Nokia 2005 Annual Report Download - page 159

Notes to the Consolidated Financial Statements (Continued)
3. Segment information (Continued)
mainly by the mobile device business groups, which comprises of Mobile Phones, Multimedia and
Enterprise Solutions, with the balance included in Common Group Functions. The costs and
revenues as well as assets and liabilities of the horizontal groups are allocated to the mobile
device business groups on a symmetrical basis; with any amounts not so allocated included in
Common Group Functions. Common Group Functions consists of common research and general
Group functions.
The accounting policies of the segments are the same as those described in Note 1. Nokia accounts
for intersegment revenues and transfers as if the revenues or transfers were to third parties, that
is, at current market prices. Nokia evaluates the performance of its segments and allocates
resources to them based on operating profit.
No single customer represents 10% or more of Group revenues.
Total Common
Mobile Enterprise reportable Group
Phones Multimedia Solutions Networks segments Functions Eliminations Group
EURm EURm EURm EURm EURm EURm EURm EURm
2005
Profit and Loss
Information
Net sales to external
customers ......... 20,811 5,979 839 6,556 34,185 6 34,191
Net sales to other
segments .......... — 2 22 1 25 (6) (19) —
Depreciation and
amortization ....... 247 83 22 241 593 119 712
Impairment and
customer finance
charges ........... — 36 — — 36 30 66
Operating profit/(loss) . . 3,598 836 (258) 855 5,031 (392) 4,639
Share of results of
associated companies — — — — — 10 10
Balance Sheet
Information
Capital expenditures(1) . . 273 77 24 102 476 131 607
Segment assets(2) ...... 4,355 1,374 202 3,437 9,368 1,135 (53) 10,450
of which:
Investments in
associated
companies ....... — — — — — 193 193
Unallocated assets(3) ... 11,848
Total assets .......... 22,298
Segment liabilities(4) . . . 4,772 1,505 315 1,607 8,199 241 (156) 8,284
Unallocated liabilities(5) . 1,654
Total liabilities ....... 9,938
F-21