Nokia 2010 Annual Report Download - page 273

35. Risk Management (Continued)
(5)
In 2010 the Group has changed the presentation of certain derivatives from net settled to gross
settled, to better reflect the nature of the contracts. The 2009 numbers have been aligned with
the new presentation. The net cash flows for each time buckets remain the same.
In addition to items presented in the above table, the Group has entered in 2010 into an agreement
to acquire the majority of the Motorola wireless network infrastructure assets for USD 1.2 billion in
cash and cash equivalents. The Motorola acquisition is expected to close after the final antitrust
approval by the Chinese regulatory authorities has been granted and the other closing conditions
have been met.
Hazard risk
Nokia strives to ensure that all financial, reputation and other losses to the Group and our customers
are minimized through preventive risk management measures. Insurance is purchased for risks, which
cannot be efficiently internally managed and where insurance markets offer acceptable terms and
conditions. The objective is to ensure that hazard risks, whether related to physical assets (e.g.
buildings) or intellectual assets (e.g. Nokia brand) or potential liabilities (e.g. product liability) are
optimally insured taking into account both cost and retention levels.
Nokia purchases both annual insurance policies for specific risks as well as multiline and/or multiyear
insurance policies, where available.
F85
Notes to the Consolidated Financial Statements (Continued)