock Purchase Plans 2015–2016 Executive Performance Stock Plans 2015–2016 — 125,568 |
Summary of Performance Criteria | LTV and EPP Performance Criteria Program Year Target Criteria Weight Performance Period Vesting 2018 2018 Group Operating Income Range (SEK billion): 4.6–9.6 50 % January 1, 2018— December 31, 2018 0%–200% (linear pro-rata) 2018 Absolute TSR Range: 6%–14% 30 % January 1, 2018— December 31, 2020 0%–200% (linear pro-rata) 2018 Relative TSR Ranking of 20 % January 1, 2018— 0%–200% (linear pro-rata) 1) 2017 Absolute TSR Range: 6%–14% 50 % January 1, 2017— 0%–200% (linear pro-rata) 2017 Relative TSR Ranking of Ericsson: 12–5 50 % January 1, 2017— 0%–200% (linear pro-rata) 1) 1) The portion of the performance share awards granted to a participant based on the relative TSR performance condition is subject to fulfillment of the related performance criteria over the performance period compared to Peer Groups consisting of 12 and 18 companies respectively for the program years 2018 and 2017. 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. |
Summary of LTV Share-Settled Plan | LTV share-settled plan for the President and CEO and Executive Team Plan (million shares) Long-term variable LTV 2018 LTV 2017 Total Maximum shares required 3.0 3.0 6.0 Granted shares 0.8 0.7 1.5 Increase due to performace condition 0.4 — 0.4 Outstanding number of shares end of 2018 1.2 0.7 1.9 Compensation cost charged during 2018 (SEK million) 1) 17.9 14.7 32.6 1) Of which the President and CEO: Granted shares 0.4 0.4 0.8 Outstanding number of shares end of 2018 0.6 0.4 1.0 Compensation cost charged during 2018 (SEK million) 8.6 9.8 18.4 1) Total compensation cost charged during 2017: SEK 9.9 million. |
Summary of Compensation Cost | The cost of the cash-settled plans (EPP and KC Plan) is shown in the table below: LTV cash-settled plans (million) Number of synthetic shares Plan LTV 2018 LTV 2017 Total Executive Performance Plan 1.0 1.9 2.9 Key Contributor Plan 9.4 10.5 19.9 Total 10.4 12.4 22.8 Compensation cost under LTV cash-settled plans (SEK million) Compensation cost year 2018 Plan LTV 2018 LTV 2017 Total Executive Performance Plan 1) 19.8 110.7 130.5 Key Contributor Plan 2) 155.9 322.9 478.8 3) Total 175.7 433.6 609.3 1) Fair value for EPP SEK 98.97 for LTV 2018 and 136.16 (65.68) for LTV 2017. 2) Fair value for KC Plan SEK 79.98 for LTV 2018 and 81.06 (56.55) for LTV 2017. 3) Total compensation cost charged during 2017: SEK 170 million. |
Summary of Stock Purchase Plans | The table below shows the contribution periods and participation details for ongoing plans as of December 31, 2018. Stock Purchase Plans Plan Contribution Number of Take-up rate Stock Purchase plan 2015 August 2015– July 2016 33,800 31 % Stock Purchase plan 2016 August 2016 – July 2017 31,500 29 % |
Summary of Executive Performance Stock Plan Targets | Executive Performance Stock Plan targets Base year value Year 1 Year 2 Year 3 2016 Growth (Net sales growth) 246.9 Compound annual growth rate of 2%–6% Margin (Operating income growth) 1) 24.8 Compound annual growth rate of 5%–15% Cash flow (Cash conversion) — ³ ³ ³ 1) Excluding extraordinary restructuring charges. |
Summary of Shares for All Plans | Shares for LTV 2014–2016 Stock Purchase Plan, Key Contributor Retention Plan Plan (million shares) 2016 2015 2014 Total Originally designated A 21.6 23.5 22.8 67.9 Outstanding beginning of 2018 B 21.6 15.4 6.7 43.7 Awarded during 2018 C — — — — Exercised/matched during 2018 D 1.5 3.6 6.5 11.6 Forfeited/expired during 2018 E 1.4 2.3 0.2 3.9 Outstanding end of 2018 1) F=B+C–D–E 18.7 9.5 — 28.2 Compensation costs charged during 2018 (SEK million) 3) G 321.7 2) 260.4 2) 62.8 2) 644.9 1) Shares under the Executive Performance Stock Plans were based on the fact that the 2014 plan came out at 33%, in casu 67% lapsed and that the 2015 plan vested for 22% and lapsed for 78%. For the other ongoing plans, cost is estimated. 2) Share price is calculated as the share price on the investment date, reduced by the net present value of the dividend expectations during the three-year vesting period. Net present value calculations are based on data from external party. For shares under the Executive Performance Stock Plans, the company makes a forecast for the fulfillment of the financial targets for all ongoing plans except for 2014 and 2015 plans as disclosed under 1) when calculating the compensation cost. 3) Total compensation costs charged during 2017: SEK 876 million, 2016: SEK 957 million. |
G4 Employee information (Tables
G4 Employee information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Average Number of Employees | Average number of employees by gender and market area 2018 2017 Women Men Total Women Men Total South East Asia, Oceania and India 4,740 18,957 23,697 5,212 19,773 24,985 North East Asia 4,024 8,375 12,399 4,189 8,657 12,846 North America 2,057 7,520 9,577 2,337 8,595 10,932 Europe and Latin America 1) 2) 11,627 36,290 47,917 13,135 40,647 53,782 Middle East and Africa 700 3,553 4,253 920 3,904 4,824 Total 23,148 74,695 97,843 25,793 81,576 107,369 1) 3,059 9,976 13,035 3,299 11,013 14,312 2) 8,918 27,590 36,508 10,534 31,130 41,664 |
Summary of Number of Employees by Market Area | Number of employees by market area at year-end 2018 2017 South East Asia, Oceania and India 23,959 24,495 North East Asia 12,788 12,456 North America 9,727 10,009 Europe and Latin America 1) 44,621 49,231 Middle East and Africa 4,264 4,544 Total 95,359 100,735 1) 12,502 13,864 2) 35,268 39,508 |
Summary of Number of Employees by Gender and Age | Number of employees by gender and age at year-end Women Men Percent Under 25 years old 1,190 1,961 3 % 25–35 years old 9,294 25,284 36 % 36–45 years old 6,292 24,276 32 % 46–55 years old 4,168 16,366 22 % Over 55 years old 1,426 5,102 7 % Percent of total 23 % 77 % 100 % |
Summary of Employee Movements | Employee movements 2018 2017 Headcount at year-end 95,359 100,735 Employees who have left the Company 16,630 21,791 Employees who have joined the Company 11,254 11,062 Temporary employees 560 676 |
Summary of Wages and Salaries and Social Security Expenses | Wages and salaries and social security expenses (SEK million) 2018 2017 Wages and salaries 53,298 58,966 Social security expenses 13,863 17,536 Of which pension costs 4,882 5,592 |
Summary of Remuneration to Board Members and Presidents in Subsidiaries | Remuneration to Board members and Presidents in subsidiaries (SEK million) 2018 2017 Salary and other remuneration 273 347 Of which annual variable remuneration 28 79 Pension costs 1) 25 32 1) Pension costs are over and above any social secutity charges and taxes. |
Summary of Board Members, Presidents and Group Management by Gender | Board members, Presidents and Group management by gender at year end 2018 2017 Women Men Women Men Parent Company Board members and President 23 % 77 % 43 % 57 % Group Management 27 % 73 % 36 % 64 % Subsidiaries Board members and Presidents 19 % 81 % 19 % 81 % |
H1 Taxes (Tables)
H1 Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Components of Income Taxes Recognized in Income Statement | Income taxes recognized in the income statement 2018 2017 1) 2016 1) Current income taxes for the year –5,513 –4,168 –3,654 Current income taxes related to prior years –392 83 –489 Deferred tax income/expense (+/–) 1,097 7,613 2,266 Share of taxes in joint ventures and associated companies –5 –3 –5 Tax expense/benefit –4,813 3,525 –1,882 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
Reconciliation of Swedish Income Tax Rate with Effective Tax Rate | Reconciliation of Swedish income tax rate with effective tax rate 2018 2017 1) 2016 1) Expected tax expense at Swedish tax rate 22.0% 322 7,910 –637 Effect of foreign tax rates –773 205 –536 Current income taxes related to prior years –392 83 –489 Remeasurement of tax loss carry-forwards 113 –150 143 Remeasurement of deductible temporary differences 33 127 119 Impairment of withholding tax –3,000 –1,273 –456 Tax effect of non-deductible –1,130 –2,871 –901 Tax effect of non-taxable 722 480 935 Tax effect of changes in tax rates –708 –986 –60 Tax expense/benefit –4,813 3,525 –1,882 Effective tax rate –329.1 % 9.8 % 65.0 % 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
Tax Effects of Temporary Differences and Tax Loss Carry-forwards | Tax effects of temporary differences and tax loss carry-forwards Deferred Deferred Net 2018 Intangible assets and property, plant and equipment 1,182 2,125 Current assets 3,614 731 Post-employment benefits 5,459 842 Provisions 4,441 — Other 3,223 188 Loss carry-forwards 8,449 — Deferred tax assets/liabilities 26,368 3,886 22,482 Netting of assets/liabilities –3,216 –3,216 Deferred tax balances, net 23,152 670 22,482 2017 1) Intangible assets and property, plant and equipment 894 2,374 Current assets 3,402 866 Post-employment benefits 4,886 704 Provisions 1,846 15 Other 3,556 275 Loss carry-forwards 10,712 — Deferred tax assets/liabilities 25,296 4,234 21,062 Netting of assets/liabilities –3,333 –3,333 Deferred tax balances, net 21,963 901 21,062 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
Changes in Deferred Taxes, Net | Changes in deferred taxes, net 2018 2017 1) Opening balance, net 21,062 14,851 Opening balance adjustment due to IFRS 9 288 — Opening balance, adjusted 21,350 14,851 Recognized in net income (loss) 1,097 7,613 Recognized in other comprehensive income (loss) 285 –563 Acquisitions/disposals of subsidiaries –116 — Reclassification to current tax –289 –462 Translation difference 155 –377 Closing balance, net 22,482 21,062 1) 2017 is restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
Tax Loss Carry-forwards | Tax loss carry-forwards Year of expiration Tax loss carry-forwards Tax value 2019 1 — 2020 1 — 2021 168 25 2022 414 122 2023 121 23 2024 or later 38,710 8,279 Total 39,415 8,449 |
H2 Earnings per share (Tables)
H2 Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Earnings Per Share | Earnings per share 2018 2017 1) 2016 1) Basic Net income (loss) attributable to stockholders of the Parent Company (SEK million) –6,530 –32,576 833 Average number of shares outstanding, basic (millions) 3,291 3,277 3,263 Earnings (loss) per share, basic (SEK) –1.98 –9.94 0.26 Diluted Net income (loss) attributable to stockholders of the Parent Company (SEK million) –6,530 –32,576 833 Average number of shares outstanding, basic (millions) 3,291 3,277 3,263 Dilutive effect for stock purchase (millions) — — 40 Average number of shares outstanding, diluted (millions) 3,291 3,277 3,303 Earnings (loss) per share, diluted (SEK) –1.98 –9.94 0.25 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” |
H3 Statement of cash flows (Tab
H3 Statement of cash flows (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Adjustments to Reconcile Net Income to Cash | Adjustments to reconcile net income to cash 2018 2017 1) 2016 1) Property, plant and equipment Depreciation 3,275 4,103 4,421 Impairment losses/reversals of impairments 568 2,211 148 Total 3,843 6,314 4,569 Intangible assets Amortizations Capitalized development expenses 2,559 2,681 1,815 Intellectual Property Rights, brands and other intangible assets 1,387 1,667 2,650 Total amortizations 3,946 4,348 4,465 Impairments Capitalized development expenses 254 2,245 85 Intellectual Property Rights, brands and other intangible assets — 2,019 — Goodwill 275 12,966 — Total impairments 529 17,230 85 Total 4,475 21,578 4,550 Total depreciation, amortization and impairment losses on property, plant and equipment and intangible assets 8,318 27,892 9,119 Taxes –1,897 –9,064 1) –6,449 1) Dividends from joint ventures/associated companies 2) 30 77 84 Undistributed earnings in joint ventures/ associated companies 2) –53 –21 –26 Gains/losses on sales of investments and operations, intangible assets and PP&E, net 3) 212 –167 –37 Other non-cash 4) 1,220 607 3,172 Total adjustments to reconcile net income to cash 7,830 19,324 5,863 1) 2017 and 2016 are restated due to implementation of IFRS 15 “Revenue from Contracts with Customers,” for more information see Note A3, “Changes in accounting policies.” 2) See Note E3, “Associated companies.” 3) See Note B4, “Other operating income and expense.” 4) Refers mainly to unrealized foreign exchange, gains/losses on financial instruments. |
Summary of Acquisitions/Divestments of Subsidiaries and Other Operations | Acquisitions/divestments of subsidiaries and other operations Acquisitions Divestments 2018 Cash flow from business combinations 1) –1,220 226 Acquisitions/divestments of other investments –398 107 Total –1,618 333 2017 Cash flow from business combinations 1) –62 459 Acquisitions/divestments of other investments –227 106 Total –289 565 2016 Cash flow from business combinations 1) –781 25 Acquisitions/divestments of other investments –203 337 Total –984 362 1) See also Note E2, “Business combinations.” |
H5 Fees to auditors (Tables)
H5 Fees to auditors (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Fees to Auditors | Fees to auditors PwC Others Total 2018 Audit fees 98 4 102 Audit-related fees 11 2 13 Tax fees 9 2 11 Other fees 9 6 15 Total 127 14 141 2017 Audit fees 89 2 91 Audit-related fees 11 — 11 Tax fees 13 4 17 Other fees 9 7 16 Total 122 13 135 2016 Audit fees 90 3 93 Audit-related fees 10 — 10 Tax fees 10 8 18 Other fees 16 11 27 Total 126 22 148 |
Significant Accounting Policies
Significant Accounting Policies - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line items] | |||
Payments terms | 60 days from invoice date. | ||
Customer finance agreements, description | Customer finance agreements may be agreed separately with some customers where payment terms exceed 179 days. | ||
Contract asset | kr 13,178 | kr 13,120 | kr 17,773 |
Minimum lease payments for operating lease contracts | kr 13,369 | ||
Transition to IFRS Sixteen [member] | |||
Summary Of Significant Accounting Policies [Line items] | |||
Weighted average incremental borrowing rate applied to lease liabilities | 5.40% | ||
Contract asset | kr 300 | ||
Amortization of lease liabilities | 2,000 | ||
Minimum lease payments for operating lease contracts | 13,400 | ||
Operating lease discount | 2,100 | ||
Low value lease agreement | 900 | ||
Net of operating lease advance payments and operating lease term extensions | 300 | ||
Estimated lease liabilities | 10,100 | ||
Onerous contracts | 800 | ||
Periodization of lease costs | 600 | ||
Advance lease payments | 300 | ||
Right-of-use assets | kr 8,700 | ||
Percentage of increase in total asset value | 3.00% | ||
Customized solution [member] | |||
Summary Of Significant Accounting Policies [Line items] | |||
Payments terms | 60 days from invoice date. | ||
Customer finance agreements, description | Customer finance agreements may be agreed separately with some customers where payment terms exceed 179 days. | ||
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] | |||
Estimated useful lives in general for real estate | 25 years | ||
Estimated useful lives for machinery and equipment | 3 years | ||
Potential voting rights | 20.00% | ||
Top of range [member] | |||
Summary Of Significant Accounting Policies [Line items] | |||
Estimated useful lives in general for real estate | 50 years | ||
Estimated useful lives for machinery and equipment | 10 years | ||
Potential voting rights | 50.00% |
Significant Accounting Polici_2
Significant Accounting Policies - Summary of Estimated Impact of IFRS 16 on Balance Sheet Items (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Disclosure of initial application of standards or interpretations [line items] | ||||
Equity | kr 87,770 | kr 97,571 | kr 135,257 | kr 143,013 |
Transition to IFRS Sixteen [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Right-of-use assets | 8,700 | |||
Lease liabilities, current | 2,000 | |||
Lease liabilities, non-current | 8,100 | |||
Equity | kr 300 |
Critical Accounting Estimates a
Critical Accounting Estimates and Judgments - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 01, 2016 | |
Disclosure of accounting judgements and estimates [line items] | |||||
Allowances for estimated losses on trade and customer receivables | kr 4,100 | kr 3,600 | |||
Percentage of allowances for estimated losses on gross trade and customer finance receivables | 6.00% | 5.30% | |||
Allowances for estimated losses on inventory valuation | kr 2,600 | kr 2,400 | |||
Allowances for estimated losses on inventory valuation, percentage | 8.00% | 9.00% | |||
Write-downs for intangible assets and goodwill | kr 529 | kr 17,230 | kr 85 | ||
Goodwill | 30,035 | 27,815 | 43,387 | ||
Provisions | 16,008 | 9,879 | 6,320 | ||
Defined benefit obligation (DBO) | 90,320 | 87,645 | |||
Fair value of plan assets | 64,322 | 64,939 | |||
Deferred tax assets | 23,152 | 21,963 | kr 16,998 | kr 22,251 | kr 14,411 |
Intellectual property rights brands and other intangible assets [member] | |||||
Disclosure of accounting judgements and estimates [line items] | |||||
Intangible assets and goodwill | kr 33,500 | kr 32,000 |
Changes In Accounting Policies
Changes In Accounting Policies - Summary of Impact on Implementation of IFRS 9 and IFRS 15 on Equity and Other Balance Sheet Items (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Non-current assets | ||||||
Deferred tax assets | kr 23,152 | kr 22,251 | kr 21,963 | kr 16,998 | kr 14,411 | |
Current assets | ||||||
Inventories | 29,255 | 25,547 | 25,547 | 31,618 | 28,605 | |
Contract assets | 13,120 | 13,120 | 17,773 | 20,188 | ||
Trade receivables | 51,172 | 46,865 | 48,105 | 48,358 | 49,189 | |
Equity | ||||||
Stockholder's equity | 86,978 | 95,952 | 96,935 | 134,582 | 142,172 | |
Non-current liabilities | ||||||
Borrowings, non-current | 30,870 | 30,531 | 30,500 | 18,653 | 22,744 | |
Current liabilities | ||||||
Provisions, current | 10,537 | 6,283 | 6,283 | 5,374 | 3,662 | |
Contract liabilities | 29,076 | 29,076 | 24,930 | 20,324 | ||
Trade payables | 29,883 | 26,320 | 26,320 | 25,844 | 22,389 | |
Other current liabilities | kr 38,891 | kr 35,305 | 35,305 | 36,622 | kr 42,396 | |
Previously stated [member] | ||||||
Non-current assets | ||||||
Deferred tax assets | 21,228 | 15,522 | kr 13,183 | |||
Current assets | ||||||
Inventories | 24,960 | 30,307 | 28,436 | |||
Trade receivables | 63,210 | 68,117 | 71,069 | |||
Equity | ||||||
Stockholder's equity | 99,540 | 139,817 | 146,525 | |||
Non-current liabilities | ||||||
Borrowings, non-current | 30,500 | 18,653 | 22,744 | |||
Current liabilities | ||||||
Provisions, current | 6,350 | 5,411 | 3,662 | |||
Trade payables | 26,321 | 25,318 | 22,389 | |||
Other current liabilities | 62,370 | 56,003 | 58,663 | |||
Increase (decrease) due to application of IFRS 15 [member] | ||||||
Non-current assets | ||||||
Deferred tax assets | 735 | 1,476 | 1,228 | |||
Current assets | ||||||
Inventories | 587 | 1,311 | 169 | |||
Contract assets | 13,120 | 17,773 | 20,188 | |||
Trade receivables | (15,105) | (19,759) | (21,880) | |||
Equity | ||||||
Stockholder's equity | (2,605) | (5,235) | (4,353) | |||
Current liabilities | ||||||
Provisions, current | (67) | (37) | ||||
Contract liabilities | 29,076 | 24,930 | 20,324 | |||
Trade payables | (1) | 526 | ||||
Other current liabilities | (27,065) | kr (19,381) | kr (16,267) | |||
IFRS 9 adjustment [member] | ||||||
Non-current assets | ||||||
Deferred tax assets | 288 | |||||
Current assets | ||||||
Trade receivables | (1,240) | |||||
Equity | ||||||
Stockholder's equity | (983) | |||||
Non-current liabilities | ||||||
Borrowings, non-current | kr 31 |
Changes in Accounting Policie_2
Changes in Accounting Policies - Additional Information (Detail) - SEK (kr) kr in Millions | Jan. 01, 2018 | Jan. 01, 2016 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2017 |
Summary Of Significant Accounting Policies [Line items] | |||||
Increase (decrease) in allowance for impairment for trade receivables and contract assets | kr 1,240 | ||||
Contract asset | 13,178 | kr 17,773 | kr 13,120 | ||
Contract liability | 29,348 | 24,930 | 29,076 | ||
Equity | kr 143,013 | 87,770 | 135,257 | 97,571 | |
Derecognition of assets [member] | |||||
Summary Of Significant Accounting Policies [Line items] | |||||
Accumulated gains after tax | 51 | ||||
Derecognition of equity instruments [member] | |||||
Summary Of Significant Accounting Policies [Line items] | |||||
Accumulated gains after tax | 744 | ||||
Increase (decrease) due to application of IFRS 15 [member] | |||||
Summary Of Significant Accounting Policies [Line items] | |||||
Net reduction to equity | kr 3,300 | ||||
Contract liability | 29,100 | ||||
Increase (decrease) due to application of IFRS 15 [member] | Discount in contract [member] | |||||
Summary Of Significant Accounting Policies [Line items] | |||||
Net reduction to equity | 3,800 | 1,100 | 4,200 | ||
Increase (decrease) due to application of IFRS 15 [member] | Customized solution contract [member] | |||||
Summary Of Significant Accounting Policies [Line items] | |||||
Net reduction to equity | 700 | 800 | 800 | ||
Increase (decrease) due to application of IFRS 15 [member] | Transfer of control for equipment [member] | |||||
Summary Of Significant Accounting Policies [Line items] | |||||
Net reduction to equity | 200 | kr 400 | 500 | ||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||||
Summary Of Significant Accounting Policies [Line items] | |||||
Equity | kr (4,353) | kr (5,235) | kr (2,605) | ||
Transition to IFRS 9 [member] | |||||
Summary Of Significant Accounting Policies [Line items] | |||||
Increase in carrying value of borrowings | 31 | ||||
Transition to IFRS 15 [member] | |||||
Summary Of Significant Accounting Policies [Line items] | |||||
Contract asset | kr 13,100 |
Changes in Accounting Policie_3
Changes in Accounting Policies - Summary of Reclassification of Financial Instruments (Detail) kr in Millions | Jan. 01, 2018SEK (kr) |
IFRS9 [member] | |
Financial assets | |
Trade receivables | kr 46,865 |
Interest-bearing securities - other | 266 |
Cash equivalents - other | 3,136 |
IFRS9 [member] | Instruments at fair value through profit or loss [member] | |
Financial assets | |
Interest-bearing securities - managed on a fair value basis | 25,433 |
Customer finance | 3,931 |
Interest-bearing securities - held for trading | 6,118 |
Other investments in shares and participations | 1,279 |
Other financial investments 2) | 820 |
Derivatives 3) | 1,293 |
Cash equivalents - held for trading | 14,345 |
IFRS9 [member] | Financial liabilities at designated fair value through profit or loss, category [member] | |
Financial liabilities | |
Borrowings - managed on a fair value basis | 28,802 |
Derivatives 3) | 926 |
IFRS9 [member] | Instruments at amortized cost [member] | |
Financial liabilities | |
Borrowings - other | 4,274 |
Trade payables | 26,320 |
IAS 39 [member] | Instruments at fair value through profit or loss [member] | |
Financial assets | |
Interest-bearing securities - held for trading | 6,118 |
Other financial investments 2) | 820 |
Derivatives 3) | 1,293 |
