Leases

12 Months Ended

Dec. 31, 2024

Presentation of leases for lessee [abstract]

Leases

4.3. Leases

Accounting policies

In the majority of its lease agreements, Nokia is acting

as a lessee. Nokia’s leased assets relate mostly to

commercial and industrial properties such as R&D,

production and office facilities. Nokia also leases vehicles

provided as employee benefits and service vehicles.

There are only minor lease contracts, mainly concerning

subleases of vacant leasehold or freehold facilities,

where Nokia is acting as a lessor.

As a lessee, Nokia recognizes a right-of-use asset and a

lease liability at the commencement date of the lease.

Right-of-use assets are measured at cost less

accumulated depreciation and impairment losses, and

adjusted for any remeasurements of the lease liabilities.

Right-of-use assets are depreciated on a straight-line

basis over the lease term as follows:

Buildings	3–15 years
Other	3–5 years

Lease liabilities are initially measured at the present value

of the lease payments made over the lease term. Nokia

uses its incremental borrowing rate to calculate the

present value as the interest rate implicit in the lease is

not readily determinable. Subsequently, lease liabilities

are measured on an amortized cost basis using the

effective interest method. In addition, lease liabilities are

remeasured if there is a lease modification, a change in

the lease term or a change in the future lease payments.

The interest component of the lease payments is

recognized as interest expense in financial expenses.

Nokia applies practical expedients whereby the payments

for short-term leases and leases of low-value assets are

recognized as an operating expense on a straight-line

basis over the lease term. In addition, Nokia does not

separate certain non-lease components from lease

components but instead accounts for each lease

component and associated non-lease component

as a single lease component.

Right-of-use assets

EURm	Buildings	Other	Total
2024
Acquisition cost at 1 January	1 434	275	1 709
Additions(1)	36	95	131
Assets held for sale	(25)	(47)	(72)
Retirements	(48)	(38)	(86)
Translation differences	25	1	26
Acquisition cost at 31 December	1 422	286	1 708
Accumulated depreciation at 1 January	(677)	(126)	(803)
Depreciation	(135)	(88)	(223)
Impairment	(43)	—	(43)
Assets held for sale	4	40	44
Retirements	48	38	86
Translation differences	(10)	(1)	(11)
Accumulated depreciation at 31 December	(813)	(137)	(950)
Net book value at 1 January	757	149	906
Net book value at 31 December	609	149	758
2023
Acquisition cost at 1 January	1 423	241	1 664
Additions(1)	74	129	203
Retirements	(39)	(96)	(135)
Translation differences	(24)	1	(23)
Acquisition cost at 31 December	1 434	275	1 709
Accumulated depreciation at 1 January	(589)	(146)	(735)
Depreciation	(140)	(76)	(216)
Impairment	2	—	2
Retirements	39	96	135
Translation differences	11	—	11
Accumulated depreciation at 31 December	(677)	(126)	(803)
Net book value at 1 January	834	95	929
Net book value at 31 December	757	149	906
(1)    Additions comprise new lease contracts as well as modifications and remeasurements of existing lease contracts.

Amounts recognized in the income statement

EURm	2024	2023	2022
Depreciation of right-of-use assets(1)	(223)	(216)	(225)
Interest expense on lease liabilities(1)	(33)	(28)	(26)
Impairment charges, net of reversals	(43)	2	6
Total	(299)	(242)	(245)
(1)Includes amounts related to both continuing and discontinued operations.

Amounts recognized in the income statement presented above

exclude expenses relating to short-term leases and leases of

low-value assets, income from subleasing right-of-use assets

and gains or losses arising from sale and leaseback transactions

as these are immaterial.

Amounts reported in the statement of cash flows

EURm	2024	2023	2022
Payment of principal portion of lease liabilities(1)	(233)	(239)	(217)
Interest paid on lease liabilities(1)	(33)	(28)	(26)
Total	(266)	(267)	(243)
(1)    Includes amounts related to both continuing and discontinued operations.

Amounts reported in the statement of cash flows exclude

payments for short-term leases and leases of low-value assets.

The maturity analysis of lease liabilities is presented in

Note 5.4. Financial risk management. Commitments related

to future lease contracts are presented in Note 6.1.

Commitments, contingencies and legal proceedings