11-K

11-K 1 d851940d11k.htm 11-K 11-K

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 11-K

ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2023

ERICSSON US 401(k) Plan

(Title of the Plan)

ERICSSON INC

Formerly Anaconda-Ericsson Inc. and Ericsson North America Inc.

6300 Legacy Drive

Plano, TX 75024

(Name and address of principal executive offices of the employer sponsoring the Plan)

TELEFONAKTIEBOLAGET LM ERICSSON

(Exact name of Issuer as specified in its charter)

LM ERICSSON TELEPHONE COMPANY

(Translation of Issuer’s Name into English)

Kingdom of Sweden

(Jurisdiction of Incorporation)

(Telefonplan, S-126-25 Stockholm Sweden)

(Name and address of principal executive offices of the Issuer of the securities)

ERICSSON US 401(k) PLAN

FINANCIAL STATEMENTS, SUPPLEMENTAL

SCHEDULE AND REPORT OF INDEPENDENT

REGISTERED PUBLIC ACCOUNTING FIRM

DECEMBER 31, 2023 AND 2022



ERICSSON US 401(k) PLAN INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE	Page

Report of Independent Registered Public Accounting Firm		3

Financial Statements:

Statements of Net Assets Available for Benefits at December 31, 2023 and 2022		5

Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2023		6

Notes to Financial Statements as of December 31, 2023 and 2022 and for the Year Ended December 31, 2023		7

Supplemental Schedule:

Schedule H, line 4i - Schedule of Assets (Held at End of Year) December 31, 2023		16


		Tel: 214-969-7007		600 North Pearl, Suite 1700
		Fax: 214-953-0722		Dallas, TX 75201
		www.bdo.com

Report of Independent Registered Public Accounting Firm

Plan Administrator

Ericsson US 401(k) Plan

Plano, Texas

Opinion on the Financial Statements

We have audited the accompanying statements of net assets available for benefits of the Ericsson US 401(k) Plan (the “Plan”) as of December 31, 2023 and 2022, the related statement of changes in net assets available for benefits for the year ended December 31, 2023, and the related notes (collectively, the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2023 and 2022, and the changes in net assets available for benefits for the year ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risk of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by the Plan’s management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Supplemental Information

The supplemental information in the accompanying Schedule H, Line 4i- Schedule of Assets (Held at End of Year) as of December 31, 2023, has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is presented for the purpose of additional analysis and is not a required part of the financial statements but included supplemental information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of

BDO USA, P.C., a Virginia professional corporation, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

BDO is the brand name for the BDO network and for each of the BDO Member Firms.

LOGO

1974. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.

LOGO

We have served as the Plan’s auditor since 2004.

Dallas, Texas

June 25, 2024

ERICSSON US 401(k) PLAN

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

DECEMBER 31, 2023 AND 2022

(Thousands of dollars)


	2023		2022
Assets
Investments
Investments, at fair value	$	3,228,043	$	2,810,623
Investments, at contract value		296,927		326,184


Total investments		3,524,970		3,136,807


Receivables
Notes receivable from participants		12,569		13,748
Participant’s contributions receivable		34		30
Employer’s contributions receivable		1,351		1,774
Other receivables		918		559


Total receivables		14,872		16,111


Total Assets		3,539,842		3,152,918


Payables
Operating and other payables		557		350


Net assets available for benefits	$	3,539,285	$	3,152,568

See accompanying notes to the financial statements.

ERICSSON US 401(k) PLAN

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

FOR THE YEAR ENDED DECEMBER 31, 2023

(Thousands of dollars)


ADDITIONS
Investment income:
Net appreciation in fair value of investments	$	425,348
Dividends		9,919
Earnings on SDA and separately managed accounts		122,339


Total investment income		557,606

Interest on participant notes receivable		998

Contributions:
Participants		79,291
Employer		51,724
Rollover		2,600


Total contributions		133,615


Total Additions		692,219

DEDUCTIONS
Benefits paid to participants		(299,922	)
Corrective distributions		(32	)
Deemed distributions		(526	)
Administrative expenses		(5,016	)


Total Deductions		(305,496	)


Net increase prior to transfer		386,723

Transfer out of the Plan		(6	)

Net increase after transfer		386,717


Net assets available for benefits:
Beginning of year		3,152,568


End of year	$	3,539,285

See accompanying notes to the financial statements.