Cash equivalents - held for trading | 14,345 |
IAS 39 [member] | Loans and receivables [member] | |
Financial assets | |
Customer finance | 3,931 |
Trade receivables | 48,105 |
Interest-bearing securities - other | 266 |
Cash equivalents - other | 3,136 |
IAS 39 [member] | Available for sale [member] | |
Financial assets | |
Interest-bearing securities - managed on a fair value basis | 25,433 |
Other investments in shares and participations | 1,279 |
IAS 39 [member] | Financial liabilities at designated fair value through profit or loss, category [member] | |
Financial liabilities | |
Derivatives 3) | 926 |
IAS 39 [member] | Instruments at amortized cost [member] | |
Financial liabilities | |
Borrowings - managed on a fair value basis | 28,771 |
Borrowings - other | 4,274 |
Trade payables | kr 26,320 |
Changes in Accounting Policie_4
Changes in Accounting Policies - Summary of Estimated Impact of IFRS 15 on Equity (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||||
Equity | kr 87,770 | kr 97,571 | kr 135,257 | kr 143,013 | |
Previously stated [member] | |||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||||
Equity | 100,176 | 140,492 | 147,366 | kr 147,366 | |
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||||
Equity | kr (2,605) | kr (5,235) | kr (4,353) |
Changes in Accounting Policie_5
Changes in Accounting Policies - Summary of Estimated Impact of IFRS 15 on Income Statement Items (Detail) - SEK (kr) kr / shares in Units, kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Net sales | kr 210,838 | kr 205,378 | kr 220,316 |
Cost of sales | (142,638) | (157,451) | (155,062) |
Gross income | 68,200 | 47,927 | 65,254 |
Operating income (loss) | 1,242 | (34,743) | 5,187 |
Taxes | (4,813) | 3,525 | (1,882) |
Net income (loss) | kr (6,276) | kr (32,433) | kr 1,012 |
Earnings per share, basic (SEK) | kr (1.98) | kr (9.94) | kr 0.26 |
Earnings per share, diluted (SEK) | kr (1.98) | kr (9.94) | kr 0.25 |
Previously stated [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Net sales | kr 201,303 | kr 222,608 | |
Cost of sales | (156,758) | (156,243) | |
Gross income | 44,545 | 66,365 | |
Operating income (loss) | (38,126) | 6,299 | |
Taxes | 4,267 | (2,131) | |
Net income (loss) | kr (35,063) | kr 1,895 | |
Earnings per share, basic (SEK) | kr (10.74) | kr 0.53 | |
Earnings per share, diluted (SEK) | kr (10.74) | kr 0.52 | |
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Net sales | kr 4,075 | kr (2,292) | |
Cost of sales | (693) | 1,181 | |
Gross income | 3,382 | (1,111) | |
Operating income (loss) | 3,383 | (1,112) | |
Taxes | (742) | 249 | |
Net income (loss) | kr 2,630 | kr (883) | |
Earnings per share, basic (SEK) | kr 0.80 | kr (0.27) | |
Earnings per share, diluted (SEK) | kr 0.80 | kr (0.27) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018CustomersSegments | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | ||
Number of operating segments reported | Segments | 4 | |
Description of factors used to identify entity's reportable segments | When determining Ericsson's operating segments, consideration has been given to which markets and what type of customers the products and services aim to attract, as well as the distribution channels they are sold through. Commonality regarding technology, research and development has also been taken into account. To best reflect the business focus and to facilitate comparability with peers, four operating segments are reported; | |
Number of customer for which revenues from transactions have | 0 | |
Number of largest customers accounted for 48% (45%) of net sales | 10 | |
10 largest customers [member] | ||
Disclosure of operating segments [line items] | ||
Percentage of contribution to net sales | 48.00% | 45.00% |
Largest customer [member] | ||
Disclosure of operating segments [line items] | ||
Percentage of contribution to net sales | 9.00% | 8.00% |
Bottom of range [member] | ||
Disclosure of operating segments [line items] | ||
Number of customer base | 500 | |
Networks [member] | IPR licensing revenues [member] | ||
Disclosure of operating segments [line items] | ||
Percentage of revenue | 82.00% | |
Digital services [member] | IPR licensing revenues [member] | ||
Disclosure of operating segments [line items] | ||
Percentage of revenue | 18.00% |
Segment Information - Summary o
Segment Information - Summary of Operating Segments (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of operating segments [line items] | |||
Net sales | kr 210,838 | kr 205,378 | kr 220,316 |
Gross income | kr 68,200 | kr 47,927 | kr 65,254 |
Gross margin | 32.30% | 23.30% | 29.60% |
Operating income | kr 1,242 | kr (34,743) | kr 5,187 |
Operating margin | 0.60% | (16.90%) | 2.40% |
Financial income | kr (316) | kr (372) | kr (135) |
Financial expenses | (2,389) | (843) | (2,158) |
Income after financial items | (1,463) | (35,958) | 2,894 |
Taxes | (4,813) | 3,525 | (1,882) |
Net income | (6,276) | (32,433) | 1,012 |
Other segment items | |||
Share in earnings of JV and associated companies | 58 | 24 | 31 |
Amortizations | (3,946) | (4,348) | (4,465) |
Depreciations | (3,275) | (4,103) | (4,421) |
Impairment losses | (1,097) | (19,441) | (241) |
Reversals of impairment losses | 8 | ||
Restructuring expenses | (8,015) | (8,501) | (7,567) |
Gains/losses on sale of investments and operations | (225) | 194 | 123 |
Networks [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 138,570 | 132,285 | 140,076 |
Digital services [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 38,089 | 38,752 | 42,774 |
Managed services [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 25,770 | 26,472 | 28,780 |
Emerging business and other [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 8,409 | 7,869 | 8,686 |
Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 210,838 | 205,378 | 220,316 |
Gross income | kr 68,200 | kr 47,927 | kr 65,254 |
Gross margin | 32.30% | 23.30% | 29.60% |
Operating income | kr 1,242 | kr (34,743) | kr 5,187 |
Operating margin | 0.60% | (16.90%) | 2.40% |
Other segment items | |||
Share in earnings of JV and associated companies | kr 58 | kr 24 | kr 31 |
Amortizations | (3,946) | (4,348) | (4,465) |
Depreciations | (3,275) | (4,103) | (4,421) |
Impairment losses | (1,097) | (19,441) | (241) |
Reversals of impairment losses | 8 | ||
Restructuring expenses | (8,015) | (8,501) | (7,567) |
Gains/losses on sale of investments and operations | (225) | 194 | 123 |
Operating segments [member] | Networks [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 138,570 | 132,285 | 140,076 |
Gross income | kr 55,153 | kr 43,428 | kr 46,193 |
Gross margin | 39.80% | 32.80% | 33.20% |
Operating income | kr 19,421 | kr 10,455 | kr 16,669 |
Operating margin | 14.00% | 7.90% | 11.90% |
Other segment items | |||
Share in earnings of JV and associated companies | kr 28 | kr 22 | kr 11 |
Amortizations | (830) | (1,104) | (1,526) |
Depreciations | (1,717) | (1,883) | (2,532) |
Impairment losses | (308) | (1,413) | (90) |
Reversals of impairment losses | 5 | ||
Restructuring expenses | (1,781) | (4,828) | (3,413) |
Gains/losses on sale of investments and operations | (132) | 316 | 72 |
Operating segments [member] | Digital services [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 38,089 | 38,752 | 42,774 |
Gross income | kr 8,318 | kr 4,698 | kr 15,603 |
Gross margin | 21.80% | 12.10% | 35.00% |
Operating income | kr (13,852) | kr (27,282) | kr (7,146) |
Operating margin | (36.40%) | (70.40%) | (15.30%) |
Other segment items | |||
Share in earnings of JV and associated companies | kr 27 | kr 8 | kr 22 |
Amortizations | (2,295) | (2,465) | (1,923) |
Depreciations | (933) | (1,268) | (1,061) |
Impairment losses | (406) | (9,349) | (38) |
Reversals of impairment losses | 2 | ||
Restructuring expenses | (5,366) | (2,513) | (3,176) |
Gains/losses on sale of investments and operations | (36) | (56) | 27 |
Operating segments [member] | Managed services [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 25,770 | 26,472 | 28,780 |
Gross income | kr 2,886 | kr (1,574) | kr 1,244 |
Gross margin | 11.20% | (5.90%) | 4.00% |
Operating income | kr 1,093 | kr (4,089) | kr (326) |
Operating margin | 4.20% | (15.40%) | (1.70%) |
Other segment items | |||
Share in earnings of JV and associated companies | kr 3 | kr (6) | |
Amortizations | (14) | (14) | kr (18) |
Depreciations | (169) | (193) | (341) |
Impairment losses | (29) | (108) | (12) |
Reversals of impairment losses | 1 | ||
Restructuring expenses | (276) | (675) | (382) |
Gains/losses on sale of investments and operations | (57) | 1 | 18 |
Operating segments [member] | Emerging business and other [member] | |||
Disclosure of operating segments [line items] | |||
Net sales | 8,409 | 7,869 | 8,686 |
Gross income | kr 1,843 | kr 1,375 | kr 2,214 |
Gross margin | 21.90% | 17.50% | 25.50% |
Operating income | kr (5,420) | kr (13,827) | kr (4,010) |
Operating margin | (64.50%) | (175.70%) | (46.20%) |
Other segment items | |||
Share in earnings of JV and associated companies | kr (2) | ||
Amortizations | kr (807) | kr (765) | (998) |
Depreciations | (456) | (759) | (487) |
Impairment losses | (354) | (8,571) | (101) |
Restructuring expenses | kr (592) | (485) | (596) |
Gains/losses on sale of investments and operations | kr (67) | kr 6 |
Segment Information - Summary_2
Segment Information - Summary of Geographical Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of geographical areas [line items] | |||
Net sales | kr 210,838 | kr 205,378 | kr 220,316 |
Non-current assets, total | 51,206 | 50,037 | 76,719 |
Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 138,570 | 132,285 | 140,076 |
Digital services [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 38,089 | 38,752 | 42,774 |
Managed services [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 25,770 | 26,472 | 28,780 |
Emerging business and other [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 8,409 | 7,869 | 8,686 |
South East Asia, Oceania and India [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 29,589 | 31,346 | 31,457 |
Non-current assets, total | 445 | 512 | 690 |
South East Asia, Oceania and India [member] | Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 21,337 | 23,367 | 23,741 |
South East Asia, Oceania and India [member] | Digital services [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 4,824 | 4,755 | 4,356 |
South East Asia, Oceania and India [member] | Managed services [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 3,388 | 3,216 | 3,355 |
South East Asia, Oceania and India [member] | Emerging business and other [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 40 | 8 | 5 |
North East Asia [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 22,309 | 23,583 | 26,993 |
Non-current assets, total | 1,833 | 1,516 | 1,556 |
North East Asia [member] | Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 15,915 | 16,239 | 18,694 |
North East Asia [member] | Digital services [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 4,849 | 5,463 | 6,777 |
North East Asia [member] | Managed services [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 1,465 | 1,867 | 1,513 |
North East Asia [member] | Emerging business and other [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 80 | 14 | 9 |
North America [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 58,586 | 52,001 | 51,951 |
Non-current assets, total | 9,397 | 8,387 | 14,650 |
North America [member] | Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 46,452 | 40,645 | 37,863 |
North America [member] | Digital services [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 8,358 | 8,035 | 7,986 |
North America [member] | Managed services [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 3,680 | 3,207 | 6,017 |
North America [member] | Emerging business and other [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 96 | 114 | 85 |
Europe and Latin America [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 60,272 | 56,801 | 62,493 |
Non-current assets, total | 39,481 | 39,559 | 59,737 |
Europe and Latin America [member] | Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 34,413 | 30,236 | 34,179 |
Europe and Latin America [member] | Digital services [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 12,339 | 12,147 | 14,584 |
Europe and Latin America [member] | Managed services [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 13,207 | 14,138 | 13,620 |
Europe and Latin America [member] | Emerging business and other [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 313 | 280 | 110 |
Middle East and Africa [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 23,629 | 24,965 | 27,372 |
Non-current assets, total | 50 | 63 | 86 |
Middle East and Africa [member] | Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 13,300 | 14,075 | 16,108 |
Middle East and Africa [member] | Digital services [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 6,284 | 6,800 | 6,987 |
Middle East and Africa [member] | Managed services [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 4,030 | 4,044 | 4,275 |
Middle East and Africa [member] | Emerging business and other [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 15 | 46 | 2 |
Other regions [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 16,453 | 16,682 | 20,050 |
Other regions [member] | Networks [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 7,153 | 7,723 | 9,491 |
Other regions [member] | Digital services [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 1,435 | 1,552 | 2,084 |
Other regions [member] | Emerging business and other [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 7,865 | 7,407 | 8,475 |
Sweden [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 2,315 | 3,334 | 3,365 |
Non-current assets, total | 34,434 | 34,381 | 53,111 |
European union [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 35,941 | 36,472 | 38,783 |
Non-current assets, total | 38,423 | 37,895 | 57,759 |
US [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 61,446 | 54,694 | 56,332 |
Non-current assets, total | 8,349 | 7,092 | 11,053 |
China [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales | 14,601 | 14,983 | 18,886 |
Non-current assets, total | kr 1,525 | kr 1,123 | kr 530 |
Net Sales - Summary of Net Sale
Net Sales - Summary of Net Sales (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net sales [line items] | |||
Net sales | kr 210,838 | kr 205,378 | kr 220,316 |
IPR licensing revenues | 7,954 | 8,250 | 10,256 |
Export sales from Sweden | 109,969 | 87,463 | 105,552 |
Hardware [member] | |||
Disclosure of net sales [line items] | |||
Net sales | 76,792 | 70,862 | 72,675 |
Software [member] | |||
Disclosure of net sales [line items] | |||
Net sales | 44,633 | 43,896 | 49,096 |
Services [member] | |||
Disclosure of net sales [line items] | |||
Net sales | kr 89,413 | kr 90,620 | kr 98,545 |
Expenses by Nature - Summary of
Expenses by Nature - Summary of Expenses by Nature (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expenses by nature [abstract] | |||
Goods and services | kr 135,554 | kr 128,180 | kr 133,809 |
Employee remuneration | 67,161 | 76,502 | 77,774 |
Amortization and depreciation | 7,221 | 8,451 | 8,886 |
Impairments, obsolescence allowances and revaluation | 3,470 | 11,531 | 1,325 |
Financial expenses | 2,389 | 843 | 2,158 |
Taxes | 4,813 | (3,525) | 1,882 |
Expenses incurred | 220,608 | 221,982 | 225,834 |
Inventory increase/decrease | (2,995) | 4,794 | (1,748) |
Additions to capitalized development | (925) | (1,444) | (4,483) |
Expenses charged to the income statement | kr 216,688 | kr 225,332 | kr 219,603 |
Expenses by Nature - Additional
Expenses by Nature - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expense by Nature [line items] | |||
Expense of restructuring activities | kr 8,015 | kr 8,501 | kr 7,567 |
Revised Business Support System Strategy [member] | |||
Expense by Nature [line items] | |||
Expense of restructuring activities | kr (3,100) | ||
ICT center [member] | |||
Expense by Nature [line items] | |||
Expense of restructuring activities | kr (1,300) |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expense by Nature [line items] | |||
Total restructuring charges | kr 8,015 | kr 8,501 | kr 7,567 |
Cost of sales [member] | |||
Expense by Nature [line items] | |||
Total restructuring charges | 5,938 | 5,242 | 3,475 |
R&D expenses [member] | |||
Expense by Nature [line items] | |||
Total restructuring charges | 1,293 | 2,307 | 2,739 |
Selling and administrative expenses [member] | |||
Expense by Nature [line items] | |||
Total restructuring charges | kr 784 | kr 952 | kr 1,353 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other operating income | |||
Gains on sales of intangible assets and PP&E | kr 30 | kr 47 | kr 423 |
Gains on sales of investments and operations | 105 | 324 | 219 |
Other operating revenues | 362 | 783 | 1,345 |
Total other operating income | 497 | 1,154 | 1,987 |
Other operating expenses | |||
Losses on sales of intangible assets and PP&E | (17) | (74) | (509) |
Losses on sales of investments and operations | (330) | (130) | (96) |
Write-down of goodwill | (275) | (12,966) | |
Other operating expenses | (43) | (115) | (979) |
Total other operating expenses | kr (665) | kr (13,285) | kr (1,584) |
Other Operating Income and Ex_2
Other Operating Income and Expenses - Schedule of Other Operating Income and Expenses (Parenthetical) (Detail) - SEK (kr) kr in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Analysis of income and expense [abstract] | |||
Revaluation of cash flow hedges | kr 0 | kr 0 | kr (0.9) |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Disclosure of inventories [abstract] | |||||
Raw materials, components, consumables and manufacturing work in progress | kr 7,484 | kr 4,015 | |||
Finished products and goods for resale | 9,667 | 9,273 | |||
Contract work in progress | 12,104 | 12,259 | |||
Inventories, net | kr 29,255 | kr 25,547 | kr 25,547 | kr 31,618 | kr 28,605 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of inventories [abstract] | ||||
Inventories, excluding contract work in progress, recognized as expense | kr 55,632 | kr 58,901 | ||
Inventory obsolescence allowances | kr 2,611 | kr 2,425 | kr 2,412 | kr 2,555 |
Inventories - Movements in Obso
Inventories - Movements in Obsolescence Allowances (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of inventories [abstract] | |||
Inventory obsolescence allowances, Opening balance | kr 2,425 | kr 2,412 | kr 2,555 |
Additions, net | 1,079 | 1,319 | 725 |
Utilization | (987) | (1,210) | (981) |
Translation differences | 94 | (91) | 113 |
Balances regarding acquired/divested businesses | (5) | ||
Inventory obsolescence allowances, Closing balance | kr 2,611 | kr 2,425 | kr 2,412 |
Customer Contract Related Balan
Customer Contract Related Balances - Schedule of Trade Receivables, Customer Finance, Contract Assets and Contract Liabilities (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Disclosure of Receivables, customer finance, contract assets and contract liabilities [abstract] | |||||
Customer finance credits | kr 2,884 | kr 3,931 | |||
Trade receivables | 51,172 | kr 46,865 | 48,105 | kr 48,358 | kr 49,189 |
Contract assets | 13,178 | 13,120 | 17,773 | ||
Contract liabilities | kr 29,348 | kr 29,076 | kr 24,930 |
Customer Contract Related Bal_2
Customer Contract Related Balances - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Receivables Customer Finance Contract Assets And Contract Liabilities [line items] | ||
Trade receivables related to associated companies and joint ventures | kr 140 | kr 58 |
Customer finance credits current | kr 1,704 | kr 1,753 |
2019 [member] | ||
Disclosure Of Receivables Customer Finance Contract Assets And Contract Liabilities [line items] | ||
Percentage of expected to recognize transaction price allocated to remaining performance obligation as revenue | 80.00% | |
2020 [member] | ||
Disclosure Of Receivables Customer Finance Contract Assets And Contract Liabilities [line items] | ||
Percentage of expected to recognize transaction price allocated to remaining performance obligation as revenue | 20.00% |
Customer Contract Related Bal_3
Customer Contract Related Balances - Summary of Significant Movements in Contract Assets and Liabilities (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of performance obligations [abstract] | ||
Revenue recognized in the year relating to the opening contract liability balance | kr 22,447 | kr 17,509 |
Revenue recognized relating to performance obligations satisfied in prior financial periods | (1,148) | kr (1,035) |
Aggregate amount of transaction price allocated to unsatisfied or partially satisfied performance obligations | kr 104,519 |
Other Current Receivables - Sum
Other Current Receivables - Summary of Other Current Receivables (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of other current receivables [line items] | |||
Total other current receivables | kr 20,844 | kr 22,301 | kr 24,432 |
Prepaid expenses [member] | |||
Disclosure of other current receivables [line items] | |||
Total other current receivables | 2,101 | 2,546 | |
Advance payments to suppliers [member] | |||
Disclosure of other current receivables [line items] | |||
Total other current receivables | 269 | 338 | |
Derivatives with a positive value [member] | |||
Disclosure of other current receivables [line items] | |||
Total other current receivables | 403 | 1,207 | |
Taxes [member] | |||
Disclosure of other current receivables [line items] | |||
Total other current receivables | 16,862 | 15,291 | |
Others [member] | |||
Disclosure of other current receivables [line items] | |||
Total other current receivables | kr 1,209 | kr 2,919 |
Trade Payables - Summary of Tra
Trade Payables - Summary of Trade Payables (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Trade and other payables [abstract] | |||||
Trade payables to associated companies and joint ventures | kr 293 | kr 286 | |||
Trade payables, excluding associated companies and joint ventures | 29,590 | 26,034 | |||
Total | kr 29,883 | kr 26,320 | kr 26,320 | kr 25,844 | kr 22,389 |
Other Current Liabilities - Sum
Other Current Liabilities - Summary of Other Current Liabilities (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Disclosure of Other Current Liabilities [line items] | |||||
Accrued interest | kr 656 | kr 383 | |||
Accrued expenses | 32,258 | 29,196 | |||
Derivatives with a negative value | 887 | 926 | |||
Other current liabilities | 38,891 | kr 35,305 | 35,305 | kr 36,622 | kr 42,396 |
Of which employee-related [member] | |||||
Disclosure of Other Current Liabilities [line items] | |||||
Accrued expenses | 12,774 | 8,935 | |||
Of which supplier-related [member] | |||||
Disclosure of Other Current Liabilities [line items] | |||||
Accrued expenses | 10,920 | 10,491 | |||
Of which other [member] | |||||
Disclosure of Other Current Liabilities [line items] | |||||
Accrued expenses | 8,564 | 9,770 | |||
Other [member] | |||||
