Nokia 2011 Annual Report Download - page 143

consolidated R&D expenses for 2011 were EUR 5 612 million, a decrease of 4.3% from
EUR 5 863 million in 2010. The decrease in R&D expenses was primarily due to decreased R&D
expenses in Devices & Services and Location & Commerce partially offset by an increase in Nokia
Siemens Networks. R&D expenses in 2009 were EUR 5 909 million. These expenses represented
14.5%, 13.8% and 14.4% of Nokia net sales in 2011, 2010 and 2009, respectively. In 2011, Devices &
Services R&D expenses included EUR 8 million of purchase price accounting related items compared
to EUR 10 million in 2010. In 2009, Devices & Services R&D expenses included EUR 8 million of
purchase price accounting related items. In 2011, Nokia Siemens Networks R&D expenses included a
restructuring charge of EUR 28 million and EUR 61 million of purchase price accounting related items
compared to EUR 19 million and EUR 180 million in 2010, respectively. In 2009, Nokia Siemens
Networks R&D expenses included a restructuring charge of EUR 30 million and EUR 180 million of
purchase price accounting related items. In 2011, Location & Commerce R&D expenses included
EUR 343 million of purchase price accounting related items compared to EUR 366 million in 2010. In
2009, R&D expenses in Location & Commerce included EUR 346 million of purchase price accounting
related items.
At December 31, 2011, we employed 34 876 people in R&D, representing approximately 27% of our
total workforce, and had a strong research and development presence in 16 countries. R&D expenses
of Devices & Services as a percentage of its net sales were 10.2% in 2011 compared with 9.2% in
2010 and 9.8% in 2009. Location & Commerce R&D expenses represented 87.8% of its net sales in
2011, compared with 116.3% of its net sales in 2010 and 119.3% in 2009. In the case of Nokia
Siemens Networks, R&D expenses represented 15.8%, 17.0% and 18.1% of its net sales in 2011,
2010 and 2009, respectively.
We will continue to invest in R&D in an appropriate manner to support our new strategic objectives. At
the same time, the Microsoft partnership allows us to eliminate certain R&D investments in operating
systems and services. This is expected to result in lower overall R&D expenses over the longer-term in
our Devices & Services business.
5D. Trends Information
See Item 5A. “Operating Results—Principal Factors and Trends Affecting our Results of Operations”
for information on material trends affecting our business and results of operations.
5E. Off-Balance Sheet Arrangements
There are no material off-balance sheet arrangements that have or are reasonably likely to have a
current or future effect on our financial condition, changes in financial condition, revenues or expenses,
results of operations, liquidity, capital expenditures or capital resources that is material to investors.
5F. Tabular Disclosure of Contractual Obligations
The following table sets forth our contractual obligations for the periods indicated as at December 31,
2011.
Contractual Obligations Payments Due by Period
2012 2013-2014 2015-2016 Thereafter Total
(EUR millions)
Long-term liabilities ............................. 363 1817 292 1930 4402
Operating leases ............................... 292 360 179 196 1027
Purchase obligations ........................... 2259 44 2 — 2305
Total ......................................... 2914 2221 473 2126 7734
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