E8. Equity
AP ACCOUNTING PRINCIPLES
Transaction costs directly relating to the issue of new shares or options are recognized, net after tax, in equity as a reduction in the issue proceeds. Expenditure for the purchase of SCA’s treasury shares reduces retained earnings in equity in the Parent Company and the portion of consolidated equity that pertains to owners of the Parent. When these are sold, the sales proceeds are included in retained earnings in the equity pertaining to owners of the Parent.
Equity totaled SEK 79,519m (75,691; 72,872) at December 31, 2016. The following tables show the distribution and profit for the period.
SEKm |
Share capital |
Other capital provided |
Reserves 1) |
Retained earnings |
Equity attributable to SCA’s shareholders |
Non-controlling interests |
Total equity |
||||||||
|
|||||||||||||||
Value, January 1, 2016 |
2,350 |
6,830 |
–2,242 |
63,463 |
70,401 |
5,290 |
75,691 |
||||||||
IS Profit for the period recognized in profit or loss |
|
|
|
5,570 |
5,570 |
442 |
6,012 |
||||||||
Other comprehensive income for the period |
|
|
|
|
|
|
|
||||||||
Items that cannot be transferred to profit for the period |
|
|
|
|
|
|
|
||||||||
Actuarial gains and losses relating to defined benefit pension plans 2) |
|
|
|
–1,526 |
–1,526 |
1 |
–1,525 |
||||||||
Income tax attributable to components in other comprehensive income |
|
|
|
411 |
411 |
– |
411 |
||||||||
|
|
|
|
–1,115 |
–1,115 |
1 |
–1,114 |
||||||||
Items that have been or can be transferred to profit for the period |
|
|
|
|
|
|
|
||||||||
Available-for-sale financial assets: |
|
|
|
|
|
|
|
||||||||
Result from measurement at fair value recognized in equity |
|
|
–1 |
|
–1 |
|
–1 |
||||||||
Cash flow hedges: |
|
|
|
|
|
|
|
||||||||
Result from remeasurement of derivatives recognized in equity |
|
|
495 |
|
495 |
|
495 |
||||||||
Transferred to profit or loss for the period |
|
|
274 |
|
274 |
|
274 |
||||||||
Transferred to cost of hedged investments |
|
|
–19 |
|
–19 |
|
–19 |
||||||||
Translation differences in foreign operations |
|
|
2,418 |
|
2,418 |
234 |
2,652 |
||||||||
Result from hedging of net investments in foreign operations |
|
|
–437 |
|
–437 |
|
–437 |
||||||||
Other comprehensive income from associates |
|
|
|
12 |
12 |
|
12 |
||||||||
Tax on items recognized directly in/transferred from equity 3) |
|
|
–88 |
–1 |
–89 |
|
–89 |
||||||||
Other comprehensive income for the period, net after tax |
|
|
2,642 |
–1,104 |
1,538 |
235 |
1,773 |
||||||||
Comprehensive income for the period |
|
|
2,642 |
4,466 |
7,108 |
677 |
7,785 |
||||||||
Private placement to non-controlling interests |
|
|
|
240 |
240 |
199 |
439 |
||||||||
Private placement to non-controlling interests, dilution |
|
|
|
–110 |
–110 |
110 |
– |
||||||||
Issue expenses, private placement |
|
|
|
–4 |
–4 |
–4 |
–8 |
||||||||
Acquisition of non-controlling interests |
|
|
|
–799 |
–799 |
643 |
–156 |
||||||||
Acquisition of non-controlling interests, dilution |
|
|
|
348 |
348 |
–348 |
– |
||||||||
Remeasurement effect upon acquisition of non-controlling interests |
|
|
|
–4 |
–4 |
|
–4 |
||||||||
Dividend, SEK 5.75 per share 4) |
|
|
|
–4,038 |
–4,038 |
–190 |
–4,228 |
||||||||
BS Value, December 31 |
2,350 |
6,830 |
400 |
63,562 |
73,142 |
6,377 |
79,519 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Value, January 1, 2015 |
2,350 |
6,830 |
237 |
58,205 |
67,622 |
5,250 |
72,872 |
||||||||
IS Profit for the period recognized in profit or loss |
|
|
|
7,002 |
7,002 |
450 |
7,452 |
||||||||
Other comprehensive income for the period |
|
|
|
|
|
|
|
||||||||
Items that cannot be transferred to profit for the period |
|
|
|
|
|
|
|
||||||||
Actuarial gains and losses relating to defined benefit pension plans 2) |
|
|
|
2,562 |
2,562 |
– |
2,562 |
||||||||
Income tax attributable to components in other comprehensive income |
|
|
|
–558 |
