Nokia 2007 Annual Report Download - page 180

8. Acquisitions (Continued)
and EUR 168 million, respectively. Goodwill has been allocated to the Multimedia segment and to the
Mobile Phone segment. The goodwill arising from these acquisitions is attributable to assembled
workforce and post acquisition synergies. None of the goodwill recognized in these transactions is
expected to be tax deductible.
9. Depreciation and amortization
2007 2006 2005
EURm EURm EURm
Depreciation and amortization by function
Cost of sales ...................................................... 303 279 242
Research and development
(1)
........................................ 523 312 349
Selling and marketing
(1)
............................................ 232 99
Administrative and general .......................................... 148 111 99
Other operating expenses ........................................... —113
Total ............................................................ 1 206 712 712
(1)
In 2007, depreciation and amortization allocated to research and development and selling and
marketing included amortization of acquired intangible assets of EUR 136 million and EUR 214 mil
lion, respectively.
10. Financial income and expenses
2007 2006 2005
EURm EURm EURm
Dividend income on availableforsale financial investments ................. ——1
Interest income on availableforsale financial investments ................. 338 225 296
Interest income on loans receivable carried at amortised cost ............... 1——
Interest expense on financial liabilities carried at amortised cost ............. (43) (22) (18)
Other financial income .............................................. 43 55 77
Other financial expenses ............................................. (24) (18) (22)
Net foreign exchange gains (or net foreign exchange losses)
From foreign exchange derivatives designated at fair value through profit
and loss accounts ............................................... 37 75 (167)
From balance sheet items revaluation ................................ (118) (106) 156
Net gains (net losses) on other derivatives designated at fair value through
profit and loss accounts ............................................ 5(2) (1)
Total ............................................................. 239 207 322
During 2005, Nokia sold the remaining holdings in the subordinated convertible perpetual bonds
issued by France Telecom. As a result, the Group booked a total net gain of EUR 57 million in other
financial income, of which EUR 53 million was recycled from fair value and other reserves in
shareholders’ equity.
F37
Notes to the Consolidated Financial Statements (Continued)