G1 Post-employment benefits (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure Of Employee Benefits Expenses [Abstract]

Summary of Amount Recognized in the Consolidated Balance Sheet


Amount recognized in the Consolidated balance sheet
	Sweden		US		UK		Other		Total
2023
Defined benefit obligation (DBO)		50,043		5,073		10,595		19,824		85,535
Fair value of plan assets		29,627		4,815		12,410		15,741		62,593
Deficit/surplus (+/–)		20,416		258		–1,815		4,083		22,942
Plans with net surplus, excluding asset ceiling 1)		–		255		1,889		1,143		3,287
Provision for post-employment benefits 2)		20,416		513		74		5,226		26,229

2022
Defined benefit obligation (DBO)		50,441		5,365		9,866		18,019		83,691
Fair value of plan assets		28,521		5,111		11,999		14,849		60,480
Deficit/surplus (+/–)		21,920		254		–2,133		3,170		23,211
Plans with net surplus, excluding asset ceiling 1)		–		298		2,137		1,715		4,150
Provision for post-employment benefits 2)		21,920		552		4		4,885		27,361

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 increased during the year to SEK 755 (584) million.

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
2023
Pension cost for defined contribution plans		1,223		522		148		1,571		3,464
Pension cost for defined benefit plans 1)		2,013		67		–67		1,166		3,179
Total		3,236		589		81		2,737		6,643
Total pension cost expressed as a percentage of wages and salaries										7.8%

2022
Pension cost for defined contribution plans		1,192		542		128		1,209		3,071
Pension cost for defined benefit plans		2,144		160		–22		1,204		3,486
Total		3,336		702		106		2,413		6,557
Total pension cost expressed as a percentage of wages and salaries										8.9%

2021
Pension cost for defined contribution plans		1,199		460		138		1,084		2,881
Pension cost for defined benefit plans		1,920		97		–6		931		2,942
Total		3,119		557		132		2,015		5,823
Total pension cost expressed as a percentage of wages and salaries										9.3%

1)	For the UK plans, negative cost was due to interest income of SEK 626 million exceeding interest cost of SEK 514 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 of obligation 2023	1)	Fair value of plan assets 2023	Total 2023	Present value of obligation 2022	1)	Fair value of plan assets 2022	Total 2022
Opening balance	83,691		–60,480	23,211	113,543		–81,355	32,188
Included in the income statement 2)
Current service cost	2,291		–	2,291	2,772		–	2,772
Past service cost and gains and losses on settlements	179		–	179	311		–	311
Interest cost/income (+/–)	2,839		–2,371	468	1,716		–1,475	241
Taxes and administrative expenses	–		78	78	–		62	62
Other	108		–7	101	43		1	44
	5,417		–2,300	3,117	4,842		–1,412	3,430

Remeasurements
Return on plan assets excluding amounts in interest expense/income	–		–663	–663	–		14,135	14,135
Actuarial gains/losses (–/+) arising from changes in demographic assumptions	267		–	267	1,118		–	1,118
Actuarial gains/losses (–/+) arising from changes in financial assumptions	–943		–	–943	–29,031		–	–29,031
Experience-based gains/losses (–/+)	347		–	347	3,236		–	3,236
	–329		–663	–992	–24,677		14,135	–10,542

Other changes
Translation difference	–179		110	–69	3,381		–3,297	84
Contributions and payments from:
Employers 3)	–1,737		–594	–2,331	–1,302		–652	–1,954
Plan participants	350		–342	8	334		–325	9
Payments from plans:
Benefit payments	–1,294		1,292	–2	–1,806		1,806	–
Settlements	–488		488	–	–10,759		10,755	–4
Other	104		–104	–	135		–135	–
Closing balance	85,535		–62,593	22,942	83,691		–60,480	23,211

1)	The weighted average duration of DBO is 16.8 (18.3) years.

2)	Excludes the impact of the asset ceiling of SEK 62 (55) million in 2023.

3)	The expected contribution to the plans during 2024 is SEK 2.3 billion.

Summary of Present Value of the Defined Benefit Obligation


Present value of the defined benefit obligation
	Sweden		US		UK		Other		Total
2023
DBO, closing balance		50,043		5,073		10,595		19,824		85,535
Of which partially or fully funded		50,043		4,560		10,595		16,702		81,900
Of which unfunded		–		513		–		3,122		3,635

2022
DBO, closing balance		50,441		5,365		9,866		18,019		83,691
Of which partially or fully funded		50,441		4,812		9,866		14,417		79,536
Of which unfunded		–		553		–		3,602		4,155

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)
2023
Cash and cash equivalents	271	181	681	133	1,266	22%
Equity securities	7,311	361	769	1,873	10,314	27%
Debt securities	14,335	3,591	5,681	9,285	32,892	21%
Real estate	5,461	–	–	544	6,005	100%
Investment funds	2,016	834	2,346	1,829	7,025	69%
Assets held by insurance company	–	–	2,437	1,679	4,116	100%
Other	233	–152	496	398	975	38%
Total	29,627	4,815	12,410	15,741	62,593
Of which real estate occupied by the Company	–	–	–	–	–
Of which securities issued by the Company	–	–	–	–	–

2022
Cash and cash equivalents	1,151	184	449	88	1,872	6%
Equity securities	6,803	419	1,113	2,791	11,126	50%
Debt securities	14,114	3,646	5,818	8,539	32,117	28%
Real estate	5,577	–	199	603	6,379	100%
Investment funds	917	789	2,417	578	4,701	74%
Assets held by insurance company	–	–	1,872	1,717	3,589	100%
Other	–41	73	131	533	696	15%
Total	28,521	5,111	11,999	14,849	60,480
Of which real estate occupied by the Company	–	–	–	–	–
Of which securities issued by the Company	–	–	–	–	–

1)	Asset class is presented based on the underlying exposure of the investment. This includes direct investment in securities or investment through pooled funds that invest in an asset class.

2)	Unquoted refers to assets classified as fair value level 2 and 3. Unquoted assets comprise mainly investments in pooled investment vehicles.

Summary of Financial and Demographic Actuarial Assumptions

Actuarial assumptions


Financial and demographic actuarial assumptions
	2023						2022
	Sweden		US		UK		Sweden		US		UK
Financial assumptions
Discount rate		2.1%		5.0%		4.8%		2.0%		5.4%		4.9%
Inflation rate		2.0%		2.5%		3.0%		2.3%		2.5%		3.1%
Salary increase rate		2.5%		4.0%		–		2.8%		3.0%		–
Demographic assumptions
Life expectancy after age 65 in years		23		23		23		23		22		23

Summary of Total Remeasurements in Other Comprehensive Income (Loss) Related to Post-Employment Benefits


Total remeasurements in Other comprehensive income related to post-employment benefits
	2023		2022
Actuarial gains and losses (+/–)		538		8,943
The effect of asset ceiling		–87		127
Swedish special payroll taxes		454		1,599
Total		905		10,669

Summary of Sensitivity Analysis of Significant Actuarial Assumptions

Sensitivity analysis of significant actuarial assumptions, SEK billion

2023

Impact on the DBO of a change
in assumptions

Sweden

Financial assumptions

Discount rate –0.5%

5.2

0.3

0.8

Discount rate +0.5%

–4.6

–0.2

–0.7

Inflation rate –0.5%

–4.4

–

–0.1

Inflation rate +0.5%

4.9

–

0.6

Salary increase rate –0.5%

–1.4

–

Salary increase rate +0.5%

1.5

–

Demographic assumptions

Longevity – 1 year

–2.1

–0.1

–0.3

Longevity + 1 year

2.1

0.1

0.3