Nokia 2008 Annual Report Download - page 173

5. Pensions (Continued)
obligations, EUR 416 million of partly funded obligations (EUR 333 million in 2007) and
EUR 82 million (EUR 134 million in 2007) of unfunded obligations.
The amounts recognized in the profit and loss account are as follows:
2008 2007 2006
EURm EURm EURm
Current service cost ................................................. 79 125 101
Interest cost ....................................................... 78 104 66
Expected return on plan assets ........................................ (71) (95) (62)
Net actuarial losses recognized in year.................................. —10 8
Past service cost (gain) loss........................................... 2—3
Curtailment ....................................................... (12) (1) (4)
Settlement ........................................................ 152 (12) —
Total, included in personnel expenses .................................. 228 131 112
Movements in prepaid (accrued) pension costs recognized in the balance sheet are as follows:
2008 2007
EURm EURm
Prepaid (accrued) pension costs at beginning of year ............................ (36) 108
Net income (expense) recognized in the profit and loss account.................... (228) (131)
Contributions paid ........................................................ 141 163
Benefits paid . ........................................................... 12 —
Acquisitions . . ........................................................... 3(175)
Foreign exchange......................................................... (12) (1)
Prepaid (accrued) pension costs at end of year
(1)
................................ (120) (36)
(1)
included within prepaid expenses and accrued income / accrued expenses
The prepaid (accrued) pension cost above is made up of a prepayment of EUR 55 million (EUR
218 million in 2007) and an accrual of EUR 175 million (EUR 254 million in 2007).
2008 2007 2006 2005 2004
EURm EURm EURm EURm EURm
Present value of defined benefit obligation ........... (1 205) (2 266) (1 577) (1 385) (1 125)
Plan assets at fair value........................... 1 197 2 174 1 409 1 276 1 071
Surplus/(Deficit) ................................. (8) (92) (168) (109) (54)
Experience adjustments arising on plan obligations amount to a gain of EUR 50 million in 2008 (a
loss of EUR 31 million in 2007 and EUR 25 million in 2006). Experience adjustments arising on plan
assets amount to a loss of EUR 22 million in 2008 (EUR 3 million in 2007 and EUR 11 million in 2006).
The principal actuarial weighted average assumptions used were as follows:
Domestic Foreign Domestic Foreign
2008 2007
%%%%
Discount rate for determining present values ............... 5.90 5.80 5.50 5.40
Expected longterm rate of return on plan assets ............ — 5.70 5.30 5.10
Annual rate of increase in future compensation levels ........ 4.00 2.70 3.00 3.30
Pension increases ..................................... 2.10 1.90 2.70 2.30
F29
Notes to the Consolidated Financial Statements (Continued)