
Annual Report 2007 - Financial StatementsNote 8 - Expenses by Nature
| Operating expenses are presented on the face of the income statement 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. | ||||
| January-December | ||||
| SEK in millions | 2007 | 2006 | ||
| Goods purchased | 17,271 | 15,307 | ||
| Interconnect and roaming expenses | 14,998 | 14,065 | ||
| Other network expenses | 3,727 | 2,667 | ||
| Change in inventories | 81 | -120 | ||
| Personnel expenses (Note 32) | 13,477 | 12,721 | ||
| Marketing expenses | 6,941 | 6,068 | ||
| Other expenses | 10,308 | 9,126 | ||
| Amortization, depreciation and impairment losses (Note 11) | 11,704 | 11,173 | ||
| Total | 78,507 | 71,007 | ||
| The main components of Other expenses are rent and leasing fees, consultants' services, IT expenses, energy expenses and travel expenses. | ||||