The linear and nonlinear processes in ferromagnetic films at low temperatures T<< Tc are studied in a microscopic theory. Both the long-range magnetic dipole-dipole and the Heisenberg exchange interactions to nearest and next-nearest neighbors are included. The results obtained for the linearized spin-wave spectrum are compared with previous macroscopic theories. For ultrathin films (or for large wave vectors) the microscopic theory provides important corrections. The nonlinear dynamics of the spin waves are studied through a finite-temperature perturbation theory based on Feynman diagrams. We obtain explicit results for the energy shift and damping (or reciprocal lifetime) of the dipole-exchange spin waves due to all possible three-magnon and four-magnon processes involving combinations of the surface and quantized bulk spin waves at low temperatures. To investigate different dipole interaction strengths (relative to the exchange) numerical results are presented using parameters for Fe, EuO, and GdCl3.
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