Nokia 2013 Annual Report Download - page 67

65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
28. PROVISIONS
Project Material IPR
EURm Restructuring losses Warranty liability infringements Other Total
At January1, 2012 483 205 688 125 431 396 2328
Exchange diff erences — —   — –  —
Additional provisions       
Changes in estimates –  –  –  –  –  –  – 
Charged to profi t and loss account     –  –  
Utilized during year –  –  –  –  –  –  – 
At December31, 2012 747 149 407 242 388 359 2292
Transfer to liabilities of disposal
groups held for sale  –  — –  –  –  –  – 
Exchange diff erences –  — –  — — –  – 
Additional provisions     —  
Changes in estimates –  –  –  –  –  –  – 
Charged to profi t and loss account    — –   
Utilized during year –  –  –  –  –  –  – 
At December31, 2013 443 152 94 19 15 199 922
 Provision balances before movements during the year.
EURm 2013 2012
Analysis of total provisions at December 31:
Non-current 242 304
Current 680 1988
The restructuring provision in  is mainly related to re-
structuring activities in NSN. In , the remaining balance of
NSN’s restructuring provision is EUR  million (EUR  million
in ). The majority of outfl ows related to the restructuring
is expected to occur over the next two years.
Restructuring and other associated expenses incurred in
NSN in , including mainly personnel related expenses as
well as expenses arising from the country and contract exits
based on NSN’s strategy that focuses on key markets and
product segments and costs incurred in connection with the
divestments of businesses, totaled EUR  million (EUR  
million in ).
In , the remaining balance of HERE’s restructuring provi-
sion is EUR  million. In addition to the plans announced in 
and , HERE announced during  further plans to reduce
its workforce in the map data collection and processing areas
of its business.
Provisions for losses on projects in progress are related to
NSN’s onerous contracts. Utilization of provisions for project
losses is generally expected to occur in the next  months.
Outfl ows for the warranty provision are generally expected
to occur within the next  months.
Material liability provision relates to non-cancellable pur-
chase commitments with suppliers. The outfl ows are expected
to occur over the next  months.
The IPR provision is based on estimated potential future
settlements for asserted past IPR infringements. Final resolu-
tion of IPR claims generally occurs over several periods.
Other provisions include provisions for various contractual
obligations and litigations. Outfl ows for other provisions
are generally expected to occur over the next two years.
Provisions for project losses and other provisions include
amounts recorded for claims and related to the exit from
various customer contracts in line with the NSN’s strategic
focus or due to challenging political or business environments.
Such provisions are estimated based on the information cur-
rently available and are subject to change as negotiations with
customers, trade sanctions environment, or other related
circumstances evolve.
Uncertain income tax positions regarding current tax are
included in Current income tax liabilities in the consolidated
statement of fi nancial position in  and have also been
reclassifi ed for comparability purposes in .
Provisions included in Liabilities of disposal groups classifi ed
as held for sale at December ,  were EUR   million.
Legal Matters
A number of Nokia companies are, and will likely continue to
be, subject to various legal proceedings and investigations
that arise from time to time, including proceedings regarding
intellectual property, product liability, sales and marketing
practices, commercial disputes, employment, and wrongful
discharge, antitrust, securities, health and safety, environ-
mental, tax, international trade and privacy matters. As a
result, the Group may become subject to substantial liabilities
that may not be covered by insurance and could aff ect our
business and reputation. While Nokia does not believe that any
of these legal proceedings will a have a material adverse eff ect
on its fi nancial position, litigation is inherently unpredictable
and large judgments sometimes occur. As a consequence,
Nokia may in the future incur judgments or enter into settle-
ments of claims that could have a material adverse eff ect on its
results of operations and cash fl ow.