Nokia 2013 Annual Report Download - page 44

NOKIA IN 2013
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Results of discontinued
operations, EURm 2013 2012 2011
Net sales 10735 15152 23091
Cost of sales – 8526 – 12320 – 17292
Gross profi t 2209 2832 5799
Research and development
expenses – 1130 – 1658 – 2211
Selling and marketing expenses – 1345 – 1857 –2179
Administrative and
general expenses – 215 – 286 – 370
Other income and expenses – 109 – 510 – 723
Operating loss (–)/profi t (+) – 590 – 1479 316
Financial income (+)/expense (–) 10 18 28
Income tax – 200 – 842 – 216
Loss (–)/profi t (+) for the year – 780 – 2303 128
Depriciation and amortization 168 238 244
Cash fl ows (used in) discontinued
operation, EURm 2013 2012 2011
Net cash used
in operating activities – 1062 – 2252 – 95
Net cash used
in investing activities – 130 – 68 – 206
Net cash used
in fi nancing activities – 21 — —
Net cash fl ow for the year – 1213 – 2320 – 301
Devices & Services is comprised of two previously report-
able segments, Smart Devices and Mobile Phones as well as
Devices & Services Other. Smart Devices focuses on Nokia’s
most advanced products, including smartphones powered by
the Windows Phone system and has profi t-and-loss respon-
sibility and end-to-end accountability for the full consumer
experience, including product development, product man-
agement and product marketing. Mobile Phones focuses on
the area of mass market entry and feature phones as well as
aff ordable smart phones and has profi t-and-loss responsibility
and end-to-end accountability for the full consumer experi-
ence, including development, management and marketing of
feature phone products, services and applications. Devices
& Services Other includes net sales related to spare parts,
related cost of sales and operating expenses and operating
results of Vertu through October , , the date of divest-
ment of the business. Devices & Services Other also includes
major restructuring projects/programs related to the Devices
& Services business as well as other unallocated items.
Eff ect of disposal on the fi nancial
position of the Group, EURm 2013
Goodwill and other intangible assets 1426
Property plant and equipment 559
Deferred tax assets and non-current assets 381
Inventories 347
Trade and other receivables 691
Prepaid and other current assets 1854
Assets of disposal groups
classifi ed as held for sale 5258
Deferred tax liabilities and other liabilities 114
Trade and other payables 1381
Deferred income and accrued expense 2220
Provisions 1013
Liabilities of disposal groups
classifi ed as held for sale 4 728
4. PERCENTAGE OF COMPLETION
Contract sales recognized under percentage of completion
accounting were EUR   million in  (EUR   million in
 and EUR   million in ). Service revenue for managed
services and network maintenance contracts were EUR  in
 (EUR   million in  and EUR   million in ).
Advances received related to construction contracts,
included in accrued expenses and other liabilities, are EUR 
million at December ,  (EUR  million in ). Included
in accounts receivable are contract revenues recorded prior to
billings of EUR  million at December ,  (EUR  million
in ) and billings in excess of costs incurred are EUR  mil-
lion at December ,  (EUR  million in ).
The aggregate amount of costs incurred and recognized
profi ts (net of recognized losses) under construction con-
tracts in progress since inception is EUR   million at
December,  (EUR   million in ).
Retentions related to construction contracts, included in
accounts receivable, are EUR  million at December , 
(EUR  million at December , ).
5. PERSONNEL EXPENSES
Continuing operations, EURm 2013 2012 2011
Wages and salaries 3432 4295 3875
Share-based
compensation expense 42 11 6
Pension expenses, net 206 232 220
Other social expenses 403 507 517
Personnel expenses total 4083 5045 4618
Personnel expenses include termination benefi ts.
Pension expenses, comprised of multi-employer, insured
and defi ned contribution plans were EUR  million in 
(EUR  million in  and EUR  million in ). Expenses
related to defi ned benefi t plans comprise the remainder.