Disclosure of Other Current Liabilities [line items] | |||||
Other current liabilities | kr 5,090 | kr 4,800 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Impairment losses | kr 529 | kr 17,230 | kr 85 |
Capitalized development expenditure [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | 4,593 | ||
Intangible assets and goodwill, Closing balance | 4,237 | 4,593 | |
Capitalized development expenditure [member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | 22,731 | 22,306 | |
Acquisitions/capitalization | 925 | 1,444 | |
Sales/disposals | (1,468) | (1,019) | |
Reclassification | 1,505 | ||
Translation difference | 26 | ||
Intangible assets and goodwill, Closing balance | 23,719 | 22,731 | 22,306 |
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 | (13,677) | (12,015) | |
Amortizations | (2,559) | (2,681) | |
Sales/disposals | 1,468 | 1,019 | |
Intangible assets and goodwill, Closing balance | (14,768) | (13,677) | (12,015) |
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 | (4,460) | (2,215) | |
Impairment losses | (254) | (2,245) | |
Intangible assets and goodwill, Closing balance | (4,714) | (4,460) | (2,215) |
Goodwill [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | 27,815 | ||
Intangible assets and goodwill, Closing balance | 30,035 | 27,815 | |
Goodwill [member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | 40,799 | 43,405 | |
Balances regarding acquired/divested businesses | 911 | (122) | |
Translation difference | 1,584 | (2,484) | |
Intangible assets and goodwill, Closing balance | 43,294 | 40,799 | 43,405 |
Goodwill [member] | Accumulated impairment losses [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | (12,984) | (18) | |
Impairment losses | (275) | (12,966) | |
Intangible assets and goodwill, Closing balance | (13,259) | (12,984) | (18) |
IPR, brands and other intangible assets [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Opening balance | 4,148 | ||
Intangible assets and goodwill, Closing balance | 3,474 | 4,148 | |
IPR, brands 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 | 55,932 | 57,340 | |
Acquisitions/capitalization | 28 | 336 | |
Balances regarding acquired/divested businesses | 451 | 101 | |
Sales/disposals | (41) | (152) | |
Translation difference | 1,731 | (1,693) | |
Intangible assets and goodwill, Closing balance | 58,101 | 55,932 | 57,340 |
IPR, brands 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 | (44,434) | (44,262) | |
Amortizations | (1,387) | (1,667) | |
Sales/disposals | 41 | 152 | |
Translation difference | (1,497) | 1,343 | |
Intangible assets and goodwill, Closing balance | (47,277) | (44,434) | (44,262) |
IPR, brands 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 | (7,350) | (5,331) | |
Impairment losses | (2,019) | ||
Intangible assets and goodwill, Closing balance | kr (7,350) | kr (7,350) | kr (5,331) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) kr in Millions, Mobile_subscriptions in Billions, Device in Billions | 12 Months Ended | |||
Dec. 31, 2023Mobile_subscriptionsDevice | Dec. 31, 2018SEK (kr)Mobile_subscriptions | Dec. 31, 2017SEK (kr) | Dec. 31, 2016SEK (kr) | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | kr 30,035 | kr 27,815 | kr 43,387 | |
Write down of goodwill | kr 275 | kr 12,966 | ||
After-tax discount rate | 8.80% | 8.50% | ||
Average GDP growth rate | 1.00% | 1.00% | ||
Impairment testing percentage | 11.50% | |||
Subscription by 2023 [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Number of connected devices are forecasted | Device | 30 | |||
Later than five year and not later than six years [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Percentage of estimated increase in mobile video traffic | 40.00% | |||
Percentage of estimated increase in mobile data traffic | 75.00% | |||
Estimated increase in mobile data traffic volume | 4 | |||
Smartphone traffic growth | 4 | |||
Mobile subscriptions [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Estimated number of global mobile subscriptions | Mobile_subscriptions | 8 | |||
Mobile subscriptions [member] | Subscription by 2023 [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Estimated number of global mobile subscriptions | Mobile_subscriptions | 8.8 | |||
Smart phone [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Estimated number of global mobile subscriptions | Mobile_subscriptions | 6.9 | |||
5G subscriptions [member] | Subscription by 2023 [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Estimated number of global mobile subscriptions | Mobile_subscriptions | 1 | |||
Networks [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | kr 25,700 | |||
Digital services [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | 3,100 | |||
Digital services [member] | Research and development expenses [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Write down of capitalized development expenses | 300 | |||
Emerging business and other [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | 1,200 | |||
Emerging business and other [member] | Other operating expenses [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Write down of goodwill | kr 300 | |||
Internet of things [member] | Subscription by 2023 [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Number of connected devices are forecasted | Device | 20 |
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, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | kr 12,857 | kr 16,734 |
Impairment losses | 600 | 2,200 |
Property, plant and equipment, closing balance | 12,849 | 12,857 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 42,551 | 47,200 |
Additions | 3,975 | 3,877 |
Balances regarding acquired/divested businesses | (127) | (155) |
Sales/disposals | (3,895) | (7,352) |
Translation difference | 1,052 | (1,019) |
Property, plant and equipment, closing balance | 43,556 | 42,551 |
Accumulated depreciation and amortization [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (28,369) | (30,108) |
Depreciations | (3,275) | (4,103) |
Balances regarding acquired/divested businesses | 76 | 105 |
Sales/disposals | 2,919 | 5,054 |
Translation difference | (771) | 683 |
Property, plant and equipment, closing balance | (29,420) | (28,369) |
Accumulated impairment losses [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (1,325) | (358) |
Impairment losses | (568) | (2,211) |
Sales/disposals | 655 | 1,254 |
Translation difference | (49) | (10) |
Property, plant and equipment, closing balance | (1,287) | (1,325) |
Real estate [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 2,740 | |
Property, plant and equipment, closing balance | 2,849 | 2,740 |
Real estate [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 6,510 | 7,132 |
Additions | 11 | 150 |
Balances regarding acquired/divested businesses | (9) | |
Sales/disposals | (484) | (1,323) |
Reclassification | 566 | 757 |
Translation difference | 241 | (197) |
Property, plant and equipment, closing balance | 6,844 | 6,510 |
Real estate [member] | Accumulated depreciation and amortization [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (3,529) | (3,528) |
Depreciations | (425) | (458) |
Balances regarding acquired/divested businesses | 9 | |
Sales/disposals | 393 | 349 |
Translation difference | (142) | 99 |
Property, plant and equipment, closing balance | (3,703) | (3,529) |
Real estate [member] | Accumulated impairment losses [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (241) | (144) |
Impairment losses | (119) | (297) |
Sales/disposals | 78 | 200 |
Translation difference | (10) | |
Property, plant and equipment, closing balance | (292) | (241) |
Machinery and other technical assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 467 | |
Property, plant and equipment, closing balance | 358 | 467 |
Machinery and other technical assets [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 3,819 | 4,286 |
Additions | 124 | 183 |
Balances regarding acquired/divested businesses | (11) | (134) |
Sales/disposals | (649) | (457) |
Reclassification | 8 | 56 |
Translation difference | 81 | (115) |
Property, plant and equipment, closing balance | 3,372 | 3,819 |
Machinery and other technical assets [member] | Accumulated depreciation and amortization [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (3,288) | (3,629) |
Depreciations | (211) | (279) |
Balances regarding acquired/divested businesses | 5 | 85 |
Sales/disposals | 615 | 442 |
Reclassification | 1 | |
Translation difference | (70) | 93 |
Property, plant and equipment, closing balance | (2,948) | (3,288) |
Machinery and other technical assets [member] | Accumulated impairment losses [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (64) | (25) |
Impairment losses | (22) | (42) |
Sales/disposals | 20 | 4 |
Translation difference | (1) | |
Property, plant and equipment, closing balance | (66) | (64) |
Other equipment tools and installations [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 8,042 | |
Property, plant and equipment, closing balance | 8,771 | 8,042 |
Other equipment tools and installations [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 30,614 | 33,134 |
Additions | 1,976 | 1,317 |
Balances regarding acquired/divested businesses | (116) | (12) |
Sales/disposals | (2,430) | (5,387) |
Reclassification | 1,707 | 2,226 |
Translation difference | 718 | (664) |
Property, plant and equipment, closing balance | 32,469 | 30,614 |
Other equipment tools and installations [member] | Accumulated depreciation and amortization [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (21,552) | (22,951) |
Depreciations | (2,639) | (3,366) |
Balances regarding acquired/divested businesses | 71 | 11 |
Sales/disposals | 1,911 | 4,263 |
Reclassification | (1) | |
Translation difference | (559) | 491 |
Property, plant and equipment, closing balance | (22,769) | (21,552) |
Other equipment tools and installations [member] | Accumulated impairment losses [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | (1,020) | (189) |
Impairment losses | (427) | (1,872) |
Sales/disposals | 557 | 1,050 |
Translation difference | (39) | (9) |
Property, plant and equipment, closing balance | (929) | (1,020) |
Construction in progress and advance payments [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 1,608 | |
Property, plant and equipment, closing balance | 871 | 1,608 |
Construction in progress and advance payments [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, opening balance | 1,608 | 2,648 |
Additions | 1,864 | 2,227 |
Sales/disposals | (332) | (185) |
Reclassification | (2,281) | (3,039) |
Translation difference | 12 | (43) |
Property, plant and equipment, closing balance | kr 871 | kr 1,608 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Contractual commitments for acquisition of property, plant and equipment | kr 366 | kr 350 |
Impairment losses | 600 | 2,200 |
CANADA | ICT Center [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses | 1,200 | |
Networks [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses | 300 | 1,000 |
Digital services [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses | 200 | 700 |
Managed services [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses | 0 | 100 |
All other segments [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses | kr 0 | kr 400 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Parenthetical) (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | kr 12,849 | kr 12,857 | kr 16,734 |
Real estate [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 2,849 | 2,740 | |
Real estate [member] | Other property, plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 101 | ||
Machinery and other technical assets [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 358 | 467 | |
Machinery and other technical assets [member] | Other property, plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 22 | ||
Other equipment tools and installations [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 8,771 | 8,042 | |
Other equipment tools and installations [member] | Other property, plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 110 | ||
Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (29,420) | (28,369) | (30,108) |
Accumulated depreciation and amortization [member] | Other property, plant and equipment [member] | Adjusted opening balance [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (30,108) | (30,341) | |
Accumulated depreciation and amortization [member] | Real estate [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (3,703) | (3,529) | (3,528) |
Accumulated depreciation and amortization [member] | Machinery and other technical assets [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (2,948) | (3,288) | (3,629) |
Accumulated depreciation and amortization [member] | Other equipment tools and installations [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (22,769) | (21,552) | (22,951) |
Accumulated impairment losses [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (1,287) | (1,325) | (358) |
Accumulated impairment losses [member] | Other property, plant and equipment [member] | Adjusted opening balance [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (358) | (125) | |
Accumulated impairment losses [member] | Real estate [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (292) | (241) | (144) |
Accumulated impairment losses [member] | Machinery and other technical assets [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (66) | (64) | (25) |
Accumulated impairment losses [member] | Other equipment tools and installations [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | kr (929) | (1,020) | kr (189) |
Accumulated depreciation, amortisation and impairment [member] | Other property, plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | kr 233 |
Leasing - Additional Informatio
Leasing - Additional Information (Detail) - SEK (kr) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Leases [line items] | ||
Finance lease obligations | kr 0 | |
Expenses for leasing of assets | 4,100,000,000 | kr 4,194,000,000 |
Variable lease expenses | 125,000,000 | 101,000,000 |
Leasing income | kr 96,000,000 | kr 44,000,000 |
Lessor [member] | Bottom of range [member] | ||
Disclosure Of Leases [line items] | ||
Leasing contract period | 1 year | |
Lessor [member] | Top of range [member] | ||
Disclosure Of Leases [line items] | ||
Leasing contract period | 15 years | |
Lessee [member] | Bottom of range [member] | ||
Disclosure Of Leases [line items] | ||
Leasing contract period | 1 year | |
Lessee [member] | Top of range [member] | ||
Disclosure Of Leases [line items] | ||
Leasing contract period | 13 years |
Leasing - Summary of Future Min
Leasing - Summary of Future Minimum Lease Payment Obligations (Detail) kr in Millions | 12 Months Ended |
Dec. 31, 2018SEK (kr) | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | kr 13,369 |
Future minimum, Operating leases | 605 |
2019 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | 3,088 |
Future minimum, Operating leases | 105 |
2020 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | 2,603 |
Future minimum, Operating leases | 100 |
2021 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | 2,126 |
Future minimum, Operating leases | 101 |
2022 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | 1,311 |
Future minimum, Operating leases | 98 |
2023 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | 1,033 |
Future minimum, Operating leases | 97 |
2024 and later [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating leases | 3,208 |
Future minimum, Operating leases | kr 104 |
Provisions - Summary of Provisi
Provisions - Summary of Provisions (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Changes In Provisions [line items] | ||
Opening balance | kr 9,879 | kr 6,320 |
Additions | 13,710 | 12,479 |
Reversal of excess amounts | (725) | (362) |
Negative effect on Income statement | (12,985) | 12,117 |
Utilization/Cash out | (6,935) | (8,221) |
Reclassifications | 90 | (143) |
Translation difference | (11) | (194) |
Closing balance | 16,008 | 9,879 |
Restructuring [member] | ||
Disclosure Of Changes In Provisions [line items] | ||
Opening balance | 4,043 | 4,163 |
Additions | 3,539 | 5,448 |
Reversal of excess amounts | (408) | (207) |
Utilization/Cash out | (4,148) | (5,327) |
Reclassifications | 120 | 1 |
Translation difference | 163 | (35) |
Closing balance | 3,309 | 4,043 |
Customer Related Provision [member] | ||
Disclosure Of Changes In Provisions [line items] | ||
Opening balance | 2,642 | 74 |
Additions | 8,532 | 4,105 |
Reversal of excess amounts | (236) | |
Utilization/Cash out | (1,979) | (1,532) |
Reclassifications | (10) | |
Translation difference | (43) | 5 |
Closing balance | 8,916 | 2,642 |
Suppliers Related Provision [member] | ||
Disclosure Of Changes In Provisions [line items] | ||
Opening balance | 1,613 | 134 |
Additions | 214 | 1,885 |
Reversal of excess amounts | (15) | (90) |
Utilization/Cash out | (264) | (262) |
Reclassifications | 10 | (50) |
Translation difference | 1 | (4) |
Closing balance | 1,559 | 1,613 |
Warranty [member] | ||
Disclosure Of Changes In Provisions [line items] | ||
Opening balance | 158 | 211 |
Additions | 401 | 242 |
Reversal of excess amounts | (20) | (2) |
Utilization/Cash out | (257) | (267) |
Reclassifications | 72 | (25) |
Translation difference | 9 | (1) |
Closing balance | 363 | 158 |
Other [member] | ||
Disclosure Of Changes In Provisions [line items] | ||
Opening balance | 1,423 | 1,738 |
Additions | 1,024 | 799 |
Reversal of excess amounts | (46) | (63) |
Utilization/Cash out | (287) | (833) |
Reclassifications | (112) | (59) |
Translation difference | (141) | (159) |
Closing balance | kr 1,861 | kr 1,423 |
Provisions - Additional Informa
Provisions - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Provisions [line items] | |||
Additional provisions | kr 13,710 | kr 12,479 | |
Reversal of excess amounts | (725) | (362) | |
Actual cash outlays | 6,935 | 8,221 | |
Estimated cash outlays | 6,000 | ||
Non-current provisions | 5,471 | 3,596 | kr 946 |
Total provisions | 16,008 | 9,879 | 6,320 |
Restructuring [member] | |||
Disclosure of Provisions [line items] | |||
Additional provisions | 3,539 | 5,448 | |
Reversal of excess amounts | (408) | (207) | |
Actual cash outlays | 4,148 | 5,327 | |
Estimated cash outlays | 3,000 | ||
Total provisions | 3,309 | 4,043 | 4,163 |
Customer Related Provision [member] | |||
Disclosure of Provisions [line items] | |||
Additional provisions | 8,532 | 4,105 | |
Reversal of excess amounts | (236) | ||
Actual cash outlays | 1,979 | 1,532 | |
Total provisions | 8,916 | 2,642 | 74 |
Suppliers Related Provision [member] | |||
Disclosure of Provisions [line items] | |||
Additional provisions | 214 | 1,885 | |
Reversal of excess amounts | (15) | (90) | |
Actual cash outlays | 264 | 262 | |
Estimated cash outlays | 200 | ||
Total provisions | 1,559 | 1,613 | 134 |
Warranty [member] | |||
Disclosure of Provisions [line items] | |||
Additional provisions | 401 | 242 | |
Reversal of excess amounts | (20) | (2) | |
Actual cash outlays | 257 | 267 | |
Estimated cash outlays | 200 | ||
Total provisions | 363 | 158 | 211 |
Other [member] | |||
Disclosure of Provisions [line items] | |||
Additional provisions | 1,024 | 799 | |
Reversal of excess amounts | (46) | (63) | |
Actual cash outlays | 287 | 833 | |
Estimated cash outlays | 700 | ||
Total provisions | 1,861 | kr 1,423 | kr 1,738 |
2019 [member] | |||
Disclosure of Provisions [line items] | |||
Estimated cash outlays | 10,000 | ||
2019 [member] | Restructuring [member] | |||
Disclosure of Provisions [line items] | |||
Estimated cash outlays | 2,100 | ||
2019 [member] | Customer Related Provision [member] | |||
Disclosure of Provisions [line items] | |||
Estimated cash outlays | 6,000 | ||
2019 [member] | Customer Related Provision [member] | Revised Business Support System Strategy [member] | |||
Disclosure of Provisions [line items] | |||
Additional provisions | 5,900 | ||
2019 [member] | Customer Related Provision [member] | Restructuring [member] | |||
Disclosure of Provisions [line items] | |||
Additional provisions | 3,100 | ||
2019 [member] | Suppliers Related Provision [member] | |||
Disclosure of Provisions [line items] | |||
Estimated cash outlays | 900 | ||
2019 [member] | Warranty [member] | |||
Disclosure of Provisions [line items] | |||
Estimated cash outlays | 300 | ||
2019 [member] | Other [member] | |||
Disclosure of Provisions [line items] | |||
Estimated cash outlays | kr 600 |
Contingent liabilities - Summar
Contingent liabilities - Summary of Contingent Liabilities (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of contingent liabilities [abstract] | ||
Contingent liabilities | kr 1,638 | kr 1,561 |
Total | kr 1,638 | kr 1,561 |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) kr in Millions, $ in Millions | Dec. 31, 2018SEK (kr) | Dec. 31, 2018USD ($) | Dec. 31, 2017SEK (kr) |
Contingent liability for guarantees [member] | |||
Disclosure of Contingent Liabilities [Line Items] | |||
Guarantees of loans to other companies | kr 26 | kr 24 | |
Financial guarantee for third parties | kr 42 | kr 80 | |
Eastern District of Texas [member] | |||
Disclosure of Contingent Liabilities [Line Items] | |||
Amount of damage in one lawsuits | $ | $ 43 | ||
Number of patents infringed | 10 | 10 |
Assets Pledged as Collateral -
Assets Pledged as Collateral - Summary of Assets Pledged as Collateral (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure assets pledged as collateral [abstract] | ||
Chattel mortgages | kr 5,328 | kr 4,740 |
Bank deposits | 353 | 475 |
Total | kr 5,681 | kr 5,215 |
Contractual Obligations - Summa
Contractual Obligations - Summary of Contractual Obligations (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Disclosure of Contractual Obligations [line items] | |||||
Other non-current liabilities | kr 4,346 | kr 2,776 | kr 2,621 | ||
Trade payables | 29,883 | kr 26,320 | kr 26,320 | kr 25,844 | kr 22,389 |
Contractual obligations [member] | |||||
Disclosure of Contractual Obligations [line items] | |||||
Current and non-current debt | 34,100 | ||||
Operating leases | 13,400 | ||||
Other non-current liabilities | 4,300 | ||||
Purchase obligations | 7,700 | ||||
Trade payables | 29,900 | ||||
Commitments for customer finance | 30,300 | ||||
Total | 119,700 | ||||
Contractual obligations [member] | 2019 [member] | |||||
Disclosure of Contractual Obligations [line items] | |||||
Current and non-current debt | 2,300 | ||||
Operating leases | 3,100 | ||||
Other non-current liabilities | 400 | ||||
Purchase obligations | 5,700 | ||||
Trade payables | 29,900 | ||||
Commitments for customer finance | 30,300 | ||||
Total | 71,700 | ||||
Contractual obligations [member] | Maturity between 1 and 3 years [member] | |||||
Disclosure of Contractual Obligations [line items] | |||||
Current and non-current debt | 14,000 | ||||
Operating leases | 4,800 | ||||
Other non-current liabilities | 2,500 | ||||
