Nokia 2013 Annual Report Download - page 52

NOKIA IN 2013
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(renamed Nokia Solutions and Networks) for a consideration
of EUR   million. Cash of EUR   million was paid at the
closing of the transaction. The remaining EUR  million was
fi nanced through a secured loan from Siemens, which was
repaid in September . Transaction related costs amounted
to EUR  million.
Upon closing, the parent entity of NSN business, Nokia
Siemens Networks B.V., became wholly owned subsidiary of
Nokia. Nokia continues to control and consolidate NSN’s results
and fi nancial position and the acquisition of Siemens’ non-
controlling interest is accounted for as an equity transaction.
The transaction reduced the Group’s equity by EUR  million,
representing the diff erence between the carrying amount of
Siemens’ non-controlling interest on the date of the acquisi-
tion of EUR  million and the total consideration paid of EUR
  million. The impact to individual shareholder’s equity line
items is presented in “Acquisition of non-controlling interest”
line item in the consolidated statement of changes in share-
holder’s equity and in the accompanying notes.
The transaction resulted in changes in the reporting struc-
ture of the NSN business, for further information refer to
Note.
Acquisitions completed in 2012
During , the Group completed minor acquisitions that
did not have a material impact on the consolidated fi nancial
statements. The purchase consideration paid and the total of
goodwill arising from these acquisitions amounted to EUR 
million and EUR  million, respectively. The goodwill arising
from these acquisitions is attributable to assembled workforce
and post-acquisition synergies.
■ Scalado AB, based in Lund, Sweden, provides and develops
imaging software and experiences. The Group acquired im-
aging specialists, all technologies and intellectual property
from Scalado AB on July , .
■ earthmine Inc., based in California, USA, develops systems
to collect and process D imagery. The Group acquired a
% ownership interest in earthmine on November ,
.
11. DEPRECIATION AND AMORTIZATION
EURm 2013 2012 2011
Depreciation and amortization
by function
Cost of sales 88 119 151
Research and development 1 293 525 586
Selling and marketing 2 95 334 435
Administrative and general 84 110 146
Total 560 1088 1318
 In , depreciation and amortization allocated to research and develop-
ment included amortization of acquired intangible assets of EUR 
million (EUR  million in  and EUR  million in ).
 In , depreciation and amortization allocated to selling and marketing
included amortization of acquired intangible assets of EUR  million
(EUR  million in  and EUR  million in ).
fees and advertising, will grow in the future as more custom-
ers demand complete, end-to-end location solutions and as
cloud computing and cloud-based services garner greater
market acceptance. Actual short and long-term performance
could vary from management’s forecasts and impact future
estimates of recoverable value. Since the recoverable amount
exceeds the carrying amount only by a small margin, any mate-
rial adverse changes such as market deterioration or changes
in the competitive landscape could impact management’s
estimates of the main drivers and result in impairment loss.
Other than as disclosed for the HERE CGU above, manage-
ment believes that no reasonably possible change in any of the
above key assumptions would cause the carrying value of any
cash generating unit to exceed its recoverable amount.
Other intangible assets
There were no impairment charges recognized during .
During , a charge of EUR  million was recorded on
intangible assets attributable to the decision to transition
certain operations into maintenance mode within NSN. These
charges were recorded in other operating expenses.
Property, plant and equipment
During  Nokia Solutions and Networks recorded an impair-
ment charge of EUR  million (EUR  million in ) on prop-
erty, plant and equipment as a result of the remeasurement
of the Optical Networks disposal group at fair value less cost
of disposal. Furthermore, the Group recognized impairment
losses of EUR  million related to certain properties attribut-
able to Corporate Common Functions.
Investments in associated companies
No material impairment charges were recognized during .
After application of the equity method, including recogni-
tion of the Group’s share of results of associated companies,
the Group determined that recognition of impairment losses
of EUR  million in  (EUR  million in ) was necessary
to adjust the Group’s investment in associated companies to
its recoverable amount. The charges were recorded in other
operating expense and are included in Corporate Common
Functions.
Available-for-sale investments
The Group’s investment in certain equity and interest-bearing
securities held as available-for-sale suff ered a signifi cant
or prolonged decline in fair value resulting in an impairment
charge of EUR  million (EUR  million in , EUR  million
in ). These impairment losses are included within fi nancial
income and expenses and other operating expenses in the
consolidated income statement. See also Note .
10. ACQUISITIONS
Acquisitions completed in 2013
ACQUISITION OF SIEMENS’ NON-CONTROLLING
INTEREST IN NSN
On August ,  Nokia completed its acquisition of Siemens’
% interest in their joint venture, Nokia Siemens Networks