20-F/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 20-F/A

☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2017

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 000-12033

TELEFONAKTIEBOLAGET LM ERICSSON

(Exact Name of Registrant as Specified in its Charter)

LM ERICSSON TELEPHONE COMPANY

(Translation of Registrant’s name into English)

Kingdom of Sweden

(Jurisdiction of incorporation or organization)

SE-164 83 Stockholm, Sweden

(Address of principal executive offices)

Jonas Stringberg, Vice President, Group Controller

Telephone: +46 10 716 53 20, jonas.stringberg@ericsson.com

SE-164 83 Stockholm, Sweden

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Each Exchange on which Registered
American Depositary Shares (each representing one B share)	The NASDAQ Stock Market LLC
B Shares *	The NASDAQ Stock Market LLC

* Not for trading, but only in connection with the registration of the American Depositary Shares representing such B Shares pursuant to the requirements of the Securities and Exchange Commission.

Securities registered pursuant to Section 12(g) of the Act:

None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:

B shares (SEK 5.00 nominal value)	3,072,395,752
A shares (SEK 5.00 nominal value)	261,755,983
C shares (SEK 5.00 nominal value)	0

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ☒    No  ☐

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.    Yes  ☐    No  ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files)    Yes  ☐    No  ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or an emerging growth company . See the definitions of “large accelerated filer” and “accelerated filer” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Emerging growth company	☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards^† provided pursuant to Section 13(a) of the Exchange Act.  ☐

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

☐  U.S. GAAP                 ☒      International Financial Reporting Standards as issued by the International Accounting Standards Board ☐  Other

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Item 17  ☐    Item 18  ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Explanatory Note

LM ERICSSON TELEPHONE COMPANY is filing this Amendment No. 1 (the “Form 20-F/A”) to its annual report on Form 20-F (the “Form 20-F”) for the fiscal year ended December 31, 2017, to:

• Submit the Interactive Data File (as defined in Rule 11 of Regulation S-T) with respect to the audited consolidated financial statements of LM ERICSSON TELEPHONE COMPANY (as defined in the Form 20-F) for that fiscal year as an exhibit to the Form 20-F pursuant to paragraph 101 under “Instructions as to Exhibits” of Form 20-F in accordance with Rule 405 of Regulation S-T.

• Correct typographical errors in Item 3.A “Key Information—Selected Financial Data.”

Other than as expressly set forth above, this Form 20-F/A does not, and does not purport to, amend, update or restate the information in any Item of the Form 20-F or reflect any events that have occurred after the Form 20-F was originally filed. The Form 20-F, as amended by this Form 20-F/A, continues to speak as of the initial filing date of the Form 20-F.

ITEM 3. KEY INFORMATION

A. Selected Financial Data

We present below certain selected financial data derived from our consolidated financial statements as of and for the years ended December 31, 2017, 2016, 2015, 2014, and 2013 , included herein, prepared in accordance with the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). IFRS differs in certain significant respects from the accounting principles generally accepted in the United States, or “U.S. GAAP.”

The summary financial data should be read in conjunction with our consolidated financial statements and the notes thereto contained in this 2017 Form 20-F, as well as the information set forth under the heading “Item 5. Operating and Financial Review and Prospects” and the information set forth under the following headings of the 2017 Swedish Annual Report, which are incorporated herein by reference:

• Other Information

• Alternative Performance Measures

• Financial Terminology and Exchange rates

	2017			Change			2016			2015			2014			2013
Net sales		201,303			–10	%		222,608			246,920			227,983			227,376
Operating expenses		–70,563			17	%		–60,501			–64,129			–63,408			–58,509
Operating income (loss)		–38,126			—			6,299			21,805			16,807			17,845
Net income (loss)		–35,063			—			1,895			13,673			11,143			12,174
Restructuring charges		8,501			12	%		7,567			5,040			1,456			4,453
Cash flow from operating activities		9,601			–31	%		14,010			20,597			18,702			17,389
Year-end position, SEK million
Total assets		260,544			–8	%		283,347			284,363			293,558			269,190
Property, plant and equipment		12,857			–23	%		16,734			15,901			13,341			11,433
Stockholders’ equity		99,540			–29	%		139,817			146,525			144,306			140,204
Non-controlling interest		636			–6	%		675			841			1,003			1,419
Per share indicators		636
Earnings (loss) per share, basic, SEK		–10.74			—			0.53			4.17			3.57			3.72
Earnings (loss) per share, diluted, SEK		–10.74			—			0.52			4.13			3.54			3.69
Dividends per share, SEK		1.00	1)		0	%		1.00			3.70			3.40			3.00
Dividends per share, USD		0.13	2)		13	%		0.11			0.39			0.41			0.46
Number of shares outstanding (in millions) end of period, basic		3,284			0	%		3,269			3,256			3,242			3,231
average, basic		3,277			0	%		3,263			3,249			3,237			3,226
average, diluted		3,317			0	%		3,303			3,282			3,270			3,257
Other information, SEK million
Additions to property, plant and equipment		3,877			–37	%		6,129			8,338			5,322			4,503
Depreciations and writedowns/impairments of property, plant and equipment		6,314			38	%		4,569			4,689			4,316			4,209
Acquisitions/capitalization of intangible assets		1,759			—			5,260			5,228			6,184			4,759
Amortization and write-downs/impairments of intangible assets		21,578			—			4,550			5,538			5,629			5,928
Research and development expenses		37,887			20	%		31,635			34,844			36,308			32,236
as percentage of net sales		18.8	%		—			14.2	%		14.1	%		15.9	%		14.2	%
Inventory turnover days		64			–7	%		69			64			64			62

1

Alternative Performance Measures (APMs)
Gross margin	22.1	%	—		29.8	%	34.8	%	36.2	%	33.6	%
Operating margin	–18.9	%	—		2.8	%	8.8	%	7.4	%	7.8	%
EBITA margin	–10.7	%	—		4.0	%	10.5	%	9.3	%	9.8	%
Cash conversion	–58	%	—		175	%	85	%	84	%	79	%
Free cash flow	5,109		—		254		7,515		4,593		8,337
Capital employed, SEK million	158,230		–17	%	190,901		195,150		189,839		180,903
Return on equity	–29.4	%	—		1.2	%	9.3	%	8.1	%	8.7	%
Return on capital employed	–22.0	%	—		3.2	%	11.6	%	9.8	%	10.7	%
Equity ratio	38.4	%	—		49.6	%	51.8	%	49.5	%	52.6	%
Capital turnover	1.2		0	%	1.2		1.3		1.2		1.3
Working capital, SEK million	59,779		–33	%	89,039		104,811		103,246		106,940
Gross cash, SEK million	67,702		17	%	57,877		66,270		72,159		77,089
Net cash, SEK million	34,657		11	%	31,191		41,150		48,014		47,634
Statistical data, year-end
Number of employees	100,735		–10	%	111,464		116,281		118,055		114,340
of which in Sweden	13,864		–9	%	15,303		17,041		17,580		17,858
Export sales from Sweden, SEK million	86,812		–19	%	107,036		117,486		113,734		108,944

1) For 2017, as proposed by the Board of Directors.

2) For 2017, as proposed by the Board of Directors. Approximate USD Dividend Rate.

Exchange Rates

The following tables provide information with respect to the exchange rate for SEK per USD 1.00 based on the noon buying rate for cable transfers in SEK as certified for customs purposes by the Federal Reserve Bank of New York. The noon buying rate of 16 March 2018 was SEK 8.1960 per USD 1.00. The average exchange rate is computed using the noon buying rate on the last business day of each month during the period indicated.

Year ended December 31,	Average
2013		6.5152
2014		6.9222
2015		8.4643
2016		8.5959
2017		8.4798

Month	High		Low
October 2017		8.3803		8.0534
November 2017		8.4803		8.2769
December 2017		8.5053		8.1732
January 2018		8.2413		7.8549
February 2018		8.2694		7.8588

Effects of exchange rate fluctuations on our business is described in the Notes to the Consolidated Financial Statements—Note C20, “Financial Risk Management and Financial Instruments.”

Noon buying rates are not used in the preparation of our financial statements. The exchange rates used in the preparation of our consolidated financial statements are presented below:

	2017		2016
SEK/EUR
Average rate1)		9.64		9.44
Closing rate		9.83		9.56
SEK/USD
Average rate		8.53		8.56
Closing rate		8.20		9.06

1) Average rate is included for disclosure purposes only. Period income and expenses for each income statement are translated at period average exchange rates.

2

PART III

ITEM 19 EXHIBITS

Exhibit Number	Description
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Definition Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

* In accordance with Rule 406T(b)(2) of Regulation S-T, such XBRL information will be furnished and not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, will be deemed not filed for purposes of Section 18 of the Exchange Act of 1934, as amended, and otherwise will not be subject to liability under those sections.”

3

SIGNATURE

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Amendment No. 1 to its Annual Report on Form 20-F on its behalf.

TELEFONAKTIEBOLAGET LM ERICSSON
By:	/s/ JONAS STRINGBERG
Name:	Jonas Stringberg
Title:	Vice President, Group Controller
By:	/s/ XAVIER DEDULLEN
Name:	Xavier Dedullen
Title:	Senior Vice President, Chief Legal Officer

Date: April 20, 2018

4

XML

Document and Entity Information	12 Months Ended
	Dec. 31, 2017 shares
Document Information [Line Items]
Document Type	20-F/A
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
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
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

XML

Consolidated income statement - SEK (kr) shares in Millions, kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Profit or loss [abstract]
Net sales	kr 201,303	kr 222,608	kr 246,920
Cost of sales	(156,758)	(156,243)	(161,101)
Gross income	kr 44,545	kr 66,365	kr 85,819
Gross margin (%)	22.10%	29.80%	34.80%
Research and development expenses	kr (37,887)	kr (31,635)	kr (34,844)
Selling and administrative expenses	(32,676)	(28,866)	(29,285)
Operating expenses	(70,563)	(60,501)	(64,129)
Other operating income	1,154	1,987	1,568
Other operating expense	(13,286)	(1,583)	(1,415)
Share in earnings of joint ventures and associated companies	24	31	(38)
Operating income (loss)	(38,126)	6,299	21,805
Financial income	(361)	(115)	525
Financial expenses	(843)	(2,158)	(2,458)
Income after financial items	(39,330)	4,026	19,872
Taxes	4,267	(2,131)	(6,199)
Net income (loss)	(35,063)	1,895	13,673
Net income (loss) attributable to:
Stockholders of the Parent Company	(35,206)	1,716	13,549
Non-controllinginterest	kr 143	kr 179	kr 124
Other information
Average number of shares, basic (million)	3,277	3,263	3,249
Earnings (loss) per share attributable to stockholders of the Parent Company, basic (SEK) 1)	kr (10.74)	kr 0.53	kr 4.17
Earnings (loss) per share attributable to stockholders of the Parent Company, diluted (SEK)1)	kr (10.74)	kr 0.52	kr 4.13

XML

Consolidated statement of comprehensive income (loss) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of comprehensive income [abstract]
Net income (loss)	kr (35,063)	kr 1,895	kr 13,673
Items that will not be reclassified to profit or loss
Remeasurements of defined benefits pension plans including asset ceiling	970	(1,766)	(2,026)
Tax on items that will not be reclassified to profit or loss	(547)	520	721
Available-for-sale interest-bearing securities
Gains/losses arising during the period	68	(7)
Reclassification adjustments on gains/losses included in profit or loss	5
Revaluation of other investments in shares and participations
Fair value remeasurement	99	(2)	457
Changes in cumulative translation adjustments	(3,378)	4,235	(604)
Share of other comprehensive income of joint ventures and associated companies		(362)	141
Tax on items that may be reclassified to profit or loss	(16)	1
Total other comprehensive income (loss), net of tax	(2,799)	2,619	(1,311)
Net income and total comprehensive income	(37,862)	4,514	12,362
Total comprehensive income (loss) attributable to:
Stockholders of the Parent Company	(37,987)	4,285	12,218
Non-controllinginterests	kr 125	kr 229	kr 144

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Consolidated balance sheet - SEK (kr) kr in Millions		Dec. 31, 2017	Dec. 31, 2016
Non-currentassets
Capitalized development expenses		kr 4,593	kr 8,076
Goodwill		27,815	43,387
Intellectual property rights, brands and other intangible assets		4,148	7,747
Property, plant and equipment		12,857	16,734
Financial assets
Equity in joint ventures and associated companies		624	775
Other investments in shares and participations		1,279	1,179
Customer finance, non-current		2,178	2,128
Interest-bearing securities, non-current		25,105	7,586
Other financial assets, non-current		5,897	4,442
Deferred tax assets		21,228	15,522
Non-current assets		105,724	107,576
Current assets
Inventories		24,960	30,307
Trade receivables		63,210	68,117
Customer finance, current		1,753	2,625
Other current receivables		22,300	24,431
Interest-bearing securities, current		6,713	13,325
Cash and cash equivalents		35,884	36,966
Current assets		154,820	175,771
Total assets		260,544	283,347
Equity
Stockholders' equity		99,540	139,817
Non-controlling interest in equity of subsidiaries		636	675
Equity		100,176	140,492
Non-current liabilities
Post-employment benefits		25,009	23,723
Provisions, non-current		3,596	946
Deferred tax liabilities		901	2,147
Borrowings, non-current		30,500	18,653
Other non-currentliabilities		2,776	2,621
Non-current liabilities		62,782	48,090
Current liabilities
Provisions, current		6,350	5,411
Borrowings, current		2,545	8,033
Trade payables		26,321	25,318
Other current liabilities		62,370	56,003
Current liabilities		97,586	94,765
Total equity and liabilities	[1]	kr 260,544	kr 283,347

[1] Of which interest-bearing liabilities SEK 33,045 (26,686) million.

XML

Consolidated balance sheet (Parenthetical) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Non Current Assets Finance Liabilities [Abstract]
Interest-bearing liabilities	kr 33,045	kr 26,686

XML

Consolidated statement of cash flows - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating activities
Net income (loss)	kr (35,063)	kr 1,895	kr 13,673
Adjustments to reconcile net income to cash	18,583	6,112	10,611
Cash flows from (used in) Operations	(16,480)	8,007	24,284
Changes in operating net assets
Inventories	3,995	(613)	(366)
Customer finance, current and non-current	798	(950)	824
Trade receivables	1,380	5,933	7,000
Trade payables	2,413	2,775	(2,676)
Provisions and post-employment benefits	4,785	3,106	544
Other operating assets and liabilities, net	12,710	(4,248)	(9,013)
Net changes in operating assets and liabilities	26,081	6,003	(3,687)
Cash flow from operating activities	9,601	14,010	20,597
Investing activities
Investments in property, plant and equipment	(3,877)	(6,129)	(8,338)
Sales of property, plant and equipment	1,016	482	1,301
Acquisitions of subsidiaries and other operations	(289)	(984)	(2,201)
Divestments of subsidiaries and other operations	565	362	1
Product development	(1,444)	(4,483)	(3,302)
Other investing activities	(463)	(3,004)	(543)
Interest-bearing securities	(11,578)	5,473	5,095
Cash flow from investing activities	(16,070)	(8,283)	(7,987)
Cash flow before financing activities	(6,469)	5,727	12,610
Financing activities
Proceeds from issuance of borrowings	13,416	1,527	1,179
Repayment of borrowings	(4,830)	(1,072)	(1,336)
Proceeds from stock issue	15	131
Sale/repurchase of own shares	83	(26)	169
Dividends paid	(3,424)	(12,263)	(11,337)
Other financing activities	218	(39)	615
Cash flow from financing activities	5,478	(11,742)	(10,710)
Effect of exchange rate changes on cash	(91)	2,757	(2,664)
Net change in cash	(1,082)	(3,258)	(764)
Cash and cash equivalents, beginning of period	36,966	40,224	40,988
Cash and cash equivalents, end of period	kr 35,884	kr 36,966	kr 40,224

XML

Consolidated statement of changes in equity - SEK (kr) kr in Millions	Total	Group [member]	Joint ventures and associated companies [member]	Capital stock [member]	Additional paid in capital [member]	Retained earnings [member]	Retained earnings [member] Group [member]	Retained earnings [member] Joint ventures and associated companies [member]	Stockholder's equity [member]		Stockholder's equity [member] Group [member]	Stockholder's equity [member] Joint ventures and associated companies [member]	Non-controlling interest [member]	Non-controlling interest [member] Group [member]
Beginning balance at Dec. 31, 2014	kr 145,309			kr 16,526	kr 24,731	kr 103,049			kr 144,306				kr 1,003
Net income (loss)	13,673	kr 13,711	kr (38)				kr 13,587	kr (38)			kr 13,587	kr (38)		kr 124
Items that will not be reclassified to profit or loss
Remeasurements related to post-employment benefits	(2,026)					(2,033)			(2,033)				7
Tax on items that will not be reclassified to profit or loss	721					722			722				(1)
Available-for-sale interest-bearing securities
Revaluation of other investments in shares and participations	457					457			457
Changes in cumulative translation adjustments		(604)	141				(618)	141			(618)	141		14
Revaluation of other investments in shares and participations	457					457			457
Changes in cumulative translation adjustments Group		(604)	141				(618)	141			(618)	141		14
Tax on items that may be reclassified to profit or loss	721					722			722				(1)
Total other comprehensive income (loss), net of tax	(1,311)					(1,331)			(1,331)				20
Total comprehensive income	12,362					12,218			12,218				144
Transactions with owners
Sale of own shares	169					169			169
Long-term variable compensation plans	865					865			865
Dividends paid	(11,337)					(11,033)			(11,033)				(304)
Transactions with non-controlling interest	(2)												(2)
Ending balance at Dec. 31, 2015	147,366			16,526	24,731	105,268			146,525				841
Net income (loss)	1,895	1,869	26				1,690	26			1,690	26		179
Items that will not be reclassified to profit or loss
Remeasurements related to post-employment benefits		(1,766)					(1,770)				(1,770)			4
Tax on items that will not be reclassified to profit or loss	520					521			521				(1)
Available-for-sale interest-bearing securities
Gains (+)/Losses (-) arising during the period		(7)					(7)				(7)
Revaluation of other investments in shares and participations		(2)					(2)				(2)
Changes in cumulative translation adjustments		4,235	(362)				4,188	(362)			4,188	(362)		47
Revaluation of other investments in shares and participations		(2)					(2)				(2)
Changes in cumulative translation adjustments Group		4,235	(362)				4,188	(362)			4,188	(362)		47
Tax on items that may be reclassified to profit or loss	1
Tax on items that may be reclassified to profit or loss	520					521			521				(1)
Total other comprehensive income (loss), net of tax	2,619					2,569			2,569				50
Total comprehensive income	4,514					4,285			4,285				229
Transactions with owners
Stock issue	131			131					131
Sale of own shares	105					105			105
Repurchase of own shares	(321)					(131)			(131)				(190)
Long-term variable compensation plans	957					957			957
Dividends paid	(12,263)					(12,058)			(12,058)				(205)
Transactions with non-controlling interest	3					3			3
Ending balance at Dec. 31, 2016	140,492			16,657	24,731	98,429			139,817				675
Net income (loss)	(35,063)	kr (35,084)	kr 21				kr (35,227)	kr 21			kr (35,227)	kr 21		kr 143
Items that will not be reclassified to profit or loss
Remeasurements related to post-employment benefits	970					956			956				14
Tax on items that will not be reclassified to profit or loss	(547)					(544)			(544)				(3)
Available-for-sale interest-bearing securities
Gains (+)/Losses (-) arising during the period	68					68			68
Reclassification adjustments relating to available-for-sale financial assets disposed of in the year	5					5			5
Revaluation of other investments in shares and participations	99					99			99
Changes in cumulative translation adjustments	(3,378)					(3,349)			(3,349)	[1]			(29)
Revaluation of other investments in shares and participations	99					99			99
Changes in cumulative translation adjustments Group	(3,378)					(3,349)			(3,349)	[1]			(29)
Tax on items that may be reclassified to profit or loss	(16)					(16)			(16)
Tax on items that may be reclassified to profit or loss	(547)					(544)			(544)				(3)
Total other comprehensive income (loss), net of tax	(2,799)					(2,781)			(2,781)				(18)
Total comprehensive income	(37,862)					(37,987)			(37,987)				125
Transactions with owners
Stock issue	15			15					15
Sale of own shares	98					98			98
Repurchase of own shares	(103)					(15)			(15)				(88)
Long-term variable compensation plans	885					885			885
Dividends paid	(3,424)					(3,273)			(3,273)	[2]			(151)
Transactions with non-controlling interest	75												75
Ending balance at Dec. 31, 2017	kr 100,176			kr 16,672	kr 24,731	kr 58,137			kr 99,540				kr 636

[1] 1) Changes in cumulative translation adjustments include changes regarding revaluation of goodwill in local currency of SEK -2,484 million (SEK 2,355 million in 2016 and 1,592 million in 2015), and realized gain/losses net from sold/liquidated companies, SEK -24 million (SEK -90 million in 2016 and SEK -3 million in 2015).

[2] 2) Dividends paid per share amounted to SEK 1.00 (SEK 3.70 in 2016 and SEK 3.40 in 2015).

XML

Consolidated statement of changes in equity (Parenthetical) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Restatement [Abstract]
Increase (decrease) through net exchange differences, goodwill	kr (2,484)	kr 2,355	kr 1,592
Realized gain or losses net	kr (24)	kr (90)	kr (3)
Dividends paid per share	kr 1.00	kr 3.70	kr 3.40

XML

C1 Significant accounting policies

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

C1 Significant accounting policies

C1    Significant accounting policies

Introduction

The consolidated financial statements comprise Telefonaktiebolaget LM Ericsson, the Parent Company, and its subsidiaries (“the Company”) and the Company’s interests in joint ventures and associated companies. The Parent Company is domiciled in Sweden at Torshamnsgatan 21, SE-164 83 Stockholm.

The consolidated financial statements for the year ended December 31, 2017 have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU and RFR 1 “Additional rules for Group Accounting,” related interpretations issued by the Swedish Financial Reporting Board (Rådet för Finansiell Rapportering), and the Swedish Annual Accounts Act. For the financial reporting of 2017, the Company has applied IFRS as issued by the IASB (IFRS effective as per December 31, 2017). There is no difference between IFRS effective as per December 31, 2017, and IFRS as endorsed by the EU, nor is RFR 1 related interpretations issued by the Swedish Financial Reporting Board (Rådet för Finansiell Rapportering) or the Swedish Annual Accounts Act in conflict with IFRS, for all periods presented.

For information on “New standards and interpretations not yet adopted,” refer to the end of this Note.

The financial statements were approved by the Board of Directors on February 23, 2018. The balance sheets and income statements are subject to approval by the Annual General Meeting of shareholders.

Amendments applied as from January 1, 2017

There have not been any significant amendments of IFRS concerning the Company during 2017.

IAS 7 “Statement of Cash Flows” is amended in relation to disclosure about changes in liabilities arising from financing activities. A new table is presented in Note C25, “Statement of Cash flows.”

Basis of presentation

The financial statements are presented in millions of Swedish Krona (SEK). They are prepared on a historical cost basis, except for certain financial assets and liabilities that are stated at fair value: derivative financial instruments, financial instruments held for trading, financial instruments classified as available-for-sale 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 while for the consolidated balance sheet financial information with related notes is presented with only one comparison year.

Basis of consolidation and composition of the Group

The consolidated financial statements are prepared in accordance with the purchase method. Accordingly, consolidated stockholders’ equity includes equity in subsidiaries, joint ventures and associated companies earned only after their acquisition.

Subsidiaries are all companies for which Telefonaktiebolaget LM Ericsson, directly or indirectly, is the parent. To be classified as a parent, Telefonaktiebolaget LM Ericsson, directly or indirectly, must control another company which requires that the Parent Company has power over that other company, is exposed to variable returns from its involvement and has the ability to use its power over that other company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that such control ceases.

Intra-group balances and any unrealized income and expense arising from intra-group transactions are fully eliminated in preparing the consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

The Company is composed of a parent company, Telefonaktiebolaget LM Ericsson, with generally fully-owned subsidiaries in many countries of the world. The largest operating subsidiaries are the fully-owned telecom vendor companies Ericsson AB, incorporated in Sweden and Ericsson Inc., incorporated in the US.

Business combinations

At the acquisition of a business, the cost of the acquisition, being the purchase price, is measured as the fair value of the assets given, and liabilities incurred or assumed at the date of exchange, including any cost related to contingent consideration. Transaction costs attributable to the acquisition are expensed as incurred. The acquisition cost is allocated to acquired assets, liabilities and contingent liabilities based upon appraisals made, including assets and liabilities that were not recognized on the acquired entity’s balance sheet, for example intangible assets such as customer relations, brands, patents and financial liabilities. Goodwill arises when the purchase price exceeds the fair value of recognizable acquired net assets. In acquisitions with non-controlling interests full or partial goodwill can be recognized. Final amounts are established within one year after the transaction date at the latest.

In case there is a put option for non-controlling interest in a subsidiary a corresponding financial liability is recognized.

Non-controlling interest

The Company treats transactions with non-controlling interests as transactions with equity owners of the Company. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

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 basis to measure the non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets.

Joint ventures and associated companies

Joint ventures and associated companies are accounted for in accordance with the equity method. Under the equity method, the investment in joint venture or associate is initially recognized at cost and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. If the Company’s interest in an associated company is nil, the Company shall not, as prescribed by IFRS, recognize its part of any future losses. Provisions related to obligations for such an interest shall, however, be recognized in relation to such an interest.

Investments in associated companies, i.e., when the Company has significant influence and the power to participate in the financial and operating policy decisions of the associated company, but is not in control or joint control over those policies. Normally, this is the case in voting stock interest, including effective potential voting rights, which stand at least at 20% but not more than 50%.

The Company’s share of income before taxes is reported in item “Share in earnings of joint ventures and associated companies,” included in Operating Income. This reflects the fact that these interests are held for operating rather than investing or financial purposes. Ericsson’s share of income taxes related to associated companies is reported under the line item “Taxes,” in the income statement.

Unrealized gains on transactions between the Company and its joint ventures and associated companies are eliminated to the extent of the Company’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Shares in earnings of joint ventures and associated companies included in consolidated equity which are undistributed are reported in Retained earnings in the balance sheet.

Impairment testing as well as recognition or reversal of impairment of investments in each joint venture and associated company is performed in the same manner as for intangible assets other than goodwill. The entire carrying value of each investment, including goodwill, is tested as a single asset. See also description under “Intangible assets other than goodwill” below.

If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in Other comprehensive income are reclassified to profit or loss where appropriate.

In Note C2, “Critical Accounting Estimates and Judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied.

Foreign currency remeasurement and translation

Items included in the financial statements of each entity of the Company are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Swedish Krona (SEK), which is the Parent Company’s functional and presentation currency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of each respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement, unless deferred in Other comprehensive income under the hedge accounting practices as described below.

Changes in the fair value of monetary securities denominated in foreign currency classified as available-for-sale are analyzed 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 non-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.

Statement of cash flows

The statement of cash flows is prepared in accordance with the indirect method. Cash flows in foreign subsidiaries are translated at the average exchange rate during the period. Payments for subsidiaries acquired or divested are reported as cash flow from investing activities, net of cash and cash equivalents acquired or disposed of respectively.

Cash and cash equivalents consist of cash, bank, and interest-bearing securities that are highly liquid monetary financial instruments with a remaining maturity of three months or less at the date of acquisition.

Revenue recognition

Background

The Company offers a comprehensive portfolio of telecommunication and data communication systems, professional services, and support solutions. Products, both hardware and software as well as services, are in general standardized. The impact of this is that any acceptance terms are normally only formal requirements. In Note C3, “Segment information,” the Company’s products and services are disclosed in more detail as per operating segment.

The Company’s products and services are generally sold under delivery-type or multi-year recurring services contracts. The delivery type contracts often contain content from more than one segment.

Accounting treatment

Sales are based on fair values of consideration received and recorded net of value added taxes, goods returned and estimated trade discounts. Revenue is recognized when risks and rewards have been transferred to the customer, with reference to all significant contractual terms, when:

• The product or service has been delivered

• The revenue amount is fixed or determinable

• The customer has received and activation has been made of separately sold software

• Collection is reasonably assured

Estimations of contractual performance criteria impact the timing and amounts of revenue recognized and may therefore defer revenue recognition until the performance criteria are met. The profitability of contracts is periodically assessed, and provisions for any estimated losses are made immediately when losses are probable.

Allocation and/or timing criteria specific to each type of contract are:

• Delivery-type contracts – These contracts relate to delivery, installation, integration of products and provision of related services, normally under multiple elements contracts. Under multiple elements contracts, accounting is based on that the revenue recognition criteria are applied to the separately identifiable components of the contract. Revenue, including the impact of any discount or rebate, is allocated to each element based on relative fair values.

• Contracts for services – These relate to multi-year service contracts such as support- and managed service contracts and other types of recurring services. Revenue is recognized when the services have been provided, generally pro rata over the contract period.

• Contracts generating license fees from third-parties for the use of the Company’s intellectual property rights – License fees are measured based on the substance of the contract. Examples are a percentage of sales or currency amount per unit and recognized over the license period or at a single point of time when no obligations remain. The amount of consideration shall also be reasonably certain. Networks and Digital services have contracts that relate to this type of arrangement.

For sales between consolidated companies, associated companies, joint ventures and segments, the Company applies arm’s length pricing.

In Note C2, “Critical accounting estimates and judgments,” a further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied.

Earnings per share

Basic earnings per share are calculated by dividing net income attributable to stockholders of the Parent Company by the weighted average number of shares outstanding (total number of shares less treasury stock) during the year.

Diluted earnings per share are calculated by dividing net income attributable to stockholders of the Parent Company, when appropriately adjusted by the sum of the weighted average number of ordinary shares outstanding and dilutive potential ordinary shares. Potential ordinary shares are treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share.

Rights to matching shares are considered dilutive when the actual fulfillment of any performance conditions as of the reporting date would give a right to ordinary shares.

Financial assets

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. Regular purchases and sales of financial assets are recognized on the settlement date.

Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. Separate assets or liabilities are recognized if any rights and obligations are created or retained in the transfer.

The Company classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, and available-for-sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

Financial assets are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the income statement.

The fair values of quoted financial investments and derivatives are based on quoted market prices or rates. If official rates or market prices are not available, fair values are calculated by discounting the expected future cash flows at prevailing interest rates. Valuations of foreign exchange options and Interest Rate Guarantees (IRG) are made by using the Black-Scholes formula. Inputs to the valuations are market prices for implied volatility, foreign exchange and interest rates.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss either are designated as such at initial recognition or are financial assets held for trading. A financial asset is classified as held for trading if it is acquired principally for the purpose of selling in the near term.

Derivatives are classified as held for trading, unless they are designated as hedging instruments for the purpose of hedge accounting. Assets held for trading are classified as current assets.

Gains or losses arising from changes in the fair values of the “Financial assets at fair value through profit or loss” category (excluding derivatives) are presented in the income statement within Financial income in the period in which they arise. Derivatives are presented in the income statement either as Cost of sales, Other operating income, Financial income or Financial expense, depending on the intent with the transaction.

Loans and receivables

Receivables, including those that relate to customer financing, are subsequently measured at amortized cost using the effective interest rate method, less allowances for impairment charges. Trade receivables include amounts due from customers. The balance represents amounts billed to customers as well as amounts where risk and rewards have been transferred to the customer but the invoice has not yet been issued.

Collectability of the receivables is assessed for purposes of initial revenue recognition.

Available-for-sale financial assets

Investments in liquid bonds with low credit risk which are not held for trading are classified as available-for-sale. If the maturity is longer than one year the bonds are included in Interest-bearing securities, non-current. Bonds held as available-for-sale with a maturity shorter than one year are included in Interest-bearing securities, current. Unrealized gains and losses are recognized in OCI. When these securities are derecognized, the accumulated fair value adjustments will be included in financial income.

Dividends on available-for-sale equity instruments are recognized in the income statement as part of financial income when the Company’s right to receive payments is established.

Changes in the fair value of monetary securities denominated in a foreign currency and classified as available-for-sale are analyzed 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 on monetary securities are recognized in profit or loss; translation differences on non-monetary securities are recognized in OCI. Changes in the fair value of monetary and non-monetary securities classified as available-for-sale are recognized in OCI. When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments previously recognized in OCI are included in the income statement.

Impairment in relation to financial assets

At each balance sheet date, the Company assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is considered as evidence that the security is impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss – is removed from OCI and recognized in the income statement. Impairment losses recognized in the income statement on equity instruments are not reversed through the income statement.

An assessment of impairment of receivables is performed when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the trade receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognized in the income statement within selling expenses. When a trade receivable is finally established as uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited to selling expenses in the income statement.

Financial liabilities

Financial liabilities are recognized when the Company becomes bound to the contractual obligations of the instrument.

Financial liabilities are derecognized when they are extinguished, i.e., when the obligation specified in the contract is discharged, cancelled or expires.

Borrowings

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

Trade payables

Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

Fair value hedging and fair value hedge accounting

The purpose of fair value hedges is to hedge the variability in the fair value of fixed-rate debt (issued bonds) from changes in the relevant benchmark yield curve for its entire term by converting fixed interest payments to a floating rate (e.g., STIBOR or LIBOR) by using interest rate swaps (IRS). The credit risk/ spread is not hedged. The fixed leg of the IRS is matched against the cash flows of the hedged bond. Hereby, the fixed-rate bond/debt is converted into a floating-rate debt in accordance with the policy.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, when hedge accounting is applied. The Company only applies fair value hedge accounting for hedging fixed interest risk on borrowings. Both gains and losses relating to the interest rate swaps hedging fixed rate borrowings and the changes in the fair value of the hedged fixed rate borrowings attributable to interest rate risk are recognized in the income statement within Financial expenses. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortized to the income statement over the remaining period to maturity.

When applying fair value hedge accounting, derivatives are initially recognized at fair value at trade date and subsequently re-measured at fair value.

At the inception of the hedge, the Company documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of the hedged items.

The fair values of various derivative instruments used for hedging purposes are disclosed in Note C20, “Financial risk management and financial instruments.” Movements in the hedging reserve in OCI are shown in Note C16, “Equity and other comprehensive income.” The fair value of a hedging derivative is classified as a non-currentasset or liability when the remaining maturity of the hedged item is more than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as current assets or liabilities.

Financial guarantees

Financial guarantee contracts are initially recognized at fair value (i.e., usually the fee received). Subsequently, these contracts are measured at the higher of:

• The amount determined as the best estimate of the net expenditure required to settle the obligation according to the guarantee contract.

• The recognized contractual fee less cumulative amortization when amortized over the guarantee period, using the straight-line-method.

• The best estimate of the net expenditure comprising future fees and cash flows from subrogation rights.

Inventories

Inventories are measured at the lower of cost or net realizable value on a first-in, first-out (FIFO) basis.

Risks of obsolescence have been measured by estimating market value based on future customer demand and changes in technology and customer acceptance of new products.

A significant part of Inventories is Contract work in progress (CWIP). Recognition and derecognition of CWIP relates to the Company’s revenue recognition principles meaning that costs incurred under a customer contract are recognized as CWIP. When revenue is recognized, CWIP is derecognized and is instead recognized as Cost of sales.

In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied.

Goodwill

As from the acquisition date, goodwill acquired in a business combination is allocated to each cash-generating unit (CGU) of the Company expected to benefit from the synergies of the combination.

An annual impairment test for the CGUs to which goodwill has been allocated is performed in the fourth quarter, or when there is an indication of impairment. An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The recoverable amount is the higher of the value in use and the fair value less costs of disposal. In assessing value in use, the estimated future cash flows after tax are discounted to their present value using an after-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Application of after tax amounts in calculation, both in relation to cash flows and discount rate is applied due to that available models for calculating discount rate include a tax component. The after-tax discount rate applied by the Company is not materially different from a discounting based on before-tax future cash flows and before-tax discount rates, as required by IFRS. An impairment loss in respect of goodwill is not reversed. Write-downs of goodwill are reported under other operating expenses.

Additional disclosure is required in relation to goodwill impairment testing: see Note C2, “Critical accounting estimates and judgments” below and Note C10, “Intangible assets.”

Intangible assets

Intangible assets other than goodwill

Intangible assets other than goodwill comprise intangible assets acquired through business combinations, such as patents, customer relations, trademarks and software, as well as capitalized development expenses and separately acquired intangible assets, mainly consisting of software. At initial recognition, acquired intangible assets related to business combinations are stated at fair value and capitalized development expenses and software are stated at cost. Subsequent to initial recognition, these intangible assets are stated at initially recognized amounts less accumulated amortization and any impairment. Amortization and any impairment losses are included in Research and development expenses, which mainly consists of capitalized development expenses and technology; in Selling and administrative expenses, which mainly consists of expenses relating to customer relations and brands; and in Cost of sales.

Costs incurred for development of products to be sold, leased, or otherwise marketed or intended for internal use are capitalized as from when technological and economic feasibility has been established until the product is available for sale or use. Research and development expenses directly related to orders from customers are accounted for as a part of Cost of sales. Other research and development expenses are charged to income as incurred. Amortization of acquired intangible assets, such as patents, customer relations, trademarks, and software, is made according to the straight-line method over their estimated useful lives, not exceeding ten years.

The Company has not recognized any intangible assets with indefinite useful life other than goodwill.

Impairment tests are performed whenever there is an indication of possible impairment. Tests are performed as for goodwill, see above. However, intangible assets not yet available for use are tested annually.

Corporate assets have been allocated to cash-generating units in relation to each unit’s proportion of total net sales. The amount related to corporate assets is not significant. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.

In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied.

Property, plant, and equipment

Property, plant, and equipment consist of real estate, machinery, servers and other technical assets, other equipment, tools and installation and construction in process and advance payment. They are stated at cost less accumulated depreciation and any impairment losses.

Depreciation is charged to income, on a straight-line basis, over the estimated useful life of each component of an item of property, plant, and equipment, including buildings. Estimated useful lives are, in general, 25–50 years for real estate and 3–10 years for machinery and equipment. Depreciation and any impairment charges are included in Cost of sales, Research and development or Selling and administrative expenses.

The Company recognizes in the carrying amount of an item of property, plant, and equipment the cost of replacing a component and derecognizes the residual value of the replaced component.

Impairment testing as well as recognition or reversal of impairment of property, plant and equipment is performed in the same manner as for intangible assets other than goodwill, see description under “Intangible assets other than goodwill” above.

Gains and losses on disposals are determined by comparing the proceeds less cost to sell with the carrying amount and are recognized within Other operating income and expenses in the income statement.

Leasing

Leasing when the Company is the lessee

Leases on terms in which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that type of asset, although the depreciation period must not exceed the lease term.

Other leases are operating leases, and the leased assets under such contracts are not recognized on the balance sheet. Costs under operating leases are recognized in the income statement on a straight-line basis over the term of the lease. Lease incentives received are recognized as an integral part of the total lease expense, over the term of the lease.

Leasing when the Company is the lessor

Leasing contracts with the Company as lessor are classified as finance leases when the majority of risks and rewards are transferred to the lessee, and otherwise as operating leases. Under a finance lease, a receivable is recognized at an amount equal to the net investment in the lease and revenue is recognized in accordance with the revenue recognition principles.

Under operating leases the equipment is recorded as property, plant and equipment and revenue as well as depreciation is recognized on a straight-line basis over the lease term.

Income taxes

Income taxes in the consolidated financial statements include both current and deferred taxes. Income taxes are reported in the income statement unless the underlying item is reported directly in equity or OCI. For those items, the related income tax is also reported directly in equity or OCI. A current tax liability or asset is recognized for the estimated taxes payable or refundable for the current year or prior years.

Deferred tax is recognized for temporary differences between the book values of assets and liabilities and their tax values and for tax loss carry-forwards. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences and tax loss carry-forwards can be utilized. In the recognition of income taxes, the Company offsets current tax receivables against current tax liabilities and deferred tax assets against deferred tax liabilities in the balance sheet, when the Company has a legal right to offset these items and the intention to do so. Deferred tax is not recognized for the following temporary differences: goodwill not deductible for tax purposes, for the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and for differences related to investments in subsidiaries when it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax is measured at the tax rate that is expected to be applied to the temporary differences when they reverse, based on the tax laws that have been enacted or substantively enacted by the reporting date. An adjustment of deferred tax asset/liability balances due to a change in the tax rate is recognized in the income statement, unless it relates to a temporary difference earlier recognized directly in equity or OCI, in which case the adjustment is also recognized in equity or OCI.

The measurement of deferred tax assets involves judgment regarding the deductibility of costs not yet subject to taxation and estimates regarding sufficient future taxable income to enable utilization of unused tax losses in different tax jurisdictions. All deferred tax assets are subject to annual review of probable utilization.

In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied.

Provisions and contingent liabilities

Provisions are made when there are legal or constructive obligations as a result of past events and when it is probable that an outflow of resources will be required to settle the obligations and the amounts can be reliably estimated.

When the effect of the time value of money is material, discounting is made of estimated outflows. However, the actual outflows as a result of the obligations may differ from such estimates.

The provisions are mainly related to restructuring, customer and supplier related provisions, warranty commitments and other obligations, such as unresolved income tax and value added tax issues, claims or obligations as a result of patent infringement and other litigations and customer finance guarantees .

Product warranty commitments consider probabilities of all material quality issues based on historical performance for established products and expected performance for new products, estimates of repair cost per unit, and volumes sold still under warranty up to the reporting date.

A restructuring obligation is considered to have arisen when the Company has a detailed formal plan for the restructuring (approved by management), which has been communicated in such a way that a valid expectation has been raised among those affected. Provision for restructuring is recorded when the Company can reliably estimate the liabilities relating to the obligation. Project related provisions include estimated losses on onerous contracts, contractual penalties and undertakings. For losses on customer contracts, a provision equal to the total estimated loss is recorded when a loss from a contract is anticipated and possible to estimate reliably. These contract loss estimates include any probable penalties to a customer under a loss contract.

Other provisions include provisions for unresolved tax issues, litigations, customer finance and other provisions. The Company provides for estimated future settlements related to patent infringements based on the probable outcome of each infringement. The actual outcome or actual cost of settling an individual infringement may vary from the Company’s estimate.

The Company estimates the outcome of any potential patent infringement made known to the Company through assertion and through the Company’s own monitoring of patent-related cases in the relevant legal systems. To the extent that the Company makes the judgment that an identified potential infringement will more likely than not result in an outflow of resources, the Company records a provision based on the Company’s best estimate of the expenditure required to settle with the counterpart.

In the ordinary course of business, the Company is subject to proceedings, lawsuits and other unresolved claims, including proceedings under laws and government regulations and other matters. These matters are often resolved over a long period of time. The Company regularly assesses the likelihood of any adverse judgments in or outcomes of these matters, as well as potential ranges of possible losses. Provisions are recognized when it is probable that an obligation has arisen and the amount can be reasonably estimated based on a detailed analysis of each individual issue.

Certain present obligations are not recognized as provisions as it is not probable that an economic outflow will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. Such obligations are reported as contingent liabilities. For further detailed information, see Note C24, “Contingent liabilities.” In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied.

Post-employment benefits

Pensions and other post-employment benefits are classified as either defined contribution plans or defined benefit plans. Under a defined contribution plan, the Company’s only obligation is to pay a fixed amount to a separate entity (a pension trust fund) with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits. The related actuarial and investment risks fall on the employee. The expenditures for defined contribution plans are recognized as expenses during the period when the employee provides service.

Under a defined benefit plan, it is the Company’s obligation to provide agreed benefits to current and former employees. The related actuarial and investment risks fall on the Company.

The present value of the defined benefit obligations for current and former employees is calculated using the Projected Unit Credit Method. The discount rate for each country is determined by reference to market yields on high-quality

corporate bonds that have maturity dates approximating the terms of the Company’s obligations. In countries where there is no deep market in such bonds, the market yields on government bonds are used. The calculations are based upon actuarial assumptions, assessed on a quarterly basis, and are as a minimum prepared annually. Actuarial assumptions are the Company’s best estimate of the variables that determine the cost of providing the benefits. When using actuarial assumptions, it is possible that the actual results will differ from the estimated results or that the actuarial assumptions will change from one period to another. These differences are reported as actuarial gains and losses. They are, for example, caused by unexpectedly high or low rates of employee turnover, changed life expectancy, salary changes, remeasurement of plan assets and changes in the discount rate. Actuarial gains and losses are recognized in OCI in the period in which they occur. The Company’s net liability for each defined benefit plan consists of the present value of pension commitments less the fair value of plan assets and is recognized net on the balance sheet. When the result is a net benefit to the Company, the recognized asset is limited to the present value of any future refunds from the plan or reductions in future contributions to the plan.

Interest cost on the defined benefit obligation and interest income on plan assets is calculated as a net interest amount by applying the discount rate to the net defined benefit liability. All past service costs are recognized immediately. Swedish special payroll tax is accounted for as a part of the pension cost and the pension liability respectively.

Payroll taxes related to actuarial gains and losses are included in determining actuarial gains and losses, reported under OCI.

In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to key sources of estimation uncertainty.

Share-based compensation to employees and the Board of Directors

Share-based compensation is related to remuneration to employees, including key management personnel and the Board of Directors and could be settled either in shares or cash.

Under IFRS, a company shall recognize compensation costs for share-based compensation programs based on a measure of the value to the company of services received under the plans. The conditions under a program shall be considered as prescribed in IFRS 2.

The share-based programs are as of 2017 both share – and cash settled but as from 2017 granted plans are, except for plans for the Executive team, cash settled.

Share settled plans

Compensation costs are recognized during the vesting period, based on the fair value of the Ericsson share at the grant date, as well as considering performance – and market conditions. Examples of performance conditions could be revenue and profit targets while market conditions relates to the development of the Parent Company´s share price.

The amount charged to the income statement for these plans is reversed in equity each time of the income statement charge. The reason for this IFRS accounting principle is that compensation cost for a share settled program is a cost with no direct cash flow impact. All plans have service conditions and some of them have performance or market conditions. For further detailed information, see Note C28, “Information regarding members of the Board of Directors, the Group management and employees.”

Cash settled plans

The total compensation expense for a cash settled plan is equal to the payments made to the employees at the date of end of the service period. The fair value of the synthetic shares, being the cash equivalents of shares, is therefore reassessed and amended during the service period. Otherwise the accounting is similar to a share settled plan.

For further detailed information, see Note C28, “Information regarding members of the Board of Directors, the Group management and employees.”

Compensation to the Board of Directors

During 2008, the Parent Company introduced a share-based compensation program as a part of the remuneration to the Board of Directors (a synthetic share program). The program gives non-employee Directors elected by the General Meeting of shareholders a right to receive part of their remuneration as a future payment of an amount which corresponds to the market value of a share of class B in the Parent Company at the time of payment, as further disclosed in Note C28, “Information regarding members of the Board of Directors, the Group management and employees.” The cost for cash settlements is measured and recognized based on the estimated costs for the program on a pro rata basis during the service period, being one year. The estimated costs are remeasured during and at the end of the service period.

Segment reporting

An operating segment is a component of a company whose operating results are regularly reviewed by the Company’s chief operating decision maker, (CODM), to make decisions about resources to be allocated to the segment and assess its performance. The President and the Chief Executive Officer is defined as the CODM function in the Company.

The segment presentation, as per each segment, is based on the Company’s accounting policies as disclosed in this note. The arm’s length principle is applied in transactions between the segments.

The Company’s segment disclosure about geographical areas is based on the country in which transfer of risks and rewards occur.

For further information, see Note C3, “Segment information.”

Accounting Policy – New standards and interpretations

A number of issued new standards, amendments to standards and interpretations are not yet effective for the year ended December 31, 2017 and have not been applied in preparing these consolidated financial statements. Below is a list of applicable standards/interpretations that have been issued and are effective for periods as described per standard.

IFRS 9, “Financial instruments” is effective from January 1, 2018. The complete version of IFRS 9 replaces most of the guidance in IAS 39, which had been applied in the current reporting period ended December 31, 2017.

IFRS 15, “Revenue from Customer Contracts” is effective from January 1, 2018. This new standard replaces guidance in IAS 18 and IAS 11, which had been applied in the current reporting period ended December 31, 2017.

IFRS 16, “Leases” is effective from January 1, 2019. This new standard replaces guidance in IAS 17 Leases and the related interpretations IFRIC 4, SIC-15 and SIC-27.

The following table illustrates the impact of the implementation of IFRS 9 and IFRS 15 on equity and other balance sheet items at the transition date of January 1, 2018. IFRS 15 will be applied on a full retrospective basis which means that the comparative financial statements will be restated. IFRS 9 will be applied at January 1, 2018 which means that the opening balances at January 1, 2018 will be adjusted, but the previous periods will not be restated.

Estimated impact of IFRS 9 and IFRS 15 on Balance sheet items

					Restated				Adjusted
	As reported		IFRS 15		balance		IFRS 9		balance at
	31.12. 2017		restatement		31.12. 2017		adjustment		1.1.2018
Assets
Non-current assets
Deferred tax assets		21,228		735		21,963		407		22,370
Current assets
Inventories		24,960		587		25,547		—		25,547
Contract assets		—		13,120		13,120		—		13,120
Trade receivables		63,210		–15,105		48,105		–1,240		46,865
Equity and liabilities
Equity		100,176		–2,605		97,571		–1,401		96,170
Non-current liabilities
Borrowings, non-current		30,500		—		30,500		568		31,068
Current liabilities
Contract liabilities		—		22,121		22,121		—		22,121
Other current liabilities		62,370		–20,179		42,191		—		42,191

IFRS 9 – Financial instruments

The complete version of IFRS 9 replaces most of the guidance in IAS 39. IFRS 9 updates the classification, measurement and impairment of financial assets as well as provides new requirements for hedge accounting. The Company will apply IFRS 9 retrospectively on the required effective date, January 1, 2018, and will not restate comparative information. The transition to IFRS 9 is estimated to reduce equity by SEK 1.4 billion on January 1, 2018. The main impact from adopting IFRS 9 will be that impairment losses for trade receivables and contract assets will be calculated based on lifetime expected credit losses (ECL) instead of objective evidence that the Company will not be able to collect, as under the previous standards. This does not represent a change in expected cash flows collected by the Company. Rather, this represents a change in the timing of the recognition of losses, which in most cases is earlier under IFRS 9 compared to the previous standards. At transition, the loss allowance for trade receivables is estimated to increase by SEK 1.2 billion. The other changes from implementing IFRS 9 are described below.

• Investments in liquid bonds with low credit risk which are not held for trading were classified as available-for-sale under the previous standards.

These instruments are held in a portfolio managed on a fair value basis and will therefore be classified fair value through profit or loss (FVTPL). There will be no change in the valuation of these assets.

• Trade receivables are managed in a business model whose objective is achieved through both collection of contractual cash flows and selling of assets. Therefore, trade receivables will be classified as fair value through other comprehensive income (FVOCI).

• Customer finance assets are managed in a business model with the objective to realize cash flows through the sale of assets. Therefore, customer finance will be classified FVTPL. There will be no change in the carrying value of these assets at transition.

• Investments in equity instruments, which were classified as available-for-sale under previous standards, will be classified as FVTPL with no impact on carrying value.

• Notes, bonds, and loans issued by the Parent Company are managed on a fair value basis and will therefore be designated as FVTPL with changes in fair value due to changes in credit risk realized in OCI. As a result, the carrying value of borrowings is estimated to increase by SEK 0.6 billion. Fair value hedge accounting will not be applied to any borrowings as from 2018.

IFRS 15 – Revenue from Contracts with Customers

IFRS 15 replaces guidance in IAS 18 and IAS 11. This standard establishes a new principle-based model of recognizing revenue from customer contracts. It introduces a five-step model that requires revenue to be recognized when control over goods and services are transferred to the customer.

The Company will adopt the full retrospective method for transition which requires restatement of prior year comparatives and adjustment to equity in the earliest presented comparative period, i.e. January 1, 2016 (‘initial application date’).

The Company has completed its assessment of the impact of IFRS 15 to its financial statements for all relevant comparative periods. Additional processes were implemented as part of the quantification exercise to accurately identify material transition impact, thus enabling it to be disclosed as part of the financial reporting process.

The impact of IFRS 15 is estimated to be a net reduction to equity at transition date, January 1, 2018, of SEK 2.6 billion.

The main impacted areas are described below.

Discount in a contract

The definition of a contract in IFRS 15 is stricter than standards effective prior to 2018 (previous standards) in that a contract exists only when enforceable rights and obligations are present. The majority of the Company’s business is conducted via frame agreements. Typically, a customer purchase order, together with a frame agreement, creates a firm enforceable commitment. The stricter definition of a contract affects how discounts are accounted for, as discounts shall be applied over the value and duration of a contract.

Under the previous standards, the Company considers a broader interpretation of a contract from which it reasonably expects to derive benefit. For a business covered by frame agreement this may result in a longer timeframe for recognition of related discounts as future expected purchases are included in the assessment. The impact of IFRS 15 is that these discounts shall be recognized as a reduction in revenue earlier.

Customized solution contract

Under IFRS 15 revenue for customized solution contracts shall be recognized over time if certain criteria are met. These contracts relate to the construction of assets specifically customized for the customer and with no alternative use to the Company. IFRS 15 also requires the Company to have enforceable right to payment for performance completed to date.

The Company recognized revenue under previous standards over the duration of these contracts based on defined delivery milestones. No significant changes are expected in the method of measuring progress of completion over the duration of the contract. However, the additional requirement under IFRS 15 will ensure that revenue is recognized for performance completed to date based on enforceable right to payment that exists at that point. The Company has identified ongoing contracts where revenue will be deferred as the performance completed to date is restricted under IFRS 15 to enforceable billing rights under the contracts.

