Nokia 2013 Annual Report Download - page 42

NOKIA IN 2013
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■ On September ,  Nokia signed an agreement to enter
into a transaction whereby Nokia sold substantially all of
its Devices & Services business to Microsoft (“sale of the
D&S business”). After receiving shareholder confi rmation
and approval at Nokia’s Extraordinary General Meeting on
November ,  for the transaction, Nokia began pre-
senting substantially all of its former Devices & Services
business as discontinued operations, and Advanced
Technologies as an operating and reportable segment.
Previously Advanced Technologies was part of the Devices &
Services business. The Sale of D&S Business was completed
on April , .
■ Substantially all of the former Devices & Services business is
presented as discontinued operations and at the same time
forms an operating and reportable segment. Discontinued
business is described in more detail in note .
Prior period results have been regrouped and recasted for
comparability purposes according to the new operational and
reporting structure.
Nokia’s reportable segments represent the strategic busi-
ness units that off er diff erent products and services. The chief
operating decision maker receives monthly fi nancial infor-
mation for these business units. Key fi nancial performance
measures of the reportable segments include primarily net
sales and contribution/operating profi t. Segment contribution
for Mobile Broadband and Global Services consists of net sales,
cost of sales and operating expenses, and excludes restruc-
turing and associated charges, purchase price accounting
related charges and certain other items not directly related
to the segments. Operating profi t is presented for HERE and
Advanced Technologies. The chief operating decision maker
evaluates the performance of its segments and allocates
resources to them based on operating profi t/contribution.
Mobile Broadband provides mobile operators with radio and
core network software together with the hardware needed to
deliver mobile voice and data services.
Global Services provides mobile operators with a broad
range of services from network planning and optimization
to network implementation, system integration and care
services, as well as managed services for network and service
operations.
NSN Other includes net sales and related cost of sales and
operating expenses of non-core businesses as well as Optical
Networks business until May,  when its divestment
was completed. It also includes restructuring and associated
charges as well as purchase price accounting related charges
and certain other items for NSN business.
HERE focuses on the development of location-based ser-
vices and local commerce. The HERE brand was introduced for
our location and mapping service in , and as of January ,
 our former Location & Commerce business and report-
able segment was renamed HERE.
The Advanced Technologies business builds on Nokia’s Chief
Technology Offi ce (CTO) and Intellectual Property Rights activi-
ties. Advanced Technologies focuses on technology develop-
ment and licensing and is planning to continue to build Nokia’s
patent portfolio and expand its technology licensing program.
Advanced Technologies includes net sales from both intellec-
tual property right activities and technology licensing.
Corporate Common Functions consists of company-wide
functions.
Devices & Services business focuses on developing and
selling smartphones powered by the Windows Phone system,
feature phones and aff ordable smart phones.
The accounting policies of the segments are the same as
those described in Note . Nokia accounts for inter-segment
revenues and transfers as if the revenues were to third parties,
that is, at current market prices.
No single customer represents % or more of Group
revenues.