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G1 Post-employment benefits (Tables) | 12 Months Ended
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Dec. 31, 2020
Disclosure Of Employee Benefits Expenses [Abstract] |
Summary of Amount Recognized in the Consolidated Balance Sheet | Amount recognized in the Consolidated balance sheet
Amount recognized in the Consolidated balance sheet |  |  |  |  |  |  |  |  |  |
|  | Sweden |  | US |  | UK |  | Other |  | Total
2020 |  |  |  |  |  |  |  |  |  |
Defined benefit obligation (DBO) |  | 56,138 |  | 17,921 |  | 15,788 |  | 18,341 |  | 108,188
Fair value of plan assets |  | 26,967 |  | 17,327 |  | 17,326 |  | 11,991 |  | 73,611
Deficit/surplus (+/–) |  | 29,171 |  | 594 |  | (1,538) |  | 6,350 |  | 34,577
Plans with net surplus, excluding asset ceiling 1) |  | — |  | 92 |  | 2,090 |  | 594 |  | 2,776
Provision for post-employment benefits 2) |  | 29,171 |  | 686 |  | 552 |  | 6,944 |  | 37,353
2019 |  |  |  |  |  |  |  |  |  |
Defined benefit obligation (DBO) |  | 50,257 |  | 20,897 |  | 15,352 |  | 15,928 |  | 102,434
Fair value of plan assets |  | 22,809 |  | 20,102 |  | 16,919 |  | 9,829 |  | 69,659
Deficit/surplus (+/–) |  | 27,448 |  | 795 |  | (1,567) |  | 6,099 |  | 32,775
Plans with net surplus, excluding asset ceiling 1) |  | — |  | — |  | 2,137 |  | 905 |  | 3,042
Provision for post-employment benefits 2) |  | 27,448 |  | 795 |  | 570 |  | 7,004 |  | 35,817
1) | Plans with a net surplus, i.e., where plan assets exceed DBO, are reported as Other financial assets, non-current, see note F3 “Financial assets, non-current.” The asset ceiling decreased during the year to SEK 518 (833) million. Asset ceiling at 2019 is not restated for the Provident Fund plan in India.
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
2020 |  |  |  |  |  |  |  |  |  |
Pension cost for defined contribution plans |  | 963 |  | 415 |  | 136 |  | 664 |  | 2,178
Pension cost for defined benefit plans 1) |  | 1,783 |  | 13 |  | (4) |  | 993 |  | 2,785
Total |  | 2,746 |  | 428 |  | 132 |  | 1,657 |  | 4,963
Total pension cost expressed as a percentage of wages and salaries |  |  |  |  |  |  |  |  |  | 8.1%
2019 |  |  |  |  |  |  |  |  |  |
Pension cost for defined contribution plans |  | 953 |  | 456 |  | 132 |  | 1,193 |  | 2,734
Pension cost for defined benefit plans |  | 1,704 |  | (110) |  | (47) |  | 889 |  | 2,436
Total |  | 2,657 |  | 346 |  | 85 |  | 2,082 |  | 5,170
Total pension cost expressed as a percentage of wages and salaries |  |  |  |  |  |  |  |  |  | 8.8%
2018 |  |  |  |  |  |  |  |  |  |
Pension cost for defined contribution plans |  | 937 |  | 473 |  | 145 |  | 1,170 |  | 2,725
Pension cost for defined benefit plans |  | 1,350 |  | 175 |  | 75 |  | 557 |  | 2,157
Total |  | 2,287 |  | 648 |  | 220 |  | 1,727 |  | 4,882
Total pension cost expressed as a percentage of wages and salaries |  |  |  |  |  |  |  |  |  | 9.2%
1) | The cost for the US plans included settlement gain of SEK 93 million. For the UK plans, negative cost was due to interest income of SEK 327 million exceeding interest cost of SEK 295 million during the year.