Transfer of control for equipment

Under IFRS 15, revenue shall be recognized when control over the equipment is transferred to the customer at a point in time. This assessment shall be viewed from a customer’s perspective considering indicators such as transfer of titles and risks, customer acceptance, physical possession, and billing rights. For hardware sale, transfer of control is usually deemed to occur when equipment arrives at the customer site and for software sale, when the licences are made available to the customer. Contractual terms may vary, therefore judgment will be applied when assessing the indicators of transfer of control.

The accounting treatment under previous standards focused on a risk and reward assessment. The Company has identified contracts where the transfer of control under IFRS 15 differs from the previous risk and reward assessment. The resulting impact is a delay in revenue recognition on these contracts. Under previous standards revenue is recognized on these contracts when risk of the equipment are transferred at handover points, but the definition of transfer of control in IFRS 15 means that other factors such as billing right and physical possession together indicate that transfer of control occurs at a later point.

Presentation of contract related balances

The new requirement for classification and presentation of contract related balances under IFRS 15 will result in a separate presentation of the contract asset and contract liability balances. At transition date, contract asset balance, estimated to be SEK 13.1 billion, will be presented separately within current assets. Under previous standards these balances have been included within trade receivables as the accounting policy (see Note C1) for 2017 states that trade receivables include amounts where risks and rewards have been transferred to the customer but not yet invoiced. Under IFRS 15, these balances will be presented as contract assets since the Company concluded that they relate to contract assets that are conditional on terms other than only the passage of time.

At transition date, contract liability balance, estimated to be SEK 22.1 billion, will be presented separately within current liabilities. Under previous standards these balances have been disclosed as deferred revenue within other current liabilities, and the Company concluded that they meet the definition of contract liability under IFRS 15.

The Company has considered the key areas impacted above and implemented the significant changes to the accounting principles, internal processes and internal controls framework to reflect the new revenue recognition model from January 1, 2018.

The Company expects to use a number of estimates and judgments in determining the amount and timing of revenue under IFRS 15, particularly when determining the transaction price and its allocation to performance obligations identified under the contract. Transaction price may consist of variable elements such as performance related price and contract penalties that are estimated at the commencement of the contract (and periodically thereafter). Judgment is used in the estimation process based on historical experience with the type of business and customer.

IFRS 15 also requires revenue to be allocated to each performance obligations by reference to their standalone selling prices. The Company considers that an adjusted market assessment approach should be used to estimate stand-alone selling prices for its products and services for the purposes of allocating transaction price.

As the Company will adopt the full retrospective method for IFRS 15 implementation, the impacts on equity (at initial application date of January 1, 2016) and on the income statement (for years 2016 and 2017) are presented in the tables below.

Estimated impact of IFRS 15 on Equity

	As reported		Impact of IFRS 15		Restated
December 31, 2015		147,366		–4,353		143,013
December 31, 2016		140,492		–5,235		135,257

Estimated impact of IFRS 15 on Income statement items

	As reported		Impact of IFRS 15		Restated
2017
Net sales		201,303		4,075		205,378
Cost of sales		–156,758		–703		–157,461
Gross income		44,545		3,372		47,917
Operating income (loss)		–38,126		3,372		–34,754
Taxes		4,267		–742		3,525
Net income (loss)		–35,063		2,630		–32,433
2016
Net sales		222,608		–2,292		220,316
Cost of sales		–156,243		1,160		–155,083
Gross income		66,365		–1,132		65,233
Operating income		6,299		–1,132		5,167
Taxes		–2,131		249		–1,882
Net income		1,895		–883		1,012

IFRS 16 – Leases

In January 2016, IASB issued a new lease standard, IFRS 16, that will replace IAS 17 Leases and the related interpretations IFRIC 4, SIC-15 and SIC-27. The standard requires assets and liabilities arising from all leases, with some exceptions, to be recognized on the balance sheet. This model reflects that, at the start of a lease, the lessee always obtains the right to use an asset for a period of time and has an obligation to pay for that right. The accounting for lessors will be based on the same classification as under IAS 17, operating or finance leasing. The definition of a lease is amended. The standard is effective for annual periods beginning on or after January 1, 2019. The Company will apply the new standard as from January 1, 2019. The initial assessment indicates that the main impact on the balance sheet is expected, where the Company is the lessee, primarily in contracts for real estate and vehicles. The Company plans to apply a modified transition method. The impact on the financial statements is not yet defined. In Note C27, “Leasing,” disclosure is given about future lease payments.

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C2 Critical accounting estimates and judgments

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

C2 Critical accounting estimates and judgments

C2 Critical accounting estimates and judgments

The preparation of financial statements and application of accounting standards often involve management’s judgment and the use of estimates and assumptions deemed to be reasonable at the time they are made. However, other results may be derived with different judgments or using different assumptions or estimates, and events may occur that could require a material adjustment to the carrying amount of the asset or liability affected. Examples of this could occur at change of strategy or restructuring. Judgments for accounting policies to be applied as well as estimates may also be impacted due to this. Following are the most important accounting policies subject to such judgments and the key sources of estimation uncertainty that the Company believes could have the most significant impact on the reported results and financial position.

The information in this note is grouped as per:

• Key sources of estimation uncertainty

• Judgments management has made in the process of applying the Company’s accounting policies.

Revenue recognition

Key sources of estimation uncertainty

When estimating total contract revenue and cost examples of factors to consider are customer volumes in relation to discounts, the Company’s performance in relation to the customer contracts and loss provisions. As disclosed in Note C3 “Segment information” there is no customer for which revenues exceeds 10% of the Company’s total revenue. It is, however, also disclosed that most of the sales are derived from large, multi-year agreements with a limited number of significant customers. See also comment about change in accounting estimates for customer contracts under Provisions below.

For further discussion on revenue recognition, see Note C1, “Significant accounting policies” and Note C4, “Net sales.”

Judgments made in relation to accounting policies applied

Parts of the Company’s sales are generated from large and complex customer contracts. Managerial judgment is applied regarding, among other aspects, conformance with acceptance criteria and if transfer of risks and rewards to the buyer have taken place to determine if revenue and costs should be recognized in the current period, degree of completion and the customer credit standing to assess whether payment is likely or not to justify revenue recognition.

Trade and customer finance receivables

Key sources of estimation uncertainty

The Company monitors the financial stability of its customers and the environment in which they operate to make estimates regarding the likelihood that the individual receivables will be paid. Total allowances for estimated losses as of December 31, 2017, were SEK 3.6 (1.7) billion or 5.1% (2.2%) of gross trade and customer finance receivables. For further detailed information, see Note C14, “Trade receivables and customer finance.” Credit risks for outstanding customer finance credits are regularly assessed as well, and allowances are recorded for estimated losses.

Inventory valuation

Key sources of estimation uncertainty

Inventories are valued at the lower of cost and net realizable value. Estimates are required in relation to forecasted sales volumes and inventory balances. In situations where excess inventory balances are identified, estimates of net realizable values for the excess volumes are made. Inventory allowances for estimated losses as of December 31, 2017, amounted to SEK 2.4 (2.4) billion or 9% (7%) of gross inventory. For further detailed information, see Note C13, “Inventories.”

Deferred taxes

Key sources of estimation uncertainty

Deferred tax assets and liabilities are recognized for temporary differences and for tax loss carry-forwards. Deferred tax is recognized net of valuation allowances. The valuation of temporary differences and tax loss carry-forwards, is based on management’s estimates of future taxable profits in different tax jurisdictions against which the temporary differences and loss carry-forwards may be utilized.

The largest amounts of tax loss carry-forwards are reported in Sweden, with an indefinite period of utilization (i.e. with no expiry date). For further detailed information, please refer to Note C8, “Taxes.”

At December 31, 2017, the value of deferred tax assets amounted to SEK 21.2 (15.5) billion. The deferred tax assets related to loss carry-forwards are reported as non-current assets.

Accounting for income tax, value added tax, and other taxes

Key sources of estimation uncertainty

Accounting for these items is based upon evaluation of income, value added and other tax rules in all jurisdictions where the Company performs activities. The total complexity of rules related to taxes and the accounting for these require management’s involvement in judgments regarding classification of transactions and in estimates of probable outcomes of claimed deductions and/or disputes.

Acquired intellectual property rights and other intangible assets, including goodwill

Key sources of estimation uncertainty

At initial recognition, future cash flows are estimated, to ensure that the initial carrying values do not exceed the expected discounted cash flows for the items of this type of assets. After initial recognition, impairment testing is performed whenever there is an indication of impairment, in addition goodwill impairment testing is performed at least once per year. Negative deviations in actual cash flows compared to estimated cash flows as well as new estimates that indicate lower future cash flows might result in recognition of impairment charges. As disclosed in note C10, “Intangible assets” impairment has been recognized due to significant changes during 2017 in the accounting estimates for future cash flows. Write-downs for intangible assets and goodwill amounted to SEK 17.2 billion for 2017.

At December 31, 2017, the amount of acquired intellectual property rights and other intangible assets amounted to SEK 32.0 (51.1) billion, including goodwill of SEK 27.8 (43.4) billion.

For further discussion on goodwill, see Note C1, “Significant accounting policies”. Estimates related to acquired intangible assets are based on similar assumptions and risks as for goodwill. For more information, see Note C10, “Intangible assets.”

Judgments made in relation to accounting policies applied

At initial recognition and subsequent remeasurement, management judgments are made, both for key assumptions and regarding impairment indicators. In the purchase price allocation made for each acquisition, the purchase price shall be assigned to the identifiable assets, liabilities and contingent liabilities based on fair values for these assets. Any remaining excess value is reported as goodwill.

This allocation requires management judgment as well as the definition of cash-generating units for impairment testing purposes. Other judgments might result in significantly different results and financial position in the future.

Provisions

Key sources of estimation uncertainty

Provisions are mainly related to estimates for restructuring program execution and additional costs and settlements in relation to customers and suppliers. Other sources for estimation uncertainty are patent and other litigations as well as for unresolved income tax and value added tax issues. As commented above in the initial part of this note the amounts may come to differ due future reassessments and outcomes. As disclosed in note C18, “Provisions” provisions have been recognized due to significant changes during 2017 in the accounting estimates for customer contracts resulting in identification of onerous contracts.

At December 31, 2017, provisions amounted to SEK 9.9 (6.4) billion. For further detailed information, see Note C18, “Provisions.”

Judgments made in relation to accounting policies applied

Whether a present obligation is probable or not requires judgment. The nature and type of risks for these provisions differ and management’s judgment is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not.

Contingent liabilities

Key sources of estimation uncertainty

As disclosed under ‘Provisions’ there are uncertainties in the estimated amounts. The same type of uncertainty exists for contingent liabilities.

Judgments made in relation to accounting policies applied

As disclosed under Note C1, “Significant accounting policies” a potential obligation that is not likely to result in an economic outflow is classified as a contingent liability, with no impact on the Company’s financial statements. However, should an obligation in a later period be deemed to be probable, then a provision shall be recognized, impacting the financial statements.

Pension and other post-employment benefits

Key sources of estimation uncertainty

Accounting for the costs of defined benefit pension plans and other applicable post-employment benefits is based on actuarial valuations, relying on key estimates for discount rates, future salary increases, employee turnover rates and mortality tables. The discount rate assumptions are based on rates for high-quality fixed-income investments with durations as close as possible to the Company’s pension plans. In countries where there is not a deep market in high-quality corporate bonds, the market yields on government bonds shall be applied. The impact of applying an alternative discount rate based on Swedish covered bonds is disclosed in Note C17, “Post-employment benefits.” At December 31, 2017, defined benefit obligations for pensions and other post-employment benefits amounted to SEK 87.6 (87.2) billion and fair value of plan assets to SEK 64.9 (64.5) billion. For more information on estimates and assumptions, see Note C17, “Post-employment benefits.”

Foreign exchange risks

Key sources of estimation uncertainty

Foreign exchange risk impacts the financial results of the Company, see further disclosure in Note C20, “Financial risk management and financial instruments,” under Foreign exchange risk.

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C3 Segment information

12 Months Ended

Dec. 31, 2017

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C3 Segment information

C3 Segment information

Operating segments from October 1, 2017

When determining Ericsson’s operating segments, consideration has been given to the financial reporting reviewed by the Chief Operating Decision Maker (CODM). Markets and what type of customers the products and services aim to attract has been considered, as well as the distribution channels they are sold through. Commonality regarding technology, research and development has also been taken into account. To best reflect the business focus and to facilitate comparability with peers, four operating segments are reported;

• Networks

• Digital Services

• Managed Services

• Other (includes Emerging Business, iconectiv, Media Solutions and Red Bee Media).

Segment Networks includes mobile radio access networks, transport solutions and site solutions, as well as related services such as network rollout, network tuning and customer support. 82% of the IPR licensing revenues are reported as part of segment Networks.

Segment Digital Services includes products and services for service providers in the areas of OSS & BSS, Packet Core, Communication Services, NFV and Cloud Infrastructure. It also includes ADM and consulting services. 18% of the IPR licensing revenues are reported as part of segment Digital Services.

Segment Managed services covers vendor agnostic services to manage service providers networks and includes networks managed services, IT managed services and network design and optimization.

Segment Other includes Emerging Business, iconectiv, Media Solutions and Red Bee Media. Emerging business are investment areas to support service providers in finding new revenues streams, examples being connectivity services and platforms for Internet of Things. Iconectiv is an interconnection solution for service providers and enterprises coming from the former Telcordia business. In both Media Solution and Red Bee Media, Ericsson is exploring strategic opportunities.

Market areas

The market areas are the Company’s primary sales channel with the responsibility to sell and deliver customer solutions.

The Company operates worldwide and reports its operations divided into five geographical market areas:

• Europe and Latin America

• Middle East and Africa

• North America

• North East Asia

• South East Asia, Oceania and India.

In addition, licensing revenues and the majority of segment Other are externally reported as market area Other.

Major customers

The Company does not have any customer for which revenues from transactions have exceeded 10% of the Company’s total revenues for the years 2017, 2016 or 2015.

Ericsson derives most of its sales from large, multi-year agreements with a limited number of significant customers. Out of a customer base of more than 500, mainly consisting of network operators, the 10 largest customers accounted for 45% (46%) of net sales. The largest customer accounted for approximately 7% (7%) of sales in 2017.

For more information, see Risk Factors, “Market, Technology and Business Risks.”

Previous segment structure, between January 1, 2017 and September 30, 2017

During this period, there were three operating segments: Networks, IT & Cloud and Media/Other. As from Oct 1, 2017, the segment structure as described above (Networks, Digital Services, Managed Services, Other) was introduced. Financials for the period between January 1 and September 30, 2017, has been restated to the present segment structure.

Segment Networks. Products and services with a focus on evolving and managing our customers’ telecom networks. The portfolio of radio networks and backhaul solutions are based on industry standards and can also be industrialized and adjusted to meet the demands of other industry verticals as utilities, transport and public safety. In addition, Ericsson services capabilities address operator demand in an increasingly complex network environment.

Segment IT & Cloud. Products and services providing solutions for our customers’ digital transformation journeys across the Support Systems, Telecom core and IT Cloud domains through a combination of products, technology and expertise in networks, software, cloud and business processes.

Segment Media/Other. Products and services that enable content owners, broadcasters, TV service providers and network operators to efficiently deliver, manage and monetize new TV experiences.

Operating segments 2017

	Networks			Digital Services			Managed Services			Other			Total Segments			Unallocated		Group
Segment sales		127,966			40,981			24,494			7,862			201,303			—		201,303
Net sales		127,966			40,981			24,494			7,862			201,303			—		201,303
Gross income		40,622			4,361			–1,816			1,378			44,545			—		44,545
Gross margin (%)		32	%		11	%		–7	%		18	%		22	%				22	%
Operating income (loss)		7,644			–27,672			–4,274			–13,824			–38,126			—		–38,126
Operating margin (%)		6	%		–68	%		–17	%		–176	%		–19	%		—		–19	%
Financial income																			–361
Financial expenses																			–843
Income after financial items																			–39,330
Taxes																			4,267
Net income (loss)																			–35,063
Other segment items
Share in earnings of JV and associated companies		22			8			–6			—			24			—		24
Amortization		–1,104			–2,465			–14			–765			–4,348			—		–4,348
Depreciation		–1,883			–1,268			–193			–759			–4,103			—		–4,103
Impairment losses		–1,413			–9,349			–108			–8,571			–19,441			—		–19,441
Restructuring expenses		–4,828			–2,513			–675			–485			–8,501			—		–8,501
Gains/losses on sale of investments and operations		316			–56			1			–67			194			—		194

Operating segments 2016

	Networks			Digital Services			Managed Services			Other			Total Segments			Unallocated		Group
Segment sales		140,984			45,298			27,501			8,825			222,608			—		222,608
Net sales		140,984			45,298			27,501			8,825			222,608			—		222,608
Gross income		47,099			16,081			1,062			2,123			66,365			—		66,365
Gross margin (%)		33	%		36	%		4	%		24	%		30	%		—		30	%
Operating income		17,570			–6,663			–507			–4,101			6,299			—		6,299
Operating margin (%)		12	%		–15	%		–2	%		–46	%		3	%		—		3	%
Financial income																			–115
Financial expenses																			–2,158
Income after financial items																			4,026
Taxes																			–2,131
Net income																			1,895
Other segment items
Share in earnings of JV and associated companies		11			22			—			–2			31			—		31
Amortization		–1,526			–1,923			–18			–998			–4,465			—		–4,465
Depreciation		–2,532			–1,061			–341			–487			–4,421			—		–4,421
Impairment losses		–90			–38			–12			–101			–241			—		–241
Reversals of impairment losses		5			2			1			—			8			—		8
Restructuring expenses		–3,413			–3,176			–382			–596			–7,567			—		–7,567
Gains/losses on sale of investments and operations		72			27			18			6			123			—		123

Operating segments 2015

	Networks			Digital Services			Managed Service			Other			Total Segments			Unallocated		Group
Segment sales		157,791			49,443			30,597			9,089			246,920			—		246,920
Net sales		157,791			49,443			30,597			9,089			246,920			—		246,920
Gross income		59,653			21,264			1,655			3,246			85,818			—		85,818
Gross margin (%)		38	%		43	%		5	%		36	%		35	%		—		35	%
Operating income		28,290			–3,389			–19			–3,077			21,805			—		21,805
Operating margin (%)		18	%		–7	%		—			–34	%		9	%		—		9	%
Financial income																			525
Financial expenses																			–2,458
Income after financial items																			19,872
Taxes																			–6,199
Net income																			13,673
Other segment items
Share in earnings of JV and associated companies		–1			–33			10			–14			–38			—		–38
Amortization		–2 042			–2 469			–47			–960			–5 518			—		–5,518
Depreciation		–2 865			–1 012			–388			–440			–4 705			—		–4,705
Impairment losses		—			—			—			–20			–20			—		–20
Reversals of impairment losses		10			3			1			2			16			—		16
Restructuring expenses		–2 765			–1 875			–238			–162			–5 040			—		–5,040
Gains/losses on sale of investments and operations		–32			–10			–7			—			–49			—		–49

Market areas

	Net sales						Non-current assets 5)
	2017		2016		2015		2017		2016		2015
South East Asia, Oceania & India		30,568		32,597		32,155		512		690		668
North East Asia4)		23,506		27,185		28,106		1,516		1,556		2,005
North America3)		49,621		52,003		55,063		8,387		14,650		14,870
Europe & Latin America1)2)		56,175		62,543		73,603		39,559		59,737		55,325
Middle East & Africa		25,073		28,104		33,002		63		86		139
Other1)2)3)4)		16,360		20,176		24,991		—		—		—
Total		201,303		222,608		246,920		50,037		76,719		73,007
1) Of which in Sweden6)		2,989		3,123		3,796		34,381		53,111		48,467
2) Of which in EU6)		36,072		38,525		45,585		37,895		57,759		53,759
3) Of which in the United States6)		52,322		56,748		64,299		7,092		11,053		12,325
4) Of which in China6)		14,937		19,156		18,977		1,123		530		1,547

5) Total non-current assets excluding financial instruments, deferred tax assets, and post-employment benefit assets.

6) Including IPR revenue reported under Other above.

For employee information, see Note C28, “Information regarding members of the Board of Directors, the Group management and employees.”

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C4 Net sales

12 Months Ended

Dec. 31, 2017

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C4 Net sales

C4 Net sales

Net sales

	2017		2016		2015
Sales of products and network rollout services		123,990		135,778		150,775
Professional Services sales		69,408		76,816		81,749
License revenues		7,905		10,014		14,396
Net sales		201,303		222,608		246,920
Export sales from Sweden		86,812		107,036		117,486

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C5 Expenses by nature

12 Months Ended

Dec. 31, 2017

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C5 Expenses by nature

C5 Expenses by nature

Expenses by nature

	2017		2016		2015
Goods and services		128,211		133,848		137,458
Employee remuneration		76,502		77,774		80,054
Amortization and depreciation		8,451		8,886		10,223
Impairments and obsolescence allowances, net of reversals		11,531		1,325		1,438
Financial expenses		843		2,158		2,458
Taxes		–4,267		2,131		6,199
Expenses incurred		221,271		226,122		237,830
Inventory increase/decrease (–/+)1)		4,070		–606		–394
Additions to capitalized development		–1,444		–4,483		–3,548
Expenses charged to the income statement		223,897		221,033		233,888

1) The inventory changes are based on changes of net inventory values.

Total restructuring charges in 2017 were SEK 8.5 (7.6) billion and were primarely related to the initiated cost reduction program. The restructuring charges in 2017 includes mainly severence cost and the write-down of SEK –1.3 billion of the ICT center in Canada. Restructuring charges are included in the expenses presented above.

Restructuring charges by function

	2017		2016		2015
Cost of sales		5,242		3,475		2,274
R&D expenses		2,307		2,739		2,021
Selling and administrative expenses		952		1,353		745
Total restructuring charges		8,501		7,567		5,040

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C6 Other operating income and expenses

12 Months Ended

Dec. 31, 2017

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C6 Other operating income and expenses

C6 Other operating income and expenses

Other operating income and expenses

	2017		2016		2015
Other operating income
Gains on sales of intangible assets and PP&E		47		423		363
Gains on sales of investments and operations1)		324		219		1
Other operating revenues		783		1,345		1,204
Total other operating income		1,154		1,987		1,568
Other operating expenses
Losses on sales of intangible assets and PP&E		–74		–509		–158
Losses on sales of investments and operations1)		–130		–96		–50
Write-down of goodwill2)		–12,966		—		—
Other operating expenses3)		–116		–978		–1,207
Total other operating expenses		–13,286		–1,583		–1,415

1) Includes divestments presented in Note C26, “Business combinations.”

2) For more information about the write-down of goodwill, see Note C10, “Intangible assets.”

3) Includes revaluation of cash flow hedges of SEK 0 billion (SEK –0.9 billion in 2016 and SEK –1.1 billion in 2015) partly offset by result from trading activities.

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C7 Financial income and expenses

12 Months Ended

Dec. 31, 2017

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C7 Financial income and expenses

C7 Financial income and expenses

Financial income and expenses

	2017				2016				2015
	Financial income		Financial expenses		Financial income		Financial expenses		Financial income		Financial expenses
Contractual interest on financial assets		–75		—		32		—		385		—
Of which on financial assets at fair value through profit or loss		–92		—		–316		—		–110		—
Contractual interest on financial liabilities		—		–1,027		—		–1,355		—		–1,428
Net gains/losses on:
Instruments at fair value through profit or loss1)		–231		543		–68		–729		190		–760
Of which included in fair value hedge relationships		—		2		—		71		—		152
Available for sale		40		—		—		—		—		—
Loans and receivables		–102		—		–79		—		–53		—
Liabilities at amortized cost		—		72		—		218		—		213
Other financial income and expenses		7		–431		—		–292		3		–483
Total		–361		–843		–115		–2,158		525		–2,458

1) Excluding net loss from operating assets and liabilities, SEK 451 million (net loss of SEK 234 million in 2016 and net loss of SEK 165 million in 2015), reported as Cost of sales.

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C8 Taxes

12 Months Ended

Dec. 31, 2017

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C8 Taxes

C8 Taxes

The Company’s tax benefit for 2017 was SEK 4,267 (–2,131) million or 10.8% (52.9%) of income after financial items. The tax rate may vary between years depending on business and geographical mix. Items reported for income taxes include a reasonable estimate of the impact of the material aspects of the United Sates Tax Cuts and Jobs Act, which was signed into law on December 22, 2017, on the current and deferred tax assets and liabilities.

Income taxes recognized in the income statement

	2017		2016		2015
Current income taxes for the year		–4,168		–3,654		–6,641
Current income taxes related to prior years		83		–489		–104
Deferred tax income/expense (+/–)		8,355		2,017		546
Share of taxes in joint ventures and associated companies		–3		–5		—
Tax expense/benefit		4,267		–2,131		–6,199

A reconciliation between reported tax expense for the year and the theoretical tax expense that would arise when applying statutory tax rate in Sweden, 22.0%, on the consolidated income before taxes, is shown in the table below. Tax effects of non-deductible expenses includes the effect of an impairment of goodwill. The tax effect of rate change mainly includes the effect of the reduction in the U.S. corporate income tax rate.

Reconciliation of Swedish income tax rate with effective tax rate

	2017			2016			2015
Expected tax expense at Swedish tax rate 22.0%		8,652			–886			–4,372
Effect of foreign tax rates		205			–536			–1,101
Current income taxes related to prior years		83			–489			–104
Remeasurement of tax loss carry-forwards		–150			143			–250
Remeasurement of deductible temporary differences		127			119			185
Tax effect of non-deductible expenses		–4,144			–1,357			–1,559
Tax effect of non-taxable income		480			935			981
Tax effect of changes in tax rates		–986			–60			21
Tax expense/benefit		4,267			–2,131			–6,199
Effective tax rate		10.8	%		52.9	%		31.2	%

Deferred tax balances

Deferred tax assets and liabilities are derived from the balance sheet items as shown in the table below.

Tax effects of temporary differences and tax loss carry-forwards

	Deferred tax assets		Deferred tax liabilities		Net balance
2017
Intangible assets and property, plant and equipment		894		2,374
Current assets		2,667		866
Post-employment benefits		4,886		704
Provisions		1,846		15
Other		3,556		275
Loss carry-forwards		10,712
Deferred tax assets/liabilities		24,561		4,234		20,327
Netting of assets/liabilities		–3,333		–3,333
Deferred tax balances, net		21,228		901		20,327
2016
Intangible assets and property, plant and equipment		1,223		4,173
Current assets		2,352		501
Post-employment benefits		4,382		692
Provisions		1,631		13
Other		4,557		274
Loss carry-forwards		4,883		—
Deferred tax assets/liabilities		19,028		5,653		13,375
Netting of assets/liabilities		–3,506		–3,506
Deferred tax balances, net		15,522		2,147		13,375

Changes in deferred taxes, net

	2017		2016
Opening balance, net		13,375		10,711
Recognized in net income (loss)		8,355		2,017
Recognized in other comprehensive income (loss)		–563		521
Acquisitions/disposals of subsidiaries		—		–57
Reclassification to current tax		–462		—
Currency translation differences		–378		183
Closing balance, net		20,327		13,375

Tax effects reported directly in Other comprehensive income (loss) amount to SEK –563 (521) million, of which actuarial gains and losses related to pensions constituted SEK –547 (520) million.

Deferred tax assets are only recognized in countries where the Company expects to be able to generate corresponding taxable income in the future to benefit from tax reductions.

Deferred tax assets and liabilites have been adjusted for the effect of the reduction of the U.S. corporate income tax rate.

Tax loss carry-forwards

Significant tax loss carry-forwards are related to Sweden, the United States and Germany. These countries have long or indefinite periods of utilization. Of the total SEK 10,712 (4,883) million recognized deferred tax assets related to tax loss carry-forwards, SEK 8,795 (3,774) million relates to Sweden.

Deferred tax assets regarding tax loss carry-forwards are reported to the extent that realization of the related tax benefit through future taxable profits is probable also when considering the period during which these can be utilized, as described below.

As of December 31, 2017, the recognized tax loss carry-forwards amounted to SEK 47,360 (20,929) million. The increase is primarily attributable to taxable losses realized in 2017, by Swedish legal entities. Under Swedish law, tax losses can be carried forward indefinitely. The tax value of these loss carry-forwards is reported as a tax asset based on the indefinite utilization period and the expectation that significant taxable income will be realized in future years by these Swedish legal entities to offset these loss carry-forwards.

The final years in which the recognized tax loss carry-forwards can be utilized are shown in the following table.

Tax loss carry-forwards

Year of expiration	Tax loss carry-forwards		Tax value
2018		—		—
2019		37		9
2020		74		15
2021		197		32
2022		870		218
2023 or later		46,182		10,438
Total		47,360		10,712

In addition to the table above there are tax loss carry-forwards of SEK 4,544 (3,936) million at a tax value of SEK 842 (950) million that have not been recognized due to judgments of the possibility they will be used against future taxable profits in the respective jurisdictions. The majority of these tax loss carry-forwards have an expiration date in excess of five years.

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C9 Earnings per share

12 Months Ended

Dec. 31, 2017

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C9 Earnings per share

C9 Earnings per share

Earnings per share

	2017		2016		2015
Basic
Net income (loss) attributable to stockholders of the Parent Company (SEK million)		–35,206		1,716		13,549
Average number of shares outstanding, basic (millions)		3,277		3,263		3,249
Earnings (loss) per share, basic (SEK)		–10.74		0.53		4.17
Diluted
Net income (loss) attributable to stockholders of the Parent Company (SEK million)		–35,206		1,716		13,549
Average number of shares outstanding, basic (millions)		3,277		3,263		3,249
Dilutive effect for stock purchase (millions)		—		40		33
Average number of shares outstanding, diluted (millions)		3,277		3,303		3,282
Earnings (loss) per share, diluted (SEK)		–10.74		0.52		4.13

When a company reports a loss, the number of shares used for calculating earnings diluted per share shall be the same as for basic calculation.

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C10 Intangible assets

12 Months Ended

Dec. 31, 2017

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C10 Intangible assets

C10    Intangible assets

Intangible assets 2017

	Capitalized development expenses								Goodwill		IPR1). brands and other intangible assets
			For internal use
	To be marketed		Acquired costs		Internal costs		Total		Total		Total
Cost
Opening balance		18,246		2,213		1,847		22,306		43,405		57,340
Acquisitions/capitalization		1,340		—		104		1,444		—		336
Balances regarding acquired/divested businesses2)		—		—		—		—		–122		101
Sales/disposals		—		—		–1,019		–1,019		—		–152
Translation difference		—		—		—		—		–2,484		–1,693
Closing balance		19,586		2,213		932		22,731		40,799		55,932
Accumulated amortization
Opening balance		–8,243		–2,158		–1,614		–12,015		—		–44,262
Amortization		–2,586		—		–95		–2,681		—		–1,667
Sales/disposals		—		—		1,019		1,019		—		152
Reclassification		–101		—		101		—		—		—
Translation difference		—		—		—		—		—		1,343
Closing balance		–10,930		–2,158		–589		–13,677		—		–44,434
Accumulated impairment losses
Opening balance		–2,123		–55		–37		–2,215		–18		–5,331
Impairment losses		–2,058		—		–187		–2,245		–12,966		–2,019
Closing balance		–4,181		–55		–224		–4,460		–12,984		–7,350
Net carrying value		4,475		—		119		4,593		27,815		4,148

1) Intellectual property rights.

2) For more information on acquired/divested businesses, see Note C26, “Business combinations.”

Intangible assets 2016

	Capitalized development expenses								Goodwill		IPR1), brands and other intangible assets
			For internal use
	To be marketed		Acquired costs		Internal costs		Total		Total		Total
Cost
Opening balance		15,307		2,213		1,697		19,217		41,105		55,895
Acquisitions/capitalization		4,333		—		150		4,483		—		15
Balances regarding acquired/divested businesses 2)		—		—		—		—		585		177
Sales/disposals		–1,394		—		—		–1,394		—		–870
Reclassifications		—		—		—		—		–640		640
Translation difference		—		—		—		—		2,355		1,483
Closing balance		18,246		2,213		1,847		22,306		43,405		57,340
Accumulated amortization
Opening balance		–7,995		–2,158		–1,441		–11,594		—		–41,248
Amortization		–1,642		—		–173		–1,815		—		–2,650
Sales/disposals		1,394		—		—		1,394		—		840
Translation difference		—		—		—		—		—		–1,204
Closing balance		–8,243		–2,158		–1,614		–12,015		—		–44,262
Accumulated impairment losses
Opening balance		–2,038		–55		–37		–2,130		–18		–5,331
Impairment losses		–85		—		—		–85		—		—
Closing balance		–2,123		–55		–37		–2,215		–18		–5,331
Net carrying value		7,880		—		196		8,076		43,387		7,747

1) Intellectual property rights.

2) For more information on acquired/divested businesses, see Note C26, “Business combinations.”

The total goodwill for the Company is SEK 27.8 (43.4) billion and is allocated to the operating segments Networks, with SEK 24.3 billion, Digital Services, with SEK 2.6 billion and segment Other, with SEK 0.9 billion. Managed Services does not carry goodwill. The impairment testing has been based on the segments that became effective as per October 1, 2017. More information is disclosed in Note C3 “Segment information.”

Write-down during 2017

The impairment write-down of SEK 13.0 billion was triggered by the focused business strategy and the new organizational structure implemented and externally communicated during the year. In Digital Services the strategy was shifted from a services-lead to a product-lead strategy, and actions include accelerating the introduction of the new products, streamlining the services organization and tightening the contract scoping as the sales of legacy products and related services decline in 2017. For the Media Business strategic opportunities was explored. These changes have significantly impacted the approved business plans and have had a significant impact on the estimated future cash flows used for calculating the recoverable amounts.

The following write-downs of goodwill have been made: Segment Digital Services of SEK 6.9 billion and segment Other SEK 6.1 billion (of which SEK 6.0 billion relates to Media Solutions). These amounts are reported on line item Other operating income and expenses.

In addition to goodwill, the following write-downs of intangibles and capitalized development expenses have been made: Segment Networks SEK 0.4 billion related to technologies that are no longer planned to be used, segment Digital Services SEK 1.8 billion related to intangibles, of which Sunrise technology SEK 0.5 billion and capitalized development expenses following from the focused business strategy, segment Other SEK 2.0 billion related to the changed strategy for the Media Solutions and Red Bee Media businesses, of which intangibles for Red Bee SEK 0.8 billion. These amounts are reported on line items Research and development expenses SEK 2.6 billion and Selling and administrative expenses SEK 1.6 billion.

Impairment write-down by Segment 2017

SEK billion	Networks		Digital Services		Other			Total
Goodwill		—		6.9		6.1	1)		13.0
Intangible assets		0.1		0.9		1.0			2.0
Capitalized development expenses		0.3		0.9		1.0			2.2
Total write-down		0.4		8.7		8.1			17.2

1) Of which Media Solutions SEK 6.0 billion and Red Bee Media SEK 0.1 billion.

Goodwill allocation

The goodwill in 2016 was tested for the segments Networks, IT & Cloud and Media. There was no impairment indication in the segment structure at the end of the third quarter 2017. In the fourth quarter of 2017, goodwill was reallocated to the new segments Networks, Digital Services and Other. For the allocation a relative value approach was considered but was not used, since the new segments are from an acquisition point of view essentially the same as the previous segments Networks, IT & Cloud and Media. Instead the goodwill values for the previous Networks segment was allocated to the current Networks segment, the values for the previous IT & Cloud segment was allocated to the current segment Digital Services and the values for the previous Media segment was allocated to three Cash Generating Units (CGU:s), within the current segment Other. The allocation within this segment was made using the relative value approach, except for the goodwill related to one acquisition, belonging to Media solutions, where the alternative approach was used. No goodwill was allocated to the current segment Managed Services, which was carved out of the previous Networks and IT & Cloud segments. The reason for not allocating goodwill to this segment is that it has not grown the business by external acquisitions.

Segment Other consists of three CGU:s. This is a result of the change in strategic direction and organization, where various options like partnerships, divestments and continued in-house development have been evaluated for the business operations Media Solutions, Red Bee Media and iconectiv. As a result these business operations now have cash inflows that are largely independent of the cash inflows from other CGU:s.

Impairment tests

Each operating segment is a CGU, except for segment Other which consists of three CGU:s. The goodwill impairment testing is based on five-year business plans for all CGU:s, except for two within segment Other, where fair value less cost of disposal has been used.

Value in use has been applied which, except for two CGU:s, see below, which means that the recoverable amounts for CGU:s are established as the present value of expected future cash flows based on business plans approved by management.

Estimation of future cash flows includes assumptions mainly for the following key financial parameters:

• Sales growth

• Development of operating income (based on operating margin or cost of goods sold and operating expenses relative to sales)

• Development of working capital and capital expenditure requirements.

• The assumptions regarding industry-specific market drivers and market growth are based on industry sources as input to the projections made within the Company for the development 2017–2023 for key industry parameters:

• By 2023, less than 35 years after the introduction of digital mobile technology, it’s predicted that there will be 9.1 billion mobile subscriptions.

• The number of mobile subscriptions is estimated to grow from around 7.8 billion by the end of 2017 to around 9.1 billion by the end of 2023. Out of all mobile subscriptions, 7.3 billion will be associated with a smartphone. The number of 5G subscriptions is forecasted to reach 1 billion by the end of 2023.

• By 2023, over 30 billion connected devices are forecasted, of which around 20 billion will be related to the IoT. Connected IoT devices include connected cars, machines, meters, sensors, point-of-sale terminals, consumer electronics and wearables.

• Mobile data traffic volume is estimated to increase by around eight times in the period 2017–2023. The mobile traffic is driven by smartphone users and video traffic. Smartphone traffic will grow by around nine times, and mobile video traffic is forecast to grow by around 50% annually through 2023 to account for approximately 75% of all mobile data traffic.

The assumptions are also based upon information gathered in the Company’s long-term strategy process, including assessments of new technology, the Company’s competitive position and new types of business and customers, driven by the continued integration of telecom, data, and media industries.

For the value in use method the impairment testing is based on specific estimates for the first five years and with a reduction of nominal annual growth rate to an average GDP growth of 1% (1%) per year thereafter. An after-tax discount rate of 8.5% (8.0%) has been applied for the discounting of projected after-tax cash flows. The same rate has been applied for all CGU:s, since there is a high degree of integration between them.

During the year various options including divestments have been evaluated for the two CGU:s Media Solutions and Red Bee Media. As a result of this indicative market bids became available and therefore the fair value less cost of disposal method was used for these two CGU:s. The indicative market bids have been classified as level 3 in the fair value hierarchy. There are no remaining goodwill values for these units.

In addition, when a reasonably higher discount rate of 11.0% has been applied in the impairment tests, headroom for the CGU:s Networks and iconectiv is still positive. For segment Digital Services the remaining goodwill value after the 2017 write-down is SEK 2.6 billion and the remaining value of intangible assets is SEK 2.0 billion. If the discount rate in the impairment test would have been increased by two percentage points to 10.5%, all goodwill and intangible assets for this segment would have had to be written down.

The Company’s discounting is based on after-tax future cash flows and after-tax discount rates. This discounting is not materially different from a discounting based on before-tax future cash flows and before-tax discount rates, as required by IFRS. In Note C1, “Significant accounting policies,” and Note C2, “Critical accounting estimates and judgments,” further disclosures are given regarding goodwill impairment testing. The assumptions for 2016 are disclosed in Note C10, “Intangible assets” in the Annual Report of 2016.

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C11 Property, plant and equipment

12 Months Ended

Dec. 31, 2017

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C11 Property, plant and equipment

C11    Property, plant and equipment

Property, plant and equipment 2017

	Real estate		Machinery and other technical assets		Other equipment, tools and installations		Construction in progress and advance payments		Total
Cost
Opening balance		7,132		4,286		33,134		2,648		47,200
Additions		150		183		1,317		2,227		3,877
Balances regarding acquired/divested businesses		–9		–134		–12		—		–155
Sales/disposals		–1,323		–457		–5,387		–185		–7,352
Reclassifications		757		56		2,226		–3,039		—
Translation difference		–197		–115		–664		–43		–1,019
Closing balance		6,510		3,819		30,614		1,608		42,551
Accumulated depreciation
Opening balance		–3,629		–3,651		–23,061		—		–30,341
Depreciations		–458		–279		–3,366		—		–4,103
Balances regarding divested businesses		9		85		11		—		105
Sales/disposals		349		442		4,263		—		5,054
Translation difference		99		93		491		—		683
Closing balance		–3,630		–3,310		–21,662		—		–28,602
Accumulated impairment losses
Opening balance		–43		–3		–79		—		–125
Impairment losses		–297		–42		–1,872		—		–2,211
Sales/disposals		200		4		1,050		—		1,254
Translation difference		—		–1		–9		—		–10
Closing balance		–140		–42		–910		—		–1,092
Net carrying value		2,740		467		8,042		1,608		12,857

Contractual commitments for the acquisition of property, plant and equipment as per December 31, 2017, amounted to SEK 350 (476) million.

In 2017 impairment losses have been made of SEK 2.2 (0.2) billion, where SEK 1.2 billion were related to the divest and sale of the ICT center in Canada, as rapid technology development allows the Company to consolidate test activities to the two remaining centers in Sweden. The impairment loss of SEK 2.2 billion by segment was Networks SEK 1.0 billion, Digital Services SEK 0.7 billion, Managed Services SEK 0.1 billion and Other SEK 0.4 billion.

Property, plant and equipment 2016

	Real estate		Machinery and other technical assets		Other equipment, tools and installations		Construction in progress and advance payments		Total
Cost
Opening balance		6,475		4,560		28,753		4,750		44,538
Additions		177		148		1,519		4,285		6,129
Balances regarding acquired/divested businesses		–1		–53		2		—		–52
Sales/disposals		–1,410		–596		–2,610		–269		–4,885
Reclassifications		1,633		110		4,570		–6,315		–2
Translation difference		258		117		900		197		1,472
Closing balance		7,132		4,286		33,134		2,648		47,200
Accumulated depreciation
Opening balance		–3,634		–3,779		–21,208		—		–28,621
Depreciations		–506		–330		–3,585		—		–4,421
Balances regarding divested businesses		2		26		7		—		35
Sales/disposals		643		534		2,434		—		3,611
Reclassifications		4		1		–4		—		1
Translation difference		–138		–103		–705		—		–946
Closing balance		–3,629		–3,651		–23,061		—		–30,341
Accumulated impairment losses
Opening balance		—		–10		–6		—		–16
Impairment losses		–43		–1		–112		—		–156
Reversals of impairment losses		—		8		—		—		8
Sales/disposals		—		—		39		—		39
Translation difference		—		—		—		—		—
Closing balance		–43		–3		–79		—		–125
Net carrying value		3,460		632		9,994		2,648		16,734

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C12 Financial assets, non-current

12 Months Ended

Dec. 31, 2017

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C12 Financial assets, non-current

C12    Financial assets, non-current

Equity in joint ventures and associated companies

	2017		2016
Opening balance		775		1,210
Share in earnings		24		31
Distribution of capital stock		–95		—
Taxes		–3		–5
Dividends		–77		–84
Divested business		—		–15
Translation difference		—		–362
Closing balance1)		624		775

1) Goodwill, net, amounts to SEK 1 (1) million.

There were no major holdings in joint ventures or associated companies in 2017. Significant holdings from previous years are specified below.

All companies apply IFRS in the reporting to the Company as issued by IASB.

Ericsson’s share of assets, liabilities and income in associated company Rockstar Consortium

	2017			2016			2015
Percentage in ownership interest		21.26	%		21.26	%		21.26	%
Total assets		20			22			21
Total liabilities		—			—			5
Net assets (100%)		20			22			16
Company’s share of net assets (21.26%)		3			3			3
Net sales		—			—			—
Income after financial items		—			—			–642
Net income and total comprehensive income (100%)		—			—			–642
Company’s share of net income and other comprehensive income (21.26%)		—			—			–137

Rockstar Consortium LLC (Rockstar) is a company that was formed in 2011 by Apple, Blackberry, Ericsson, Microsoft, and Sony to purchase approximately 4,000 patent assets out of the original about 6,000 from the Nortel bankruptcy estate. On December 23, 2014, it was agreed between the owners of Rockstar and RPX Corporation (RPXC) that RPX shall purchase the remaining patents of Rockstar. The transaction occured in 2015 and after that the main part of the capital stock has been distributed to the owners. Rockstar Consortium has concluded its operations.

Financial assets, non-current

	Other investments in shares and participations				Customer finance, non-current				Interest-bearing securities, non-current				Derivatives, non-current				Other financial assets, non-current
	2017		2016		2017		2016		2017		2016		2017		2016		2017		2016
Cost
Opening balance		2,516		2,567		2,137		1,755		7,586		—		—		452		4,648		5,365
Additions		146		133		1,788		2,704		54,687		7,593		86		—		503		785
Disposals/repayments/deductions		–43		–267		–1,100		–2,333		–37,241		—		—		—		–375		–187
Change in value in funded pension plans1)		—		—		—		—		—		—		—		—		1,300		–1,622
Revaluation		99		2		—		—		73		–7		—		—		27		62
Reclassification		—		—		–570		–12		—		—		—		–452		—		—
Translation difference		–50		81		–18		23		—		—		—		—		–169		245
Closing balance		2,668		2,516		2,237		2,137		25,105		7,586		86		—		5,934		4,648
Accumulated impairment losses/ allowances
Opening balance		–1,337		–1,292		–9		–16		—		—		—		—		–206		–183
Impairment losses/allowances		–126		37		–56		–5		—		—		—		—		–1		–1
Disposals/repayments/deductions		25		–1		6		12		—		—		—		—		77		–1
Translation difference		49		–81		—		—		—		—		—		—		7		–21
Closing balance		–1,389		–1,337		–59		–9		—		—		—		—		–123		–206
Net carrying value		1,279		1,179		2,178		2,128		25,105		7,586		86		—		5,811		4,442

1) This amount includes asset ceiling. For further information, see Note C17, “Post-employment benefits.”

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C13 Inventories

12 Months Ended

Dec. 31, 2017

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C13 Inventories

C13    Inventories

Inventories

	2017		2016
Raw materials, components, consumables and manufacturing work in progress		4,015		5,043
Finished products and goods for resale		8,864		12,183
Contract work in progress		12,081		13,081
Inventories, net		24,960		30,307

The amount of inventories, excluding contract work in progress, recognized as expense and included in Cost of sales was SEK 58,901 (63,386) million.

Contract work in progress includes amounts related to delivery-type contracts and service contracts with ongoing work in progress.

Reported amounts are net of obsolescence allowances of SEK 2,425 (2,412) million.

Movements in obsolescence allowances

	2017		2016		2015
Opening balance		2,412		2,555		2,326
Additions, net		1,319		725		1,480
Utilization		–1,210		–981		–1,295
Translation difference		–91		113		44
Balances regarding acquired/divested businesses		–5		—		—
Closing balance		2,425		2,412		2,555

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C14 Trade receivables and customer finance

12 Months Ended

Dec. 31, 2017

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C14 Trade receivables and customer finance

C14    Trade receivables and customer finance

Trade receivables and customer finance

	2017		2016
Trade receivables excluding associated companies and joint ventures		66,487		69,430
Allowances for impairment		–3,335		–1,403
Trade receivables, net		63,152		68,027
Trade receivables related to associated companies and joint ventures		58		90
Trade receivables, total		63,210		68,117
Customer finance credits		4,223		5,003
Allowances for impairment		–292		–250
Customer finance credits, net		3,931		4,753
Of which current		1,753		2,625
Credit commitments for customer finance		9,706		13,082

Days sales outstanding (DSO) were 101 (95) in December 2017.

Movements in allowances for impairment

	Trade receivables				Customer finance
	2017		2016		2017		2016
Opening balance		1,403		1,202		250		286
Additions		3,544		356		85		78
Utilized		–1,485		–156		–3		–108
Reversal of excess amounts		–48		–28		–27		–8
Reclassification		–66		—		—		—
Translation difference		–13		29		–13		2
Closing balance		3,335		1,403		292		250

Aging analysis as per December 31

							Of which past due in				Of which past due and
			Of which		Of which		the following time intervals				impaired in the following time intervals
	Total		neither impaired nor past due		impaired, not past due		less than 90 days		90 days or more		less than 90 days		90 days or more
2017
Trade receivables, excluding associated companies and joint ventures		66,487		56,059		15		2,924		4,169		220		3,100
Allowances for impairment		–3,335		—		–15		—		—		–220		–3,100
Customer finance credits		4,223		1,841		2,029		4		99		29		221
Allowances for impairment		–292		—		–104		—		—		–20		–168
2016
Trade receivables, excluding associated companies and joint ventures		69,430		58,198		62		4,406		5,423		10		1,331
Allowances for impairment		–1,403		—		–62		—		—		–10		–1,331
Customer finance credits		5,003		3,250		1,480		10		3		24		236
Allowances for impairment		–250		—		–64		—		—		–6		–180

Credit risk

Credit risk is divided into three categories: credit risk in trade receivables, customer finance risk and financial credit risk, see Note C1 “Significant accounting policies” and Note C20, “Financial risk management and financial instruments.”

Credit risk in trade receivables

Credit risk in trade receivables is governed by a policy applicable to all legal entities in the Company. The purpose of the policy is to:

• Avoid credit losses through establishing internal standard credit approval routines in all the Company’s legal entities

• Ensure monitoring and risk mitigation of defaulting accounts, i.e. events of non-payment and/or delayed payments from customers

• Ensure efficient credit management within the Company and thereby improve days sales outstanding and cash flow

• Define escalation path and approval process for customer credit limits.

The credit worthiness of all customers is regularly assessed. Through credit management system functionality, credit checks are performed every time a sales order or an invoice is generated in the source system. These are based on the credit risk set on the customer. Credit blocks appear if past due receivables are higher than permitted levels. Release of a credit block requires authorization.

Letters of credits are used as a method for securing payments from customers operating in emerging markets, in particular in markets with unstable political and/or economic environments. By having banks confirming the letters of credit, the political and commercial credit risk exposures to the Company are mitigated.

Trade receivables amounted to SEK 66,487 (69,430) million as of December 31, 2017. Provisions for expected losses are regularly assessed and amounted to SEK 3,335 (1,403) million as of December 31, 2017. The Company’s nominal credit losses have, however, historically been low. The amounts of trade receivables closely follow the distribution of the Company’s sales and do not include any major concentrations of credit risk by customer or by geography. The five largest customers represented 19% (27%) of the total trade receivables in 2017.

Customer finance credit risk

All major commitments to finance customers are made only after approval by the Finance Committee of the Board of Directors, according to the established credit approval process.

Prior to the approval of new facilities reported as customer finance, an internal credit risk assessment is conducted in order to assess the credit rating of each transaction, for political and commercial risk. The credit risk analysis is made by using an assessment tool, where the political risk rating is identical to the rating used by all Export Credit Agencies within the OECD. The commercial risk is assessed by analyzing a large number of parameters, which may affect the level of the future commercial credit risk exposure. The output from the assessment tool for the credit rating also includes an internal pricing of the risk. This is expressed as a risk margin per annum over funding cost. The reference pricing for political and commercial risk, on which the tool is based, is reviewed using information from Export Credit Agencies and prevailing pricing in the bank loan market for structured financed deals. The objective is that the internally set risk margin shall reflect the assessed risk and that the pricing is as close as possible to the current market pricing. A reassessment of the credit rating for each customer finance facility is made on a regular basis.

Risk provisions related to customer finance risk exposures are only made upon events which occur after the financing arrangement has become effective and which are expected to have a significant adverse impact on the borrower’s ability and/or willingness to service the outstanding debt. These events can be political (normally outside the control of the borrower) or commercial, e.g. a borrower’s deteriorated creditworthiness.

As of December 31, 2017, the Company’s total outstanding exposure related to customer finance was SEK 4,223 (5,003) million. As of December 31, 2017, the Company also had unutilized customer finance commitments of SEK 9,706 (13,082) million. Customer finance is arranged for infrastructure projects in different geographic markets and for a large number of customers. As of December 31, 2017, there were a total of 79 (81) customer finance arrangements originated by or guaranteed by the Company. The five largest facilities represented 64% (55%) of the total credit exposure in 2017.

Total outstanding customer finance exposure per market area as of December 31

Percent	2017		2016
South East Asia, Oceania and India		24		17
North East Asia		—		—
North America		7		7
Europe and Latin America		12		19
Middle East and Africa		56		56
Other		1		1
Total		100		100

The effect of risk provisions and reversals for customer finance affecting the income statement amounted to a net negative impact of SEK 59 million in 2017 compared to a net positive impact of SEK 24 million in 2016. Credit losses amounted to SEK 24 (108) million in 2017.

Security arrangements for customer finance facilities normally include pledges of equipment, pledges of certain assets belonging to the borrower and pledges of shares in the operating company. If available, third-party risk coverage is, as a rule, arranged. “Third-party risk coverage” means that a financial payment guarantee covering the credit risk has been issued by a bank, an export credit agency or other financial institution. A credit risk cover from a third-party may also be issued by an insurance company. A credit risk transfer under a sub-participation arrangement with a bank can also be arranged. In this case the entire credit risk and the funding is taken care of by the bank for the part that they cover.

Information about guarantees related to customer finance is included in Note C24, “Contingent liabilities,” and information about leasing is included in Note C27, “Leasing.”

The table below summarizes the Company’s outstanding customer finance as of December 31, 2017 and 2016.

