##### Table of Contents

 

 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

 

**
 
**

**FORM 20-F**

 

**
 
**

**or**

 

**For the Fiscal Year Ended December 31, 2010**

**or**

 

**For the transition period from/to**

**or**

 

**Date of event requiring this shell company report:**

**Commission file number 000–12033**

 

**
 
**

**TELEFONAKTIEBOLAGET LM ERICSSON**

**(Exact Name of Registrant as Specified in Its Charter)**

**LM ERICSSONTELEPHONE COMPANY**

**(Translation of Registrant’s Name into English)**

 

**
 
**

**Kingdom of Sweden**

**(Jurisdiction of Incorporation or Organization)**

**SE-164 83 Stockholm,Sweden**

**(Address of Principal Executive Offices)**

**Roland Hagman, Vice President Group Function Financial Control**

**Telephone: +46 8 719 53 80, Facsimile: +46 8 719 42 22**

**SE-164 83 Stockholm, Sweden**

**(Name, Telephone, E-mail and/or Facsimile Number and Address of Company Contact Person)**

 

**
 
**

**Securitiesregistered or to be registered pursuant to Section 12(b) of the Act:**

 

 

**Securities registered pursuant to Section 12(g) of the Act:**

**None**

**Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:**

**None**

 

**
 
**

Indicate thenumber of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the Annual Report: 

 

Indicate by check markif the registrant is a well-seasoned issuer, as defined in Rule 405 of the SecuritiesAct.    Yes  x    No   ̈

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant toSection 13 or 15(d) of the Securities Exchange Act of 1934.    Yes   ̈    No  x

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90days.    Yes  x    No   ̈

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every InteractiveData File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post suchfiles).    Yes   ̈    No   ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. Seedefinition of “accelerated filer” and “large accelerated filer” in Rule 12b-2 of the Exchange Act. 

x  Large accelerated filer             ̈  Accelerated filer             ̈  Non-accelerated filer 

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing: 

US GAAP   ̈    International Financial ReportingStandards as issued by the International Accounting Standards Board  x    Other   ̈

Indicate by check mark which financial statement item the registrant has elected tofollow.    Item 17  x    Item 18   ̈

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the ExchangeAct).    Yes   ̈    No  x

 

 

 

Table of Contents
ERICSSON ANNUAL REPORT ON FORM 20-F 2010 

 
**CONTENTS**

 

FORM 20-F 2010 CROSS REFERENCE TABLE
   i  
LETTER FROM THE CEO
   1  
OUR BUSINESS
   3  
OUR SOLUTIONS
   4  
OUR ASSETS
   11  
2010 HIGHLIGHTS
   13  
FIVE-YEAR SUMMARY
   15  
SHARE INFORMATION
   16  
LETTER FROM THE CHAIRMAN
   24  
BOARD OF DIRECTORS’ REPORT
   25  
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
   67  
CONSOLIDATED FINANCIAL STATEMENTS
   68  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
   73  
RISK FACTORS
   167  
FORWARD-LOOKING STATEMENTS
   175  
REMUNERATION REPORT
   177  
CORPORATE GOVERNANCE REPORT 2010
   185  
UNCERTAINTIES IN THE FUTURE
   220  
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
   221  
SUPPLEMENTAL INFORMATION
   222  
SHAREHOLDER INFORMATION
   240  
GLOSSARY 
   243  
FINANCIAL TERMINOLOGY
   246  
SIGNATURES
   248  
 
Table of Contents
ERICSSON ANNUAL REPORT ON FORM 20-F 2010 

 
**FORM 20-F 2010 CROSS REFERENCE TABLE**

*Our Annual Report on Form 20-F consists of the English version of our Swedish Annual Report for 2010, with certainadjustments made to comply with U.S. requirements, together with certain other information required by Form 20-F which is set forth under the heading Supplemental Information. The following cross reference table indicates where information requiredby Form 20-F may be found in this document.*

 

