Nokia 2006 Annual Report Download - page 163

Notes to the Consolidated Financial Statements (Continued)
5. Pensions (Continued)
The amounts recognized in the profit and loss account are as follows:
2006 2005 2004
EURm EURm EURm
Current service cost ***************************************************** 101 69 62
Interest cost************************************************************ 66 58 56
Expected return on plan assets ******************************************* (62) (64) (56)
Net actuarial losses recognized in year ************************************ 89—
Past service cost gain () loss (+)****************************************** 31 (1)
Transfer from central pool************************************************ —(24) —
Curtailment ************************************************************ (4) (3) —
Total, included in personnel expenses ************************************* 112 46 61
Movements in prepaid pension costs recognized in the balance sheet are as follows:
2006 2005
EURm EURm
Prepaid pension costs at beginning of year *************************************** 127 126
Net income (expense) recognized in the profit and loss account********************* (112) (46)
Contributions paid ************************************************************* 91 46
Foreign currency exchange rate changes****************************************** 21
Prepaid pension costs at end of year(1) ******************************************* 108 127
(1) included within prepaid expenses and accrued income
The prepaid pension cost above consists of a prepayment of EUR 206 million (EUR 207 million in
2005) and an accrual of EUR 98 million (EUR 80 million in 2005).
2006 2005 2004 2003 2002
EURm EURm EURm EURm EURm
Present value of defined benefit obligation ************* (1 577) (1 385) (1 125) (1 009) (800)
Plan assets at fair value******************************* 1 409 1 276 1 071 887 762
Deficit ********************************************** (168) (109) (54) (122) (38)
Experience adjustments arising on plan obligations amount to a loss of EUR 25 million in 2006.
Experience adjustments arising on plan assets amount to a loss of EUR 11 million in 2006.
The principal actuarial weighted average assumptions used were as follows:
2006 2005
Domestic Foreign Domestic Foreign
%%%%
Discount rate for determining present values **************** 4.60 4.78 4.20 4.55
Expected longterm rate of return on plan assets ************ 4.60 5.50 4.44 5.49
Annual rate of increase in future compensation levels ******** 3.50 3.59 3.50 3.91
Pension increases **************************************** 2.00 2.69 2.00 2.55
F28