Outstanding customer finance

	2017		2016
Customer finance credits		4,223		5,003
Financial guarantees for third-parties		77		124
Accrued interest		14		16
Less third-party risk coverage		–505		–805
Ericsson’s risk exposure, including financial guarantees		3,809		4,338

Transfers of financial assets

Transfers where the Company has continuing involvement

During 2017, there were no new financial assets transferred where the Company had continuing involvement. However, during 2016 the Company derecognized financial assets where it had continuing involvement. A repurchase of these assets would amount to SEK 380 (630) million. No assets or liabilities were recognized in relation to the continuing involvement.

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C15 Other current receivables

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

C15 Other current receivables

C15    Other current receivables

Other current receivables

	2017		2016
Prepaid expenses		2,546		4,501
Accrued revenues		1,342		1,584
Advance payments to suppliers		338		1,384
Derivatives with a positive value1)		1,207		1,108
Taxes		15,291		13,974
Other		1,576		1,880
Total		22,300		24,431

1) See also Note C20, “Financial risk management and financial instruments.”

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C16 Equity and other comprehensive income (loss)

12 Months Ended

Dec. 31, 2017

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C16 Equity and other comprehensive income (loss)

C16    Equity and other comprehensive income (loss)

Capital stock 2017

Capital stock at December 31, 2017, consisted of the following:

Capital stock

Parent Company	Number of shares		Capital stock (SEK million)
Class A shares		261,755,983		1,309
Class B shares		3,072,395,752		15,363
Total		3,334,151,735		16,672

The capital stock of the Parent Company is divided into two classes: Class A shares (quota value SEK 5.00) and Class B shares (quota value SEK 5.00). Both classes have the same rights of participation in the net assets and earnings. Class A shares, however, are entitled to one vote per share while Class B shares are entitled to one tenth of one vote per share.

At December 31, 2017, the total number of treasury shares was 50,265,499 (62,192,390 in 2016 and 49,367,641 in 2015) Class B shares. Ericsson repurchased 3.0 million shares in 2017 in relation to the Stock Purchase Plan.

Reconciliation of number of shares

	Number of shares		Capital stock (SEK million)
Number of shares Jan 1, 2017		3,331,151,735		16,657
Number of shares Dec 31, 2017		3,334,151,735		16,672

For further information about the number of shares, see the chapter Share Information.

Dividend proposal

The Board of Directors will propose to the Annual General Meeting 2018 a dividend of SEK 1.00 per share (SEK 1.00 in 2017 and SEK 3.70 in 2016).

Additional paid in capital

This relates to payments made by owners and includes share premiums paid.

Retained earnings

Retained earnings, including net income for the year, comprise the earned profits of the Parent Company and its share of net income in subsidiaries, joint ventures and associated companies. Retained earnings also include:

Remeasurements related to post-employment benefits

Actuarial gains and losses resulting from experience-based events and changes in actuarial assumptions, fluctuations in the effect of the asset ceiling, and adjustments related to the Swedish special payroll taxes.

Revaluation of other investments in shares and participations

The fair value reserve comprises the cumulative net change in the fair value of available-for-sale financial assets.

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.

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C17 Post-employment benefits

12 Months Ended

Dec. 31, 2017

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C17 Post-employment benefits

C17    Post-employment benefits

Ericsson sponsors a number of post-employment benefit plans throughout the Company, which are in line with market practice in each country. The year 2017 was characterized by a decrease in discount rates in most plans. In total, financial assumption changes resulted in actuarial losses on defined benefit obligations of SEK 2.1 billion. The development of plan assets was greater than expected resulting in actuarial gains of SEK 2.4 billion.

Swedish plans

Sweden has both defined benefit and defined contribution plans based on collective agreement between the parties in the Swedish labor market:

• A defined benefit plan, known as ITP 2 (occupational pension for salaried employees in manufacturing industries and trade), complemented by a defined contribution plan, known as ITPK (supplementary retirement benefits). This is a final salary-based plan.

• A defined contribution plan, known as ITP 1, for employees born in 1979 or later.

• A defined contribution plan ITP 1 or alternative ITP, for employees earning more than 10 income base amount and who have opted out of the defined benefit plan ITP 2, where rules are set by the Company and approved by each employee selected to participate.

The Company has by far most of its Swedish pension liabilities under defined benefit plans which are funded to 53% (55%) through Ericsson Pensionsstiftelse (a Swedish Pension Foundation). The Pensionsstiftelse covers the liability up to the value of the defined benefit obligation based on Swedish GAAP calculations. There are no funding requirements for the Swedish plans. The disability and survivors’ pension part of the ITP-plan is secured through an insurance solution with the company Alecta, see section about Multi-employer plans.

The benefit payments are made by the Company since the liability is growing and the necessary surplus therefore is not yet reached. For the unfunded plans the Company meets the payment obligation when it falls due. The responsibility for governance of the plans and the plan assets lies with the Company and the Pensionsstiftelse. The Swedish Pensionsstiftelse is managed on the basis of a capital preservation strategy and the risk profile is set accordingly. Traditional asset-liability matching (ALM) studies are undertaken on a regular basis to allocate within different asset classes.

The plans are exposed to various risks, e.g., a sudden decrease in the bond yields, which would lead to an increase in the plan liability. A sudden instability in the financial market might also lead to a decrease in fair value of plan assets held by the Pensionsstiftelse, as the holdings of plan assets partly are exposed to equity markets; however, this may be partly offset by higher values in fixed income holdings. Swedish plans are linked to inflation and higher inflation will most likely lead to a higher liability. For the time being, inflation is a low risk factor to the Swedish plans as actual rate of inflation has not reached the ceiling target set by the Central Bank of Sweden.

Multi-employer plans

As before, the Company has secured the disability and survivors’ pension part of the ITP Plan through an insurance solution with the insurance company Alecta. Although this part of the plan is classified as a multi-employer defined benefit plan, it is not possible to get sufficient information to apply defined benefit accounting, as for most of the accrued pension benefits in Alecta, information is missing on the allocation of earnings process between employers. Full vesting is instead registered on the last employer. Alecta is not able to calculate a breakdown of assets and provisions for each respective employer, and therefore, the disability and survivors’ pension portion of the ITP Plan has been accounted for as a defined contribution plan.

Alecta has a collective funding ratio which acts as a buffer for its insurance commitments to protect against fluctuations in investment return and insurance risks. Alecta’s target ratio is 140% and reflects the fair value of Alecta’s plan assets as a percentage of plan commitments, then measured in accordance with Alecta’s actuarial assumptions, which are different from those in IAS 19R. Alecta’s collective funding ratio was 154% (149%) as of December 31, 2017. The Company’s share of Alecta’s saving premiums is 0.5%; the total share of active members in Alecta are 2.0%. The expected contribution to the plan is SEK 94 million for 2018.

Contingent liabilities / Assets pledged as collateral

Contingent liabilities include the Company’s mutual responsibility as a credit insured company of PRI Pensionsgaranti in Sweden. This mutual responsibility can only be imposed in the instance that PRI Pensionsgaranti has consumed all of its assets, and it amounts to a maximum of 2% of the Company’s pension liability in Sweden. The Company has a pledged business mortgage of SEK 4.5 billion to PRI Pensionsgaranti.

US plans

The Company operates both defined contribution and defined benefit pension plans in the US, which are a combination of final salary pension plans and contribution-based arrangements. The final salary pension plans provide benefits to members in the form of a guaranteed level of pension payable for life. The level of benefits provided depends on members’ length of service and their salary in the final years leading up to retirement. Retirees generally do not receive inflationary increases once in payment.

The other type of plan is a contribution-based pension plan, which provides a benefit determined using a “cash balance” approach. The balance is credited monthly with interest credits and contribution credits, based on a combination of current year salary and length of service.

The majority of benefit payments are from trustee-administered funds; however, there are also a number of unfunded plans where the Company meets the benefit payment obligation as it falls due. In the US, the Company’s policy is at least to meet or exceed the funding requirements of federal regulations. The funded level in the US Pension Plan is above the point at which minimum funding would be required for fiscal year 2017.

Plan assets held in trusts are governed by local regulations and practice, as is the nature of the relationship between the Company and the trustees (or equivalent) and their composition. Responsibility for governance of the plans – including investment decisions and contribution schedules – lies with the Plan Administrative Committee (PAC). The PAC is composed of representatives from the Company.

The Company’s plans are exposed to various risks associated with pension plans, i.e., a sudden decrease in bond yields would lead to an increase in the present value of the defined benefit obligation. A sudden instability in the financial markets might also lead to a decrease in the fair value of plan assets held by the trust. Pension benefits in the US are not linked to inflation; however, higher inflation poses the risk of increased final salaries being used to determine benefits for active employees. There is also a risk that the duration of payments to retirees will exceed the life expectancy in mortality tables.

UK plans

The Company operates both defined benefit and defined contribution plans in the UK. Most defined benefit plans in the UK are closed to future pension accrual.

The defined benefit plans provide benefits to members in the form of a guaranteed level of pension payable for life. The level of benefits provided is defined by the Trust Deed & Rules and depends on members’ length of service and their salary. Pensions in payment are generally updated in line with the UK retail price index, subject to caps defined by the rules.

The plans’ assets are held in trusts and are invested in a diverse range of assets. The plans are governed by local regulations and responsibility for the governance of the plans lies with the Trustee Directors, who are appointed by the Company from its employees and from the plans’ members. Independent professional trustees sit on a number of the Boards.

The plans remain exposed to various risks associated with defined benefit plans, e.g. a decrease in bond yields or increase in inflation would lead to an increase in the present value of the defined benefit obligation. Alternatively, the duration of payments to retirees could exceed the life expectancy assumed in the current mortality tables leading to an increase in liabilities. A sudden instability in the financial markets might also lead to a decrease in the fair value of the plans’ assets. The Company and Trustees’ aim is to reduce the plans’ exposure to the key risks over time.

Other plans

The Company also sponsors plans in other countries. The main plans are in Brazil and Ireland. The plan in Brazil is a pension plan wholly funded with a net surplus of assets. The plan in Ireland is a final salary pension plan and is partly funded. The plans are managed by corporate trustees with directors appointed partly by the local company and partly by the plan members. The trustees are independent from the local company and subject to the specific country’s pension laws.

Amount recognized in the Consolidated balance sheet

Amount recognized in the Consolidated balance sheet

	Sweden		US		UK		Other		Total
2017
Defined benefit obligation (DBO)		41,166		21,005		13,246		12,228		87,645
Fair value of plan assets		21,938		20,402		14,599		8,000		64,939
Deficit/surplus (+/–)		19,228		603		–1,353		4,228		22,706
Plans with net surplus, excluding asset ceiling 1)		—		83		1,685		535		2,303
Provision for post-employment benefits 2)		19,228		686		332		4,763		25,009
2016
Defined benefit obligation (DBO)		38,202		22,710		14,088		12,175		87,175
Fair value of plan assets		20,956		21,545		14,061		7,923		64,485
Deficit/surplus (+/–)		17,246		1,165		27		4,252		22,690
Plans with net surplus, excluding asset ceiling 1)		—		—		481		552		1,033
Provision for post-employment benefits 2)		17,246		1,165		508		4,804		23,723

1) Plans with a net surplus, i.e., where plan assets exceed DBO, are reported as Other financial assets, non-current: see Note C12, “Financial assets.” The asset ceiling decreased during the year by SEK 30 million from SEK 484 million in 2016 to SEK 454 million in 2017.

2) Plans with net liabilities are reported in the balance sheet as Post-employment benefits, non-current.

Total pension cost recognized in the Consolidated income statement

The costs for post-employment benefits within the Company are distributed between defined contribution plans and defined benefit plans, with a trend toward defined contribution plans.

Pension costs for defined contribution plans and defined benefit plans

	Sweden		US		UK		Other		Total
2017
Pension cost for defined contribution plans		1,096		473		173		1,228		2,970
Pension cost for defined benefit plans		1,824		168		38		592		2,622
Total		2,920		641		211		1,820		5,592
Total pension cost expressed as a percentage of wages and salaries										9.5	%
2016
Pension cost for defined contribution plans		1,061		687		185		1,287		3,220
Pension cost for defined benefit plans		1,314		167		38		595		2,114
Total		2,375		854		223		1,882		5,334
Total pension cost expressed as a percentage of wages and salaries										8.9	%
2015
Pension cost for defined contribution plans		1,136		729		136		1,239		3,240
Pension cost for defined benefit plans		1,806		81		57		609		2,553
Total		2,942		810		193		1,848		5,793
Total pension cost expressed as a percentage of wages and salaries										9.5	%

Change in the net defined benefit obligation

Change in the net defined benefit obligation

	Present value of obligation 20172)		Fair value of plan assets 2017		Total 2017			Present value of obligation 20162)		Fair value of plan assets 2016		Total 2016
Opening balance		87,175		–64,485		22,690			78,141		–58,178		19,963
Reclassification		—		—		—			104		–104		—
Included in the income statement
Current service cost		1,793		—		1,793			1,853		—		1,853
Past service cost and gains and losses on settlements		296		—		296			–182		—		–182
Interest cost/income (+/–)		2,198		–1,892		306			2,451		–2,176		275
Taxes and administrative expenses		143		45		188			53		49		102
Other		–13		2		–11			–16		2		–14
		4,417		–1,845		2,572	3)		4,159		–2,125		2,034	3)
Remeasurements
Return on plan assets excluding amounts in interest expense/income		—		–2,438		–2,438			—		–4,280		–4,280
Actuarial gains/losses (–/+) arising from changes in demographic assumptions		–396		—		–396			–405		—		–405
Actuarial gains/losses (–/+) arising from changes in financial assumptions		2,110		—		2,110			8,255		—		8,255
Experience-based gains/losses (–/+)		–219		—		–219			–1,550		—		–1,550
		1,495		–2,438		–943			6,300		–4,280		2,020
Other changes
Translation difference		–2,275		2,262		–12			1,002		–834		168
Contributions and payments from:
Employers 1)		–880		–583		–1,463			–902		–562		–1,464
Plan participants		27		–23		4			28		–22		6
Payments from plans:
Benefit payments		–2,173		2,173		—			–1,568		1,568		—
Settlements		–141		—		–141			—		—		—
Business combinations and divestments		—		—		—			–89		52		–37
Closing balance		87,645		–64,939		22,706			87,175		–64,485		22,690

1) The expected contribution to the plans is SEK 1,364 million during 2018.

2) The weighted average duration of DBO is 20.1 years.

3) Excluding the impact of the asset ceiling of SEK 50 million in 2017 and SEK 80 million in 2016.

Present value of the defined benefit obligation

	Sweden		US		UK		Other		Total
2017
DBO, closing balance		41,166		21,005		13,246		12,228		87,645
Of which partially or fully funded		40,665		20,319		13,246		9,465		83,695
Of which unfunded		501		686		—		2,763		3,950
2016
DBO, closing balance		38,202		22,710		14,088		12,175		87,175
Of which partially or fully funded		37,679		21,956		14,088		9,361		83,084
Of which unfunded		523		754		—		2,814		4,091

Asset allocation by asset type and geography

	Sweden		US		UK		Other		Total		Of which unquoted
2017
Cash and cash equivalents		3,124		382		834		88		4,428		0	%
Equity securities		4,079		795		3,116		2,432		10,422		16	%
Debt securities		8,663		17,650		9,331		3,494		39,138		68	%
Real estate		4,269		—		244		212		4,725		100	%
Investment funds		1,803		1,478		160		208		3,649		66	%
Assets held by insurance company		—		—		—		1,200		1,200		100	%
Other		—		97		914		366		1,377		41	%
Total		21,938		20,402		14,599		8,000		64,939
Of which real estate occupied by the Company		—		—		—		—		—
Of which securities issued by the Company		—		—		—		—		—
2016
Cash and cash equivalents		1,819		414		420		373		3,026		14	%
Equity securities		3,983		692		2,526		1,669		8,870		19	%
Debt securities		8,791		18,286		10,010		3,888		40,975		70	%
Real estate		4,093		—		132		198		4,423		100	%
Investment funds		2,270		1,505		270		206		4,251		65	%
Assets held by insurance company		—		—		—		1,125		1,125		100	%
Other		—		648		703		464		1,815		69	%
Total		20,956		21,545		14,061		7,923		64,485
Of which real estate occupied by the Company		—		—		—		—		—
Of which securities issued by the Company		—		—		—		—		—

Actuarial assumptions

Financial and demographic actuarial assumptions ¹⁾

	2017			2016
Financial assumptions
Discount rate, Sweden		1.6	%		1.8	%
Discount rate, US		3.7	%		4.1	%
Discount rate, UK		2.6	%		2.7	%
Discount rate, weighted average of Total		2.5	%		2.8	%
Demographic assumptions
Life expectancy after age 65 in years, weighted average		23			23

1) Weighted average for the Group for disclosure purposes only. Country-specific assumptions were used for each actuarial calculation.

Actuarial assumptions are assessed on a quarterly basis. See also Note C1, “Significant accounting policies” and Note C2, “Critical accounting estimates and judgments.”

Sweden

The defined benefit obligation (DBO) has been calculated using a discount rate based on the yields of Swedish government bonds. IAS 19 Employee Benefits prescribes that if there is not a deep market in high-quality corporate bonds, the market yields on government bonds shall be applied for the pension liability calculation. As of December 31, 2017, the discount rate applied in Sweden was 1.6% compared to 1.8% as of December 31, 2016. If the discount rate had been based on Swedish covered bonds, the discount rate would have been 2.8% as of December 31, 2017 and 3.1% as of December 31, 2016. If these discount rates based on Swedish covered bonds had been applied for the pension liability calculation, the DBO would have been approximately SEK 9 billion lower as of both December 31, 2017 and December 31, 2016.

US and UK

The defined benefit obligation has been calculated using a discount rate based on yields of high-quality corporate bonds, where “high-quality” has been defined as a rating of AA and above.

Total remeasurements in Other comprehensive income (loss) related to post-employment benefits

	2017		2016
Actuarial gains and losses (+/–)		1,210		–1,955
The effect of asset ceiling		27		254
Swedish special payroll taxes1)		–267		–65
Total		970		–1,766

1) Swedish payroll taxes are included in recognized gain/loss during the year in OCI.

Sensitivity analysis of significant actuarial assumptions

SEK billion	2017		2016
Impact on the DBO of an increase in the discount rate
Discount rate, Sweden +0.5%		–4.5		–4.3
Discount rate, US +0.5%		–1.1		–1.3
Discount rate, UK +0.5%		–1.5		–1.7
Discount rate, weighted average of Total +0.5%		–8.1		–8.3
Impact on the DBO of an decrease in the discount rate
Discount rate, Sweden –0.5%		+5.2		+5.0
Discount rate, US –0.5%		+1.2		+1.3
Discount rate, UK –0.5%		+1.8		+1.9
Discount rate, weighted average of Total –0.5%		+9.3		+9.4

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C18 Provisions

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

C18 Provisions

C18    Provisions

Provisions

	Restructuring		Customer related		Suppliers related		Warranty		Other		Total
2017
Opening balance		4,163		74		134		248		1,738		6,357
Additions		5,448		4,105		1,885		242		799		12,479
Reversal of excess amounts		–207		—		–90		–2		–63		–362
Negative effect on Income statement												12,117
Utilization/Cash out		–5,327		–1,532		–262		–267		–833		–8,221
Reclassifications		1		–10		–50		5		–59		–113
Translation difference		–35		5		–4		–1		–159		–194
Closing balance		4,043		2,642		1,613		225		1,423		9,946
2016
Opening balance		1,466		92		182		528		1,570		3,838
Additions		5,271		51		82		267		675		6,346
Reversal of excess amounts		–130		–6		–69		–207		–277		–689
Negative effect on Income statement												5,657
Utilization/Cash out		–2,440		–64		–64		–365		–220		–3,153
Reclassifications		1		–3		—		9		–15		–8
Translation difference		–5		4		3		16		5		23
Closing balance		4,163		74		134		248		1,738		6,357

Provisions will fluctuate over time depending on business mix, market mix and technology shifts. Risk assessment in the ongoing business is performed monthly to identify the need for new additions and reversals. During certain years the Company undertakes restructuring activities that may require recognition of provisions. Management uses its best judgment to estimate provisions based on this assessment. Under certain circumstances, provisions are no longer required due to outcomes being more favorable than anticipated, which affect the provisions balance as a reversal. In other cases, the outcome can be negative, and if so, a charge is recorded in the income statement.

For 2017, new or additional provisions amounting to SEK 12.5 billion were made, and SEK 0.4 billion of provisions were reversed. The actual cash outlays for 2017 were SEK 8.2 billion compared with the estimated SEK 4.4 billion. The higher outcome compared to the estimate relates to the restructuring and the customer project adjustments, as well as that certain provisions where identified and paid out during 2017. The expected total cash outlays in 2018 are approximately SEK 6.0 billion.

Of the total provisions, SEK 3.6 (0.9) billion is classified as non-current. For more information, see Note C1, “Significant accounting policies” and Note C2, “Critical accounting estimates and judgments.”

Restructuring provisions

In 2017, SEK 5.4 billion in provisions were made and SEK 0.2 billion were reversed due to a more favorable outcome than expected. The scope of the structural efficiency measures involves service delivery, supply and manufacturing, R&D and SG&A (Selling, General and Administrative expenses). The cash outlays for restructuring provisions were SEK 5.3 billion for the full-year, compared with the expected SEK 3.2 billion. The cash outlays for the full-year also includes provisions identified and paid out during 2017. The cash outlays for 2018 for these provisions are estimated to total approximately SEK 3.0 billion.

Customer related

Customer related provisions include provision for contractual discounts, contractual penalties, and onerous contracts. During 2017, new provisions amounting to SEK 4.1 billion were made, mainly due to additional project costs and customer settlements. The cash outlays were SEK 1.5 billion in 2017 compared to the estimated of SEK 0.0 billion. For 2018, the cash outlays for these provisions are estimated to total approximately SEK 1.9 billlion.

Supplier related

Supplier related provisions include provision for supplier claims/guarantees. During 2017, new provisions amounting to SEK 1.9 billion were made and SEK 0.1 were reversed due to more favorable outcome. The cash outlays were SEK 0.3 billion in 2017 compared to the estimated of SEK 0.1 billion. For 2018, the cash outlays for this provision is estimated to total approximately SEK 0.2 billion.

Warranty provisions

Warranty provisions are based on historic quality rates for established products as well as estimates regarding quality rates for new products and costs to remedy the various types of faults predicted. Provisions amounting to SEK 0.2 billion were made. The actual cash outlays for 2017 were SEK 0.3 billion, in line with the expected SEK 0.1 billion. The cash outlays of warranty provisions during year 2018 are estimated to total approximately SEK 0.2 billion.

Other provisions

Other provisions include provisions for probable contractual penalties, tax issues, litigations, and other. During 2017, new provisions amounting to SEK 0.8 billion were made and SEK 0.1 billion were reversed due to a more favorable outcome. The cash outlays were SEK 0.8 billion in 2017 compared to the estimate of SEK 1.0 billion. For 2018, the cash outlays for other provisions are estimated to total approximately SEK 0.7 billion.

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C19 Interest-bearing liabilities

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

C19 Interest-bearing liabilities

C19 Interest-bearing liabilities

As of December 31, 2017, the Company’s outstanding interest-bearing liabilities was SEK 33.0 (26.7) billion.

Interest-bearing liabilities

	2017		2016
Borrowings, current
Current part of non-current borrowings1)		89		4,954
Other borrowings, current		2,456		3,079
Total borrowings, current		2,545		8,033
Borrowings, non-current
Notes and bond loans		20,560		10,556
Other borrowings, non-current		9,940		8,097
Total borrowings, non-current		30,500		18,653
Total interest-bearing liabilities		33,045		26,686

1) Including notes and bond loans of SEK 0 (4,900) million.

To secure long-term funding, the Company uses notes and bond programs together with bilateral research and development loans. All outstanding notes and bond loans are issued by the Parent Company under its Euro Medium Term Note (EMTN) program or under its U.S. Securities and Exchange Commission (SEC) Registered program. Bonds issued at a fixed interest rate are normally swapped to a floating interest rate using interest rate swaps under the Asset and liability management mandate described in Note C20, “Financial risk management and financial instruments.” Total weighted average interest rate cost for the long-term funding during the year was 1.68% (2.76%). The outstanding EUR bonds and USD bond are revalued based on changes in benchmark interest rates according to the fair value hedge methodology stipulated in IAS 39.

In February 2017, the Company issued a Euro denominated 500 million 4-year bond with a fixed coupon rate of 0.875% and a Euro denominated 500 million 7-year bond with a fixed coupon rate of 1.875% . The proceeds were used to refinance debt maturing in 2017 and for general corporate purposes.

In April 2017, the Company exercised its second extension option under the USD 2 billion multi-currency revolving credit facility, extending the maturity date to June 2022.

In June 2017, the Company repaid the Euro demoninated 500 million bond issued in 2007.

In December, Ericsson raised USD 220 million from the Nordic Investment Bank (NIB) and USD 150 million from AB Svensk Exportkredit. The credit agreements mature in 2023 and 2025 and extended Ericsson’s debt maturity profile. Of these new funds, 98 million replaced credit with NIB that was set to mature in 2019.

Notes, bonds, bilateral loans and committed credit

															Unrealized hedge
	Nominal							Book value			Market value				gain/loss (included
Issued-maturing	amount		Coupon			Currency		(SEK million)			(SEK million)		Maturity date		in book value)
Notes and bond loans
2010–20201)		170					USD		1,394			1,488		December 23, 2020
2012–2022		1,000		4.125	%		USD		8,180	2)		8,223		May 15, 2022		9
2017–2021		500		0.875	%		EUR		4,897	2)		4,846		March 1, 2021		7
2017–2024		500		1.875	%		EUR		4,862	2)		4,824		March 1, 2024		–7
2017–20251)		150					USD		1,227			1,432		December 22, 2025
Total notes and bond loans									20,560			20,813				9
Bilateral loans
2012–20213)		98					USD		805			830		September 30, 2021
2013–20204)		684					USD		5,609			5,724		November 6, 2020
2013–20233)		220					USD		1,797			1,972		June 15, 2023
Total bilateral loans									8,211			8,526
Committed credit
Long-term committed credit facility5)		2,000					USD		—			—		June 5, 2022
Total committed credit									—			—

1) Private Placement, Swedish Export Credit Corporation (SEK).

2) Interest rate swaps are designated as fair value hedges.

3) Nordic Investment Bank (NIB), R&D project financing.

4) European Investment Bank (EIB), R&D project financing.

5) Multi-currency revolving credit facility. Unutilized.

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C20 Financial risk management and financial instruments

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

C20 Financial risk management and financial instruments

C20    Financial risk management and financial instruments

The Company’s financial risk management is governed by a policy approved by the Board of Directors. The Finance Committee of the Board of Directors is responsible for overseeing the capital structure and financial management of the Company and approving certain matters (such as investments, customer finance commitments, guarantees and borrowing) and continuously monitors the exposure to financial risks.

The Company defines its managed capital as the total Company equity. For the Company, a robust financial position with a strong equity ratio, solid investment grade rating, low leverage and ample liquidity is deemed important. This provides financial flexibility and independence to operate and manage variations in working capital needs as well as to capitalize on business opportunities.

The Company’s overall capital structure should support the financial targets. The capital structure is managed by balancing equity, debt financing and liquidity in such a way that the Company can secure funding of operations at a reasonable cost of capital. Regular borrowings are complemented with committed credit facilities to give additional flexibility to manage unforeseen funding needs. The Company strives to finance growth, normal capital expenditures and dividends to shareholders by generating cash flows from operating activities.

The Company’s capital objectives are:

• To maintain an equity ratio above 40%

• A cash conversion rate above 70%

• To maintain a positive net cash position larger than the pension liability

• To maintain a solid investment grade rating by Moody’s (Baa2) and Standard & Poor’s (BBB).

Capital objectives-related information, SEK billion

	2017			2016
Capital		100			140
Equity ratio		38	%		50	%
Cash conversion		–58	%1)		175	%
Positive net cash		34.7			31.2
Post-employment benefits		25.0			23.7
Credit rating
Moody’s		Ba2, negative			Baa3, negative
Standard & Poor’s		BB+, stable			BBB, negative

1) Impacted by a negative result.

In May 2017, Moody’s announced that they have downgraded the senior unsecured debt ratings to Ba1 from Baa3 and the MTN program rating to Ba1 from Baa3, with a stable outlook. In October 2017, Moody’s announced that they have downgraded the senior unsecured debt ratings to Ba2 from Ba1 and the MTN program rating to Ba2 from Ba1. At the same time, the agency placed the company’s Ba2/Ba2 ratings on review for further downgrade. In March 2017, Standard & Poor’s (S&P) announced that they had downgraded the long-term corporate credit rating on Ericsson to BBB– from BBB, with a negative outlook. In July 2017, S&P announced that they had downgraded the long-term corporate credit rating on Ericsson to BB+ from BBB–, with a stable outlook.

The Company has a treasury function with the principal role to ensure that appropriate financing is in place through loans and committed credit facilities, actively managing the Company’s liquidity as well as financial assets and liabilities, and managing and controlling financial risk exposures in a manner consistent with underlying business risks and financial policies. Hedging activities, cash management and insurance management are largely centralized to the treasury function in Stockholm.

The Company also has a customer finance function with the main objective to find suitable third-party financing solutions for customers and to minimize recourse to the Company. To the extent that customer loans are not provided directly by banks, the Parent Company provides or guarantees vendor credits. The customer finance function monitors the exposure from outstanding vendor credits and credit commitments.

The Company classifies financial risks as:

• Foreign exchange risk

• Interest rate risk

• Credit risk

• Liquidity and refinancing risk

• Market price risk in own and other equity instruments.

The Board of Directors has established risk limits for defined exposures to foreign exchange and interest rate risks as well as to political risks in certain countries.

For further information about accounting policies, see Note C1, “Significant accounting policies.”

Foreign exchange risk

The Company is a global company with sales mainly outside Sweden. Sales and incurred costs are to a large extent denominated in currencies other than SEK and therefore the financial results of the Company are impacted by currency fluctuations.

The Company reports the financial statements in SEK. Movements in exchange rates between currencies that affect these statements are impacting the comparability between periods.

Line items, primarily sales, are impacted by translation exposure incurred when converting foreign entities’ financial statements into SEK. Line items and profitability, such as operating income are impacted by transaction exposure incurred when financial assets and liabilities, primarily trade receivables and trade payables, are initially recognized and subsequently remeasured due to change in foreign exchange rates.

The table below presents the net exposure for the largest currencies impact on sales and also net transaction exposure of these currencies on profitability.

Currency exposure, SEK billion

Exposure currency	Sales translation exposure		Sales transaction exposure		Sales net exposure		Incurred cost transaction exposure 1)		Net transaction exposure
USD		52.4		37.2		89.6		–15.3		21.9
EUR		24.6		13.2		37.8		–8.4		4.8
CNY		13.1		–0.2		12.9		–6.2		–6.4
INR		9.4		0.0		9.4		–1.6		–1.6
JPY		7.1		0.0		7.1		4.6		4.6
AUD		7.1		–0.3		6.8		3.3		3.0
BRL		5.7		0.0		5.7		0.7		0.7
SAR		5.1		0.1		5.2		2.3		2.4
GBP		5.6		–0.9		4.7		0.8		–0.1

1) Transactions in foreign currency – internal sales, internal purchases, external purchases.

Translation exposure

Translation exposure relates to sales and cost incurred in foreign entities when converted into SEK upon consolidation. These exposures cannot be addressed by hedging, but as the income statement is translated using weighted average rate, the impact of volatility in foreign currency rates is reduced.

Transaction exposure

Transaction exposure relates to sales and cost incurred in non-reporting currencies in individual group companies. Foreign exchange risk is as far as possible concentrated in Swedish group companies, primarily Ericsson AB. Sales to foreign subsidiaries are normally denominated in the functional currency of the customers, and so tend to be denominated in USD or another foreign currency. 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. The hedged volumes are funded by loans since April 2017. Previously, derivative contracts were used.

Outstanding loans that are funding hedged net future sales and costs incurred are revalued against “Financial expense.” The sensitivity in “Financial expense” in relation to this revaluation is dependent on changes in foreign exchange rates, forecasts, seasonality and hedging policy. USD is the Company’s largest exposure and at year-end a change by 0.25 SEK/USD would impact profit and loss with approximately SEK 0.1 billion. Realization and revaluation results of these loans and derivative contracts amounted to SEK 0.5 billion and SEK 0.0 billion respectively in 2017.

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 currencies and loans funding forecast hedges.

Foreign exchange exposures in balance sheet items are hedged through offsetting balances or derivatives.

Interest rate risk

The Company is exposed to interest rate risk through market value fluctuations in certain balance sheet items and through changes in interest revenues and expenses. The net cash position was SEK 34.7 (31.2) billion at the end of 2017, consisting of cash, cash equivalents and interest-bearing securities of SEK 67.7 (57.9) billion, offset by interest-bearing liabilities of SEK 33.0 (26.7) billion.

The Company manages the interest rate risk by matching fixed and floating interest rates in interest-bearing balance sheet items. The policy is that the net sensitivity on a 1 basis point move on interest-bearing assets matching interest-bearing liabilities, taking derivatives into consideration, is less than SEK 10 million. The average exposure during 2017 was SEK 2.1 million per basis point shift. The treasury function has a mandate to deviate from floating interest on net liquidity and take foreign exchange positions up to an aggregated risk of VaR SEK 45 million given a confidence level of 99% and a 1-day horizon.

Sensitivity to interest rate increase of 1 basis point, SEK million

	<3M		3–12M		1–3Y		3–5Y		>5Y		Total
Interest-bearing assets		0		0		–3		–4		–1		–8
Interest-bearing liabilities		0		0		0		6		3		9
Derivatives		0		1		0		–4		–1		–4
Total		0		1		–3		–2		1		–3

Outstanding derivatives

Outstanding derivatives ¹⁾

	2017				2016
Fair value	Asset		Liability		Asset			Liability
Currency derivatives
Maturity within 3 months		130		542		351			193
Maturity between 3 and 12 months		215		147		262			137
Maturity between 1 and 3 years		25		—		—			—
Maturity between 3 and 5 years		754		—		—			—
Total		1,125		689		613			330
Interest rate derivatives
Maturity within 3 months		10		35		—			—
Maturity between 3 and 12 months		1		—		239			82
Maturity between 1 and 3 years		34		105		191			205
Maturity between 3 and 5 years		83		54		—			6
Maturity of more than 5 years		39		43		65			116
Total		168		237		495	2)		409
Of which designated in fair value hedge relations		44		—		120			—

1) Some of the derivatives hedging non-current liabilities are recognized in the balance sheet as non-current derivatives due to hedge accounting.

2) Of which SEK 86 (0) million is reported as non-current assets.

When managing the interest rate exposure, the Company uses derivative instruments, such as interest rate swaps. Derivative instruments used for converting fixed rate debt into floating rate debt are designated as fair value hedges.

Sensitivity analysis

The Company uses the VaR methodology to measure foreign exchange and interest rate risks in portfolios managed by the treasury function. This statistical method expresses the maximum potential loss that can arise with a certain degree of probability during a certain period of time. For the VaR measurement, the Company has chosen a probability level of 99% and a 1-day time horizon. The daily VaR measurement uses market volatilities and correlations based on historical daily data (one year).

The average VaR calculated for 2017 was SEK 17.2 (16.3) million for the combined mandates. No VaR-limits were exceeded during 2017.

Financial credit risk

Financial instruments carry an element of risk in that counterparts may be unable to fulfill their payment obligations. This exposure arises in the investments in cash, cash equivalents, interest-bearing securities and from derivative positions with positive unrealized results against banks and other counterparties.

The Company mitigates these risks by investing cash primarily in well-rated securities such as treasury bills, government bonds, commercial papers, and mortgage-covered bonds with short-term ratings of at least A-2/P-2 or equivalents, and long-term ratings of AAA. Separate credit limits are assigned to each counterpart in order to minimize risk concentration. All derivative transactions are covered by ISDA netting agreements to reduce the credit risk.

At December 31, 2017, the credit risk in financial cash instruments was equal to the instruments’ carrying value. Credit exposure in derivative instruments was SEK 1.3 (1.1) billion.

Liquidity risk

The Company minimizes the liquidity risk by maintaining a sufficient cash position, centralized cash management, investments in highly liquid interest-bearing securities, and by having sufficient committed credit lines in place to meet potential funding needs. For information about contractual obligations, see Note C31, “Contractual obligations.” The current cash position is deemed to satisfy all short-term liquidity requirements as well as non-current borrowings.

Cash, cash equivalents and interest-bearing securities

	Remaining time to maturity
SEK billion	< 3 months		3–12 months		1–5 years		>5 years		Total
Banks		26.4		0.2		0.2		0.1		26.9
Type of issuer/counterpart
Governments		9.5		1.0		11.5		0.8		22.8
Corporates		0.3		0.0		0.0		0.0		0.3
Mortgage institutes		0.2		0.0		16.7		0.8		17.7
2017		36.4		1.2		28.4		1.7		67.7
2016		37.0		1.3		19.3		0.3		57.9

The instruments are classified as held for trading, loans and receivables, or available-for-sale. Cash, cash equivalents and interest-bearing securities are mainly held in SEK unless offset by EUR-funding. Instruments held for trading with a remaining maturity longer than one year amounted to SEK 5.0 billion and were reported as Interest-bearing securities, current.

Refinancing risk

Refinancing risk is the risk that the Company is unable to refinance outstanding debt under reasonable terms and conditions, or at all, at a given point in time.

Debt financing is mainly carried out through borrowing in the Swedish and international debt capital markets.

Bank financing is used for certain subsidiary funding and to obtain committed credit facilities, see Note C19, “Interest-bearing liabilities.”

Funding programs¹⁾

	Amount			Utilized		Unutilized
Euro Medium-Term Note program (USD million)		5,000			1,519		3,481
SEC Registered program (USD million)		2	)		1,000		—

1) There are no financial covenants related to these programs.

2) Program amount indeterminate.

Fair valuation of the Company’s financial instruments

The Company’s financial instruments accounted for at fair value generally meet the requirements of level 1 valuation due to the fact that they are based on quoted prices in active markets for identical assets.

Exceptions to this relates to:

• OTC derivatives with an amount of gross SEK 1.4 (1.2) billion in relation to assets and gross SEK 1.1 (0.9) billion in relation to liabilities were valued based on references to other market data as currency or interest rates. These valuations fall under level 2 valuation as defined by IFRS.

• Ownership in other companies and other financial investments where the Company neither has control nor significant influence. The amount recognized in these cases was SEK 2.1 (2.1) billion. These assets, classified as level 3 assets for valuation purposes, have been valued based on value in use technique.

Financial instruments carried at other than fair value

The fair value of the Company’s financial instruments, recognized at fair value, is determined based on quoted market prices or rates. For further information about valuation principles, see Note C1, “Significant accounting policies.”

Financial instruments, such as trade receivables, borrowings and payables, are carried at amortized cost which is deemed to be equal to fair value, except for those noted in the table Notes, bonds, bilateral loans and committed credits in Note C19, “Interest-bearing liabilities.” When a market price is not readily available and there is insignificant interest rate exposure and credit spreads affecting the value, the carrying value is considered to represent a reasonable estimate of fair value.

Offsetting financial assets and liabilities

As required by IFRS, the Company has off set financial instruments under ISDA agreements. The related assets amounted to SEK 1.4 (1.2) billion, prior to offsetting of SEK 0.1 (0.1) billion, with a net amount of SEK 1.3 (1.1) billion recognized in the balance sheet. The related liabilities amounted to SEK 1.0 (0.9) billion, prior to offsetting of SEK 0.1 (0.1) billion, with a net amount of SEK 0.9 (0.8) billion recognized in the balance sheet.

Market price risk in own shares and other listed equity investments

The Company is exposed to fluctuations in its own share price (through stock purchase plans for employees) and other share-based compensation for employees and the Board of Directors. Some of the plans are share settled and some are cash settled as further disclosed in Note C1, “Significant accounting policies” and Note C28, “Information regarding members of the Board of Directors, the Group management and employees .”

Share-based plans for employees

The obligation to deliver shares under the stock purchase plan and the Long-term Variable Compensation Program 2017 for the Executive Team (LTV 2017) is covered by holding Ericsson Class B shares as treasury stock. A change in the share price will result in a change in social security charges, which represents a risk to the income statement. The cash flow exposure is hedged through the holding of Ericsson Class B shares as treasury stock to be sold to generate funds, which also cover social security payments.

Cash settled plans to employees and the Board of Directors

In the case of synthetic share programs (a cash settled program as defined in IFRS) to Board members and cash settled plans to employees, the Company is exposed to risks in relation to own share price, both with regard to compensation expenses and social security charges. The obligations to pay compensation amounts under the synthetic share-based compensations to the Board of Directors and employees are covered by a liability in the balance sheet.

For further information about the stock purchase plan, LTV 2017, the cash settled plans to employees and the synthetic share-based compensations to the Board of Directors, see Note C28, “Information regarding members of the Board of Directors, the Group management and employees.”

Financial instruments, book value

SEK billion	Customer finance		Trade receivables		Interest- bearing securities		Cash equiva- lents		Borrowings		Trade payables		Other financial assets		Other current receivables		Other current liabilities		2017		2016
Note		C14		C14		C12		C25		C19		C22		C12		C15		C21
Assets at fair value through profit or loss						6.1		14.3						0.9		1.2		–0.9		21.6		23.5
Loans and receivables		3.9		63.2		0.3		3.2						5.0						75.6		78.9
Available-for-sale						25.4								1.3						26.7		8.8
Financial liabilities at amortized cost										–33.0		–26.3								–59.3		–52.0
Total		3.9		63.2		31.8		17.5		–33.0		–26.3		7.2		1.2		–0.9		64.6		59.2

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C21 Other current liabilities

12 Months Ended

Dec. 31, 2017

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C21 Other current liabilities

C21     Other current liabilities

Other current liabilities

	2017		2016
Advances from customers		6,955		5,391
Accrued interest		383		367
Accrued expenses		29,196		30,716
Of which employee-related		8,935		9,414
Of which supplier-related		10,491		13,003
Of which other1)		9,770		8,299
Deferred revenues		20,110		13,990
Derivatives with a negative value2)		926		739
Other3)		4,800		4,800
Total		62,370		56,003

1) Major balance relates to accrued expenses for customer projects.

2) See Note C20, “Financial risk management and financial instruments.”

3) Includes items such as VAT and withholding tax payables and other payroll deductions, and liabilities for goods received where the related invoice has not yet been received.

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C22 Trade payables

12 Months Ended

Dec. 31, 2017

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C22 Trade payables

C22    Trade payables

Trade payables

	2017		2016
Trade payables to associated companies and joint ventures		286		296
Trade payables, excluding associated companies and joint ventures		26,035		25,022
Total		26,321		25,318

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C23 Assets pledged as collateral

12 Months Ended

Dec. 31, 2017

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C23 Assets pledged as collateral

C23    Assets pledged as collateral

Assets pledged as collateral

	2017		2016
Chattel mortgages1)		4,740		2,240
Bank deposits		475		344
Total		5,215		2,584

1) See also Note C17, “Post-Employment benefits.”

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C24 Contingent liabilities

12 Months Ended

Dec. 31, 2017

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C24 Contingent liabilities

C24    Contingent liabilities

Contingent liabilities

	2017		2016
Contingent liabilities		1,561		1,186
Total		1,561		1,186

Contingent liabilities assumed by the Company include guarantees of loans to other companies of SEK 24 (24) million. Ericsson has SEK 0 (33) million issued to guarantee the performance of a third-party.

All ongoing legal and tax proceedings have been evaluated, their potential economic outflows and probability estimated and necessary provisions made. In Note C2, “Critical Accounting Estimates and Judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied.

Financial guarantees for third-parties amounted to SEK 80 (124) million as of December 31, 2017. The maturity date for the majority of the issued guarantees occurs in 2020 at the latest.

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C25 Statement of cash flows

12 Months Ended

Dec. 31, 2017

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C25 Statement of cash flows

C25    Statement of cash flows

Interest paid in 2017 was SEK –794 million (SEK –1,269 million in 2016 and SEK –926 million in 2015) and interest received in 2017 was SEK 1 million (SEK 110 million in 2016 and SEK 550 million in 2015). Taxes paid, including withholding tax, were SEK –4,724 million in 2017 (SEK –9,105 million in 2016 and SEK –7,705 million in 2015).

Cash and cash equivalents include cash of SEK 18,403 (25,577) million and temporary investments of SEK 17,481 (11,389) million. For more information regarding the disposition of cash and cash equivalents and unutilized credit commitments, see Note C19, “Interest-bearing liabilities.”

Cash and cash equivalents as of December 31, 2017, include SEK 3.1 (4.2) billion in countries where there exists significant cross-border conversion restrictions due to hard currency shortage or strict government controls. This amount is therefore not considered available for general use by the Parent Company.

Adjustments to reconcile net income to cash

	2017		2016		2015
Property, plant and equipment
Depreciation		4,103		4,421		4,705
Impairment losses/reversals of impairments		2,211		148		–16
Total		6,314		4,569		4,689
Intangible assets
Amortizations
Capitalized development expenses		2,681		1,815		1,379
Intellectual Property Rights, brands and other intangible assets		1,667		2,650		4,139
Total amortizations		4,348		4,465		5,518
Impairments
Capitalized development expenses		2,245		85		20
Intellectual Property Rights, brands and other intangible assets		2,019		—		—
Goodwill		12,966		—		—
Total impairments		17,230		85		20
Total		21,578		4,550		5,538
Total depreciation, amortization and impairment losses on property, plant and equipment and intangible assets		27,892		9,119		10,227
Taxes		–9,805		–6,200		–2,835
Dividends from joint ventures/associated companies1)		77		84		92
Undistributed earnings in joint ventures/ associated companies1)		–21		–26		38
Gains/losses on sales of investments and operations, intangible assets and PP&E, net2)		–167		–37		–156
Other non-cash items3)		607		3,172		3,245
Total adjustments to reconcile net income to cash		18,583		6,112		10,611

1) See Note C12, “Financial assets, non-current.”

2) See Note C6, “Other operating income and expense.”

3) Refers mainly to unrealized foreign exchange, gains/losses on financial instruments.

Acquisitions/divestments of subsidiaries and other operations

	Acquisitions		Divestments
2017
Cash flow from business combinations1)		–62		459
Acquisitions/divestments of other investments		–227		106
Total		–289		565
2016
Cash flow from business combinations1)		–781		25
Acquisitions/divestments of other investments		–203		337
Total		–984		362
2015
Cash flow from business combinations1)		–1,867		–
Acquisitions/divestments of other investments		–334		1
Total		–2,201		1

1) See also Note C26, “Business combinations.”

Reconciliation of liabilities arising from financing activities

	2017
Opening balance		26,686
Cash flows
Proceeds from issuance of borrowings		13,416
Repayment of borrowings		–4,830
Non-cash changes
Effect of foreign exchange movement		–2,155
Changes in fair value		–72
Closing balance1)		33,045

1) Of which Borrowing, current SEK 2,545 million and Borrowings, non-current SEK 30,500 million. For more information, see Note C19, ”Interest-bearing liabilities”.

In addition to the above numbers SEK 201 million is allocated to the financing cash flow due to hedging of derivatives.

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C26 Business combinations

12 Months Ended

Dec. 31, 2017

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C26 Business combinations

C26    Business combinations

Acquisitions and divestments

Acquisitions

Acquisitions 2015–2017

	2017		2016		2015
Total consideration, including cash		62		920		2,119
Acquisition-related costs1)		49		4		19
Net assets acquired
Cash and cash equivalents		—		139		271
Property, plant and equipment		12		19		45
Intangible assets		101		817		445
Other assets		1		290		572
Other liabilities		25		–290		–379
Total identifiable net assets		139		975		954
Goodwill2)		–77		–55		1,165
Total		62		920		2,119

1) Acquisition-related costs are included in Selling and administrative expenses in the consolidated income statement.

2) Of which SEK 0 (585) million was acquired goodwill and SEK –77 (–640) million refers to a reclassi-fication when the preliminary purchase price allocations were finalized between the years.

In 2017, Ericsson made acquisitions with a negative cash flow effect amounting to SEK 62 (781) million.

Divestments

Divestments 2015–2017

	2017		2016		2015
Proceeds		459		25		—
Net assets disposed of
Property, plant and equipment		62		36		—
Investments in joint ventures and associated companies		—		15		—
Goodwill		45
Other assets		219		5		52
Other liabilities		–180		–114		–3
		146		–58		49
Net gains/losses from divestments		313		83		–49
Less Cash and cash equivalents		—		—		—
Cash flow effect		459		25		—

In 2017, the Company made divestments with a cash flow effect amounting to SEK 459 (25) million.

Acquisitions 2015–2017

Company	Description	Transaction date
Nodeprime	A US based software development company with an infrastructure management platform.	Apr 2016
Ericpol	A software development company in Poland within telecommunications.	Apr 2016
FYI Television	A US based premier entertainment metadata and rich media content supplier.	Jan 2016
Envivio	A US-based company with competence in software-defined and cloud-enabled architectures for video processing.	Oct 2015
ICON	A consulting and systems integration business with approximately 250 employees and consultants.	Aug 2015
Sunrise technology	A business delivering complex IT solutions.	Jul 2015
Timelessmind	A Canada-based consulting and systems integration business specializing in operations and business support (OSS/BSS).	Apr 2015

Divestments 2015–2017

Company	Description	Transaction date
Power Modules	A divestment of the power modules business.	Sep 2017
Birla Ericsson Optical Ltd	A divestment of the shares in the associated company.	Jul 2016

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C27 Leasing

12 Months Ended

Dec. 31, 2017

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C27 Leasing

C27    Leasing

Due to replacement of former lease contract with operating lease contract the Company has from 2016 no finance leases.

As of December 31, 2017, future minimum lease payment obligations were distributed as follows:

Future minimum lease payment obligations

	Operating leases
2018		3,491
2019		2,927
2020		2,506
2021		1,966
2022		1,442
2023 and later		4,787
Total		17,119

Expenses in 2017 for leasing of assets were SEK 4,194 (3,710) million, of which variable expenses comprised SEK 101 (217) million. The leasing contracts vary in length from 1 to 16 years.

The Company’s lease agreements normally do not include any contingent rents. In the few cases they occur, they relate to charges for heating linked to the oil price index. Most of the leases of real estate contain terms of renewal, giving the Company the right to prolong the agreement in question for a predefined period of time.

Leases with the Company as lessor

Leasing income relates to subleasing of real estate as well as equipment provided to customers under leasing arrangements. These leasing contracts vary in length from 1 to 15 years.

At December 31, 2017, future minimum payment receivables were distributed as follows:

Future minimum payment receivables

	Operating leases
2018		83
2019		87
2020		85
2021		87
2022		87
2023 and later		184
Total		613

Leasing income in 2017 was SEK 44 (47) million.

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C28 Information regarding members of the Board of Directors, the Group management and employees

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

C28 Information regarding members of the Board of Directors, the Group management and employees

C28    Information regarding members of the Board of Directors, the Group management and employees

Remuneration to the Board of Directors

Remuneration to members of the Board of Directors

SEK	Board fees		Number of synthetic shares/ portion of Board fee			Value at grant date of synthetic shares allocated in 2017 A		Number of previously allocated synthetic shares outstanding		Net change in value of synthetic shares1)  B			Committee fees		Total fees paid in cash2) C			Total remuneration 2017 (A+B+C)
Board member
Leif Johansson		4,075,000		0/0	%		—		—		—			400,000		4,475,000			4,475,000
Helena Stjernholm		990,000		8,661/50	%		494,976		11,093		–13,606	1)		175,000		670,000			1,151,370
Jacob Wallenberg		990,000		12,992/75	%		742,493		18,202		128,459	1)		175,000		422,500	5)		1,293,452
Jon Fredrik Baksaas		990,000		12,992/75	%		742,493		—		–42,874			175,000		422,500			1,122,119
Jan Carlson		990,000		12,992/75	%		742,493		—		–42,874			175,000		422,500			1,122,119
Nora Denzel		990,000		4,330/25	%		247,460		5,489		23,549	1)		425,000		1,167,500			1,438,509
Börje Ekholm		—		—			—		33,203		339,168	1)		—		—			339,168
Eric A. Elzvik		990,000		4,330/25	%		247,460		—		–14,289			350,000		1,092,500			1,325,671
Kristin Skogen Lund		990,000		4,330/25	%		247,460		11,990		60,646	1)		250,000		992,500			1,300,606
Kristin S. Rinne		990,000		8,661/50	%		494,976		7,395		–18,598	1)		200,000		695,000			1,171,378
Sukhinder Singh Cassidy		990,000		4,330/25	%		247,460		6,210		3,393	1)		175,000		917,500			1,168,353
Employee Representatives
Pehr Claesson3)		15,000		—			—		—		—			—		15,000			15,000
Mikael Lännqvist3)		9,000		—			—		—		—			—		9,000			9,000
Kjell-Åke Soting		27,000		—			—		—		—			—		27,000			27,000
Roger Svensson		37,500		—			—		—		—			—		37,500			37,500
Karin Åberg		33,000		—			—		—		—			—		33,000			33,000
Zlatko Hadzic (deputy)3)		6,000		—			—		—		—			—		6,000			6,000
Torbjörn Nyman (deputy) 4)		13,500		—			—		—		—			—		13,500			13,500
Anders Ripa (deputy) 4)		13,500		—			—		—		—			—		13,500			13,500
Loredana Roslund (deputy) 4)		13,500		—			—		—		—			—		13,500			13,500
Total		13,153,000		73,618			4,207,271		93,582		422,974			2,500,000		11,445,500			16,075,745	6)
Total		13,153,000		73,618			4,207,271		93,582		632,329	7)		2,500,000		11,445,500			16,285,100	6)

1) The difference in value as of the time for payment, compared to December 31, 2016, for synthetic shares allocated in 2012 (for which payment was made in 2017).

