B3. Operating expenses

Operating expenses by function and type of cost

Operating expenses by function
SEKm	2019	2018	2017
IS Cost of goods sold	–90,876	–85,058	–76,899
IS Sales, general and administration	–22,319	–20,570	–19,130
IS Share of profits of associated companies and joint ventures	60	63	169
IS Amortization of acquisition-related intangible assets	–778	–732	–560
IS TB3:1 Items affecting comparability	–713	–1,444	–940
Total	–114,626	–107,741	–97,360

Refer also to the Description of costs section.

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Operating expenses by type of cost

SEKm

Note

2019

2018

2017

1)	Including items affecting comparability.
2)	Including transaction costs and reversal of realized translation differences in divested companies to profit or loss.

TB3:2 Other income

1,028

897

1,045

Change in inventory of finished products and products in progress¹⁾

–962

196

172

Raw materials and consumables¹⁾

–43,800

–43,771

–38,191

Personnel costs¹⁾

–23,888

–22,021

–20,142

TB3:3 Other operating expenses¹⁾

–39,399

–36,412

–34,444

Amortization of intangible assets¹⁾

–1,111

–1,049

–853

Depreciation of property, plant and equipment¹⁾

D2,G2

–6,366

–5,126

–4,871

Impairment of intangible assets¹⁾

–19

–105

–132

Impairment of property, plant and equipment¹⁾

–152

–428

–254

Reversal of impairment of property, plant and equipment¹⁾

119

–

Share in profits of associated companies and joint ventures¹⁾

–215

169

Revaluation of previously owned shares in associated companies¹⁾

–

225

Gain/loss on divestment and liquidation^{1) 2)}

–160

Total

–114,626

–107,741

–97,360

TB3:1 Items affecting comparability

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Distribution of items affecting comparability by type of cost
SEKm	2019	2018	2017
Impairment of inventory of finished products and products in progress, net	–70	–61	–4
Impairment of trade receivables	–10	–	–
Personnel costs	–445	–700	–69
Other operating expenses	–79	–183	–620
Amortization of intangible assets	–	–	–2
Impairment of intangible assets, net	–16	–105	–132
Impairment of property, plant and equipment, net	43	–410	–254
Share in profits of associated companies from impairment and divestments	24	–278	–
Revaluation of previously owned shares in associated companies	–	225	72
Gain/loss on divestment and liquidation	–160	68	69
Total	–713	–1,444	–940

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Distribution of items affecting comparability
SEKm	2019
Restructuring costs relating to the Group-wide cost-savings program	–409
Costs for other restructuring programs	–181
Transfer to profit or loss of realized translation differences relating to divested and liquidated companies	–178
Other	55
Total	–713

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Distribution of items affecting comparability, previous periods
SEKm	2018
Costs for restructuring measures at production facilities of Professional Hygiene and Consumer Tissue	–1,222
Impairment in the associated company Asaleo Care Ltd.	–278
Restructuring costs relating to the Group-wide cost-savings program	–131
Dissolution of reserve for foreign tax	288
Increase in participations in joint venture in Latin America	165
Other	–266
Total	–1,444

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SEKm	2017
Costs of split of SCA Group into two listed companies	–550
Integration and transaction costs related to the acquisition of BSN medical and inventory valuation arising from acquisition balance	–435
Closure of tissue production plant in the USA	–255
Restructuring costs for the closure of the tissue machine in the UK	–75
Dissolution of provisions for competition case in Poland	265
Other	110
Total	–940

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TB3:2 Other income
SEKm	2019	2018	2017
Sales not included in core operations	1,028	897	1,045
Total	1,028	897	1,045

Other income includes rental income, which is recognized in the period covered by the rental contract, royalties and similar items, which are recognized in accordance with the implied financial effect of the contract.

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TB3:3 Distribution of other operating expenses

SEKm

2019

2018

2017

1)	After deduction for revenues from energy in the amount of SEK 184m (327; 227).
2)	As of 2019, leases are recognized in accordance with the new accounting standard IFRS 16 Leases, see Note G5. This means that lease payments from 2019 are recognized as depreciation and interest expenses rather than lease of premises in IT, telephony and lease of premises, which is why the item has decreased.

Transport expenses

–9,360

–8,290

–7,425

Energy costs¹⁾

–5,125

–4,775

–4,498

Purchased finished goods for resale

–6,811

–5,144

–5,053

Marketing costs

–6,604

–6,031

–5,777

Repairs and maintenance

–2,927

–2,546

–2,436

IT, telephony and lease of premises²⁾

–903

–1,633

–1,380

Other operating expenses, production

–4,092

–3,919

–3,671

Other operating expenses, distribution, sales and administration

–3,481

–3,674

–3,644

Other

–96

–400

–560

Total

–39,399

–36,412

–34,444

Other disclosures

Exchange rate effects had a negative impact of SEK –70m (–186; –10) on operating profit. Government grants received reduced operating expenses by SEK 47m (55; 65). Costs for research and development amounted to SEK –1,485m (–1,320; –1,239) during the period.