Purchase obligations | 1,900 | ||||
Total | 23,200 | ||||
Contractual obligations [member] | Maturity between 3 and 5 years [member] | |||||
Disclosure of Contractual Obligations [line items] | |||||
Current and non-current debt | 11,200 | ||||
Operating leases | 2,300 | ||||
Other non-current liabilities | 100 | ||||
Purchase obligations | 100 | ||||
Total | 13,700 | ||||
Contractual obligations [member] | 2024 and later [member] | |||||
Disclosure of Contractual Obligations [line items] | |||||
Current and non-current debt | 6,600 | ||||
Operating leases | 3,200 | ||||
Other non-current liabilities | 1,300 | ||||
Total | kr 11,100 |
Equity and Other Comprehensive
Equity and Other Comprehensive Income (Loss) - Summary of Capital Stock (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Disclosure of classes of share capital [line items] | ||||
Number of shares | 3,334,151,735 | 3,334,151,735 | ||
Capital stock | kr 87,770 | kr 97,571 | kr 135,257 | kr 143,013 |
Class A shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 261,755,983 | |||
Class B shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 3,072,395,752 | |||
Capital stock [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Capital stock | kr 16,672 | kr 16,672 | kr 16,657 | |
Capital stock [member] | Class A shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Capital stock | 1,309 | |||
Capital stock [member] | Class B shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Capital stock | kr 15,363 |
Equity and Other Comprehensiv_2
Equity and Other Comprehensive Income (Loss) - Additional Information (Detail) - kr / shares | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of classes of share capital [line items] | |||||
Dividend proposed | kr 1 | kr 1 | kr 3.70 | kr 3.40 | |
Major ordinary share transactions [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Dividend proposed | kr 1 | ||||
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 | 37,057,039 | 50,265,499 | 62,192,390 |
Equity and Other Comprehensiv_3
Equity and Other Comprehensive Income (Loss) - Summary of Reconciliation of Number of Shares (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Reconciliation of number of shares outstanding [line items] | ||||
Number of shares | 3,334,151,735 | 3,334,151,735 | ||
Equity | kr 87,770 | kr 97,571 | kr 135,257 | kr 143,013 |
Capital stock [member] | ||||
Reconciliation of number of shares outstanding [line items] | ||||
Equity | kr 16,672 | kr 16,672 | kr 16,657 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net assets acquired | |||
Goodwill | kr 30,035 | kr 27,815 | kr 43,387 |
Acquisitions 2016-2018 [member] | |||
Disclosure of consideration transferred business combinations [line items] | |||
Total consideration, including cash | 1,314 | 62 | 920 |
Net assets acquired | |||
Cash and cash equivalents | 94 | 139 | |
Property, plant and equipment | 4 | 12 | 19 |
Intangible assets | 481 | 101 | 817 |
Investments in associates | 64 | ||
Other assets | 254 | 1 | 290 |
Other liabilities | (494) | 25 | (290) |
Total identifiable net assets | 403 | 139 | 975 |
Goodwill | 911 | (77) | (55) |
Total | 1,314 | 62 | 920 |
Acquisition-related costs | kr 24 | kr 49 | kr 4 |
Business Combinations - Summa_2
Business Combinations - Summary of Net Assets Acquired and Total Consideration Transferred Business Combinations (Parenthetical) (Detail) - Acquisitions 2016-2018 [member] - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of consideration transferred business combinations [line items] | ||
Goodwill acquired | kr 911 | kr 0 |
Reclassification from purchase price allocation | kr 0 | kr (77) |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) kr in Millions | 12 Months Ended | ||||||
Dec. 31, 2018SEK (kr)Employees | Dec. 31, 2017SEK (kr)Employees | Dec. 31, 2016SEK (kr) | Sep. 14, 2018Employees | Jun. 30, 2018 | Apr. 04, 2018 | Feb. 13, 2018 | |
Disclosure of detailed information about business combination [line items] | |||||||
Cash flow effect pursuant to business combinations | kr | kr 226 | kr 459 | |||||
Number of employees | Employees | 95,359 | 100,735 | |||||
Divestments 2016-2018 [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Cash flow effect pursuant to business combinations | kr | kr 226 | kr 459 | kr 25 | ||||
Divestments 2016-2018 [member] | Ericsson Local Services AB [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Number of employees | Employees | 700 | ||||||
Divestments 2016-2018 [member] | Excellence Field Factory [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Number of service engineers | 600 | ||||||
CENX [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Business acquisition, ownership percentage | 100.00% | ||||||
Number of employees | Employees | 185 | ||||||
Acquisitions 2016-2018 [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Cash flow effect pursuant to business combinations | kr | kr 1,220 | kr 62 | |||||
Vidscale [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Business acquisition, ownership percentage | 100.00% | ||||||
Placecast [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Business acquisition, ownership percentage | 100.00% |
Business Combinations - Summa_3
Business Combinations - Summary of Divestments Transactions (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net assets disposed of | |||
Goodwill | kr (30,035) | kr (27,815) | kr (43,387) |
Cash flow effect | 226 | 459 | |
Divestments 2016-2018 [member] | |||
Disclosure Of Divestitures [line items] | |||
Proceeds | 226 | 459 | 25 |
Net assets disposed of | |||
Property, plant and equipment | 55 | 62 | 36 |
Investments in joint ventures and associated companies | 114 | 15 | |
Intangible assets | 30 | ||
Goodwill | 45 | ||
Other assets | 809 | 219 | 5 |
Provisions, incl. post-employement benefits | (43) | ||
Other liabilities | (571) | (180) | (114) |
Total net assets | 394 | 146 | (58) |
Net gains/losses from divestments | (168) | 313 | 83 |
Cash flow effect | kr 226 | kr 459 | kr 25 |
Business Combinations - Summa_4
Business Combinations - Summary of Business Acquisitions Transactions (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
CENX [member] | |
Disclosure of business divestitures [line items] | |
Company | CENX |
Description | A US based service assurance technology company. |
Transaction date | Sep. 30, 2018 |
Vidscale [member] | |
Disclosure of business divestitures [line items] | |
Company | Vidscale |
Description | A US company providing cloud-based Content Delivery Network (CDN) solutions. |
Transaction date | Mar. 31, 2018 |
Placecast [member] | |
Disclosure of business divestitures [line items] | |
Company | Placecast |
Description | A US company that leverages deterministic carrier data to deliver better audience, verification, and insight solutions. |
Transaction date | Feb. 28, 2018 |
Nodeprime [member] | |
Disclosure of business divestitures [line items] | |
Company | Nodeprime |
Description | A US based software development company with an infrastructure management platform. |
Transaction date | Apr. 30, 2016 |
Ericpol [member] | |
Disclosure of business divestitures [line items] | |
Company | Ericpol |
Description | A software development company in Poland within telecommunications. |
Transaction date | Apr. 30, 2016 |
FYI Television [member] | |
Disclosure of business divestitures [line items] | |
Company | FYI Television |
Description | A US based premier entertainment metadata and rich media content supplier. |
Transaction date | Jan. 31, 2016 |
Business Combinations - Summa_5
Business Combinations - Summary of Business Divestments Transactions (Detail) - Divestments 2016-2018 [member] | 12 Months Ended |
Dec. 31, 2018 | |
Ericsson Local Services AB [member] | |
Disclosure of business divestitures [line items] | |
Divestments, Company | Ericsson Local Services AB |
Divestments, Description | A divestment of the Local Services company in Sweden. |
Business Divestments, transaction date | Aug 31, 2018 |
Excellence Field Factory [member] | |
Disclosure of business divestitures [line items] | |
Divestments, Company | (LSS) Excellence Field Factory |
Divestments, Description | A divestment of the Spanish fiber service operations. |
Business Divestments, transaction date | Jun 30, 2018 |
Power Modules [member] | |
Disclosure of business divestitures [line items] | |
Divestments, Company | Power Modules |
Divestments, Description | A divestment of the power modules business. |
Business Divestments, transaction date | Sep 30, 2017 |
Birla Ericsson Optical Ltd [member] | |
Disclosure of business divestitures [line items] | |
Divestments, Company | Birla Ericssion Optical Ltd |
Divestments, Description | A divestment of the shares in the associated company. |
Business Divestments, transaction date | Jul 31, 2016 |
Associated Companies - Equity i
Associated Companies - Equity in Associated Companies (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Investments Accounted For Using Equity Method [line items] | |||
Equity in joint ventures and associated companies,Opening balance | kr 624 | kr 775 | |
Dividends | (3,425) | (3,424) | kr (12,263) |
Equity in joint ventures and associated companies,Closing balance | 611 | 624 | 775 |
Associates [member] | |||
Disclosure Of Investments Accounted For Using Equity Method [line items] | |||
Equity in joint ventures and associated companies,Opening balance | 624 | 775 | |
Investments | 64 | ||
Share in earnings | 58 | 24 | |
Distribution of capital stock | (95) | ||
Taxes | (5) | (3) | |
Dividends | (30) | (77) | |
Divested business | (114) | ||
Translation difference | 14 | ||
Equity in joint ventures and associated companies,Closing balance | kr 611 | kr 624 | kr 775 |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) € in Millions | 12 Months Ended | |||
Dec. 31, 2018SEK (kr)RiskRating | Dec. 31, 2017SEK (kr) | Dec. 31, 2016SEK (kr) | May 31, 2018EUR (€) | |
Disclosure of Financial Risk Management [Line Items] | ||||
Percentage of equity ratio above | 40.00% | |||
Percentage of Currency Hedged | 84.00% | |||
Cash position | kr 35,900,000,000 | kr 34,700,000,000 | ||
Cash, cash equivalents and interest-bearing securities | 69,000,000,000 | 67,700,000,000 | ||
Interest-bearing liabilities | kr 33,125,000,000 | 33,045,000,000 | ||
Description of Sensitivity analysis | The Company uses the 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 1-day time horizon. | |||
Percentage of probability level | 99.00% | |||
Maximum foreign exchange positions | kr 45,000,000 | |||
Percentage of risk at confidence level | 99.00% | |||
Average of value at risk calculated | kr 12,800,000 | 17,200,000 | ||
Sensitivity to interest rate increase of 1 basis point | kr 1,000,000 | |||
Number of risk categories | RiskRating | 3 | |||
Trade receivables and contract assets | kr 64,350,000,000 | 61,225,000,000 | ||
Provisions for expected credit losses on trade receivables and contract assets | 4,123,000,000 | |||
Receivables write-offs | 890,000,000 | |||
Receivables subject to enforcement | kr 61,000,000 | |||
Information about major customers | The 10 largest customers represented 53% (47%) of the total trade receivables and contract assets in 2018. | |||
Provisions for expected losses | 3,335,000,000 | kr 1,403,000,000 | ||
Customer finance credits | kr 4,247,000,000 | 4,223,000,000 | ||
Carrying value of assets | 2,884,000,000 | 3,931,000,000 | ||
Total customer finance arrangements | kr 94 | kr 79 | ||
Aggregate percentage of customer finance exposure | 62.00% | 64.00% | ||
Unutilized customer finance commitments | kr 30,270,000,000 | kr 9,706,000,000 | ||
fair value revaluations for customer finance | 1,073,000,000 | 59,000,000 | ||
Customer finance credit realized losses | 1,073,000,000 | 24,000,000 | ||
Repurchase of Financial assets | 207,000,000 | kr 380,000,000 | ||
Financial assets transferred continuing involvement | 0 | |||
Financial Assets And Liabilities recognized continuing involvement | 0 | |||
Financial investments | kr 267,000,000 | |||
European Investment Bank [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Multicurrency credit facility agreement equivalent | € | € 250 | |||
Sweden, Kronor [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
SEK exchange rate | 0.25 SEK/USD | |||
Foreign exchange rate | 0.25 | |||
Exchange rate would impact financial expense | kr 175,000,000 | |||
Realization of loan amount | (400,000,000) | |||
Revaluation of loan amount | (200,000,000) | |||
Level 3 of fair value hierarchy [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Financial investments | 2,500,000,000 | 2,100,000,000 | ||
ISDA agreements [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Assets | 500,000,000 | 1,400,000,000 | ||
Offsetting financial assets | 100,000,000 | 100,000,000 | ||
Net asset | 400,000,000 | 1,300,000,000 | ||
Liabilities | 1,000,000,000 | 1,000,000,000 | ||
Offsetting financial liabilities | 100,000,000 | 100,000,000 | ||
Net liabilities | kr 900,000,000 | kr 900,000,000 | ||
Middle East and Africa [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Percentage of customer finance outstanding exposure | 57.00% | 56.00% | ||
South East Asia, Oceania and India [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Percentage of customer finance outstanding exposure | 15.00% | 24.00% | ||
Longer than 1 year [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Interest-bearing securities, current | kr 100,000,000 | kr 5,000,000,000 | ||
Derivatives [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Credit exposure | 400,000,000 | 1,300,000,000 | ||
OTC derivatives [member] | Level 2 [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Assets | 500,000,000 | 1,400,000,000 | ||
Liabilities | kr 1,000,000,000 | kr 1,100,000,000 | ||
Trade receivables [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Concentrations of risk | 53.00% | |||
Contract assets [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Concentrations of risk | 47.00% | |||
Interest Bearing Assets [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Sensitivity to interest rate increase of 1 basis point | kr (7,000,000) | |||
Interest bearing liabilities [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Sensitivity to interest rate increase of 1 basis point | kr 7,000,000 | |||
Exchange rate risk [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Description of objectives, policies and processes for managing risk | In order to limit the exposure toward exchange rate fluctuations on future revenues and costs, committed and forecasted future sales and purchases in major currencies are hedged with 7% of 12-month forecast monthly. By this, the Company will have hedged 84% of the next month and 7% of the 12th month of an average forecast of the individual month at any given reporting date. This corresponds to approximately 5-6 months of an average forecast. | |||
Bottom of range [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Average forecast hedged period | 5 months | |||
Top of range [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Average forecast hedged period | 6 months | |||
Top of range [member] | Interest Bearing Assets [member] | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Sensitivity to interest rate increase of 1 basis point | kr 10,000,000 | |||
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 1,810,000 |
Financial Risk Management - Sch
Financial Risk Management - Schedule of Capital Objectives-Related Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 | |
Disclosure Of Capital Objectives Related Information [line items] | ||||
Capital | kr 87,770 | kr 97,571 | kr 135,257 | kr 143,013 |
Equity ratio | 32.70% | 37.50% | ||
Free cash flow | kr 3,000 | kr 5,100 | ||
Positive net cash | 35,900 | 34,700 | ||
Post-employment benefits | kr 28,720 | kr 25,009 | kr 23,723 | |
Moodys [member] | ||||
Disclosure Of Capital Objectives Related Information [line items] | ||||
Moody's | Ba2, stable | Ba2, negative | ||
Standard and Poor's [member] | ||||
Disclosure Of Capital Objectives Related Information [line items] | ||||
Moody's | BB+, stable | BB+, 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, 2018SEK (kr) | |
USD [member] | |
Disclosure of Currency Exposure [line items] | |
Sales translation exposure | kr 59.9 |
Sales transaction exposure | 34 |
Sales net exposure | 93.9 |
Incurred cost transaction exposure | (3.8) |
Net transaction exposure | 30.2 |
EUR [member] | |
Disclosure of Currency Exposure [line items] | |
Sales translation exposure | 23.8 |
Sales transaction exposure | 12.2 |
Sales net exposure | 36 |
Incurred cost transaction exposure | (4.2) |
Net transaction exposure | 8 |
CNY [member] | |
Disclosure of Currency Exposure [line items] | |
Sales translation exposure | 12.4 |
Sales transaction exposure | 0 |
Sales net exposure | 12.4 |
Incurred cost transaction exposure | (7.7) |
Net transaction exposure | (7.7) |
INR [member] | |
Disclosure of Currency Exposure [line items] | |
Sales translation exposure | 8.9 |
Sales transaction exposure | (0.1) |
Sales net exposure | 8.8 |
Incurred cost transaction exposure | (1) |
Net transaction exposure | (1.1) |
AUD [member] | |
Disclosure of Currency Exposure [line items] | |
Sales translation exposure | 7.3 |
Sales transaction exposure | (0.4) |
Sales net exposure | 6.9 |
Incurred cost transaction exposure | 3.7 |
Net transaction exposure | 3.3 |
JPY [member] | |
Disclosure of Currency Exposure [line items] | |
Sales translation exposure | 6.8 |
Sales transaction exposure | 0 |
Sales net exposure | 6.8 |
Incurred cost transaction exposure | 4.4 |
Net transaction exposure | 4.4 |
BRL [member] | |
Disclosure of Currency Exposure [line items] | |
Sales translation exposure | 6.8 |
Sales transaction exposure | 0 |
Sales net exposure | 6.8 |
Incurred cost transaction exposure | 0.8 |
Net transaction exposure | 0.8 |
SAR [member] | |
Disclosure of Currency Exposure [line items] | |
Sales translation exposure | 5.3 |
Sales transaction exposure | 0.6 |
Sales net exposure | 5.9 |
Incurred cost transaction exposure | 2.1 |
Net transaction exposure | 2.7 |
GBP [member] | |
Disclosure of Currency Exposure [line items] | |
Sales translation exposure | 6.1 |
Sales transaction exposure | (1) |
Sales net exposure | 5.1 |
Incurred cost transaction exposure | 1.3 |
Net transaction exposure | kr 0.3 |
Financial Risk Management - S_2
Financial Risk Management - Summary of Sensitivity to Interest Rate Increase of One Basis Point (Detail) kr in Millions | 12 Months Ended |
Dec. 31, 2018SEK (kr) | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | kr 1 |
Interest Bearing Assets [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | (7) |
Interest bearing liabilities [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 7 |
Derivatives [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 1 |
Later than three months [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 0 |
Later than three months [member] | Interest Bearing Assets [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 0 |
Later than three months [member] | Interest bearing liabilities [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 0 |
Later than three months [member] | Derivatives [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 | 1 |
Maturity between 3 and 12 months [member] | Interest Bearing Assets [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | (3) |
Maturity between 3 and 12 months [member] | Interest bearing liabilities [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 2 |
Maturity between 3 and 12 months [member] | Derivatives [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 2 |
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 1 and 3 years [member] | Interest Bearing Assets [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] | Interest bearing liabilities [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] | Derivatives [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 | (3) |
Maturity between 3 and 5 years [member] | Interest Bearing Assets [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | (3) |
Maturity between 3 and 5 years [member] | Interest bearing liabilities [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 2 |
Maturity between 3 and 5 years [member] | Derivatives [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | (2) |
2024 and later [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 4 |
2024 and later [member] | Interest Bearing Assets [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | (1) |
2024 and later [member] | Interest bearing liabilities [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | 3 |
2024 and later [member] | Derivatives [member] | |
Disclosure of Financial Risk Management [Line Items] | |
Sensitivity to interest rate increase of 1 basis point | kr 2 |
Financial Risk Management - Dis
Financial Risk Management - Disclosure of Detailed Information about Currency Derivatives (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | kr 267 | |
Liability | 592 | |
Fair value hedges [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | kr 44 | |
Currency Derivatives [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 1,125 | |
Liability | 689 | |
Currency Derivatives [member] | Maturity within 3 months [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 226 | 130 |
Liability | 207 | 542 |
Currency Derivatives [member] | Maturity between 3 and 12 months [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 38 | 215 |
Liability | 46 | 147 |
Currency Derivatives [member] | Maturity between 1 and 3 years [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 25 | |
Liability | 145 | |
Currency Derivatives [member] | Maturity between 3 and 5 years [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 3 | 754 |
Liability | 194 | |
Interest rate derivatives [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 136 | 168 |
Liability | 295 | 237 |
Interest rate derivatives [member] | Maturity within 3 months [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 16 | 10 |
Liability | 32 | 35 |
Interest rate derivatives [member] | Maturity between 3 and 12 months [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 8 | 1 |
Liability | 15 | |
Interest rate derivatives [member] | Maturity between 1 and 3 years [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 10 | 34 |
Liability | 3 | 105 |
Interest rate derivatives [member] | Maturity between 3 and 5 years [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 44 | 83 |
Liability | 222 | 54 |
Interest rate derivatives [member] | 2024 and later [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Asset | 58 | 39 |
Liability | kr 23 | kr 43 |
Financial Risk Management - D_2
Financial Risk Management - Disclosure of Detailed Information about Currency Derivatives (Parenthetical) (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives [member] | ||
Disclosure of detailed information about currency and interest rate derivatives [line items] | ||
Non-current assets | kr 0 | kr 86 |