**Form 20-F Item Heading**
  
**Location in Document**
  **Page****Number** 
**PART I**
    
**1**
  **Identity of Directors, etc.**  N/A  
**2**
  **Offer Statistics & Timetable**  N/A  
**3**
  **Key Information**      **A**  **Selected Financial Data**  **Five-Year Summary**   15        **Supplemental Information**        
Exchange Rates
   224    **B**  **Capitalization & Indebtedness**  N/A   -    **C**  **Reason for Offer & Use of Proceeds**  N/A   -    **D**  **Risk Factors**  **Risk Factors**   167  
**4**
  **Info on the Company**      **A**  **History and Development of the Company**  **Our Solutions**        
Mobile Broadband
   4        
Managed Services
   8        
Operations & Business Support Systems
   9        **Board of Directors’ Report**        
Vision
   26        
Strategy
   27        
Business Focus
   29        
Cash Flow—Capital Expenditures
   43        
**Notes to the Consolidated Financial Statements**
        
Note C26 Business Combinations
   145        
Note C33 Events After the Balance Sheet Date
   166        **Supplemental Information**        
General Facts on the Company
   222        
Company History and Development
   223    **B**  **Business Overview**  **Our Business**   3        **Our Solutions**   4        **Our Assets**   11        **Board of Directors’ Report**        
Vision
   26        
Strategy
   27        
Business Focus
   29        
Business Results
   44        
Material Contracts
   59        
Corporate Governance
   59        
Sourcing and Supply
   61        
Sustainability and Corporate Responsibility
   61  
 
i 

Table of Contents
ERICSSON ANNUAL REPORT ON FORM 20-F 2010 

 
**Form 20-F Item Heading**
  
**Location in Document**
  **Page****Number**       
**Notes to the Consolidated Financial Statements**
        
Note C3—Segment Information
   95        
Note C32—Contractual Obligations
   166        **Risk Factors**        
Market, Technology and Business Risks
   167        
Regulatory, Compliance and Corporate Governance Risks
   172    **C**  **Organizational Structure**  **Supplemental Information**        
General Facts on the Company
   222        
Investments
   238    **D**  **Property, Plants and Equipment**  **Supplemental Information**        
Primary Manufacturing and Assembly Facilities
   224        
**Notes to the Consolidated Financial Statements**
        
Note C11—Property, Plant and Equipment
   110        
Note C27—Leasing
   149        **Board of Directors’ Report**        
Cash Flow—Capital Expenditures
   43  
**4A**
  **Unresolved Staff Comments**  —  
**5**
  **Operating & Fin’l Review & Prospects**  —   -    **A**  **Operating Results**  **Our Solutions**   4        **Our Assets**   11        **Board of Directors’ Report**        
Business Results
   44        
**Notes to the Consolidated Financial Statements**
        
Note C1—Significant Accounting Policies—Group Companies
   73        
Note C20—Financial Risk Management and Financial Instruments—Foreign Exchange Risk
   133        **Risk Factors**        
Regulatory, Compliance and Corporate Governance Risks
   172        **Board of Directors’ Report**        
Risk Management
   60        **Supplemental Information**        
Operating Results
   225        
Taxation
   231    **B**  **Liquidity and Capital Resources**  **Board of Directors’ Report**        
Financial Position
   38        
Cash Flow
   42        
Risk Management
   60  
 
ii 

Table of Contents
ERICSSON ANNUAL REPORT ON FORM 20-F 2010 

 
**Form 20-F Item Heading**
  
**Location in Document**
  **Page****Number**       
**Notes to the Consolidated Financial Statements**
        
Note C19—Interest-Bearing Liabilities
   132        
Note C20—Financial Risk Management and Financial Instruments
   133        
Note C25—Statement of Cash Flows
   143    **C**  **R&D, Patents & Licenses**  **Five-Year Summary**   15        **Board of Directors’ Report**        
Strategy—Technology Leadership
   27        
Business Focus—Technology
   31        
Financial Results of Operations—Operating expenses
   36        **Consolidated Financial Statements**        
Consolidated Income Statement and Statement of Comprehensive Income
   68    **D**  **Trend Info**  **Our Solutions**   4        **Our Assets**   11        **Board of Directors’ Report**        
Business Results
   44    **E**  **Off-Balance Sheet Arrangements**  **Board of Directors’ Report**        
Financial Position—Off-balance sheet arrangements
   41        
**Notes to the Consolidated Financial Statements**
        
Note C14—Trade Receivables and Customer Finance—Credit Risk—Finance Credit Risk
   115        
Note C24—Contingent Liabilities
   143    **F**  **Tabular Disclosure of Contractual Obligations**  **Board of Directors’ Report**        
Material Contracts
   59        
**Notes to the Consolidated Financial Statements**
        
