C9. Finance income and finance costs

Finance income and finance costs were distributed as follows.

SEK in millions

Jan–Dec 2016

Jan–Dec 2015

Finance income

   

Interest income

329

475

Interest income on finance leases

98

91

Changes in fair value of held-for-trading-investments

-15

Net exchange rate gains

184

Net interest on the net defined benefit liability (asset)

97

Other finance income

15

Unwinding of discounts, receivables

80

59

Total finance income

803

609

     

Finance costs

   

Interest expenses

-2,669

-3,089

Interest expenses on finance leases

-3

-3

Unwinding of provision discounts

-30

-45

Capitalized interest

91

83

Changes in fair value of held-for-trading-investments

-8

Credit losses on finance leases

-25

Net exchange rate losses

-265

Net interest on the net defined benefit liability (asset)

-72

Other finance costs

-137

Total finance costs

-2,644

-3,526

Net effect on income

-1,841

-2,917

Details on interest expenses, net exchange rate gains and losses and interest income related to hedging activities, loan receivables and borrowings were as follows.

SEK in millions

Jan–Dec 2016

Jan–Dec 2015

Jan–Dec 2016

Jan–Dec 2015

Jan–Dec 2016

Jan–Dec 2015

Interest expenses

Net exchange rate
gains and losses

Interest income

Fair value hedge derivatives

387

-1,648

130

-41

Cash flow hedge derivatives

10

-34

-457

95

Derivatives held-for-trading

695

1,117

125

-55

Held-to-maturity investments

13

10

Loans and receivables

1,364

-1,125

128

416

Borrowings in fair value hedge relationships

-1,415

-1,450

-3,190

1,991

Borrowings and other financial liabilities at amortized cost

-2,308

-1,061

2,212

-1,137

Other

-39

-12

7

187

50

Total

-2,669

-3,089

184

-265

329

475

Borrowings at amortized cost include items in cash flow hedge relationships as well as unhedged items.