The difference in value as of December 31, 2017, compared to December 31, 2016, for synthetic shares allocated in 2013, 2014, 2015 and 2016. Calculated on a share price of SEK 53.85.

The difference in value as of December 31, 2017, compared to grant date for synthetic shares allocated in 2017.

The value of synthetic shares allocated in 2013, 2014, 2015 and 2016 includes respectively SEK 3.00, SEK 3.40, SEK 3.70 and SEK 1.00 per share in compensation for dividends resolved by the Annual General Meetings 2014, 2015, 2016 and 2017 and the value of the synthetic shares allocated in 2012 includes dividend compensation for dividends resolved in 2013, 2014, 2015 and 2016.

2) Committee fee and cash portion of the Board fee.

3) Left the Board in connection with the Annual General Meeting of shareholders 2017.

4) Joined the Board in connection with the Annual General Meeting of shareholders 2017.

5) In addition, an amount corresponding to statutory social charges in respect of the part of the fee that has been invoiced from a business was paid, amounting to SEK 174,460.

6) Excluding social security charges and amounts invoiced through a business corresponding to such social security charges in to the amount of SEK 2,964,677.

7) Including synthetic shares previously allocated to the former Directors Roxanne S. Austin and Alexander Izosimov. For these synthetic shares, the net change in value corresponds to the difference in value as of the time for payment compared to December 31, 2016.

Comments to the table

• The Chairman of the Board was entitled to a Board fee of SEK 4,075,000 and a fee of SEK 200,000 for each Board Committee on which he served as Chairman.

• The other Directors elected by the Annual General Meeting were entitled to a fee of SEK 990,000 each. In addition, the Chairman of the Audit Committee was entitled to a fee of SEK 350,000 and the other non-employee members of the Audit Committee were entitled to a fee of SEK 250,000 each. The Chairmen of the Finance, Remuneration and Technology and Science Committees were entitled to a fee of SEK 200,000 each and the other non-employee members of these Committees were entitled to a fee of SEK 175,000 each.

• Members of the Board, who are not employees of the Company, have not received any remuneration other than the fees and synthetic shares as above. None of the Directors have entered into a service contract with the Parent Company or any of its subsidiaries, providing for termination benefits.

• Members and deputy members of the Board who are Ericsson employees received no remuneration or benefits other than their entitlements as employees and a fee to the employee representatives and their deputies of SEK 1,500 per attended Board meeting and Committee meeting.

• Board members invoicing for the amount of the Board and Committee fee from a business may add to the invoice an amount corresponding to social charges. The social charges thus included in the invoiced amount are not higher than the general payroll tax that would otherwise have been paid by the Company. The entire amount, i.e., the cash portion of the Board fee and the Committee fee, including social charges, constitutes the invoiced Board fee.

• The Annual General Meeting 2017 resolved that non-employee 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.

The number of synthetic shares allocated is based on a volume-weighted average of the market price of Ericsson Class B shares on Nasdaq Stockholm during the five trading days immediately following the publication of Ericsson’s interim report for the first quarter 2017; SEK 57.15. The number of synthetic shares is rounded down to the nearest whole number of shares.

The synthetic shares are vested during the Directors’ term of office and the right to receive payment with regard to the allocated synthetic shares occurs after the publication of the Company’s year-end financial statement during the fifth year following the Annual General Meeting which resolved on the synthetic share program, i.e., in 2022. The amount payable shall be determined based on the volume-weighted average price for shares of Class B during the five trading days immediately following the publication of the year-end financial statement.

Synthetic shares were allocated to members of the Board for the first time in 2008 and have been allocated annually since then on equal terms and conditions. Payment based on synthetic shares allocated in 2012 occurred in 2017 and, in accordance with the terms and conditions for the synthetic share advance payment was then also made to the former Directors Roxanne S. Austin and Alexander Izosimov. The amounts paid in 2017 under the synthetic share programs were determined based on the volume-weighed average price for shares of Class B on Nasdaq Stockholm during the five trading days immediately following the publication of the year-end financial statements for 2016: SEK 51.92 and totalled SEK 2,788,056 excluding social security charges. The payments made do not constitute a cost for the Company in 2017. The Company’s costs for the synthetic shares have been disclosed each year and the net change in value of the synthetic shares for which payment was made in 2017, is disclosed in the table “Remuneration to members of the Board of Directors” on page 70.

The value of all outstanding synthetic shares fluctuates in line with the market value of Ericsson’s Class B share and may differ from year to year compared to the original value on their respective grant dates. The change in value of the outstanding synthetic shares is established each year and affects the total recognized costs that year. As of December 31, 2017, the total outstanding number of synthetic shares under the programs is 167,200 and the total accounted debt is SEK 9,440,105.

Remuneration to the Group management

The Company’s costs for remuneration to the Group management are the costs recognized in the Income statement during the fiscal year. These costs are disclosed under “Remuneration costs” below.

Costs recognized during a fiscal year in the Income statement are not fully paid by the Company at the end of the fiscal year. The unpaid amounts that the Company has in relation to the Group management are disclosed under “Outstanding balances.”

Remuneration costs

The total remuneration to the President and CEO and to other members of the Group management, consisting of the Executive Team (ET), includes fixed salary, short- and long-term variable compensation, pension and other benefits. These remuneration elements are based on the guidelines for remuneration to Group management as approved by the Annual General Meeting held in 2017: see the approved guidelines in section “Guidelines for remuneration to Group management 2017.”

Remuneration costs for the President and CEO and other members of Executive Team (ET)

SEK	President and CEO1) 2017			President and CEO2) 2017		Total: President and CEO 2017		President and CEO 2016		Other members of ET 2017		Other members of ELT 2016		Total 2017		Total 2016
Salary 3)		13,980,639			398,531		14,379,170		45,882,357		162,159,462		119,501,092		176,538,632		165,383,449
Annual variable remuneration provision earned for the year		—			—		—		—		7,331,278		6,230,285		7,331,278		6,230,285
Long-term variable compensation provision		6,119,323			—		6,119,323		8,727,083		9,840,643		9,278,252		15,959,966		18,005,336
Pension costs		7,365,132	4)		162,941		7,528,073		11,954,758		31,592,635		29,387,498		39,120,708		41,342,256
Other benefits		315,263			2,923		318,187		69,992		17,311,905		12,604,635		16,630,091		12,674,627
Social charges and taxes		8,728,588			165,666		8,894,255		20,241,066		52,086,808		29,147,247		60,981,063		49,388,312
Total		36,508,946			730,061		37,239,007		86,875,256		280,322,732		206,149,008		317,561,739		293,024,265

1) Börje Ekholm served as President and CEO from January 16, 2017. Remuneration costs shown for Börje Ekholm includes the period from January 16, 2017, to December 31, 2017.

2) Jan Frykhammar served as President and CEO from January 1, 2017, to January 15, 2017. Remuneration costs shown for Jan Frykhammar includes the period from January 1, 2017, to January 15, 2017 (costs for the rest of the year is included in “Other members of ET 2017”).

3) Includes severance pay and compensation for unused vacations.

4) Cash payment in lieu of defined contribution payment, made in a cost neutral way for Ericsson.

Comments to the table

• Jan Frykhammar was President and CEO of Ericsson until January 15, 2017, and Börje Ekholm was appointed President and CEO from January 16, 2017.

• Effective April 1, 2017, the Executive Leadership Team (ELT) was replaced by Executive Team (ET).

• During 2017, Jan Frykhammar and Magnus Mandersson were appointed as Executive Vice Presidents by the Board of Directors, none of which acted as deputy to the President and CEO. Both were relieved from their duties as Executive Vice Presidents on November 6, 2017, and replaced by Fredrik Jejdling effective November 7, 2017. Fredrik Jejdling did not act as deputy to the President and CEO in 2017. Executive Vice Presidents are included in the group “Other members of ET”, except for the period between January 1, 2017, and January 15, 2017, when Jan Frykhammar is included in President and CEO.

• The group “Other members of ET” comprises of the following persons: MajBritt Arfert, Arun Bansal, Ulf Ewaldsson, Niklas Heuveldop, Chris Houghton, Fredrik Jejdling, Nina Macpherson, Carl Mellander, Helena Norrman, Elaine Weidman-Grunewald. In addition, Rafiah Ibrahim, Peter Laurin and Nunzio Mirtillo joined ET on April 1, 2017. Anders Lindblad (left ET effective April 1, and Ericsson August 31, 2017), Per Borgklint (left ET effective April 1, and Ericsson September 30, 2017), Charlotta Sund (left ET effective April 1, and Ericsson October 26, 2017), Jean-Philippe Poirault (left ET April 1, 2017, and will leave Ericsson on June 30, 2018), Rima Qureshi (left ET effective May 11, and Ericsson November 5, 2017), Jan Frykhammar (left ET effective November 7, 2017, and will leave Ericsson on March 31, 2018), Magnus Mandersson (left ET effective November 7, 2017, and will leave Ericsson on June 30, 2018).

• The salary stated in the table for the President and CEO and other members of the ET includes vacation pay paid during 2017 as well as other contracted compensation expensed in 2017.

• The remuneration costs for 2017 include termination provisions, including estimates of future severance pay and compensation for unused vacation, in respect of individuals who left Ericsson during 2017.

• “Long-term variable compensation provision” refers to the compensation costs during 2017 for all outstanding share-based plans.

• For members of the ET employed in Sweden before 2011, a supplementary plan is applied in addition to the occupational pension plan for salaried staff on the Swedish labor market (ITP) with pension payable from the age of 60 years. These pension plans are not conditional upon future employment at Ericsson.

Outstanding balances

The Company has recognized the following liabilities relating to unpaid remunerations in the Balance sheet:

• Ericsson’s commitments for defined benefit based pensions as of December 31, 2017, for other members of ET under IAS 19 amounted to SEK 45,651,263 (SEK 44,800,609) of which SEK 36,957,641 (SEK 38,333,332) refers to the ITP and early retirement, and the remaining SEK 8,693,622 (SEK 6,467,277) to disability and survivors’ pensions. The President and CEO does not have a Swedish defined benefit based pension plan, hence, Ericsson bears no commitment.

• For previous Presidents and CEOs, the Company has made provisions for defined benefit pension plans in connection with their active service periods within the Company.

Maximum outstanding matching rights

As of December 31, 2017 Number of Class B shares	The President and CEO		Other members of the ET
Stock Purchase Plans 2014–2016
Executive Performance Stock Plans 2014–2016		—		183,054

Comments to the table

• For the definition of matching rights, see the description in section “Long-term variable compensation”.

• Matching result of 33.33% is included for the 2014 plan.

• Cash conversion targets for 2015 and 2016 were reached, but it was not reached in 2017.

• During 2017, no matching shares were received by President and CEO since Börje Ekholm is not entitled for the Stock Purchase and Executive Performance Stock Plans. Jan Frykhammar’s matching shares are included in ‘Other members of the ET’.

• During 2017, other members of the ET received 79,285 matching shares.

Option agreements

Prior to taking office as President and CEO of Ericsson, Board member Börje Ekholm entered into an option agreement in 2016 with Investor AB and AB Industrivärden, shareholders of Ericsson. Each of these two shareholders has issued 1,000,000 call options to Börje Ekholm on market terms (valuation conducted, using the Black & Scholes model, by an independent third party). Under the agreements, Börje Ekholm has purchased in total 2,000,000 call options, issued by the shareholders, for a purchase price of SEK 0.49 per call option. Each call option entitles the purchase of one Ericsson B share from the shareholders at a strike price of SEK 80 per share during one year after a seven-year period. Since the President and CEO has the power to influence the dividend paid by the Company, a potential conflict of interest exists. The option agreements therefore contain a strike price recalculation mechanism which is intended to make the options payoff neutral regardless of what the actual dividends are. Due to the fact that the call options were purchased on market terms as described above, no compensation expense has been recognized by the Company and will not be recognized during the remaining part of the seven-year period.

Guidelines for remuneration to Group management 2017

For Group management consisting of the Executive Leadership Team, including the President and CEO, total remuneration consists of fixed salary, short- and long-term variable compensation, pension and other benefits.

The following guidelines apply to the remuneration of the Executive Leadership Team:

• Variable compensation is in cash and stock-based programs awarded against specific business targets derived from the long-term business plan approved by the Board of Directors. Targets may include share-price related or financial targets at either Group or unit level, operational targets, employee engagement targets or customer satisfaction targets.

• All benefits, including pension benefits, follow the competitive practice in the home country taking total compensation into account.

• By way of exception, additional arrangements can be made when deemed necessary. An additional arrangement can be renewed but each such arrangement shall be limited in time and shall not exceed a period of 36 months and twice the remuneration that the individual would have received had no additional arrangement been made.

• The mutual notice period may be no more than six months. Upon termination of employment by the Company, severance pay amounting to a maximum of 18 months fixed salary is paid. Notice of termination given by the employee due to significant structural changes, or other events that in a determining manner affect the content of work or the condition for the position, is equated with notice of termination served by the Company.

Long-Term Variable compensation

The Long-Term Variable Compensation Program 2017 for the Executive Team

The Long-Term Variable Compensation Program 2017 for the Executive Team (LTV 2017) is an integral part of the Company’s remuneration strategy. The LTV 2017 has been approved by the Annual General Meeting (AGM) of shareholders 2017 and is designed to provide long-term incentives for members of the Executive Team (ET) and to incentivize the Company’s performance creating long-term value. The aim is to attract, retain, and motivate the executives in a competitive market through performance based share related incentives and to encourage the build-up of significant equity holdings to align the interests of the participants with those of the shareholders.

The LTV 2017 includes all members of ET, a total of 16 employees in 2017. Awards under LTV 2017 are granted to the participant, provided that certain performance conditions set out below are met, to receive a number of shares, free of charge, following expiration of a three-year vesting period (“Performance Share Awards”). Allotment of shares pursuant to Performance Share Awards are subject to the achievement of the performance conditions, as set out below, and generally requires that the participant retains his or her employment over a period of three years from the date of grant (the “Vesting Period”). All major decisions relating to LTV 2017 are taken by the Remuneration Committee, with approval by the full Board of Directors as required.

The participants were granted Performance Share Awards on May 18, 2017. The value of the underlying shares in respect of the Performance Share Award made to the President & CEO was 180% of the annual base salary, and for other participants 22.5% of the participants’ respective annual base salaries at the time of grant. The share price used to calculate the number of shares to which the Performance Share Award entitles was calculated as the volume-weighted average of the market price of Class B shares on Nasdaq Stock-holm during the five trading days immediately following the publication of the Company’s interim report for the first quarter of 2017.

The vesting of Performance Share Awards is subject to the satisfaction of challenging performance conditions which will determine what portion, if any, of the Performance Share Awards will vest at the end of the Performance Period as defined below. The two performance criteria are based on absolute Total Shareholder Return (TSR) and relative TSR development for the Class B share over the period January 1, 2017 to December 31, 2019 (the “Performance Period”). The details on how the TSR development will be calculated and measured are explained in minutes from the AGM 2017 under Item 17, and summarized below:

LTV 2017 and EPP 2017 Performance Targets

Year	Target	Criteria	Weight			Vesting
2017	Absolute TSR	Range: 6%–14%		50	%	0%–200% (linear pro-rata )
2017	Relative TSR	Ranking of Ericsson: 12–5		50	%	0%–200% (linear pro-rata )

Provided that the above performance criteria have been met during the Performance Period and that the Participant has retained his or her employment (unless special circumstances are at hand) during the Vesting Period, allotment of vested shares will take place as soon as practically possible following the expiration of the Vesting Period.

When determining the final vesting level of Performance Share Awards, the Board of Directors shall examine whether the vesting level is reasonable considering the Company’s financial results and position, conditions on the stock market and other circumstances, and if not, reduce the vesting level to lower level deemed appropriate by the Board of Directors.

In the event delivery of shares to the Participants cannot take place under applicable law or at a reasonable cost and employing reasonable administrative measures, the Board of Directors will be entitled to decide that Participants may, instead, be offered cash settlement.

Originally designated shares for LTV 2017 was comprising a maximum of 3 million shares, 0,7 million shares were granted for ET during 2017 with share price of SEK 57.15 at grant date. Fair value for LTV 2017 was SEK 65.68, compensation cost was SEK 9.9 million for 2017. The fair value, calculated at grant date for LTV 2017 is the average of the fair values established for absolute and relative TSR performance conditions on the grant date of May 18, 2017, using a Monte Carlo model, which uses a number of inputs, including expected dividends, expected share price volatility and the expected period to exercise.

The accounting treatment for LTV 2017 is prescribed in IFRS 2 Share-based payment as described in note C1 Significant accounting policies. As it is a share-settled plan with market conditions the total compensation expense is calculated based on the fair market value at grant date and recognized over the service period of three years. The amount is fixed for the service period, except for any persons leaving or added to the plan. Only such changes of persons adjust the total compensation expense.

The Executive Performance Plan 2017 (EPP 2017)

The Executive Performance Plan 2017 (EPP 2017) is also an integral part of the Company’s remuneration strategy. The aim is to attract, retain, and motivate senior managers in a competitive market through performance based long-term cash incentive supporting the achievement of the Company’s long-term strategies and business objectives.

Under the EPP 2017, up to 500 senior managers (452 nominated in 2017) are selected through a nomination process that identifies individuals according to performance, potential, critical skills, and business critical roles. There are two award levels at 15% and 22.5% of the participants’ annual gross salary. Participants are assigned a potential award, which is converted into a number of synthetic shares based on the same market price of Class B shares used for the LTV 2017. The three-year vesting period is the same as for the LTV 2017. The vesting level of the award is subject to the achievement of the same performance conditions over the same Performance Period defined for the LTV 2017, and generally requires that the participant retains his or her employment over the Vesting Period. At the end of the Vesting Period, the allotted synthetic shares are converted into a cash amount, based on the market price of Class B shares Nasdaq Stockholm at the payout date, and this final amount is paid to the Participant in cash gross before tax.

The accounting treatment for EPP 2017 is prescribed in IFRS 2 Share-based payment as described in Note C1, “Significant accounting policies.” At the start of the service period, compensation costs are calculated as for the LTV 2017. As it is a cash settled plan the compensation expense is remeasured during the service period, considering the impact of the share price development targets, being the same as under the LTV 2017. Total compensation expense for the Company is the same as the total pay-out to the employee.

2017 Key Contributor Plan

The 2017 Key Contributor Plan is part of Ericsson’s talent management strategy and is designed to recognize the best talent, individual performance, potential and critical skills as well as encourage the retention of key employees. Under the program, up to 7,000 employees (6,876 employees nominated in 2017) are selected through a nomination process that identifies individuals according to performance, potential, critical skills, and business critical roles. There are two award levels at 10% and 25% of the participants’ annual gross salary. Participants are assigned a potential award, which is converted into a number of synthetic shares based on the same market price of Class B shares used for the LTV 2017. There is a mandatory three-year retention period for receiving the award and the award is subject only to continued employment until the end of the retention period. The value of each synthetic share is driven by the absolute share price performance of Class B shares during the retention period. At the end of the retention period, the synthetic shares are converted into a cash amount, based on the market price of Class B shares Nasdaq Stock-holm at the payout date, and this final amount is paid to the Participant in cash gross before tax.

The cost of the cash based plans (the Executive Performance Plan 2017 and the 2017 Key Contributor Plan) in 2017 is shown in the table below:

Compensation cost under LTV cash based plans

(SEK million)	Number of synthetic shares (million)		Compensation cost year 2017 1)
Executive Performance Plan		2.3		31.4	2)
Key Contributor Plan		11.8		138.6	3)
Total compensation cost		14.1		170.0

1) 7.5 months between May 18 and December 31, 2017.

2) Fair value at grant date, SEK 65.68.

3) Fair value based on share price as of December 18, 2017, SEK 56.55.

Year 2017 is the first year under these plans and therefore the liability is equal to the cost for the year.

The accounting treatment for 2017 Key Contributor Plan is prescribed in IFRS 2 Share-based payment as described in Note C1, “Significant accounting policies.” At grant date the share price was SEK 57.15. As it is a cash settled plan the compensation expense is remeasured during the service period, considering the Ericsson share price development during the service period. The total cost for a plan for the three years of service is equal to the pay-out.

2014–2016 Long-Term Variable compensation programs

Until 2017, share-based compensation was made up of three different but linked plans: the all-employee Stock Purchase Plan, the Key Contributor Retention Plan, and the Executive Performance Stock Plan.

The Stock Purchase Plan

The Stock Purchase Plan was designed to offer an incentive for all employees to participate in the Company where practicable. For the 2016 and earlier plans, employees were able to save up to 7.5% of their gross fixed salary for purchase of Class B contribution shares at market price on Nasdaq Stockholm or American Depositary Shares (ADSs) on NASDAQ New York (contribution shares) during a twelve-month period (contribution period). If the contribution shares are retained by the employee for three years after the investment and their employment with the Ericsson Group continues during that time, then the employee’s shares will be matched with a corresponding number of Class B shares or ADSs free of consideration. Employees in 100 countries participate in the plans.

The table below shows the contribution periods and participation details for ongoing plans as of December 31, 2017.

Stock Purchase Plans

Plan	Contribution period	Number of participants at launch		Take-up rate–percent of eligible employees
Stock Purchase plan 2014	August 2014–July 2015		32,000		30	%
Stock Purchase plan 2015	August 2015–July 2016		33,800		31	%
Stock Purchase plan 2016	August 2016–July 2017		31,500		29	%

No Stock Purchase Plan was proposed in 2017.

The accounting treatment for SPP is prescribed in IFRS 2 Share-based payment as described in Note C1, “Significant accounting policies.” This plan is a stock purchase share-settled plan. The total cost for a plan for the three years of service is based on the number of shares that vest, due to savings and calculated based on the fair value of the shares as defined at grant date.

The Key Contributor Retention Plan

The Key Contributor Retention Plan was part of Ericsson’s talent management strategy and was designed to give recognition for performance, critical skills and potential as well as to encourage retention of key employees. Under the program, up to 10% of employees were selected through a nomination process that identifies individuals according to performance, critical skills and potential. Participants selected obtained one extra matching share in addition to the ordinary one matching share for each contribution share purchased under the Stock Purchase Plan during a twelve-month period.

Since no Stock Purchase Plan was proposed for 2017, a cash-based 2017 Key Contributor Plan was introduced replacing the Key Contributor Retention Plan. The Key Contributor Plan 2017 is described above.

The accounting treatment for the Key Contributor Retention Plan is the same as for the Stock Purchase Plan, however, these employees receive two shares for each share invested.

Executive Performance Stock Plan targets

	Base year value SEK billion		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	70	%	³	70	%	³	70	%
2015
Growth (Net sales growth)		228.0		Compound annual growth rate of 2–6%
Margin (Operating income growth)1)		16.8		Compound annual growth rate of 5–15%
Cash flow (Cash conversion)		—	³	70	%	³	70	%	³	70	%

1) Excluding extraordinary restructuring charges.

The Executive Performance Stock Plan

The Executive Performance Stock Plan was designed to focus management on driving earnings and provide competitive remuneration. Senior managers, including ET, were selected to obtain up to four or six extra shares (performance matching shares) in addition to the ordinary one matching share for each contribution share purchased under the Stock Purchase Plan. Up to 0.5% of employees were offered participation in the plan. The performance targets were linked to growth of Net Sales, Operating Income and Cash Conversion.

The table “Executive Performance Stock Plan targets” show ongoing Executive Performance Stock Plans as of December 31, 2017.

Since no Stock Purchase Plan was proposed for 2017, share-based Long-Term Variable Compensation Program 2017 (LTV 2017) was introduced for ET with the approval of shareholders in the 2017 Annual General Meeting of shareholders. For the senior managers, a cash based 2017 Executive Performance Plan (EPP 2017) was introduced replacing the Executive Performance Stock Plan. The LTV 2017 and the EPP 2017 are described above.

The accounting treatment for the Executive Performance Stock Plan is prescribed in IFRS 2 Share-based payment as described in note C1 Significant accounting policies. This plan is a stock purchase share-settled plan with performance conditions. The total cost for a plan for the three years of service is based on the number of shares that vest, due to fulfillment of targets and savings. The costs are calculated based on the fair value of the shares as defined at grant date.

Shares for LTV 2013–2016

Plan (million shares)		Stock Purchase Plan, Key Contributor Retention Plan and Executive Performance Stock Plans												Total
		2016			2015			2014			2013
Originally designated	A		21.6			23.5			22.8			26.6			94.5
Outstanding beginning of 2017	B		7.5			18.7			11.8			7.0			45.0
Awarded during 2017	C		17.1			—			—			—			17.1
Exercised/matched during 2017	D		1.4			1.6			3.2			6.8			13.0
Forfeited/expired during 2017	E		1.6			1.7			1.9			0.2			5.4
Outstanding end of 20171)	F=B+C–D–E		21.6			15.4			6.7			—			43.7
Compensation costs charged during 2017 (SEK million)3)	G		274.5	2)		315.4	2)		234.1	2)		51.5	2)		875.5

1) Shares under the Executive Performance Stock Plans were based on the fact that the 2013 plan came out at 39.7%, in casu 60.3% lapsed and that the 2014 plan vested for 33% and lapsed for 67%. For the other ongoing plans, cost is estimated.

2) Fair value is calculated as the share price on the investment date, reduced by the net present value of the dividend expectations during the three-year vesting period. Net present value calculations are based on data from external party. For shares under the Executive Performance Stock Plans, the company makes a forecast for the fulfillment of the financial targets for all ongoing plans except for 2013 and 2014 plans as disclosed under 1) when calculating the compensation cost. Fair value of the Class B share at each investment date during 2017 was: February 15 SEK 46.77, May 15 SEK 54.46 and August 15 SEK 46.19.

3) Total compensation costs charged during 2016: SEK 957 million, 2015: SEK 865 million.

Shares for LTV 2013–2016 and LTV 2017

LTV 2013–2016 and LTV 2017 are funded with treasury stock and are equity settled. Treasury stock for all plans has been issued in directed cash issues of Class C shares at the quotient value and purchased under a public offering at the subscription price plus a premium corresponding to the subscribers’ financing costs, and then converted to Class B shares.

For all these plans, additional shares have been allocated for financing of social security expenses. Treasury stock is sold on the Nasdaq Stockholm to cover social security payments when arising due to matching of shares. During 2017, 1,827,600 shares were sold at an average price of SEK 53.82. Sales of shares are recognized directly in equity.

If, as of December 31, 2017, all shares allocated for future matching 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, approximately 45 million Class B shares would be transferred, corresponding to 1.4% of the total number of shares outstanding, or 3,284 million not including treasury stock. As of December 31, 2017, 50 million Class B shares were held as treasury stock.

The table above shows how shares (representing matching rights but excluding shares for social security expenses) are being used for all outstanding 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 2017; (C) the number of shares awarded during 2017; (D) the number of shares matched during 2017; (E) the number of shares forfeited by participants or expired under the plan rules during 2017; and (F) the balance left as outstanding at the end of 2017, 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 2017 for each plan, calculated as fair value in SEK.

For a description of compensation cost, including accounting treatment, see Note C1, “Significant accounting policies,” section Share-based compensation to employees and the Board of Directors.

Employee numbers, wages and salaries

Employee numbers

Average number of employees by gender and market area

	2017						2016
	Women		Men		Total		Women		Men		Total
South East Asia, Oceania and India		5,212		19,773		24,985		6,106		20,499		26,605
North East Asia		4,189		8,657		12,846		4,297		9,186		13,483
North America		2,337		8,595		10,932		2,862		10,667		13,529
Europe and Latin America1) 2)		13,135		40,647		53,782		12,928		44,558		57,486
Middle East and Africa		920		3,904		4,824		743		4,570		5,313
Total		25,793		81,576		107,369		26,936		89,480		116,416
1)   Of which in Sweden		3,299		11,013		14,312		3,650		12,359		16,009
2)   Of which in EU		10,534		31,130		41,664		10,056		33,852		43,907

Number of employees by market area at year-end

	2017		2016
South East Asia, Oceania and India		24,495		26,570
North East Asia		12,456		13,042
North America		10,009		11,547
Europe and Latin America1) 2)		49,231		54,873
Middle East and Africa		4,544		5,432
Total		100,735		111,464
1)   Of which in Sweden		13,864		15,303
2)   Of which in EU		39,508		42,625

Number of employees by gender and age at year-end 2017

	Women			Men			Percent of total
Under 25 years old		1,611			2,283			4	%
25–35 years old		9,776			27,458			37	%
36–45 years old		6,452			25,301			31	%
46–55 years old		4,205			16,741			21	%
Over 55 years old		1,490			5,418			7	%
Percent of total		23	%		77	%		100	%

Employee movements

	2017		2016
Headcount at year-end		100,735		111,464
Employees who have left the Company		21,791		19,865
Employees who have joined the Company		11,062		15,048
Temporary employees		676		1,148

Employee wages and salaries

Wages and salaries and social security expenses

(SEK million)	2017		2016
Wages and salaries		58,966		60,064
Social security expenses		17,536		17,710
Of which pension costs		5,592		5,254

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)	2017	2016
Salary and other remuneration	347		462
Of which annual variable remuneration	79		106
Pension costs1)	32		38

1) Pension costs are over and above any social secutity charges and taxes.

Board members, Presidents and Group management by gender at year end

	2017						2016
	Women			Men			Women			Men
Parent Company
Board members and President		43	%		57	%		46	%		54	%
Group Management		36	%		64	%		35	%		65	%
Subsidiaries
Board members and Presidents		19	%		81	%		19	%		81	%

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C29 Related party transactions

12 Months Ended

Dec. 31, 2017

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C29 Related party transactions

C29    Related party transactions

During 2017, various minor related party transactions were executed pursuant to contracts based on terms customary in the industry and negotiated on an arm’s length basis. For information regarding equity and Ericsson’s share of assets, liabilities and income in joint ventures and associated companies, see Note C12, “Financial assets, non-current.”

For information regarding transactions with the Board of Directors and Group management, see Note C28, “Information regarding members of the Board of Directors, the Group management and employees.”

For information about the Company’s pension trusts, see Note C17, ”Post-employment benefits.”

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C30 Fees to auditors

12 Months Ended

Dec. 31, 2017

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C30 Fees to auditors

C30    Fees to auditors

Fees to auditors

	PwC		Others		Total
2017
Audit fees		89		2		91
Audit-related fees		11		—		11
Tax fees		13		4		17
Other fees		9		7		16
Total		122		13		135
2016
Audit fees		90		3		93
Audit-related fees		10		—		10
Tax fees		10		8		18
Other fees		16		11		27
Total		126		22		148
2015
Audit fees		91		2		93
Audit-related fees		11		—		11
Tax fees		19		13		32
Other fees		8		—		8
Total		129		15		144

The total fee to PwC and their networks of firms is SEK 122 millions. For 2017 SEK 39 million has been paid to the auditors for the audit engagement to the audit firm PricewaterhouseCoopers AB, SEK 10 million for other statutory engagements, SEK 3 million for tax advisory services and SEK 5 million for other services. No valuation services has been performed.

During the period 2015–2017, in addition to audit services, PwC provided certain audit-related services, tax and other services to the Company. The audit-related services include quarterly reviews, ISO audits, SSAE 16 reviews and services in connection with the issuing of certificates and opinions and consultation on financial accounting. The tax services include corporate tax compliance work. Other services include, work related to acquisitions and operational effectiveness.

Audit fees to other auditors largely consist of local statutory audits.

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C31 Contractual obligations

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

C31 Contractual obligations

C31    Contractual obligations

Contractual obligations 2017

	Payment due by period
SEK billion	< 1 year		1–3 years		3–5 years		> 5 years		Total
Current and Non-current debt1) 2)		2.8		8.9		14.3		7.9		33.9
Operating leases3)		3.5		5.4		3.4		4.8		17.1
Other non-current liabilities		0.4		0.7		—		1.7		2.8
Purchase obligations4)		6.2		0.9		0.7		—		7.8
Trade payables		26.3		—		—		—		26.3
Commitments for customer finance5)		9.7		—		—		—		9.7
Total		48.9		15.9		18.4		14.4		97.6

1) Including interest payments.

2) See also Note C19, “Interest-bearing liabilities.”

3) See also Note C27, “Leasing.”

4) The amounts of purchase obligations are gross, before deduction of any related provisions.

5) See also Note C14, “Trade receivables and customer finance.”

For information about financial guarantees, see Note C24, “Contingent liabilities.”

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C32 Events after the reporting period

12 Months Ended

Dec. 31, 2017

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C32 Events after the reporting period

C32    Events after the reporting period

Ericsson strengthens focus on innovation and makes changes to Executive Team

On January Jan 31 2018, Ericsson announced changes to the group structure and its Executive Team. A Business Area Emerging Business was created to increase focus on innovation and new business development. Effective April 1, 2018, Åsa Tamsons is appointed Senior Vice President and head of Business Area Emerging Business and member of Ericsson’s Executive Team. The new Business Area Emerging Business will be reported under Segment Other.

Business Area Digital Services is undergoing significant transformation to create a profitable and strong offering in this strategically important area. Ulf Ewaldsson has decided to step down from leading the unit, following the completion of its build up phase. Jan Karlsson, currently head of Solution Area BSS, will step in as acting head of Business Area Digital Services. Ulf Ewaldsson will take on a role as advisor to CEO Börje Ekholm.

The company is also simplifying its group function structure, from currently six functions to four. In light of the change in responsibilities Elaine Weidman- Grunewald has decided to leave the company to pursue other opportunities.

Ericsson concludes strategic review of Media Solutions and Red Bee Media

On January 31 2018, Ericsson concluded the review of strategic opportunities for its Media business – Media Solutions and Red Bee Media – which was initiated in conjunction with the announcement of the company’s focused business strategy on March 28, 2017. Ericsson has implemented substantial performance improvement programs while continuing to invest in the respective business. Both units have made significant progress during 2017. Outcome of the strategic review:

• One Equity Partners new majority owner in Media Solutions, Ericsson will retain 49% of the shares

• Media Solutions assets and staff to transfer to independent company upon closing, expected Q3 2018

• Continued in-house development of Red Bee Media

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C1 Significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2017

Text block1 [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: derivative financial instruments, financial instruments held for trading, financial instruments classified as available-for-sale 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 while for the consolidated balance sheet financial information with related notes is presented with only one comparison year.

Basis of consolidation and composition of the Group

Basis of consolidation and composition of the Group

The consolidated financial statements are prepared in accordance with the purchase method. Accordingly, consolidated stockholders’ equity includes equity in subsidiaries, joint ventures and associated companies earned only after their acquisition.

Subsidiaries are all companies for which Telefonaktiebolaget LM Ericsson, directly or indirectly, is the parent. To be classified as a parent, Telefonaktiebolaget LM Ericsson, directly or indirectly, must control another company which requires that the Parent Company has power over that other company, is exposed to variable returns from its involvement and has the ability to use its power over that other company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that such control ceases.

Intra-group balances and any unrealized income and expense arising from intra-group transactions are fully eliminated in preparing the consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

The Company is composed of a parent company, Telefonaktiebolaget LM Ericsson, with generally fully-owned subsidiaries in many countries of the world. The largest operating subsidiaries are the fully-owned telecom vendor companies Ericsson AB, incorporated in Sweden and Ericsson Inc., incorporated in the US.

Business combinations

Business combinations

At the acquisition of a business, the cost of the acquisition, being the purchase price, is measured as the fair value of the assets given, and liabilities incurred or assumed at the date of exchange, including any cost related to contingent consideration. Transaction costs attributable to the acquisition are expensed as incurred. The acquisition cost is allocated to acquired assets, liabilities and contingent liabilities based upon appraisals made, including assets and liabilities that were not recognized on the acquired entity’s balance sheet, for example intangible assets such as customer relations, brands, patents and financial liabilities. Goodwill arises when the purchase price exceeds the fair value of recognizable acquired net assets. In acquisitions with non-controlling interests full or partial goodwill can be recognized. Final amounts are established within one year after the transaction date at the latest.

In case there is a put option for non-controlling interest in a subsidiary a corresponding financial liability is recognized.

Non-controlling interest

Non-controlling interest

The Company treats transactions with non-controlling interests as transactions with equity owners of the Company. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

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 basis to measure the non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets.

Joint ventures and associated companies

Joint ventures and associated companies

Joint ventures and associated companies are accounted for in accordance with the equity method. Under the equity method, the investment in joint venture or associate is initially recognized at cost and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. If the Company’s interest in an associated company is nil, the Company shall not, as prescribed by IFRS, recognize its part of any future losses. Provisions related to obligations for such an interest shall, however, be recognized in relation to such an interest.

Investments in associated companies, i.e., when the Company has significant influence and the power to participate in the financial and operating policy decisions of the associated company, but is not in control or joint control over those policies. Normally, this is the case in voting stock interest, including effective potential voting rights, which stand at least at 20% but not more than 50%.

The Company’s share of income before taxes is reported in item “Share in earnings of joint ventures and associated companies,” included in Operating Income. This reflects the fact that these interests are held for operating rather than investing or financial purposes. Ericsson’s share of income taxes related to associated companies is reported under the line item “Taxes,” in the income statement.

Unrealized gains on transactions between the Company and its joint ventures and associated companies are eliminated to the extent of the Company’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Shares in earnings of joint ventures and associated companies included in consolidated equity which are undistributed are reported in Retained earnings in the balance sheet.

Impairment testing as well as recognition or reversal of impairment of investments in each joint venture and associated company is performed in the same manner as for intangible assets other than goodwill. The entire carrying value of each investment, including goodwill, is tested as a single asset. See also description under “Intangible assets other than goodwill” below.

If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in Other comprehensive income are reclassified to profit or loss where appropriate.

In Note C2, “Critical Accounting Estimates and Judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied.

Foreign currency remeasurement and translation

Foreign currency remeasurement and translation

Items included in the financial statements of each entity of the Company are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Swedish Krona (SEK), which is the Parent Company’s functional and presentation currency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of each respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement, unless deferred in Other comprehensive income under the hedge accounting practices as described below.

Changes in the fair value of monetary securities denominated in foreign currency classified as available-for-sale are analyzed 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 non-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.

Statement of cash flows

Statement of cash flows

The statement of cash flows is prepared in accordance with the indirect method. Cash flows in foreign subsidiaries are translated at the average exchange rate during the period. Payments for subsidiaries acquired or divested are reported as cash flow from investing activities, net of cash and cash equivalents acquired or disposed of respectively.

Cash and cash equivalents consist of cash, bank, and interest-bearing securities that are highly liquid monetary financial instruments with a remaining maturity of three months or less at the date of acquisition.

Revenue recognition

Revenue recognition

Background

The Company offers a comprehensive portfolio of telecommunication and data communication systems, professional services, and support solutions. Products, both hardware and software as well as services, are in general standardized. The impact of this is that any acceptance terms are normally only formal requirements. In Note C3, “Segment information,” the Company’s products and services are disclosed in more detail as per operating segment.

The Company’s products and services are generally sold under delivery-type or multi-year recurring services contracts. The delivery type contracts often contain content from more than one segment.

Accounting treatment

Sales are based on fair values of consideration received and recorded net of value added taxes, goods returned and estimated trade discounts. Revenue is recognized when risks and rewards have been transferred to the customer, with reference to all significant contractual terms, when:

• The product or service has been delivered

• The revenue amount is fixed or determinable

• The customer has received and activation has been made of separately sold software

• Collection is reasonably assured

Estimations of contractual performance criteria impact the timing and amounts of revenue recognized and may therefore defer revenue recognition until the performance criteria are met. The profitability of contracts is periodically assessed, and provisions for any estimated losses are made immediately when losses are probable.

Allocation and/or timing criteria specific to each type of contract are:

• Delivery-type contracts – These contracts relate to delivery, installation, integration of products and provision of related services, normally under multiple elements contracts. Under multiple elements contracts, accounting is based on that the revenue recognition criteria are applied to the separately identifiable components of the contract. Revenue, including the impact of any discount or rebate, is allocated to each element based on relative fair values.

• Contracts for services – These relate to multi-year service contracts such as support- and managed service contracts and other types of recurring services. Revenue is recognized when the services have been provided, generally pro rata over the contract period.

• Contracts generating license fees from third-parties for the use of the Company’s intellectual property rights – License fees are measured based on the substance of the contract. Examples are a percentage of sales or currency amount per unit and recognized over the license period or at a single point of time when no obligations remain. The amount of consideration shall also be reasonably certain. Networks and Digital services have contracts that relate to this type of arrangement.

For sales between consolidated companies, associated companies, joint ventures and segments, the Company applies arm’s length pricing.

In Note C2, “Critical accounting estimates and judgments,” a further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied.

Earnings per share

Earnings per share

Basic earnings per share are calculated by dividing net income attributable to stockholders of the Parent Company by the weighted average number of shares outstanding (total number of shares less treasury stock) during the year.

Diluted earnings per share are calculated by dividing net income attributable to stockholders of the Parent Company, when appropriately adjusted by the sum of the weighted average number of ordinary shares outstanding and dilutive potential ordinary shares. Potential ordinary shares are treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share.

Rights to matching shares are considered dilutive when the actual fulfillment of any performance conditions as of the reporting date would give a right to ordinary shares.

Financial assets

Financial assets

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. Regular purchases and sales of financial assets are recognized on the settlement date.

Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. Separate assets or liabilities are recognized if any rights and obligations are created or retained in the transfer.

The Company classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, and available-for-sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

Financial assets are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the income statement.

The fair values of quoted financial investments and derivatives are based on quoted market prices or rates. If official rates or market prices are not available, fair values are calculated by discounting the expected future cash flows at prevailing interest rates. Valuations of foreign exchange options and Interest Rate Guarantees (IRG) are made by using the Black-Scholes formula. Inputs to the valuations are market prices for implied volatility, foreign exchange and interest rates.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss either are designated as such at initial recognition or are financial assets held for trading. A financial asset is classified as held for trading if it is acquired principally for the purpose of selling in the near term.

Derivatives are classified as held for trading, unless they are designated as hedging instruments for the purpose of hedge accounting. Assets held for trading are classified as current assets.

Gains or losses arising from changes in the fair values of the “Financial assets at fair value through profit or loss” category (excluding derivatives) are presented in the income statement within Financial income in the period in which they arise. Derivatives are presented in the income statement either as Cost of sales, Other operating income, Financial income or Financial expense, depending on the intent with the transaction.

Loans and receivables

Receivables, including those that relate to customer financing, are subsequently measured at amortized cost using the effective interest rate method, less allowances for impairment charges. Trade receivables include amounts due from customers. The balance represents amounts billed to customers as well as amounts where risk and rewards have been transferred to the customer but the invoice has not yet been issued.

Collectability of the receivables is assessed for purposes of initial revenue recognition.

Available-for-sale financial assets

Investments in liquid bonds with low credit risk which are not held for trading are classified as available-for-sale. If the maturity is longer than one year the bonds are included in Interest-bearing securities, non-current. Bonds held as available-for-sale with a maturity shorter than one year are included in Interest-bearing securities, current. Unrealized gains and losses are recognized in OCI. When these securities are derecognized, the accumulated fair value adjustments will be included in financial income.

Dividends on available-for-sale equity instruments are recognized in the income statement as part of financial income when the Company’s right to receive payments is established.

Changes in the fair value of monetary securities denominated in a foreign currency and classified as available-for-sale are analyzed 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 on monetary securities are recognized in profit or loss; translation differences on non-monetary securities are recognized in OCI. Changes in the fair value of monetary and non-monetary securities classified as available-for-sale are recognized in OCI. When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments previously recognized in OCI are included in the income statement.

Impairment in relation to financial assets

At each balance sheet date, the Company assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is considered as evidence that the security is impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss – is removed from OCI and recognized in the income statement. Impairment losses recognized in the income statement on equity instruments are not reversed through the income statement.

An assessment of impairment of receivables is performed when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the trade receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognized in the income statement within selling expenses. When a trade receivable is finally established as uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited to selling expenses in the income statement.

Financial liabilities

Financial liabilities

Financial liabilities are recognized when the Company becomes bound to the contractual obligations of the instrument.

Financial liabilities are derecognized when they are extinguished, i.e., when the obligation specified in the contract is discharged, cancelled or expires.

Borrowings

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

Trade payables

Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

Fair value hedging and fair value hedge accounting

The purpose of fair value hedges is to hedge the variability in the fair value of fixed-rate debt (issued bonds) from changes in the relevant benchmark yield curve for its entire term by converting fixed interest payments to a floating rate (e.g., STIBOR or LIBOR) by using interest rate swaps (IRS). The credit risk/ spread is not hedged. The fixed leg of the IRS is matched against the cash flows of the hedged bond. Hereby, the fixed-rate bond/debt is converted into a floating-rate debt in accordance with the policy.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, when hedge accounting is applied. The Company only applies fair value hedge accounting for hedging fixed interest risk on borrowings. Both gains and losses relating to the interest rate swaps hedging fixed rate borrowings and the changes in the fair value of the hedged fixed rate borrowings attributable to interest rate risk are recognized in the income statement within Financial expenses. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortized to the income statement over the remaining period to maturity.

When applying fair value hedge accounting, derivatives are initially recognized at fair value at trade date and subsequently re-measured at fair value.

At the inception of the hedge, the Company documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of the hedged items.

The fair values of various derivative instruments used for hedging purposes are disclosed in Note C20, “Financial risk management and financial instruments.” Movements in the hedging reserve in OCI are shown in Note C16, “Equity and other comprehensive income.” The fair value of a hedging derivative is classified as a non-currentasset or liability when the remaining maturity of the hedged item is more than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as current assets or liabilities.

Financial guarantees

Financial guarantees

Financial guarantee contracts are initially recognized at fair value (i.e., usually the fee received). Subsequently, these contracts are measured at the higher of:

• The amount determined as the best estimate of the net expenditure required to settle the obligation according to the guarantee contract.

• The recognized contractual fee less cumulative amortization when amortized over the guarantee period, using the straight-line-method.

• The best estimate of the net expenditure comprising future fees and cash flows from subrogation rights.

Inventories

Inventories

Inventories are measured at the lower of cost or net realizable value on a first-in, first-out (FIFO) basis.

Risks of obsolescence have been measured by estimating market value based on future customer demand and changes in technology and customer acceptance of new products.

A significant part of Inventories is Contract work in progress (CWIP). Recognition and derecognition of CWIP relates to the Company’s revenue recognition principles meaning that costs incurred under a customer contract are recognized as CWIP. When revenue is recognized, CWIP is derecognized and is instead recognized as Cost of sales.

In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied.

Goodwill

Goodwill

As from the acquisition date, goodwill acquired in a business combination is allocated to each cash-generating unit (CGU) of the Company expected to benefit from the synergies of the combination.

An annual impairment test for the CGUs to which goodwill has been allocated is performed in the fourth quarter, or when there is an indication of impairment. An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The recoverable amount is the higher of the value in use and the fair value less costs of disposal. In assessing value in use, the estimated future cash flows after tax are discounted to their present value using an after-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Application of after tax amounts in calculation, both in relation to cash flows and discount rate is applied due to that available models for calculating discount rate include a tax component. The after-tax discount rate applied by the Company is not materially different from a discounting based on before-tax future cash flows and before-tax discount rates, as required by IFRS. An impairment loss in respect of goodwill is not reversed. Write-downs of goodwill are reported under other operating expenses.

Additional disclosure is required in relation to goodwill impairment testing: see Note C2, “Critical accounting estimates and judgments” below and Note C10, “Intangible assets.”

Intangible assets

Intangible assets

Intangible assets other than goodwill

Intangible assets other than goodwill comprise intangible assets acquired through business combinations, such as patents, customer relations, trademarks and software, as well as capitalized development expenses and separately acquired intangible assets, mainly consisting of software. At initial recognition, acquired intangible assets related to business combinations are stated at fair value and capitalized development expenses and software are stated at cost. Subsequent to initial recognition, these intangible assets are stated at initially recognized amounts less accumulated amortization and any impairment. Amortization and any impairment losses are included in Research and development expenses, which mainly consists of capitalized development expenses and technology; in Selling and administrative expenses, which mainly consists of expenses relating to customer relations and brands; and in Cost of sales.

Costs incurred for development of products to be sold, leased, or otherwise marketed or intended for internal use are capitalized as from when technological and economic feasibility has been established until the product is available for sale or use. Research and development expenses directly related to orders from customers are accounted for as a part of Cost of sales. Other research and development expenses are charged to income as incurred. Amortization of acquired intangible assets, such as patents, customer relations, trademarks, and software, is made according to the straight-line method over their estimated useful lives, not exceeding ten years.

The Company has not recognized any intangible assets with indefinite useful life other than goodwill.

Impairment tests are performed whenever there is an indication of possible impairment. Tests are performed as for goodwill, see above. However, intangible assets not yet available for use are tested annually.

Corporate assets have been allocated to cash-generating units in relation to each unit’s proportion of total net sales. The amount related to corporate assets is not significant. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.

In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied.

Property, plant, and equipment

Property, plant, and equipment

Property, plant, and equipment consist of real estate, machinery, servers and other technical assets, other equipment, tools and installation and construction in process and advance payment. They are stated at cost less accumulated depreciation and any impairment losses.

Depreciation is charged to income, on a straight-line basis, over the estimated useful life of each component of an item of property, plant, and equipment, including buildings. Estimated useful lives are, in general, 25–50 years for real estate and 3–10 years for machinery and equipment. Depreciation and any impairment charges are included in Cost of sales, Research and development or Selling and administrative expenses.

The Company recognizes in the carrying amount of an item of property, plant, and equipment the cost of replacing a component and derecognizes the residual value of the replaced component.

Impairment testing as well as recognition or reversal of impairment of property, plant and equipment is performed in the same manner as for intangible assets other than goodwill, see description under “Intangible assets other than goodwill” above.

Gains and losses on disposals are determined by comparing the proceeds less cost to sell with the carrying amount and are recognized within Other operating income and expenses in the income statement.

Leasing

Leasing

Leasing when the Company is the lessee

Leases on terms in which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that type of asset, although the depreciation period must not exceed the lease term.

Other leases are operating leases, and the leased assets under such contracts are not recognized on the balance sheet. Costs under operating leases are recognized in the income statement on a straight-line basis over the term of the lease. Lease incentives received are recognized as an integral part of the total lease expense, over the term of the lease.

Leasing when the Company is the lessor

Leasing contracts with the Company as lessor are classified as finance leases when the majority of risks and rewards are transferred to the lessee, and otherwise as operating leases. Under a finance lease, a receivable is recognized at an amount equal to the net investment in the lease and revenue is recognized in accordance with the revenue recognition principles.

Under operating leases the equipment is recorded as property, plant and equipment and revenue as well as depreciation is recognized on a straight-line basis over the lease term.

Income taxes

Income taxes

Income taxes in the consolidated financial statements include both current and deferred taxes. Income taxes are reported in the income statement unless the underlying item is reported directly in equity or OCI. For those items, the related income tax is also reported directly in equity or OCI. A current tax liability or asset is recognized for the estimated taxes payable or refundable for the current year or prior years.

Deferred tax is recognized for temporary differences between the book values of assets and liabilities and their tax values and for tax loss carry-forwards. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences and tax loss carry-forwards can be utilized. In the recognition of income taxes, the Company offsets current tax receivables against current tax liabilities and deferred tax assets against deferred tax liabilities in the balance sheet, when the Company has a legal right to offset these items and the intention to do so. Deferred tax is not recognized for the following temporary differences: goodwill not deductible for tax purposes, for the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and for differences related to investments in subsidiaries when it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax is measured at the tax rate that is expected to be applied to the temporary differences when they reverse, based on the tax laws that have been enacted or substantively enacted by the reporting date. An adjustment of deferred tax asset/liability balances due to a change in the tax rate is recognized in the income statement, unless it relates to a temporary difference earlier recognized directly in equity or OCI, in which case the adjustment is also recognized in equity or OCI.

The measurement of deferred tax assets involves judgment regarding the deductibility of costs not yet subject to taxation and estimates regarding sufficient future taxable income to enable utilization of unused tax losses in different tax jurisdictions. All deferred tax assets are subject to annual review of probable utilization.

In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied.

Provisions and contingent liabilities

Provisions and contingent liabilities

Provisions are made when there are legal or constructive obligations as a result of past events and when it is probable that an outflow of resources will be required to settle the obligations and the amounts can be reliably estimated.

When the effect of the time value of money is material, discounting is made of estimated outflows. However, the actual outflows as a result of the obligations may differ from such estimates.

The provisions are mainly related to restructuring, customer and supplier related provisions, warranty commitments and other obligations, such as unresolved income tax and value added tax issues, claims or obligations as a result of patent infringement and other litigations and customer finance guarantees .

Product warranty commitments consider probabilities of all material quality issues based on historical performance for established products and expected performance for new products, estimates of repair cost per unit, and volumes sold still under warranty up to the reporting date.

A restructuring obligation is considered to have arisen when the Company has a detailed formal plan for the restructuring (approved by management), which has been communicated in such a way that a valid expectation has been raised among those affected. Provision for restructuring is recorded when the Company can reliably estimate the liabilities relating to the obligation. Project related provisions include estimated losses on onerous contracts, contractual penalties and undertakings. For losses on customer contracts, a provision equal to the total estimated loss is recorded when a loss from a contract is anticipated and possible to estimate reliably. These contract loss estimates include any probable penalties to a customer under a loss contract.