ERICSSON US 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2023 AND 2022, AND FOR THE YEAR ENDED DECEMBER 31, 2023

(Thousands of dollars)

1.	THE PLAN

The following description of the Ericsson US 401(k) Plan (the “Plan”) provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan’s provision. The Plan was created by action of the board of directors of Ericsson Inc. (the “Company” or “Ericsson” or the “Employer”) on May 27, 1983, effective July 1, 1983. The Plan is a defined contribution plan and is administered by an administrative committee (the “Committee”) which monitors the investment objectives and performance of the Plan’s individual investment options.

The Plan is a single employer plan.

Effective August 24, 2009, a Master Trust was created to permit the commingling of trust assets of both the Plan and the Ericsson Services 401(k) Plan. On December 28, 2012 the Ericsson Services 401(k) Plan was merged into the Ericsson US 401(k) Plan formerly called the Ericsson Capital Accumulation and Savings Plan. Total assets transferred into the Plan due to the merger were approximately $140,800. Effective July 18, 2016 Great-West Trust or now called Empower Trust Company, LLC (“Trustee”) was made trustee of the Plan and the Master Trust was dissolved. Empower Retirement, the retirement services business of Great-West Financial, is the recordkeeper of the Plan.

Each pay period participant contributions are remitted to the Plan made to the Trustee for investment. There is currently one stable value fund, three mutual funds, seven commingled funds, twelve common collective trusts and one separately managed account. In addition, there is a self – directed brokerage account (“SDA”) to which participants may direct their investments. The SDA allows access to a wide variety of mutual funds, stocks and bonds. Brokerage services are provided through the Trustee. Participants can choose these options for their contributions as well as the Company contributions.

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The Plan’s financial statements are presented using the accrual method of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”).

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and changes therein. Actual results could differ from those estimates.

Risks, Uncertainties and Concentrations

The Plan provides for various investment options as described in Note 1. The underlying investments held by the investment options may include stocks, bonds, fixed income securities, mutual funds and other investment securities. Such investments are exposed to various risks, such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities and the

ERICSSON US 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2023 AND 2022, AND FOR THE YEAR ENDED DECEMBER 31, 2023

(Thousands of dollars)

level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in the values of investment securities in the near term could materially affect participants’ account balances and the amounts reported in the statement of net assets available for benefits.

As of December 31, 2023, there was one investment that represented 24% of investments. As of December 31, 2022, there was two investments that collectively represented 32% of investments. See the schedule of assets (held at end of year) for a complete list of investments as of December 31, 2023.

Contributions and Contributions Receivables

Contributions are recorded on the accrual method of accounting. Contributions receivable are obligations arising from amounts owed to the Plan from participants or the Employer that have not been included in the Plan’s investments at year end. Contributions receivable are recorded at cost, which approximates their fair value. Total contributions receivable were $1,385 and $1,804 at December 31, 2023 and 2022, respectively.

Valuation of Investments

The Plan’s investments are reported at fair value. At December 31, 2023 and 2022 the Plan held a Stable Value Fund which was reported at contract value. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). See Note 4 for further discussion of fair value and fair value measurements. See Note 8 for further discussion of the investment carried at contract value.

Investment Income

Purchases and sales of the investments within the Plan are reflected on a trade-date basis. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Other income includes the net appreciation (depreciation), interest and dividends of the investments held in the SDA and separately managed accounts.

Security Transactions

The Plan presents in the Statement of Changes in Net Assets Available for Benefits the net appreciation or depreciation in the fair value of its investments which consists of the realized gains and losses and the unrealized appreciation (depreciation) on those investments. Realized gains and losses on security transactions are determined on the trade date (the date the order to buy or sell is executed) as the difference between proceeds received and historical cost. Unrealized gains and losses represent the net change in market value of investments held during the year which are presented at fair value, with adjustments for investments sold.

