Nokia 2013 Annual Report Download - page 50

NOKIA IN 2013
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9. IMPAIRMENT
EURm 2013 2012 2011
Goodwill — — 1090
Other intangible assets — 8 2
Property, plant and equipment 12 23 10
Inventories — — 7
Investments in associated
companies — 8 41
Available-for-sale investments 8 31 94
Continued operations, net 20 70 1 244
Discontinued operations, net — 39 94
Goodwill
Goodwill is allocated to the Group’s cash-generating units
(“CGUs”) or groups of cash-generating units for the purpose of
impairment testing. The allocation is made to those CGUs that
are expected to benefi t from the synergies of the business
combination in which the goodwill arose. As a result of the Sale
of the D&S business to Microsoft, as well as Nokia’s acquisition
of the Siemens’ stake in NSN, the Group reviewed the structure
of its CGUs.
In consequence of the Purchase Agreement with Microsoft,
the Smart Devices and Mobile Phones CGUs have been com-
bined to a single Devices & Services CGU and aligned with the
scope of the business being sold. The goodwill previously allo-
cated to the two separate CGUs was allocated to the combined
CGU for impairment testing purposes in . No goodwill was
allocated to the new Advanced Technologies CGU.
In previous years, the Group had defi ned the NSN operating
segment as a single CGU. As a consequence of Nokia’s acquisi-
tion of the Siemens minority stake in NSN and the resulting
change in reportable segments, the Group has identifi ed two
NSN related groups of CGUs to which goodwill has been al-
located: Radio Access Networks within the Mobile Broadband
operating segment and Global Services.
IAS  requires goodwill to be assessed annually for im-
pairment unless triggering events are identifi ed prior to the
annual testing date that indicate a potential impairment, in
which case an interim assessment is required. The annual im-
pairment testing for the Devices & Services and HERE CGUs is
performed as of October . The annual impairment testing for
the Nokia Solutions and Networks related groups of CGUs has
been performed as of September . An additional impairment
analysis specifi c to NSN CGUs was performed subsequently at
November ,  to align the annual testing date with NSN’s
annual fi nancial planning cycle. Management determined that
the signing of the agreement with Microsoft for the Sale of the
D&S business constituted a triggering event requiring an inter-
im impairment test for the Devices & Services and HERE CGUs.
Accordingly, an interim review was performed in September
. No impairment charges were recorded for any of the
CGUs as a result of either the interim or annual tests.
The Group allocated goodwill to the CGUs at each of the
respective years’ impairment testing date, as presented in the
table below:
8. OTHER INCOME AND EXPENSES
Continuing operations
EURm 2013 2012 2011
Other income
Distributions from unlisted
venture funds 97 22 26
FX gain on hedging forecasted
sales and purchases 36 26 2
Rental income 25 20 30
Profi t on sale of other fi xed assets 26 28 18
Gain on sale of real estate 6 79 9
Interest income from customer
receivables and overdue payments 27 10 11
Pension curtailments — 12 —
Other miscellaneous income 55 79 55
Other income, total 272 276 151
Other expenses
Restructuring and associated
charges – 395 – 1 174 – 169
Country and contract exits – 52 – 42 —
Divestment of businesses – 157 – 50 – 19
Loss on sale of property,
plant and equipment – 20 – 40 – 9
Impairment of shares in
associated companies — – 8 – 41
Other impairments – 13 – 29 – 66
Sale of receivables transactions – 53 – 44 – 33
Valuation allowances for
doubtful accounts – 30 – 34 33
FX loss on hedging forecasted
sales and purchases – 24 – 18 8
VAT and other indirect tax
write-off s and provisions – 37 – 25 – 35
Transaction costs related to
the Sale of D&S Business – 18 — —
Other miscellaneous expenses – 9 – 49 – 1
Other expenses, total – 808 – 1 513 – 332
In , other expenses from continuing operations included
restructuring and related charges of EUR  million, which
consists primarily of employee termination benefi ts. Restruc-
turing and related charges included EUR  million related to
NSN, recorded within NSN, other, EUR  million related to HERE,
EUR  million related to Advanced Technologies and EUR  mil-
lion related to Corporate Common Functions, respectively.
In , other expenses included restructuring and re-
lated charges of EUR   million, which consists primairily
of employee termination benefi ts. Restructuring and related
charges included EUR   million related to NSN, EUR  mil-
lion to HERE, EUR  million to Advanced Technologies and EUR 
million related to Corporate Common Functions, respectively.
In , other expenses included restructuring charges of
EUR  million. Restructuring charges inlcuded EUR  mil-
lion related to NSN, recorded within NSN Other, EUR  million
related to HERE, EUR  million to Advanced Technologies and
EUR  million to Corporate Common Functions, respectively.