Nokia 2011 Annual Report Download - page 242

The amounts recognized in the income statement are as follows:
2011 2010 2009
EURm EURm EURm
Current service cost .................................................. 59 61 55
Interest cost ........................................................ 83 78 69
Expected return on plan assets ........................................ (77) (76) (70)
Net actuarial (gains) losses recognized in year ............................ 7(1) (9)
Impact of paragraph 58 (b) limitation .................................... (7) 35
Past service cost (gain) loss ........................................... 11—
Curtailment ......................................................... (11) (1) —
Settlement ......................................................... (6) (11) —
Total, included in personnel expenses ................................... 49 54 50
Movements in prepaid (accrued) pension costs recognized in the statement of financial position are as
follows:
2011 2010
EURm EURm
Prepaid (accrued) pension costs at beginning of year ............................. (84) (106)
Net income (expense) recognized in the profit and loss account .................... (49) (54)
Contributions paid .......................................................... 54 62
Benefits paid .............................................................. 914
Business combinations ...................................................... (2) 2
Foreign exchange .......................................................... 2(2)
Prepaid (accrued) pension costs at end of year (1) ................................ (70) (84)
(1) included within prepaid expenses and accrued income/accrued expense
The accrued pension cost above is made up of a prepayment of EUR 106 million (EUR 85 million in
2010) and an accrual of EUR 176 million ( EUR 169 million in 2010).
2011 2010 2009 2008 2007
EURm EURm EURm EURm EURm
Present value of defined benefit obligations ............. (1 737) (1 544) (1 411) (1 205) (2 266)
Plan assets at fair value ............................. 1 657 1 494 1 330 1 197 2 174
Surplus (deficit) .................................... (80) (50) (81) (8) (92)
Experience adjustments arising on plan obligations amount to a gain of EUR 33 million in 2011 (gain of
EUR 18 million in 2010, a loss of EUR 12 million in 2009, a gain of EUR 50 million in 2008, a loss of
EUR 31 million in 2007).
Experience adjustments arising on plan assets amount to a loss of EUR 14 million in 2011 (a gain of
EUR 9 million in 2010, EUR 54 million in 2009, a loss of EUR 22 million in 2008, EUR 3 million in
2007).
The principal actuarial weighted average assumptions used were as follows:
2011 2010
%%
Discount rate for determining present values ...................................... 4.9 5.1
Expected long-term rate of return on plan assets ................................... 4.5 5.1
Annual rate of increase in future compensation levels ............................... 2.4 2.6
Pension increases ............................................................ 2.0 2.0
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