Upon withdrawal from the Plan, participants invested in Company stock may elect to receive cash or Company stock. Whenever a participant receives stock, the difference between the cost of such stock and the market value on the applicable valuation date is reflected as a realized gain or loss of the Plan. Gains or losses are also realized whenever stocks are sold in satisfaction of the participants’ election to take cash upon withdrawal.

ERICSSON US 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2023 AND 2022, AND FOR THE YEAR ENDED DECEMBER 31, 2023

(Thousands of dollars)

Vesting and Forfeitures

Company and active participants’ capital accumulation contributions, and participants’ savings contributions, and the earnings thereon, are fully and immediately vested, with the exception of non-active participants transferred in from other plans, which continue to be subject to the former plans’ vesting requirements. Accordingly, the forfeiture balance as of December 31, 2023 and 2022 was $892 and $1,183, respectively. During 2023, $311 of forfeitures were used to pay Plan administrative expenses.

Expenses of the Plan

Certain expenses of the Plan and its administration, including fees and expenses of the Trustee, are paid by the Company. All taxes, commissions and other charges on purchases, sales and transfers of Company stock and other securities are paid by the Trustee out of the fund or account involved in such purchase or sale. Participants are responsible for their own managed account fees, brokerage fees, and loan fees. A quarterly administrative fee is charged to each participant’s account.

Administration

The Committee is responsible for the general administration of the Plan and for carrying out its provisions. Members of the Committee serve without compensation from the Plan.

Notes Receivable from Participants

Notes receivables from participants may be granted to participants in an amount not to exceed 50% of the participant’s contribution account. The maximum loan amount is fifty thousand dollars minus the participant’s highest loan balance (if any) during the previous 12 months; the minimum loan amount is one thousand dollars. Loans may be repaid through payroll deductions over a selected period between 12 months and 60 months. An employee is allowed only one loan at a time. If an employee misses payments, he/she will be required to make up the payments and accrued interest immediately. Failure to keep the loan current could result in the loan being classified as a “deemed distribution”, which is taxable income to the employee. Interest on the loan is set at the time of issuance, and the rate is the prime rate plus 1%. At December 31, 2023, interest rates range from 4.25% to 9.50%. Notes receivable from participants are reported at their outstanding principal plus any accrued interest.

Termination Priorities

The Company reserves the right, by action of the board, to amend, suspend or terminate the Plan. In the event that the Plan is terminated or the Company discontinues its contributions, all amounts allocated to the participants’ accounts and all assets held under the Plan will be fully vested and will be held for distribution to the participants.

The Company currently has no plans to terminate the Plan.

ERICSSON US 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2023 AND 2022, AND FOR THE YEAR ENDED DECEMBER 31, 2023

(Thousands of dollars)

Benefit Payments

At December 31, 2023 and 2022, there were no benefit claims which had been processed and approved for payment but not yet paid. At Empower Retirement, the recordkeeper of the Plan, benefit payments are determined, paid and taxed to participants based upon the date the check is first processed. For financial statement purposes, benefit payments are recorded when paid.

3.	PLAN PARTICIPATION

The Company offers the Plan for eligible U.S. employees to which qualified employees may elect to contribute stated percentages of eligible pay. Participation by eligible employees is voluntary and is defined as any regular salaried or hourly employee who is employed by a participating employer and receives regular compensation in the form of a weekly, biweekly, semi-monthly or monthly salary from an Ericsson U.S. payroll. All eligible employees may immediately participate in the Plan. At December 31, 2023 and 2022, the number of active participants were roughly 5,100 and 6,400, respectively.

Eligible participants may contribute on a pre-tax and/or Roth basis any whole percentage from 1% to 75% of their eligible earnings up to current IRS limits into the Capital Accumulation 401(k) portion of the Plan; participants may also contribute any whole percentage from 1% to 5% of their eligible earnings to the Savings portion on an after-tax basis. Effective September 2022, the Company increased this to 6%. Effective January 1, 2023, the Company increased the eligible earnings percentage from 50% to 75%. The Company contributes 3% of a participant’s eligible pay for employees who are not actively participating in the Company’s Defined Benefit Plan, whether or not the employee contributes. The Company also matches 100% of the first 3% and an additional 50% on the 4^th% and 5^th% contributed. All employee and Employer contributions are 100% vested immediately.

