Nokia 2008 Annual Report Download - page 186

9. Depreciation and amortization
2008 2007 2006
EURm EURm EURm
Depreciation and amortization by function
Cost of sales ..................................................... 297 303 279
Research and development
(1)
........................................ 778 523 312
Selling and marketing
(2)
............................................ 368 232 9
Administrative and general ......................................... 174 148 111
Other operating expenses .......................................... — — 1
Total ........................................................... 1 617 1 206 712
(1)
In 2008, depreciation and amortization allocated to research and development included
amortization of acquired intangible assets of EUR 351 million (EUR 136 million in 2007).
(2)
In 2008, depreciation and amortization allocated to selling and marketing included amortization
of acquired intangible assets of EUR 343 million (EUR 214 million in 2007).
10. Financial income and expenses
2008 2007 2006
EURm EURm EURm
Dividend income on availableforsale financial investments ................. 1——
Interest income on availableforsale financial investments ................. 353 338 225
Interest income on loans receivables carried at amortized cost .............. —1—
Interest expense on financial liabilities carried at amortized cost............. (185) (43) (22)
Other financial income .............................................. 17 43 55
Other financial expenses ............................................. (31) (24) (18)
Net foreign exchange gains (or losses)
From foreign exchange derivatives designated at fair value through profit
and loss account................................................ 432 37 75
From balance sheet items revaluation ................................ (595) (118) (106)
Net gains (net losses) on other derivatives designated at fair value through
profit and loss account ............................................ 65(2)
Total ............................................................. (2) 239 207
During 2008, Nokia’s interest expense increased significantly due to an increase in interestbearing
liabilities mainly related to financing of the NAVTEQ acquisition. Foreign exchange gains (or losses)
increased due to a higher cost of hedging and increased volatility on the foreign exchange market.
11. Income taxes
2008 2007 2006
EURm EURm EURm
Income tax expense
Current tax .......................................... (1 514) (2 209) (1 303)
Deferred tax ......................................... 433 687 (54)
Total ............................................... (1 081) (1 522) (1 357)
Finland.............................................. (604) (1 323) (941)
Other countries ....................................... (477) (199) (416)
Total ............................................... (1 081) (1 522) (1 357)
The differences between income tax expense computed at the statutory rate in Finland of 26% and
F42
Notes to the Consolidated Financial Statements (Continued)