Investments in associated companies
The carrying value of investments in associated companies changed as follows.
|
|
December 31, | |
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Carrying value, opening balance | 974 | 1,085 |
| Issues of new shares and shareholder contributions | 6 | 4 |
| Impairment losses | -6 | -108 |
| Divestitures | – | -7 |
| Reclassifications | -75 | – |
| Carrying value, closing balance | 899 | 974 |
Other holdings of equity securities
The carrying value of other holdings of equity securities changed as follows.
|
|
December 31, | |
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Carrying value, opening balance | 204 | 172 |
| Acquisitions | 2 | 27 |
| Changes in fair value | -97 | 5 |
| Carrying value, closing balance | 109 | 204 |
Other long-term financial assets
The carrying value of other long-term financial assets changed as follows.
|
|
December 31, | |
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Carrying value, opening balance | 121,167 | 110,627 |
| Purchases | 38,707 | 10,059 |
| Sales and disposals | -330 | -13 |
| Impairment losses | -83 | -4 |
| Changes in fair value | 3,725 | 498 |
| Carrying value, closing balance | 163,186 | 121,167 |
Other financial assets by class
The total carrying and fair values of other financial assets were as follows.
|
|
December 31, | |||
|---|---|---|---|---|
|
|
2008 | 2007 | ||
| SEK in millions | Carrying value | Fair value | Carrying value | Fair value |
| Other holdings of equity securities available-for-sale | 102 | 102 | 196 | 196 |
| Other holdings of equity securities held-for-trading | 8 | 8 | 8 | 8 |
| Loans and receivables at amortized cost | 1 | 1 | 5 | 5 |
| Interest rate swaps designated as fair value hedges | 691 | 691 | 39 | 39 |
| Interest rate swaps designated as cash flow hedges | – | – | 9 | 9 |
| Cross currency interest rate swaps designated as cash flow hedges | 462 | 462 | 35 | 35 |
| Interest rate and cross currency interest rate swaps held-for-trading | 3,173 | 3,173 | 480 | 480 |
| Subtotal (see Categories – Note 21 and Credit risk – Note 22) /Total fair value | 4,437 | 4,437 | 772 | 772 |
| Shares in subsidiaries | 158,858 |
|
120,488 |
|
| Receivables from subsidiaries | – |
|
111 |
|
| Investments in associated companies | 899 |
|
974 |
|
| Total other financial assets | 164,194 |
|
122,345 |
|
| of which interest-bearing | 4,436 |
|
767 |
|
| of which non-interest-bearing | 159,758 |
|
121,578 |
|
The 2008 increase of the carrying value for shares in subsidiaries mainly refers to a capital contribution of SEK 34,000 million that was provided in kind in exchange for new shares issued by the subsidiary TeliaSonera Skanova Access AB. For Loans and receivables, including claims on associated companies, fair value is estimated at the present value of future cash flows discounted by applying market interest rates as of the balance sheet date. As of December 31, 2008, contractual cash flows for Loans and receivables represented the following expected maturity dates.
|
Expected maturity SEK in millions |
2010–2013 | Later years | Total |
|---|---|---|---|
| Loans and receivables | – | 1 | 1 |
For more information on financial instruments by category and exposed to credit risk, refer to Note 21 “Financial Assets and Liabilities by Category” and section “Credit risk management” in Note 22 “Financial Risk Management,” respectively. Shareholdings and participations in subsidiaries are specified in Note 28 “Specification of Shareholdings and Participations,” while information on associated companies and other holdings of equity securities is presented in “Notes to Consolidated Financial Statements” (Note 35). Conventional commercial terms apply for receivables from subsidiaries.