Participants may change their percentage payroll deduction elections at anytime during the year using the web-based Empower Retirement system. Participants may change investment percentages between funds at any time during the year. Participants may transfer existing fund balances to other available investment options at any time during the year. There are no restrictions on the transfer of investment balances from LM Ericsson Telephone Co. shares of Common Stock to other investment funds.

Each participant’s account is credited with the participant’s contributions, Company contributions and Plan earnings. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account. Participants may direct the investment of their account balances into various investment options offered by the Plan.

Participants may, at any time, request certain in-service withdrawals in the form of a normal or hardship withdrawal. Normal withdrawals may be requested from the Employee Savings account and Company Savings account for money that has been in the Plan for at least 24 full calendar months. Hardship withdrawals must meet certain requirements including approval by the Committee.

ERICSSON US 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2023 AND 2022, AND FOR THE YEAR ENDED DECEMBER 31, 2023

(Thousands of dollars)

4.	FAIR VALUE MEASUREMENTS

The accounting standards establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in Accounting Standards Codification “ASC” Topic 820; A) Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. B) Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost). C) Income approach: Techniques to convert future amounts to a single present amount based upon market expectation (including present value techniques, option-pricing and excess earnings models).

The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

Mutual Funds

Mutual funds represent investments with various registered investment managers. The fair values of these investments are determined by reference to the fund’s underlying assets, which are principally marketable equity and fixed income securities. Shares held in mutual funds traded on national securities exchanges are valued at the quoted market price as of December 31, 2023 and 2022 and classified as Level 1 assets.

Self-Directed Brokerage Accounts (SDA)

A majority of the SDA accounts include investments in cash and cash equivalents, common stock, and registered investment companies and are classified as Level 2 investments. Cash and cash equivalent investments include cash and short-term interest-bearing investments with initial maturities of three months or less. Such amounts are recorded at cost, plus accrued interest. Common stock traded in active markets on national securities exchanges are valued at closing prices on the last business day of each period presented. Securities traded in markets that are not considered active are valued based on quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. Securities that trade infrequently and therefore have little or no price transparency are valued using the Plan’s investment manager’s best estimates. Mutual funds in registered investment companies are valued as mentioned above.

Commingled Funds and Common Collective Trusts

Valued using the Net Asset Value (“NAV”) provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund minus applicable costs and liabilities and then divided by the number of shares outstanding. As these assets are measured at net asset value, they are therefore excluded from the fair value hierarchy and included in other.

ERICSSON US 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2023 AND 2022, AND FOR THE YEAR ENDED DECEMBER 31, 2023

(Thousands of dollars)

Pooled Separate Accounts

These investments consist of insurance company separate accounts whose investors include only qualified retirement plans and certain governmental retirement plans. The value of each pooled separate account is determined at the close of each business day based on the fair value of the underlying assets, which can consist of a single mutual fund or multiple securities. The value of the account is expressed as the NAV. The unit value is the dollar value of one unit and is determined at the close of each business day by dividing the fair value of the entire account by the total number of units in the account. Contributions to the account increase the number of units. Withdrawals from the account decrease the number of units. The increase or decrease in number of units is determined by dividing the amount of the contribution or withdrawal by the unit value for the day the transaction is made. As these assets are measured at net asset value, they are therefore excluded from the fair value hierarchy and included in other.

Common Stocks

Ericsson Inc. common stock and common stocks held in participant-directed brokerage accounts are stated at fair value as quoted on a recognized securities exchange and are valued at the last reported sales price on the last business day of the Plan year and are classified as Level 1 investments, except those held in the SDA and separately managed accounts.

Separately Managed Accounts

Self-managed fund consisting of a portfolio of assets under the management of a professional investment firm and primarily consist of common stock valued using prices obtained from independent pricing services and are classified as Level 2 investments.

The following tables provide information about the financial assets carried at fair value on a recurring basis as of December 31, 2023 and 2022.