Other provisions include provisions for unresolved tax issues, litigations, customer finance and other provisions. The Company provides for estimated future settlements related to patent infringements based on the probable outcome of each infringement. The actual outcome or actual cost of settling an individual infringement may vary from the Company’s estimate.

The Company estimates the outcome of any potential patent infringement made known to the Company through assertion and through the Company’s own monitoring of patent-related cases in the relevant legal systems. To the extent that the Company makes the judgment that an identified potential infringement will more likely than not result in an outflow of resources, the Company records a provision based on the Company’s best estimate of the expenditure required to settle with the counterpart.

In the ordinary course of business, the Company is subject to proceedings, lawsuits and other unresolved claims, including proceedings under laws and government regulations and other matters. These matters are often resolved over a long period of time. The Company regularly assesses the likelihood of any adverse judgments in or outcomes of these matters, as well as potential ranges of possible losses. Provisions are recognized when it is probable that an obligation has arisen and the amount can be reasonably estimated based on a detailed analysis of each individual issue.

Certain present obligations are not recognized as provisions as it is not probable that an economic outflow will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. Such obligations are reported as contingent liabilities. For further detailed information, see Note C24, “Contingent liabilities.” In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to (i) key sources of estimation uncertainty and (ii) the decision made in relation to accounting policies applied.

Post-employment benefits

Post-employment benefits

Pensions and other post-employment benefits are classified as either defined contribution plans or defined benefit plans. Under a defined contribution plan, the Company’s only obligation is to pay a fixed amount to a separate entity (a pension trust fund) with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits. The related actuarial and investment risks fall on the employee. The expenditures for defined contribution plans are recognized as expenses during the period when the employee provides service.

Under a defined benefit plan, it is the Company’s obligation to provide agreed benefits to current and former employees. The related actuarial and investment risks fall on the Company.

The present value of the defined benefit obligations for current and former employees is calculated using the Projected Unit Credit Method. The discount rate for each country is determined by reference to market yields on high-quality

corporate bonds that have maturity dates approximating the terms of the Company’s obligations. In countries where there is no deep market in such bonds, the market yields on government bonds are used. The calculations are based upon actuarial assumptions, assessed on a quarterly basis, and are as a minimum prepared annually. Actuarial assumptions are the Company’s best estimate of the variables that determine the cost of providing the benefits. When using actuarial assumptions, it is possible that the actual results will differ from the estimated results or that the actuarial assumptions will change from one period to another. These differences are reported as actuarial gains and losses. They are, for example, caused by unexpectedly high or low rates of employee turnover, changed life expectancy, salary changes, remeasurement of plan assets and changes in the discount rate. Actuarial gains and losses are recognized in OCI in the period in which they occur. The Company’s net liability for each defined benefit plan consists of the present value of pension commitments less the fair value of plan assets and is recognized net on the balance sheet. When the result is a net benefit to the Company, the recognized asset is limited to the present value of any future refunds from the plan or reductions in future contributions to the plan.

Interest cost on the defined benefit obligation and interest income on plan assets is calculated as a net interest amount by applying the discount rate to the net defined benefit liability. All past service costs are recognized immediately. Swedish special payroll tax is accounted for as a part of the pension cost and the pension liability respectively.

Payroll taxes related to actuarial gains and losses are included in determining actuarial gains and losses, reported under OCI.

In Note C2, “Critical accounting estimates and judgments,” further disclosure is presented in relation to key sources of estimation uncertainty.

Share-based compensation to employees and the Board of Directors

Share-based compensation to employees and the Board of Directors

Share-based compensation is related to remuneration to employees, including key management personnel and the Board of Directors and could be settled either in shares or cash.

Under IFRS, a company shall recognize compensation costs for share-based compensation programs based on a measure of the value to the company of services received under the plans. The conditions under a program shall be considered as prescribed in IFRS 2.

The share-based programs are as of 2017 both share – and cash settled but as from 2017 granted plans are, except for plans for the Executive team, cash settled.

Share settled plans

Compensation costs are recognized during the vesting period, based on the fair value of the Ericsson share at the grant date, as well as considering performance – and market conditions. Examples of performance conditions could be revenue and profit targets while market conditions relates to the development of the Parent Company´s share price.

The amount charged to the income statement for these plans is reversed in equity each time of the income statement charge. The reason for this IFRS accounting principle is that compensation cost for a share settled program is a cost with no direct cash flow impact. All plans have service conditions and some of them have performance or market conditions. For further detailed information, see Note C28, “Information regarding members of the Board of Directors, the Group management and employees.”

Cash settled plans

The total compensation expense for a cash settled plan is equal to the payments made to the employees at the date of end of the service period. The fair value of the synthetic shares, being the cash equivalents of shares, is therefore reassessed and amended during the service period. Otherwise the accounting is similar to a share settled plan.

For further detailed information, see Note C28, “Information regarding members of the Board of Directors, the Group management and employees.”

Compensation to the Board of Directors

During 2008, the Parent Company introduced a share-based compensation program as a part of the remuneration to the Board of Directors (a synthetic share program). The program gives non-employee Directors elected by the General Meeting of shareholders a right to receive part of their remuneration as a future payment of an amount which corresponds to the market value of a share of class B in the Parent Company at the time of payment, as further disclosed in Note C28, “Information regarding members of the Board of Directors, the Group management and employees.” The cost for cash settlements is measured and recognized based on the estimated costs for the program on a pro rata basis during the service period, being one year. The estimated costs are remeasured during and at the end of the service period.

Segment reporting

Segment reporting

An operating segment is a component of a company whose operating results are regularly reviewed by the Company’s chief operating decision maker, (CODM), to make decisions about resources to be allocated to the segment and assess its performance. The President and the Chief Executive Officer is defined as the CODM function in the Company.

The segment presentation, as per each segment, is based on the Company’s accounting policies as disclosed in this note. The arm’s length principle is applied in transactions between the segments.

The Company’s segment disclosure about geographical areas is based on the country in which transfer of risks and rewards occur.

For further information, see Note C3, “Segment information.”

New standards and interpretations

Accounting Policy – New standards and interpretations

A number of issued new standards, amendments to standards and interpretations are not yet effective for the year ended December 31, 2017 and have not been applied in preparing these consolidated financial statements. Below is a list of applicable standards/interpretations that have been issued and are effective for periods as described per standard.

IFRS 9, “Financial instruments” is effective from January 1, 2018. The complete version of IFRS 9 replaces most of the guidance in IAS 39, which had been applied in the current reporting period ended December 31, 2017.

IFRS 15, “Revenue from Customer Contracts” is effective from January 1, 2018. This new standard replaces guidance in IAS 18 and IAS 11, which had been applied in the current reporting period ended December 31, 2017.

IFRS 16, “Leases” is effective from January 1, 2019. This new standard replaces guidance in IAS 17 Leases and the related interpretations IFRIC 4, SIC-15 and SIC-27.

The following table illustrates the impact of the implementation of IFRS 9 and IFRS 15 on equity and other balance sheet items at the transition date of January 1, 2018. IFRS 15 will be applied on a full retrospective basis which means that the comparative financial statements will be restated. IFRS 9 will be applied at January 1, 2018 which means that the opening balances at January 1, 2018 will be adjusted, but the previous periods will not be restated.

Estimated impact of IFRS 9 and IFRS 15 on Balance sheet items

					Restated				Adjusted
	As reported		IFRS 15		balance		IFRS 9		balance at
	31.12. 2017		restatement		31.12. 2017		adjustment		1.1.2018
Assets
Non-current assets
Deferred tax assets		21,228		735		21,963		407		22,370
Current assets
Inventories		24,960		587		25,547		—		25,547
Contract assets		—		13,120		13,120		—		13,120
Trade receivables		63,210		–15,105		48,105		–1,240		46,865
Equity and liabilities
Equity		100,176		–2,605		97,571		–1,401		96,170
Non-current liabilities
Borrowings, non-current		30,500		—		30,500		568		31,068
Current liabilities
Contract liabilities		—		22,121		22,121		—		22,121
Other current liabilities		62,370		–20,179		42,191		—		42,191

IFRS 9 – Financial instruments

The complete version of IFRS 9 replaces most of the guidance in IAS 39. IFRS 9 updates the classification, measurement and impairment of financial assets as well as provides new requirements for hedge accounting. The Company will apply IFRS 9 retrospectively on the required effective date, January 1, 2018, and will not restate comparative information. The transition to IFRS 9 is estimated to reduce equity by SEK 1.4 billion on January 1, 2018. The main impact from adopting IFRS 9 will be that impairment losses for trade receivables and contract assets will be calculated based on lifetime expected credit losses (ECL) instead of objective evidence that the Company will not be able to collect, as under the previous standards. This does not represent a change in expected cash flows collected by the Company. Rather, this represents a change in the timing of the recognition of losses, which in most cases is earlier under IFRS 9 compared to the previous standards. At transition, the loss allowance for trade receivables is estimated to increase by SEK 1.2 billion. The other changes from implementing IFRS 9 are described below.

• Investments in liquid bonds with low credit risk which are not held for trading were classified as available-for-sale under the previous standards.

These instruments are held in a portfolio managed on a fair value basis and will therefore be classified fair value through profit or loss (FVTPL). There will be no change in the valuation of these assets.

• Trade receivables are managed in a business model whose objective is achieved through both collection of contractual cash flows and selling of assets. Therefore, trade receivables will be classified as fair value through other comprehensive income (FVOCI).

• Customer finance assets are managed in a business model with the objective to realize cash flows through the sale of assets. Therefore, customer finance will be classified FVTPL. There will be no change in the carrying value of these assets at transition.

• Investments in equity instruments, which were classified as available-for-sale under previous standards, will be classified as FVTPL with no impact on carrying value.

• Notes, bonds, and loans issued by the Parent Company are managed on a fair value basis and will therefore be designated as FVTPL with changes in fair value due to changes in credit risk realized in OCI. As a result, the carrying value of borrowings is estimated to increase by SEK 0.6 billion. Fair value hedge accounting will not be applied to any borrowings as from 2018.

IFRS 15 – Revenue from Contracts with Customers

IFRS 15 replaces guidance in IAS 18 and IAS 11. This standard establishes a new principle-based model of recognizing revenue from customer contracts. It introduces a five-step model that requires revenue to be recognized when control over goods and services are transferred to the customer.

The Company will adopt the full retrospective method for transition which requires restatement of prior year comparatives and adjustment to equity in the earliest presented comparative period, i.e. January 1, 2016 (‘initial application date’).

The Company has completed its assessment of the impact of IFRS 15 to its financial statements for all relevant comparative periods. Additional processes were implemented as part of the quantification exercise to accurately identify material transition impact, thus enabling it to be disclosed as part of the financial reporting process.

The impact of IFRS 15 is estimated to be a net reduction to equity at transition date, January 1, 2018, of SEK 2.6 billion.

The main impacted areas are described below.

Discount in a contract

The definition of a contract in IFRS 15 is stricter than standards effective prior to 2018 (previous standards) in that a contract exists only when enforceable rights and obligations are present. The majority of the Company’s business is conducted via frame agreements. Typically, a customer purchase order, together with a frame agreement, creates a firm enforceable commitment. The stricter definition of a contract affects how discounts are accounted for, as discounts shall be applied over the value and duration of a contract.

Under the previous standards, the Company considers a broader interpretation of a contract from which it reasonably expects to derive benefit. For a business covered by frame agreement this may result in a longer timeframe for recognition of related discounts as future expected purchases are included in the assessment. The impact of IFRS 15 is that these discounts shall be recognized as a reduction in revenue earlier.

Customized solution contract

Under IFRS 15 revenue for customized solution contracts shall be recognized over time if certain criteria are met. These contracts relate to the construction of assets specifically customized for the customer and with no alternative use to the Company. IFRS 15 also requires the Company to have enforceable right to payment for performance completed to date.

The Company recognized revenue under previous standards over the duration of these contracts based on defined delivery milestones. No significant changes are expected in the method of measuring progress of completion over the duration of the contract. However, the additional requirement under IFRS 15 will ensure that revenue is recognized for performance completed to date based on enforceable right to payment that exists at that point. The Company has identified ongoing contracts where revenue will be deferred as the performance completed to date is restricted under IFRS 15 to enforceable billing rights under the contracts.

Transfer of control for equipment

Under IFRS 15, revenue shall be recognized when control over the equipment is transferred to the customer at a point in time. This assessment shall be viewed from a customer’s perspective considering indicators such as transfer of titles and risks, customer acceptance, physical possession, and billing rights. For hardware sale, transfer of control is usually deemed to occur when equipment arrives at the customer site and for software sale, when the licences are made available to the customer. Contractual terms may vary, therefore judgment will be applied when assessing the indicators of transfer of control.

The accounting treatment under previous standards focused on a risk and reward assessment. The Company has identified contracts where the transfer of control under IFRS 15 differs from the previous risk and reward assessment. The resulting impact is a delay in revenue recognition on these contracts. Under previous standards revenue is recognized on these contracts when risk of the equipment are transferred at handover points, but the definition of transfer of control in IFRS 15 means that other factors such as billing right and physical possession together indicate that transfer of control occurs at a later point.

Presentation of contract related balances

The new requirement for classification and presentation of contract related balances under IFRS 15 will result in a separate presentation of the contract asset and contract liability balances. At transition date, contract asset balance, estimated to be SEK 13.1 billion, will be presented separately within current assets. Under previous standards these balances have been included within trade receivables as the accounting policy (see Note C1) for 2017 states that trade receivables include amounts where risks and rewards have been transferred to the customer but not yet invoiced. Under IFRS 15, these balances will be presented as contract assets since the Company concluded that they relate to contract assets that are conditional on terms other than only the passage of time.

At transition date, contract liability balance, estimated to be SEK 22.1 billion, will be presented separately within current liabilities. Under previous standards these balances have been disclosed as deferred revenue within other current liabilities, and the Company concluded that they meet the definition of contract liability under IFRS 15.

The Company has considered the key areas impacted above and implemented the significant changes to the accounting principles, internal processes and internal controls framework to reflect the new revenue recognition model from January 1, 2018.

The Company expects to use a number of estimates and judgments in determining the amount and timing of revenue under IFRS 15, particularly when determining the transaction price and its allocation to performance obligations identified under the contract. Transaction price may consist of variable elements such as performance related price and contract penalties that are estimated at the commencement of the contract (and periodically thereafter). Judgment is used in the estimation process based on historical experience with the type of business and customer.

IFRS 15 also requires revenue to be allocated to each performance obligations by reference to their standalone selling prices. The Company considers that an adjusted market assessment approach should be used to estimate stand-alone selling prices for its products and services for the purposes of allocating transaction price.

As the Company will adopt the full retrospective method for IFRS 15 implementation, the impacts on equity (at initial application date of January 1, 2016) and on the income statement (for years 2016 and 2017) are presented in the tables below.

Estimated impact of IFRS 15 on Equity

	As reported		Impact of IFRS 15		Restated
December 31, 2015		147,366		–4,353		143,013
December 31, 2016		140,492		–5,235		135,257

Estimated impact of IFRS 15 on Income statement items

	As reported		Impact of IFRS 15		Restated
2017
Net sales		201,303		4,075		205,378
Cost of sales		–156,758		–703		–157,461
Gross income		44,545		3,372		47,917
Operating income (loss)		–38,126		3,372		–34,754
Taxes		4,267		–742		3,525
Net income (loss)		–35,063		2,630		–32,433
2016
Net sales		222,608		–2,292		220,316
Cost of sales		–156,243		1,160		–155,083
Gross income		66,365		–1,132		65,233
Operating income		6,299		–1,132		5,167
Taxes		–2,131		249		–1,882
Net income		1,895		–883		1,012

IFRS 16 – Leases

In January 2016, IASB issued a new lease standard, IFRS 16, that will replace IAS 17 Leases and the related interpretations IFRIC 4, SIC-15 and SIC-27. The standard requires assets and liabilities arising from all leases, with some exceptions, to be recognized on the balance sheet. This model reflects that, at the start of a lease, the lessee always obtains the right to use an asset for a period of time and has an obligation to pay for that right. The accounting for lessors will be based on the same classification as under IAS 17, operating or finance leasing. The definition of a lease is amended. The standard is effective for annual periods beginning on or after January 1, 2019. The Company will apply the new standard as from January 1, 2019. The initial assessment indicates that the main impact on the balance sheet is expected, where the Company is the lessee, primarily in contracts for real estate and vehicles. The Company plans to apply a modified transition method. The impact on the financial statements is not yet defined. In Note C27, “Leasing,” disclosure is given about future lease payments.

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C1 Significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Impact on Implementation of IFRS 9 and IFRS 15 on Equity and Other Balance Sheet Items

Estimated impact of IFRS 9 and IFRS 15 on Balance sheet items

					Restated				Adjusted
	As reported		IFRS 15		balance		IFRS 9		balance at
	31.12. 2017		restatement		31.12. 2017		adjustment		1.1.2018
Assets
Non-current assets
Deferred tax assets		21,228		735		21,963		407		22,370
Current assets
Inventories		24,960		587		25,547		—		25,547
Contract assets		—		13,120		13,120		—		13,120
Trade receivables		63,210		–15,105		48,105		–1,240		46,865
Equity and liabilities
Equity		100,176		–2,605		97,571		–1,401		96,170
Non-current liabilities
Borrowings, non-current		30,500		—		30,500		568		31,068
Current liabilities
Contract liabilities		—		22,121		22,121		—		22,121
Other current liabilities		62,370		–20,179		42,191		—		42,191

Summary of Estimated Impact of IFRS 15 on Equity

Estimated impact of IFRS 15 on Equity

	As reported		Impact of IFRS 15		Restated
December 31, 2015		147,366		–4,353		143,013
December 31, 2016		140,492		–5,235		135,257

Summary of Estimated Impact of IFRS 15 on Income Statement Items

Estimated impact of IFRS 15 on Income statement items

	As reported		Impact of IFRS 15		Restated
2017
Net sales		201,303		4,075		205,378
Cost of sales		–156,758		–703		–157,461
Gross income		44,545		3,372		47,917
Operating income (loss)		–38,126		3,372		–34,754
Taxes		4,267		–742		3,525
Net income (loss)		–35,063		2,630		–32,433
2016
Net sales		222,608		–2,292		220,316
Cost of sales		–156,243		1,160		–155,083
Gross income		66,365		–1,132		65,233
Operating income		6,299		–1,132		5,167
Taxes		–2,131		249		–1,882
Net income		1,895		–883		1,012

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C3 Segment information (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of operating segments

Operating segments 2017

	Networks			Digital Services			Managed Services			Other			Total Segments			Unallocated		Group
Segment sales		127,966			40,981			24,494			7,862			201,303			—		201,303
Net sales		127,966			40,981			24,494			7,862			201,303			—		201,303
Gross income		40,622			4,361			–1,816			1,378			44,545			—		44,545
Gross margin (%)		32	%		11	%		–7	%		18	%		22	%				22	%
Operating income (loss)		7,644			–27,672			–4,274			–13,824			–38,126			—		–38,126
Operating margin (%)		6	%		–68	%		–17	%		–176	%		–19	%		—		–19	%
Financial income																			–361
Financial expenses																			–843
Income after financial items																			–39,330
Taxes																			4,267
Net income (loss)																			–35,063
Other segment items
Share in earnings of JV and associated companies		22			8			–6			—			24			—		24
Amortization		–1,104			–2,465			–14			–765			–4,348			—		–4,348
Depreciation		–1,883			–1,268			–193			–759			–4,103			—		–4,103
Impairment losses		–1,413			–9,349			–108			–8,571			–19,441			—		–19,441
Restructuring expenses		–4,828			–2,513			–675			–485			–8,501			—		–8,501
Gains/losses on sale of investments and operations		316			–56			1			–67			194			—		194

Operating segments 2016

	Networks			Digital Services			Managed Services			Other			Total Segments			Unallocated		Group
Segment sales		140,984			45,298			27,501			8,825			222,608			—		222,608
Net sales		140,984			45,298			27,501			8,825			222,608			—		222,608
Gross income		47,099			16,081			1,062			2,123			66,365			—		66,365
Gross margin (%)		33	%		36	%		4	%		24	%		30	%		—		30	%
Operating income		17,570			–6,663			–507			–4,101			6,299			—		6,299
Operating margin (%)		12	%		–15	%		–2	%		–46	%		3	%		—		3	%
Financial income																			–115
Financial expenses																			–2,158
Income after financial items																			4,026
Taxes																			–2,131
Net income																			1,895
Other segment items
Share in earnings of JV and associated companies		11			22			—			–2			31			—		31
Amortization		–1,526			–1,923			–18			–998			–4,465			—		–4,465
Depreciation		–2,532			–1,061			–341			–487			–4,421			—		–4,421
Impairment losses		–90			–38			–12			–101			–241			—		–241
Reversals of impairment losses		5			2			1			—			8			—		8
Restructuring expenses		–3,413			–3,176			–382			–596			–7,567			—		–7,567
Gains/losses on sale of investments and operations		72			27			18			6			123			—		123

Operating segments 2015

	Networks			Digital Services			Managed Service			Other			Total Segments			Unallocated		Group
Segment sales		157,791			49,443			30,597			9,089			246,920			—		246,920
Net sales		157,791			49,443			30,597			9,089			246,920			—		246,920
Gross income		59,653			21,264			1,655			3,246			85,818			—		85,818
Gross margin (%)		38	%		43	%		5	%		36	%		35	%		—		35	%
Operating income		28,290			–3,389			–19			–3,077			21,805			—		21,805
Operating margin (%)		18	%		–7	%		—			–34	%		9	%		—		9	%
Financial income																			525
Financial expenses																			–2,458
Income after financial items																			19,872
Taxes																			–6,199
Net income																			13,673
Other segment items
Share in earnings of JV and associated companies		–1			–33			10			–14			–38			—		–38
Amortization		–2 042			–2 469			–47			–960			–5 518			—		–5,518
Depreciation		–2 865			–1 012			–388			–440			–4 705			—		–4,705
Impairment losses		—			—			—			–20			–20			—		–20
Reversals of impairment losses		10			3			1			2			16			—		16
Restructuring expenses		–2 765			–1 875			–238			–162			–5 040			—		–5,040
Gains/losses on sale of investments and operations		–32			–10			–7			—			–49			—		–49

Summary of geographical information

Market areas

	Net sales						Non-current assets 5)
	2017		2016		2015		2017		2016		2015
South East Asia, Oceania & India		30,568		32,597		32,155		512		690		668
North East Asia4)		23,506		27,185		28,106		1,516		1,556		2,005
North America3)		49,621		52,003		55,063		8,387		14,650		14,870
Europe & Latin America1)2)		56,175		62,543		73,603		39,559		59,737		55,325
Middle East & Africa		25,073		28,104		33,002		63		86		139
Other1)2)3)4)		16,360		20,176		24,991		—		—		—
Total		201,303		222,608		246,920		50,037		76,719		73,007
1) Of which in Sweden6)		2,989		3,123		3,796		34,381		53,111		48,467
2) Of which in EU6)		36,072		38,525		45,585		37,895		57,759		53,759
3) Of which in the United States6)		52,322		56,748		64,299		7,092		11,053		12,325
4) Of which in China6)		14,937		19,156		18,977		1,123		530		1,547

5) Total non-current assets excluding financial instruments, deferred tax assets, and post-employment benefit assets.

6) Including IPR revenue reported under Other above.

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C4 Net sales (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Net Sales

Net sales

	2017		2016		2015
Sales of products and network rollout services		123,990		135,778		150,775
Professional Services sales		69,408		76,816		81,749
License revenues		7,905		10,014		14,396
Net sales		201,303		222,608		246,920
Export sales from Sweden		86,812		107,036		117,486

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C5 Expenses by nature (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Expenses by Nature

Expenses by nature

	2017		2016		2015
Goods and services		128,211		133,848		137,458
Employee remuneration		76,502		77,774		80,054
Amortization and depreciation		8,451		8,886		10,223
Impairments and obsolescence allowances, net of reversals		11,531		1,325		1,438
Financial expenses		843		2,158		2,458
Taxes		–4,267		2,131		6,199
Expenses incurred		221,271		226,122		237,830
Inventory increase/decrease (–/+)1)		4,070		–606		–394
Additions to capitalized development		–1,444		–4,483		–3,548
Expenses charged to the income statement		223,897		221,033		233,888

1) The inventory changes are based on changes of net inventory values.

Summary of Restructuring Charges by Function

Restructuring charges by function

	2017		2016		2015
Cost of sales		5,242		3,475		2,274
R&D expenses		2,307		2,739		2,021
Selling and administrative expenses		952		1,353		745
Total restructuring charges		8,501		7,567		5,040

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C6 Other operating income and expenses (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Schedule of Other Operating Income and Expenses

Other operating income and expenses

	2017		2016		2015
Other operating income
Gains on sales of intangible assets and PP&E		47		423		363
Gains on sales of investments and operations1)		324		219		1
Other operating revenues		783		1,345		1,204
Total other operating income		1,154		1,987		1,568
Other operating expenses
Losses on sales of intangible assets and PP&E		–74		–509		–158
Losses on sales of investments and operations1)		–130		–96		–50
Write-down of goodwill2)		–12,966		—		—
Other operating expenses3)		–116		–978		–1,207
Total other operating expenses		–13,286		–1,583		–1,415

1) Includes divestments presented in Note C26, “Business combinations.”

2) For more information about the write-down of goodwill, see Note C10, “Intangible assets.”

3) Includes revaluation of cash flow hedges of SEK 0 billion (SEK –0.9 billion in 2016 and SEK –1.1 billion in 2015) partly offset by result from trading activities.

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C7 Financial income and expenses (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Financial Income and Expenses

Financial income and expenses

	2017				2016				2015
	Financial income		Financial expenses		Financial income		Financial expenses		Financial income		Financial expenses
Contractual interest on financial assets		–75		—		32		—		385		—
Of which on financial assets at fair value through profit or loss		–92		—		–316		—		–110		—
Contractual interest on financial liabilities		—		–1,027		—		–1,355		—		–1,428
Net gains/losses on:
Instruments at fair value through profit or loss1)		–231		543		–68		–729		190		–760
Of which included in fair value hedge relationships		—		2		—		71		—		152
Available for sale		40		—		—		—		—		—
Loans and receivables		–102		—		–79		—		–53		—
Liabilities at amortized cost		—		72		—		218		—		213
Other financial income and expenses		7		–431		—		–292		3		–483
Total		–361		–843		–115		–2,158		525		–2,458

1) Excluding net loss from operating assets and liabilities, SEK 451 million (net loss of SEK 234 million in 2016 and net loss of SEK 165 million in 2015), reported as Cost of sales.

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C8 Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Components of Income Taxes Recognized in Income Statement

Income taxes recognized in the income statement

	2017		2016		2015
Current income taxes for the year		–4,168		–3,654		–6,641
Current income taxes related to prior years		83		–489		–104
Deferred tax income/expense (+/–)		8,355		2,017		546
Share of taxes in joint ventures and associated companies		–3		–5		—
Tax expense/benefit		4,267		–2,131		–6,199

Reconciliation of Swedish Income Tax Rate with Effective Tax Rate

Reconciliation of Swedish income tax rate with effective tax rate

	2017			2016			2015
Expected tax expense at Swedish tax rate 22.0%		8,652			–886			–4,372
Effect of foreign tax rates		205			–536			–1,101
Current income taxes related to prior years		83			–489			–104
Remeasurement of tax loss carry-forwards		–150			143			–250
Remeasurement of deductible temporary differences		127			119			185
Tax effect of non-deductible expenses		–4,144			–1,357			–1,559
Tax effect of non-taxable income		480			935			981
Tax effect of changes in tax rates		–986			–60			21
Tax expense/benefit		4,267			–2,131			–6,199
Effective tax rate		10.8	%		52.9	%		31.2	%

Tax Effects of Temporary Differences and Tax Loss Carry-forwards

Tax effects of temporary differences and tax loss carry-forwards

	Deferred tax assets		Deferred tax liabilities		Net balance
2017
Intangible assets and property, plant and equipment		894		2,374
Current assets		2,667		866
Post-employment benefits		4,886		704
Provisions		1,846		15
Other		3,556		275
Loss carry-forwards		10,712
Deferred tax assets/liabilities		24,561		4,234		20,327
Netting of assets/liabilities		–3,333		–3,333
Deferred tax balances, net		21,228		901		20,327
2016
Intangible assets and property, plant and equipment		1,223		4,173
Current assets		2,352		501
Post-employment benefits		4,382		692
Provisions		1,631		13
Other		4,557		274
Loss carry-forwards		4,883		—
Deferred tax assets/liabilities		19,028		5,653		13,375
Netting of assets/liabilities		–3,506		–3,506
Deferred tax balances, net		15,522		2,147		13,375

Changes in Deferred Taxes, Net

Changes in deferred taxes, net

	2017		2016
Opening balance, net		13,375		10,711
Recognized in net income (loss)		8,355		2,017
Recognized in other comprehensive income (loss)		–563		521
Acquisitions/disposals of subsidiaries		—		–57
Reclassification to current tax		–462		—
Currency translation differences		–378		183
Closing balance, net		20,327		13,375

Tax Loss Carry-forwards

Tax loss carry-forwards

Year of expiration	Tax loss carry-forwards		Tax value
2018		—		—
2019		37		9
2020		74		15
2021		197		32
2022		870		218
2023 or later		46,182		10,438
Total		47,360		10,712

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C9 Earnings per share (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Schedule of Earnings Per Share

Earnings per share

	2017		2016		2015
Basic
Net income (loss) attributable to stockholders of the Parent Company (SEK million)		–35,206		1,716		13,549
Average number of shares outstanding, basic (millions)		3,277		3,263		3,249
Earnings (loss) per share, basic (SEK)		–10.74		0.53		4.17
Diluted
Net income (loss) attributable to stockholders of the Parent Company (SEK million)		–35,206		1,716		13,549
Average number of shares outstanding, basic (millions)		3,277		3,263		3,249
Dilutive effect for stock purchase (millions)		—		40		33
Average number of shares outstanding, diluted (millions)		3,277		3,303		3,282
Earnings (loss) per share, diluted (SEK)		–10.74		0.52		4.13

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C10 Intangible assets (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Intangible Assets

Intangible assets 2017

	Capitalized development expenses								Goodwill		IPR1). brands and other intangible assets
			For internal use
	To be marketed		Acquired costs		Internal costs		Total		Total		Total
Cost
Opening balance		18,246		2,213		1,847		22,306		43,405		57,340
Acquisitions/capitalization		1,340		—		104		1,444		—		336
Balances regarding acquired/divested businesses2)		—		—		—		—		–122		101
Sales/disposals		—		—		–1,019		–1,019		—		–152
Translation difference		—		—		—		—		–2,484		–1,693
Closing balance		19,586		2,213		932		22,731		40,799		55,932
Accumulated amortization
Opening balance		–8,243		–2,158		–1,614		–12,015		—		–44,262
Amortization		–2,586		—		–95		–2,681		—		–1,667
Sales/disposals		—		—		1,019		1,019		—		152
Reclassification		–101		—		101		—		—		—
Translation difference		—		—		—		—		—		1,343
Closing balance		–10,930		–2,158		–589		–13,677		—		–44,434
Accumulated impairment losses
Opening balance		–2,123		–55		–37		–2,215		–18		–5,331
Impairment losses		–2,058		—		–187		–2,245		–12,966		–2,019
Closing balance		–4,181		–55		–224		–4,460		–12,984		–7,350
Net carrying value		4,475		—		119		4,593		27,815		4,148

1) Intellectual property rights.

2) For more information on acquired/divested businesses, see Note C26, “Business combinations.”

Intangible assets 2016

	Capitalized development expenses								Goodwill		IPR1), brands and other intangible assets
			For internal use
	To be marketed		Acquired costs		Internal costs		Total		Total		Total
Cost
Opening balance		15,307		2,213		1,697		19,217		41,105		55,895
Acquisitions/capitalization		4,333		—		150		4,483		—		15
Balances regarding acquired/divested businesses 2)		—		—		—		—		585		177
Sales/disposals		–1,394		—		—		–1,394		—		–870
Reclassifications		—		—		—		—		–640		640
Translation difference		—		—		—		—		2,355		1,483
Closing balance		18,246		2,213		1,847		22,306		43,405		57,340
Accumulated amortization
Opening balance		–7,995		–2,158		–1,441		–11,594		—		–41,248
Amortization		–1,642		—		–173		–1,815		—		–2,650
Sales/disposals		1,394		—		—		1,394		—		840
Translation difference		—		—		—		—		—		–1,204
Closing balance		–8,243		–2,158		–1,614		–12,015		—		–44,262
Accumulated impairment losses
Opening balance		–2,038		–55		–37		–2,130		–18		–5,331
Impairment losses		–85		—		—		–85		—		—
Closing balance		–2,123		–55		–37		–2,215		–18		–5,331
Net carrying value		7,880		—		196		8,076		43,387		7,747

1) Intellectual property rights.

2) For more information on acquired/divested businesses, see Note C26, “Business combinations.”

Summary of Impairment Write-down by Segment

Impairment write-down by Segment 2017

SEK billion	Networks		Digital Services		Other			Total
Goodwill		—		6.9		6.1	1)		13.0
Intangible assets		0.1		0.9		1.0			2.0
Capitalized development expenses		0.3		0.9		1.0			2.2
Total write-down		0.4		8.7		8.1			17.2

1) Of which Media Solutions SEK 6.0 billion and Red Bee Media SEK 0.1 billion.

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C11 Property, plant and equipment (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Property, Plant and Equipment

Property, plant and equipment 2017

	Real estate		Machinery and other technical assets		Other equipment, tools and installations		Construction in progress and advance payments		Total
Cost
Opening balance		7,132		4,286		33,134		2,648		47,200
Additions		150		183		1,317		2,227		3,877
Balances regarding acquired/divested businesses		–9		–134		–12		—		–155
Sales/disposals		–1,323		–457		–5,387		–185		–7,352
Reclassifications		757		56		2,226		–3,039		—
Translation difference		–197		–115		–664		–43		–1,019
Closing balance		6,510		3,819		30,614		1,608		42,551
Accumulated depreciation
Opening balance		–3,629		–3,651		–23,061		—		–30,341
Depreciations		–458		–279		–3,366		—		–4,103
Balances regarding divested businesses		9		85		11		—		105
Sales/disposals		349		442		4,263		—		5,054
Translation difference		99		93		491		—		683
Closing balance		–3,630		–3,310		–21,662		—		–28,602
Accumulated impairment losses
Opening balance		–43		–3		–79		—		–125
Impairment losses		–297		–42		–1,872		—		–2,211
Sales/disposals		200		4		1,050		—		1,254
Translation difference		—		–1		–9		—		–10
Closing balance		–140		–42		–910		—		–1,092
Net carrying value		2,740		467		8,042		1,608		12,857

Property, plant and equipment 2016

	Real estate		Machinery and other technical assets		Other equipment, tools and installations		Construction in progress and advance payments		Total
Cost
Opening balance		6,475		4,560		28,753		4,750		44,538
Additions		177		148		1,519		4,285		6,129
Balances regarding acquired/divested businesses		–1		–53		2		—		–52
Sales/disposals		–1,410		–596		–2,610		–269		–4,885
Reclassifications		1,633		110		4,570		–6,315		–2
Translation difference		258		117		900		197		1,472
Closing balance		7,132		4,286		33,134		2,648		47,200
Accumulated depreciation
Opening balance		–3,634		–3,779		–21,208		—		–28,621
Depreciations		–506		–330		–3,585		—		–4,421
Balances regarding divested businesses		2		26		7		—		35
Sales/disposals		643		534		2,434		—		3,611
Reclassifications		4		1		–4		—		1
Translation difference		–138		–103		–705		—		–946
Closing balance		–3,629		–3,651		–23,061		—		–30,341
Accumulated impairment losses
Opening balance		—		–10		–6		—		–16
Impairment losses		–43		–1		–112		—		–156
Reversals of impairment losses		—		8		—		—		8
Sales/disposals		—		—		39		—		39
Translation difference		—		—		—		—		—
Closing balance		–43		–3		–79		—		–125
Net carrying value		3,460		632		9,994		2,648		16,734

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C12 Financial assets, non-current (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Equity in Joint Ventures and Associated Companies

Equity in joint ventures and associated companies

	2017		2016
Opening balance		775		1,210
Share in earnings		24		31
Distribution of capital stock		–95		—
Taxes		–3		–5
Dividends		–77		–84
Divested business		—		–15
Translation difference		—		–362
Closing balance1)		624		775

1) Goodwill, net, amounts to SEK 1 (1) million.

Ericsson's Share of Assets, Liabilities and Income in Associated Company Rockstar Consortium

Ericsson’s share of assets, liabilities and income in associated company Rockstar Consortium

	2017			2016			2015
Percentage in ownership interest		21.26	%		21.26	%		21.26	%
Total assets		20			22			21
Total liabilities		—			—			5
Net assets (100%)		20			22			16
Company’s share of net assets (21.26%)		3			3			3
Net sales		—			—			—
Income after financial items		—			—			–642
Net income and total comprehensive income (100%)		—			—			–642
Company’s share of net income and other comprehensive income (21.26%)		—			—			–137

Summary of Financial Assets, Non-current

Financial assets, non-current

	Other investments in shares and participations				Customer finance, non-current				Interest-bearing securities, non-current				Derivatives, non-current				Other financial assets, non-current
	2017		2016		2017		2016		2017		2016		2017		2016		2017		2016
Cost
Opening balance		2,516		2,567		2,137		1,755		7,586		—		—		452		4,648		5,365
Additions		146		133		1,788		2,704		54,687		7,593		86		—		503		785
Disposals/repayments/deductions		–43		–267		–1,100		–2,333		–37,241		—		—		—		–375		–187
Change in value in funded pension plans1)		—		—		—		—		—		—		—		—		1,300		–1,622
Revaluation		99		2		—		—		73		–7		—		—		27		62
Reclassification		—		—		–570		–12		—		—		—		–452		—		—
Translation difference		–50		81		–18		23		—		—		—		—		–169		245
Closing balance		2,668		2,516		2,237		2,137		25,105		7,586		86		—		5,934		4,648
Accumulated impairment losses/ allowances
Opening balance		–1,337		–1,292		–9		–16		—		—		—		—		–206		–183
Impairment losses/allowances		–126		37		–56		–5		—		—		—		—		–1		–1
Disposals/repayments/deductions		25		–1		6		12		—		—		—		—		77		–1
Translation difference		49		–81		—		—		—		—		—		—		7		–21
Closing balance		–1,389		–1,337		–59		–9		—		—		—		—		–123		–206
Net carrying value		1,279		1,179		2,178		2,128		25,105		7,586		86		—		5,811		4,442

1) This amount includes asset ceiling. For further information, see Note C17, “Post-employment benefits.”

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C13 Inventories (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Inventories

Inventories

	2017		2016
Raw materials, components, consumables and manufacturing work in progress		4,015		5,043
Finished products and goods for resale		8,864		12,183
Contract work in progress		12,081		13,081
Inventories, net		24,960		30,307

Movements in Obsolescence Allowances

Movements in obsolescence allowances

	2017		2016		2015
Opening balance		2,412		2,555		2,326
Additions, net		1,319		725		1,480
Utilization		–1,210		–981		–1,295
Translation difference		–91		113		44
Balances regarding acquired/divested businesses		–5		—		—
Closing balance		2,425		2,412		2,555

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C14 Trade receivables and customer finance (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Trade Receivables and Customer Finance

Trade receivables and customer finance

	2017		2016
Trade receivables excluding associated companies and joint ventures		66,487		69,430
Allowances for impairment		–3,335		–1,403
Trade receivables, net		63,152		68,027
Trade receivables related to associated companies and joint ventures		58		90
Trade receivables, total		63,210		68,117
Customer finance credits		4,223		5,003
Allowances for impairment		–292		–250
Customer finance credits, net		3,931		4,753
Of which current		1,753		2,625
Credit commitments for customer finance		9,706		13,082

Summary of Movements in Allowances for Impairment

Movements in allowances for impairment

	Trade receivables				Customer finance
	2017		2016		2017		2016
Opening balance		1,403		1,202		250		286
Additions		3,544		356		85		78
Utilized		–1,485		–156		–3		–108
Reversal of excess amounts		–48		–28		–27		–8
Reclassification		–66		—		—		—
Translation difference		–13		29		–13		2
Closing balance		3,335		1,403		292		250

Summary of Aging Analysis

Aging analysis as per December 31

							Of which past due in				Of which past due and
			Of which		Of which		the following time intervals				impaired in the following time intervals
	Total		neither impaired nor past due		impaired, not past due		less than 90 days		90 days or more		less than 90 days		90 days or more
2017
Trade receivables, excluding associated companies and joint ventures		66,487		56,059		15		2,924		4,169		220		3,100
Allowances for impairment		–3,335		—		–15		—		—		–220		–3,100
Customer finance credits		4,223		1,841		2,029		4		99		29		221
Allowances for impairment		–292		—		–104		—		—		–20		–168
2016
Trade receivables, excluding associated companies and joint ventures		69,430		58,198		62		4,406		5,423		10		1,331
Allowances for impairment		–1,403		—		–62		—		—		–10		–1,331
Customer finance credits		5,003		3,250		1,480		10		3		24		236
Allowances for impairment		–250		—		–64		—		—		–6		–180

Summary of Total Outstanding Customer Finance Exposure Per Market Area

Total outstanding customer finance exposure per market area as of December 31

Percent	2017		2016
South East Asia, Oceania and India		24		17
North East Asia		—		—
North America		7		7
Europe and Latin America		12		19
Middle East and Africa		56		56
Other		1		1
Total		100		100

Summary of Outstanding Customer Finance

Outstanding customer finance

	2017		2016
Customer finance credits		4,223		5,003
Financial guarantees for third-parties		77		124
Accrued interest		14		16
Less third-party risk coverage		–505		–805
Ericsson’s risk exposure, including financial guarantees		3,809		4,338

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C15 Other current receivables (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Other Current Receivables

Other current receivables

	2017		2016
Prepaid expenses		2,546		4,501
Accrued revenues		1,342		1,584
Advance payments to suppliers		338		1,384
Derivatives with a positive value1)		1,207		1,108
Taxes		15,291		13,974
Other		1,576		1,880
Total		22,300		24,431

1) See also Note C20, “Financial risk management and financial instruments.”

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C16 Equity and other comprehensive income (loss) (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Capital Stock

Capital stock at December 31, 2017, consisted of the following:

Capital stock

Parent Company	Number of shares		Capital stock (SEK million)
Class A shares		261,755,983		1,309
Class B shares		3,072,395,752		15,363
Total		3,334,151,735		16,672

Summary of Reconciliation of Number of Shares

Reconciliation of number of shares

	Number of shares		Capital stock (SEK million)
Number of shares Jan 1, 2017		3,331,151,735		16,657
Number of shares Dec 31, 2017		3,334,151,735		16,672

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C17 Post-employment benefits (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Amount Recognized in the Consolidated Balance Sheet

Amount recognized in the Consolidated balance sheet

	Sweden		US		UK		Other		Total
2017
Defined benefit obligation (DBO)		41,166		21,005		13,246		12,228		87,645
Fair value of plan assets		21,938		20,402		14,599		8,000		64,939
Deficit/surplus (+/–)		19,228		603		–1,353		4,228		22,706
Plans with net surplus, excluding asset ceiling 1)		—		83		1,685		535		2,303
Provision for post-employment benefits 2)		19,228		686		332		4,763		25,009
2016
Defined benefit obligation (DBO)		38,202		22,710		14,088		12,175		87,175
Fair value of plan assets		20,956		21,545		14,061		7,923		64,485
Deficit/surplus (+/–)		17,246		1,165		27		4,252		22,690
Plans with net surplus, excluding asset ceiling 1)		—		—		481		552		1,033
Provision for post-employment benefits 2)		17,246		1,165		508		4,804		23,723

1) Plans with a net surplus, i.e., where plan assets exceed DBO, are reported as Other financial assets, non-current: see Note C12, “Financial assets.” The asset ceiling decreased during the year by SEK 30 million from SEK 484 million in 2016 to SEK 454 million in 2017.

2) Plans with net liabilities are reported in the balance sheet as Post-employment benefits, non-current.

Summary of Pension Costs for Defined Contribution Plans and Defined Benefit Plans

Pension costs for defined contribution plans and defined benefit plans

	Sweden		US		UK		Other		Total
2017
Pension cost for defined contribution plans		1,096		473		173		1,228		2,970
Pension cost for defined benefit plans		1,824		168		38		592		2,622
Total		2,920		641		211		1,820		5,592
Total pension cost expressed as a percentage of wages and salaries										9.5	%
2016
Pension cost for defined contribution plans		1,061		687		185		1,287		3,220
Pension cost for defined benefit plans		1,314		167		38		595		2,114
Total		2,375		854		223		1,882		5,334
Total pension cost expressed as a percentage of wages and salaries										8.9	%
2015
Pension cost for defined contribution plans		1,136		729		136		1,239		3,240
Pension cost for defined benefit plans		1,806		81		57		609		2,553
Total		2,942		810		193		1,848		5,793
Total pension cost expressed as a percentage of wages and salaries										9.5	%

Summary of Change in the Net Defined Benefit Obligation

Change in the net defined benefit obligation

	Present value of obligation 20172)		Fair value of plan assets 2017		Total 2017			Present value of obligation 20162)		Fair value of plan assets 2016		Total 2016
Opening balance		87,175		–64,485		22,690			78,141		–58,178		19,963
Reclassification		—		—		—			104		–104		—
Included in the income statement
Current service cost		1,793		—		1,793			1,853		—		1,853
Past service cost and gains and losses on settlements		296		—		296			–182		—		–182
Interest cost/income (+/–)		2,198		–1,892		306			2,451		–2,176		275
Taxes and administrative expenses		143		45		188			53		49		102
Other		–13		2		–11			–16		2		–14
		4,417		–1,845		2,572	3)		4,159		–2,125		2,034	3)
Remeasurements
Return on plan assets excluding amounts in interest expense/income		—		–2,438		–2,438			—		–4,280		–4,280
Actuarial gains/losses (–/+) arising from changes in demographic assumptions		–396		—		–396			–405		—		–405
Actuarial gains/losses (–/+) arising from changes in financial assumptions		2,110		—		2,110			8,255		—		8,255
Experience-based gains/losses (–/+)		–219		—		–219			–1,550		—		–1,550
		1,495		–2,438		–943			6,300		–4,280		2,020
Other changes
Translation difference		–2,275		2,262		–12			1,002		–834		168
Contributions and payments from:
Employers 1)		–880		–583		–1,463			–902		–562		–1,464
Plan participants		27		–23		4			28		–22		6
Payments from plans:
Benefit payments		–2,173		2,173		—			–1,568		1,568		—
Settlements		–141		—		–141			—		—		—
Business combinations and divestments		—		—		—			–89		52		–37
Closing balance		87,645		–64,939		22,706			87,175		–64,485		22,690

1) The expected contribution to the plans is SEK 1,364 million during 2018.

2) The weighted average duration of DBO is 20.1 years.

3) Excluding the impact of the asset ceiling of SEK 50 million in 2017 and SEK 80 million in 2016.

Summary of Present Value of the Defined Benefit Obligation

Present value of the defined benefit obligation

	Sweden		US		UK		Other		Total
2017
DBO, closing balance		41,166		21,005		13,246		12,228		87,645
Of which partially or fully funded		40,665		20,319		13,246		9,465		83,695
Of which unfunded		501		686		—		2,763		3,950
2016
DBO, closing balance		38,202		22,710		14,088		12,175		87,175
Of which partially or fully funded		37,679		21,956		14,088		9,361		83,084
Of which unfunded		523		754		—		2,814		4,091

Summary of Asset Allocation by Asset Type and Geography

Asset allocation by asset type and geography

	Sweden		US		UK		Other		Total		Of which unquoted
2017
Cash and cash equivalents		3,124		382		834		88		4,428		0	%
Equity securities		4,079		795		3,116		2,432		10,422		16	%
Debt securities		8,663		17,650		9,331		3,494		39,138		68	%
Real estate		4,269		—		244		212		4,725		100	%
Investment funds		1,803		1,478		160		208		3,649		66	%
Assets held by insurance company		—		—		—		1,200		1,200		100	%
Other		—		97		914		366		1,377		41	%
Total		21,938		20,402		14,599		8,000		64,939
Of which real estate occupied by the Company		—		—		—		—		—
Of which securities issued by the Company		—		—		—		—		—
2016
Cash and cash equivalents		1,819		414		420		373		3,026		14	%
Equity securities		3,983		692		2,526		1,669		8,870		19	%
Debt securities		8,791		18,286		10,010		3,888		40,975		70	%
Real estate		4,093		—		132		198		4,423		100	%
Investment funds		2,270		1,505		270		206		4,251		65	%
Assets held by insurance company		—		—		—		1,125		1,125		100	%
Other		—		648		703		464		1,815		69	%
Total		20,956		21,545		14,061		7,923		64,485
Of which real estate occupied by the Company		—		—		—		—		—
Of which securities issued by the Company		—		—		—		—		—

Summary of Financial and Demographic Actuarial Assumptions

Financial and demographic actuarial assumptions ¹⁾

	2017			2016
Financial assumptions
Discount rate, Sweden		1.6	%		1.8	%
Discount rate, US		3.7	%		4.1	%
Discount rate, UK		2.6	%		2.7	%
Discount rate, weighted average of Total		2.5	%		2.8	%
Demographic assumptions
Life expectancy after age 65 in years, weighted average		23			23

1) Weighted average for the Group for disclosure purposes only. Country-specific assumptions were used for each actuarial calculation.

Summary of Total Remeasurements in Other Comprehensive Income (Loss) Related to Post-Employment Benefits

Total remeasurements in Other comprehensive income (loss) related to post-employment benefits

	2017		2016
Actuarial gains and losses (+/–)		1,210		–1,955
The effect of asset ceiling		27		254
Swedish special payroll taxes1)		–267		–65
Total		970		–1,766

1) Swedish payroll taxes are included in recognized gain/loss during the year in OCI.

Summary of Sensitivity Analysis of Significant Actuarial Assumptions

Sensitivity analysis of significant actuarial assumptions

SEK billion	2017		2016
Impact on the DBO of an increase in the discount rate
Discount rate, Sweden +0.5%		–4.5		–4.3
Discount rate, US +0.5%		–1.1		–1.3
Discount rate, UK +0.5%		–1.5		–1.7
Discount rate, weighted average of Total +0.5%		–8.1		–8.3
Impact on the DBO of an decrease in the discount rate
Discount rate, Sweden –0.5%		+5.2		+5.0
Discount rate, US –0.5%		+1.2		+1.3
Discount rate, UK –0.5%		+1.8		+1.9
Discount rate, weighted average of Total –0.5%		+9.3		+9.4

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C18 Provisions (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Provisions

Provisions

	Restructuring		Customer related		Suppliers related		Warranty		Other		Total
2017
Opening balance		4,163		74		134		248		1,738		6,357
Additions		5,448		4,105		1,885		242		799		12,479
Reversal of excess amounts		–207		—		–90		–2		–63		–362
Negative effect on Income statement												12,117
Utilization/Cash out		–5,327		–1,532		–262		–267		–833		–8,221
Reclassifications		1		–10		–50		5		–59		–113
Translation difference		–35		5		–4		–1		–159		–194
Closing balance		4,043		2,642		1,613		225		1,423		9,946
2016
Opening balance		1,466		92		182		528		1,570		3,838
Additions		5,271		51		82		267		675		6,346
Reversal of excess amounts		–130		–6		–69		–207		–277		–689
Negative effect on Income statement												5,657
Utilization/Cash out		–2,440		–64		–64		–365		–220		–3,153
Reclassifications		1		–3		—		9		–15		–8
Translation difference		–5		4		3		16		5		23
Closing balance		4,163		74		134		248		1,738		6,357

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C19 Interest-bearing liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Interest-Bearing Liabilities

Interest-bearing liabilities

	2017		2016
Borrowings, current
Current part of non-current borrowings1)		89		4,954
Other borrowings, current		2,456		3,079
Total borrowings, current		2,545		8,033
Borrowings, non-current
Notes and bond loans		20,560		10,556
Other borrowings, non-current		9,940		8,097
Total borrowings, non-current		30,500		18,653
Total interest-bearing liabilities		33,045		26,686

1) Including notes and bond loans of SEK 0 (4,900) million.

Summary of Notes, Bonds, Bilateral Loans and Committed Credit

Notes, bonds, bilateral loans and committed credit

															Unrealized hedge
	Nominal							Book value			Market value				gain/loss (included
Issued-maturing	amount		Coupon			Currency		(SEK million)			(SEK million)		Maturity date		in book value)
Notes and bond loans
2010–20201)		170					USD		1,394			1,488		December 23, 2020
2012–2022		1,000		4.125	%		USD		8,180	2)		8,223		May 15, 2022		9
2017–2021		500		0.875	%		EUR		4,897	2)		4,846		March 1, 2021		7
2017–2024		500		1.875	%		EUR		4,862	2)		4,824		March 1, 2024		–7
2017–20251)		150					USD		1,227			1,432		December 22, 2025
Total notes and bond loans									20,560			20,813				9
Bilateral loans
2012–20213)		98					USD		805			830		September 30, 2021
2013–20204)		684					USD		5,609			5,724		November 6, 2020
2013–20233)		220					USD		1,797			1,972		June 15, 2023
Total bilateral loans									8,211			8,526
Committed credit
Long-term committed credit facility5)		2,000					USD		—			—		June 5, 2022
Total committed credit									—			—

1) Private Placement, Swedish Export Credit Corporation (SEK).

