Nokia 2011 Annual Report Download - page 277

The Group is party to routine litigation incidental to the normal conduct of business, including, but not
limited to, several claims, suits and actions both initiated by third parties and initiated by Nokia relating
to infringements of patents, violations of licensing arrangements and other intellectual property related
matters, as well as actions with respect to products, contracts and securities. Based on the information
currently available, and in the opinion of the management, outcome of and liabilities in excess of what
has been provided for related to these or other proceedings, in the aggregate, are not likely to be
material to the financial condition or result of operations.
As of December 31, 2011, the Group had purchase commitments of EUR 2 305 million
(EUR 2 606 million in 2010) relating to inventory purchase obligations, service agreements and
outsourcing arrangements, primarily for purchases in 2012. The Group has also entered into a
partnership with Microsoft whereas the Group is committed to a software royalty structure which
includes annual minimum software royalty commitments. In consideration for Nokia’s contribution
under the arrangement, the Group will also receive quarterly platform support payments from
Microsoft. The total amount of the platform support payments is expected to slightly exceed the total
amount of the minimum software royalty commitments.
30. Leasing contracts
The Group leases office, manufacturing and warehouse space under various non-cancellable
operating leases. Certain contracts contain renewal options for various periods of time.
The future costs for non-cancellable leasing contracts are as follows:
Operating
leases
Leasing payments, EURm .......................................... 2012 292
2013 206
2014 154
2015 108
2016 71
Thereafter 196
Total 1 027
Rental expense amounted to EUR 457 in 2011 (EUR 429 million in 2010 and EUR 436 million in 2009).
31. Related party transactions
At December 31, 2011, the Group had borrowings amounting to EUR 69 million (EUR 69 million in
2010 and EUR 69 million in 2009) from Nokia Unterstützungskasse GmbH, the Group’s German
pension fund, which is a separate legal entity. The loan bears interest at 6% annum and its duration is
pending until further notice by the loan counterparts who have the right to terminate the loan with a
90 day notice period.
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