December 31, 2023	Level 1		Level 2		Level 3		Other (a)		Total
Mutual funds	$	423,689	$	—	$	—	$	—	$	423,689
Separately managed accounts		—		237,230		—		—		237,230
Ericsson stock fund		27,275		—		—		—		27,275
Commingled funds		—		—		—		1,431,181		1,431,181
Common collective trusts		—		—		—		661,128		661,128
Pooled separate accounts		—		—		—		322,676		322,676
Self-directed brokerage accounts		—		124,864		—		—		124,864

Total investments at fair value	$	450,964	$	362,094	$	—	$	2,414,985	$	3,228,043

ERICSSON US 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2023 AND 2022, AND FOR THE YEAR ENDED DECEMBER 31, 2023

(Thousands of dollars)


December 31, 2022	Level 1		Level 2		Level 3		Other (a)		Total
Mutual funds	$	496,945	$	—	$	—	$	—	$	496,945
Separately managed accounts		—		233,955		—		—		233,955
Ericsson stock fund		26,416		—		—		—		26,416
Commingled funds		—		—		—		1,381,392		1,381,392
Common collective trusts		—		—		—		577,381		577,381
Self-directed brokerage accounts		—		94,534		—		—		94,534

Total investments at fair value	$	523,361	$	328,489	$	—	$	1,958,773	$	2,810,623

(a)	As these assets are measured at net asset value using the practical expedient they are therefore excluded from the fair value hierarchy and included in other.

5.	NET ASSET VALUE PER SHARE

The following table for December 31, 2023 and 2022, sets forth a summary of the Plan’s investments with a reported NAV using the practical expedient.

Fair Value Estimated Using NAV per Share

Investment

December 31
2023 Fair Value^(a)

December 31
2022 Fair Value^(a)

Unfunded
Commitment

Redemption
Frequency

Other
Redemption
Restrictions

Redemption Notice Period

Asset allocation fund^(b)

661,128

577,381

—

Daily

None

Daily

Intermediate-Term Bond ^(c)

88,562

90,188

—

Daily

None

Daily

Multiple Investment Trust^(d)

323,642

318,558

—

Daily

None

Daily

Mid-Cap Value Equity Trust ^(e)

967,307

773,217

—

Daily

None

Daily

International Large Blend Trust ^(f)

339,928

199,429

—

Daily

None

Daily

Small-Cap Value Equity Trust ^(g)

34,418

—

Daily

None

Daily

^(a)	The fair values of the investments have been estimated using the NAV of the investment.

^(b)

The asset allocation fund uses a strategy designed for investors expecting to retire around the year indicated in each fund’s name, with the allocation changing on an annual basis, becoming more conservative as the Fund nears the target retirement date. The funds invest in a combination of equity, fixed income and short-term JPMorgan Chase Bank, N.A Commingled Pension Trust Funds and/or funds maintained by unaffiliated banks and trust companies, which includes vehicles with lower levels of active risk.

^(c)	Intermediate-term bond funds aim to generate excess return from top-down sector allocation and bottom-up subsector/security selection. Duration and yield curve are tactically managed.

^(d)	Multiple investment trust is a combination of funds including large cap growth equity trust, mid cap value equity trust, small cap value equity trust, value yield equity trust, global growth equity trust and real estate securities trust.

^(e)	Mid-cap value equity trust invests its assets in a majority of equity securities of medium-sized companies.

^(f)	International Large Blend Trust measures the investment return of stocks issued by companies located in developed and emerging markets, excluding the United States.

^(g)	Small-cap value equity trust invests its assets in a majority of equity securities of small-sized companies.

ERICSSON US 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2023 AND 2022, AND FOR THE YEAR ENDED DECEMBER 31, 2023

(Thousands of dollars)

6.	PARTY-IN-INTEREST AND RELATED PARTY TRANSACTIONS

Certain Plan investments are Common Stock shares of LM Ericsson Telephone Company, a related party of Ericsson Inc. Ericsson Inc. sponsors the plan; therefore, these investments qualify as related party transactions. The Plan recorded purchases of $5,834 and sales of $7,565 of the Company’s stock during the year ended December 31, 2023.

