Nokia 2011 Annual Report Download - page 247

the acquisitions of Enpocket and Intellisync and the asset acquisition of Twango. The impairment
charge was recognized in other operating expense and is included in Devices & Services Other.
Property, plant and equipment and inventories
The majority of 2011 impairment losses recognized with respect to property, plant and equipment
resulted from EUR 94 million charges related to the Group’s restructuring programs, including the
closure of manufacturing operations in Cluj, Romania, and consolidation of other office sites. The
charges were recorded in other operating expense and are included in Devices & Services Other.
Investments in associated companies
After application of the equity method, including recognition of the Group’s share of results of
associated companies, the Group determined that recognition of impairment losses of EUR 41 million
in 2011 (EUR 0 million in 2010, EUR 19 million in 2009) was necessary to adjust the Group’s
investment in associated companies to its recoverable amount.
Available-for-sale investments
The Group’s investment in certain equity and interest bearing securities held as available-for-sale
suffered a permanent decline in fair value resulting in an impairment charge of EUR 94 million (EUR
107 million in 2010, EUR 25 million in 2009). These impairment amounts are included within financial
expenses and other operating expenses in the consolidated income statement. See also Note 11.
9. Acquisitions
Acquisitions in 2011
Motorola
On April 30, 2011 Nokia Siemens Networks completed its acquisition of assets related to Motorola
Solutions’ networks business in exchange for a total consideration of EUR 642 million. The acquired
business consists of Motorola’s wireless networks infrastructure equipment manufacturing and sales
operations, including the GSM, CDMA, WCDMA, WiMAX and LTE product portfolios and services
offerings. The acquisition is expected to strengthen the Group’s position in certain regions, particularly
North America and Japan. The goodwill of EUR 155 million arising from the acquisition is attributable to
the increased presence in these key markets and the assembled workforce. The majority of the
goodwill acquired is expected to be deductible for income tax purposes.
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