Nokia 2005 Annual Report Download - page 219

Notes to the Consolidated Financial Statements (Continued)
39. Differences between International Financial Reporting Standards and US Generally
Accepted Accounting Principles (Continued)
2005 2004
Domestic Foreign Domestic Foreign
plans plans plans plans
EURm EURm
Amounts recognized in the statement of financial positions
consist of:
Prepaid benefit cost ................................. 129 60 132 60
Accrued benefit liability .............................. — (129) (9) (112)
Intangible asset ..................................... ——51
Accumulated other comprehensive income ............... —13——
Net amount recognized ............................... 129 (56) 128 (51)
For plans where the benefit obligation is in excess of the plan assets, the aggregate benefit
obligation is EUR 251 million (EUR 224 million in 2004) and the aggregate fair values of plan
assets is EUR 104 million (EUR 100 million in 2004). For plans where the accumulated benefit
obligation is in excess of the plan assets, the aggregate pension accumulated benefit obligation
is EUR 233 million (EUR 208 million in 2004) and the aggregate fair value of plan assets is
EUR 104 million (EUR 95 million in 2004).
The Accumulated Benefit Obligation at December 31, 2005 for the domestic plans was
EUR 776 million (EUR 642 million in 2004) and for the foreign plans EUR 443 million
(EUR 371 million in 2004).
Weighted average assumption used in calculation of pension obligations are as follows:
2005 2004
Domestic Foreign Domestic Foreign
%%%%
Discount rate for determining present values ............. 4.20 4.55 4.75 5.00
Expected long term rate of return on plan assets .......... 4.44 5.49 5.00 5.31
Annual rate of increase in future compensation levels ...... 3.50 3.91 3.50 3.82
Pension increases ................................... 2.00 2.55 2.00 2.38
The Group also contributes to multiemployer plans, insured plans and defined contribution plans.
Such contributions were approximately EUR 206 million, EUR 192 million and EUR 146 million in
2005, 2004 and 2003, respectively, including premiums associated with pooled benefits.
At December 31, approximately 0.6% (0.5% in 2004) or EUR 6 million (EUR 4 million in 2004) of
domestic plan assets consist of Nokia equity securities. The foreign pension plan assets include a
self investment through a loan provided to Nokia by the plan of EUR 62 million (EUR 62 million
in 2004).
The Group expects to make contributions of EUR 21 million and EUR 28 million to its domestic and
foreign defined benefit pension plans in 2006, respectively.
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