2) Interest rate swaps are designated as fair value hedges.

3) Nordic Investment Bank (NIB), R&D project financing.

4) European Investment Bank (EIB), R&D project financing.

5) Multi-currency revolving credit facility. Unutilized.

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C20 Financial risk management and financial instruments (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Capital Objectives-related Information

Capital objectives-related information, SEK billion

	2017			2016
Capital		100			140
Equity ratio		38	%		50	%
Cash conversion		–58	%1)		175	%
Positive net cash		34.7			31.2
Post-employment benefits		25.0			23.7
Credit rating
Moody’s		Ba2, negative			Baa3, negative
Standard & Poor’s		BB+, stable			BBB, negative

1) Impacted by a negative result.

Summary of Net Exposure for Largest Currencies Impact on Sales

The table below presents the net exposure for the largest currencies impact on sales and also net transaction exposure of these currencies on profitability.

Currency exposure, SEK billion

Exposure currency	Sales translation exposure		Sales transaction exposure		Sales net exposure		Incurred cost transaction exposure 1)		Net transaction exposure
USD		52.4		37.2		89.6		–15.3		21.9
EUR		24.6		13.2		37.8		–8.4		4.8
CNY		13.1		–0.2		12.9		–6.2		–6.4
INR		9.4		0.0		9.4		–1.6		–1.6
JPY		7.1		0.0		7.1		4.6		4.6
AUD		7.1		–0.3		6.8		3.3		3.0
BRL		5.7		0.0		5.7		0.7		0.7
SAR		5.1		0.1		5.2		2.3		2.4
GBP		5.6		–0.9		4.7		0.8		–0.1

1) Transactions in foreign currency – internal sales, internal purchases, external purchases.

Summary of Sensitivity to Interest Rate Increase of One Basis Point

Sensitivity to interest rate increase of 1 basis point, SEK million

	<3M		3–12M		1–3Y		3–5Y		>5Y		Total
Interest-bearing assets		0		0		–3		–4		–1		–8
Interest-bearing liabilities		0		0		0		6		3		9
Derivatives		0		1		0		–4		–1		–4
Total		0		1		–3		–2		1		–3

Disclosure of Detailed Information about Currency Derivatives

Outstanding derivatives

Outstanding derivatives ¹⁾

	2017				2016
Fair value	Asset		Liability		Asset			Liability
Currency derivatives
Maturity within 3 months		130		542		351			193
Maturity between 3 and 12 months		215		147		262			137
Maturity between 1 and 3 years		25		—		—			—
Maturity between 3 and 5 years		754		—		—			—
Total		1,125		689		613			330
Interest rate derivatives
Maturity within 3 months		10		35		—			—
Maturity between 3 and 12 months		1		—		239			82
Maturity between 1 and 3 years		34		105		191			205
Maturity between 3 and 5 years		83		54		—			6
Maturity of more than 5 years		39		43		65			116
Total		168		237		495	2)		409
Of which designated in fair value hedge relations		44		—		120			—

1) Some of the derivatives hedging non-current liabilities are recognized in the balance sheet as non-current derivatives due to hedge accounting.

2) Of which SEK 86 (0) million is reported as non-current assets.

Summary of Cash, Cash Equivalents and Interest-bearing Securities

Cash, cash equivalents and interest-bearing securities

	Remaining time to maturity
SEK billion	< 3 months		3–12 months		1–5 years		>5 years		Total
Banks		26.4		0.2		0.2		0.1		26.9
Type of issuer/counterpart
Governments		9.5		1.0		11.5		0.8		22.8
Corporates		0.3		0.0		0.0		0.0		0.3
Mortgage institutes		0.2		0.0		16.7		0.8		17.7
2017		36.4		1.2		28.4		1.7		67.7
2016		37.0		1.3		19.3		0.3		57.9

Summary of Funding Programs

Funding programs¹⁾

	Amount			Utilized		Unutilized
Euro Medium-Term Note program (USD million)		5,000			1,519		3,481
SEC Registered program (USD million)		2	)		1,000		—

1) There are no financial covenants related to these programs.

2) Program amount indeterminate.

Summary of Financial Instruments, Book Value

Financial instruments, book value

SEK billion	Customer finance		Trade receivables		Interest- bearing securities		Cash equiva- lents		Borrowings		Trade payables		Other financial assets		Other current receivables		Other current liabilities		2017		2016
Note		C14		C14		C12		C25		C19		C22		C12		C15		C21
Assets at fair value through profit or loss						6.1		14.3						0.9		1.2		–0.9		21.6		23.5
Loans and receivables		3.9		63.2		0.3		3.2						5.0						75.6		78.9
Available-for-sale						25.4								1.3						26.7		8.8
Financial liabilities at amortized cost										–33.0		–26.3								–59.3		–52.0
Total		3.9		63.2		31.8		17.5		–33.0		–26.3		7.2		1.2		–0.9		64.6		59.2

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C21 Other current liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Other Current Liabilities

Other current liabilities

	2017		2016
Advances from customers		6,955		5,391
Accrued interest		383		367
Accrued expenses		29,196		30,716
Of which employee-related		8,935		9,414
Of which supplier-related		10,491		13,003
Of which other1)		9,770		8,299
Deferred revenues		20,110		13,990
Derivatives with a negative value2)		926		739
Other3)		4,800		4,800
Total		62,370		56,003

1) Major balance relates to accrued expenses for customer projects.

2) See Note C20, “Financial risk management and financial instruments.”

3) Includes items such as VAT and withholding tax payables and other payroll deductions, and liabilities for goods received where the related invoice has not yet been received.

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C22 Trade payables (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Trade Payables

Trade payables

	2017		2016
Trade payables to associated companies and joint ventures		286		296
Trade payables, excluding associated companies and joint ventures		26,035		25,022
Total		26,321		25,318

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C23 Assets pledged as collateral (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Schedule of Detailed Information of Assets Pledged as Collateral

Assets pledged as collateral

	2017		2016
Chattel mortgages1)		4,740		2,240
Bank deposits		475		344
Total		5,215		2,584

1) See also Note C17, “Post-Employment benefits.”

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C24 Contingent liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Contingent Liabilities

Contingent liabilities

	2017		2016
Contingent liabilities		1,561		1,186
Total		1,561		1,186

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C25 Statement of cash flows (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Adjustments to Reconcile Net Income to Cash

Adjustments to reconcile net income to cash

	2017		2016		2015
Property, plant and equipment
Depreciation		4,103		4,421		4,705
Impairment losses/reversals of impairments		2,211		148		–16
Total		6,314		4,569		4,689
Intangible assets
Amortizations
Capitalized development expenses		2,681		1,815		1,379
Intellectual Property Rights, brands and other intangible assets		1,667		2,650		4,139
Total amortizations		4,348		4,465		5,518
Impairments
Capitalized development expenses		2,245		85		20
Intellectual Property Rights, brands and other intangible assets		2,019		—		—
Goodwill		12,966		—		—
Total impairments		17,230		85		20
Total		21,578		4,550		5,538
Total depreciation, amortization and impairment losses on property, plant and equipment and intangible assets		27,892		9,119		10,227
Taxes		–9,805		–6,200		–2,835
Dividends from joint ventures/associated companies1)		77		84		92
Undistributed earnings in joint ventures/ associated companies1)		–21		–26		38
Gains/losses on sales of investments and operations, intangible assets and PP&E, net2)		–167		–37		–156
Other non-cash items3)		607		3,172		3,245
Total adjustments to reconcile net income to cash		18,583		6,112		10,611

1) See Note C12, “Financial assets, non-current.”

2) See Note C6, “Other operating income and expense.”

3) Refers mainly to unrealized foreign exchange, gains/losses on financial instruments.

Summary of Acquisitions/Divestments of Subsidiaries and Other Operations

Acquisitions/divestments of subsidiaries and other operations

	Acquisitions		Divestments
2017
Cash flow from business combinations1)		–62		459
Acquisitions/divestments of other investments		–227		106
Total		–289		565
2016
Cash flow from business combinations1)		–781		25
Acquisitions/divestments of other investments		–203		337
Total		–984		362
2015
Cash flow from business combinations1)		–1,867		–
Acquisitions/divestments of other investments		–334		1
Total		–2,201		1

1) See also Note C26, “Business combinations.”

Reconciliation of Liabilities Arising from Financing Activities

Reconciliation of liabilities arising from financing activities

	2017
Opening balance		26,686
Cash flows
Proceeds from issuance of borrowings		13,416
Repayment of borrowings		–4,830
Non-cash changes
Effect of foreign exchange movement		–2,155
Changes in fair value		–72
Closing balance1)		33,045

1) Of which Borrowing, current SEK 2,545 million and Borrowings, non-current SEK 30,500 million. For more information, see Note C19, ”Interest-bearing liabilities”.

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C26 Business combinations (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Net Assets Acquired and Total Consideration Transferred Business Combinations

Acquisitions 2015–2017

	2017		2016		2015
Total consideration, including cash		62		920		2,119
Acquisition-related costs1)		49		4		19
Net assets acquired
Cash and cash equivalents		—		139		271
Property, plant and equipment		12		19		45
Intangible assets		101		817		445
Other assets		1		290		572
Other liabilities		25		–290		–379
Total identifiable net assets		139		975		954
Goodwill2)		–77		–55		1,165
Total		62		920		2,119

1) Acquisition-related costs are included in Selling and administrative expenses in the consolidated income statement.

2) Of which SEK 0 (585) million was acquired goodwill and SEK –77 (–640) million refers to a reclassi-fication when the preliminary purchase price allocations were finalized between the years.

Summary of Divestments transactions

Divestments 2015–2017

	2017		2016		2015
Proceeds		459		25		—
Net assets disposed of
Property, plant and equipment		62		36		—
Investments in joint ventures and associated companies		—		15		—
Goodwill		45
Other assets		219		5		52
Other liabilities		–180		–114		–3
		146		–58		49
Net gains/losses from divestments		313		83		–49
Less Cash and cash equivalents		—		—		—
Cash flow effect		459		25		—

Summary of Business Combinations Transactions

Acquisitions 2015–2017

Company	Description	Transaction date
Nodeprime	A US based software development company with an infrastructure management platform.	Apr 2016
Ericpol	A software development company in Poland within telecommunications.	Apr 2016
FYI Television	A US based premier entertainment metadata and rich media content supplier.	Jan 2016
Envivio	A US-based company with competence in software-defined and cloud-enabled architectures for video processing.	Oct 2015
ICON	A consulting and systems integration business with approximately 250 employees and consultants.	Aug 2015
Sunrise technology	A business delivering complex IT solutions.	Jul 2015
Timelessmind	A Canada-based consulting and systems integration business specializing in operations and business support (OSS/BSS).	Apr 2015

Summary of Business Divestments Transactions

Divestments 2015–2017

Company	Description	Transaction date
Power Modules	A divestment of the power modules business.	Sep 2017
Birla Ericsson Optical Ltd	A divestment of the shares in the associated company.	Jul 2016

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C27 Leasing (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Future Minimum Lease Payment Obligations

Future minimum lease payment obligations

	Operating leases
2018		3,491
2019		2,927
2020		2,506
2021		1,966
2022		1,442
2023 and later		4,787
Total		17,119

Summary of Future Minimum Payment Receivables

Future minimum payment receivables

	Operating leases
2018		83
2019		87
2020		85
2021		87
2022		87
2023 and later		184
Total		613

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C28 Information regarding members of the Board of Directors, the Group management and employees (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Remuneration to Members of the Board of Directors

Remuneration to members of the Board of Directors

SEK	Board fees		Number of synthetic shares/ portion of Board fee			Value at grant date of synthetic shares allocated in 2017 A		Number of previously allocated synthetic shares outstanding		Net change in value of synthetic shares1)  B			Committee fees		Total fees paid in cash2) C			Total remuneration 2017 (A+B+C)
Board member
Leif Johansson		4,075,000		0/0	%		—		—		—			400,000		4,475,000			4,475,000
Helena Stjernholm		990,000		8,661/50	%		494,976		11,093		–13,606	1)		175,000		670,000			1,151,370
Jacob Wallenberg		990,000		12,992/75	%		742,493		18,202		128,459	1)		175,000		422,500	5)		1,293,452
Jon Fredrik Baksaas		990,000		12,992/75	%		742,493		—		–42,874			175,000		422,500			1,122,119
Jan Carlson		990,000		12,992/75	%		742,493		—		–42,874			175,000		422,500			1,122,119
Nora Denzel		990,000		4,330/25	%		247,460		5,489		23,549	1)		425,000		1,167,500			1,438,509
Börje Ekholm		—		—			—		33,203		339,168	1)		—		—			339,168
Eric A. Elzvik		990,000		4,330/25	%		247,460		—		–14,289			350,000		1,092,500			1,325,671
Kristin Skogen Lund		990,000		4,330/25	%		247,460		11,990		60,646	1)		250,000		992,500			1,300,606
Kristin S. Rinne		990,000		8,661/50	%		494,976		7,395		–18,598	1)		200,000		695,000			1,171,378
Sukhinder Singh Cassidy		990,000		4,330/25	%		247,460		6,210		3,393	1)		175,000		917,500			1,168,353
Employee Representatives
Pehr Claesson3)		15,000		—			—		—		—			—		15,000			15,000
Mikael Lännqvist3)		9,000		—			—		—		—			—		9,000			9,000
Kjell-Åke Soting		27,000		—			—		—		—			—		27,000			27,000
Roger Svensson		37,500		—			—		—		—			—		37,500			37,500
Karin Åberg		33,000		—			—		—		—			—		33,000			33,000
Zlatko Hadzic (deputy)3)		6,000		—			—		—		—			—		6,000			6,000
Torbjörn Nyman (deputy) 4)		13,500		—			—		—		—			—		13,500			13,500
Anders Ripa (deputy) 4)		13,500		—			—		—		—			—		13,500			13,500
Loredana Roslund (deputy) 4)		13,500		—			—		—		—			—		13,500			13,500
Total		13,153,000		73,618			4,207,271		93,582		422,974			2,500,000		11,445,500			16,075,745	6)
Total		13,153,000		73,618			4,207,271		93,582		632,329	7)		2,500,000		11,445,500			16,285,100	6)

1) The difference in value as of the time for payment, compared to December 31, 2016, for synthetic shares allocated in 2012 (for which payment was made in 2017).

The difference in value as of December 31, 2017, compared to December 31, 2016, for synthetic shares allocated in 2013, 2014, 2015 and 2016. Calculated on a share price of SEK 53.85.

The difference in value as of December 31, 2017, compared to grant date for synthetic shares allocated in 2017.

The value of synthetic shares allocated in 2013, 2014, 2015 and 2016 includes respectively SEK 3.00, SEK 3.40, SEK 3.70 and SEK 1.00 per share in compensation for dividends resolved by the Annual General Meetings 2014, 2015, 2016 and 2017 and the value of the synthetic shares allocated in 2012 includes dividend compensation for dividends resolved in 2013, 2014, 2015 and 2016.

2) Committee fee and cash portion of the Board fee.

3) Left the Board in connection with the Annual General Meeting of shareholders 2017.

4) Joined the Board in connection with the Annual General Meeting of shareholders 2017.

5) In addition, an amount corresponding to statutory social charges in respect of the part of the fee that has been invoiced from a business was paid, amounting to SEK 174,460.

6) Excluding social security charges and amounts invoiced through a business corresponding to such social security charges in to the amount of SEK 2,964,677.

7) Including synthetic shares previously allocated to the former Directors Roxanne S. Austin and Alexander Izosimov. For these synthetic shares, the net change in value corresponds to the difference in value as of the time for payment compared to December 31, 2016.

Summary of Remuneration Costs for the President and CEO and Other Members of Executive Leadership Team (ELT)

Remuneration costs for the President and CEO and other members of Executive Team (ET)

SEK	President and CEO1) 2017			President and CEO2) 2017		Total: President and CEO 2017		President and CEO 2016		Other members of ET 2017		Other members of ELT 2016		Total 2017		Total 2016
Salary 3)		13,980,639			398,531		14,379,170		45,882,357		162,159,462		119,501,092		176,538,632		165,383,449
Annual variable remuneration provision earned for the year		—			—		—		—		7,331,278		6,230,285		7,331,278		6,230,285
Long-term variable compensation provision		6,119,323			—		6,119,323		8,727,083		9,840,643		9,278,252		15,959,966		18,005,336
Pension costs		7,365,132	4)		162,941		7,528,073		11,954,758		31,592,635		29,387,498		39,120,708		41,342,256
Other benefits		315,263			2,923		318,187		69,992		17,311,905		12,604,635		16,630,091		12,674,627
Social charges and taxes		8,728,588			165,666		8,894,255		20,241,066		52,086,808		29,147,247		60,981,063		49,388,312
Total		36,508,946			730,061		37,239,007		86,875,256		280,322,732		206,149,008		317,561,739		293,024,265

1) Börje Ekholm served as President and CEO from January 16, 2017. Remuneration costs shown for Börje Ekholm includes the period from January 16, 2017, to December 31, 2017.

2) Jan Frykhammar served as President and CEO from January 1, 2017, to January 15, 2017. Remuneration costs shown for Jan Frykhammar includes the period from January 1, 2017, to January 15, 2017 (costs for the rest of the year is included in “Other members of ET 2017”).

3) Includes severance pay and compensation for unused vacations.

4) Cash payment in lieu of defined contribution payment, made in a cost neutral way for Ericsson.

Summary of Maximum Outstanding Matching Rights

Maximum outstanding matching rights

As of December 31, 2017 Number of Class B shares	The President and CEO		Other members of the ET
Stock Purchase Plans 2014–2016
Executive Performance Stock Plans 2014–2016		—		183,054

Summary of Performance Targets

The details on how the TSR development will be calculated and measured are explained in minutes from the AGM 2017 under Item 17, and summarized below:

LTV 2017 and EPP 2017 Performance Targets

Year	Target	Criteria	Weight			Vesting
2017	Absolute TSR	Range: 6%–14%		50	%	0%–200% (linear pro-rata )
2017	Relative TSR	Ranking of Ericsson: 12–5		50	%	0%–200% (linear pro-rata )

Summary of Compensation Cost

The cost of the cash based plans (the Executive Performance Plan 2017 and the 2017 Key Contributor Plan) in 2017 is shown in the table below:

Compensation cost under LTV cash based plans

(SEK million)	Number of synthetic shares (million)		Compensation cost year 2017 1)
Executive Performance Plan		2.3		31.4	2)
Key Contributor Plan		11.8		138.6	3)
Total compensation cost		14.1		170.0

1) 7.5 months between May 18 and December 31, 2017.

2) Fair value at grant date, SEK 65.68.

3) Fair value based on share price as of December 18, 2017, SEK 56.55.

Summary of Stock Purchase Plans

The table below shows the contribution periods and participation details for ongoing plans as of December 31, 2017.

Stock Purchase Plans

Plan	Contribution period	Number of participants at launch		Take-up rate–percent of eligible employees
Stock Purchase plan 2014	August 2014–July 2015		32,000		30	%
Stock Purchase plan 2015	August 2015–July 2016		33,800		31	%
Stock Purchase plan 2016	August 2016–July 2017		31,500		29	%

Summary of Executive Performance Stock Plan Targets

Executive Performance Stock Plan targets

	Base year value SEK billion		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	70	%	³	70	%	³	70	%
2015
Growth (Net sales growth)		228.0		Compound annual growth rate of 2–6%
Margin (Operating income growth)1)		16.8		Compound annual growth rate of 5–15%
Cash flow (Cash conversion)		—	³	70	%	³	70	%	³	70	%

1) Excluding extraordinary restructuring charges.

Summary of Shares for All Plans

Shares for LTV 2013–2016

Plan (million shares)		Stock Purchase Plan, Key Contributor Retention Plan and Executive Performance Stock Plans												Total
		2016			2015			2014			2013
Originally designated	A		21.6			23.5			22.8			26.6			94.5
Outstanding beginning of 2017	B		7.5			18.7			11.8			7.0			45.0
Awarded during 2017	C		17.1			—			—			—			17.1
Exercised/matched during 2017	D		1.4			1.6			3.2			6.8			13.0
Forfeited/expired during 2017	E		1.6			1.7			1.9			0.2			5.4
Outstanding end of 20171)	F=B+C–D–E		21.6			15.4			6.7			—			43.7
Compensation costs charged during 2017 (SEK million)3)	G		274.5	2)		315.4	2)		234.1	2)		51.5	2)		875.5

1) Shares under the Executive Performance Stock Plans were based on the fact that the 2013 plan came out at 39.7%, in casu 60.3% lapsed and that the 2014 plan vested for 33% and lapsed for 67%. For the other ongoing plans, cost is estimated.

2) Fair value is calculated as the share price on the investment date, reduced by the net present value of the dividend expectations during the three-year vesting period. Net present value calculations are based on data from external party. For shares under the Executive Performance Stock Plans, the company makes a forecast for the fulfillment of the financial targets for all ongoing plans except for 2013 and 2014 plans as disclosed under 1) when calculating the compensation cost. Fair value of the Class B share at each investment date during 2017 was: February 15 SEK 46.77, May 15 SEK 54.46 and August 15 SEK 46.19.

3) Total compensation costs charged during 2016: SEK 957 million, 2015: SEK 865 million.

Summary of Average Number of employees

Average number of employees by gender and market area

	2017						2016
	Women		Men		Total		Women		Men		Total
South East Asia, Oceania and India		5,212		19,773		24,985		6,106		20,499		26,605
North East Asia		4,189		8,657		12,846		4,297		9,186		13,483
North America		2,337		8,595		10,932		2,862		10,667		13,529
Europe and Latin America1) 2)		13,135		40,647		53,782		12,928		44,558		57,486
Middle East and Africa		920		3,904		4,824		743		4,570		5,313
Total		25,793		81,576		107,369		26,936		89,480		116,416
1)   Of which in Sweden		3,299		11,013		14,312		3,650		12,359		16,009
2)   Of which in EU		10,534		31,130		41,664		10,056		33,852		43,907

Summary of Number of Employees by Region

Number of employees by market area at year-end

	2017		2016
South East Asia, Oceania and India		24,495		26,570
North East Asia		12,456		13,042
North America		10,009		11,547
Europe and Latin America1) 2)		49,231		54,873
Middle East and Africa		4,544		5,432
Total		100,735		111,464
1)   Of which in Sweden		13,864		15,303
2)   Of which in EU		39,508		42,625

Summary of Number of Employees by Gender and Age

Number of employees by gender and age at year-end 2017

	Women			Men			Percent of total
Under 25 years old		1,611			2,283			4	%
25–35 years old		9,776			27,458			37	%
36–45 years old		6,452			25,301			31	%
46–55 years old		4,205			16,741			21	%
Over 55 years old		1,490			5,418			7	%
Percent of total		23	%		77	%		100	%

Summary of Employee Movements

Employee movements

	2017		2016
Headcount at year-end		100,735		111,464
Employees who have left the Company		21,791		19,865
Employees who have joined the Company		11,062		15,048
Temporary employees		676		1,148

Summary of Wages and Salaries and Social Security Expenses

Employee wages and salaries

Wages and salaries and social security expenses

(SEK million)	2017		2016
Wages and salaries		58,966		60,064
Social security expenses		17,536		17,710
Of which pension costs		5,592		5,254

Summary of Remuneration to Board Members and Presidents in Subsidiaries

Remuneration to Board members and Presidents in subsidiaries

(SEK million)	2017	2016
Salary and other remuneration	347		462
Of which annual variable remuneration	79		106
Pension costs1)	32		38

1) Pension costs are over and above any social secutity charges and taxes.

Summary of Board Members, Presidents and Group Management by Gender

Board members, Presidents and Group management by gender at year end

	2017						2016
	Women			Men			Women			Men
Parent Company
Board members and President		43	%		57	%		46	%		54	%
Group Management		36	%		64	%		35	%		65	%
Subsidiaries
Board members and Presidents		19	%		81	%		19	%		81	%

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C30 Fees to auditors (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Fees to Auditors

Fees to auditors

	PwC		Others		Total
2017
Audit fees		89		2		91
Audit-related fees		11		—		11
Tax fees		13		4		17
Other fees		9		7		16
Total		122		13		135
2016
Audit fees		90		3		93
Audit-related fees		10		—		10
Tax fees		10		8		18
Other fees		16		11		27
Total		126		22		148
2015
Audit fees		91		2		93
Audit-related fees		11		—		11
Tax fees		19		13		32
Other fees		8		—		8
Total		129		15		144

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C31 Contractual obligations (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Contractual Obligations

Contractual obligations 2017

	Payment due by period
SEK billion	< 1 year		1–3 years		3–5 years		> 5 years		Total
Current and Non-current debt1) 2)		2.8		8.9		14.3		7.9		33.9
Operating leases3)		3.5		5.4		3.4		4.8		17.1
Other non-current liabilities		0.4		0.7		—		1.7		2.8
Purchase obligations4)		6.2		0.9		0.7		—		7.8
Trade payables		26.3		—		—		—		26.3
Commitments for customer finance5)		9.7		—		—		—		9.7
Total		48.9		15.9		18.4		14.4		97.6

1) Including interest payments.

2) See also Note C19, “Interest-bearing liabilities.”

3) See also Note C27, “Leasing.”

4) The amounts of purchase obligations are gross, before deduction of any related provisions.

5) See also Note C14, “Trade receivables and customer finance.”

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Significant Accounting Policies - Additional Information (Detail) - SEK (kr) kr in Millions		12 Months Ended
	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary Of Significant Accounting Policies [Line items]
Increase in loss allowance for trade receivables		kr 1,380	kr 5,933	kr 7,000
Transition to IFRS 9 [member]
Summary Of Significant Accounting Policies [Line items]
Net reduction to equity	kr 1,400
Increase in loss allowance for trade receivables	1,200
Increase in carrying value of borrowings	600
Major ordinary share transactions [member]
Summary Of Significant Accounting Policies [Line items]
Net reduction to equity	2,600
Transition to IFRS 15 [member]
Summary Of Significant Accounting Policies [Line items]
Contract asset	13,100
Contract liability	kr 22,100
Bottom of range [member]
Summary Of Significant Accounting Policies [Line items]
Potential voting rights		20.00%
Estimated useful lives in general for real estate		25 years
Estimated useful lives for machinery and equipment		3 years
Top of range [member]
Summary Of Significant Accounting Policies [Line items]
Potential voting rights		50.00%
Estimated useful lives in general for real estate		50 years
Estimated useful lives for machinery and equipment		10 years

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Significant Accounting Policies - Summary of Impact on Implementation of IFRS 9 and IFRS 15 on Equity and Other Balance Sheet Items (Detail) - SEK (kr) kr in Millions	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Non-current assets
Deferred tax assets		kr 21,228	kr 15,522
Current assets
Inventories		24,960	30,307
Trade receivables		63,210	68,117
Equity and liabilities
Equity		100,176	140,492	kr 147,366	kr 145,309
Non-current liabilities
Borrowings, non-current		30,500	18,653
Current liabilities
Other current liabilities		62,370	56,003
Increase (decrease) due to application of IFRS 15 [member]
Non-current assets
Deferred tax assets		735
Current assets
Inventories		587
Contract assets		13,120
Trade receivables		(15,105)
Equity and liabilities
Equity		(2,605)
Current liabilities
Contract liabilities		22,121
Other current liabilities		(20,179)
Restated [member]
Non-current assets
Deferred tax assets		21,963
Current assets
Inventories		25,547
Contract assets		13,120
Trade receivables		48,105
Equity and liabilities
Equity		97,571	kr 135,257	kr 143,013
Non-current liabilities
Borrowings, non-current		30,500
Current liabilities
Contract liabilities		22,121
Other current liabilities		42,191
IFRS 9 adjustment [member]
Non-current assets
Deferred tax assets		407
Current assets
Trade receivables		(1,240)
Equity and liabilities
Equity		(1,401)
Non-current liabilities
Borrowings, non-current		kr 568
Balance after IFRS adjustments [member]
Non-current assets
Deferred tax assets	kr 22,370
Current assets
Inventories	25,547
Contract assets	13,120
Trade receivables	46,865
Equity and liabilities
Equity	96,170
Non-current liabilities
Borrowings, non-current	31,068
Current liabilities
Contract liabilities	22,121
Other current liabilities	kr 42,191

XML

Significant Accounting Policies - Summary of Estimated Impact of IFRS 15 on Equity (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Equity	kr 100,176	kr 140,492	kr 147,366	kr 145,309
Previously stated [member]
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Equity		140,492	147,366
Increase (decrease) due to changes in accounting policy required by IFRSs [member]
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Equity		(5,235)	(4,353)
Restated [member]
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Equity	kr 97,571	kr 135,257	kr 143,013

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Significant Accounting Policies - Summary of Estimated Impact of IFRS 15 on Income Statement Items (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Net sales	kr 201,303	kr 222,608	kr 246,920
Cost of sales	(156,758)	(156,243)	(161,101)
Gross income	44,545	66,365	85,819
Operating income	(38,126)	6,299	21,805
Taxes	4,267	(2,131)	(6,199)
Net income	(35,063)	1,895	kr 13,673
Previously stated [member]
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Net sales	201,303	222,608
Cost of sales	(156,758)	(156,243)
Gross income	44,545	66,365
Operating income	(38,126)	6,299
Taxes	4,267	(2,131)
Net income	(35,063)	1,895
Increase (decrease) due to changes in accounting policy required by IFRSs [member]
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Net sales	4,075	(2,292)
Cost of sales	(703)	1,160
Gross income	3,372	(1,132)
Operating income	3,372	(1,132)
Taxes	(742)	249
Net income	2,630	(883)
Restated [member]
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Net sales	205,378	220,316
Cost of sales	(157,461)	(155,083)
Gross income	47,917	65,233
Operating income	(34,754)	5,167
Taxes	3,525	(1,882)
Net income	kr (32,433)	kr 1,012

XML

Critical Accounting Estimates and Judgments - Additional Information (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of accounting judgements and estimates [line items]
Information about major customers	There is no customer for which revenues exceeds 10% of the Company's total revenue. It is, however, also disclosed that most of the sales are derived from large, multi-year agreements with a limited number of significant customers.
Allowances for estimated losses on trade and customer receivables	kr 3,600	kr 1,700
Percentage of allowances for estimated losses on gross trade and customer finance receivables	5.10%	2.20%
Allowances for estimated losses on inventory valuation	kr 2,400	kr 2,400
Allowances for estimated losses on inventory valuation, percentage	9.00%	7.00%
Deferred tax assets	kr 21,228	kr 15,522
Write-downs for intangible assets and goodwill amounted	19,441	241	kr 20
Goodwill	27,815	43,387
Provisions	9,946	6,357	kr 3,838
Defined benefit obligation (DBO)	87,645	87,175
Fair value of plan assets	64,939	64,485
Goodwill and intangible assets [member]
Disclosure of accounting judgements and estimates [line items]
Write-downs for intangible assets and goodwill amounted	17,200
Intellectual property rights brands and other intangible assets [member]
Disclosure of accounting judgements and estimates [line items]
Intangible assets and goodwill	kr 32,000	kr 51,100

XML

Segment Information - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017 Customers Segments	Dec. 31, 2016
Disclosure of operating segments [line items]
Number of operating segments reported | Segments	4
Description of factors used to identify entity's reportable segments	When determining Ericsson's operating segments, consideration has been given to which markets and what type of customers the products and services aim to attract, as well as the distribution channels they are sold through. Commonality regarding technology, research and development has also been taken into account. To best reflect the business focus and to facilitate comparability with peers, four operating segments are reported;
Number of customers representing 10% or more of sales	0
10 largest customers [member]
Disclosure of operating segments [line items]
Percentage of contribution to net sales	45.00%	46.00%
Largest customer [member]
Disclosure of operating segments [line items]
Percentage of contribution to net sales	7.00%	7.00%
Networks [member] | IPR licensing revenues [member]
Disclosure of operating segments [line items]
Percentage of revenue	82.00%
Digital services [member] | IPR licensing revenues [member]
Disclosure of operating segments [line items]
Percentage of revenue	18.00%
Bottom of range [member]
Disclosure of operating segments [line items]
Number of customer base	500

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Segment Information - Summary of Operating Segments (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of operating segments [line items]
Net sales	kr 201,303	kr 222,608	kr 246,920
Gross income	kr 44,545	kr 66,365	kr 85,819
Gross margin	22.10%	29.80%	34.80%
Operating income	kr (38,126)	kr 6,299	kr 21,805
Operating margin	(19.00%)	3.00%	9.00%
Financial income	kr (361)	kr (115)	kr 525
Financial expenses	(843)	(2,158)	(2,458)
Income after financial items	(39,330)	4,026	19,872
Taxes	4,267	(2,131)	(6,199)
Net income	(35,063)	1,895	13,673
Other segment items
Share in earnings of JV and associated companies	24	31	(38)
Amortization	(4,348)	(4,465)	(5,518)
Depreciation	(4,103)	(4,421)	(4,705)
Impairment losses	(19,441)	(241)	(20)
Reversals of impairment losses		8	16
Restructuring expenses	(8,501)	(7,567)	(5,040)
Gains/losses on sale of investments and operations	194	123	(49)
Operating segments [member]
Disclosure of operating segments [line items]
Net sales	201,303	222,608	246,920
Gross income	kr 44,545	kr 66,365	kr 85,818
Gross margin	22.00%	30.00%	35.00%
Operating income	kr (38,126)	kr 6,299	kr 21,805
Operating margin	(19.00%)	3.00%	9.00%
Other segment items
Share in earnings of JV and associated companies	kr 24	kr 31	kr (38)
Amortization	(4,348)	(4,465)
Depreciation	(4,103)	(4,421)
Impairment losses	(19,441)	(241)	(20)
Reversals of impairment losses		8	16
Restructuring expenses	(8,501)	(7,567)
Gains/losses on sale of investments and operations	194	123	(49)
Operating segments [member] | Networks [member]
Disclosure of operating segments [line items]
Net sales	127,966	140,984	157,791
Gross income	kr 40,622	kr 47,099	kr 59,653
Gross margin	32.00%	33.00%	38.00%
Operating income	kr 7,644	kr 17,570	kr 28,290
Operating margin	6.00%	12.00%	18.00%
Other segment items
Share in earnings of JV and associated companies	kr 22	kr 11	kr (1)
Amortization	(1,104)	(1,526)
Depreciation	(1,883)	(2,532)
Impairment losses	(1,413)	(90)
Reversals of impairment losses		5	10
Restructuring expenses	(4,828)	(3,413)
Gains/losses on sale of investments and operations	316	72	(32)
Operating segments [member] | Digital services [member]
Disclosure of operating segments [line items]
Net sales	40,981	45,298	49,443
Gross income	kr 4,361	kr 16,081	kr 21,264
Gross margin	11.00%	36.00%	43.00%
Operating income	kr (27,672)	kr (6,663)	kr (3,389)
Operating margin	(68.00%)	(15.00%)	(7.00%)
Other segment items
Share in earnings of JV and associated companies	kr 8	kr 22	kr (33)
Amortization	(2,465)	(1,923)
Depreciation	(1,268)	(1,061)
Impairment losses	(9,349)	(38)
Reversals of impairment losses		2	3
Restructuring expenses	(2,513)	(3,176)
Gains/losses on sale of investments and operations	(56)	27	(10)
Operating segments [member] | Managed services [member]
Disclosure of operating segments [line items]
Net sales	24,494	27,501	30,597
Gross income	kr (1,816)	kr 1,062	kr 1,655
Gross margin	(7.00%)	4.00%	5.00%
Operating income	kr (4,274)	kr (507)	kr (19)
Operating margin	(17.00%)	(2.00%)
Other segment items
Share in earnings of JV and associated companies	kr (6)		10
Amortization	(14)	kr (18)	(47)
Depreciation	(193)	(341)	(388)
Impairment losses	(108)	(12)
Reversals of impairment losses		1	1
Restructuring expenses	(675)	(382)	(238)
Gains/losses on sale of investments and operations	1	18	(7)
Operating segments [member] | All other segments [member]
Disclosure of operating segments [line items]
Net sales	7,862	8,825	9,089
Gross income	kr 1,378	kr 2,123	kr 3,246
Gross margin	18.00%	24.00%	36.00%
Operating income	kr (13,824)	kr (4,101)	kr (3,077)
Operating margin	(176.00%)	(46.00%)	(34.00%)
Other segment items
Share in earnings of JV and associated companies		kr (2)	kr (14)
Amortization	kr (765)	(998)	(960)
Depreciation	(759)	(487)	(440)
Impairment losses	(8,571)	(101)	(20)
Reversals of impairment losses			2
Restructuring expenses	(485)	(596)	kr (162)
Gains/losses on sale of investments and operations	kr (67)	kr 6

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Segment Information - Summary of Geographical Information (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of geographical areas [line items]
Net sales	kr 201,303	kr 222,608	kr 246,920
Non-current assets	50,037	76,719	73,007
South East Asia, Oceania and India [member]
Disclosure of geographical areas [line items]
Net sales	30,568	32,597	32,155
Non-current assets	512	690	668
North East Asia [member]
Disclosure of geographical areas [line items]
Net sales	23,506	27,185	28,106
Non-current assets	1,516	1,556	2,005
North America [member]
Disclosure of geographical areas [line items]
Net sales	49,621	52,003	55,063
Non-current assets	8,387	14,650	14,870
Europe and Latin America [member]
Disclosure of geographical areas [line items]
Net sales	56,175	62,543	73,603
Non-current assets	39,559	59,737	55,325
Middle East and Africa [member]
Disclosure of geographical areas [line items]
Net sales	25,073	28,104	33,002
Non-current assets	63	86	139
Other regions [member]
Disclosure of geographical areas [line items]
Net sales	16,360	20,176	24,991
Sweden [member]
Disclosure of geographical areas [line items]
Net sales	2,989	3,123	3,796
Non-current assets	34,381	53,111	48,467
European Union [member]
Disclosure of geographical areas [line items]
Net sales	36,072	38,525	45,585
Non-current assets	37,895	57,759	53,759
US [member]
Disclosure of geographical areas [line items]
Net sales	52,322	56,748	64,299
Non-current assets	7,092	11,053	12,325
China [member]
Disclosure of geographical areas [line items]
Net sales	14,937	19,156	18,977
Non-current assets	kr 1,123	kr 530	kr 1,547

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Net Sales - Summary of Net Sales (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenue [abstract]
Sales of products and network rollout services	kr 123,990	kr 135,778	kr 150,775
Professional Services sales	69,408	76,816	81,749
License revenues	7,905	10,014	14,396
Net sales	201,303	222,608	246,920
Export sales from Sweden	kr 86,812	kr 107,036	kr 117,486

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Expenses by Nature - Summary of Expenses by Nature (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Expenses by nature [abstract]
Goods and services	kr 128,211	kr 133,848	kr 137,458
Employee remuneration	76,502	77,774	80,054
Amortization and depreciation	8,451	8,886	10,223
Impairments and obsolescence allowances, net of reversals	11,531	1,325	1,438
Financial expenses	843	2,158	2,458
Taxes	(4,267)	2,131	6,199
Expenses incurred	221,271	226,122	237,830
Inventory increase/decrease	4,070	(606)	(394)
Additions to capitalized development	(1,444)	(4,483)	(3,302)
Expenses charged to the income statement	kr 223,897	kr 221,033	kr 233,888

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Expenses by Nature - Additional Information (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Expense by Nature [Line Items]
Expense of restructuring activities related to write-down of center	kr 8,501	kr 7,567	kr 5,040
ICT center [member]
Expense by Nature [Line Items]
Expense of restructuring activities related to write-down of center	kr 1,300

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Expenses by Nature - Summary of Restructuring Charges by Function (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Expense by Nature [Line Items]
Total restructuring charges	kr 8,501	kr 7,567	kr 5,040
Cost of sales [member]
Expense by Nature [Line Items]
Total restructuring charges	5,242	3,475	2,274
R&D expenses [member]
Expense by Nature [Line Items]
Total restructuring charges	2,307	2,739	2,021
Selling and administrative expenses [member]
Expense by Nature [Line Items]
Total restructuring charges	kr 952	kr 1,353	kr 745

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Other Operating Income and Expenses - Schedule of Other Operating Income and Expenses (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other operating income
Gains on sales of intangible assets and PP&E	kr 47	kr 423	kr 363
Gains on sales of investments and operations	324	219	1
Other operating revenues	783	1,345	1,204
Total other operating income	1,154	1,987	1,568
Other operating expenses
Losses on sales of intangible assets and PP&E	(74)	(509)	(158)
Losses on sales of investments and operations	(130)	(96)	(50)
Write-down of goodwill	(12,966)
Other operating expenses	(116)	(978)	(1,207)
Total other operating expenses	kr (13,286)	kr (1,583)	kr (1,415)

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Other Operating Income and Expenses - Schedule of Other Operating Income and Expenses (Parenthetical) (Detail) - SEK (kr) kr in Billions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Analysis of income and expense [abstract]
Revaluation of cash flow hedges	kr 0.0	kr (0.9)	kr (1.1)

XML

Financial Income and Expenses - Summary of Financial Income and Expenses (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of detailed information about finance income expense [Line Items]
Finance income	kr (361)	kr (115)	kr 525
Finance expenses	(843)	(2,158)	(2,458)
Contractual interest on financial assets [member]
Disclosure of detailed information about finance income expense [Line Items]
Finance income	(75)	32	385
Contractual interest on financial assets at fair value through profit or loss category [member]
Disclosure of detailed information about finance income expense [Line Items]
Finance income	(92)	(316)	(110)
Instruments at fair value through profit or loss [member]
Disclosure of detailed information about finance income expense [Line Items]
Finance income	(231)	(68)	190
Available for sale [member]
Disclosure of detailed information about finance income expense [Line Items]
Finance income	40
Loans and receivables [member]
Disclosure of detailed information about finance income expense [Line Items]
Finance income	(102)	(79)	(53)
Other financial income and expenses [member]
Disclosure of detailed information about finance income expense [Line Items]
Finance income	7		3
Contractual interest on financial liabilities [member]
Disclosure of detailed information about finance income expense [Line Items]
Finance expenses	(1,027)	(1,355)	(1,428)
Instruments at fair value through profit or loss [member]
Disclosure of detailed information about finance income expense [Line Items]
Finance expenses	543	(729)	(760)
Financial assets including hedge relationships at fair value through profit or loss category [member]
Disclosure of detailed information about finance income expense [Line Items]
Finance expenses	2	71	152
Liabilities at amortized cost [member]
Disclosure of detailed information about finance income expense [Line Items]
Finance expenses	72	218	213
Other financial income and expenses [member]
Disclosure of detailed information about finance income expense [Line Items]
Finance expenses	kr (431)	kr (292)	kr (483)

XML

Financial Income and Expenses - Summary of Financial Income and Expenses (Parenthetical) (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cost of sales [member]
Disclosure of detailed information about finance income expense [Line Items]
Net loss from operating assets and liabilities	kr 451	kr 234	kr 165

XML

Taxes - Additional Information (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items]
Tax benefit (expense)	kr 4,267	kr (2,131)	kr (6,199)
Effective tax rate	10.80%	52.90%	31.20%
Tax effects recognized in other comprehensive income (loss)	kr (563)	kr 521
Actuarial gains and losses related to pensions	(547)	520
Deferred tax assets	21,228	15,522
Tax loss carry-forwards	47,360	20,929
Unrecognized tax loss carry forwards	4,544	3,936
Unrecognized tax loss carry forwards, tax value	842	950
Loss Carry Forwards [member]
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items]
Deferred tax assets	kr 10,712	4,883
Sweden [member]
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items]
Expected applicable tax rate	22.00%
Sweden [member] | Loss Carry Forwards [member]
Disclosure of reconciliation of changes in deferred tax liability asset [Line Items]
Deferred tax assets	kr 8,795	kr 3,774

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Taxes - Components of Income Taxes Recognized in Income Statement (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Major components of tax expense (income) [abstract]
Current income taxes for the year	kr (4,168)	kr (3,654)	kr (6,641)
Current income taxes related to prior years	83	(489)	(104)
Deferred tax income/expense	8,355	2,017	546
Share of taxes in joint ventures and associated companies	(3)	(5)
Tax expense/benefit	kr 4,267	kr (2,131)	kr (6,199)

XML

Taxes - Reconciliation of Swedish Income Tax Rate with Effective Tax Rate (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of accounting profit multiplied by applicable tax rates [abstract]
Expected tax expense at Swedish tax rate 22.0%	kr 8,652	kr (886)	kr (4,372)
Effect of foreign tax rates	205	(536)	(1,101)
Current income taxes related to prior years	83	(489)	(104)
Remeasurement of tax loss carry-forwards	(150)	143	(250)
Remeasurement of deductible temporary differences	127	119	185
Tax effect of non-deductible expenses	(4,144)	(1,357)	(1,559)
Tax effect of non-taxableincome	480	935	981
Tax effect of changes in tax rates	(986)	(60)	21
Tax expense/benefit	kr 4,267	kr (2,131)	kr (6,199)
Effective tax rate	10.80%	52.90%	31.20%

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Taxes - Reconciliation of Swedish Income Tax Rate with Effective Tax Rate (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2017
Sweden [member]
Reconciliation of effective tax rate [Line Items]
Statutory tax rate in Sweden	22.00%

XML

Taxes - Tax Effects of Temporary Differences and Tax Loss Carry-forwards (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	kr 21,228	kr 15,522
Deferred tax liabilities	901	2,147
Net balance	20,327	13,375	kr 10,711
Intangible assets and property, plant and equipment [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	894	1,223
Deferred tax liabilities	2,374	4,173
Current assets [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	2,667	2,352
Deferred tax liabilities	866	501
Post employment benefits [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	4,886	4,382
Deferred tax liabilities	704	692
Provisions [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	1,846	1,631
Deferred tax liabilities	15	13
Other [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	3,556	4,557
Deferred tax liabilities	275	274
Loss Carry Forwards [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	10,712	4,883
Deferred tax assets/ liabilities [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	24,561	19,028
Deferred tax liabilities	4,234	5,653
Net balance	20,327	13,375
Netting of tax assets/ liabilities [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	(3,333)	(3,506)
Deferred tax liabilities	kr (3,333)	kr (3,506)

XML

Taxes - Changes in Deferred Taxes, Net (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of changes in deferred tax liability (asset) [abstract]
Opening balance, net	kr 13,375	kr 10,711
Recognized in net income (loss)	8,355	2,017
Recognized in other comprehensive income (loss)	(563)	521
Acquisitions/disposals of subsidiaries		(57)
Reclassification to current tax	(462)
Currency translation differences	(378)	183
Closing balance, net	kr 20,327	kr 13,375

XML

Taxes - Tax Loss Carry-forwards (Detail) kr in Millions	Dec. 31, 2017 SEK (kr)
Disclosure Of Income Taxes [Line Items]
Tax loss carry-forwards	kr 47,360
Tax value	10,712
2019 [member]
Disclosure Of Income Taxes [Line Items]
Tax loss carry-forwards	37
Tax value	9
2020 [member]
Disclosure Of Income Taxes [Line Items]
Tax loss carry-forwards	74
Tax value	15
2021 [member]
Disclosure Of Income Taxes [Line Items]
Tax loss carry-forwards	197
Tax value	32
2022 [member]
Disclosure Of Income Taxes [Line Items]
Tax loss carry-forwards	870
Tax value	218
2023 or later [member]
Disclosure Of Income Taxes [Line Items]
Tax loss carry-forwards	46,182
Tax value	kr 10,438

XML

Earnings Per Share - Schedule of Earnings Per Share (Detail) - SEK (kr) kr / shares in Units, shares in Millions, kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Basic
Net income (loss) attributable to stockholders of the Parent Company	kr (35,206)	kr 1,716	kr 13,549
Average number of shares outstanding, basic	3,277	3,263	3,249
Earnings (loss) per share, basic	kr (10.74)	kr 0.53	kr 4.17
Diluted
Net income (loss) attributable to stockholders of the Parent Company	kr (35,206)	kr 1,716	kr 13,549
Average number of shares outstanding, basic	3,277	3,263	3,249
Dilutive effect for stock purchase		40	33
Average number of shares outstanding, diluted	3,277	3,303	3,282
Earnings (loss) per share, diluted	kr (10.74)	kr 0.52	kr 4.13

XML

Intangible Assets - Summary of Intangible Assets (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cost
Impairment losses	kr 17,230	kr 85	kr 20
Capitalized development expenditure [member]
Cost
Intangible assets and goodwill, Opening balance	8,076
Intangible assets and goodwill, Closing balance	4,593	8,076
Capitalized development expenditure [member] | Cost [member]
Cost
Intangible assets and goodwill, Opening balance	22,306	19,217
Acquisitions/capitalization	1,444	4,483
Sales/disposals	(1,019)	(1,394)
Intangible assets and goodwill, Closing balance	22,731	22,306	19,217
Capitalized development expenditure [member] | Accumulated depreciation and amortization [member]
Cost
Intangible assets and goodwill, Opening balance	(12,015)	(11,594)
Amortization	(2,681)	(1,815)
Sales/disposals	1,019	1,394
Intangible assets and goodwill, Closing balance	(13,677)	(12,015)	(11,594)
Capitalized development expenditure [member] | Accumulated impairment losses [member]
Cost
Intangible assets and goodwill, Opening balance	(2,215)	(2,130)
Impairment losses	(2,245)	(85)
Intangible assets and goodwill, Closing balance	(4,460)	(2,215)	(2,130)
Goodwill [member]
Cost
Intangible assets and goodwill, Opening balance	43,387
Intangible assets and goodwill, Closing balance	27,815	43,387
Goodwill [member] | Cost [member]
Cost
Intangible assets and goodwill, Opening balance	43,405	41,105
Balances regarding acquired/divested businesses 2)	(122)	585
Reclassification		(640)
Translation difference	(2,484)	2,355
Intangible assets and goodwill, Closing balance	40,799	43,405	41,105
Goodwill [member] | Accumulated impairment losses [member]
Cost
Intangible assets and goodwill, Opening balance	(18)	(18)
Impairment losses	(12,966)
Intangible assets and goodwill, Closing balance	(12,984)	(18)	(18)
IPR, brands and other intangible assets [member]
Cost
Intangible assets and goodwill, Opening balance	7,747
Intangible assets and goodwill, Closing balance	4,148	7,747
IPR, brands and other intangible assets [member] | Cost [member]
Cost
Intangible assets and goodwill, Opening balance	57,340	55,895
Acquisitions/capitalization	336	15
Balances regarding acquired/divested businesses 2)	101	177
Sales/disposals	(152)	(870)
Reclassification		640
Translation difference	(1,693)	1,483
Intangible assets and goodwill, Closing balance	55,932	57,340	55,895
IPR, brands and other intangible assets [member] | Accumulated depreciation and amortization [member]
Cost
Intangible assets and goodwill, Opening balance	(44,262)	(41,248)
Amortization	(1,667)	(2,650)
Sales/disposals	152	840
Translation difference	1,343	(1,204)
Intangible assets and goodwill, Closing balance	(44,434)	(44,262)	(41,248)
IPR, brands and other intangible assets [member] | Accumulated impairment losses [member]
Cost
Intangible assets and goodwill, Opening balance	(5,331)	(5,331)
Impairment losses	(2,019)
Intangible assets and goodwill, Closing balance	(7,350)	(5,331)	(5,331)
Marketed products [member] | Capitalized development expenditure [member]
Cost
Intangible assets and goodwill, Opening balance	7,880
Intangible assets and goodwill, Closing balance	4,475	7,880
Marketed products [member] | Capitalized development expenditure [member] | Cost [member]
Cost
Intangible assets and goodwill, Opening balance	18,246	15,307
Acquisitions/capitalization	1,340	4,333
Sales/disposals		(1,394)
Intangible assets and goodwill, Closing balance	19,586	18,246	15,307
Marketed products [member] | Capitalized development expenditure [member] | Accumulated depreciation and amortization [member]
Cost
Intangible assets and goodwill, Opening balance	(8,243)	(7,995)
Amortization	(2,586)	(1,642)
Sales/disposals		1,394
Reclassification	(101)
Intangible assets and goodwill, Closing balance	(10,930)	(8,243)	(7,995)
Marketed products [member] | Capitalized development expenditure [member] | Accumulated impairment losses [member]
Cost
Intangible assets and goodwill, Opening balance	(2,123)	(2,038)
Impairment losses	(2,058)	(85)
Intangible assets and goodwill, Closing balance	(4,181)	(2,123)	(2,038)
Acquired costs [member] | Capitalized development expenditure [member] | Cost [member]
Cost
Intangible assets and goodwill, Opening balance	2,213	2,213
Intangible assets and goodwill, Closing balance	2,213	2,213	2,213
Acquired costs [member] | Capitalized development expenditure [member] | Accumulated depreciation and amortization [member]
Cost
Intangible assets and goodwill, Opening balance	(2,158)	(2,158)
Intangible assets and goodwill, Closing balance	(2,158)	(2,158)	(2,158)
Acquired costs [member] | Capitalized development expenditure [member] | Accumulated impairment losses [member]
Cost
Intangible assets and goodwill, Opening balance	(55)	(55)
Intangible assets and goodwill, Closing balance	(55)	(55)	(55)
Internally costs [member] | Capitalized development expenditure [member]
Cost
Intangible assets and goodwill, Opening balance	196
Intangible assets and goodwill, Closing balance	119	196
Internally costs [member] | Capitalized development expenditure [member] | Cost [member]
Cost
Intangible assets and goodwill, Opening balance	1,847	1,697
Acquisitions/capitalization	104	150
Sales/disposals	(1,019)
Intangible assets and goodwill, Closing balance	932	1,847	1,697
Internally costs [member] | Capitalized development expenditure [member] | Accumulated depreciation and amortization [member]
Cost
Intangible assets and goodwill, Opening balance	(1,614)	(1,441)
Amortization	(95)	(173)
Sales/disposals	1,019
Reclassification	101
Intangible assets and goodwill, Closing balance	(589)	(1,614)	(1,441)
Internally costs [member] | Capitalized development expenditure [member] | Accumulated impairment losses [member]
Cost
Intangible assets and goodwill, Opening balance	(37)	(37)
Impairment losses	(187)
Intangible assets and goodwill, Closing balance	kr (224)	kr (37)	kr (37)

