No general changes of useful lives were effected in 2008. For a discussion on impairment testing, see Note 15 “Goodwill and Other Intangible Assets.” The following amortization and depreciation rates were applied.
|
|
|
|---|---|
| Trade names | Individual evaluation, minimum 10% |
| Telecom licenses, numbering rights | Remaining license period, minimum 5%. Licenses are regarded as integral to the network and amortization of a license does not commence until the related network is ready for use. |
| Interconnect and roaming agreements | Agreement term, based on the remaining useful life of the related license |
| Customer relationships | Individual evaluation, based on historic and projected churn |
| Other intangible assets | 20–33% or individual evaluation |
| Buildings | 2–10% |
| Land improvements | 2% |
| Capitalized improvements on leased premises | Remaining term of corresponding lease |
| Mobile networks (base stations and other installations) | 14.5% |
| Fixed networks |
|
| – Switching systems and transmission systems | 10–33% |
| – Transmission media (cable) | 5–10% |
| – Equipment for special networks | 20–33% |
| – Usufruct agreements of limited duration | Agreement term or time corresponding to the underlying asset |
| – Other installations | 2–33% |
| Equipment, tools and installations | 10–33% |
| Equipment placed with customers under service arrangements | Agreement term, annuity basis |
Amortization, depreciation and impairment losses on other intangible assets and property, plant and equipment were distributed by function and other operating expenses as follows.
|
|
January–December | |
|---|---|---|
| SEK in millions, except proportions | 2008 | 2007 |
| Cost of sales | 10,136 | 9,660 |
| Selling and marketing expenses | 1,133 | 1,400 |
| Administrative expenses | 737 | 495 |
| Research and development expenses | 51 | 149 |
| Total functions | 12,057 | 11,704 |
| Other operating expenses | 49 | 171 |
| Total amortization, depreciation and impairment losses | 12,106 | 11,875 |
| Proportion to net sales (%) | 11.7 | 12.3 |
Amortization, depreciation and impairment losses are broken down by reportable segment in Note 6 “Segment Information.”
Amortization, depreciation and impairment losses were distributed by asset class as follows.
|
|
January–December | |
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Other intangible assets | 2,545 | 2,837 |
| Buildings and land improvements | 335 | 318 |
| Mobile networks | 4,270 | 3,599 |
| Fixed networks | 4,060 | 4,378 |
| Other plant and equipment | 896 | 743 |
| Total | 12,106 | 11,875 |