Nokia 2012 Annual Report Download - page 266

shares related to the bond as well as the interest on the convertible bond were currently excluded from
the calculation of dilutive shares because they were determined to be anti-dilutive at December 31,
2012.
29. Commitments and contingencies
2012 2011
EURm EURm
Collateral for our own commitments
Property under mortgages ............................................... —18
Assets pledged ........................................................ 38 2
Contingent liabilities on behalf of Group companies
Other guarantees ...................................................... 937 1 292
Contingent liabilities on behalf of Associated companies
Financial guarantees on behalf of associated companies ...................... 11 —
Contingent liabilities on behalf of other companies
Financial guarantees on behalf of third parties(1) ............................. 12 —
Other guarantees ...................................................... 68 16
Financing commitments
Customer finance commitments(1) ......................................... 34 86
Venture fund commitments .............................................. 282 133
(1) See also Note 34.
The amounts above represent the maximum principal amount of commitments and contingencies.
Other guarantees include commercial guarantees of EUR 598 million in 2012 (EUR 997 million in
2011) 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 decreased mainly due to expired guarantees.
Financing commitments of EUR 34 million in 2012 (EUR 86 million in 2011) 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 282 million in 2012 (EUR 133 million in 2011) 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 and underlying fund activities.
As of December 31, 2012, the Group had purchase commitments of EUR 2 042 million (EUR 2 305 million
in 2011) relating to inventory purchase obligations, service agreements and outsourcing arrangements,
primarily for purchases in 2013. 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
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