Nokia 2011 Annual Report Download - page 276

29. Commitments and contingencies
2011 2010
EURm EURm
Collateral for our own commitments
Property under mortgages ............................................... 18 18
Assets pledged ........................................................ 25
Contingent liabilities on behalf of Group companies
Other guarantees ...................................................... 1 292 1 262
Contingent liabilities on behalf of other companies
Other guarantees ...................................................... 16 17
Financing commitments
Customer finance commitments(1) ......................................... 86 85
Venture fund commitments(2) ............................................. 133 238
(1) See also Note 34 b).
(2) See also Note 34 a).
The amounts above represent the maximum principal amount of commitments and contingencies.
Property under mortgages given as collateral for our own commitments comprise of mortgages given
to the Finnish National Board of Customs as a general indemnity of EUR 18 million in 2011
(EUR 18 million in 2010).
Assets pledged for the Group’s own commitments include available-for-sale investments of
EUR 2 million in 2011 (EUR 5 million of available-for-sale investments in 2010).
Other guarantees include guarantees of EUR 997 million in 2011 (EUR 984 million in 2010) provided to
certain Nokia Siemens Networks’ customers in the form of bank guarantees or corporate guarantees
issued by Nokia Siemens Networks’ Group entity. These instruments entitle the customer to claim
payment as compensation for non-performance by Nokia Siemens Networks of its obligations under
network infrastructure supply agreements. Depending on the nature of the guarantee, compensation is
payable on demand or subject to verification of non-performance. Volume of Other guarantees has
slightly increased due to release of certain commercial guarantees and due to transferred business
related commercial guarantees from Motorola Solutions, Inc.
Contingent liabilities on behalf of other companies were EUR 16 million in 2011 (EUR 17 million in
2010).
Financing commitments of EUR 86 million in 2011 (EUR 85 million in 2010) are available under loan
facilities negotiated mainly with Nokia Siemens Networks’ customers. Availability of the amounts is
dependent upon the borrower’s continuing compliance with stated financial and operational covenants
and compliance with other administrative terms of the facility. The loan facilities are primarily available
to fund capital expenditure relating to purchases of network infrastructure equipment and services.
Venture fund commitments of EUR 133 million in 2011 (EUR 238 million in 2010) are financing
commitments to a number of funds making technology related investments. As a limited partner in
these funds Nokia is committed to capital contributions and also entitled to cash distributions according
to respective partnership agreements.
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