Nokia 2011 Annual Report Download - page 251

11. Financial income and expenses
EURm 2011 2010 2009
Dividend income on available-for-sale financial investments ................... 223
Interest income on available-for-sale financial investments .................... 169 110 101
Interest income on loans receivables carried at amortized cost ................. 1——
Interest income on investments at fair value through profit and loss ............. 18 28 11
Net interest income / (expense) on derivatives not under hedge accounting ...... (12) (20) (8)
Interest expense on financial liabilities carried at amortized cost ................ (255) (254) (243)
Net realised gains (or losses) on disposal of fixed income available-for-sale
financial investments ................................................. (4) 12
Net fair value gains (or losses) on investments at fair value through profit and
loss ............................................................... 102 (3) 19
Net gains (net losses) on other derivatives designated at fair value through profit
and loss ............................................................ (121) 19 (7)
Net fair value gains (or losses) on hedged items under fair value hedge
accounting .......................................................... (82) (63) (4)
Net fair value gains (or losses) on hedging instruments under fair value hedge
accounting .......................................................... 72 58 —
Net foreign exchange gains (or losses) ....................................
From foreign exchange derivatives designated at fair value through profit and
loss ............................................................ 74 58 (358)
From balance sheet items revaluation ................................. (34) (165) 230
Other financial income .................................................. 49 73 18
Other financial expenses ................................................ (81) (129) (29)
Total ................................................................ (102) (285) (265)
During 2011, the Group received distributions of 45 million (EUR 69 million in 2010) included in other
financial income from a private fund held as non-current available-for-sale. Due to these distributions
resulting in a reduction in estimated future cash flows, the Group also recognized an impairment loss of
38 million (EUR 94 million in 2010) for the fund included in other financial expenses. Due to
deterioration of the Asset Backed Security market the Group recognized an impairment loss of
15 million in 2011 (EUR 0 million in 2010) included in other financial expenses. Additional information
can be found in Note 8 and Note 16.
During 2011, interest income increased mainly as a result of higher cash levels than in 2010 and
higher interest rates in certain currencies where the Group has investments. Lower interest rates in
EUR and USD had a positive impact on Net fair value gains (or losses) on investments at fair value
through profit and loss but these gains were offset by the negative impact on Net gains (or losses) on
other derivatives designated at fair value through profit and loss that was affected by similar factors.
Foreign exchange gains (or losses) were positively impacted by low and in some cases negative
hedging costs (i.e. income) in 2011 as well as increased volatility on the foreign exchange market.
During 2009, interest income decreased significantly due to lower interest rates and interest expense
has increased given higher long-term funding with a higher cost.
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