Operating expenses and other operating income

12 Months Ended

Dec. 31, 2024

Expenses by nature [abstract]

Operating expenses and other operating income

2.3. Operating expenses and other

operating income

Accounting policies

Nokia presents its income statement based on the

function of expenses as it considers this to provide more

relevant information about its financial performance.

Information about the nature of expenses is provided

in the notes. Certain items of income and expenses,

such as gains and losses from venture funds, are

presented as other operating income and expenses

as Nokia considers these items to be related to its

operating activities but not to any specific functions.

Government grants received as compensation for

expenses incurred are recognized as a reduction of

the related expenses except for certain non-recurring

grants that are recognized as other operating income.

Government grants received in the form of R&D tax

credits are recognized as a reduction of R&D expenses if

the tax credit relates to the R&D expenditures incurred

by Nokia and the tax credit is reimbursed in cash by the

government in cases where Nokia is not able to offset it

against its income tax payable. R&D tax credits that do

not meet both conditions are recognized as income

tax benefit.

Expenses by nature

EURm	2024	2023	2022
Personnel expenses	7 563	7 294	7 732
Material and customer contract related expenses	7 660	9 947	10 748
Depreciation and amortization	973	1 012	1 073
IT services	370	388	368
Impairment charges	97	24	90
Other	990	979	1 546
Total operating expenses	17 653	19 644	21 557

Operating expenses include government grant income and R&D

tax credits of EUR 160 million (EUR 160 million in 2023 and

EUR 133 million in 2022) most of which have been recognized

as a deduction against research and development expenses.

Restructuring charges by function(1)

EURm	2024	2023	2022
Cost of sales	155	153	85
Research and development expenses	135	61	37
Selling, general and administrative expenses	139	137	46
Total restructuring charges	429	351	168

(1)Restructuring charges include defined benefit plan curtailment income and expenses.