Financial Risk Management - S_3
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Trade and other receivables [abstract] | |||
Opening balance | kr 3,335 | ||
Adjustment due to IFRS 9 | 1,240 | ||
Opening balance, adjusted | 4,575 | ||
Losses recognized in profit or loss | 420 | kr 3,649 | kr 553 |
Write-offs | (890) | ||
Translation difference | 18 | ||
Closing balance | kr 4,123 | kr 3,335 |
Financial Risk Management - S_4
Financial Risk Management - Summary of Movements in Allowances for Impairment of Trade Receivables and Contract Assets (Parenthetical) (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and Other Receivables [line items] | ||
Contract assets | kr 4,123 | kr 3,335 |
Contract assets [member] | ||
Trade and Other Receivables [line items] | ||
Contract assets | kr 15 |
Financial Risk Management - S_5
Financial Risk Management - Summary of Aging Analysis of Gross Values by Risk Category (Detail) kr in Millions | Dec. 31, 2018SEK (kr) |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | kr 10,413 |
Country risk Low [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 2,374 |
Country risk medium [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 4,169 |
Country risk high [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 3,870 |
Maturity within 3 months [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 3,910 |
Maturity within 3 months [member] | Country risk Low [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 1,387 |
Maturity within 3 months [member] | Country risk medium [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 1,596 |
Maturity within 3 months [member] | Country risk high [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 927 |
Later than 3 months and not later than 6 months [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 1,504 |
Later than 3 months and not later than 6 months [member] | Country risk Low [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 350 |
Later than 3 months and not later than 6 months [member] | Country risk medium [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 540 |
Later than 3 months and not later than 6 months [member] | Country risk high [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 614 |
Later than 6 months and not later than 1 year [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 1,147 |
Later than 6 months and not later than 1 year [member] | Country risk Low [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 139 |
Later than 6 months and not later than 1 year [member] | Country risk medium [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 309 |
Later than 6 months and not later than 1 year [member] | Country risk high [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 699 |
Longer than 1 year [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 3,852 |
Longer than 1 year [member] | Country risk Low [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 498 |
Longer than 1 year [member] | Country risk medium [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | 1,724 |
Longer than 1 year [member] | Country risk high [member] | |
Disclosure of credit risk exposure [line items] | |
Aging analysis by risk category | kr 1,630 |
Financial Risk Management - S_6
Financial Risk Management - Summary of Movements in Allowances for Impairment of Trade Receivables and Contract (Detail) kr in Millions | 12 Months Ended |
Dec. 31, 2017SEK (kr) | |
Disclosure of impairment loss and reversal of impairment loss [abstract] | |
Opening balance | kr 1,403 |
Additions | 3,544 |
Utilized | (1,485) |
Reversal of excess amounts | (48) |
Reclassification | (66) |
Translation difference | (13) |
Closing balance | kr 3,335 |
Financial Risk Management - S_7
Financial Risk Management - Summary of Aging Analysis Impairment of Trade Receivables and Contract Assets (Detail) - SEK (kr) kr in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Trade receivables and contract assets, excluding associated companies and joint ventures | kr 64,502 | |
Allowances for impairment | (3,335) | kr (1,403) |
Of which neither impaired nor past due [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Trade receivables and contract assets, excluding associated companies and joint ventures | 54,474 | |
Of which impaired, not past due [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Trade receivables and contract assets, excluding associated companies and joint ventures | 15 | |
Allowances for impairment | (15) | |
Of which past due in the following time intervals less than 90 days [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Trade receivables and contract assets, excluding associated companies and joint ventures | 2,924 | |
Of which past due in the following time intervals 90 days or more [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Trade receivables and contract assets, excluding associated companies and joint ventures | 3,769 | |
Of which past due and impaired in the following time intervals less than 90 days [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Trade receivables and contract assets, excluding associated companies and joint ventures | 220 | |
Allowances for impairment | (220) | |
Of which past due and impaired in the following time intervals 90 days or more [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Trade receivables and contract assets, excluding associated companies and joint ventures | 3,100 | |
Allowances for impairment | kr (3,100) |
Financial Risk Management - S_8
Financial Risk Management - Summary of Outstanding Customer Finance Credit Exposure (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of outstanding customer finance [abstract] | ||
Fair value of customer finance credits | kr 2,883 | kr 3,931 |
Financial guarantees for third-parties | 42 | 77 |
Accrued interest | 21 | 14 |
Maximum exposure to credit risk | 2,946 | 4,022 |
Less third-party risk coverage | (331) | (505) |
The Company's risk exposure, less third-party risk coverage | kr 2,615 | kr 3,517 |
Financial Risk Management - D_3
Financial Risk Management - Disclosure of Customer Finance Fair Value Reconciliation (Detail) kr in Millions | 12 Months Ended |
Dec. 31, 2018SEK (kr) | |
Disclosure of customer finance reconciliation [abstract] | |
Opening balance | kr 3,931 |
Additions | 6,100 |
Disposals/repayments | (6,200) |
Revaluation | (1,073) |
Translation difference | 126 |
Closing balance | 2,884 |
Of which non-current | kr 1,180 |
Financial Risk Management - S_9
Financial Risk Management - Summary of Movements in Allowances for Impairment of Customer Finance (Detail) kr in Millions | 12 Months Ended |
Dec. 31, 2017SEK (kr) | |
Disclosure of outstanding customer finance [abstract] | |
Opening balance | kr 250 |
Additions | 85 |
Utilized | (3) |
Reversal of excess amounts | (27) |
Translation difference | (13) |
Closing balance | kr 292 |
Financial Risk Management - _10
Financial Risk Management - Summary of Aging Analysis of Customer Finance (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Outstanding Customer Finance [line items] | |||
Customer finance credits | kr 4,247 | kr 4,223 | |
Allowances for impairment | (292) | kr 250 | |
Of which neither impaired nor past due [member] | |||
Disclosure Of Outstanding Customer Finance [line items] | |||
Customer finance credits | 1,841 | ||
Of which impaired, not past due [member] | |||
Disclosure Of Outstanding Customer Finance [line items] | |||
Customer finance credits | 2,029 | ||
Allowances for impairment | (104) | ||
Of which past due in the following time intervals less than 90 days [member] | |||
Disclosure Of Outstanding Customer Finance [line items] | |||
Customer finance credits | 4 | ||
Of which past due in the following time intervals 90 days or more [member] | |||
Disclosure Of Outstanding Customer Finance [line items] | |||
Customer finance credits | 99 | ||
Of which past due and impaired in the following time intervals less than 90 days [member] | |||
Disclosure Of Outstanding Customer Finance [line items] | |||
Customer finance credits | 29 | ||
Allowances for impairment | (20) | ||
Of which past due and impaired in the following time intervals 90 days or more [member] | |||
Disclosure Of Outstanding Customer Finance [line items] | |||
Customer finance credits | 221 | ||
Allowances for impairment | kr (168) |
Financial Risk Management - _11
Financial Risk Management - Summary of Cash, Cash Equivalents and Interest-Bearing Securities (Detail) - SEK (kr) kr in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items] | ||
Banks | kr 32.6 | |
Type of issuer/counterpart Governments | 18.5 | |
Corporates | 2.2 | |
Mortgage institutes | 15.7 | |
2017/2018 | 69 | kr 67.7 |
Maturity within 3 months [member] | ||
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items] | ||
Banks | 32.2 | |
Type of issuer/counterpart Governments | 7.6 | |
Corporates | 2.2 | |
Mortgage institutes | 0 | |
2017/2018 | 42 | 36.4 |
Maturity between 3 and 12 months [member] | ||
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items] | ||
Banks | 0.4 | |
Type of issuer/counterpart Governments | 2.3 | |
Corporates | 0 | |
Mortgage institutes | 0.2 | |
2017/2018 | 2.9 | 1.2 |
Later than one year and not later than five years [member] | ||
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items] | ||
Banks | 0 | |
Type of issuer/counterpart Governments | 7.7 | |
Corporates | 0 | |
Mortgage institutes | 15.2 | |
2017/2018 | 22.9 | 28.4 |
2024 and later [member] | ||
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items] | ||
Banks | 0 | |
Type of issuer/counterpart Governments | 0.9 | |
Corporates | 0 | |
Mortgage institutes | 0.3 | |
2017/2018 | kr 1.2 | kr 1.7 |
Financial Risk Management - _12
Financial Risk Management - Summary of Funding Programs (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Euro Medium Term Note Program [member] | |
Disclosure of Funding Programs [Line Items] | |
Amount | $ 5,000 |
Utilized | 1,456 |
Unutilized | 3,544 |
SEC Registered Program [member] | |
Disclosure of Funding Programs [Line Items] | |
Utilized | $ 1,000 |
Financial Risk Management - _13
Financial Risk Management - Summary of Committed Credit Facilities (Detail) - 12 months ended Dec. 31, 2018 € in Millions, $ in Millions | EUR (€) | USD ($) |
Multi-currency revolving credit facility [member] | ||
Disclosure Of Line of Credit Facility [line items] | ||
Committed credit facilities, Amount | $ | $ 2,000 | |
Committed credit facilities, Utilized | $ | 0 | |
Committed credit facilities, Unutilized | $ | $ 2,000 | |
European Investment Bank credit facility [member] | ||
Disclosure Of Line of Credit Facility [line items] | ||
Committed credit facilities, Amount | € | € 250 | |
Committed credit facilities, Utilized | € | 0 | |
Committed credit facilities, Unutilized | € | € 250 |
Financial Risk Management - _14
Financial Risk Management - Summary of Financial Instruments, Book Value (Detail) - SEK (kr) kr in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Assets at fair value through profit or loss | kr 51.2 | kr 21.6 |
Assets at amortized cost | 4.6 | |
Loans and receivables | 60.5 | |
Assets at fair value through OCI | 51.2 | |
Available-for-sale | 26.7 | |
Financial liabilities at fair value through profit or loss | (31.6) | |
Financial liabilities at amortized cost | (32.3) | (59.3) |
Total | 43.1 | 49.5 |
Customer finance [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets at fair value through profit or loss | 2.9 | |
Loans and receivables | 3.9 | |
Total | 2.9 | 3.9 |
Trade receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Loans and receivables | 48.1 | |
Assets at fair value through OCI | 51.2 | |
Total | 51.2 | 48.1 |
Interest bearing securities, non-current [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets at fair value through profit or loss | 30.2 | 6.1 |
Assets at amortized cost | 0.4 | |
Loans and receivables | 0.3 | |
Available-for-sale | 25.4 | |
Total | 30.6 | 31.8 |
Cash equivalents [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets at fair value through profit or loss | 15.2 | 14.3 |
Assets at amortized cost | 4.2 | |
Loans and receivables | 3.2 | |
Total | 19.4 | 17.5 |
Borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at fair value through profit or loss | (30.7) | |
Financial liabilities at amortized cost | (2.4) | (33) |
Total | (33.1) | (33) |
Trade payables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at amortized cost | (29.9) | (26.3) |
Total | (29.9) | (26.3) |
Other financial assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets at fair value through profit or loss | 2.5 | 0.9 |
Loans and receivables | 5 | |
Available-for-sale | 1.3 | |
Total | 2.5 | 7.2 |
Other Current Receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets at fair value through profit or loss | 0.4 | 1.2 |
Total | 0.4 | 1.2 |
Other Current Liabilities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets at fair value through profit or loss | (0.9) | |
Financial liabilities at fair value through profit or loss | (0.9) | |
Total | kr (0.9) | kr (0.9) |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about finance income expense [line items] | |||
Finance income | kr (316) | kr (372) | kr (135) |
Finance expenses | 2,389 | 843 | 2,158 |
Contractual interest on financial assets [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance income | (461) | (86) | 12 |
Contractual interest on financial assets at fair value through profit or loss category [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance income | (927) | (92) | (316) |
Instruments at fair value through profit or loss [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance income | 225 | (231) | (68) |
Financial assets at fair value through other comprehensive income, category [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance income | (80) | ||
Available for sale [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance income | 40 | ||
Loans and receivables [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance income | (102) | (79) | |
Other financial income and expenses [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance income | 1 | 7 | |
Contractual interest on financial liabilities [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance expenses | 997 | 1,027 | 1,355 |
Financial liabilities at designated fair value through profit or loss, category [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance expenses | (530) | ||
Instruments at fair value through profit or loss [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance expenses | 817 | (543) | 729 |
Financial assets including hedge relationships at fair value through profit or loss category [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance expenses | (2) | (71) | |
Financial assets at fair value through profit or loss, designated upon initial recognition or subsequently, category [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance expenses | (2,087) | ||
Instruments at amortized cost [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance expenses | (72) | (218) | |
Other financial income and expenses [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Finance expenses | kr 575 | kr 431 | kr 292 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cost of sales [member] | |||
Disclosure of detailed information about finance income expense [line items] | |||
Net loss from derivatives hedging operating assets and liabilities | kr 128 | kr 451 | kr 234 |
Financial Assets, Non-current -
Financial Assets, Non-current - Summary of Financial Assets, Non-current (Detail) - Financial assets, non-current [member] - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other investment in shares and participations [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | kr 1,279 | |
Additions | 398 | |
Disposals/repayments/deductions | (92) | |
Revaluation | (72) | |
Translation difference | 2 | |
Financial assets, non-current, Closing balance | 1,515 | kr 1,279 |
Financial assets, non-current | 1,279 | |
Other investment in shares and participations [member] | Cost [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | 2,668 | 2,516 |
Additions | 146 | |
Disposals/repayments/deductions | (43) | |
Revaluation | 99 | |
Translation difference | (50) | |
Financial assets, non-current, Closing balance | 2,668 | |
Other investment in shares and participations [member] | Accumulated impairment losses [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | (1,389) | (1,337) |
Impairment losses/allowances | (126) | |
Disposals/repayments/deductions | 25 | |
Translation difference | 49 | |
Financial assets, non-current, Closing balance | (1,389) | |
Interest bearing securities, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | 25,105 | |
Additions | 50,190 | |
Disposals/repayments/deductions | (51,353) | |
Revaluation | 40 | |
Financial assets, non-current, Closing balance | 23,982 | 25,105 |
Financial assets, non-current | 25,105 | |
Interest bearing securities, non-current [member] | Cost [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | 25,105 | 7,586 |
Additions | 54,687 | |
Disposals/repayments/deductions | (37,241) | |
Revaluation | 73 | |
Financial assets, non-current, Closing balance | 25,105 | |
Derivatives, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | 86 | |
Disposals/repayments/deductions | (86) | |
Financial assets, non-current, Closing balance | 86 | |
Financial assets, non-current | 86 | |
Derivatives, non-current [member] | Cost [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | 86 | |
Additions | 86 | |
Financial assets, non-current, Closing balance | 86 | |
Other financial assets, non-current [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | 5,811 | |
Additions | 632 | |
Disposals/repayments/deductions | (210) | |
Change in value in funded pension plans | 492 | |
Revaluation | (3) | |
Reclassification | (213) | |
Translation difference | 50 | |
Financial assets, non-current, Closing balance | 6,559 | 5,811 |
Financial assets, non-current | 5,811 | |
Other financial assets, non-current [member] | Cost [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | 5,934 | 4,648 |
Additions | 503 | |
Disposals/repayments/deductions | (375) | |
Change in value in funded pension plans | 1,300 | |
Revaluation | 27 | |
Translation difference | (169) | |
Financial assets, non-current, Closing balance | 5,934 | |
Other financial assets, non-current [member] | Accumulated impairment losses [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets, non-current, Opening balance | kr (123) | (206) |
Impairment losses/allowances | (1) | |
Disposals/repayments/deductions | 77 | |
Translation difference | 7 | |
Financial assets, non-current, Closing balance | kr (123) |
Interest-Bearing Liabilities -
Interest-Bearing Liabilities - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Interest Bearing Liabilities [line items] | |||
Interest-bearing liabilities | kr 33,125 | kr 33,045 | |
Financing cash flow | kr (4,077) | kr 5,478 | kr (11,742) |
Weighted average interest rate of long term debt | 1.74% | 1.68% | |
Derivatives designated as hedges [member] | |||
Disclosure Of Interest Bearing Liabilities [line items] | |||
Financing cash flow | kr 75 | kr 201 |
Interest-Bearing Liabilities _2
Interest-Bearing Liabilities - Summary of Interest-Bearing Liabilities (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Borrowings, current | |||||
Current part of non-current borrowings | kr 72 | kr 89 | |||
Other borrowings, current | 2,183 | 2,456 | |||
Total borrowings, current | 2,255 | 2,545 | kr 8,033 | ||
Borrowings, non-current | |||||
Notes and bond loans | 21,875 | 20,560 | |||
Other borrowings, non-current | 8,995 | 9,940 | |||
Total borrowings, non-current | 30,870 | kr 30,531 | 30,500 | kr 18,653 | kr 22,744 |
Total interest-bearing liabilities | kr 33,125 | kr 33,045 |
Interest-Bearing Liabilities _3
Interest-Bearing Liabilities - Reconciliation of Liabilities Arising from Financing Activities (Detail) - SEK (kr) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of liabilities arising from financing activities [abstract] | ||
Opening balance | kr 33,045 | kr 26,686 |
Adjustment due to IFRS 9 | 31 | |
Adjusted opening balance | 33,076 | 26,686 |
Cash flows | ||
Proceeds from issuance of borrowings | 911 | 13,416 |
Repayment of borrowings | (1,748) | (4,830) |
Non-cash changes | ||
Effect of foreign exchange movement | 2,813 | (2,155) |
Revaluation due to changes in credit risk | (207) | |
Other changes in fair value | (28) | (72) |
Reclassification | (1,692) | |
Closing balance | kr 33,125 | kr 33,045 |
Interest-Bearing Liabilities _4
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, 2018SEK (kr) | Dec. 31, 2017SEK (kr) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | |
Notes and bond loans [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Book value | kr 21,875 | kr 20,560 | ||
Changes in fair value due to changes in credit risk | (106) | |||
Unrealized hedge gain/loss (included in book value) | 9 | |||
Cumulative changes in fair value due to changes in credit risk | kr 0 | |||
Notes and bond loans [Member] | December 23, 2020 [member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | $ | $ 170 | |||
Currency | USD | |||
Maturity date | Dec 23, 2020 | |||
Book value | kr 1,545 | 1,394 | ||
Changes in fair value due to changes in credit risk | (37) | |||
Cumulative changes in fair value due to changes in credit risk | kr 24 | |||
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 | |||
Book value | kr 8,776 | 8,180 | ||
Changes in fair value due to changes in credit risk | (68) | |||
Unrealized hedge gain/loss (included in book value) | 9 | |||
Cumulative changes in fair value due to changes in credit risk | kr 19 | |||
Notes and bond loans [Member] | March 1, 2021 [member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | € | € 500 | |||
Coupon | 0.875% | 0.875% | 0.875% | |
Currency | EUR | |||
Maturity date | Mar 1, 2021 | |||
Book value | kr 5,141 | 4,897 | ||
Changes in fair value due to changes in credit risk | 47 | |||
Unrealized hedge gain/loss (included in book value) | 7 | |||
Cumulative changes in fair value due to changes in credit risk | kr 13 | |||
Notes and bond loans [Member] | March 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 | |||
Book value | kr 5,087 | 4,862 | ||
Changes in fair value due to changes in credit risk | (35) | |||
Unrealized hedge gain/loss (included in book value) | (7) | |||
Cumulative changes in fair value due to changes in credit risk | kr (43) | |||
Notes and bond loans [Member] | December 22, 2025 [member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | $ | $ 150 | |||
Currency | USD | |||
Maturity date | Dec 22, 2025 | |||
Book value | kr 1,326 | 1,227 | ||
Changes in fair value due to changes in credit risk | (13) | |||
Cumulative changes in fair value due to changes in credit risk | (13) | |||
Bilateral loans [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Book value | 8,849 | 8,211 | ||