Summary of Change in the Net Defined Benefit Obligation | Change in the net defined benefit obligation
Change in the net defined benefit obligation |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Present value |  | Fair value of |  |  |  | Present value |  | Fair value of |  |  |
|  | of obligation |  | plan assets |  | Total |  | of obligation |  | plan assets |  | Total |
|  | 20202) |  | 2020 |  | 2020 |  | 20192) |  | 2019 |  | 2019 |
Opening balance |  | 102,434 |  | (69,659) |  | 32,775 |  | 90,320 |  | (64,322) |  | 25,998 |
Adjustment 1) |  | 2,654 |  | (2,776) |  | (122) |  | — |  | — |  | — |
Opening balance adjusted |  | 105,088 |  | (72,435) |  | 32,653 |  | 90,320 |  | (62,322) |  | 25,998 |
Included in the income statement 3) |  |  |  |  |  |  |  |  |  |  |  |  |
Current service cost |  | 2,424 |  | — |  | 2,424 |  | 1,977 |  | — |  | 1,977 |
Past service cost and gains and losses on settlements 4) |  | (76) |  | — |  | (76) |  | (266) |  | — |  | (266) |
Interest cost/income (+/–) |  | 1,759 |  | (1,454) |  | 305 |  | 2,577 |  | (1,938) |  | 639 |
Taxes and administrative expenses |  | — |  | 29 |  | 29 |  | — |  | 49 |  | 49 |
Other |  | 51 |  | 2 |  | 53 |  | (1) |  | 2 |  | 1 |
|  | 4,158 |  | (1,423) |  | 2,735 |  | 4,287 |  | (1,887) |  | 2,400 |
Remeasurements |  |  |  |  |  |  |  |  |  |  |  |  |
Return on plan assets excluding amounts in interest expense/income |  | — |  | (4,734) |  | (4,734) |  | — |  | (5,758) |  | (5,758) |
Actuarial gains/losses (–/+) arising from changes in demographic assumptions |  | 10 |  | — |  | 10 |  | (775) |  | — |  | (775) |
Actuarial gains/losses (–/+) arising from changes in financial assumptions |  | 9,247 |  | — |  | 9,247 |  | 12,443 |  | — |  | 12,443 |
Experience-based gains/losses (–/+) |  | 320 |  | — |  | 320 |  | (126) |  | — |  | (126) |
|  | 9,577 |  | (4,734) |  | 4,843 |  | 11,542 |  | (5,758) |  | 5,784 |
Other changes |  |  |  |  |  |  |  |  |  |  |  |  |
Translation difference |  | (5,373) |  | 5,249 |  | (124) |  | 2,079 |  | (2,076) |  | 3 |
Contributions and payments from: |  |  |  |  |  |  |  |  |  |  |  |  |
Employers 5) |  | (1,921) |  | (3,612) |  | (5,533) |  | (1,183) |  | (321) |  | (1,504) |
Plan participants |  | 223 |  | (223) |  | — |  | 28 |  | (26) |  | 2 |
Payments from plans: |  |  |  |  |  |  |  |  |  |  |  |  |
Benefit payments |  | (1,834) |  | 1,834 |  | — |  | (2,044) |  | 2,044 |  | — |
Settlements |  | (1,745) |  | 1,733 |  | (12) |  | (2,722) |  | 2,687 |  | (35) |
Business combinations and divestments |  | 15 |  | — |  | 15 |  | 127 |  | — |  | 127 |
Closing balance |  | 108,188 |  | (73,611) |  | 34,577 |  | 102,434 |  | (69,659) |  | 32,775 |
1) | Adjustment relates to an existing defined benefit plan in India (Provident Fund) previously accounted for as a defined contribution pension plan.
2) | The weighted average duration of DBO is 20.8 (21.1) years.
3) | Excludes the impact of the asset ceiling of SEK 50 million in 2020 and SEK 36 million in 2019.
4) | Settlement gain of SEK 93 (258) million is reported in Other financial expenses, see note F2 “Financial income and expenses.”
5) | The expected contribution to the plans is SEK 1.8 billion during 2021.