Plan assets include investments in funds managed by the Trustee and affiliates of the Trustee. These transactions are covered by an exemption from the prohibited transaction provisions of ERISA and the IRC. Notes receivable are secured by the vested balance of participant accounts, and, as such, these transactions qualify as party-in-interest transactions. Fees paid by the Plan for the investment management services are included in net appreciation (depreciation) in fair value of investments.

7.	TAX STATUS OF THE PLAN

Management believes that the Plan is qualified under section 401(a) of the Internal Revenue Code (“IRC”) and therefore, the trust is exempt from taxation under section 501(a). The Internal Revenue Service granted a favorable letter of determination to the Plan covering its most recent amendments on April 6, 2017. Generally, contributions to a qualified plan are deductible by the Company when made, earnings of the trust are tax exempt and participants are not taxed on their benefits until withdrawn from the Plan.

Although the Plan has been amended since receiving the determination letter, management believes that the Plan is designed, and is currently being operated, in compliance with the applicable requirements of the IRC and, therefore, believe that the Plan is qualified, and the related trust is tax-exempt.

GAAP requires plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The Plan Administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2023, there are no uncertain positions taken or expected to be taken that would require recognition of the liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.

8.	FINANCIAL ASSETS CARRIED AT CONTRACT VALUE

The following table provides information as of December 31, 2023 and 2022 about the financial assets carried at contract value:


As of December 31,	2023		2022
Financial assets at contract value:
Putnam Stable Value Fund	$	296,927	$	326,184

In 2020, the Plan entered into a contract with the Putnam Fiduciary Trust Company, LLC for the Ericsson US 401(k) Putnam Stable Value Fund. In March 2022, the Ericsson US 401(k) Putnam Stable Value Fund was replaced with the Putnam Stable Value Fund.

ERICSSON US 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2023 AND 2022, AND FOR THE YEAR ENDED DECEMBER 31, 2023

(Thousands of dollars)

The Plan holds investments in synthetic guaranteed investment contracts (“synthetic GICs”) as part of the stable value fund. The investments in synthetic GICs are presented at fair value on the table of the investments held in the Plan. The fair value of the synthetic GICs equals the total of the fair value of the underlying assets plus the total wrap rebid value, which is calculated by discounting the annual rebid fee, due to rebid, over the duration of the contract assets.

In determining the net assets available for benefits, the synthetic GICs are recorded at their contract values, which are equal to principal balance plus accrued interest. As provided in ASC 962, an investment contract is generally valued at contract value, rather than fair value, to the extent it is fully benefit-responsive.

The Stable Value Funds are credited with earnings on the underlying investments and charged for participant withdrawals and administrative expenses. The synthetic GICs issuers are contractually obligated to repay the principal and a specified interest rate that is guaranteed to the Plan.

The GICs are included in the financial statements at contract value as reported to the Plan by the Trustee, the investment manager. Contract value represents contributions made under the contract, plus earnings, less participant withdrawals and administrative expenses. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. There are currently no reserves against contract values for credit risk of the contract issuers or otherwise.

9.	SUBSEQUENT EVENTS

The Plan has evaluated the effects of events that have occurred subsequent to December 31, 2023, through the issuance of these financial statements and have identified no subsequent events.

ERICSSON US 401(k) Plan

SCHEDULE H, LINE 4i – SCHEDULE OF ASSETS (HELD AT END OF YEAR) DECEMBER 31, 2023

(Thousands of dollars)

EIN: 06-1119960

Plan Number: 006

(a)

(b)

Identity of Issue, Borrower,

Lessor or Similar Party

(c)

Description of Investment, Including Maturity Date, Rate

of Interest, Collateral, Par or Maturity Value

(d)

Cost

(e)

Current Value

Stable Value Fund:

Putnam Fiduciary Trust

PUTNAM STABLE VALUE FUND

296,927

***

Company

Common Collective Trusts:

