B3. Operating expenses

Operating expenses by function and type of cost

Operating expenses by function

SEKm

2020

2019

2018

IS Cost of goods sold

–82,132

–90,876

–85,058

IS Sales, general and administration

–22,088

–22,319

–20,570

IS Share of profits of associated companies and joint ventures

94

60

63

IS Amortization of acquisition-related intangible assets

–809

–778

–732

IS TB3:1 Items affecting comparability

–59

–713

–1,444

Total

–104,994

–114,626

–107,741

Refer also to the Description of costs section.

Operating expenses by type of cost

SEKm

Note

2020

2019

2018

TB3:2 Other income

 

1,066

1,028

897

Change in inventory of finished products and products in progress1)

 

87

–962

196

Raw materials and consumables1)

 

–41,384

–43,800

–43,771

Personnel costs1)

C1

–22,914

–23,888

–22,021

TB3:3 Other operating expenses1)

 

–34,318

–39,399

–36,412

Amortization of intangible assets1)

D1

–1,140

–1,111

–1,049

Depreciation of property, plant and equipment1)

D2, G2

–6,209

–6,366

–5,126

Impairment of intangible assets1)

D1

–54

–19

–105

Impairment of property, plant and equipment1)

D2

–276

–152

–428

Reversal of impairment of property, plant and equipment1)

D2

8

119

Share in profits of associated companies and joint ventures1)

 

71

84

–215

Revaluation of previously owned shares in associated companies1)

F6

225

Gain/loss on divestment and liquidation1) 2)

 

69

–160

68

Total

 

–104,994

–114,626

–107,741

1)

Including items affecting comparability.

2)

Including transaction costs and reversal of realized translation differences in divested companies to profit or loss.

TB3:1 Items affecting comparability

Distribution of items affecting comparability by type of cost

SEKm

2020

2019

2018

Impairment of inventory of finished products and products in progress, net

–9

–70

–61

Impairment of trade receivables

–10

Personnel costs

187

–445

–700

Other operating expenses

–86

–79

–183

Impairment of intangible assets, net

–54

–16

–105

Impairment of property, plant and equipment, net

–143

43

–410

Share in profits of associated companies from impairment and divestments

–23

24

–278

Revaluation of previously owned shares in associated companies

225

Gain/loss on divestment and liquidation

69

–160

68

Total

–59

–713

–1,444

Distribution of items affecting comparability

SEKm

2020

Gain from settlement of defined benefit pension liability

187

Gain/loss on divestment and liquidation

69

Costs for restructuring measures, Russia among other countries

–198

Increase of previous provision for legal disputes

–80

Other

–37

Total

–59

Distribution of items affecting comparability, previous periods

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

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

TB3:2 Other income

SEKm

2020

2019

2018

Sales not included in core operations

1,066

1,028

897

Total

1,066

1,028

897

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.

TB3:3 Distribution of other operating expenses

SEKm

2020

2019

2018

Transport expenses

–9,107

–9,360

–8,290

Energy costs1)

–4,493

–5,125

–4,775

Purchased finished goods for resale

–2,564

–6,811

–5,144

Marketing costs

–6,745

–6,604

–6,031

Repairs and maintenance

–2,966

–2,927

–2,546

IT, telephony and lease of premises2)

–974

–903

–1,633

Other operating expenses, production

–3,759

–4,092

–3,919

Other operating expenses, distribution, sales and administration

–3,516

–3,481

–3,674

Other

–194

–96

–400

Total

–34,318

–39,399

–36,412

1)

After deduction for revenues from energy in the amount of SEK 186m (184; 327).

2)

As of 2019, leases are recognized in accordance with the new accounting standard IFRS 16 Leases. This means that lease payments from 2019 are recognized as depreciation and interest expenses rather than lease payments in IT, telephony and lease of premises, which is why the item has decreased.

Other disclosures

Exchange rate effects had a negative impact of SEK –11m (–70; –186) on operating profit.

Other disclosures1)

SEKm

2020

2019

2018

Government grants received2)

241

47

55

Research and development

–1,559

–1,485

–1,320

1)

These items are included in the tables above in Note B3 under the respective type of cost.

2)

The increase in government grants received for 2020 pertains mainly to grants received in China related to the COVID-19 pandemic.