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 | ||||||||||
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Property, plant and equipment |
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Depreciation |
4,103 | 4,421 | 4,705 | |||||||||
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Impairment losses/reversals of impairments |
2,211 | 148 | –16 | |||||||||
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Total |
6,314 | 4,569 | 4,689 | |||||||||
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Intangible assets |
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Amortizations |
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Capitalized development expenses |
2,681 | 1,815 | 1,379 | |||||||||
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Intellectual Property Rights, brands and other intangible assets |
1,667 | 2,650 | 4,139 | |||||||||
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Total amortizations |
4,348 | 4,465 | 5,518 | |||||||||
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Impairments |
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Capitalized development expenses |
2,245 | 85 | 20 | |||||||||
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Intellectual Property Rights, brands and other intangible assets |
2,019 | — | — | |||||||||
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Goodwill |
12,966 | — | — | |||||||||
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Total impairments |
17,230 | 85 | 20 | |||||||||
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Total |
21,578 | 4,550 | 5,538 | |||||||||
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Total depreciation, amortization and impairment losses on property, plant and equipment and intangible assets |
27,892 | 9,119 | 10,227 | |||||||||
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Taxes |
–9,805 | –6,200 | –2,835 | |||||||||
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Dividends from joint ventures/associated companies1) |
77 | 84 | 92 | |||||||||
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Undistributed earnings in joint ventures/ associated companies1) |
–21 | –26 | 38 | |||||||||
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Gains/losses on sales of investments and operations, intangible assets and PP&E, net2) |
–167 | –37 | –156 | |||||||||
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Other non-cash items3) |
607 | 3,172 | 3,245 | |||||||||
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Total adjustments to reconcile net income to cash |
18,583 | 6,112 | 10,611 | |||||||||
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| 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 | |||||||
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2017 |
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Cash flow from business combinations1) |
–62 | 459 | ||||||
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Acquisitions/divestments of other investments |
–227 | 106 | ||||||
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Total |
–289 | 565 | ||||||
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2016 |
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Cash flow from business combinations1) |
–781 | 25 | ||||||
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Acquisitions/divestments of other investments |
–203 | 337 | ||||||
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Total |
–984 | 362 | ||||||
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2015 |
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Cash flow from business combinations1) |
–1,867 | – | ||||||
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Acquisitions/divestments of other investments |
–334 | 1 | ||||||
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Total |
–2,201 | 1 | ||||||
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| 1) | See also Note C26, “Business combinations.” |
Reconciliation of liabilities arising from financing activities
| 2017 | ||||
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Opening balance |
26,686 | |||
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Cash flows |
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Proceeds from issuance of borrowings |
13,416 | |||
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Repayment of borrowings |
–4,830 | |||
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Non-cash changes |
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Effect of foreign exchange movement |
–2,155 | |||
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Changes in fair value |
–72 | |||
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Closing balance1) |
33,045 | |||
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| 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.