Annual and Sustainability Report 2011 - Teracom

Note 7 (cont'd)
Note 10. Other costs
Mortality rate
Assumptions regarding the mortality rate are in accordance with the Swedish
Financial Supervisory Authority's regulation, DUS06 (DUS06).
Parent Company
The Parent Company Teracom Group AB does not carry a pension liability in
its balance sheet. The only pension liability in the Group is reported by the
subsidiary Teracom AB, which was the Parent Company of the Group until
June 2011.
Note 8. Depreciation/amortization
The Group's other expenses amounted to SEK -1,034 (-969) million. The comparison
figures are adapted to the higher degree of detail in the income statement.
The largest expense item is costs for customer service. In the Parent
Company, other external expenses for the year were SEK -13 (-) million.
Group Parent Company
Exchange losses on receivables/payables
from operating activities 2011 2010
2011-06-01
2011-12-31
Exchange losses on accounts payable -4 -11 0
Total -4 -11 0
Group net exchange rate differences from operating activities amounted to
SEK -1 (-7) million.
Parent Company net exchange rate differences from operating activities
amounted to SEK 0 (-) million.
Tangible and intangible fixed assets are depreciated/amortized systematically
over the estimated useful life of the asset. Useful life refers to the period
during which the asset is expected to be used for its intended purpose in the
Group. Land is not depreciated, since its useful life is unlimited. Goodwill and
trademarks are not amortized because it is not possible to estimate useful life.
An assessment of the residual value and useful life is performed on each
balance sheet date, and an adjustment is made if necessary. During 2011, no
changes have been made to the lengths of useful lives.
Depreciation/amortization according to type of asset
Group
Assets 2011 2010
Depreciation on buildings and land -40 -19
Depreciation on plant and machinery -277 -235
Depreciation on equipment, tools, fixtures and fittings -20 -18
Amortization on licenses and similar rights -50 -47
Amortization of customer agreements -6 -2
Amortization of customer relationships -11 -10
Total -404 -331
Note 9. Impairment
Note 11. Remuneration to auditors
Group
Remuneration to auditors 2011 2010
Parent Company
2011-06-01
2011-12-31
PwC
- Audit engagement -3 -2 -1
- Audit activities in addition to
the audit assignment
0 0 0
- Tax consultation 0 0 0
- Other services 0 0 0
Total -3 -2 -1
Note 12. Financial income and
financial expenses
Group
Assets 2011 2010
Amortization on patents, licenses and similar rights -12 -18
Impairment loss on plant and machinery -7 0
Total -19 -18
Impairment losses for the year on intangible assets amounted to
SEK -12 million and were attributable to the Plus TV segment.
Impairment losses for the year on property, plant and equipment amounte d
to SEK -7 million and were attributable to the Teracom Sweden segment.
Impairment losses in the corresponding period last year, SEK -18 million,
were related to intangible assets, SEK -10 million within the Teracom Sweden
segment, SEK -3 million within the Boxer Sweden segment and SEK -5 million
for Group surplus value.
Group
2011 2010
Financial income
Interest income 9 5
Other financial income 18 32
Total financial income 27 37
Financial expenses
Interest expenses -58 -23
Other financial expenses -20 -26
Total financial expenses -78 -49
The net exchange rate differences from financing activities were SEK 0 (22)
million for the Group and are reported in other financial expenses. The net
amount for the Parent Company was SEK -2 (-) million.
Parent Company
2011-06-01
2011-12-31
Financial income
Net profit/loss on participations in Group companies
- Dividend 297
- Capital gains (losses) 0
Exchange rate differences 22
Interest income 2
Total financial income 321
Financial expenses
Interest expenses -11
Other financial expenses -72
Total financial expenses -83
78