C7. Expenses by nature

Operating expenses are presented on the face of the statement of comprehensive income using a classification based on the functions “Cost of sales,” “Selling and marketing expenses,” “Administrative expenses” and “Research and development expenses.” Total expenses by function were distributed by nature as follows.

 

SEK in millions

Jan–Dec 2015

Jan–Dec 2014

Goods and sub-contracting services purchased

-18,176

-16,606

Interconnect and roaming expenses

-9,113

-8,419

Other network expenses

-4,949

-4,784

Change in inventories

-3,763

-3,000

Personnel expenses (see also Note C31)

-12,171

-11,248

Marketing expenses

-4,847

-4,363

Other expenses

-9,124

-8,632

Amortization, depreciation and impairment losses

-10,880

-10,271

Total

-73,024

-67,322

The main components of Other expenses are rent, consultants’ services, IT expenses and energy expenses.

Amortization, depreciation and impairment losses by function were as follows.

SEK in millions

Jan–Dec 2015

Jan–Dec 2014

Cost of sales

-9,353

-8,957

Selling and marketing expenses

-1,004

-791

Administrative expenses

-499

-519

Research and development expenses

-23

-4

Total

-10,880

-10,271

Total amortization, depreciation and impairment losses for 2015 amounted to SEK 12,780 million, whereof SEK 10,880 million was allocated to the functions above and SEK 1,900 million was included in other operating expenses. See Note C8 “Other operating income and expenses.” For more information on amortization, depreciation and impairment losses see Notes C12 “Goodwill and other intangible assets” and C13 “Property, plant and equipment.” Amortization, depreciation and impairment losses are broken down by reportable segment in Note C5 “Segment information.”

© TeliaSonera 2015
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