Vanguard Funds

VANGUARD TARGET RETIRE TRUST PLUS INCOME

31,513

Vanguard Funds

VANGUARD TARGET RETIRE TRUST PLUS 2020

42,684

Vanguard Funds

VANGUARD TARGET RETIRE TRUST PLUS 2025

100,615

Vanguard Funds

VANGUARD TARGET RETIRE TRUST PLUS 2030

129,223

Vanguard Funds

VANGUARD TARGET RETIRE TRUST PLUS 2035

116,082

Vanguard Funds

VANGUARD TARGET RETIRE TRUST PLUS 2040

88,704

Vanguard Funds

VANGUARD TARGET RETIRE TRUST PLUS 2045

66,279

Vanguard Funds

VANGUARD TARGET RETIRE TRUST PLUS 2050

50,039

Vanguard Funds

VANGUARD TARGET RETIRE TRUST PLUS 2055

21,271

Vanguard Funds

VANGUARD TARGET RETIRE TRUST PLUS 2060

11,391

Vanguard Funds

VANGUARD TARGET RETIRE TRUST PLUS 2065

2,941

Vanguard Funds

VANGUARD TARGET RETIRE TRUST PLUS 2070

386

661,128

Mutual Funds:

T. Rowe Price

T. ROWE PRICE QM US SMALL-CAP GR EQ I

36,553

Vanguard Funds

VANGUARD SMALL-CAP INDEX-INST PLUS

131,465

Vanguard Funds

VANGUARD MID-CAP INDEX-INST PLUS

255,670

423,689

Commingled funds and pooled separate accounts:

Driehaus

DRIEHAUS EMERGING MARKETS GROWTH CL C

19,302

T. Rowe Price Funds

T ROWE PRICE MID-CAP VALUE EQUITY TRUST-D

51,776

American Century Funds

AMERICAN CENTURY US VALUE YIELD EQUITY TRUST-2

119,315

Vanguard Funds

VANGUARD INST TOTAL INTL STK MKT IDX TST

202,800

Vanguard Funds

VANGUARD INSTITUTIONAL 500 INDEX TRUST

833,662

Vanguard Funds

VANGUARD INSTL TOTAL BOND MRKT IDX TRUST

204,326

Prudential Retirement Insurance and Annuity Company

CAPITAL GROUP EUROPACIFIC GROWTH FUND SA

117,826

Prudential Retirement Insurance and Annuity Company

EAGLE MID CAP GROWTH FUND (IS PLATFORM)

81,870

Prudential Retirement Insurance and Annuity Company

SMALL CAP VALUE/VICTORY

34,418

Prudential Retirement Insurance and Annuity Company

CORE PLUS BOND/PGIM FUND

88,562

1,753,857

ERICSSON US 401(k) Plan

SCHEDULE H, LINE 4i – SCHEDULE OF ASSETS (HELD AT END OF YEAR) DECEMBER 31, 2023

(Thousands of dollars)

EIN: 06-1119960

Plan Number: 006

(a)

(b)

Identity of Issue, Borrower,

Lessor or Similar Party

(c)

Description of Investment, Including Maturity Date, Rate

of Interest, Collateral, Par or Maturity Value

(d)
Cost

(e)
Current Value

Separately managed

accounts:

