Nokia 2006 Annual Report Download - page 211

Notes to the Consolidated Financial Statements (Continued)
38. Differences between International Financial Reporting Standards and US Generally
Accepted Accounting Principles (Continued)
The Accumulated Benefit Obligation at December 31, 2006 for the domestic plans was
EUR 901 million (EUR 776 million in 2005) and for the foreign plans EUR 492 million (EUR 443 million
in 2005).
The measurement date used to measure the fair value of plan assets and the projected benefit
obligation is December 31. Weighted average assumptions used in calculation of pension obligations
are 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
The Group also contributes to multiemployer plans, insured plans and defined contribution plans.
Such contributions were approximately EUR 198 million, EUR 206 million and EUR 192 million in
2006, 2005 and 2004, respectively, including premiums associated with pooled benefits.
Weighted average assumptions used in calculation of the Domestic and Foreign plans’ net periodic
benefit cost for years ending December 31, are as follows:
2006 2005
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 assumption for weighted average expected return on plan assets is based on the target asset
allocation at the beginning of the year as well as the expected deviation limit utilization. The
expected returns for the various asset classes are based on 1) a general inflation expectation and
2) asset class specific longterm historical real returns, which are assumed to be indicative of future
expectations without requiring further adjustments.
Estimated future benefits payments, which reflect expected future service, as appropriate, are
expected to be paid as follows:
Domestic Foreign
Pension Pension
Benefits Benefits
EURm EURm
2007 ******************************************************************** 12 9
2008 ******************************************************************** 16 9
2009 ******************************************************************** 20 10
2010 ******************************************************************** 23 10
2011 ******************************************************************** 26 11
20122016 *************************************************************** 174 64
F76