Note C32—Contractual Obligations
   166  
**6**
  **Directors, Senior Management and Employees**   -    **A**  **Directors & Senior Management**  **Corporate Governance Report 2010**        
Members of the Board of Directors
   202        
Members of the Executive Leadership Team
   211    **B**  **Compensation**  **Board of Directors’ Report**        
Corporate Governance
   59        **Corporate Governance Report 2010**        
Committees of the Board of Directors—Remuneration Committee—Remuneration to Board members
   201        
Members of the Executive Leadership Team
   211        **Remuneration Report**   177  
 
iii

Table of Contents
ERICSSON ANNUAL REPORT ON FORM 20-F 2010 

 
**Form 20-F Item Heading**
  
**Location in Document**
  **Page****Number**       
**Notes to the Consolidated Financial Statements**
        
Note C17—Post-Employment Benefits
   124        
Note C29—Information Regarding Members of the Board of Directors, the Group Management and Employees
   151    **C**  **Board Practices**  **Corporate Governance Report 2010**        
Board of Directors
   192        
Members of the Board of Directors
   202        
Members of the Executive Leadership Team
   211        
**Notes to the Consolidated Financial Statements**
        
Note C29—Information Regarding Members of the Board of Directors, the Group Management and Employees
   151    **D**  **Employees**  **Five Year Summary**   15        **Board of Directors’ Report**        
Business Focus
   29        
**Notes to the Consolidated Financial Statements**
        
Note C29—Information Regarding Members of the Board of Directors, the Group Management and Employees
   151    **E**  **Share Ownership**  **Share Information**        
Shareholders
   22        **Corporate Governance Report 2010**        
Members of the Board of Directors
   202        
Members of the Executive Leadership Team
   211        
**Notes to the Consolidated Financial Statements**
        
Note C29—Information Regarding Members of the Board of Directors, the Group Management and Employees
   151  
**7**
  **Major S/Hs and Related Party Transactions**      **A**  **Major Shareholders**  **Share Information**        
Shareholders
   22    **B**  **Related Party Transactions**          
**Notes to the Consolidated Financial Statements**
        
Note C30—Related Party Transactions
   162  
 
iv 

Table of Contents
ERICSSON ANNUAL REPORT ON FORM 20-F 2010 

 
**Form 20-F Item Heading**
  
**Location in Document**
  **Page****Number**   **C**  **Interests of Experts & Counsel**  N/A   —    
**8**
  **Financial Information**      **A**  **Consolidated Statements and Other Financial Information**  **Consolidated Financial Statements**   68        
Please see also Item 17 cross references
        
**Report of Independent Registered Public Accounting Firm**
   67        
**Notes to the Consolidated Financial Statements**
   73        
Note C4 Net Sales
   102        **Supplemental Information**        
Memorandum and Articles of Association—Dividends
   228    **B**  **Significant Changes**  **Board of Directors’ Report**        
Post-Closing Events
   66        
**Notes to the Consolidated Financial Statements**
        
Note C33—Events After the Balance Sheet Date
   166  
**9**
  **The Offer and Listing**      **A**  **Offer and Listing Details**  **Share Information**        
Offer and Listing Details
   20    **B**  **Plan of Distribution**  N/A    **C**  **Markets**  **Share Information**        
Stock Exchange Trading
   16    **D**  **Selling Shareholders**  N/A    **E**  **Dilution**  N/A    **F**  **Expenses of the issue**  N/A  
**10**
  **Additional Information**      **A**  **Share Capital**  N/A    **B**  **Articles of Association**  **Supplemental Information**        
Memorandum and Articles of Association
   228    **C**  **Material Contracts**  **Board of Directors’ Report**        
Material Contracts
   59        
**Notes to the Consolidated Financial Statements**
        
Note C32 Contractual Obligations
   166    **D**  **Exchange Controls**  **Supplemental Information**        
Exchange Controls
   231    **E**  **Taxation**  **Supplemental Information**        
Taxation
   231    **F**  **Dividends and paying agents**  N/A    **G**  **Statement by Experts**  N/A    **H**  **Documents on Display**  **Supplemental Information**        
General Facts on the Company
   222    **I**  **Subsidiary Information**  N/A  
 
v 

Table of Contents
ERICSSON ANNUAL REPORT ON FORM 20-F 2010 

 
**Form 20-F Item Heading**
  
**Location in Document**
  **Page****Number** 
**11**
  
**Quantitative and Qualitative Disclosures**