Nokia 2011 Annual Report Download - page 272

On the basis of these plans, the Group had 0.1 million stock options outstanding on December 31,
2011. The weighted average exercise price is USD 11.02.
In connection with the July 10, 2008 acquisition of NAVTEQ, the Group assumed NAVTEQ’s 2001 Stock
Incentive Plan (“NAVTEQ Plan”). All unvested NAVTEQ restricted stock units under the NAVTEQ Plan
were converted to an equivalent number of restricted stock units entitling their holders to Nokia shares.
The maximum number of Nokia shares to be delivered to NAVTEQ employees during the years 2008-
2012 is approximately 3 million, of which approximately 2.5 million shares have already been delivered by
December 31, 2011. The Group does not intend to make further awards under the NAVTEQ Plan.
The Group also has an Employee Share Purchase Plan in the United States, which permits all full-time Nokia
employees located in the United States to acquire Nokia ADSs at a 15% discount. The purchase of the ADSs
is funded through monthly payroll deductions from the salary of the participants, and the ADSs are purchased
on a monthly basis. As of December 31, 2011, approximately 800 000 ADSs had been purchased under this
plan during 2011, and there were a total of approximately 1 220 participants in the plan.
Nokia also has a one-time special CEO incentive program designed to align the CEO’s compensation
to increased shareholder value and links a meaningful portion of CEO’s compensation directly to the
performance of Nokia’s share price over the period of 2011-2012. Mr. Elop has the opportunity to earn
125 000 – 750 000 Nokia shares at the end of 2012 based on two independent criteria: Total
Shareholder Return (TSR) relative to a peer group of companies over the two-year period and Nokia’s
absolute share price at the end of 2012. If the minimum performance for neither of the two
performance criterion is reached, no share delivery will take place. Shares earned under this plan are
subject to an additional one-year vesting period.
25. Deferred taxes
2011 2010
EURm EURm
Deferred tax assets:
Intercompany profit in inventory ................................... 66 76
Tax losses carried forward and unused tax credits .................... 715 488
Warranty provision .............................................. 63 82
Other provisions ................................................ 363 268
Depreciation differences and untaxed reserves ...................... 711 782
Share-based compensation ...................................... 11 21
Other temporary differences ...................................... 362 347
Reclassification due to netting of deferred taxes ...................... (443) (468)
Total deferred tax assets ................................................ 1848 1 596
Deferred tax liabilities:
Depreciation differences and untaxed reserves ...................... (500) (406)
Fair value gains/losses .......................................... (65) (13)
Undistributed earnings ........................................... (268) (353)
Other temporary differences (1) .................................... (410) (718)
Reclassification due to netting of deferred taxes ...................... 443 468
Total deferred tax liabilities ............................................... (800) (1 022)
Net deferred tax asset .................................................. 1 048 574
Tax charged to equity ................................................... (4) (1)
(1) In 2011 other temporary differences include a deferred tax liability of EUR 339 million
(EUR 542 million in 2010) arising from purchase price allocation related to Nokia Siemens
Networks and NAVTEQ.
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