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 75,691m (72,872; 67,811) at December 31, 2015. 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

1)

Revaluation reserve, Hedge reserve, Available-for-sale assets and Translation reserve are included in the Provisions line in the balance sheet; see specification below.

2)

Including payroll tax.

3)

For a specification of income tax attributable to components in other comprehensive income, see below.

4)

Dividend SEK 5.25 (4.75; 4.50) per share pertains to owners of the Parent. For the 2015 fiscal year, the Board has decided to propose a divided of SEK 5.75 per share to the Annual General Meeting.

Value, January 1, 2013

2,350

6,830

–3,691

54,217

59,706

1,993

61,699

Profit for the period recognized in profit or loss

 

 

 

5,547

5,547

314

5,861

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)

 

 

 

1,927

1,927

1,927

Income tax attributable to components in other comprehensive income

 

 

 

–488

–488

–488

 

 

 

 

1,439

1,439

1,439

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

 

 

249

 

249

249

Transferred to profit or loss upon sale

 

 

 

Cash flow hedges:

 

 

 

 

 

 

 

Result from remeasurement of derivatives recognized in equity

 

 

–123

 

–123

–123

Transferred to profit or loss for the period

 

 

49

 

49

49

Transferred to cost of hedged investments

 

 

26

 

26

26

Translation differences in foreign operations

 

 

763

 

763

–107

656

Result from hedging of net investments in foreign operations

 

 

–423

 

–423

–423

Tax on items recognized directly in/transferred from equity 3)

 

 

–131

 

–131

–131

Other comprehensive income for the period, net after tax

 

 

410

1,439

1,849

–107

1,742

Comprehensive income for the period

 

 

410

6,986

7,396

207

7,603

 

 

 

 

 

 

 

 

Acquisition of non-controlling interests

 

 

–666

–666

2,482

1,816

Remeasurement effect upon acquisition of non-controlling interests

 

 

–4

–4

–4

Dividend, SEK 4.50 per share

 

 

 

–3,161

–3,161

–142

–3,303

BS Value, December 31

2,350

6,830

–3,281

57,372

63,271

4,540

67,811

 

 

 

 

 

 

 

 

2014

 

 

 

 

 

 

 

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

Transferred to profit or loss upon sale

 

 

 

 

 

 

 

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

 

 

–3,336

–3,336

–228

–3,564

BS Value, December 31

2,350

6,830

237

58,205

67,622

5,250

72,872

 

 

 

 

 

 

 

 

Value, January 1, 2015

2,350

6,830

237

58,205

67,622

5,250

72,872

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

Transferred to cost of hedged investments

 

 

 

 

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

Issue cost in associates

 

 

 

 

Acquisition of non-controlling interests

 

 

 

–40

–40

21

–19

Effect of confirmation of acquisition balance sheet

 

 

 

 

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

Equity, specification of reserves

 

Revaluation reserve 1)

 

Hedge reserve 2)

 

Available-for-sale assets

 

Translation reserve

SEKm

2015

2014

2013

 

2015

2014

2013

 

2015

2014

2013

 

2015

2014

2013

1)

Revaluation reserve includes effect on equity of step acquisitions.

2)

See also Note E6 for details of when profit or loss is expected to be recognized.

3)

Transfer to profit or loss of realized exchange gains relating to divested companies is included in the amount of SEK –m (–; 3).

Value, January 1

107

107

107

 

–188

–128

–87

 

659

519

270

 

–341

–3,779

–3,981

Available-for-sale financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Result from measurement at fair value recognized in equity

 

 

318

140

249

 

 

 

 

Transferred to profit or loss upon sale

 

 

–970

 

 

Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Result from remeasurement of derivatives recognized in equity

 

–499

–428

–123

 

 

 

 

Transferred to profit or loss for the period

 

342

344

49

 

 

 

 

Transferred to cost of hedged investments

 

3

26

 

 

 

 

Translation differences in foreign operations 3)

 

5

–9

–2

 

 

 

–1,661

4,606

765

Result from hedging of net investments in foreign operations

 

 

 

 

 

 

 

 

 

 

 

 

–58

–1,497

–423

Tax on items recognized directly in/transferred from equity

 

30

30

9

 

 

0

0

 

14

329

–140

Other comprehensive income for the period, net after tax

 

–122

–60

–41

 

–652

140

249

 

–1,705

3,438

202

Value, December 31

107

107

107

 

–310

–188

–128

 

7

659

519

 

–2,046

–341

–3,779

Specification of income tax attributable to other comprehensive income for the period

 

2015

2014

2013

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

2,562

–558

2,004

–2,925

660

–2,265

1,927

–488

1,439

Available-for-sale financial assets

–652

–652

140

0

140

249

0

249

Cash flow hedges

–157

30

–127

–81

30

–51

–48

9

–39

Translation differences in foreign operations

–1,871

 

–1,871

5,169

5,169

656

656

Other comprehensive income from associates

–17

–17

 

 

 

 

 

 

Result from hedging of net investments in foreign operations

–58

14

–44

–1,497

329

–1,168

–423

–140

–563

Other comprehensive income for the period

–193

–514

–707

806

1,019

1,825

2,361

–619

1,742

At December 31, 2015, the debt/equity ratio amounted to 0.39, which is below SCA’s long-term target of 0.70. The debt/equity ratio deviates from this target at times and, over the past ten-year period, has varied between 0.39 and 0.70. Change in liabilities and equity is described in chapter Financial position. SCA has a credit rating for long-term debt of Baa1 from Moody’s and A– 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.