Changes in fair value due to changes in credit risk | (101) | |||
Cumulative changes in fair value due to changes in credit risk | kr (91) | |||
Bilateral loans [Member] | September 30, 2021 [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | $ | 98 | |||
Currency | USD | |||
Maturity date | Sep 30, 2021 | |||
Book value | kr 860 | 805 | ||
Changes in fair value due to changes in credit risk | (32) | |||
Cumulative changes in fair value due to changes in credit risk | kr (1) | |||
Bilateral loans [Member] | November 6, 2020 [Member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | $ | 684 | |||
Currency | USD | |||
Maturity date | Nov 6, 2020 | |||
Book value | kr 6,030 | 5,609 | ||
Changes in fair value due to changes in credit risk | (66) | |||
Cumulative changes in fair value due to changes in credit risk | kr (87) | |||
Bilateral loans [Member] | June 15, 2023 [member] | ||||
Disclosure of Borrowings [Line Items] | ||||
Nominal amount | $ | $ 220 | |||
Currency | USD | |||
Maturity date | Jun 15, 2023 | |||
Book value | kr 1,959 | kr 1,797 | ||
Changes in fair value due to changes in credit risk | (3) | |||
Cumulative changes in fair value due to changes in credit risk | kr (3) |
Post-Employment Benefits - Addi
Post-Employment Benefits - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of employee benefits [line items] | ||
Actuarial losses on defined benefit obligations | kr 261 | kr 2,110 |
Actuarial losses on defined benefit obligations | kr 3,016 | kr (2,438) |
Percentage Alecta's of collective funding ratio | 142.00% | 154.00% |
Percentage of company's share of Alecta's saving premiums | 0.40% | |
Percentage of maximum pension liability relation to PRI pensionsgaranti | 2.00% | |
Amount of pledged business mortgage | kr 5,100 | |
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 5.1 billion to PRI Pensionsgaranti. | |
Discount rate | 2.60% | 2.50% |
Alecta [member] | ||
Disclosure of employee benefits [line items] | ||
Percentage of total share of active members in Alecta | 1.90% | |
Expected contribution to Alectas plan | kr 74 | |
Sweden [member] | ||
Disclosure of employee benefits [line items] | ||
Discount rate | 1.50% | 1.60% |
Discount rates based upon Swedish covered bonds | 2.50% | 2.80% |
Decrease in defined benefit obligation resulting from discount rates based upon Swedish covered bonds | kr 9,500 | kr 9,100 |
Bottom of range [member] | ||
Disclosure of employee benefits [line items] | ||
Percentage of target ratio fair value plan assets | 140.00% | |
Ericsson Pensionsstiftelse [member] | ||
Disclosure of employee benefits [line items] | ||
Percentage of defined benefit plans | 49.00% | 53.00% |
Post-Employment Benefits - Summ
Post-Employment Benefits - Summary of Amount Recognized in the Consolidated Balance Sheet (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation (DBO) | kr 90,320 | kr 87,645 | |
Fair value of plan assets | 64,322 | 64,939 | |
Deficit/surplus (+/-) | 25,998 | 22,706 | |
Plans with net surplus, excluding asset ceiling | 2,722 | 2,303 | |
Provision for post-employment benefits | 28,720 | 25,009 | kr 23,723 |
Sweden [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation (DBO) | 44,845 | 41,166 | |
Fair value of plan assets | 21,912 | 21,938 | |
Deficit/surplus (+/-) | 22,933 | 19,228 | |
Provision for post-employment benefits | 22,933 | 19,228 | |
US [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation (DBO) | 21,059 | 21,005 | |
Fair value of plan assets | 19,899 | 20,402 | |
Deficit/surplus (+/-) | 1,160 | 603 | |
Plans with net surplus, excluding asset ceiling | 83 | ||
Provision for post-employment benefits | 1,160 | 686 | |
United Kingdom [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation (DBO) | 12,374 | 13,246 | |
Fair value of plan assets | 14,385 | 14,599 | |
Deficit/surplus (+/-) | (2,011) | (1,353) | |
Plans with net surplus, excluding asset ceiling | 2,246 | 1,685 | |
Provision for post-employment benefits | 235 | 332 | |
Other Countries [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation (DBO) | 12,042 | 12,228 | |
Fair value of plan assets | 8,126 | 8,000 | |
Deficit/surplus (+/-) | 3,916 | 4,228 | |
Plans with net surplus, excluding asset ceiling | 476 | 535 | |
Provision for post-employment benefits | kr 4,392 | kr 4,763 |
Post-Employment Benefits - Su_2
Post-Employment Benefits - Summary of Amount Recognized in the Consolidated Balance Sheet (Parenthetical) (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [abstract] | ||
Movements in effect of asset ceiling | kr 73 | |
Effect of asset ceiling | kr 381 | kr 454 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [line items] | |||
Pension cost for defined contribution plans | kr 2,725 | kr 2,970 | kr 3,220 |
Pension cost for defined benefit plans | 2,157 | 2,622 | 2,114 |
Total | kr 4,882 | kr 5,592 | kr 5,334 |
Total pension cost expressed as a percentage of wages and salaries | 9.20% | 9.50% | 8.90% |
Sweden [member] | |||
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [line items] | |||
Pension cost for defined contribution plans | kr 937 | kr 1,096 | kr 1,061 |
Pension cost for defined benefit plans | 1,350 | 1,824 | 1,314 |
Total | 2,287 | 2,920 | 2,375 |
US [member] | |||
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [line items] | |||
Pension cost for defined contribution plans | 473 | 473 | 687 |
Pension cost for defined benefit plans | 175 | 168 | 167 |
Total | 648 | 641 | 854 |
United Kingdom [member] | |||
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [line items] | |||
Pension cost for defined contribution plans | 145 | 173 | 185 |
Pension cost for defined benefit plans | 75 | 38 | 38 |
Total | 220 | 211 | 223 |
Other Countries [member] | |||
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [line items] | |||
Pension cost for defined contribution plans | 1,170 | 1,228 | 1,287 |
Pension cost for defined benefit plans | 557 | 592 | 595 |
Total | kr 1,727 | kr 1,820 | kr 1,882 |
Post-Employment Benefits - Su_4
Post-Employment Benefits - Summary of Change in the Net Defined Benefit Obligation (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Opening balance | kr 22,706 | kr 22,690 |
Included in the income statement | ||
Current service cost | 1,602 | 1,793 |
Past service cost and gains and losses on settlements | 100 | 296 |
Interest cost/income (+/-) | 284 | 306 |
Taxes and administrative expenses | 132 | 188 |
Other | (4) | (11) |
Components of defined benefit cost recognized | 2,114 | 2,572 |
Remeasurements | ||
Return on plan assets excluding amounts in interest expense/income | 3,016 | (2,438) |
Actuarial gains/losses (-/+) arising from changes in demographic assumptions | (124) | (396) |
Actuarial gains/losses (-/+) arising from changes in financial assumptions | 261 | 2,110 |
Experience-based gains/losses (-/+) | (613) | (219) |
Total remeasurements | 2,540 | (943) |
Translation difference | 276 | (12) |
Contributions and payments from: | ||
Employers | (1,497) | (1,463) |
Plan participants | 7 | 4 |
Settlements | (128) | (141) |
Business combinations and divestments | (20) | |
Closing balance | 25,998 | 22,706 |
Present value of defined benefit obligation [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Opening balance | 87,645 | 87,175 |
Included in the income statement | ||
Current service cost | 1,602 | 1,793 |
Past service cost and gains and losses on settlements | 100 | 296 |
Interest cost/income (+/-) | 2,196 | 2,198 |
Taxes and administrative expenses | 78 | 143 |
Other | (6) | (13) |
Components of defined benefit cost recognized | 3,970 | 4,417 |
Remeasurements | ||
Actuarial gains/losses (-/+) arising from changes in demographic assumptions | (124) | (396) |
Actuarial gains/losses (-/+) arising from changes in financial assumptions | 261 | 2,110 |
Experience-based gains/losses (-/+) | (613) | (219) |
Total remeasurements | (476) | 1,495 |
Translation difference | 2,659 | (2,275) |
Contributions and payments from: | ||
Employers | (984) | (880) |
Plan participants | 28 | 27 |
Benefit payments | (2,357) | (2,173) |
Settlements | (145) | (141) |
Business combinations and divestments | (20) | |
Closing balance | 90,320 | 87,645 |
Plan assets [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Opening balance | (64,939) | (64,485) |
Included in the income statement | ||
Interest cost/income (+/-) | (1,912) | (1,892) |
Taxes and administrative expenses | 54 | 45 |
Other | 2 | 2 |
Components of defined benefit cost recognized | (1,856) | (1,845) |
Remeasurements | ||
Return on plan assets excluding amounts in interest expense/income | 3,016 | (2,438) |
Total remeasurements | 3,016 | (2,438) |
Translation difference | (2,383) | 2,262 |
Contributions and payments from: | ||
Employers | (513) | (583) |
Plan participants | (21) | (23) |
Benefit payments | 2,357 | 2,173 |
Settlements | 17 | |
Closing balance | kr (64,322) | kr (64,939) |
Post-Employment Benefits - Su_5
Post-Employment Benefits - Summary of Change in the Net Defined Benefit Obligation (Parenthetical) (Detail) kr in Millions | 12 Months Ended | |
Dec. 31, 2018SEK (kr)yr | Dec. 31, 2017SEK (kr)yr | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Weighted average duration of DBO | yr | 20.3 | 20.1 |
Asset ceiling excluded from defined benefit cost recognized in income statement | kr 43 | kr 50 |
2019 [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Expected contribution to plans | kr 2,100 |
Post-Employment Benefits - Su_6
Post-Employment Benefits - Summary of Present Value of the Defined Benefit Obligation (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | kr 90,320 | kr 87,645 |
Of which partially or fully funded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | 86,883 | 83,695 |
Of which unfunded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | 3,437 | 3,950 |
Sweden [member] | ||
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | 44,845 | 41,166 |
Sweden [member] | Of which partially or fully funded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | 44,845 | 40,665 |
Sweden [member] | Of which unfunded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | 501 | |
US [member] | ||
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | 21,059 | 21,005 |
US [member] | Of which partially or fully funded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | 20,372 | 20,319 |
US [member] | Of which unfunded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | 687 | 686 |
United Kingdom [member] | ||
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | 12,374 | 13,246 |
United Kingdom [member] | Of which partially or fully funded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | 12,374 | 13,246 |
Other Countries [member] | ||
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | 12,042 | 12,228 |
Other Countries [member] | Of which partially or fully funded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | 9,292 | 9,465 |
Other Countries [member] | Of which unfunded [member] | ||
Changes In Present Value Of Defined Benefit Obligations [line items] | ||
Defined benefit obligation (DBO) | kr 2,750 | kr 2,763 |
Post-Employment Benefits - Su_7
Post-Employment Benefits - Summary of Asset Allocation by Asset Type and Geography (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | kr 3,024 | kr 4,428 |
Equity securities | 9,895 | 10,422 |
Debt securities | 40,866 | 39,138 |
Real estate | 4,611 | 4,725 |
Investment funds | 3,469 | 3,649 |
Assets held by insurance company | 1,289 | 1,200 |
Other | 1,168 | 1,377 |
Fair value of plan assets | kr 64,322 | kr 64,939 |
Investment funds [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 70.00% | 66.00% |
Sweden [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | kr 935 | kr 3,124 |
Equity securities | 4,434 | 4,079 |
Debt securities | 10,642 | 8,663 |
Real estate | 4,228 | 4,269 |
Investment funds | 1,673 | 1,803 |
Fair value of plan assets | 21,912 | 21,938 |
US [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | 585 | 382 |
Equity securities | 729 | 795 |
Debt securities | 17,329 | 17,650 |
Investment funds | 1,151 | 1,478 |
Other | 105 | 97 |
Fair value of plan assets | 19,899 | 20,402 |
United Kingdom [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | 1,416 | 834 |
Equity securities | 2,293 | 3,116 |
Debt securities | 9,410 | 9,331 |
Real estate | 154 | 244 |
Investment funds | 415 | 160 |
Other | 697 | 914 |
Fair value of plan assets | 14,385 | 14,599 |
Other Countries [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | 88 | 88 |
Equity securities | 2,439 | 2,432 |
Debt securities | 3,485 | 3,494 |
Real estate | 229 | 212 |
Investment funds | 230 | 208 |
Assets held by insurance company | 1,289 | 1,200 |
Other | 366 | 366 |
Fair value of plan assets | kr 8,126 | kr 8,000 |
Cash and cash equivalents [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 0.00% | 0.00% |
Equity securities [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 18.00% | 16.00% |
Debt securities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 23.00% | 68.00% |
Real estate [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 100.00% | 100.00% |
Assets held by insurance company [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 100.00% | 100.00% |
Other [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Percentage Of plan assets allocation of which unquoted | 33.00% | 41.00% |
Post-Employment Benefits - Su_8
Post-Employment Benefits - Summary of Financial and Demographic Actuarial Assumptions (Detail) - yr | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assumptions | ||
Discount rate, weighted average of total | 2.60% | 2.50% |
Demographic assumptions | ||
Life expectancy after age 65 in years, weighted average | 23 | 23 |
Sweden [member] | ||
Financial assumptions | ||
Discount rate, weighted average of total | 1.50% | 1.60% |
US [member] | ||
Financial assumptions | ||
Discount rate, weighted average of total | 4.30% | 3.70% |
United Kingdom [member] | ||
Financial assumptions | ||
Discount rate, weighted average of total | 3.00% | 2.60% |
Post-Employment Benefits - Su_9
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, 2018 | Dec. 31, 2017 | |
Disclosure of Remeasurement of Other Comprehensive Income Loss Related to Post Employment Benefits [abstract] | ||
Actuarial gains and losses (+/-) | kr (1,887) | kr 1,210 |
The effect of asset ceiling | 87 | 27 |
Swedish special payroll taxes | (653) | (267) |
Total | kr (2,453) | kr 970 |
Post-Employment Benefits - S_10
Post-Employment Benefits - Summary of Sensitivity Analysis of Significant Actuarial Assumptions (Detail) - Present value of defined benefit obligation [member] - SEK (kr) kr in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate, weighted average of total +0.5% | kr (8.3) | kr (8.1) |
Discount rate, weighted average of total -0.5% | 9.2 | 9.3 |
Sweden [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate, weighted average of total +0.5% | (5) | (4.5) |
Discount rate, weighted average of total -0.5% | 5.4 | 5.2 |
US [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate, weighted average of total +0.5% | (1) | (1.1) |
Discount rate, weighted average of total -0.5% | 1.1 | 1.2 |
United Kingdom [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate, weighted average of total +0.5% | (1.3) | (1.5) |
Discount rate, weighted average of total -0.5% | kr 1.5 | kr 1.8 |
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) | 12 Months Ended |
Dec. 31, 2018SEK (kr)shares | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | kr 12,179,500 |
Value at grant date of synthetic shares allocated | kr 6,244,089 |
Number of previously allocated synthetic shares outstanding | shares | 153,178 |
Net change in value of synthetic shares | kr 4,393,522 |
Committee fees | 2,675,000 |
Total fees paid in cash | 8,114,500 |
Total remuneration | kr 18,752,111 |
Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Number of synthetic shares | shares | 94,915 |
Board member [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | kr 12,179,500 |
Value at grant date of synthetic shares allocated | kr 6,244,089 |
Number of previously allocated synthetic shares outstanding | shares | 129,122 |
Net change in value of synthetic shares | kr 3,838,682 |
Committee fees | 2,675,000 |
Total fees paid in cash | 8,114,500 |
Total remuneration | kr 18,197,271 |
Board member [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Number of synthetic shares | shares | 94,915 |
Board member [member] | Ronnie Leten [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | kr 4,075,000 |
Portion of Board fee | 50.00% |
Value at grant date of synthetic shares allocated | kr 2,037,330 |
Net change in value of synthetic shares | 375,654 |
Committee fees | 375,000 |
Total fees paid in cash | 2,412,500 |
Total remuneration | kr 4,825,484 |
Board member [member] | Ronnie Leten [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Number of synthetic shares | shares | 30,969 |
Board member [member] | Helena Stjernholm [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | kr 990,000 |
Portion of Board fee | 50.00% |
Value at grant date of synthetic shares allocated | kr 494,909 |
Number of previously allocated synthetic shares outstanding | shares | 19,754 |
Net change in value of synthetic shares | kr 494,201 |
Committee fees | 175,000 |
Total fees paid in cash | 670,000 |
Total remuneration | kr 1,659,110 |
Board member [member] | Helena Stjernholm [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Number of synthetic shares | shares | 7,523 |
Board member [member] | Jacob Wallenberg [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | kr 990,000 |
Portion of Board fee | 75.00% |
Value at grant date of synthetic shares allocated | kr 742,396 |
Number of previously allocated synthetic shares outstanding | shares | 28,390 |
Net change in value of synthetic shares | kr 748,678 |
Committee fees | 175,000 |
Total fees paid in cash | 422,500 |
Total remuneration | kr 1,913,574 |
Board member [member] | Jacob Wallenberg [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Number of synthetic shares | shares | 11,285 |
Board member [member] | Jon Fredrik Baksaas [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | kr 990,000 |
Portion of Board fee | 75.00% |
Value at grant date of synthetic shares allocated | kr 742,396 |
Number of previously allocated synthetic shares outstanding | shares | 12,992 |
Net change in value of synthetic shares | kr 307,523 |
Committee fees | 200,000 |
Total fees paid in cash | 447,500 |
Total remuneration | kr 1,497,419 |
Board member [member] | Jon Fredrik Baksaas [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Number of synthetic shares | shares | 11,285 |
Board member [member] | Jan Carlson [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | kr 990,000 |
Portion of Board fee | 75.00% |
Value at grant date of synthetic shares allocated | kr 742,396 |
Number of previously allocated synthetic shares outstanding | shares | 12,992 |
Net change in value of synthetic shares | kr 307,523 |
Committee fees | 425,000 |
Total fees paid in cash | 672,500 |
Total remuneration | kr 1,722,419 |
Board member [member] | Jan Carlson [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Number of synthetic shares | shares | 11,285 |
Board member [member] | Nora Denzel [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | kr 990,000 |
Portion of Board fee | 25.00% |
Value at grant date of synthetic shares allocated | kr 247,422 |
Number of previously allocated synthetic shares outstanding | shares | 9,819 |
Net change in value of synthetic shares | kr 276,017 |
Committee fees | 425,000 |
Total fees paid in cash | 1,167,500 |
Total remuneration | kr 1,690,939 |
Board member [member] | Nora Denzel [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Number of synthetic shares | shares | 3,761 |
Board member [member] | Borje Ekholm [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Number of previously allocated synthetic shares outstanding | shares | 24,789 |
Net change in value of synthetic shares | kr 737,547 |
Total remuneration | 737,547 |
Board member [member] | Eric A. Elzvik [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | kr 990,000 |
Portion of Board fee | 25.00% |
Value at grant date of synthetic shares allocated | kr 247,422 |
Number of previously allocated synthetic shares outstanding | shares | 4,330 |
Net change in value of synthetic shares | kr 102,491 |
Committee fees | 350,000 |
Total fees paid in cash | 1,092,500 |
Total remuneration | kr 1,442,413 |
Board member [member] | Eric A. Elzvik [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Number of synthetic shares | shares | 3,761 |
Board member [member] | Kurt Jofs [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | kr 990,000 |
Portion of Board fee | 75.00% |
Value at grant date of synthetic shares allocated | kr 742,396 |
Net change in value of synthetic shares | 136,887 |
Committee fees | 350,000 |
Total fees paid in cash | 597,500 |
Total remuneration | kr 1,476,783 |
Board member [member] | Kurt Jofs [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Number of synthetic shares | shares | 11,285 |
Board member [member] | Kristin S. Rinne [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | kr 990,000 |
Portion of Board fee | 25.00% |
Value at grant date of synthetic shares allocated | kr 247,422 |
Number of previously allocated synthetic shares outstanding | shares | 16,056 |
Net change in value of synthetic shares | kr 352,161 |
Committee fees | 200,000 |
Total fees paid in cash | 447,500 |
Total remuneration | kr 1,047,083 |
Board member [member] | Kristin S. Rinne [member] | Synthetic shares [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Number of synthetic shares | shares | 3,761 |
Board member [member] | Torbjrn Nyman [member] | Deputy employee representatives [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | kr 31,500 |
Total fees paid in cash | 31,500 |
Total remuneration | 31,500 |
Board member [member] | Kjell-Ake Soting [member] | Employee representatives [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | 40,500 |
Total fees paid in cash | 40,500 |
Total remuneration | 40,500 |
Board member [member] | Roger Svensson [member] | Employee representatives [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | 48,000 |
Total fees paid in cash | 48,000 |
Total remuneration | 48,000 |
Board member [member] | Karin Aberg [member] | Employee representatives [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | 13,500 |
Total fees paid in cash | 13,500 |
Total remuneration | 13,500 |
Board member [member] | Per Holmberg [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | 1,500 |
Total fees paid in cash | 1,500 |
Total remuneration | 1,500 |
Board member [member] | Tomas Lundh [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | 7,500 |
Total fees paid in cash | 7,500 |
Total remuneration | 7,500 |
Board member [member] | Anders Ripa [member] | Deputy employee representatives [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | 21,000 |