Jennison

ADOBE INC COMMON STOCK

4,477

Jennison

ADOBE INC COMMON STOCK

4,477

Jennison

ADVANCED MICRO DEVICES INC COMMON STOCK

9,243

Jennison

AIRBNB INC COMMON STOCK

1,411

Jennison

ALPHABET INC COMMON STOCK CL.A

6,650

Jennison

ALPHABET INC COMMON STOCK CL.C

6,623

Jennison

AMAZON.COM INC COMMON STOCK

18,229

Jennison

AMERICAN TOWER CORP COMMON STOCK

2,858

Jennison

APPLE INC COMMON STOCK

10,577

Jennison

ASML HOLDING NV COMMON STOCK

2,383

Jennison

ARM HOLDINGS PLC COMMON STOCK

1,339

Jennison

ASTRAZENECA PLC COMMON STOCK

2,822

Jennison

BOEING CO COMMON STOCK

2,382

Jennison

BROADCOM INC COMMON STOCK

6,596

Jennison

CADENCE DESIGN SYSTEMS INC COMMON STOCK

2,963

Jennison

CHIPOTLE MEXICAN GRILL INC COMMON STOCK

1,420

Jennison

COSTCO WHOLESALE CORP COMMON STOCK

5,034

Jennison

CROWDSTRIKE HOLDINGS INC COMMON STOCK CL.A

3,042

Jennison

DR ING HC F PORSCHE AG COMMON STOCK

1,172

Jennison

ELI LILLY & CO COMMON STOCK

7,957

Jennison

HOME DEPOT INC COMMON STOCK

3,800

Jennison

HUBSPOT INC COMMON STOCK

1,374

Jennison

INTUITIVE SURGICAL INC COMMON STOCK

2,942

Jennison

KEYSIGHT TECHNOLOGIES

1,193

Jennison

L’OREAL SA COMMON STOCK

2,527

Jennison

LULULEMON ATHLETICA INC COMMON STOCK

4,404

Jennison

LVMH MOET HENNESSY COMMON STOCK

3,562

Jennison

MARRIOTT INTERNATIONAL INC COMMON STOCK

2,446

Jennison

MASTERCARD INC COMMON STOCK CL.A

6,574

Jennison

MERCADOLIBRE INC COMMON STOCK

4,308

Jennison

META PLATFORMS INC COMMON STOCK

9,013

Jennison

MICROSOFT CORP COMMON STOCK

18,727

Jennison

MICRON TECHNOLOGY INC COMMON STOCK

1,252

Jennison

MOBILEYE GLOBAL INC COMMON STOCK

617

Jennison

MONGODB INC COMMON STOCK

2,770

Jennison

MOODYS CORP COMMON STOCK

1,733

Jennison

NETFLIX INC COMMON STOCK

5,369

Jennison

NIKE INC COMMON STOCK

1,517

Jennison

NOVO-NORDISK AS COMMON STOCK - SPONSORED ADR

5,288

Jennison

NVIDIA CORP COMMON STOCK

14,338

Jennison

O REILLY AUTOMOTIVE INC COMMON STOCK

2,025

Jennison

PALO ALTO NETWORKS INC COMMON STOCK

681

Jennison

SALESFORCE COM INC COMMON STOCK

4,734

Jennison

SERVICENOW INC COMMON STOCK

4,125

Jennison

SNOWFLAKE INC COMMON STOCK

3,078

Jennison

TESLA INC COMMON STOCK

8,107

Jennison

TJX COMPANIES INC COMMON STOCK

2,352

ERICSSON US 401(k) Plan

SCHEDULE H, LINE 4i – SCHEDULE OF ASSETS (HELD AT END OF YEAR) DECEMBER 31, 2023

(Thousands of dollars)

EIN: 06-1119960

Plan Number: 006

(a)

(b)

Identity of Issue, Borrower,

Lessor or Similar Party

(c)

Description of Investment, Including Maturity Date, Rate

of Interest, Collateral, Par or Maturity Value

(d)
Cost

(e)
Current Value

Jennison

TRADE DESK INC/THE COMMON STOCK CL.A

1,487

Jennison

UBER TECHNOLOGIES INC COMMON STOCK

4,610

Jennison

UNITEDHEALTH GROUP INC COMMON STOCK

4,015

Jennison

VERTEX PHARMACEUTICALS INC COMMON STOCK

3,182

Jennison

VISA INC COMMON STOCK CL.A

6,942

Jennison

FEDERATED GOVERNMENT OBLIGATIONS IS #5

960

237,230

Self-Directed Brokerage Account

Various Investments, Including Registered Investment Companies, Common Stocks, Money Market Funds and Cash

124,864

Ericsson

Ericsson Stock Fund

27,275

Total Investments

3,524,970

Participant Loans

Interest rates of 4.25% to 9.50% with various maturity dates

12,569

Total

2,537,539

*	Party In Interest

**	Not Required For Participant Directed Accounts

***	All investments were stated at fair value as of December 31, 2023 with the exception of the Stable Value Fund, which is stated at contract value.

EXHIBIT INDEX


Exhibit No.

99.1 Consent of Independent Accountants – Filed herewith

SIGNATURES

The Plan. Pursuant to the requirements of the Securities and Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

Ericsson US 401(k) Plan

Date: 06/25/2024

LOGO

Mert Canberk

Head of Total Rewards, Region North America