Nokia 2010 Annual Report Download - page 254

27. Provisions (Continued)
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 2011.
In 2010, Devices & Services recognized restructuring provisions of EUR 85 million mainly related to
changes in Symbian Smartphones and Services organizations as well as certain corporate functions
that are expected to result in a reduction of up to 1 800 employees globally. 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.
Restructuring and other associated expenses incurred in Nokia Siemens Networks in 2010 totaled
EUR 316 million (EUR 310 million in 2009) including mainly personnel related expenses as well as
expenses arising from the elimination of overlapping functions, and the realignment of product
portfolio and related replacement of discontinued products in customer sites. These expenses
included EUR 173 million (EUR 151 million in 2009) impacting gross profit, EUR 19 million (EUR
30 million in 2009) research and development expenses, EUR 21 million reversal of provision (EUR
12 million in 2009) in selling and marketing expenses, EUR 76 million (EUR 103 million in
2009) administrative expenses and EUR 27 million (EUR 14 million in 2009) other operating expenses.
EUR 510 million was paid during 2010 (EUR 514 million during 2009).
Provisions for losses on projects in progress are related to Nokia Siemens Networks’ onerous
contracts. Utilization of provisions for project losses is generally expected to occur in the next
18 months.
The IPR provision is based on estimated future settlements for asserted and unasserted past IPR
infringements. Final resolution of IPR claims generally occurs over several periods.
Other provisions include provisions for noncancelable purchase commitments, product portfolio
provisions for the alignment of the product portfolio and related replacement of discontinued
products in customer sites and provision for pension and other social security costs on sharebased
awards. In 2010, usage of other provisions mainly relates to product portfolio provisions. Most of
those contracts were signed in 2008 and contract fullfillment occurred primarily in 2009 and 2010.
28. Earnings per share
2010 2009 2008
Numerator/EURm
Basic/Diluted:
Profit attributable to equity holders of the parent ....... 1 850 891 3 988
Denominator/1000 shares
Basic:
Weighted average shares ........................... 3 708 816 3 705 116 3 743 622
Effect of dilutive securities:
Performance shares ............................. 324 9 614 25 997
Restricted shares................................ 4 110 6 341 6 543
Stock options .................................. —1 4 201
4 434 15 956 36 741
Diluted:
Adjusted weighted average and assumed conversions . . . . 3 713 250 3 721 072 3 780 363
F66
Notes to the Consolidated Financial Statements (Continued)