Total fees paid in cash | 21,000 |
Total remuneration | 21,000 |
Board member [member] | Loredana Roslund [member] | Deputy employee representatives [member] | |
Disclosure of Information About Board Management and Employees [line items] | |
Board fees | 21,000 |
Total fees paid in cash | 21,000 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Information About Board Management And Employees [abstract] | |||||
Share price used to calculate value of synthetic shares | kr 77.92 | ||||
Dividend compensation per share included in value of synthetic shares | kr 1 | kr 1 | kr 3.70 | kr 3.40 | |
Social security charges | kr 4,176,652 |
Information Regarding Members_3
Information Regarding Members of the Board of Directors and Group Management - Additional Information (Detail) - SEK (kr) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Information About Board Management and Employees [line items] | |||
Board fee description | The Annual General Meeting 2018 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 880,722 | ||
Number of shares outstanding | 3,334,151,735 | 3,334,151,735 | |
Accounted debt | kr 19,765,326 | ||
Additional arrangement period | 36 months | ||
Severance pay amounting period | 18 months | ||
Top of range [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Description of individual fixed salary payable | 24 months | ||
The President and CEO [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Commitments for defined benefit based pensions including disability and survivor's pension | kr 56,000,000 | kr 45,700,000 | |
Other members of ELT [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Commitments related to ITP and early retirement | 45,200,000 | 37,000,000 | |
Commitment to disability and survivors pensions | 10,900,000 | kr 8,700,000 | |
Board and committee meeting attendance fee [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | 1,500 | ||
Chairman [member] | Board fees [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | 4,075,000 | ||
Chairman [member] | Committee fees [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | 200,000 | ||
Chairman [member] | Member of remuneration committee [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | 175,000 | ||
Other directors [member] | Board fees [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | 990,000 | ||
Chairman of audit committee [member] | Board fees [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | 350,000 | ||
Other non-employee members of audit committee [member] | Board fees [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | 250,000 | ||
Chairmen of the finance and remuneration committees [member] | Board fees [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | 200,000 | ||
Other non-employee members of finance and remuneration committees [member] | Board fees [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Fee and commission expense | kr 175,000 | ||
Class B shares [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Weighted average market price | kr 65.79 | kr 51.71 | |
Number of shares outstanding | 3,072,395,752 | ||
Synthetic shares [member] | |||
Disclosure of Information About Board Management and Employees [line items] | |||
Number of shares outstanding | 248,093 |
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 Leadership Team (ELT) (Detail) - SEK (kr) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Classes Of Employee Benefits Expense [line items] | |||
Pension costs | kr 2,157,000,000 | kr 2,622,000,000 | kr 2,114,000,000 |
Board of directors [member] | |||
Classes Of Employee Benefits Expense [line items] | |||
Salary | 102,919,999 | 122,514,816 | |
Termination benefits | 8,977,037 | 54,023,816 | |
Annual variable remuneration provision earned for the year | 26,041,833 | 7,331,278 | |
Long-term variable compensation provision | 34,900,547 | 15,959,966 | |
Pension costs | 39,666,567 | 39,120,708 | |
Other benefits | 12,209,752 | 17,630,092 | |
Social charges and taxes | 64,461,219 | 60,981,063 | |
Total | 289,176,954 | 317,561,739 | |
The President and CEO [member] | Board of directors [member] | |||
Classes Of Employee Benefits Expense [line items] | |||
Salary | 15,362,592 | 14,379,170 | |
Long-term variable compensation provision | 18,351,265 | 6,119,323 | |
Pension costs | 7,890,372 | 7,528,073 | |
Other benefits | 424,513 | 318,187 | |
Social charges and taxes | 13,205,431 | 8,894,255 | |
Total | 55,234,173 | 37,239,008 | |
Other members of executive team [member] | Board of directors [member] | |||
Classes Of Employee Benefits Expense [line items] | |||
Salary | 87,557,407 | 108,135,646 | |
Termination benefits | 8,977,037 | 54,023,816 | |
Annual variable remuneration provision earned for the year | 26,041,833 | 7,331,278 | |
Long-term variable compensation provision | 16,549,282 | 9,840,643 | |
Pension costs | 31,776,195 | 31,592,635 | |
Other benefits | 11,785,239 | 17,311,905 | |
Social charges and taxes | 51,255,788 | 52,086,808 | |
Total | kr 233,942,781 | kr 280,322,731 |
Share Based Compensation - Summ
Share Based Compensation - Summary of Maximum Outstanding Matching Rights (Detail) | Dec. 31, 2018shares |
Number of Class B shares [member] | Top of range [member] | Other members of executive team [member] | |
Disclosure of Maximum Outstanding Matching Rights [line items] | |
Stock Purchase Plans 2015-2016 Executive Performance Stock Plans 2015-2016 | 125,568 |
Share Based Compensation - Addi
Share Based Compensation - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2018SEK (kr)Employeekr / sharesshares | Dec. 31, 2017SEK (kr)Employeekr / sharesshares | Dec. 31, 2016kr / sharesshares | May 18, 2018kr / shares | Dec. 31, 2015 | |
Disclosure of Information About Board Management and Employees [line items] | |||||
Matching result percentage | 22.22% | ||||
Number of shares issued | 1,594,920 | ||||
Strike price | kr / shares | kr 80 | ||||
Percentage of performance share awards granted | 200.00% | ||||
Average price of share | kr / shares | kr 66.97 | ||||
Purchased call options [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Number of shares issued | 1,000,000 | ||||
Purchase of options shares | 2,000,000 | ||||
Purchase price | kr / shares | kr 0.49 | ||||
No compensation expenses recognized during the period | Seven-year period | ||||
Class B shares [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Per share value | kr / shares | kr 5 | ||||
Number of exercise and matching and vesting shares transferred | 33,000,000 | ||||
Percentage of shares outstanding | 1.00% | ||||
Number of shares outstanding | 3,297,000,000 | ||||
Number of treasury shares | 37,000,000 | ||||
Long-term variable compensation program [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Service period | 3 years | ||||
Fair value share price | kr / shares | kr 65.79 | kr 57.15 | |||
Liability arising from key contribution plan | kr | kr 668 | kr 511 | |||
Key contributor retention plan [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Matching share for each contribution share purchased | 1 | ||||
Key contributor retention plan [member] | Top of range [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Employees nominated | 10.00% | ||||
Executive Performance Stock Plan [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Percentage of employees offered participation | 0.50% | ||||
Executive Performance Stock Plan [member] | Bottom of range [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Number of performance matching shares to senior managers in addition to ordinary shares | 4 | ||||
Executive Performance Stock Plan [member] | Top of range [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Number of performance matching shares to senior managers in addition to ordinary shares | 6 | ||||
Long-term variable compensation program [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Number of shares issued | 3,000,000 | 3,000,000 | |||
Fair value | kr | kr 65.79 | kr 65.68 | |||
Share price | kr | kr 57.15 | ||||
Recognized service period | Over the service period of three years. | ||||
Long-term variable compensation program [member] | Performance share awards [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Vesting period | 3 years | ||||
Vesting description | Awards under LTV are granted to the participant, provided that certain performance conditions are met, to receive a number of shares, free of charge, following expiration of a three-year vesting period ("Performance Share Awards"). | ||||
Period of employement eligibility for awards | 3 years | ||||
Long-term variable compensation program [member] | Executive team [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Number of shares issued | 800,000 | 700,000 | |||
Per share value | kr / shares | kr 79.70 | ||||
Vesting level percentage | 200.00% | ||||
Increase in number of shares | 400,000 | ||||
Total number of shares | 1,200,000 | ||||
Share price | kr | kr 62.93 | ||||
Stock Purchase plan 2016 [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Description of type of plan | If the contribution shares are retained by the employee for three years after the investment and their employment with the Ericsson Group continues during that time, then the employee's shares will be matched with a corresponding number of Ericsson B sshares or ADSs free of consideration. Employees in 100 countries participate in the plans. | ||||
Stock purchase plan contribution period | 12 months | ||||
Employee retained contribution shares after investment, Period | 3 years | ||||
Number of countries participated in stock purchase plan | 100 | ||||
Stock Purchase plan 2016 [member] | Top of range [member] | Employees [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Gross fixed salary | 7.50% | ||||
Executive performance plan [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Service period | 3 years | ||||
The President and CEO [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Number of matching shares received by serving employees | 0 | ||||
The President and CEO [member] | Performance share awards [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Percentage value of awards on annual base salary | 180.00% | ||||
Other members of executive team [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Number of matching shares received by serving employees | 67,987 | ||||
Members of executive team [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Total employees | Employee | 14 | 16 | |||
Other participants [member] | Performance share awards [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Percentage value of awards on annual base salary | 22.50% | ||||
Other participants [member] | Bottom of range [member] | Performance share awards [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Percentage value of awards on annual base salary | 30.00% | ||||
Other participants [member] | Top of range [member] | Performance share awards [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Percentage value of awards on annual base salary | 70.00% | ||||
Senior Managers [member] | Employee stock purchase plan [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Vesting period | 3 years | ||||
Number of employees who selected for plan | 182 | 500 | |||
Number of employees nominated for plan | 170 | 452 | |||
Number of awards | Two award levels at 15% and 22.5% of the participants' annual gross salary. | ||||
Retention of key employees [member] | Key contributor plan [member] | |||||
Disclosure of Information About Board Management and Employees [line items] | |||||
Number of employees who selected for plan | 6,037 | 7,000 | |||
Number of employees nominated for plan | 5,886 | 6,876 | |||
Number of awards | Two award levels at 10% and 25% of the participants’ annual gross salary | ||||
Employee retention period | 3 years |
Share Based Compensation - Su_2
Share Based Compensation - Summary of Performance Criteria (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Criteria | Range (SEK billion): 4.6-9.6 | |
Weight | 50.00% | |
Absolute TSR [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Criteria | Range: 6%-14% | Range: 6%-14% |
Weight | 30.00% | 50.00% |
Relative TSR [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Criteria | Ranking of Ericsson: 7-2 | Ranking of Ericsson: 12-5 |
Weight | 20.00% | 50.00% |
Bottom of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Performance Period | January 1, 2018 | |
Vesting | 0.00% | |
Bottom of range [member] | Absolute TSR [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Performance Period | January 1, 2018 | January 1, 2017 |
Vesting | 0.00% | 0.00% |
Bottom of range [member] | Relative TSR [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Performance Period | January 1, 2018 | January 1, 2017 |
Vesting | 0.00% | 0.00% |
Top of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Performance Period | December 31, 2018 | |
Vesting | 200.00% | |
Top of range [member] | Absolute TSR [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Performance Period | December 31, 2020 | December 31, 2019 |
Vesting | 200.00% | 200.00% |
Top of range [member] | Relative TSR [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Performance Period | December 31, 2020 | December 31, 2019 |
Vesting | 200.00% | 200.00% |
Share Based Compensation - Su_3
Share Based Compensation - Summary of LTV Share-Settled Plan (Detail) kr in Millions | 12 Months Ended | |
Dec. 31, 2018SEK (kr)shares | Dec. 31, 2017shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Maximum shares required | 1,594,920 | |
Outstanding number of shares end of 2018 | 28,200,000 | 43,700,000 |
Members of Executive Board [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Maximum shares required | 6,000,000 | |
Granted shares | 1,500,000 | |
Increase due to performace condition | 400,000 | |
Outstanding number of shares end of 2018 | 1,900,000 | |
Compensation cost charged during 2018 (SEK million) | kr | kr 32.6 | |
The President and CEO [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Granted shares | 800,000 | |
Outstanding number of shares end of 2018 | 1,000,000 | |
Compensation cost charged during 2018 (SEK million) | kr | kr 18.4 | |
LTV 2018 [member] | Members of Executive Board [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Maximum shares required | 3,000,000 | |
Granted shares | 800,000 | |
Increase due to performace condition | 400,000 | |
Outstanding number of shares end of 2018 | 1,200,000 | |
Compensation cost charged during 2018 (SEK million) | kr | kr 17.9 | |
LTV 2018 [member] | The President and CEO [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Granted shares | 400,000 | |
Outstanding number of shares end of 2018 | 600,000 | |
Compensation cost charged during 2018 (SEK million) | kr | kr 8.6 | |
LTV 2017 [member] | Members of Executive Board [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Maximum shares required | 3,000,000 | |
Granted shares | 700,000 | |
Outstanding number of shares end of 2018 | 700,000 | |
Compensation cost charged during 2018 (SEK million) | kr | kr 14.7 | |
LTV 2017 [member] | The President and CEO [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Granted shares | 400,000 | |
Outstanding number of shares end of 2018 | 400,000 | |
Compensation cost charged during 2018 (SEK million) | kr | kr 9.8 |
Share Based Compensation - Su_4
Share Based Compensation - Summary of LTV Share-Settled Plan (Parenthetical) (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation cost | kr 876 | kr 957 |
Members of Executive Board [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation cost | kr 9.9 |
Share Based Compensation - Su_5
Share Based Compensation - Summary of Compensation Cost (Detail) kr in Millions | 12 Months Ended |
Dec. 31, 2018SEK (kr)shares | |
Disclosure of key management personnel compensation [line items] | |
Number of shares | 1,594,920 |
Long-term variable compensation program [member] | |
Disclosure of key management personnel compensation [line items] | |
Total compensation cost | kr | kr 609.3 |
Long-term variable compensation program [member] | Synthetic shares [member] | |
Disclosure of key management personnel compensation [line items] | |
Number of shares | 22,800,000 |
LTV 2018 [member] | Long-term variable compensation program [member] | |
Disclosure of key management personnel compensation [line items] | |
Total compensation cost | kr | kr 175.7 |
LTV 2018 [member] | Long-term variable compensation program [member] | Synthetic shares [member] | |
Disclosure of key management personnel compensation [line items] | |
Number of shares | 10,400,000 |
LTV 2017 [member] | Long-term variable compensation program [member] | |
Disclosure of key management personnel compensation [line items] | |
Total compensation cost | kr | kr 433.6 |
LTV 2017 [member] | Long-term variable compensation program [member] | Synthetic shares [member] | |
Disclosure of key management personnel compensation [line items] | |
Number of shares | 12,400,000 |
Executive performance plan [member] | Long-term variable compensation program [member] | |
Disclosure of key management personnel compensation [line items] | |
Total compensation cost | kr | kr 130.5 |
Executive performance plan [member] | Long-term variable compensation program [member] | Synthetic shares [member] | |
Disclosure of key management personnel compensation [line items] | |
Number of shares | 2,900,000 |
Executive performance plan [member] | LTV 2018 [member] | Long-term variable compensation program [member] | |
Disclosure of key management personnel compensation [line items] | |
Total compensation cost | kr | kr 19.8 |
Executive performance plan [member] | LTV 2018 [member] | Long-term variable compensation program [member] | Synthetic shares [member] | |
Disclosure of key management personnel compensation [line items] | |
Number of shares | 1,000,000 |
Executive performance plan [member] | LTV 2017 [member] | Long-term variable compensation program [member] | |
Disclosure of key management personnel compensation [line items] | |
Total compensation cost | kr | kr 110.7 |
Executive performance plan [member] | LTV 2017 [member] | Long-term variable compensation program [member] | Synthetic shares [member] | |
Disclosure of key management personnel compensation [line items] | |
Number of shares | 1,900,000 |
Key contributor plan [member] | Long-term variable compensation program [member] | |
Disclosure of key management personnel compensation [line items] | |
Total compensation cost | kr | kr 478.8 |
Key contributor plan [member] | Long-term variable compensation program [member] | Synthetic shares [member] | |
Disclosure of key management personnel compensation [line items] | |
Number of shares | 19,900,000 |
Key contributor plan [member] | LTV 2018 [member] | Long-term variable compensation program [member] | |
Disclosure of key management personnel compensation [line items] | |
Total compensation cost | kr | kr 155.9 |
Key contributor plan [member] | LTV 2018 [member] | Long-term variable compensation program [member] | Synthetic shares [member] | |
Disclosure of key management personnel compensation [line items] | |
Number of shares | 9,400,000 |
Key contributor plan [member] | LTV 2017 [member] | Long-term variable compensation program [member] | |
Disclosure of key management personnel compensation [line items] | |
Total compensation cost | kr | kr 322.9 |
Key contributor plan [member] | LTV 2017 [member] | Long-term variable compensation program [member] | Synthetic shares [member] | |
Disclosure of key management personnel compensation [line items] | |
Number of shares | 10,500,000 |
Share Based Compensation - Su_6
Share Based Compensation - Summary of Compensation Cost (Parenthetical) (Detail) - SEK (kr) kr / shares in Units, kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of key management personnel compensation [line items] | |||
Compensation cost | kr 876 | kr 957 | |
Long-term variable compensation program [member] | |||
Disclosure of key management personnel compensation [line items] | |||
Fair value share price | kr 65.79 | kr 57.15 | |
Long-term variable compensation program [member] | LTV 2018 [member] | Executive performance plan [member] | |||
Disclosure of key management personnel compensation [line items] | |||
Fair value granted | 98.97 | ||
Long-term variable compensation program [member] | LTV 2018 [member] | Key contributor plan [member] | |||
Disclosure of key management personnel compensation [line items] | |||
Fair value share price | 79.98 | ||
Long-term variable compensation program [member] | LTV 2017 [member] | Executive performance plan [member] | |||
Disclosure of key management personnel compensation [line items] | |||
Fair value granted | 136.16 | 65.68 | |
Long-term variable compensation program [member] | LTV 2017 [member] | Key contributor plan [member] | |||
Disclosure of key management personnel compensation [line items] | |||
Fair value share price | kr 81.06 | kr 56.55 | |
Members of Executive Board [member] | |||
Disclosure of key management personnel compensation [line items] | |||
Compensation cost | kr 9.9 | ||
Members of Executive Board [member] | Long-term variable compensation program [member] | Key contributor plan [member] | |||
Disclosure of key management personnel compensation [line items] | |||
Compensation cost | kr 170 |
Share Based Compensation - Su_7
Share Based Compensation - Summary of Stock Purchase Plans (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Stock Purchase plan 2015 [member] | |
Disclosure of Detailed Information About Stock Purchase Plans [line items] | |
Contribution period | August 2015 - July 2016 |
Number of participants at launch | 33,800 |
Take-up rate-percent of eligible employees | 31.00% |
Stock Purchase plan 2016 [member] | |
Disclosure of Detailed Information About Stock Purchase Plans [line items] | |
Contribution period | August 2016 - July 2017 |
Number of participants at launch | 31,500 |
Take-up rate-percent of eligible employees | 29.00% |
Share Based Compensation - Su_8
Share Based Compensation - Summary of Executive Performance Stock Plan Targets (Detail) - SEK (kr) kr in Billions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Executive Performance Stock Plan Targets [line items] | ||
Growth (Net sales growth) | kr 246.9 | |
Margin (Operating income growth)1) | kr 24.8 | |
Bottom of range [member] | ||
Disclosure of Executive Performance Stock Plan Targets [line items] | ||
Compound annual growth rate, Growth (Net sales growth) | 2.00% | |
Margin (Operating income growth)1) | 5.00% | |
Top of range [member] | ||
Disclosure of Executive Performance Stock Plan Targets [line items] | ||
Compound annual growth rate, Growth (Net sales growth) | 6.00% | |
Margin (Operating income growth)1) | 15.00% | |
Top of range [member] | Year 1 [member] | ||
Disclosure of Executive Performance Stock Plan Targets [line items] | ||
Cash flow (Cash conversion) | 70.00% | |
Top of range [member] | Year 2 [member] | ||