–558 |
– |
–558 |
||||||||
|
|
|
|
2,004 |
2,004 |
– |
2,004 |
||||||||
Items that have been or can be transferred to profit for the period |
|
|
|
|
|
|
|
||||||||
Available-for-sale financial assets: |
|
|
|
|
|
|
|
||||||||
Result from measurement at fair value recognized in equity |
|
|
318 |
|
318 |
|
318 |
||||||||
Transferred to profit or loss upon sale |
|
|
–970 |
|
–970 |
|
–970 |
||||||||
Cash flow hedges: |
|
|
|
|
|
|
|
||||||||
Result from remeasurement of derivatives recognized in equity |
|
|
–499 |
|
–499 |
|
–499 |
||||||||
Transferred to profit or loss for the period |
|
|
342 |
|
342 |
|
342 |
||||||||
Translation differences in foreign operations |
|
|
–1,656 |
|
–1,656 |
–215 |
–1,871 |
||||||||
Result from hedging of net investments in foreign operations |
|
|
–58 |
|
–58 |
|
–58 |
||||||||
Other comprehensive income from associates |
|
|
|
–17 |
–17 |
|
–17 |
||||||||
Tax on items recognized directly in/transferred from equity 3) |
|
|
44 |
|
44 |
|
44 |
||||||||
Other comprehensive income for the period, net after tax |
|
|
–2,479 |
1,987 |
–492 |
–215 |
–707 |
||||||||
Comprehensive income for the period |
|
|
–2,479 |
8,989 |
6,510 |
235 |
6,745 |
||||||||
Acquisition of non-controlling interests |
|
|
|
–40 |
–40 |
21 |
–19 |
||||||||
Remeasurement effect upon acquisition of non-controlling interests |
|
|
|
–4 |
–4 |
|
–4 |
||||||||
Dividend, SEK 5.25 per share 4) |
|
|
|
–3,687 |
–3,687 |
–216 |
–3,903 |
||||||||
BS Value, December 31 |
2,350 |
6,830 |
–2,242 |
63,463 |
70,401 |
5,290 |
75,691 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Value, January 1, 2014 |
2.350 |
6.830 |
–3,281 |
57.372 |
63.271 |
4.540 |
67.811 |
||||||||
IS Profit for the period recognized in profit or loss |
|
|
|
6,599 |
6,599 |
469 |
7,068 |
||||||||
Other comprehensive income for the period |
|
|
|
|
|
|
|
||||||||
Items that cannot be transferred to profit for the period |
|
|
|
|
|
|
|
||||||||
Actuarial gains and losses relating to defined benefit pension plans 2) |
|
|
|
–2,925 |
–2,925 |
– |
–2,925 |
||||||||
Income tax attributable to components in other comprehensive income |
|
|
|
660 |
660 |
– |
660 |
||||||||
|
|
|
|
–2,265 |
–2,265 |
– |
–2,265 |
||||||||
Items that have been or can be transferred to profit for the period |
|
|
|
|
|
|
|
||||||||
Available-for-sale financial assets: |
|
|
|
|
|
|
|
||||||||
Result from measurement at fair value recognized in equity |
|
|
140 |
|
140 |
– |
140 |
||||||||
Cash flow hedges: |
|
|
|
|
|
|
|
||||||||
Result from remeasurement of derivatives recognized in equity |
|
|
–428 |
|
–428 |
– |
–428 |
||||||||
Transferred to profit or loss for the period |
|
|
344 |
|
344 |
– |
344 |
||||||||
Transferred to cost of hedged investments |
|
|
3 |
|
3 |
– |
3 |
||||||||
Translation differences in foreign operations |
|
|
4,597 |
|
4,597 |
572 |
5,169 |
||||||||
Result from hedging of net investments in foreign operations |
|
|
–1,497 |
|
–1,497 |
– |
–1,497 |
||||||||
Tax on items recognized directly in/transferred from equity 3) |
|
|
359 |
|
359 |
– |
359 |
||||||||
Other comprehensive income for the period, net after tax |
|
|
3,518 |
–2,265 |
1,253 |
572 |
1,825 |
||||||||
Comprehensive income for the period |
|
|
3,518 |
4,334 |
7,852 |
1,041 |
8,893 |
||||||||
Issue cost in associates |
|
|
– |
–49 |
–49 |
– |
–49 |
||||||||
Acquisition of non-controlling interests |
|
|
– |
–112 |
–112 |
–61 |
–173 |
||||||||
Effect of confirmation of acquisition balance sheet |
|
|
– |
– |
– |
–42 |
–42 |
||||||||
Remeasurement effect upon acquisition of non-controlling interests |
|
|
– |
–4 |
–4 |
– |
–4 |
||||||||
Dividend, SEK 4.75 per share 4) |
|
|
– |
–3,336 |
–3,336 |
–228 |
–3,564 |
||||||||
BS Value, December 31 |
2,350 |
6,830 |
237 |
58,205 |
67,622 |
5,250 |
72,872 |
For further information regarding equity, see Parent Company Note PC11.