XML

Intangible Assets - Additional Information (Detail) kr in Millions, Mobile_subscriptions in Billions, Device in Billions	12 Months Ended
	Dec. 31, 2023 Mobile_subscriptions Device	Dec. 31, 2017 SEK (kr) Mobile_subscriptions	Dec. 31, 2016 SEK (kr)
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Goodwill		kr 27,815	kr 43,387
Write down of goodwill		12,966
Write-downs of intangibles and capitalized development		kr 2,000
After-tax discount rate		8.50%	8.00%
Subscription by 2023 [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Number of connected devices are forecasted | Device	30
Later than five year and not later than six years [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Percentage of estimated increase in mobile video traffic		50.00%
Percentage of estimated increase in mobile date traffic		75.00%
Research and development expenses [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Write-downs of intangibles and capitalized development		kr 2,600
Selling and administrative expenses [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Write-downs of intangibles and capitalized development		1,600
Technology [member] | Sunrise technology [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Write-downs of intangibles and capitalized development		500
Networks [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Goodwill		24,300
Write-downs of intangibles and capitalized development		100
Networks [member] | Technology [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Write-downs of intangibles and capitalized development		400
Digital services [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Goodwill		2,600
Write down of goodwill		6,900
Write-downs of intangibles and capitalized development		900
Digital services [member] | Goodwill [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Write-downs of intangibles and capitalized development		2,600
Digital services [member] | Technology [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Write-downs of intangibles and capitalized development		1,800
Other [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Goodwill		900
Write down of goodwill		6,100
Write-downs of intangibles and capitalized development		1,000
Other [member] | Research and development expenses [member] | Intangible asset [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Write-downs value		2,000
Other [member] | Media solutions [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Write-downs of intangibles and capitalized development		2,000
Other [member] | Media solutions [member] | Red bee media [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Write-downs of intangibles and capitalized development		800
Media solutions [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Write down of goodwill		kr 6,000
Mobile subscriptions [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Estimated number of global mobile subscriptions | Mobile_subscriptions		7.8
Mobile subscriptions [member] | Subscription by 2023 [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Estimated number of global mobile subscriptions | Mobile_subscriptions	9.1
Smart phone [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Estimated number of global mobile subscriptions | Mobile_subscriptions		7.3
5G subscriptions [member] | Subscription by 2023 [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Estimated number of global mobile subscriptions | Mobile_subscriptions	1.0
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

XML

Intangible Assets - Summary of Impairment Write-down by Segment (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of detailed information about intangible assets [line items]
Goodwill	kr 12,966
Intangible assets	2,000
Capitalized development expenses	2,200
Total write-down	17,230	kr 85	kr 20
Total write-down	17,230	kr 85	kr 20
Networks [member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets	100
Capitalized development expenses	300
Total write-down	400
Total write-down	400
Digital services [member]
Disclosure of detailed information about intangible assets [line items]
Goodwill	6,900
Intangible assets	900
Capitalized development expenses	900
Total write-down	8,700
Total write-down	8,700
Other [member]
Disclosure of detailed information about intangible assets [line items]
Goodwill	6,100
Intangible assets	1,000
Capitalized development expenses	1,000
Total write-down	8,100
Total write-down	kr 8,100

XML

Intangible Assets - Summary of Impairment Write-down by Segment (Parenthetical) (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of detailed information about intangible assets [line items]
Total write-down	kr 17,230	kr 85	kr 20
Other [member] | Media solutions [member]
Disclosure of detailed information about intangible assets [line items]
Total write-down	6,000
Other [member] | Red bee media [member]
Disclosure of detailed information about intangible assets [line items]
Total write-down	kr 100

XML

Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	kr 16,734
Impairment losses	2,200	kr 200
Property, plant and equipment, closing balance	12,857	16,734
Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	47,200	44,538
Additions	3,877	6,129
Balances regarding acquired/divested businesses	(155)	(52)
Sales/disposals	(7,352)	(4,885)
Reclassifications		(2)
Translation difference	(1,019)	1,472
Property, plant and equipment, closing balance	42,551	47,200
Accumulated depreciation and amortization [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	(30,341)	(28,621)
Depreciations	(4,103)	(4,421)
Balances regarding acquired/divested businesses	105	35
Sales/disposals	5,054	3,611
Reclassifications		1
Translation difference	683	(946)
Property, plant and equipment, closing balance	(28,602)	(30,341)
Accumulated impairment losses [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	(125)	(16)
Impairment losses	(2,211)	(156)
Reversals of impairment losses		8
Sales/disposals	1,254	39
Translation difference	(10)
Property, plant and equipment, closing balance	(1,092)	(125)
Real estate [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	3,460
Property, plant and equipment, closing balance	2,740	3,460
Real estate [member] | Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	7,132	6,475
Additions	150	177
Balances regarding acquired/divested businesses	(9)	(1)
Sales/disposals	(1,323)	(1,410)
Reclassifications	757	1,633
Translation difference	(197)	258
Property, plant and equipment, closing balance	6,510	7,132
Real estate [member] | Accumulated depreciation and amortization [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	(3,629)	(3,634)
Depreciations	(458)	(506)
Balances regarding acquired/divested businesses	9	2
Sales/disposals	349	643
Reclassifications		4
Translation difference	99	(138)
Property, plant and equipment, closing balance	(3,630)	(3,629)
Real estate [member] | Accumulated impairment losses [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	(43)
Impairment losses	(297)	(43)
Sales/disposals	200
Property, plant and equipment, closing balance	(140)	(43)
Machinery and other technical assets [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	632
Property, plant and equipment, closing balance	467	632
Machinery and other technical assets [member] | Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	4,286	4,560
Additions	183	148
Balances regarding acquired/divested businesses	(134)	(53)
Sales/disposals	(457)	(596)
Reclassifications	56	110
Translation difference	(115)	117
Property, plant and equipment, closing balance	3,819	4,286
Machinery and other technical assets [member] | Accumulated depreciation and amortization [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	(3,651)	(3,779)
Depreciations	(279)	(330)
Balances regarding acquired/divested businesses	85	26
Sales/disposals	442	534
Reclassifications		1
Translation difference	93	(103)
Property, plant and equipment, closing balance	(3,310)	(3,651)
Machinery and other technical assets [member] | Accumulated impairment losses [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	(3)	(10)
Impairment losses	(42)	(1)
Reversals of impairment losses		8
Sales/disposals	4
Translation difference	(1)
Property, plant and equipment, closing balance	(42)	(3)
Other equipment tools and installations [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	9,994
Property, plant and equipment, closing balance	8,042	9,994
Other equipment tools and installations [member] | Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	33,134	28,753
Additions	1,317	1,519
Balances regarding acquired/divested businesses	(12)	2
Sales/disposals	(5,387)	(2,610)
Reclassifications	2,226	4,570
Translation difference	(664)	900
Property, plant and equipment, closing balance	30,614	33,134
Other equipment tools and installations [member] | Accumulated depreciation and amortization [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	(23,061)	(21,208)
Depreciations	(3,366)	(3,585)
Balances regarding acquired/divested businesses	11	7
Sales/disposals	4,263	2,434
Reclassifications		(4)
Translation difference	491	(705)
Property, plant and equipment, closing balance	(21,662)	(23,061)
Other equipment tools and installations [member] | Accumulated impairment losses [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	(79)	(6)
Impairment losses	(1,872)	(112)
Sales/disposals	1,050	39
Translation difference	(9)
Property, plant and equipment, closing balance	(910)	(79)
Construction in progress and advance payments [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	2,648
Property, plant and equipment, closing balance	1,608	2,648
Construction in progress and advance payments [member] | Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, opening balance	2,648	4,750
Additions	2,227	4,285
Sales/disposals	(185)	(269)
Reclassifications	(3,039)	(6,315)
Translation difference	(43)	197
Property, plant and equipment, closing balance	kr 1,608	kr 2,648

XML

Property, Plant and Equipment - Additional Information (Detail) - SEK (kr) kr in Billions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Impairment losses	kr 2.2	kr 0.2
Sales/disposals	1.2
Networks [member]
Disclosure of detailed information about property, plant and equipment [line items]
Impairment losses	1.0
Digital services [member]
Disclosure of detailed information about property, plant and equipment [line items]
Impairment losses	0.7
Managed services [member]
Disclosure of detailed information about property, plant and equipment [line items]
Impairment losses	0.1
All other segments [member]
Disclosure of detailed information about property, plant and equipment [line items]
Impairment losses	kr 0.4

XML

Financial Assets, Non-current - Equity in Joint Ventures and Associated Companies (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of financial assets [line items]
Dividends	kr (3,424)	kr (12,263)	kr (11,337)
Associates and joint ventures [member]
Disclosure of financial assets [line items]
Equity in joint ventures and associated companies,Opening balance	775	1,210
Share in earnings	24	31
Distribution of capital stock	(95)
Taxes	(3)	(5)
Dividends	(77)	(84)
Divested business		(15)
Translation difference		(362)
Equity in joint ventures and associated companies,Closing balance	kr 624	kr 775	kr 1,210

XML

Financial Assets, Non-current - Equity in Joint Ventures and Associated Companies (Parenthetical) (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of financial assets [abstract]
Goodwill, net	kr 27,815	kr 43,387

XML

Financial Assets, Non-current - Ericsson's Share of Assets, Liabilities and Income in Associated Company Rockstar Consortium (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of financial assets [line items]
Net income and total comprehensive income	kr (37,862)	kr 4,514	kr 12,362
Rockstar Consortium LLC [member]
Disclosure of financial assets [line items]
Percentage in ownership interest	21.26%	21.26%	21.26%
Total assets	kr 20	kr 22	kr 21
Total liabilities			5
Net assets	20	22	16
Company's share of net assets	3	3	3
Net sales	kr 0	kr 0	0
Income after financial items			(642)
Net income and total comprehensive income			(642)
Company's share of net income and other comprehensive income			kr (137)

XML

Financial Assets, Non-current - Ericsson's Share of Assets, Liabilities and Income in Associated Company Rockstar Consortium (Parenthetical) (Detail) - Rockstar Consortium LLC [member]	12 Months Ended
	Dec. 31, 2017
Disclosure of financial assets [line items]
Percentage of company's share of net assets	21.26%
Percentage company's share of net income and other comprehensive income	21.26%

XML

Financial Assets, Non-current - Additional Information (Detail) - Rockstar Consortium LLC [member]	12 Months Ended
	Dec. 31, 2017 Patent
Disclosure of financial assets [line items]
Name of Acquiree	Rockstar Consortium LLC (Rockstar)
Number of patent asset	4,000
Description of acquiree	Rockstar Consortium LLC (Rockstar) is a company that was formed in 2011 by Apple, Blackberry, Ericsson, Microsoft, and Sony to purchase approximately 4,000 patent assets out of the original about 6,000 from the Nortel bankruptcy estate. On December 23, 2014, it was agreed between the owners of Rockstar and RPX Corporation (RPXC) that RPX shall purchase the remaining patents of Rockstar. The transaction occured in 2015 and after that the main part of the capital stock has been distributed to the owners. Rockstar Consortium has concluded its operations.
Nortel bankruptcy estate [member]
Disclosure of financial assets [line items]
Number of patent asset	6,000

XML

Financial Assets, Non-current - Summary of Financial Assets, Non-current (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Other investment in shares and participations [member] | Financial assets, non-current [member]
Disclosure of financial assets [line items]
Financial assets, non-current	kr 1,279	kr 1,179
Other investment in shares and participations [member] | Cost [member] | Financial assets, non-current [member]
Disclosure of financial assets [line items]
Financial assets, non-current, Opening balance	2,516	2,567
Additions	146	133
Disposals/repayments/deductions	(43)	(267)
Revaluation	99	2
Translation difference	(50)	81
Financial assets, non-current, Closing balance	2,668	2,516
Other investment in shares and participations [member] | Accumulated impairment losses [member] | Financial assets, non-current [member]
Disclosure of financial assets [line items]
Financial assets, non-current, Opening balance	(1,337)	(1,292)
Impairment losses/allowances	(126)	37
Disposals/repayments/deductions	25	(1)
Translation difference	49	(81)
Financial assets, non-current, Closing balance	(1,389)	(1,337)
Customer finance, non-current [member] | Financial assets, non-current [member]
Disclosure of financial assets [line items]
Financial assets, non-current	2,178	2,128
Customer finance, non-current [member] | Cost [member] | Financial assets, non-current [member]
Disclosure of financial assets [line items]
Financial assets, non-current, Opening balance	2,137	1,755
Additions	1,788	2,704
Disposals/repayments/deductions	(1,100)	(2,333)
Reclassification	(570)	(12)
Translation difference	(18)	23
Financial assets, non-current, Closing balance	2,237	2,137
Customer finance, non-current [member] | Accumulated impairment losses [member] | Financial assets, non-current [member]
Disclosure of financial assets [line items]
Financial assets, non-current, Opening balance	(9)	(16)
Impairment losses/allowances	(56)	(5)
Disposals/repayments/deductions	6	12
Financial assets, non-current, Closing balance	(59)	(9)
Interest bearing securities, non-current [member] | Financial assets, non-current [member]
Disclosure of financial assets [line items]
Financial assets, non-current	25,105	7,586
Interest bearing securities, non-current [member] | Cost [member] | Financial assets, non-current [member]
Disclosure of financial assets [line items]
Financial assets, non-current, Opening balance	7,586
Additions	54,687	7,593
Disposals/repayments/deductions	(37,241)
Revaluation	73	(7)
Financial assets, non-current, Closing balance	25,105	7,586
Derivatives, non-current [member] | Financial assets, non-current [member]
Disclosure of financial assets [line items]
Financial assets, non-current	86
Derivatives, non-current [member] | Cost [member] | Financial assets, non-current [member]
Disclosure of financial assets [line items]
Financial assets, non-current, Opening balance		452
Additions	86
Reclassification		(452)
Financial assets, non-current, Closing balance	86
Other financial assets, non-current [member]
Disclosure of financial assets [line items]
Change in value in funded pension plans	1,300	(1,622)
Other financial assets, non-current [member] | Financial assets, non-current [member]
Disclosure of financial assets [line items]
Financial assets, non-current	5,811	4,442
Other financial assets, non-current [member] | Cost [member] | Financial assets, non-current [member]
Disclosure of financial assets [line items]
Financial assets, non-current, Opening balance	4,648	5,365
Additions	503	785
Disposals/repayments/deductions	(375)	(187)
Revaluation	27	62
Translation difference	(169)	245
Financial assets, non-current, Closing balance	5,934	4,648
Other financial assets, non-current [member] | Accumulated impairment losses [member] | Financial assets, non-current [member]
Disclosure of financial assets [line items]
Financial assets, non-current, Opening balance	(206)	(183)
Impairment losses/allowances	(1)	(1)
Disposals/repayments/deductions	77	(1)
Translation difference	7	(21)
Financial assets, non-current, Closing balance	kr (123)	kr (206)

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Inventories - Summary of Inventories (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of inventories [abstract]
Raw materials, components, consumables and manufacturing work in progress	kr 4,015	kr 5,043
Finished products and goods for resale	8,864	12,183
Contract work in progress	12,081	13,081
Inventories, net	kr 24,960	kr 30,307

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Inventories - Additional Information (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of inventories [abstract]
Inventories, excluding contract work in progress, recognized as expense	kr 58,901	kr 63,386
Inventory obsolescence allowances	kr 2,425	kr 2,412	kr 2,555	kr 2,326

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Inventories - Movements in Obsolescence Allowances (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of inventories [abstract]
Inventory obsolescence allowances, Opening balance	kr 2,412	kr 2,555	kr 2,326
Additions, net	1,319	725	1,480
Utilization	(1,210)	(981)	(1,295)
Translation difference	(91)	113	44
Balances regarding acquired/divested businesses	(5)
Inventory obsolescence allowances, Closing balance	kr 2,425	kr 2,412	kr 2,555

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Trade Receivables and Customer Finance - Summary of Trade Receivables and Customer Finance (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of trade receivables and customer finance [abstract]
Trade receivables excluding associated companies and joint ventures	kr 66,487	kr 69,430
Allowances for impairment	(3,335)	(1,403)
Trade receivables, net	63,152	68,027
Trade receivables related to associated companies and joint ventures	58	90
Trade receivables, total	63,210	68,117
Customer finance credits	4,223	5,003
Allowances for impairment	(292)	(250)
Customer finance credits, net	3,931	4,753
Of which current	1,753	2,625
Credit commitments for customer finance	kr 9,706	kr 13,082

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Trade Receivables and Customer Finance - Additional Information (Detail) kr in Millions	12 Months Ended
	Dec. 31, 2017 SEK (kr) RiskRating Customer Facilities Agreement	Dec. 31, 2016 SEK (kr) Agreement
Disclosure Of trade receivables and customer finance [line items]
Number of days sales outstanding	101 days	95 days
Number of risk categories | RiskRating	3
Trade receivables	kr 66,487	kr 69,430
Provisions for expected losses	3,335	1,403
Outstanding exposure related to customer finance	4,223	5,003
Unutilized customer finance commitments	9,706	13,082
Negative impact from effect of risk provisions and reversals for customer finance	59
Positive impact from effect of risk provisions and reversals for customer finance		24
Credit losses	24	108
Repurchase of these assets would amount	380	630
Credit risk [member]
Disclosure Of trade receivables and customer finance [line items]
Trade receivables	66,487	69,430
Provisions for expected losses	kr 3,335	kr 1,403
Number of largest customers | Customer	5
Percentage of amount represented by customer	19.00%	27.00%
Customer finance credits risk [member]
Disclosure Of trade receivables and customer finance [line items]
Outstanding exposure related to customer finance	kr 4,223	kr 5,003
Unutilized customer finance commitments	kr 9,706	kr 13,082
Number of customer finance arrangement guaranteed | Agreement	79	81
Number of largest facilities | Facilities	5
Percentage of risk represented by facilities	64.00%	55.00%

XML

Trade Receivables and Customer Finance - Summary of Movements in Allowances for Impairment (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of trade receivables and customer finance allowance for impairment [line items]
Opening balance	kr 1,403
Closing balance	3,335	kr 1,403
Trade receivables [member]
Disclosure of trade receivables and customer finance allowance for impairment [line items]
Opening balance	1,403	1,202
Additions	3,544	356
Utilized	(1,485)	(156)
Reversal of excess amounts	(48)	(28)
Reclassification	(66)
Translation difference	(13)	29
Closing balance	3,335	1,403
Customer finance [member]
Disclosure of trade receivables and customer finance allowance for impairment [line items]
Opening balance	250	286
Additions	85	78
Utilized	(3)	(108)
Reversal of excess amounts	(27)	(8)
Translation difference	(13)	2
Closing balance	kr 292	kr 250

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Trade Receivables and Customer Finance - Summary of Aging Analysis (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Aging analysis of trade receivables [line items]
Trade receivables, excluding associated companies and joint ventures	kr 66,487	kr 69,430
Allowances for impairment	(3,335)	(1,403)
Customer finance credits	4,223	5,003
Allowances for impairment	(292)	(250)
Neither impaired nor past due [member]
Aging analysis of trade receivables [line items]
Trade receivables, excluding associated companies and joint ventures	56,059	58,198
Customer finance credits	1,841	3,250
Impaired nor past due [member]
Aging analysis of trade receivables [line items]
Trade receivables, excluding associated companies and joint ventures	15	62
Allowances for impairment	(15)	(62)
Customer finance credits	2,029	1,480
Allowances for impairment	(104)	(64)
Past due and impaired less than 90 days [member]
Aging analysis of trade receivables [line items]
Trade receivables, excluding associated companies and joint ventures	220	10
Allowances for impairment	(220)	(10)
Customer finance credits	29	24
Allowances for impairment	(20)	(6)
Past due and impaired more than 90 days [member]
Aging analysis of trade receivables [line items]
Trade receivables, excluding associated companies and joint ventures	3,100	1,331
Allowances for impairment	(3,100)	(1,331)
Customer finance credits	221	236
Allowances for impairment	(168)	(180)
Maturity within 3 months [member]
Aging analysis of trade receivables [line items]
Trade receivables, excluding associated companies and joint ventures	2,924	4,406
Customer finance credits	4	10
Later than three months [member]
Aging analysis of trade receivables [line items]
Trade receivables, excluding associated companies and joint ventures	4,169	5,423
Customer finance credits	kr 99	kr 3

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Trade Receivables and Customer Finance - Summary of Total Outstanding Customer Finance Exposure Per Market Area (Detail)	Dec. 31, 2017	Dec. 31, 2016
Disclosure of outstanding customer finance per market area [line items]
Percentage of outstanding customer finance	100.00%	100.00%
South East Asia, Oceania and India [member]
Disclosure of outstanding customer finance per market area [line items]
Percentage of outstanding customer finance	24.00%	17.00%
North America [member]
Disclosure of outstanding customer finance per market area [line items]
Percentage of outstanding customer finance	7.00%	7.00%
Europe and Latin America [member]
Disclosure of outstanding customer finance per market area [line items]
Percentage of outstanding customer finance	12.00%	19.00%
Middle East and Africa [member]
Disclosure of outstanding customer finance per market area [line items]
Percentage of outstanding customer finance	56.00%	56.00%
Other [member]
Disclosure of outstanding customer finance per market area [line items]
Percentage of outstanding customer finance	1.00%	1.00%

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Trade Receivables and Customer Finance - Summary of Outstanding Customer Finance (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of outstanding customer finance [abstract]
Customer finance credits	kr 4,223	kr 5,003
Financial guarantees for third-parties	77	124
Accrued interest	14	16
Less third-party risk coverage	(505)	(805)
Ericsson's risk exposure, including financial guarantees	kr 3,809	kr 4,338

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Other Current Receivables - Summary of Other Current Receivables (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of other current receivables [line items]
Total other current receivables	kr 22,300	kr 24,431
Prepaid expenses [member]
Disclosure of other current receivables [line items]
Total other current receivables	2,546	4,501
Accrued revenues [member]
Disclosure of other current receivables [line items]
Total other current receivables	1,342	1,584
Advance payments to suppliers [member]
Disclosure of other current receivables [line items]
Total other current receivables	338	1,384
Derivatives with a positive value [member]
Disclosure of other current receivables [line items]
Total other current receivables	1,207	1,108
Taxes [member]
Disclosure of other current receivables [line items]
Total other current receivables	15,291	13,974
Others [member]
Disclosure of other current receivables [line items]
Total other current receivables	kr 1,576	kr 1,880

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Equity and other comprehensive income (loss) - Summary of Capital Stock (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of classes of share capital [line items]
Number of shares	3,334,151,735	3,331,151,735
Capital stock	kr 100,176	kr 140,492	kr 147,366	kr 145,309
Class A shares [member]
Disclosure of classes of share capital [line items]
Number of shares	261,755,983
Class B shares [member]
Disclosure of classes of share capital [line items]
Number of shares	3,072,395,752
Capital stock [member]
Disclosure of classes of share capital [line items]
Capital stock	kr 16,672	kr 16,657	kr 16,526	kr 16,526
Capital stock [member] | Class A shares [member]
Disclosure of classes of share capital [line items]
Capital stock	1,309
Capital stock [member] | Class B shares [member]
Disclosure of classes of share capital [line items]
Capital stock	kr 15,363

XML

Equity and other comprehensive income (loss) - Additional Information (Detail) - kr / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of classes of share capital [line items]
Dividend proposed		kr 1.00	kr 3.70
Major ordinary share transactions [member]
Disclosure of classes of share capital [line items]
Dividend proposed	kr 1.00
Stock Purchase Plan [member]
Disclosure of classes of share capital [line items]
Repurchase of shares		3,000,000
Class A shares [member]
Disclosure of classes of share capital [line items]
Shares quota value		kr 5.00
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 5.00
Voting rights of share holders			One tenth of one vote per share
Treasury shares		50,265,499	62,192,390	49,367,641

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Equity and other comprehensive income (loss) - Summary of Reconciliation of Number of Shares (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of number of shares outstanding [line items]
Number of shares	3,334,151,735	3,331,151,735
Equity	kr 100,176	kr 140,492	kr 147,366	kr 145,309
Capital stock [member]
Reconciliation of number of shares outstanding [line items]
Equity	kr 16,672	kr 16,657	kr 16,526	kr 16,526

XML

Post-Employment Benefits - Additional Information (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of employee benefits [Line Items]
Actuarial losses on defined benefit obligations	kr 2,110	kr 8,255
Actuarial gains development of plan assets	kr 2,438	kr 4,280
Percentage Alecta's of collective funding ratio	154.00%	149.00%
Percentage of company's share of Alecta's saving premiums	0.50%
Percentage of maximum pension liability relation to PRI pensionsgaranti	2.00%
Amount of pledged business mortgage	kr 4,500
Description of terms and conditions of financial assets pledged as collateral for liabilities or contingent liabilities	Contingent liabilities include the Company's mutual responsibility as a credit insured company of PRI Pensionsgaranti in Sweden. This mutual responsibility can only be imposed in the instance that PRI Pensions-garanti has consumed all of its assets, and it amounts to a maximum of 2% of the Company's pension liability in Sweden. The Company has a pledged business mortgage of SEK 2 billion to PRI Pensionsgaranti.
Alecta [member]
Disclosure of employee benefits [Line Items]
Percentage of total share of active members in Alecta	2.00%
Expected contribution to Alectas plan	kr 94
Bottom of range [member]
Disclosure of employee benefits [Line Items]
Percentage of target ratio fair value plan assets	140.00%
Ericsson Pensionsstiftelse [member]
Disclosure of employee benefits [Line Items]
Percentage of defined benefit plans	53.00%	55.00%

XML

Post-Employment Benefits - Summary of Amount Recognized in the Consolidated Balance Sheet (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of defined benefit plans [line items]
Defined benefit obligation (DBO)	kr 87,645	kr 87,175
Fair value of plan assets	64,939	64,485
Deficit/surplus (+/-)	22,706	22,690
Plans with net surplus, excluding asset ceiling1)	2,303	1,033
Provision for post-employment benefits2)	25,009	23,723
Sweden [member]
Disclosure of defined benefit plans [line items]
Defined benefit obligation (DBO)	41,166	38,202
Fair value of plan assets	21,938	20,956
Deficit/surplus (+/-)	19,228	17,246
Provision for post-employment benefits2)	19,228	17,246
US [member]
Disclosure of defined benefit plans [line items]
Defined benefit obligation (DBO)	21,005	22,710
Fair value of plan assets	20,402	21,545
Deficit/surplus (+/-)	603	1,165
Plans with net surplus, excluding asset ceiling1)	83
Provision for post-employment benefits2)	686	1,165
UNITED KINGDOM
Disclosure of defined benefit plans [line items]
Defined benefit obligation (DBO)	13,246	14,088
Fair value of plan assets	14,599	14,061
Deficit/surplus (+/-)	(1,353)	27
Plans with net surplus, excluding asset ceiling1)	1,685	481
Provision for post-employment benefits2)	332	508
Other Countries [member]
Disclosure of defined benefit plans [line items]
Defined benefit obligation (DBO)	12,228	12,175
Fair value of plan assets	8,000	7,923
Deficit/surplus (+/-)	4,228	4,252
Plans with net surplus, excluding asset ceiling1)	535	552
Provision for post-employment benefits2)	kr 4,763	kr 4,804

XML

Post-Employment Benefits - Summary of Amount Recognized in the Consolidated Balance Sheet (Parenthetical) (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of defined benefit plans [abstract]
Movements in effect of asset ceiling	kr 30
Effect of asset ceiling	kr 454	kr 484

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Post-Employment Benefits - Summary of Pension Costs for Defined Contribution Plans and Defined Benefit Plans (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [Line Items]
Pension cost for defined contribution plans	kr 2,970	kr 3,220	kr 3,240
Pension cost for defined benefit plans	2,622	2,114	2,553
Total	kr 5,592	kr 5,334	kr 5,793
Total pension cost expressed as a percentage of wages and salaries	9.50%	8.90%	9.50%
Sweden [member]
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [Line Items]
Pension cost for defined contribution plans	kr 1,096	kr 1,061	kr 1,136
Pension cost for defined benefit plans	1,824	1,314	1,806
Total	2,920	2,375	2,942
US [member]
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [Line Items]
Pension cost for defined contribution plans	473	687	729
Pension cost for defined benefit plans	168	167	81
Total	641	854	810
UNITED KINGDOM
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [Line Items]
Pension cost for defined contribution plans	173	185	136
Pension cost for defined benefit plans	38	38	57
Total	211	223	193
Other Countries [member]
Disclosure Of Defined Benefit Plans Expense Recognized In Income Statement [Line Items]
Pension cost for defined contribution plans	1,228	1,287	1,239
Pension cost for defined benefit plans	592	595	609
Total	kr 1,820	kr 1,882	kr 1,848

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Post-Employment Benefits - Summary of Change in the Net Defined Benefit Obligation (Detail) kr in Millions	12 Months Ended
	Dec. 31, 2017 SEK (kr) yr	Dec. 31, 2016 SEK (kr)
Disclosure of net defined benefit liability (asset) [line items]
Opening balance	kr 22,690	kr 19,963
Included in the income statement
Current service cost	1,793	1,853
Past service cost and gains and losses on settlements	296	(182)
Interest cost/income (+/-)	306	275
Taxes and administrative expenses	188	102
Other	(11)	(14)
Components of defined benefit cost recognized	2,572	2,034
Remeasurements
Return on plan assets excluding amounts in interest expense/income	(2,438)	(4,280)
Actuarial gains/losses (-/+) arising from changes in demographic assumptions	(396)	(405)
Actuarial gains/losses (-/+) arising from changes in financial assumptions	2,110	8,255
Experience-based gains/losses (-/+)	(219)	(1,550)
Total remeasurements	(943)	2,020
Translation difference	(12)	168
Contributions and payments from:
Employers1)	(1,463)	(1,464)
Plan participants	4	6
Settlements	(141)
Business combinations and divestments		(37)
Closing balance	kr 22,706	22,690
Weighted average duration of DBO | yr	20.1
Asset ceiling excluded from defined benefit cost recognized in income statement	kr 50	80
2018 [member]
Contributions and payments from:
Expected contribution to plans	1,364
Present value of defined benefit obligation [member]
Disclosure of net defined benefit liability (asset) [line items]
Opening balance	87,175	78,141
Reclassification		104
Included in the income statement
Current service cost	1,793	1,853
Past service cost and gains and losses on settlements	296	(182)
Interest cost/income (+/-)	2,198	2,451
Taxes and administrative expenses	143	53
Other	(13)	(16)
Components of defined benefit cost recognized	4,417	4,159
Remeasurements
Actuarial gains/losses (-/+) arising from changes in demographic assumptions	(396)	(405)
Actuarial gains/losses (-/+) arising from changes in financial assumptions	2,110	8,255
Experience-based gains/losses (-/+)	(219)	(1,550)
Total remeasurements	1,495	6,300
Translation difference	(2,275)	1,002
Contributions and payments from:
Employers1)	(880)	(902)
Plan participants	27	28
Benefit payments	(2,173)	(1,568)
Settlements	(141)
Business combinations and divestments		(89)
Closing balance	87,645	87,175
Plan assets [member]
Disclosure of net defined benefit liability (asset) [line items]
Opening balance	(64,485)	(58,178)
Reclassification		(104)
Included in the income statement
Interest cost/income (+/-)	(1,892)	(2,176)
Taxes and administrative expenses	45	49
Other	2	2
Components of defined benefit cost recognized	(1,845)	(2,125)
Remeasurements
Return on plan assets excluding amounts in interest expense/income	(2,438)	(4,280)
Total remeasurements	(2,438)	(4,280)
Translation difference	2,262	(834)
Contributions and payments from:
Employers1)	(583)	(562)
Plan participants	(23)	(22)
Benefit payments	2,173	1,568
Business combinations and divestments		52
Closing balance	kr (64,939)	kr (64,485)

XML

Post-Employment Benefits - Summary of Present Value of the Defined Benefit Obligation (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	kr 87,645	kr 87,175
Partially or fully funded [member]
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	83,695	83,084
Unfunded [member]
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	3,950	4,091
Sweden [member]
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	41,166	38,202
Sweden [member] | Partially or fully funded [member]
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	40,665	37,679
Sweden [member] | Unfunded [member]
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	501	523
US [member]
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	21,005	22,710
US [member] | Partially or fully funded [member]
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	20,319	21,956
US [member] | Unfunded [member]
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	686	754
UNITED KINGDOM
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	13,246	14,088
UNITED KINGDOM | Partially or fully funded [member]
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	13,246	14,088
Other Countries [member]
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	12,228	12,175
Other Countries [member] | Partially or fully funded [member]
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	9,465	9,361
Other Countries [member] | Unfunded [member]
Changes In Present Value Of Defined Benefit Obligations [Line Items]
Defined benefit obligation (DBO)	kr 2,763	kr 2,814

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Post-Employment Benefits - Summary of Asset Allocation by Asset Type and Geography (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value of plan assets [line items]
Cash and cash equivalents	kr 4,428	kr 3,026
Equity securities	10,422	8,870
Debt securities	39,138	40,975
Real estate	4,725	4,423
Investment funds	3,649	4,251
Assets held by insurance company	1,200	1,125
Other	1,377	1,815
Fair value of plan assets	kr 64,939	kr 64,485
Investment funds [member]
Disclosure of fair value of plan assets [line items]
Percentage Of plan assets allocation of which unquoted	66.00%	65.00%
Real estate occupied [member]
Disclosure of fair value of plan assets [line items]
Fair value of plan assets	kr 0	kr 0
Securitites issued [member]
Disclosure of fair value of plan assets [line items]
Fair value of plan assets	0	0
Sweden [member]
Disclosure of fair value of plan assets [line items]
Cash and cash equivalents	3,124	1,819
Equity securities	4,079	3,983
Debt securities	8,663	8,791
Real estate	4,269	4,093
Investment funds	1,803	2,270
Fair value of plan assets	21,938	20,956
Sweden [member] | Real estate occupied [member]
Disclosure of fair value of plan assets [line items]
Fair value of plan assets	0	0
Sweden [member] | Securitites issued [member]
Disclosure of fair value of plan assets [line items]
Fair value of plan assets	0	0
US [member]
Disclosure of fair value of plan assets [line items]
Cash and cash equivalents	382	414
Equity securities	795	692
Debt securities	17,650	18,286
Investment funds	1,478	1,505
Other	97	648
Fair value of plan assets	20,402	21,545
US [member] | Real estate occupied [member]
Disclosure of fair value of plan assets [line items]
Fair value of plan assets	0	0
US [member] | Securitites issued [member]
Disclosure of fair value of plan assets [line items]
Fair value of plan assets	0	0
UNITED KINGDOM
Disclosure of fair value of plan assets [line items]
Cash and cash equivalents	834	420
Equity securities	3,116	2,526
Debt securities	9,331	10,010
Real estate	244	132
Investment funds	160	270
Other	914	703
Fair value of plan assets	14,599	14,061
UNITED KINGDOM | Real estate occupied [member]
Disclosure of fair value of plan assets [line items]
Fair value of plan assets	0	0
UNITED KINGDOM | Securitites issued [member]
Disclosure of fair value of plan assets [line items]
Fair value of plan assets	0	0
Other Countries [member]
Disclosure of fair value of plan assets [line items]
Cash and cash equivalents	88	373
Equity securities	2,432	1,669
Debt securities	3,494	3,888
Real estate	212	198
Investment funds	208	206
Assets held by insurance company	1,200	1,125
Other	366	464
Fair value of plan assets	8,000	7,923
Other Countries [member] | Real estate occupied [member]
Disclosure of fair value of plan assets [line items]
Fair value of plan assets	0	0
Other Countries [member] | Securitites issued [member]
Disclosure of fair value of plan assets [line items]
Fair value of plan assets	kr 0	kr 0
Cash and cash equivalents [Member]
Disclosure of fair value of plan assets [line items]
Percentage Of plan assets allocation of which unquoted	0.00%	14.00%
Equity securities [Member]
Disclosure of fair value of plan assets [line items]
Percentage Of plan assets allocation of which unquoted	16.00%	19.00%
Debt securities [member]
Disclosure of fair value of plan assets [line items]
Percentage Of plan assets allocation of which unquoted	68.00%	70.00%
Real estate [member]
Disclosure of fair value of plan assets [line items]
Percentage Of plan assets allocation of which unquoted	100.00%	100.00%
Assets held by insurance company [member]
Disclosure of fair value of plan assets [line items]
Percentage Of plan assets allocation of which unquoted	100.00%	100.00%
Other [Member]
Disclosure of fair value of plan assets [line items]
Percentage Of plan assets allocation of which unquoted	41.00%	69.00%

XML

Post-Employment Benefits - Summary of Financial and Demographic Actuarial Assumptions (Detail) - yr	Dec. 31, 2017	Dec. 31, 2016
Financial assumptions
Discount rate, weighted average of Total	2.50%	2.80%
Demographic assumptions
Life expectancy after age 65 in years, weighted average	23	23
Sweden [member]
Financial assumptions
Discount rate, weighted average of Total	1.60%	1.80%
US [member]
Financial assumptions
Discount rate, weighted average of Total	3.70%	4.10%
UNITED KINGDOM
Financial assumptions
Discount rate, weighted average of Total	2.60%	2.70%

XML

Post-employment Benefits - Summary of Total Remeasurements in Other Comprehensive Income (Loss) Related to Post-Employment Benefits (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Remeasurement of Other Comprehensive Income Loss Related to Post Employment Benefits [abstract]
Actuarial gains and losses (+/-)	kr 1,210	kr (1,955)
The effect of asset ceiling	27	254
Swedish special payroll taxes 1)	(267)	(65)
Total	kr 970	kr (1,766)	kr (2,026)

XML

Post-Employment Benefits - Summary of Sensitivity Analysis of Significant Actuarial Assumptions (Detail) - Present value of defined benefit obligation [member] - SEK (kr) kr in Billions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Discount rate, weighted average of Total +0.5%	kr (8.1)	kr (8.3)
Discount rate, weighted average of Total -0.5%	9.3	9.4
Sweden [member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Discount rate, weighted average of Total +0.5%	(4.5)	(4.3)
Discount rate, weighted average of Total -0.5%	5.2	5.0
US [member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Discount rate, weighted average of Total +0.5%	(1.1)	(1.3)
Discount rate, weighted average of Total -0.5%	1.2	1.3
UNITED KINGDOM
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Discount rate, weighted average of Total +0.5%	(1.5)	(1.7)
Discount rate, weighted average of Total -0.5%	kr 1.8	kr 1.9

XML

Provisions - Summary of Provisions (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Changes In Provisions [Line Items]
Opening balance	kr 6,357	kr 3,838
Additions	12,479	6,346
Reversal of excess amounts	(362)	(689)
Negative effect on Income statement	12,117	5,657
Utilization/Cash out	(8,221)	(3,153)
Reclassifications	(113)	(8)
Translation difference	(194)	23
Closing balance	9,946	6,357
Restructuring [member]
Disclosure Of Changes In Provisions [Line Items]
Opening balance	4,163	1,466
Additions	5,448	5,271
Reversal of excess amounts	(207)	(130)
Utilization/Cash out	(5,327)	(2,440)
Reclassifications	1	1
Translation difference	(35)	(5)
Closing balance	4,043	4,163
Customer Related Provision [member]
Disclosure Of Changes In Provisions [Line Items]
Opening balance	74	92
Additions	4,105	51
Reversal of excess amounts	0	(6)
Utilization/Cash out	(1,532)	(64)
Reclassifications	(10)	(3)
Translation difference	5	4
Closing balance	2,642	74
Suppliers Related Provision [member]
Disclosure Of Changes In Provisions [Line Items]
Opening balance	134	182
Additions	1,885	82
Reversal of excess amounts	(90)	(69)
Utilization/Cash out	(262)	(64)
Reclassifications	(50)
Translation difference	(4)	3
Closing balance	1,613	134
Warranty [member]
Disclosure Of Changes In Provisions [Line Items]
Opening balance	248	528
Additions	242	267
Reversal of excess amounts	(2)	(207)
Utilization/Cash out	(267)	(365)
Reclassifications	5	9
Translation difference	(1)	16
Closing balance	225	248
Other [member]
Disclosure Of Changes In Provisions [Line Items]
Opening balance	1,738	1,570
Additions	799	675
Reversal of excess amounts	(63)	(277)
Utilization/Cash out	(833)	(220)
Reclassifications	(59)	(15)
Translation difference	(159)	5
Closing balance	kr 1,423	kr 1,738

XML

Provisions - Additional Information (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Provisions [Line Items]
Additional provisions	kr 12,479	kr 6,346
Reversal of excess amounts	(362)	(689)
Actual cash outlays	(8,221)	(3,153)
Estimated cash outlays	(4,400)
Non-current provisions	3,596	946
Total provisions	9,946	6,357	kr 3,838
Suppliers Related Provision [member]
Disclosure of Provisions [Line Items]
Additional provisions	1,885	82
Reversal of excess amounts	(90)	(69)
Actual cash outlays	(262)	(64)
Estimated cash outlays	(100)
Total provisions	1,613	134	182
Restructuring [member]
Disclosure of Provisions [Line Items]
Additional provisions	5,448	5,271
Reversal of excess amounts	(207)	(130)
Actual cash outlays	(5,327)	(2,440)
Estimated cash outlays	(3,200)
Total provisions	4,043	4,163	1,466
Customer Related Provision [member]
Disclosure of Provisions [Line Items]
Additional provisions	4,105	51
Reversal of excess amounts	0	(6)
Actual cash outlays	(1,532)	(64)
Total provisions	2,642	74	92
Customer Related Provision [member] | Additional project costs and customer settlements [member]
Disclosure of Provisions [Line Items]
Additional provisions	4,105
Warranty [member]
Disclosure of Provisions [Line Items]
Additional provisions	242	267
Reversal of excess amounts	(2)	(207)
Actual cash outlays	(267)	(365)
Estimated cash outlays	(100)
Total provisions	225	248	528
Other [member]
Disclosure of Provisions [Line Items]
Additional provisions	799	675
Reversal of excess amounts	(63)	(277)
Actual cash outlays	(833)	(220)
Estimated cash outlays	(1,000)
Total provisions	1,423	kr 1,738	kr 1,570
2018 [member]
Disclosure of Provisions [Line Items]
Estimated cash outlays	(6,000)
2018 [member] | Suppliers Related Provision [member]
Disclosure of Provisions [Line Items]
Estimated cash outlays	(200)
2018 [member] | Restructuring [member]
Disclosure of Provisions [Line Items]
Estimated cash outlays	(3,000)
2018 [member] | Customer Related Provision [member]
Disclosure of Provisions [Line Items]
Estimated cash outlays	(1,900)
2018 [member] | Warranty [member]
Disclosure of Provisions [Line Items]
Estimated cash outlays	(200)
2018 [member] | Other [member]
Disclosure of Provisions [Line Items]
Estimated cash outlays	kr (700)

XML

Interest-Bearing Liabilities - Summary of Interest-Bearing Liabilities (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Borrowings, current
Current part of non-currentborrowings1)	kr 89	kr 4,954
Other borrowings, current	2,456	3,079
Total borrowings, current	2,545	8,033
Borrowings, non-current
Notes and bond loans	20,560	10,556
Other borrowings, non-current	9,940	8,097
Total borrowings, non-current	30,500	18,653
Total interest-bearing liabilities	kr 33,045	kr 26,686

XML

Interest-Bearing Liabilities - Summary of Interest-Bearing Liabilities (Parenthetical) (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Borrowings [Abstract]
Notes and bond loans	kr 0	kr 4,900

XML

Interest-bearing Liabilities - Additional Information (Detail) € in Millions, kr in Millions, $ in Millions	1 Months Ended	12 Months Ended
	Jun. 30, 2017 EUR (€)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 SEK (kr)	Dec. 31, 2016 SEK (kr)	Dec. 31, 2015 SEK (kr)	Dec. 31, 2017 SEK (kr)	Apr. 30, 2017 USD ($)	Feb. 28, 2017 EUR (€)
Disclosure Of Interest Bearing Liabilities [Line Items]
Weighted average interest rate cost for long-term funding		1.68%	1.68%	2.76%
Multi-currency revolving credit facility							$ 2,000
Borrowings | kr				kr 26,686		kr 33,045
Maturity date		Credit agreements mature in 2023 and 2025	Credit agreements mature in 2023 and 2025
Repayment of borrowings | kr			kr 4,830	kr 1,072	kr 1,336
Nordic Investment Bank [member]
Disclosure Of Interest Bearing Liabilities [Line Items]
Borrowings		$ 220
AB Svensk Exportkredit [member]
Disclosure Of Interest Bearing Liabilities [Line Items]
Borrowings		150
Mature in two thousand nineteen [member]
Disclosure Of Interest Bearing Liabilities [Line Items]
Repayment of borrowings		$ 98
Bond issued in two thousand seven [member]
Disclosure Of Interest Bearing Liabilities [Line Items]
Repayment of borrowings | €	€ 500
Bonds with 0.875% interest maturing 2021 [member]
Disclosure Of Interest Bearing Liabilities [Line Items]
Bonds issued | €								€ 500
Bonds with 1.875% interest maturing 2024 [member]
Disclosure Of Interest Bearing Liabilities [Line Items]
Bonds issued | €								€ 500

XML

Interest-bearing Liabilities - Summary of Notes, Bonds, Bilateral Loans and Committed Credit (Detail) - 12 months ended Dec. 31, 2017 € in Millions, kr in Millions, $ in Millions	SEK (kr)	EUR (€)	USD ($)	SEK (kr)
Disclosure of Borrowings [Line Items]
Maturity date	Credit agreements mature in 2023 and 2025
June Five Two Thousand Twenty Two [Member]
Disclosure of Borrowings [Line Items]
Nominal amount | $			$ 2,000
Currency	USD
Maturity date	June 5, 2022
Notes and bond loans [Member]
Disclosure of Borrowings [Line Items]
Book value				kr 20,560
Market value	kr 20,813
Unrealized hedge gain/loss (included in book value)	kr 9
Notes and bond loans [Member] | December 23, 2020 [Member]
Disclosure of Borrowings [Line Items]
Nominal amount | $			170
Currency	USD
Book value				kr 1,394
Market value	kr 1,488
Maturity date	December 23, 2020
Notes and bond loans [Member] | May 15, 2022 [Member]
Disclosure of Borrowings [Line Items]
Nominal amount | $			$ 1,000
Coupon		4.125%	4.125%	4.125%
Currency	USD
Book value				kr 8,180
Market value	kr 8,223
Maturity date	May 15, 2022
Unrealized hedge gain/loss (included in book value)	kr 9
Notes and bond loans [Member] | March One Two Thousand Twenty One [Member]
Disclosure of Borrowings [Line Items]
Nominal amount | €		€ 500
Coupon		0.875%	0.875%	0.875%
Currency	EUR
Book value				kr 4,897
Market value	kr 4,846
Maturity date	March 1, 2021
Unrealized hedge gain/loss (included in book value)	kr 7
Notes and bond loans [Member] | March one two thousand twenty four [member]
Disclosure of Borrowings [Line Items]
Nominal amount | €		€ 500
Coupon		1.875%	1.875%	1.875%
Currency	EUR
Book value				kr 4,862
Market value	kr 4,824
Maturity date	March 1, 2024
Unrealized hedge gain/loss (included in book value)	kr (7)
Notes and bond loans [Member] | December Twenty Two Two Thousand Twenty Five [Member]
Disclosure of Borrowings [Line Items]
Nominal amount | $			$ 150
Currency	USD
Book value				1,227
Market value	kr 1,432
Maturity date	December 22, 2025
Bilateral loans [Member]
Disclosure of Borrowings [Line Items]
Book value				8,211
Market value	kr 8,526
Bilateral loans [Member] | September 30, 2021 [Member]
Disclosure of Borrowings [Line Items]
Nominal amount | $			98
Currency	USD
Book value				805
Market value	kr 830
Maturity date	September 30, 2021
Bilateral loans [Member] | November 6, 2020 [Member]
Disclosure of Borrowings [Line Items]
Nominal amount | $			684
Currency	USD
Book value				5,609
Market value	kr 5,724
Maturity date	November 6, 2020
Bilateral loans [Member] | June Fifteen Two Thousand Twenty Three [Member]
Disclosure of Borrowings [Line Items]
Nominal amount | $			$ 220
Currency	USD
Book value				kr 1,797
Market value	kr 1,972
Maturity date	June 15, 2023

XML

Financial Risk Management and Financial Instruments - Additional Information (Detail) - SEK (kr)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Financial Risk Management [Line Items]
Percentage of equity ratio above	40.00%
Percentage of cash conversion rate above	70.00%
Percentage of Currency Hedged	84.00%
Cash position	kr 34,700,000,000	kr 31,200,000,000
Cash, cash equivalents and interest-bearing securities	67,700,000,000	57,900,000,000
Interest-bearing liabilities	33,045,000,000	26,686,000,000
Maximum foreign exchange positions	kr 45,000,000
Percentage of risk at confidence level	99.00%
Description of Sensitivity analysis	The Company uses the VaR methodology to measure foreign exchange and interest rate risks in portfolios managed by the treasury function. This statistical method expresses the maximum potential loss that can arise with a certain degree of probability during a certain period of time. For the VaR measurement, the Company has chosen a probability level of 99% and a 1-day time horizon.
Percentage of probability level	99.00%
Average of value at risk calculated	kr 17,200,000	16,300,000
Financial investments	kr 1,125,000,000
Sweden, Kronor [member]
Disclosure of Financial Risk Management [Line Items]
SEK exchange rate	0.25 SEK/USD
Exchange rate would impact profit and loss	kr 100,000,000
Realization and revaluation of loans amount	500,000,000
Realization and revaluation of derivative contracts amounts	0
Level 3 of fair value hierarchy [member]
Disclosure of Financial Risk Management [Line Items]
Financial investments	2,100,000,000	2,100,000,000
ISDA agreements [member]
Disclosure of Financial Risk Management [Line Items]
Assets	1,400,000,000	1,200,000,000
Offsetting financial assets	100,000,000	100,000,000
Net asset	1,300,000,000	1,100,000,000
Liabilities	1,000,000,000	900,000,000
Offsetting financial liabilities	100,000,000	100,000,000
Net liabilities	900,000,000	800,000,000
Longer than one year [member]
Disclosure of Financial Risk Management [Line Items]
Interest-bearing securities, current	kr 5,000,000,000
Moody's [member]
Disclosure of Financial Risk Management [Line Items]
Description of rating agencies used	In October 2017, Moody's announced that they have downgraded the senior unsecured debt ratings to Ba2 from Ba1 and the MTN program rating to Ba2 from Ba1. At the same time, the agency placed the company's Ba2/Ba2 ratings on review for further downgrade.
Standard & Poor's [member]
Disclosure of Financial Risk Management [Line Items]
Description of rating agencies used	In March 2017, Standard & Poor's (S&P) announced that they had downgraded the long-term corporate credit rating on Ericsson to BBB- from BBB, with a negative outlook.
Derivatives [member]
Disclosure of Financial Risk Management [Line Items]
Credit exposure	kr 1,300,000,000	1,100,000,000
OTC derivatives [member] | Level 2 [member]
Disclosure of Financial Risk Management [Line Items]
Assets	1,400,000,000	1,200,000,000
Liabilities	kr 1,100,000,000	kr 900,000,000
Exchange rate risk [member]
Disclosure of Financial Risk Management [Line Items]
Description of objectives, policies and processes for managing risk	In order to limit the exposure toward exchange rate fluctuations on future revenues and costs, committed and forecasted future sales and purchases in major currencies are hedged with 7% of 12-month forecast monthly. By this, the Company will have hedged 84% of the next month and 7% of the 12th month of an average forecast of the individual month at any given reporting date. This corresponds to approximately 5-6 months of an average forecast.
Interest rate risk [member]
Disclosure of Financial Risk Management [Line Items]
Description of objectives, policies and processes for managing risk	The Company manages the interest rate risk by matching fixed and floating interest rates in interest-bearing balance sheet items. The policy is that the net sensitivity on a 1 basis point move on interest-bearing assets matching interest-bearing liabilities, taking derivatives into consideration, is less than SEK 10 million.
One basis point movement [member]
Disclosure of Financial Risk Management [Line Items]
Average exposure to interest rate risk	kr 2,100,000
Bottom of range [member]
Disclosure of Financial Risk Management [Line Items]
Average forecast hedged period	5 months
Top of range [member]
Disclosure of Financial Risk Management [Line Items]
Average forecast hedged period	6 months
Top of range [member] | One basis point movement [member]
Disclosure of Financial Risk Management [Line Items]
Derivative financial liabilities	kr 10,000,000

