Nokia 2013 Annual Report Download - page 71

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
mance. Volume of other guarantees has decreased mainly due
to expired guarantees.
Contingent liabilities on behalf of other companies were EUR
 million in  (EUR  million in ). The increase in vol-
ume is mainly due to the transfer of guarantees in connection
with the disposal of certain businesses where contractual risks
and revenues have been transferred, but some of the com-
mercial guarantees have not yet been re-assigned legally.
Financing commitments of EUR  million in  (EUR 
million in ) are available under loan facilities negotiated
mainly with NSN’s customers. Availability of the amounts is
dependent upon the borrower’s continuing compliance with
stated fi nancial and operational covenants and compliance with
other administrative terms of the facility. The loan facilities
are primarily available to fund capital expenditure relating to
purchases of network infrastructure equipment and services.
Venture fund commitments of EUR  million in 
(EUR million in ) are fi nancing commitments to a
number of funds making technology related investments.
Asalimited partner in these funds Nokia is committed to
capital contributions and also entitled to cash distributions ac-
cording to respective partnership agreements and underlying
fund activities.
As of December , , Nokia continuing operations had
purchase commitments of EUR  million (Nokia Group EUR
 million in ) relating to inventory purchase obliga-
tions, service agreements and outsourcing arrangements,
primarily for purchases in .
The Group is party to routine litigation incidental to the nor-
mal conduct of business, including, but not limited to, several
claims, suits and actions both initiated by third parties and
initiated by Nokia relating to infringements of patents, viola-
tions of licensing arrangements and other intellectual proper-
ty related matters, as well as actions with respect to products,
contracts and securities. Based on the information currently
available, in the opinion of management the outcome of and
liabilities in excess of what has been provided for related to
these or other proceedings, in the aggregate, are not likely to
be material to the fi nancial condition or result of operations.
See also Note .
31. LEASING CONTRACTS
The Group leases offi ce, manufacturing and warehouse space
under various non-cancellable operating leases. Certain con-
tracts contain renewal options for various periods of time.
The future costs for non-cancellable leasing contracts are
as follows:
Continuing operations
Leasing payments, EURm Operating leases
2014 139
2015 98
2016 66
2017 51
2018 45
Thereafter 151
Total 550
Rental expense amounted to EUR  million in  (EUR 
million in  and EUR  million in ).
32. RELATED PARTY TRANSACTIONS
At December , , the Group had borrowings amounting
to EUR  million (EUR  million in ) from Nokia Unterstüt-
zungsgesellschaft mbH, the Group’s German pension fund,
which is a separate legal entity. The loan bears interest at %
annum and its duration is pending until further notice by the
loan counterparties who have the right to terminate the loan
with a  day notice. The loan is included in long-term interest-
bearing liabilities in the consolidated statement of fi nancial
position.
There were no loans granted to the members of the Nokia
Leadership Team and the Board of Directors at December ,
,  or .
EURm 2013 2012 2011
Transactions with associated companies
Share of results of
associated companies 4 – 1 – 23
Dividend income 5 — —
Share of shareholders’ equity
of associated companies 53 46 47
Sales to associated companies 6 12 37
Purchases from
associated companies 178 150 91
Receivables from
associated companies — 1 —
Liabilities to associated companies 12 32 14
At December , , the Group has guaranteed a loan of
EUR  million (EUR  million in ) for an associated com-
pany of the Group.
Management compensation
Nokia announced on September ,  that it had entered
into a transaction agreement whereby Nokia will sell substan-
tially all of its Devices & Services business to Microsoft. As a
result of the proposed transaction, Nokia announced changes
to its leadership. These changes were designed to provide
an appropriate corporate governance structure during the
interim period following the announcement of this transaction.
Stephen Elop stepped down from his positions as President
and CEO and Nokia’s Chairman of the Board Risto Siilasmaa and
Chief Financial Offi cer of Nokia Timo Ihamuotila assumed ad-
ditional responsibilities as Interim CEO and Interim President,
respectively, from September , .
The following table sets forth the salary and cash incentive
information awarded and paid or payable by the Group to the
Chief Executive Offi cer and President of Nokia Corporation for
fi scal years  – , share-based compensation expense
relating to equity-based awards, expensed by the Group as
well as the pension expenses, expensed by the Group. The ta-
ble includes compensation for the time in-role or the compen-
sation for the role related responsibilities, only.