|
Revaluation reserve 1) |
|
Hedge reserve 2) |
|
Available-for-sale assets |
|
Translation reserve |
||||||||||||||
SEKm |
2016 |
2015 |
2014 |
|
2016 |
2015 |
2014 |
|
2016 |
2015 |
2014 |
|
2016 |
2015 |
2014 |
||||||
|
|||||||||||||||||||||
Value, January 1 |
107 |
107 |
107 |
|
–310 |
–188 |
–128 |
|
7 |
659 |
519 |
|
–2,046 |
–341 |
–3,779 |
||||||
Available-for-sale financial assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Result from measurement at fair value recognized in equity |
– |
– |
– |
|
– |
– |
– |
|
–1 |
318 |
140 |
|
|
|
|
||||||
Transferred to profit or loss upon sale |
– |
– |
– |
|
– |
– |
– |
|
– |
–970 |
– |
|
|
|
– |
||||||
Cash flow hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Result from remeasurement of derivatives recognized in equity |
– |
– |
– |
|
495 |
–499 |
–428 |
|
– |
– |
– |
|
– |
– |
– |
||||||
Transferred to profit or loss for the period |
– |
– |
– |
|
274 |
342 |
344 |
|
– |
– |
– |
|
– |
– |
– |
||||||
Transferred to cost of hedged investments |
– |
– |
– |
|
–19 |
– |
3 |
|
– |
– |
– |
|
– |
– |
– |
||||||
Translation differences in foreign operations 3) |
– |
– |
– |
|
–1 |
5 |
–9 |
|
– |
– |
– |
|
2,419 |
–1,661 |
4,606 |
||||||
Result from hedging of net investments in foreign operations |
|
|
|
|
|
|
|
|
|
|
|
|
–437 |
–58 |
–1,497 |
||||||
Tax on items recognized directly in/transferred from equity |
– |
– |
– |
|
–184 |
30 |
30 |
|
– |
– |
0 |
|
96 |
14 |
329 |
||||||
Other comprehensive income for the period, net after tax |
– |
– |
– |
|
565 |
–122 |
–60 |
|
–1 |
–652 |
140 |
|
2,078 |
–1,705 |
3,438 |
||||||
Value, December 31 |
107 |
107 |
107 |
|
255 |
–310 |
–188 |
|
6 |
7 |
659 |
|
32 |
–2,046 |
–341 |
|
2016 |
|
2015 |
|
2014 |
||||||
SEKm |
Before tax |
Tax effect |
After tax |
|
Before tax |
Tax effect |
After tax |
|
Before tax |
Tax effect |
After tax |
Actuarial gains and losses relating to defined benefit pension plans |
–1,525 |
411 |
–1,114 |
|
2,562 |
–558 |
2,004 |
|
–2,925 |
660 |
–2,265 |
Available-for-sale financial assets |
–1 |
– |
–1 |
|
–652 |
– |
–652 |
|
140 |
0 |
140 |
Cash flow hedges |
750 |
–184 |
566 |
|
–157 |
30 |
–127 |
|
–81 |
30 |
–51 |
Translation differences in foreign operations |
2,652 |
– |
2,652 |
|
–1,871 |
– |
–1,871 |
|
5,169 |
– |
5,169 |
Other comprehensive income from associates |
12 |
–1 |
11 |
|
–17 |
– |
–17 |
|
– |
– |
– |
Result from hedging of net investments in foreign operations |
–437 |
96 |
–341 |
|
–58 |
14 |
–44 |
|
–1,497 |
329 |
–1,168 |
Other comprehensive income for the period |
1,451 |
322 |
1,773 |
|
–193 |
–514 |
–707 |
|
806 |
1,019 |
1,825 |
At December 31, 2016, the debt/equity ratio amounted to 0.44. Change in liabilities and equity is described under Financial position. SCA’s target for capital structure is to establish an effective capital structure, while at the same time ensuring long-term access to loan financing. Cash flow in relation to net debt is to be taken into consideration in the target to maintain a solid investment grade rating. SCA has a credit rating for long-term debt of Baa1 from Moody’s and BBB+ from Standard & Poor’s. SCA’s financial risk management is described in the Risk and risk management section. SCA’s dividend policy and capital structure are described in chapter The SCA share.