XML

Financial Risk Management and Financial Instruments - Schedule of Capital objectives-related Information (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure Of Capital Objectives Related Information [Line Items]
Capital	kr 100,176	kr 140,492	kr 147,366	kr 145,309
Equity ratio	38.00%	50.00%
Cash conversion	(58.00%)	175.00%
Positive net cash	kr 34,700	kr 31,200
Post-employment benefits	kr 25,009	kr 23,723
Moodys [member]
Disclosure Of Capital Objectives Related Information [Line Items]
Moody's	Ba2, negative	Baa3, negative
Standard and Poor's [member]
Disclosure Of Capital Objectives Related Information [Line Items]
Moody's	BB+, stable	BBB, negative

XML

Financial Risk Management and Financial Instruments - Summary of Net Exposure for Largest Currencies Impact on Sales (Detail) kr in Billions	12 Months Ended
	Dec. 31, 2017 SEK (kr)
USD [member]
Disclosure of Currency Exposure [Line Items]
Sales transaction exposure	kr 52.4
Sales translation exposure	37.2
Sales net exposure	89.6
Incurred cost transaction exposure 1)	(15.3)
Net transaction exposure	21.9
EUR [member]
Disclosure of Currency Exposure [Line Items]
Sales transaction exposure	24.6
Sales translation exposure	13.2
Sales net exposure	37.8
Incurred cost transaction exposure 1)	(8.4)
Net transaction exposure	4.8
CNY [member]
Disclosure of Currency Exposure [Line Items]
Sales transaction exposure	13.1
Sales translation exposure	(0.2)
Sales net exposure	12.9
Incurred cost transaction exposure 1)	(6.2)
Net transaction exposure	(6.4)
INR [member]
Disclosure of Currency Exposure [Line Items]
Sales transaction exposure	9.4
Sales translation exposure	0.0
Sales net exposure	9.4
Incurred cost transaction exposure 1)	(1.6)
Net transaction exposure	(1.6)
JPY [member]
Disclosure of Currency Exposure [Line Items]
Sales transaction exposure	7.1
Sales translation exposure	0.0
Sales net exposure	7.1
Incurred cost transaction exposure 1)	4.6
Net transaction exposure	4.6
AUD [member]
Disclosure of Currency Exposure [Line Items]
Sales transaction exposure	7.1
Sales translation exposure	(0.3)
Sales net exposure	6.8
Incurred cost transaction exposure 1)	3.3
Net transaction exposure	3.0
BRL [member]
Disclosure of Currency Exposure [Line Items]
Sales transaction exposure	5.7
Sales translation exposure	0.0
Sales net exposure	5.7
Incurred cost transaction exposure 1)	0.7
Net transaction exposure	0.7
SAR [member]
Disclosure of Currency Exposure [Line Items]
Sales transaction exposure	5.1
Sales translation exposure	0.1
Sales net exposure	5.2
Incurred cost transaction exposure 1)	2.3
Net transaction exposure	2.4
GBP [member]
Disclosure of Currency Exposure [Line Items]
Sales transaction exposure	5.6
Sales translation exposure	(0.9)
Sales net exposure	4.7
Incurred cost transaction exposure 1)	0.8
Net transaction exposure	kr (0.1)

XML

Financial Risk Management and Financial Instruments - Summary of Sensitivity to Interest Rate Increase of One Basis Point (Detail) kr in Millions	12 Months Ended
	Dec. 31, 2017 SEK (kr)
Disclosure of Financial Risk Management [Line Items]
Derivatives	kr (3)
Interest Bearing Assets [Member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	(8)
Interest bearing liabilities [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	9
Derivatives [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	(4)
Later than three months [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	0
Later than three months [member] | Interest Bearing Assets [Member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	0
Later than three months [member] | Interest bearing liabilities [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	0
Later than three months [member] | Derivatives [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	0
Maturity between 3 and 12 months [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	1
Maturity between 3 and 12 months [member] | Interest Bearing Assets [Member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	0
Maturity between 3 and 12 months [member] | Interest bearing liabilities [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	0
Maturity between 3 and 12 months [member] | Derivatives [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	1
Maturity between 1 and 3 years [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	(3)
Maturity between 1 and 3 years [member] | Interest Bearing Assets [Member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	(3)
Maturity between 1 and 3 years [member] | Interest bearing liabilities [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	0
Maturity between 1 and 3 years [member] | Derivatives [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	0
Maturity between 3 and 5 years [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	(2)
Maturity between 3 and 5 years [member] | Interest Bearing Assets [Member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	(4)
Maturity between 3 and 5 years [member] | Interest bearing liabilities [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	6
Maturity between 3 and 5 years [member] | Derivatives [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	(4)
2023 or later [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	1
2023 or later [member] | Interest Bearing Assets [Member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	(1)
2023 or later [member] | Interest bearing liabilities [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	3
2023 or later [member] | Derivatives [member]
Disclosure of Financial Risk Management [Line Items]
Derivatives	kr (1)

XML

Financial Risk Management and Financial Instruments - Disclosure of Detailed Information about Currency Derivatives (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about currency and interest rate derivatives [line items]
Asset	kr 1,125
Liability	689
Fair value hedges [member]
Disclosure of detailed information about currency and interest rate derivatives [line items]
Asset	44	kr 120
Currency Derivatives [member]
Disclosure of detailed information about currency and interest rate derivatives [line items]
Asset		613
Liability		330
Currency Derivatives [member] | Maturity within 3 months [member]
Disclosure of detailed information about currency and interest rate derivatives [line items]
Asset	130	351
Liability	542	193
Currency Derivatives [member] | Maturity between 3 and 12 months [member]
Disclosure of detailed information about currency and interest rate derivatives [line items]
Asset	215	262
Liability	147	137
Currency Derivatives [member] | Maturity between 1 and 3 years [member]
Disclosure of detailed information about currency and interest rate derivatives [line items]
Asset	25
Currency Derivatives [member] | Maturity between 3 and 5 years [member]
Disclosure of detailed information about currency and interest rate derivatives [line items]
Asset	754
Interest rate derivatives [Member]
Disclosure of detailed information about currency and interest rate derivatives [line items]
Asset	168	495
Liability	237	409
Interest rate derivatives [Member] | Maturity within 3 months [member]
Disclosure of detailed information about currency and interest rate derivatives [line items]
Asset	10
Liability	35
Interest rate derivatives [Member] | Maturity between 3 and 12 months [member]
Disclosure of detailed information about currency and interest rate derivatives [line items]
Asset	1	239
Liability		82
Interest rate derivatives [Member] | Maturity between 1 and 3 years [member]
Disclosure of detailed information about currency and interest rate derivatives [line items]
Asset	34	191
Liability	105	205
Interest rate derivatives [Member] | Maturity between 3 and 5 years [member]
Disclosure of detailed information about currency and interest rate derivatives [line items]
Asset	83
Liability	54	6
Interest rate derivatives [Member] | 2023 or later [member]
Disclosure of detailed information about currency and interest rate derivatives [line items]
Asset	39	65
Liability	kr 43	kr 116

XML

Financial Risk Management and Financial Instruments - Disclosure of Detailed Information about Currency Derivatives (Parenthetical) (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Derivatives [member]
Disclosure of detailed information about currency and interest rate derivatives [line items]
Non-current assets	kr 86	kr 0

XML

Financial Risk Management and Financial Instruments - Summary of Cash, Cash Equivalents and Interest-Bearing Securities (Detail) - SEK (kr) kr in Billions	Dec. 31, 2016	Dec. 31, 2007
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items]
Banks		kr 26.9
Type of issuer/counterpart Governments		22.8
Corporates		0.3
Mortgage institutes		17.7
2016	kr 57.9	67.7
Maturity within 3 months [member]
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items]
Banks		26.4
Type of issuer/counterpart Governments		9.5
Corporates		0.3
Mortgage institutes		0.2
2016	37.0	36.4
Maturity between 3 and 12 months [member]
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items]
Banks		0.2
Type of issuer/counterpart Governments		1.0
Corporates		0.0
Mortgage institutes		0.0
2016	1.3	1.2
Later than one year and not later than five years [member]
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items]
Banks		0.2
Type of issuer/counterpart Governments		11.5
Corporates		0.0
Mortgage institutes		16.7
2016	19.3	28.4
2023 or later [member]
Disclosure of Cash and Cash Equivalents and Interest Bearing Securities [Line Items]
Banks		0.1
Type of issuer/counterpart Governments		0.8
Corporates		0.0
Mortgage institutes		0.8
2016	kr 0.3	kr 1.7

XML

Financial Risk Management and Financial Instruments - Summary of Funding Programs (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Euro Medium Term Note Program [member]
Disclosure of Funding Programs [Line Items]
Amount	$ 5,000
Utilized	1,519
Unutilized	3,481
S E C Registered Program [member]
Disclosure of Funding Programs [Line Items]
Utilized	$ 1,000

XML

Financial Risk Management and Financial Instruments - Summary of Financial Instruments (Detail) - SEK (kr) kr in Billions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about financial instruments [line items]
Assets at fair value through profit or loss	kr 21.6	kr 23.5
Loans and receivables	75.6	78.9
Available-for-sale	26.7	8.8
Financial liabilities at amortized cost	(59.3)	(52.0)
Total	64.6	kr 59.2
Customer finance [member]
Disclosure of detailed information about financial instruments [line items]
Loans and receivables	3.9
Total	3.9
Trade receivables [member]
Disclosure of detailed information about financial instruments [line items]
Loans and receivables	63.2
Total	63.2
Interest bearing securities, non-current [member]
Disclosure of detailed information about financial instruments [line items]
Assets at fair value through profit or loss	6.1
Loans and receivables	0.3
Available-for-sale	25.4
Total	31.8
Cash equivalents [member]
Disclosure of detailed information about financial instruments [line items]
Assets at fair value through profit or loss	14.3
Loans and receivables	3.2
Total	17.5
Borrowings [member]
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost	(33.0)
Total	(33.0)
Trade payables [member]
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost	(26.3)
Total	(26.3)
Other financial assets [member]
Disclosure of detailed information about financial instruments [line items]
Assets at fair value through profit or loss	0.9
Loans and receivables	5.0
Available-for-sale	1.3
Total	7.2
Other Current Receivables [member]
Disclosure of detailed information about financial instruments [line items]
Assets at fair value through profit or loss	1.2
Total	1.2
Other current liabilities [member]
Disclosure of detailed information about financial instruments [line items]
Assets at fair value through profit or loss	(0.9)
Total	kr (0.9)

XML

Other Current Liabilities - Summary of Other Current Liabilities (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Other Current Liabilities [line items]
Advances from customers	kr 6,955	kr 5,391
Accrued interest	383	367
Accrued expenses	29,196	30,716
Deferred revenues	20,110	13,990
Derivatives with a negative value	926	739
Other	62,370	56,003
Total	62,370	56,003
Of which employee-related [member]
Disclosure of Other Current Liabilities [line items]
Accrued expenses	8,935	9,414
Of which supplier-related [member]
Disclosure of Other Current Liabilities [line items]
Accrued expenses	10,491	13,003
Of which other [member]
Disclosure of Other Current Liabilities [line items]
Accrued expenses	9,770	8,299
Other [member]
Disclosure of Other Current Liabilities [line items]
Other	kr 4,800	kr 4,800

XML

Trade Payables - Summary of Trade Payables (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Trade and other payables [abstract]
Trade payables to associated companies and joint ventures	kr 286	kr 296
Trade payables, excluding associated companies and joint ventures	26,035	25,022
Total	kr 26,321	kr 25,318

XML

Assets Pledged as Collateral - Schedule of Detailed Information of Assets Pledged as Collateral (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure assets pledged as collateral [abstract]
Chattel mortgages	kr 4,740	kr 2,240
Bank deposits	475	344
Total	kr 5,215	kr 2,584

XML

Contingent liabilities - Summary of Contingent Liabilities (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of contingent liabilities [abstract]
Contingent liabilities	kr 1,561	kr 1,186
Total	kr 1,561	kr 1,186

XML

Contingent Liabilities - Additional Information (Detail) - Guarantees [member] - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Contingent Liabilities [Line Items]
Guarantees of loans to other companies	kr 24	kr 24
Guarantee issued in performance of a third party	0	33
Financial guarantee for third parties	kr 80	kr 124

XML

Statement of Cash Flows - Additional Information (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Cash Flow Statement [line items]
Interest paid	kr (794)	kr (1,269)	kr (926)
Interest received	1	110	550
Taxes paid, including withholding tax	(4,724)	(9,105)	(7,705)
Cash and cash equivalents include cash	18,403	25,577
Temporary investments	17,481	11,389
Cash and cash equivalents	3,100	4,200
Financing cash flow	5,478	kr (11,742)	kr (10,710)
Derivatives designated as hedges [member]
Disclosure of Cash Flow Statement [line items]
Financing cash flow	kr 201

XML

Statement of Cash Flows - Summary of Adjustments to Reconcile Net Income to Cash (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of adjustments to reconcile net income to cash [line items]
Depreciation	kr 4,103	kr 4,421	kr 4,705
Impairment losses/reversals of impairments	2,211	148	(16)
Amortization	4,348	4,465	5,518
Goodwill	12,966
Total impairments	17,230	85	20
Total depreciation, amortization and impairment losses on property, plant and equipment and intangible assets	27,892	9,119	10,227
Taxes	(9,805)	(6,200)	(2,835)
Dividends from joint ventures/associated companies	77	84	92
Undistributed earnings in joint ventures/ associated companies1)	(21)	(26)	38
Gains/losses on sales of investments and operations, intangible assets and PP&E, net	(167)	(37)	(156)
Other non-cashitems3)	607	3,172	3,245
Total	18,583	6,112	10,611
Intangible asset and goodwill [member]
Disclosure of adjustments to reconcile net income to cash [line items]
Total	21,578	4,550	5,538
Property, plant and equipments [member]
Disclosure of adjustments to reconcile net income to cash [line items]
Total	6,314	4,569	4,689
Capitalized development expenditure [member]
Disclosure of adjustments to reconcile net income to cash [line items]
Amortization	2,681	1,815	1,379
Impairments	2,245	85	20
Intellectual property rights brands and other intangible assets [member]
Disclosure of adjustments to reconcile net income to cash [line items]
Amortization	1,667	kr 2,650	kr 4,139
Impairments	kr 2,019

XML

Statement of Cash Flows - Summary of Acquisitions/Divestments of Subsidiaries and Other Operations (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of acquisitions and divestments [line items]
Acquisitions	kr (289)	kr (984)	kr (2,201)
Divestments	565	362	1
Cash flow from business combination [member]
Disclosure of acquisitions and divestments [line items]
Acquisitions	(62)	(781)	(1,867)
Divestments	459	25
Acquisition or divestments of other investment [member]
Disclosure of acquisitions and divestments [line items]
Acquisitions	(227)	(203)	(334)
Divestments	kr 106	kr 337	kr 1

XML

Statement of cash flows - Reconciliation of Liabilities Arising from Financing Activities (Detail) kr in Millions	12 Months Ended
	Dec. 31, 2017 SEK (kr)
Disclosure of reconciliation of liabilities arising from financing activities [abstract]
Opening balance	kr 26,686
Cash flows
Proceeds from issuance of borrowings	13,416
Repayment of borrowings	(4,830)
Non-cash changes
Effect of foreign exchange movement	(2,155)
Changes in fair value	(72)
Closing balance	kr 33,045

XML

Statement of cash flows - Reconciliation of Liabilities Arising from Financing Activities (Parenthetical) (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of reconciliation of liabilities arising from financing activities [abstract]
Current borrowings	kr 2,545	kr 8,033
Non-current borrowings	kr 30,500	kr 18,653

XML

Business Combinations - Summary of Net Assets Acquired and Total Consideration Transferred Business Combinations (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net assets acquired
Goodwill	kr 27,815	kr 43,387
Acquisitions 2015-2017 [member]
Disclosure of consideration transferred business combinations line items [Line Items]
Total consideration, including cash	62	920	kr 2,119
Acquisition-related costs1)	49	4	19
Net assets acquired
Cash and cash equivalents		139	271
Property, plant and equipment	12	19	45
Intangible assets	101	817	445
Other assets	1	290	572
Other liabilities	25	(290)	(379)
Total identifiable net assets	139	975	954
Goodwill	(77)	(55)	1,165
Total	kr 62	kr 920	kr 2,119

XML

Business Combinations - Additional Information (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about business combination [line items]
Cash flow effect pursuant to business combinations	kr 459	kr 25
Acquisitions 2015-2017 [member]
Disclosure of detailed information about business combination [line items]
Cash flow effect pursuant to business combinations	kr 62	kr 781
Nodeprime [member]
Disclosure of detailed information about business combination [line items]
Company	Nodeprime
Description	A US based software development company with an infrastructure management platform.
Transaction date	Apr. 30, 2016
Ericpol [member]
Disclosure of detailed information about business combination [line items]
Company	Ericpol
Description	A software development company in Poland within telecommunications.
Transaction date	Apr. 30, 2016
FYI Television [member]
Disclosure of detailed information about business combination [line items]
Company	FYI Television
Description	A US based premier entertainment metadata and rich media content supplier.
Transaction date	Jan. 31, 2016
Envivio [member]
Disclosure of detailed information about business combination [line items]
Company	Envivio
Description	A US-basedcompany with competence in software-defined and cloud-enabled architectures for video processing.
Transaction date	Oct. 31, 2015
Icon [member]
Disclosure of detailed information about business combination [line items]
Company	ICON
Description	A consulting and systems integration business with approximately 250 employees and consultants.
Transaction date	Aug. 31, 2015
Sunrise technology [member]
Disclosure of detailed information about business combination [line items]
Company	Sunrise technology
Description	A business delivering complex IT solutions.
Transaction date	Jul. 31, 2015
Timeless mind [member]
Disclosure of detailed information about business combination [line items]
Company	Timelessmind
Description	A Canada-based consulting and systems integration business specializing in operations and business support (OSS/BSS).
Transaction date	Apr. 30, 2015

XML

Business Combinations - Summary of Divestments Transactions (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net assets disposed of
Goodwill	kr 27,815	kr 43,387
Divestments 2015-2017 [member]
Disclosure Of Divestitures [line items]
Proceeds	459	25
Net assets disposed of
Property, plant and equipment	62	36
Investments in joint ventures and associated companies		15
Goodwill	45
Other assets	219	5	kr 52
Other liabilities	(180)	(114)	(3)
Net assets disposed of	146	(58)	49
Net gains/losses from divestments	313	83	(49)
Less Cash and cash equivalents	0	0	kr 0
Cash flow effect	kr 459	kr 25

XML

Business Combinations - Additional Information (Parenthetical) (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about business combination [abstract]
Cash flow effect pursuant to business combinations	kr 459	kr 25

XML

Business Combinations - Summary of Business Divestments Transactions (Detail) - Divestments 2015-2017 [member]	12 Months Ended
	Dec. 31, 2017
Power Modules [member]
Disclosure of business divestitures [line items]
Divestments, Company	Power Modules
Divestments, Description	A divestment of the power modules business.
Business Divestments, transaction date	Sep. 30, 2017
Birla Ericsson Optical Ltd [member]
Disclosure of business divestitures [line items]
Divestments, Company	Birla Ericsson Optical Ltd
Divestments, Description	A divestment of the shares in the associated company.
Business Divestments, transaction date	Jul. 31, 2016

XML

Leasing - Additional Information (Detail) - SEK (kr)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Leases [line items]
Finance lease obligations	kr 0
Expenses for leasing of assets	4,194,000,000	kr 3,710,000,000
Variable lease expenses	101,000,000	217,000,000
Leasing income	kr 44,000,000	kr 47,000,000
Lessor [Member] | Bottom of range [member]
Disclosure Of Leases [line items]
Leasing contract period	1 year
Lessor [Member] | Top of range [member]
Disclosure Of Leases [line items]
Leasing contract period	15 years
Lessee [member] | Bottom of range [member]
Disclosure Of Leases [line items]
Leasing contract period	1 year
Lessee [member] | Top of range [member]
Disclosure Of Leases [line items]
Leasing contract period	16 years

XML

Leasing - Summary of Future Minimum Lease Payment Obligations (Detail) kr in Millions	12 Months Ended
	Dec. 31, 2017 SEK (kr)
Disclosure of finance lease and operating lease by lessee [line items]
Operating leases	kr 17,119
Future minimum, Operating leases	613
2018 [member]
Disclosure of finance lease and operating lease by lessee [line items]
Operating leases	3,491
Future minimum, Operating leases	83
2019 [member]
Disclosure of finance lease and operating lease by lessee [line items]
Operating leases	2,927
Future minimum, Operating leases	87
2020 [member]
Disclosure of finance lease and operating lease by lessee [line items]
Operating leases	2,506
Future minimum, Operating leases	85
2021 [member]
Disclosure of finance lease and operating lease by lessee [line items]
Operating leases	1,966
Future minimum, Operating leases	87
2022 [member]
Disclosure of finance lease and operating lease by lessee [line items]
Operating leases	1,442
Future minimum, Operating leases	87
2023 or later [member]
Disclosure of finance lease and operating lease by lessee [line items]
Operating leases	4,787
Future minimum, Operating leases	kr 184

XML

Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Remuneration to Members of the Board of Directors (Detail)	12 Months Ended
	Dec. 31, 2017 SEK (kr) shares
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	kr 13,153,000
Value at grant date of synthetic shares allocated	kr 4,207,271
Number of previously allocated synthetic shares outstanding | shares	93,582
Net change in value of synthetic shares	kr 632,329
Committee fees	2,500,000
Total fees paid in cash	11,445,500
Total remuneration	kr 16,285,100
Synthetic shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of synthetic shares | shares	73,618
Board member [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	kr 13,153,000
Value at grant date of synthetic shares allocated	kr 4,207,271
Number of previously allocated synthetic shares outstanding | shares	93,582
Net change in value of synthetic shares	kr 422,974
Committee fees	2,500,000
Total fees paid in cash	11,445,500
Total remuneration	kr 16,075,745
Board member [member] | Synthetic shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of synthetic shares | shares	73,618
Board member [member] | Jacob Wallenberg [Member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	kr 990,000
Portion of Board fee	75.00%
Value at grant date of synthetic shares allocated	kr 742,493
Number of previously allocated synthetic shares outstanding | shares	18,202
Net change in value of synthetic shares	kr 128,459
Committee fees	175,000
Total fees paid in cash	422,500
Total remuneration	kr 1,293,452
Board member [member] | Jacob Wallenberg [Member] | Synthetic shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of synthetic shares | shares	12,992
Board member [member] | Leif Johansson [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	kr 4,075,000
Portion of Board fee	0.00%
Committee fees	kr 400,000
Total fees paid in cash	4,475,000
Total remuneration	kr 4,475,000
Board member [member] | Leif Johansson [member] | Synthetic shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of synthetic shares | shares	0
Board member [member] | Helena Stjernholm [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	kr 990,000
Portion of Board fee	50.00%
Value at grant date of synthetic shares allocated	kr 494,976
Number of previously allocated synthetic shares outstanding | shares	11,093
Net change in value of synthetic shares	kr (13,606)
Committee fees	175,000
Total fees paid in cash	670,000
Total remuneration	kr 1,151,370
Board member [member] | Helena Stjernholm [member] | Synthetic shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of synthetic shares | shares	8,661
Board member [member] | Jon Fredrik Baksaas [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	kr 990,000
Portion of Board fee	75.00%
Value at grant date of synthetic shares allocated	kr 742,493
Net change in value of synthetic shares	(42,874)
Committee fees	175,000
Total fees paid in cash	422,500
Total remuneration	kr 1,122,119
Board member [member] | Jon Fredrik Baksaas [member] | Synthetic shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of synthetic shares | shares	12,992
Board member [member] | Jan Carlson [Member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	kr 990,000
Portion of Board fee	75.00%
Value at grant date of synthetic shares allocated	kr 742,493
Net change in value of synthetic shares	(42,874)
Committee fees	175,000
Total fees paid in cash	422,500
Total remuneration	kr 1,122,119
Board member [member] | Jan Carlson [Member] | Synthetic shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of synthetic shares | shares	12,992
Board member [member] | Nora Denzel [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	kr 990,000
Portion of Board fee	25.00%
Value at grant date of synthetic shares allocated	kr 247,460
Number of previously allocated synthetic shares outstanding | shares	5,489
Net change in value of synthetic shares	kr 23,549
Committee fees	425,000
Total fees paid in cash	1,167,500
Total remuneration	kr 1,438,509
Board member [member] | Nora Denzel [member] | Synthetic shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of synthetic shares | shares	4,330
Board member [member] | Borje Ekholm [Member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of previously allocated synthetic shares outstanding | shares	33,203
Net change in value of synthetic shares	kr 339,168
Total remuneration	339,168
Board member [member] | Eric A. Elzvik [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	kr 990,000
Portion of Board fee	25.00%
Value at grant date of synthetic shares allocated	kr 247,460
Net change in value of synthetic shares	(14,289)
Committee fees	350,000
Total fees paid in cash	1,092,500
Total remuneration	kr 1,325,671
Board member [member] | Eric A. Elzvik [member] | Synthetic shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of synthetic shares | shares	4,330
Board member [member] | Kristin Skogen Lund [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	kr 990,000
Portion of Board fee	25.00%
Value at grant date of synthetic shares allocated	kr 247,460
Number of previously allocated synthetic shares outstanding | shares	11,990
Net change in value of synthetic shares	kr 60,646
Committee fees	250,000
Total fees paid in cash	992,500
Total remuneration	kr 1,300,606
Board member [member] | Kristin Skogen Lund [member] | Synthetic shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of synthetic shares | shares	4,330
Board member [member] | Kristin S. Rinne [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	kr 990,000
Portion of Board fee	50.00%
Value at grant date of synthetic shares allocated	kr 494,976
Number of previously allocated synthetic shares outstanding | shares	7,395
Net change in value of synthetic shares	kr (18,598)
Committee fees	200,000
Total fees paid in cash	695,000
Total remuneration	kr 1,171,378
Board member [member] | Kristin S. Rinne [member] | Synthetic shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of synthetic shares | shares	8,661
Board member [member] | Sukhinder Singh Cassidy [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	kr 990,000
Portion of Board fee	25.00%
Value at grant date of synthetic shares allocated	kr 247,460
Number of previously allocated synthetic shares outstanding | shares	6,210
Net change in value of synthetic shares	kr 3,393
Committee fees	175,000
Total fees paid in cash	917,500
Total remuneration	kr 1,168,353
Board member [member] | Sukhinder Singh Cassidy [member] | Synthetic shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of synthetic shares | shares	4,330
Board member [member] | Pehr Claesson [member] | Employee representatives [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	kr 15,000
Total fees paid in cash	15,000
Total remuneration	15,000
Board member [member] | Mikael Lannqvist [member] | Employee representatives [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	9,000
Total fees paid in cash	9,000
Total remuneration	9,000
Board member [member] | Kjell-Ake Soting [Member] | Employee representatives [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	27,000
Total fees paid in cash	27,000
Total remuneration	27,000
Board member [member] | Roger Svensson [member] | Employee representatives [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	37,500
Total fees paid in cash	37,500
Total remuneration	37,500
Board member [member] | Karin Aberg [member] | Employee representatives [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	33,000
Total fees paid in cash	33,000
Total remuneration	33,000
Board member [member] | Zlatko Hadzic [member] | Deputy employee representatives [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	6,000
Total fees paid in cash	6,000
Total remuneration	6,000
Board member [member] | Torbjrn Nyman [member] | Deputy employee representatives [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	13,500
Total fees paid in cash	13,500
Total remuneration	13,500
Board member [member] | Anders Ripa [member] | Deputy employee representatives [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	13,500
Total fees paid in cash	13,500
Total remuneration	13,500
Board member [member] | Loredana Roslund [member] | Deputy employee representatives [member]
Disclosure of Information About Board Management and Employees [Line Items]
Board fees	13,500
Total fees paid in cash	13,500
Total remuneration	kr 13,500

XML

Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Remuneration to Members of the Board of Directors (Parenthetical) (Detail) - SEK (kr)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Disclosure of Information About Board Management and Employees [Line Items]
Share price used to calculate value of synthetic shares	kr 53.85
Dividend compensation per share included in value of synthetic shares		kr 1.00	kr 3.70	kr 3.40	kr 3.00
Social security charges	kr 2,964,677
Jacob Wallenberg [Member]
Disclosure of Information About Board Management and Employees [Line Items]
Statutory social charges	kr 174,460

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Additional Information (Detail) - SEK (kr)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2014
Disclosure of Information About Board Management and Employees [Line Items]
Board fee description		The Annual General Meeting 2017 resolved that non-employeeDirectors may choose to receive the Board fee (i.e., exclusive of Committee fee) as follows i) 25% of the Board fee in cash and 75% in the form of synthetic shares, with a value corresponding to 75% of the Board fee at the time of allocation, ii) 50% in cash and 50% in the form of synthetic shares, or iii) 75% in cash and 25% in the form of synthetic shares. Directors may also choose not to participate in the synthetic share program and receive 100% of the Board fee in cash. Committee fees are always paid in cash.
Number of trading days	5 days
Remuneration excluding social security charges		kr 2,788,056
Number of shares outstanding		3,334,151,735	3,331,151,735
Accounted debt		kr 9,440,105
Matching result percentage				33.33%
Shares issued		1,827,600
Strike price			kr 80
Additional arrangement period		36 months
Severance pay amounting period		18 months
The President and CEO [member]
Disclosure of Information About Board Management and Employees [Line Items]
Commitments for defined benefit based pensions including disability and survivor's pension		kr 45,651,263	kr 44,800,609
Number of matching shares received by serving employees		0
Other members of executive team [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of matching shares received by serving employees		79,285
Other members of ELT [member]
Disclosure of Information About Board Management and Employees [Line Items]
Commitments related to ITP and early retirement		kr 36,957,641	38,333,332
Commitment to disability and survivors pensions		8,693,622	kr 6,467,277
Board and committee meeting attendance fee [member]
Disclosure of Information About Board Management and Employees [Line Items]
Fee and commission expense		1,500
Purchased call options [member]
Disclosure of Information About Board Management and Employees [Line Items]
Shares issued			1,000,000
Purchase of options shares			2,000,000
Purchase price			kr 0.49
No compensation expenses recognized during the period			Seven-year period
Chairman [member] | Board fees [member]
Disclosure of Information About Board Management and Employees [Line Items]
Fee and commission expense		4,075,000
Chairman [member] | Committee fees [member]
Disclosure of Information About Board Management and Employees [Line Items]
Fee and commission expense		200,000
Other directors [member] | Board fees [member]
Disclosure of Information About Board Management and Employees [Line Items]
Fee and commission expense		990,000
Chairman of audit committee [member] | Board fees [member]
Disclosure of Information About Board Management and Employees [Line Items]
Fee and commission expense		350,000
Other non-employee members of audit committee [member] | Board fees [member]
Disclosure of Information About Board Management and Employees [Line Items]
Fee and commission expense		250,000
Chairmen of the finance and remuneration committees [member] | Board fees [member]
Disclosure of Information About Board Management and Employees [Line Items]
Fee and commission expense		200,000
Other non-employee members of finance and remuneration committees [member] | Board fees [member]
Disclosure of Information About Board Management and Employees [Line Items]
Fee and commission expense		kr 175,000
Class B shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Weighted average market price	kr 57.15	kr 51.92
Number of shares outstanding		3,072,395,752
Synthetic shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of shares outstanding		167,200

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Remuneration Costs for the President and CEO and Other Members of Executive Leadership Team (ELT) (Detail) - SEK (kr)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Classes Of Employee Benefits Expense [Line Items]
Salary	kr 76,502,000,000	kr 77,774,000,000	kr 80,054,000,000
Pension costs	2,622,000,000	2,114,000,000	kr 2,553,000,000
Board of directors [member]
Classes Of Employee Benefits Expense [Line Items]
Salary	176,538,632	165,383,449
Annual variable remuneration provision earned for the year	7,331,278	6,230,285
Long-term variable compensation provision	15,959,966	18,005,336
Pension costs	39,120,708	41,342,256
Other benefits	16,630,091	12,674,627
Social charges and taxes	60,981,063	49,388,312
Total	317,561,739	293,024,265
Borje Ekholm [Member] | Board of directors [member]
Classes Of Employee Benefits Expense [Line Items]
Salary	13,980,639
Long-term variable compensation provision	6,119,323
Pension costs	7,365,132
Other benefits	315,263
Social charges and taxes	8,728,588
Total	36,508,946
Jan Frykhammar [member] | Board of directors [member]
Classes Of Employee Benefits Expense [Line Items]
Salary	398,531
Pension costs	162,941
Other benefits	2,923
Social charges and taxes	165,666
Total	730,061
The President and CEO [member] | Board of directors [member]
Classes Of Employee Benefits Expense [Line Items]
Salary	14,379,170	45,882,357
Long-term variable compensation provision	6,119,323	8,727,083
Pension costs	7,528,073	11,954,758
Other benefits	318,187	69,992
Social charges and taxes	8,894,255	20,241,066
Total	37,239,007	86,875,256
Other members of executive team [member] | Board of directors [member]
Classes Of Employee Benefits Expense [Line Items]
Salary	162,159,462	119,501,092
Annual variable remuneration provision earned for the year	7,331,278	6,230,285
Long-term variable compensation provision	9,840,643	9,278,252
Pension costs	31,592,635	29,387,498
Other benefits	17,311,905	12,604,635
Social charges and taxes	52,086,808	29,147,247
Total	kr 280,322,732	kr 206,149,008

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Maximum Outstanding Matching Rights (Detail)	Dec. 31, 2017 shares
Number of Class B shares [member] | Top of range [member] | Other members of executive team [member]
Disclosure of Maximum Outstanding Matching Rights [Line Items]
Stock Purchase Plans 2014-2016 Executive Performance Stock Plans 2014-2016	183,054

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Additional Information 1 (Detail)		12 Months Ended
	May 18, 2017	Dec. 31, 2017 SEK (kr) Employees Employee kr / shares shares	Dec. 31, 2016 kr / shares	Dec. 18, 2017 kr / shares
Disclosure of Information About Board Management and Employees [Line Items]
Number of shares issued		1,827,600
Average price of share | kr / shares		kr 53.82
Employee stock purchase plan [member] | Bottom of range [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number Of Extra Shares For Subscription under the plan		4
Employee stock purchase plan [member] | Top of range [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number Of Extra Shares For Subscription under the plan		6
Maximum number of employees participate		0.50%
Key contributor retention plan [member]
Disclosure of Information About Board Management and Employees [Line Items]
Matching share for each contribution share purchased		1
Key contributor retention plan [member] | Top of range [member]
Disclosure of Information About Board Management and Employees [Line Items]
Employees nominated		10.00%
Long-term variable compensation program [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of shares issued		14,100,000
Compensation cost | kr		kr 170.0
Service period		3 years
Fair value share price | kr / shares		kr 57.15		kr 56.55
Executive performance plan [member]
Disclosure of Information About Board Management and Employees [Line Items]
Service period		3 years
Executive performance plan [member] | Long-term variable compensation program [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of shares issued		2,300,000
Compensation cost | kr		kr 31.4
Stock Purchase plan 2016 [member] | Top of range [member] | Employees [member]
Disclosure of Information About Board Management and Employees [Line Items]
Gross fixed salary			7.50%
Stock Purchase plan 2016 [member] | Stock Purchase plan 2016 [member]
Disclosure of Information About Board Management and Employees [Line Items]
Description of type of plan			If the contribution shares are retained by the employee for three years after the investment and their employment with the Ericsson Group continues during that time, then the employee's shares will be matched with a corresponding number of Class B shares or ADSs free of consideration. Employees in 100 countries participate in the plans.
Key contributor plan [member] | Long-term variable compensation program [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of shares issued		11,800,000
Compensation cost | kr		kr 138.6
Long-term variable compensation program [member]
Disclosure of Information About Board Management and Employees [Line Items]
Recognized service period		over the service period of three years
Long-term variable compensation program [member] | Performance share awards [member]
Disclosure of Information About Board Management and Employees [Line Items]
Vesting period		3 years
Vesting description		Awards under LTV 2017 are granted free of charge entitling the participant, provided that certain performance conditions set out below are met, to receive a number of shares, free of charge, following expiration of a three-year vesting period (“Performance Share Awards”).
Period of employement eligibility for awards		3 years
Long-term variable compensation program [member] | Sweden, Kronor [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of shares issued		3,000,000
Fair value | kr		kr 65.68
Compensation cost | kr		kr 9,900,000
Long-term variable compensation program [member] | Sweden, Kronor [member] | Executive Board [Member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of shares issued		7,000,000
Per share value | kr / shares		kr 57.15
Class B shares [member]
Disclosure of Information About Board Management and Employees [Line Items]
Per share value | kr / shares			kr 5.00
Number of exercise and matching shares transferred		45,000,000
Percentage of shares outstanding		1.40%
Number of shares outstanding		3,284,000,000
Number of treasury shares		50,000,000
Members of executive team [member]
Disclosure of Information About Board Management and Employees [Line Items]
Total employees | Employee		16
Retention of key employees [member] | Key contributor plan [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of employees who selected for plan | Employee		7,000
Number of employees nominated for plan | Employee		6,876
Number of awards		Two award levels at 10% and 25% of the participants' annual gross salary.
Employee retention period		3 years
Senior Managers [member] | Employee stock purchase plan [member]
Disclosure of Information About Board Management and Employees [Line Items]
Vesting period		3 years
Number of employees nominated for plan		452
Number of awards		Two award levels at 15% and 22.5% of the participants' annual gross salary.
Senior Managers [member] | Employee stock purchase plan [member] | Top of range [member]
Disclosure of Information About Board Management and Employees [Line Items]
Number of employees who selected for plan | Employees		500
The President and CEO [member] | Performance share awards [member]
Disclosure of Information About Board Management and Employees [Line Items]
Percentage value of awards on annual base salary	180.00%
Other participants [member] | Performance share awards [member]
Disclosure of Information About Board Management and Employees [Line Items]
Percentage value of awards on annual base salary	22.50%

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Performance Targets (Detail)	12 Months Ended
	Dec. 31, 2017
Absolute TSR [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Criteria	Range:6%-14%
Weight	50.00%
Relative TSR [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Criteria	Ranking of Ericsson: 12-5
Weight	50.00%
Bottom of range [member] | Absolute TSR [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting	0.00%
Bottom of range [member] | Relative TSR [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting	0.00%
Top of range [member] | Absolute TSR [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting	200.00%
Top of range [member] | Relative TSR [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting	200.00%

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Compensation Cost (Detail)	12 Months Ended
	Dec. 31, 2017 SEK (kr) shares
Disclosure of key management personnel compensation [Line Items]
Number of synthetic shares	1,827,600
Long-term variable compensation program [member]
Disclosure of key management personnel compensation [Line Items]
Number of synthetic shares	14,100,000
Total compensation cost | kr	kr 170.0
Executive performance plan [member] | Long-term variable compensation program [member]
Disclosure of key management personnel compensation [Line Items]
Number of synthetic shares	2,300,000
Total compensation cost | kr	kr 31.4
Key contributor plan [member] | Long-term variable compensation program [member]
Disclosure of key management personnel compensation [Line Items]
Number of synthetic shares	11,800,000
Total compensation cost | kr	kr 138.6

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Compensation Cost (Parenthetical) (Detail) - kr / shares	12 Months Ended
	Dec. 31, 2017	Dec. 18, 2017
Disclosure of key management personnel compensation [Line Items]
Cost recognized period	7 years 6 months
Long-term variable compensation program [member]
Disclosure of key management personnel compensation [Line Items]
Fair value granted	kr 65.68
Fair value share price	kr 57.15	kr 56.55

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Stock Purchase Plans (Detail)	12 Months Ended
	Dec. 31, 2017
Stock purchase plan 2014 [member]
Disclosure of Detailed Information About Stock Purchase Plans [Line Items]
Contribution period	August 2014-July 2015
Number of participants at launch	32,000
Take-up rate-percent of eligible employees	30.00%
Stock Purchase plan 2015 [member]
Disclosure of Detailed Information About Stock Purchase Plans [Line Items]
Contribution period	August 2015-July 2016
Number of participants at launch	33,800
Take-up rate-percent of eligible employees	31.00%
Stock Purchase plan 2016 [member]
Disclosure of Detailed Information About Stock Purchase Plans [Line Items]
Contribution period	August 2016-July 2017
Number of participants at launch	31,500
Take-up rate-percent of eligible employees	29.00%

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Executive Performance Stock Plan Targets (Detail) - SEK (kr)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Executive Performance Stock Plan Targets [line items]
Growth (Net sales growth)	kr 246.9	kr 228.0
Margin (Operating income growth)1)	24.8	16.8
Cash flow (Cash conversion)	kr 0	kr 0
Bottom of range [member]
Disclosure of Executive Performance Stock Plan Targets [line items]
Compound annual growth rate, Growth (Net sales growth)	2.00%	2.00%
Compound annual growth rate, Margin (Operating income growth)	5.00%	5.00%
Top of range [member]
Disclosure of Executive Performance Stock Plan Targets [line items]
Compound annual growth rate, Growth (Net sales growth)	6.00%	6.00%
Compound annual growth rate, Margin (Operating income growth)	15.00%	15.00%
Top of range [member] | Year 1 [member]
Disclosure of Executive Performance Stock Plan Targets [line items]
Cash flow (Cash conversion)	70.00%	70.00%
Top of range [member] | Year 2 [member]
Disclosure of Executive Performance Stock Plan Targets [line items]
Cash flow (Cash conversion)	70.00%	70.00%
Top of range [member] | Year 3 [member]
Disclosure of Executive Performance Stock Plan Targets [line items]
Cash flow (Cash conversion)	70.00%	70.00%

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Shares for All Plans (Detail) shares in Millions, kr in Millions	12 Months Ended
	Dec. 31, 2017 SEK (kr) shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Originally designated	94.5
Outstanding beginning of 2017	45.0
Awarded during 2017	17.1
Exercised/matched during 2017	13.0
Forfeited/expired during 2017	5.4
Outstanding end of 20171)	43.7
Compensation costs charged during 2017 (SEK million)3) | kr	kr 875.5
2016 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Originally designated	21.6
Outstanding beginning of 2017	7.5
Awarded during 2017	17.1
Exercised/matched during 2017	1.4
Forfeited/expired during 2017	1.6
Outstanding end of 20171)	21.6
Compensation costs charged during 2017 (SEK million)3) | kr	kr 274.5
2015 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Originally designated	23.5
Outstanding beginning of 2017	18.7
Exercised/matched during 2017	1.6
Forfeited/expired during 2017	1.7
Outstanding end of 20171)	15.4
Compensation costs charged during 2017 (SEK million)3) | kr	kr 315.4
2014 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Originally designated	22.8
Outstanding beginning of 2017	11.8
Exercised/matched during 2017	3.2
Forfeited/expired during 2017	1.9
Outstanding end of 20171)	6.7
Compensation costs charged during 2017 (SEK million)3) | kr	kr 234.1
2013 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Originally designated	26.6
Outstanding beginning of 2017	7.0
Exercised/matched during 2017	6.8
Forfeited/expired during 2017	0.2
Compensation costs charged during 2017 (SEK million)3) | kr	kr 51.5

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Shares for All Plans (Parenthetical) (Detail) - SEK (kr) kr / shares in Units, kr in Millions				12 Months Ended
	Aug. 15, 2017	May 15, 2017	Feb. 15, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period				3 years
Compensation cost					kr 957	kr 865
2012 plan [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding share option vesting percentage				39.70%
Outstanding share option lapsed percentage				33.00%
2013 plan [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding share option vesting percentage				60.30%
Outstanding share option lapsed percentage				67.00%
Number of Class B shares [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Fair value of share at each investment	kr 46.19	kr 54.46	kr 46.77

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Average Number of employees (Detail) - Employees	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Information About Employees [line items]
Average number of employees	107,369	116,416
Women [member]
Disclosure of Information About Employees [line items]
Average number of employees	25,793	26,936
Men [member]
Disclosure of Information About Employees [line items]
Average number of employees	81,576	89,480
South East Asia, Oceania and India [member]
Disclosure of Information About Employees [line items]
Average number of employees	24,985	26,605
South East Asia, Oceania and India [member] | Women [member]
Disclosure of Information About Employees [line items]
Average number of employees	5,212	6,106
South East Asia, Oceania and India [member] | Men [member]
Disclosure of Information About Employees [line items]
Average number of employees	19,773	20,499
North East Asia [member]
Disclosure of Information About Employees [line items]
Average number of employees	12,846	13,483
North East Asia [member] | Women [member]
Disclosure of Information About Employees [line items]
Average number of employees	4,189	4,297
North East Asia [member] | Men [member]
Disclosure of Information About Employees [line items]
Average number of employees	8,657	9,186
North America [member]
Disclosure of Information About Employees [line items]
Average number of employees	10,932	13,529
North America [member] | Women [member]
Disclosure of Information About Employees [line items]
Average number of employees	2,337	2,862
North America [member] | Men [member]
Disclosure of Information About Employees [line items]
Average number of employees	8,595	10,667
Europe and Latin America [member]
Disclosure of Information About Employees [line items]
Average number of employees	53,782	57,486
Europe and Latin America [member] | Women [member]
Disclosure of Information About Employees [line items]
Average number of employees	13,135	12,928
Europe and Latin America [member] | Men [member]
Disclosure of Information About Employees [line items]
Average number of employees	40,647	44,558
Middle East and Africa [member]
Disclosure of Information About Employees [line items]
Average number of employees	4,824	5,313
Middle East and Africa [member] | Women [member]
Disclosure of Information About Employees [line items]
Average number of employees	920	743
Middle East and Africa [member] | Men [member]
Disclosure of Information About Employees [line items]
Average number of employees	3,904	4,570
Sweden [member]
Disclosure of Information About Employees [line items]
Average number of employees	14,312	16,009
Sweden [member] | Women [member]
Disclosure of Information About Employees [line items]
Average number of employees	3,299	3,650
Sweden [member] | Men [member]
Disclosure of Information About Employees [line items]
Average number of employees	11,013	12,359
Of which in EU [member]
Disclosure of Information About Employees [line items]
Average number of employees	41,664	43,907
Of which in EU [member] | Women [member]
Disclosure of Information About Employees [line items]
Average number of employees	10,534	10,056
Of which in EU [member] | Men [member]
Disclosure of Information About Employees [line items]
Average number of employees	31,130	33,852

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Number of Employees by Region (Detail) - Employees	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Information About Employees [line items]
Number of employees by market area	100,735	111,464
South East Asia, Oceania and India [member]
Disclosure of Information About Employees [line items]
Number of employees by market area	24,495	26,570
North East Asia [member]
Disclosure of Information About Employees [line items]
Number of employees by market area	12,456	13,042
North America [member]
Disclosure of Information About Employees [line items]
Number of employees by market area	10,009	11,547
Europe and Latin America [member]
Disclosure of Information About Employees [line items]
Number of employees by market area	49,231	54,873
Middle East and Africa [member]
Disclosure of Information About Employees [line items]
Number of employees by market area	4,544	5,432
Sweden [member]
Disclosure of Information About Employees [line items]
Number of employees by market area	13,864	15,303
Of which in EU [member]
Disclosure of Information About Employees [line items]
Number of employees by market area	39,508	42,625

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Number of Employees by Gender and Age (Detail) - Employees	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Information About Employees [line items]
Number of employees	100,735	111,464
Percentage of employees	100.00%
Women [member]
Disclosure of Information About Employees [line items]
Percentage of employees	77.00%
Men [member]
Disclosure of Information About Employees [line items]
Percentage of employees	23.00%
Under 25 years old [member]
Disclosure of Information About Employees [line items]
Percentage of employees	4.00%
Under 25 years old [member] | Women [member]
Disclosure of Information About Employees [line items]
Number of employees	1,611
Under 25 years old [member] | Men [member]
Disclosure of Information About Employees [line items]
Number of employees	2,283
25-35 years old [member]
Disclosure of Information About Employees [line items]
Percentage of employees	37.00%
25-35 years old [member] | Women [member]
Disclosure of Information About Employees [line items]
Number of employees	9,776
25-35 years old [member] | Men [member]
Disclosure of Information About Employees [line items]
Number of employees	27,458
Between 36 to 45 years old [member]
Disclosure of Information About Employees [line items]
Percentage of employees	31.00%
Between 36 to 45 years old [member] | Women [member]
Disclosure of Information About Employees [line items]
Number of employees	6,452
Between 36 to 45 years old [member] | Men [member]
Disclosure of Information About Employees [line items]
Number of employees	25,301
46-55 years old [member]
Disclosure of Information About Employees [line items]
Percentage of employees	21.00%
46-55 years old [member] | Women [member]
Disclosure of Information About Employees [line items]
Number of employees	4,205
46-55 years old [member] | Men [member]
Disclosure of Information About Employees [line items]
Number of employees	16,741
Over 55 years old [member]
Disclosure of Information About Employees [line items]
Percentage of employees	7.00%
Over 55 years old [member] | Women [member]
Disclosure of Information About Employees [line items]
Number of employees	1,490
Over 55 years old [member] | Men [member]
Disclosure of Information About Employees [line items]
Number of employees	5,418

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Employee Movements (Detail) - Employees	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Information About Employees [line items]
Number of employees	100,735	111,464
Employees who have left the Company [member]
Disclosure of Information About Employees [line items]
Number of employees	21,791	19,865
Employees who have joined the Company [member]
Disclosure of Information About Employees [line items]
Number of employees	11,062	15,048
Temporary employee [member]
Disclosure of Information About Employees [line items]
Number of employees	676	1,148

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Wages and Salaries and Social Security Expenses (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Information About Employees [line items]
Wages and salaries	kr 76,502	kr 77,774	kr 80,054
Directors remuneration [member]
Disclosure of Information About Employees [line items]
Wages and salaries	58,966	60,064
Social security expenses	17,536	17,710
Of which pension costs	kr 5,592	kr 5,254

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Remuneration to Board Members and Presidents in Subsidiaries (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Number and average number of employees [abstract]
Salary and other remuneration	kr 347	kr 462
Of which annual variable remuneration	79	106
Pension costs	kr 32	kr 38

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Information Regarding Members of the Board of Directors, the Group Management and Employees - Summary of Board Members, Presidents and Group Management by Gender (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Women [member] | Parent [member]
Disclosure of Information About Employees [line items]
Board members and President	43.00%	46.00%
Group Management	36.00%	35.00%
Women [member] | Subsidiaries [member]
Disclosure of Information About Employees [line items]
Board members and President	19.00%	19.00%
Men [member] | Parent [member]
Disclosure of Information About Employees [line items]
Board members and President	57.00%	54.00%
Group Management	64.00%	65.00%
Men [member] | Subsidiaries [member]
Disclosure of Information About Employees [line items]
Board members and President	81.00%	81.00%

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Fees to Auditors - Summary of Fees to Auditors (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Auditors Remuneration [line items]
Audit fees	kr 91	kr 93	kr 93
Audit-related fees	11	10	11
Tax fees	17	18	32
Other fees	16	27	8
Total	135	148	144
PwC [member]
Auditors Remuneration [line items]
Audit fees	89	90	91
Audit-related fees	11	10	11
Tax fees	13	10	19
Other fees	9	16	8
Total	122	126	129
Others [member]
Auditors Remuneration [line items]
Audit fees	2	3	2
Tax fees	4	8	13
Other fees	7	11
Total	kr 13	kr 22	kr 15

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Fees to Auditors - Additional Information (Detail) - SEK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Auditors Remuneration [line items]
Auditors fee	kr 135	kr 148	kr 144
Tax fees	17	18	32
Other audit fees	16	27	8
PwC [member]
Auditors Remuneration [line items]
Auditors fee	122	126	129
Tax fees	13	10	19
Other audit fees	9	kr 16	kr 8
PwC AB Sweden [member]
Auditors Remuneration [line items]
Auditors fee	39
Other statutory engagements fees	10
Tax fees	3
Other audit fees	kr 5

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Contractual Obligations - Summary of Contractual Obligations (Detail) - SEK (kr) kr in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Contractual Obligations [Line Items]
Current and Non-current debt	kr 33,045	kr 26,686
Other non-current liabilities	2,776	2,621
Trade payables	26,321	25,318
Commitments for customer finance	9,706	kr 13,082
Contractual obligations [member]
Disclosure of Contractual Obligations [Line Items]
Current and Non-current debt	33,900
Operating leases	17,100
Other non-current liabilities	2,800
Purchase obligations	7,800
Trade payables	26,300
Commitments for customer finance	9,700
Total	97,600
Contractual obligations [member] | 2018 [member]
Disclosure of Contractual Obligations [Line Items]
Current and Non-current debt	2,800
Operating leases	3,500
Other non-current liabilities	400
Purchase obligations	6,200
Trade payables	26,300
Commitments for customer finance	9,700
Total	48,900
Contractual obligations [member] | Maturity between 1 and 3 years [member]
Disclosure of Contractual Obligations [Line Items]
Current and Non-current debt	8,900
Operating leases	5,400
Other non-current liabilities	700
Purchase obligations	900
Total	15,900
Contractual obligations [member] | Maturity between 3 and 5 years [member]
Disclosure of Contractual Obligations [Line Items]
Current and Non-current debt	14,300
Operating leases	3,400
Purchase obligations	700
Total	18,400
Contractual obligations [member] | 2023 or later [member]
Disclosure of Contractual Obligations [Line Items]
Current and Non-current debt	7,900
Operating leases	4,800
Other non-current liabilities	1,700
Total	kr 14,400

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Events after the Reporting Period - Additional Information (Detail)	12 Months Ended
	Jan. 31, 2018
Events After Reporting Period [Member]
Disclosure of non-adjusting events after reporting period [line items]
Equity Interest percentage	49.00%