Disclosure of Executive Performance Stock Plan Targets [line items] | ||
Cash flow (Cash conversion) | 70.00% | |
Top of range [member] | Year 3 [member] | ||
Disclosure of Executive Performance Stock Plan Targets [line items] | ||
Cash flow (Cash conversion) | 70.00% |
Share Based Compensation - Su_9
Share Based Compensation - Summary of Shares for All Plans (Detail) shares in Millions, kr in Millions | 12 Months Ended |
Dec. 31, 2018SEK (kr)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Originally designated | 67.9 |
Outstanding beginning of 2018 | 43.7 |
Awarded during 2018 | 0 |
Exercised/matched during 2018 | 11.6 |
Forfeited/expired during 2018 | 3.9 |
Outstanding end of 2018 1) | 28.2 |
Compensation costs charged during 2018 (SEK million) 3) | kr | kr 644.9 |
2016 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Originally designated | 21.6 |
Outstanding beginning of 2018 | 21.6 |
Awarded during 2018 | 0 |
Exercised/matched during 2018 | 1.5 |
Forfeited/expired during 2018 | 1.4 |
Outstanding end of 2018 1) | 18.7 |
Compensation costs charged during 2018 (SEK million) 3) | kr | kr 321.7 |
2015 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Originally designated | 23.5 |
Outstanding beginning of 2018 | 15.4 |
Awarded during 2018 | 0 |
Exercised/matched during 2018 | 3.6 |
Forfeited/expired during 2018 | 2.3 |
Outstanding end of 2018 1) | 9.5 |
Compensation costs charged during 2018 (SEK million) 3) | kr | kr 260.4 |
2014 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Originally designated | 22.8 |
Outstanding beginning of 2018 | 6.7 |
Awarded during 2018 | 0 |
Exercised/matched during 2018 | 6.5 |
Forfeited/expired during 2018 | 0.2 |
Compensation costs charged during 2018 (SEK million) 3) | kr | kr 62.8 |
Share Based Compensation - S_10
Share Based Compensation - Summary of Shares for All Plans (Parenthetical) (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Compensation cost | kr 876 | kr 957 | |
2014 plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding share option vesting percentage | 33.00% | ||
Outstanding share option lapsed percentage | 67.00% | ||
2015 plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding share option vesting percentage | 22.00% | ||
Outstanding share option lapsed percentage | 78.00% |
Employee Information - Summary
Employee Information - Summary of Average Number of Employees (Detail) - Employees | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Information About Employees [line items] | ||
Average number of employees | 97,843 | 107,369 |
Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 23,148 | 25,793 |
Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 74,695 | 81,576 |
South East Asia, Oceania and India [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 23,697 | 24,985 |
South East Asia, Oceania and India [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 4,740 | 5,212 |
South East Asia, Oceania and India [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 18,957 | 19,773 |
North East Asia [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 12,399 | 12,846 |
North East Asia [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 4,024 | 4,189 |
North East Asia [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 8,375 | 8,657 |
North America [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 9,577 | 10,932 |
North America [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 2,057 | 2,337 |
North America [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 7,520 | 8,595 |
Europe and Latin America [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 47,917 | 53,782 |
Europe and Latin America [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 11,627 | 13,135 |
Europe and Latin America [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 36,290 | 40,647 |
Middle East and Africa [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 4,253 | 4,824 |
Middle East and Africa [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 700 | 920 |
Middle East and Africa [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 3,553 | 3,904 |
Sweden [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 13,035 | 14,312 |
Sweden [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 3,059 | 3,299 |
Sweden [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 9,976 | 11,013 |
Of which in EU [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 36,508 | 41,664 |
Of which in EU [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 8,918 | 10,534 |
Of which in EU [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Average number of employees | 27,590 | 31,130 |
Employee Information - Summar_2
Employee Information - Summary of Number of Employees by Market Area (Detail) - Employees | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 95,359 | 100,735 |
South East Asia, Oceania and India [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 23,959 | 24,495 |
North East Asia [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 12,788 | 12,456 |
North America [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 9,727 | 10,009 |
Europe and Latin America [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 44,621 | 49,231 |
Middle East and Africa [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 4,264 | 4,544 |
Sweden [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 12,502 | 13,864 |
Of which in EU [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees by market area | 35,268 | 39,508 |
Employee Information - Summar_3
Employee Information - Summary of Number of Employees by Gender and Age (Detail) - Employees | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Information About Employees [line items] | ||
Number of employees | 95,359 | 100,735 |
Percentage of employees | 100.00% | |
Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 23.00% | |
Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 77.00% | |
Under 25 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 3.00% | |
Under 25 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 1,190 | |
Under 25 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 1,961 | |
25-35 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 36.00% | |
25-35 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 9,294 | |
25-35 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 25,284 | |
Between 36 to 45 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 32.00% | |
Between 36 to 45 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 6,292 | |
Between 36 to 45 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 24,276 | |
46-55 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 22.00% | |
46-55 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 4,168 | |
46-55 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 16,366 | |
Over 55 years old [member] | ||
Disclosure of Information About Employees [line items] | ||
Percentage of employees | 7.00% | |
Over 55 years old [member] | Women [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 1,426 | |
Over 55 years old [member] | Men [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 5,102 |
Employee Information - Summar_4
Employee Information - Summary of Employee Movements (Detail) - Employees | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Information About Employees [line items] | ||
Number of employees | 95,359 | 100,735 |
Employees who have left the Company [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 16,630 | 21,791 |
Employees who have joined the Company [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 11,254 | 11,062 |
Temporary employee [member] | ||
Disclosure of Information About Employees [line items] | ||
Number of employees | 560 | 676 |
Employee Information - Summar_5
Employee Information - Summary of Wages and Salaries and Social Security Expenses (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Information About Employees [line items] | |||
Of which pension costs | kr 4,882 | kr 5,592 | kr 5,334 |
Employee remuneration [member] | |||
Disclosure of Information About Employees [line items] | |||
Wages and salaries | 53,298 | 58,966 | |
Social security expenses | kr 13,863 | kr 17,536 |
Employee Information - Summar_6
Employee Information - Summary of Remuneration to Board Members and Presidents in Subsidiaries (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Number and average number of employees [abstract] | ||
Salary and other remuneration | kr 273 | kr 347 |
Of which annual variable remuneration | 28 | 79 |
Pension costs | kr 25 | kr 32 |
Employee Information - Summar_7
Employee Information - Summary of Board Members, Presidents and Group Management by Gender (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Women [member] | Parent [member] | ||
Disclosure of Information About Employees [line items] | ||
Board members and President | 23.00% | 43.00% |
Group Management | 27.00% | 36.00% |
Women [member] | Subsidiaries [member] | ||
Disclosure of Information About Employees [line items] | ||
Board members and President | 19.00% | 19.00% |
Men [member] | Parent [member] | ||
Disclosure of Information About Employees [line items] | ||
Board members and President | 77.00% | 57.00% |
Group Management | 73.00% | 64.00% |
Men [member] | Subsidiaries [member] | ||
Disclosure of Information About Employees [line items] | ||
Board members and President | 81.00% | 81.00% |
Taxes - Additional Information
Taxes - Additional Information (Detail) - SEK (kr) kr in Millions | Jan. 01, 2021 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 01, 2016 |
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||||||
Tax benefit (expense) | kr (4,813) | kr 3,525 | kr (1,882) | ||||
Effective tax rate | (329.10%) | 9.80% | 65.00% | ||||
Tax effects recognized in other comprehensive income (loss) | kr 285 | kr (563) | |||||
Actuarial gains and losses related to pensions | 329 | (547) | |||||
Deferred tax assets | 23,152 | 21,963 | kr 16,998 | kr 22,251 | kr 14,411 | ||
Tax loss carry-forwards | 39,415 | 47,360 | |||||
Unrecognized tax loss carry forwards | 4,223 | 4,544 | |||||
Unrecognized tax loss carry forwards, tax value | 773 | 842 | |||||
Loss Carry Forwards [member] | |||||||
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||||||
Deferred tax assets | kr 8,449 | 10,712 | |||||
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% | 22.00% | ||||
Sweden [member] | |||||||
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||||||
Expected applicable tax rate | 22.00% | ||||||
Sweden [member] | Loss Carry Forwards [member] | |||||||
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items] | |||||||
Deferred tax assets | kr 7,006 | kr 8,795 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Major components of tax expense (income) [abstract] | |||
Current income taxes for the year | kr (5,513) | kr (4,168) | kr (3,654) |
Current income taxes related to prior years | (392) | 83 | (489) |
Deferred tax income/expense | 1,097 | 7,613 | 2,266 |
Share of taxes in joint ventures and associated companies | (5) | (3) | (5) |
Tax expense/benefit | kr (4,813) | kr 3,525 | kr (1,882) |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Expected tax expense at Swedish tax rate 22.0% | kr 322 | kr 7,910 | kr (637) |
Effect of foreign tax rates | (773) | 205 | (536) |
Current income taxes related to prior years | (392) | 83 | (489) |
Remeasurement of tax loss carry-forwards | 113 | (150) | 143 |
Remeasurement of deductible temporary differences | 33 | 127 | 119 |
Impairment of withholding tax | (3,000) | (1,273) | (456) |
Tax effect of non-deductible expenses | (1,130) | (2,871) | (901) |
Tax effect of non-taxableincome | 722 | 480 | 935 |
Tax effect of changes in tax rates | (708) | (986) | (60) |
Tax expense/benefit | kr (4,813) | kr 3,525 | kr (1,882) |
Effective tax rate | (329.10%) | 9.80% | 65.00% |
Taxes - Reconciliation of Swe_2
Taxes - Reconciliation of Swedish Income Tax Rate with Effective Tax Rate (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Sweden [member] | |
Reconciliation of effective tax rate [Line Items] | |
Statutory tax rate in Sweden | 22.00% |
Taxes - Tax Effects of Temporar
Taxes - Tax Effects of Temporary Differences and Tax Loss Carry-forwards (Detail) - SEK (kr) kr in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | kr 23,152 | kr 22,251 | kr 21,963 | kr 16,998 | kr 14,411 |
Deferred tax liabilities | 670 | 901 | 2,147 | ||
Net balance | 22,482 | 21,062 | kr 14,851 | ||
Intangible assets and property, plant and equipment [member] | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 1,182 | 894 | |||
Deferred tax liabilities | 2,125 | 2,374 | |||
Current assets [member] | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 3,614 | 3,402 | |||
Deferred tax liabilities | 731 | 866 | |||
Post employment benefits [member] | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 5,459 | 4,886 | |||
Deferred tax liabilities | 842 | 704 | |||
Provisions [member] | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 4,441 | 1,846 | |||
Deferred tax liabilities | 15 | ||||
Other [member] | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 3,223 | 3,556 | |||
Deferred tax liabilities | 188 | 275 | |||
Loss Carry Forwards [member] | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 8,449 | 10,712 | |||
Deferred tax assets/ liabilities [member] | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 26,368 | 25,296 | |||
Deferred tax liabilities | 3,886 | 4,234 | |||
Net balance | 22,482 | 21,062 | |||
Netting of tax assets/ liabilities [member] | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Netting of deferred tax assets | (3,216) | (3,333) | |||
Netting of deferred tax liabilities | kr (3,216) | kr (3,333) |
Taxes - Changes in Deferred Tax
Taxes - Changes in Deferred Taxes, Net (Detail) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance, net | kr 21,062 | kr 14,851 |
Opening balance adjustment due to IFRS 9 | 288 | |
Opening balance, adjusted | 21,350 | 14,851 |
Recognized in net income (loss) | 1,097 | 7,613 |
Recognized in other comprehensive income (loss) | 285 | (563) |
Acquisitions/disposals of subsidiaries | (116) | |
Reclassification to current tax | (289) | (462) |
Translation difference | 155 | (377) |
Closing balance, net | kr 22,482 | kr 21,062 |
Taxes - Tax Loss Carry-forwards
Taxes - Tax Loss Carry-forwards (Detail) kr in Millions | Dec. 31, 2018SEK (kr) |
Disclosure Of Income Taxes [line items] | |
Tax loss carry-forwards | kr 39,415 |
Tax value | 8,449 |
2019 [member] | |
Disclosure Of Income Taxes [line items] | |
Tax loss carry-forwards | 1 |
2020 [member] | |
Disclosure Of Income Taxes [line items] | |
Tax loss carry-forwards | 1 |
2021 [member] | |
Disclosure Of Income Taxes [line items] | |
Tax loss carry-forwards | 168 |
Tax value | 25 |
2022 [member] | |
Disclosure Of Income Taxes [line items] | |
Tax loss carry-forwards | 414 |
Tax value | 122 |
2023 [member] | |
Disclosure Of Income Taxes [line items] | |
Tax loss carry-forwards | 121 |
Tax value | 23 |
2024 and later [member] | |
Disclosure Of Income Taxes [line items] | |
Tax loss carry-forwards | 38,710 |
Tax value | kr 8,279 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic | |||
Net income (loss) attributable to stockholders of the Parent Company | kr (6,530) | kr (32,576) | kr 833 |
Average number of shares outstanding, basic | 3,291 | 3,277 | 3,263 |
Earnings (loss) per share, basic | kr (1.98) | kr (9.94) | kr 0.26 |
Diluted | |||
Net income (loss) attributable to stockholders of the Parent Company | kr (6,530) | kr (32,576) | kr 833 |
Average number of shares outstanding, basic | 3,291 | 3,277 | 3,263 |
Dilutive effect for stock purchase | 40 | ||
Average number of shares outstanding, diluted | 3,291 | 3,277 | 3,303 |
Earnings (loss) per share, diluted | kr (1.98) | kr (9.94) | kr 0.25 |
Statement of Cash Flows - Addit
Statement of Cash Flows - Additional Information (Detail) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Cash Flow Statement [abstract] | |||
Interest paid | kr 829 | kr 794 | kr 1,269 |
Interest received | (283) | 1 | 110 |
Taxes paid, including withholding tax | (5,874) | (4,724) | kr (9,105) |
Cash and cash equivalents include cash | 18,998 | 18,403 | |
Temporary investments | 19,391 | 17,481 | |
Cash and cash equivalents | kr 3,100 | kr 3,100 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of adjustments to reconcile net income to cash [line items] | |||
Depreciation | kr 3,275 | kr 4,103 | kr 4,421 |
Impairment losses/reversals of impairments | 568 | 2,211 | 148 |
Amortization | 3,946 | 4,348 | 4,465 |
Goodwill | 275 | 12,966 | |
Total impairments | 529 | 17,230 | 85 |
Total depreciation, amortization and impairment losses on property, plant and equipment and intangible assets | 8,318 | 27,892 | 9,119 |
Taxes | (1,897) | (9,064) | (6,449) |
Dividends from joint ventures/associated companies | 30 | 77 | 84 |
Undistributed earnings in joint ventures/ associated companies | (53) | (21) | (26) |
Gains/losses on sales of investments and operations, intangible assets and PP&E, net | 212 | (167) | (37) |
Other non-cash items | 1,220 | 607 | 3,172 |
Total | 7,830 | 19,324 | 5,863 |
Intangible asset and goodwill [member] | |||
Disclosure of adjustments to reconcile net income to cash [line items] | |||
Total | 4,475 | 21,578 | 4,550 |
Property, plant and equipments [member] | |||
Disclosure of adjustments to reconcile net income to cash [line items] | |||
Total | 3,843 | 6,314 | 4,569 |
Capitalized development expenditure [member] | |||
Disclosure of adjustments to reconcile net income to cash [line items] | |||
Amortization | 2,559 | 2,681 | 1,815 |
Impairments | 254 | 2,245 | 85 |
Intellectual property rights brands and other intangible assets [member] | |||
Disclosure of adjustments to reconcile net income to cash [line items] | |||
Amortization | kr 1,387 | 1,667 | kr 2,650 |
Impairments | kr 2,019 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of acquisitions and divestments [line items] | |||
Acquisitions | kr (1,618) | kr (289) | kr (984) |
Divestments | 333 | 565 | 362 |
Cash flow from business combination [member] | |||
Disclosure of acquisitions and divestments [line items] | |||
Acquisitions | (1,220) | (62) | (781) |
Divestments | 226 | 459 | 25 |
Acquisition or divestments of other investment [member] | |||
Disclosure of acquisitions and divestments [line items] | |||
Acquisitions | (398) | (227) | (203) |
Divestments | kr 107 | kr 106 | kr 337 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Auditors Remuneration [line items] | |||
Audit fees | kr 102 | kr 91 | kr 93 |
Audit-related fees | 13 | 11 | 10 |
Tax fees | 11 | 17 | 18 |
Other fees | 15 | 16 | 27 |
Total | 141 | 135 | 148 |
PwC [member] | |||
Auditors Remuneration [line items] | |||
Audit fees | 98 | 89 | 90 |
Audit-related fees | 11 | 11 | 10 |
Tax fees | 9 | 13 | 10 |
Other fees | 9 | 9 | 16 |
Total | 127 | 122 | 126 |
Others [member] | |||
Auditors Remuneration [line items] | |||
Audit fees | 4 | 2 | 3 |
Audit-related fees | 2 | ||
Tax fees | 2 | 4 | 8 |
Other fees | 6 | 7 | 11 |
Total | kr 14 | kr 13 | kr 22 |
Fees to Auditors - Additional I
Fees to Auditors - Additional Information (Detail) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018SEK (kr) | Dec. 31, 2017SEK (kr) | Dec. 31, 2016SEK (kr) | |
Auditors Remuneration [line items] | |||
Auditors fee | kr 141 | kr 135 | kr 148 |
Tax fees | 11 | 17 | 18 |
Other audit fees | 15 | 16 | 27 |
PwC [member] | |||
Auditors Remuneration [line items] | |||
Auditors fee | 127 | 122 | 126 |
Tax fees | 9 | 13 | 10 |
Other audit fees | 9 | 9 | kr 16 |
PwC AB Sweden [member] | |||
Auditors Remuneration [line items] | |||
Auditors fee | 39 | 39 | |
Other statutory engagements fees | 9 | 10 | |
Tax fees | 1 | 3 | |
Other audit fees | kr 8 | kr 5 | |
Number of valuation services performed | 0 |
Events After The Reporting Peri
Events After The Reporting Period - Additional Information (Detail) - SEK (kr) | Mar. 27, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 01, 2019 |
Disclosure of non-adjusting events after reporting period [line items] | |||||
Dividends paid per share | kr 1 | kr 1 | kr 3.70 | ||
Potential ordinary share transactions [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Dividends paid per share | kr 1 | ||||
Chairman [member] | Board fees [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Fee and commission expense | kr 4,075,000 | ||||
Chairman [member] | Annual general meeting [member] | Board fees [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Fee and commission expense | kr 4,075,000 | ||||
Other non-employee board members [Member] | Board fees [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Fee and commission expense | 990,000 | ||||
Other non-employee board members [Member] | Annual general meeting [member] | Board fees [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Fee and commission expense | 1,020,000 | ||||
Chairman of audit committee [member] | Board fees [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Fee and commission expense | 350,000 | ||||
Chairman of audit committee [member] | Annual general meeting [member] | Board fees [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Fee and commission expense | 400,000 | ||||
Other non-employee members of audit committee [member] | Board fees [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Fee and commission expense | 250,000 | ||||
Other non-employee members of audit committee [member] | Annual general meeting [member] | Board fees [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Fee and commission expense | 250,000 | ||||
Chairmen of the finance and remuneration committees [member] | Board fees [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Fee and commission expense | 200,000 | ||||
Chairmen of the finance and remuneration committees [member] | Annual general meeting [member] | Board fees [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Fee and commission expense | 200,000 | ||||
Other non-employee members of finance and remuneration committees [member] | Board fees [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Fee and commission expense | kr 175,000 | ||||
Other non-employee members of finance and remuneration committees [member] | Annual general meeting [member] | Board fees [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Fee and commission expense | kr 175,000 | ||||
MediaKind Business [member] | Announcement of plan to discontinue operation [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Percentage of non controlling interest | 49.00% | ||||
Bottom of range [member] | MediaKind Business [member] | Announcement of plan to discontinue operation [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Estimated gain on divestment of business | kr 400,000,000 | ||||
Top of range [member] | MediaKind Business [member] | Announcement of plan to discontinue operation [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Estimated gain on divestment of business | kr 600,000,000 |