Nokia 2007 Annual Report Download - page 202

29. Commitments and contingencies (Continued)
The Group is party of routine litigation incidental to the normal conduct of business, including, but
not limited to, several claims, suits and actions both initiated by third parties and initiated by Nokia
relating to infringements of patents, violations of licensing arrangements and other intellectual
property related matters, as well as actions with respect to products, contracts and securities. In the
opinion of the management outcome of and liabilities in excess of what has been provided for related
to these or other proceedings, in the aggregate, are not likely to be material to the financial condition
or result of operations.
As of December 31, 2007, the Group had purchase commitments of EUR 2 610 million (EUR 1 630 million
in 2006) relating to inventory purchase obligations, primarily for purchases in 2008.
30. Leasing contracts
The Group leases office, manufacturing and warehouse space under various noncancellable operating
leases. Certain contracts contain renewal options for various periods of time.
The future costs for noncancellable leasing contracts are as follows:
Operating
leases
Leasing payments, EURm
2008 .................................................................... 281
2009 .................................................................... 218
2010 .................................................................... 157
2011 .................................................................... 117
2012 .................................................................... 96
Thereafter ................................................................ 129
Total..................................................................... 998
Rental expense amounted to EUR 328 million in 2007 (EUR 285 million in 2006 and EUR 262 million in
2005).
31. Related party transactions
Nokia Pension Foundation is a separate legal entity that manages and holds in trust the assets for the
Group’s Finnish employee benefit plans. These assets do not include Nokia shares. The Group recorded
net rental expense of EUR 0 million in 2007 (EUR 2 million in 2006 and EUR 2 million in
2005) pertaining to a saleleaseback transaction with the Nokia Pension Foundation involving certain
buildings and a lease of the underlying land.
At December 31, 2007, the Group had borrowings amounting to EUR 69 million (EUR 69 million in
2006) from Nokia Unterstu
¨tzungskasse GmbH, the Group’s German pension fund, which is a separate
legal entity. The loan bears interest at 6% annum and its duration is pending until further notice by
the loan counterparts who have the right to terminate the loan with a 90 day notice period.
There were no loans granted to the members of the Group Executive Board and Board of Directors at
December 31, 2007, 2006 or 2005.
F59
Notes to the Consolidated Financial Statements (Continued)