P3. Expenses by nature

Operating expenses are presented on the face of the income statement using a classification based on the functions “Cost of production,” “Selling and marketing expenses” and “Administrative expenses.” Total expenses by function were distributed by nature as follows.

SEK in millions

Jan–Dec 2016

Jan–Dec 2015

Other network expenses

-5

-1

Personnel expenses (see also Note P25)

-821

-717

Rent and leasing fees

-34

-29

Consultants’ services

-209

-275

IT expenses

29

-154

Invoiced and other expenses, net

287

-12

Amortization, depreciation and impairment losses

-4

-4

Total

-757 

-1,193

Administrative and other parent company expenses which are not classified as shareholder costs are invoiced to the subsidiaries and recognized as cost reductions. Amortization, depreciation and impairment losses were distributed by function as follows.

SEK in millions

Jan–Dec 2016

Jan–Dec 2015

Administrative expenses

-4

-4

Total

-4

-4