Nokia 2008 Annual Report Download - page 175

6. Other operating income and expenses (Continued)
recorded restructuring costs of EUR 35 million primarily related to restructuring of a subsidiary
company.
Other operating income for 2006 includes a gain of EUR 276 million representing Nokia’s share of the
proceeds relating to a partial recovery of a previously impaired financing arrangement with Telsim.
Other operating expenses for 2006 includes EUR 142 million charges primarily related to the
restructuring for the CDMA business and associated asset writedowns. Working together with co
development partners, Nokia intended to selectively participate in key CDMA markets, with special
focus on North America, China and India. Accordingly, Nokia ramped down its CDMA research,
development and production which ceased by April 2007. In 2006, Devices & Services recorded a
charge of EUR 8 million for personnel expenses and other costs as a result of more focused R&D.
In all three years presented “Other operating income and expenses” include the costs of hedging
forecasted sales and purchases (forward points of cash flow hedges).
7. Impairment
2008 2007 2006
EURm EURm EURm
Property, plant and equipment ........................................ 77 ——
Inventories ........................................................ 13 ——
Availableforsale investments......................................... 43 29 18
Investments in associated companies................................... 87—
Capitalized development costs ........................................ —27 —
Other intangible assets .............................................. — — 33
Other noncurrent assets ............................................. 8——
Total, net ......................................................... 149 63 51
Property, plant and equipment and inventories
In conjunction with the Group’s decision to discontinue the production of mobile devices in Germany,
an impairment loss was recognized amounting to EUR 55 million. The impairment loss related to the
closure and sale of production facilities at Bochum, Germany during 2008 and was included in Devices
& Services segment.
In 2008, Nokia Siemens Networks recognized an impairment loss amounting to EUR 35 million
relating to the sale of its manufacturing site in Durach, Germany. The impairment loss was
determined as the excess of the book value of transferring assets over the fair value less costs to sell
for the transferring assets. The impairment loss was allocated to property, plant and equipment and
inventories.
Availableforsale investments
The Group’s investment in certain equity securities held as noncurrent availableforsale suffered a
permanent decline in fair value resulting in an impairment charge of EUR 43 million (EUR 29 million
in 2007, EUR 18 million in 2006).
Investments in associated companies
After application of the equity method, including recognition of the associate’s losses, the Group
F31
Notes to the Consolidated Financial Statements (Continued)