Nokia 2009 Annual Report Download - page 228

16. Derivative financial instruments (Continued)
2008 Fair value
(1)
Notional
(2)
Fair value
(1)
Notional
(2)
Assets Liabilities
EURm EURm EURm EURm
Hedges of net investment in foreign subsidiaries:
Forward foreign exchange contracts ........... 80 1045 (14) 472
Currency options bought .................... 30 724 — —
Currency options sold ....................... — — (44) 768
Cash flow hedges:
Forward foreign exchange contracts ........... 562 14577 (445) 11792
Derivatives not designated in hedge accounting
relationships carried at fair value through profit
and loss:
Forward foreign exchange contracts ........... 322 7817 (416) 7370
Currency options bought .................... 6 201 — —
Currency options sold ....................... — — (5) 186
Interest rate futures ........................ 6 21 — —
Interest rate swaps......................... 7 618 — —
Cash settled equity options bought
(3)
.......... 1 25 — —
Cash settled equity options sold
(3)
............. — — — (13)
1 014 25 028 (924) 20 575
(1)
The fair value of derivative financial instruments is included on the asset side under heading
Other financial assets and on the liability side under Other financial liabilities.
(2)
Includes the gross amount of all notional values for contracts that have not yet been settled or
cancelled. The amount of notional value outstanding is not necessarily a measure or indication of
market risk, as the exposure of certain contracts may be offset by that of other contracts.
(3)
Cash settled equity options are used to hedge risk relating to employee incentive programs and
investment activities.
(4)
These crosscurrency interest rate swaps have been designated partly as fair value hedges and
partly as cash flow hedges.
17. Inventories
2009 2008
EURm EURm
Raw materials, supplies and other ......................................... 409 519
Work in progress . . ..................................................... 681 744
Finished goods ......................................................... 775 1 270
Total ................................................................. 1 865 2 533
18. Prepaid expenses and accrued income
Prepaid expenses and accrued income totalled EUR 4 551 million (EUR 4 538 million in 2008).
In 2009, prepaid expenses and accrued income included advance payments to Qualcomm of EUR
1 264 million (1 358 million in 2008). In 2008, Nokia and Qualcomm entered into a new 15year
agreement, under the terms of which Nokia has been granted a license to all Qualcomm’s patents for
F54
Notes to the Consolidated Financial Statements (Continued)