Nokia 2009 Annual Report Download - page 242

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25. Accrued expenses (Continued)
Other operating expense accruals include deferred service revenue, accrued discounts, royalties and
marketing expenses as well as various amounts which are individually insignificant.
26. Provisions
Warranty Restructuring
IPR
infringements
Project
losses Tax Other Total
EURm EURm EURm EURm EURm EURm EURm
At January 1, 2008 ........... 1489 617 545 116 452 498 3717
Exchange differences . . . ....... (16) — — — — — (16)
Acquisitions ................. 1 — 3 — 6 2 12
Additional provisions . . . ....... 1211 533 266 389 47 747 3193
Change in fair value ........... — — — — — (7) (7)
Changes in estimates . . . ....... (240) (211) (92) (42) (45) (143) (773)
Charged to profit and loss
account ................... 971 322 174 347 2 597 2413
Utilized during year ........... (1070) (583) (379) (218) — (284) (2534)
At December 31, 2008 ........ 1375 356 343 245 460 813 3592
Warranty Restructuring
IPR
infringements
Project
losses Tax Other Total
EURm EURm EURm EURm EURm EURm EURm
At January 1, 2009 ........... 1375 356 343 245 460 813 3592
Exchange differences . . . ....... (13) — — — — — (13)
Additional provisions . . . ....... 793 268 73 269 139 344 1886
Change in fair value ........... — — — — — (1) (1)
Changes in estimates . . . ....... (178) (62) (9) (63) (325) (174) (811)
Charged to profit and loss
account ................... 615 206 64 206 (186) 169 1074
Utilized during year ........... (1006) (378) (17) (254) — (280) (1935)
At December 31, 2009 ........ 971 184 390 197 274 702 2718
2009 2008
EURm EURm
Analysis of total provisions at December 31:
Noncurrent .......................................................... 841 978
Current.............................................................. 1877 2614
Outflows for the warranty provision are generally expected to occur within the next 18 months. In
2009, warranty provision decreased compared to 2008 primarily due to lower sales volumes in
Devices & Services. Timing of outflows related to tax provisions is inherently uncertain. In 2009, tax
provisions decreased due to the positive development and outcome of various prior year items.
The restructuring provision is mainly related to restructuring activities in Devices & Services and Nokia
Siemens Networks segments. The majority of outflows related to the restructuring is expected to
occur during 2010.
In 2009, Devices & Services recognized restructuring provisions of EUR 208 million mainly related to
measures taken to adjust our business operations and cost base according to market conditions. In
F68
Notes to the Consolidated Financial Statements (Continued)