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E1 Equity | 12 Months Ended
--- | ---
Dec. 31, 2020
Equity [Abstract] |
E1 Equity |
E1 | Equity
Capital stock 2020 Capital stock at December 31, 2020, consisted of the following:
Capital stock |  |  |  |
|  |  |  | Capital stock
Parent Company |  | Number of shares |  | (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, 2020, the total number of treasury shares was 6,043,960 (19,853,247 in 2019 and 37,057,039 in 2018) Class B shares. Ericsson did not repurchase shares in 2020 in relation to the Stock Purchase Plan.
Number of shares |  |  |  |
|  |  |  | Capital stock
|  | Number of shares |  | (SEK million)
Number of shares Jan 1, 2020 |  | 3,334,151,735 |  | 16,672
Number of shares Dec 31, 2020 |  | 3,334,151,735 |  | 16,672
Dividend proposal The Board of Directors propose a dividend for 2020 of SEK 2.00 per share (SEK 1.50 in 2019 and SEK 1.00 in 2018) to the Annual General Meeting. Additional paid in capital Additional paid in capital relates to payments made by owners and includes share premiums paid. Other reserves Other reserves include translation reserves, cash flow hedges and revaluation of borrowings. Translation reserves (cumulative translation adjustments) The cumulative translation adjustments comprise all foreign currency translation reserves 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. Due to the COVID-19 pandemic effect on the financial markets, foreign exchanges rates fluctuated significantly during the year. SEK has strengthened against major currencies, especially USD, which resulted in negative currency translation adjustment of SEK -5.4 billion on consolidation. Cash flow hedge reserve For further information, see note F1 “Financial risk management.” Revaluation of borrowings For further information, see note F4 “Interest-bearing liabilities.” Retained earnings Retained earnings, including net income for the year, comprise the earned profits of the Parent Company and its share of net income in subsidiaries, joint ventures and associated companies. Retained earnings also include: Remeasurements related to post-employment benefits Actuarial gains and losses resulting from experience-based events and changes in actuarial assumptions, fluctuations in the effect of the asset ceiling, and adjustments related to the Swedish special payroll taxes. For more information, see note G1 “Post-employment benefits.” Non-controlling interests Equity in a subsidiary not attributable, directly or indirectly, to a parent.
Other reserves |  |  |  |  |  |  |  |  |  |  |  |
|  | 2020 |  | 2019
|  | Translation reserves |  | Cash flow hedge reserve |  | Revaluation of borrowings |  | Total other reserves |  | Translation reserves |  | Cash flow hedge reserve |  | Revaluation of borrowings |  | Total other reserves
Opening balance |  | 2,967 |  | (230) |  | (445) |  | 2,292 |  | 893 |  | — |  | 72 |  | 965
Other comprehensive income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Items that will not be reclassified to profit or loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revaluation of borrowings due to change in credit risk |  | — |  | — |  | 99 |  | 99 |  | — |  | — |  | (651) |  | (651)
Tax on items that will not be reclassified to profit or loss |  | — |  | — |  | (20) |  | (20) |  | — |  | — |  | 134 |  | 134
Items that have been or may be reclassified to profit or loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash flow hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gains/losses arising during the period |  | — |  | 136 |  | — |  | 136 |  | — |  | (290) |  | — |  | (290)
Reclassification to profit and loss |  | — |  | 281 |  | — |  | 281 |  | — |  | — |  | — |  | —
Translation reserves |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Changes in translation reserves |  | (5,434) |  | — |  | — |  | (5,434) |  | 1,943 |  | — |  | — |  | 1,943
Reclassification to profit and loss |  | 124 |  | — |  | — |  | 124 |  | 54 |  | — |  | — |  | 54
Share of other comprehensive income of JV and assoicated companies |  | (81) |  | — |  | — |  | (81) |  | 77 |  | — |  | — |  | 77
Tax on items that have been or may be reclassified to profit or loss |  | — |  | (86) |  | — |  | (86) |  | — |  | 60 |  | — |  | 60
Other comprehensive income, net of tax |  | (5,391) |  | 331 |  | 79 |  | (4,981) |  | 2,074 |  | (230) |  | (517) |  | 1,327
Total comprehensive income |  | (5,391) |  | 331 |  | 79 |  | (4,981) |  | 2,074 |  | (230) |  | (517) |  | 1,327
Closing balance |  | (2,424) |  | 101 |  | (366) |  | (2,689) |  | 2,967 |  | (230) |  | (445) |  | 2,292

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