Summary of Present Value of the Defined Benefit Obligation |
Present value of the defined benefit obligation |  |  |  |  |  |  |  |  |  |
|  | Sweden |  | US |  | UK |  | Other |  | Total
2020 |  |  |  |  |  |  |  |  |  |
DBO, closing balance |  | 56,138 |  | 17,921 |  | 15,788 |  | 18,341 |  | 108,188
Of which partially or fully funded |  | 56,138 |  | 17,235 |  | 15,788 |  | 14,811 |  | 103,972
Of which unfunded |  | — |  | 686 |  | — |  | 3,530 |  | 4,216
2019 |  |  |  |  |  |  |  |  |  |
DBO, closing balance |  | 50,257 |  | 20,897 |  | 15,352 |  | 15,928 |  | 102,434
Of which partially or fully funded |  | 50,257 |  | 20,138 |  | 15,352 |  | 12,211 |  | 97,958
Of which unfunded |  | — |  | 759 |  | — |  | 3,717 |  | 4,476
Summary of Asset Allocation by Asset Type and Geography |
Asset allocation by asset type and geography 1) |  |  |  |  |  |  |  |  |  |  |  |
|  | Sweden |  | US |  | UK |  | Other |  | Total |  | Of which unquoted 2)
2020 |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | 1,117 |  | 575 |  | 911 |  | 34 |  | 2,637 |  | 0%
Equity securities |  | 5,635 |  | 655 |  | 3,469 |  | 2,235 |  | 11,994 |  | 18%
Debt securities |  | 13,570 |  | 14,557 |  | 11,745 |  | 6,985 |  | 46,857 |  | 7%
Real estate |  | 4,338 |  | — |  | 152 |  | 531 |  | 5,021 |  | 100%
Investment funds |  | 2,153 |  | 1,495 |  | 274 |  | 419 |  | 4,341 |  | 50%
Assets held by insurance company |  | — |  | — |  | — |  | 1,409 |  | 1,409 |  | 100%
Other |  | 154 |  | 45 |  | 775 |  | 378 |  | 1,352 |  | 0%
Total |  | 26,967 |  | 17,327 |  | 17,326 |  | 11,991 |  | 73,611 |  |
Of which real estate occupied by the Company |  | — |  | — |  | — |  | — |  | — |  |
Of which securities issued by the Company |  | — |  | — |  | — |  | — |  | — |  |
2019 |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | 1,319 |  | 1,013 |  | 1,309 |  | 86 |  | 3,727 |  | 0%
Equity securities |  | 3,784 |  | 773 |  | 3,368 |  | 2,422 |  | 10,347 |  | 15%
Debt securities |  | 11,969 |  | 17,050 |  | 10,994 |  | 4,774 |  | 44,787 |  | 7%
Real estate |  | 4,489 |  | — |  | 169 |  | 550 |  | 5,208 |  | 100%
Investment funds |  | 1,248 |  | 1,261 |  | 296 |  | 242 |  | 3,047 |  | 65%
Assets held by insurance company |  | — |  | — |  | — |  | 1,404 |  | 1,404 |  | 100%
Other |  | — |  | 5 |  | 783 |  | 351 |  | 1,139 |  | 6%
Total |  | 22,809 |  | 20,102 |  | 16,919 |  | 9,829 |  | 69,659 |  |
Of which real estate occupied by the Company |  | — |  | — |  | — |  | — |  | — |  |
Of which securities issued by the Company |  | — |  | — |  | — |  | — |  | — |  |
1) | Asset class is presented based on the underlying exposure of the investment. This includes direct investment in securities or investment through pooled funds that invests in an asset class.
2) | Unquoted refers to assets classified as fair value level 3.
Summary of Financial and Demographic Actuarial Assumptions |
Financial and demographic actuarial assumptions |  |  |  | 2020 |  |  |  |  |  | 2019 |  |
|  | Sweden |  | US |  | UK |  | Sweden |  | US |  | UK
Financial assumptions |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  | 0.5% |  | 2.3% |  | 1.5% |  | 0.9% |  | 3.2% |  | 2.1%
Inflation rate |  | 1.8% |  | 2.5% |  | 2.8% |  | 1.8% |  | 2.5% |  | 3.0%
Salary increase rate |  | 2.8% |  | 3.5% |  | — |  | 2.8% |  | 3.5% |  | —
Demographic assumptions |  |  |  |  |  |  |  |  |  |  |  |
Life expectancy after age 65 in years |  | 23 |  | 23 |  | 23 |  | 22 |  | 23 |  | 23
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 |  |
|  | 2020 |  | 2019
Actuarial gains and losses (+/–) |  | (3,946) |  | (5,049)
The effect of asset ceiling |  | 226 |  | (398)
Swedish special payroll taxes |  | (898) |  | (735)
Total |  | (4,618) |  | (6,182)
Summary of Sensitivity Analysis of Significant Actuarial Assumptions |
Sensitivity analysis of signiﬁcant actuarial assumptions |  |  |  | 2020 |  |
Impact on the DBO of a change in assumptions |  | Sweden |  | US |  | UK
Financial assumptions |  |  |  |  |  |
Discount rate -0.5% |  | 7.2 |  | 1.1 |  | 2.0
Discount rate +0.5% |  | (6.3) |  | (1.0) |  | (1.7)
Inflation rate -0.5% |  | (6.3) |  | (0.0) |  | (1.4)
Inflation rate +0.5% |  | 7.2 |  | 0.0 |  | 1.5
Salary increase rate -0,5% |  | (2.6) |  | (0.0) |  | —
Salary increase rate +0,5% |  | 2.7 |  | 0.0 |  | —
Demographic assumptions |  |  |  |  |  |
Longevity - 1 year |  | (2.9) |  | (0.5) |  | (0.6)
Longevity + 1 year |  | 2.9 |  | 0.5 |  | 0.6

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