Finance costs and other financial items were distributed as follows.
|
|
January–December | |
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Finance costs |
|
|
| Interest expenses | -3,477 | -1,948 |
| Interest expenses on finance leases | -2 | -5 |
| Unwinding of provision discounts | -147 | -26 |
| Capitalized interest | 58 | 17 |
| Net exchange rate gains and losses | -115 | 226 |
| Total finance costs | -3,683 | -1,736 |
| Other financial items |
|
|
| Interest income | 1,429 | 736 |
| Interest income on finance leases | 29 | 52 |
| Dividends from financial investments | 0 | 0 |
| Capital gains on financial investments available-for-sale | 5 | 49 |
| Capital losses on equity instruments at cost | -13 | – |
| Impairment losses on venture capital investments | -4 | -5 |
| Total other financial items | 1,446 | 832 |
| Net effect on income | -2,237 | -904 |
Interest income in 2008 includes received penalty interest of SEK 290 million related to court rulings on certain historical interconnect fees.
Details on interest expenses, net exchange rate gains and losses and interest income related to hedging activities, loan receivables and borrowings were as follows.
|
|
January–December | |||||
|---|---|---|---|---|---|---|
|
|
2008 | 2007 | 2008 | 2007 | 2008 | 2007 |
| SEK in millions | Interest expenses |
Net exchange rate gains and losses |
Interest income | |||
| Fair value hedge derivatives | -173 | -57 | 2,047 | 272 | – | – |
| Cash flow hedge derivatives | -245 | -46 | -75 | 145 | – | – |
| Derivatives held-for-trading | -2 | 97 | 3,850 | 192 | – | – |
| Held-to-maturity investments | – | – | – | – | 5 | 15 |
| Loans and receivables | – | – | -2,514 | – | 1,428 | 711 |
| Borrowings in fair value hedge relationships | -656 | -611 | -2,047 | -272 | – | – |
| Borrowings and other financial liabilities at amortized cost | -2,396 | -1,284 | -1,376 | -111 | – | – |
| Other | -5 | -47 | – | 0 | -4 | 10 |
| Total | -3,477 | -1,948 | -115 | 226 | 1,429 | 736 |
Borrowings at amortized cost include items in cash flow hedge relationships as well as unhedged items.