Nokia 2010 Annual Report Download - page 252

24. Sharebased payment (Continued)
ADSs are purchased on a monthly basis. As of December 31, 2010, approximately 12.8 million ADSs
had been purchased under this plan since its inception, and there were a total of approximately 550
participants in the plan.
25. Deferred taxes
2010 2009
EURm EURm
Deferred tax assets:
Intercompany profit in inventory. ....................................... 76 77
Tax losses carried forward ............................................. 388 263
Warranty provision................................................... 82 73
Other provisions ..................................................... 268 315
Depreciation differences and untaxed reserves ............................. 782 796
Sharebased compensation ............................................ 21 15
Other temporary differences ........................................... 447 320
Reclassification due to netting of deferred taxes ........................... (468) (352)
Total deferred tax assets ................................................ 1 596 1 507
Deferred tax liabilities:
Depreciation differences and untaxed reserves ............................. (406) (469)
Fair value gains/losses ................................................ (13) (67)
Undistributed earnings ............................................... (353) (345)
Other temporary differences
(1)
.......................................... (718) (774)
Reclassification due to netting of deferred taxes ........................... 468 352
Total deferred tax liabilities ............................................. (1 022) (1 303)
Net deferred tax assets ................................................. 574 204
The tax charged to equity: .............................................. (1) (13)
(1)
In 2010, other temporary differences include a deferred tax liability of EUR 542 million (EUR
744 million in 2009) arising from purchase price allocation related to Nokia Siemens Networks
and NAVTEQ.
At December 31, 2010, the Group had loss carry forwards, primarily attributable to foreign
subsidiaries of EUR 1 792 million (EUR 1 150 million in 2009), most of which will not expire within
10 years.
At December 31, 2010, the Group had loss carry forwards, temporary differences and tax credits of
EUR 3 323 million (EUR 2 532 million in 2009) for which no deferred tax asset was recognized due to
uncertainty of utilization of these items. Most of these items do not have an expiry date.
At December 31, 2010, the Group had undistributed earnings of EUR 360 million (EUR 322 million in
2009) on which no deferred tax liability has been formed as these have been considered to be
permanent investments.
F64
Notes to the Consolidated Financial Statements (Continued)