Financial income and expenses were distributed as follows.
|
|
January–December | |
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Income from shares in subsidiaries |
|
|
| Dividends, etc. | 231 | 15,408 |
| Capital gains/losses, net | 22 | 46 |
| Impairment losses | -4 | – |
| Group contributions, net received | 1,031 | 2,991 |
| Total | 1,280 | 18,445 |
| Income from shares in associated companies |
|
|
| Dividends, etc. | 0 | 1,432 |
| Capital gains/losses, net | 2 | 83 |
| Impairment losses | -12 | -113 |
| Total | -10 | 1,402 |
| Income from other financial investments |
|
|
| Capital gains/losses, net | 1 | 32 |
| Total | 1 | 32 |
| Other financial income |
|
|
| Interest from subsidiaries | 1,432 | 976 |
| Other interest income | 649 | 234 |
| Exchange rate gains | 9 | 4 |
| Total | 2,090 | 1,214 |
| Other financial expenses |
|
|
| Interest to subsidiaries | -2,622 | -1,921 |
| Other interest expenses | -3,073 | -1,567 |
| Interest component of the year's pension provision | -31 | -24 |
| Exchange rate losses | -1,052 | -40 |
| Total | -6,778 | -3,552 |
| Net effect on income | -3,417 | 17,541 |
Other interest income in 2008 includes received penalty interest of SEK 290 million related to court rulings on certain historical interconnect fees. Dividends from subsidiaries in 2007 included one-off transactions of SEK 14,998 million. Regarding Group contributions, refer to section “Untaxed reserves, appropriations and group contributions” in Note 8 “Income Taxes.” See also Note 16 “Provisions for Pensions and Employment Contracts” on the interest component of the year's pension provision.
Details on other interest expenses, net exchange rate gains and losses and other interest income related to hedging activities, loan receivables and borrowings were as follows.
|
|
January–December | |||||
|---|---|---|---|---|---|---|
|
|
2008 | 2007 | 2008 | 2007 | 2008 | 2007 |
| SEK in millions | Other interest expenses |
Net exchange rate gains and losses |
Other interest income |
|||
| Fair value hedge derivatives | -173 | -57 | 2,047 | 272 | – | – |
| Cash flow hedge derivatives | -211 | -17 | -75 | 145 | – | – |
| Derivatives held-for-trading | -2 | 97 | 3,857 | 123 | – | – |
| Held-to-maturity investments | – | – | – | – | – | 5 |
| Loans and receivables | – | – | -2,538 | – | 630 | 210 |
| Borrowings in fair value hedge relationships | -572 | -525 | -2,047 | -272 | – | – |
| Borrowings and other financial liabilities at amortized cost | -2,083 | -1,061 | -2,287 | -304 | – | – |
| Other | -32 | -4 | – | -0 | 19 | 19 |
| Total | -3,073 | -1,567 | -1,043 | -36 | 649 | 234 |
Borrowings at amortized cost include items in cash flow hedge relationships as well as unhedged items.