Nokia 2014 Annual Report Download - page 142

140 NOKIA IN 2014
2. Segment information
The Group has four operating and reportable segments for nancial reporting purposes: Mobile Broadband and Global Services within Nokia
Networks, HERE and Nokia Technologies. The Devices & Services business, which is presented as Discontinued operations, formed an operating
and reportable segment until April 25, 2014 when its sale was completed.
The Group adopted its current operational and reporting structure in 2013. On August 7, 2013 the Group announced that it had completed
the acquisition of Siemens’ stake in Nokia Networks. Until then, Nokia Networks was reported as a single operating and reportable segment.
Following the completion of the transaction, Nokia Networks business has two operating and reportable segments, Mobile Broadband and
Global Services. On September 2, 2013 the Group signed an agreement for the Sale of the D&S Business to Microsoft. After receiving
shareholder conrmation and approval for the transaction at the Extraordinary General Meeting in November 2013, the Group has presented
substantially all of its former Devices & Services business as Discontinued operations and Nokia Technologies, previously a part of the
Devices & Services business, as an operating and reportable segment. Refer to Note 3, Disposals treated as discontinued operations.
The chief operating decision maker receives monthly nancial information for the Group’s reportable segments. Key nancial performance
measures of the reportable segments include primarily net sales and operating prot. The chief operating decision maker evaluates the
performance of the segments and allocates resources to them based on operating prot. Operating prot for Mobile Broadband, Global
Services, HERE and Nokia Technologies consists of net sales, cost of sales and operating expenses. The operating prot of Mobile Broadband
and Global Services excludes restructuring and associated charges, purchase price accounting-related charges and certain other items not
directly related to these segments. This represents one of the Group’s non-IFRS measures.
Mobile Broadband provides mobile operators with exible network solutions for mobile voice and data services through its Radio and Core
business lines. The Radio business consists of 2G to 5G technology generations. The Core business has a comprehensive mobile switching
portfolio as well as voice and packet core solutions.
Global Services provides mobile operators with services to create and maintain eective networks. The services include network
implementation, care, managed services, network planning and optimization as well as systems integration.
Nokia Networks Other includes net sales and related cost of sales and operating expenses of non-core businesses, IPR net sales and related
costs, as well as the Optical Nokia Networks business until May 6, 2013, when its divestment was completed. It also includes restructuring and
associated charges for the Nokia Networks business.
HERE focuses on the development of location intelligence, location-based services and local commerce. The HERE brand was introduced for the
location and mapping service in 2012 and on January 1, 2013 the Group’s former Location & Commerce business and reportable segment was
renamed HERE.
Nokia Technologies focuses on advanced technology development and licensing and includes net sales from both intellectual property right
activities and technology licensing.
Group Common Functions consists of company-wide support functions.
The Devices & Services business focused on developing and selling smartphones powered by the Windows Phone system, feature phones and
aordable smartphones.
Accounting policies of the segments are the same as those described in Note 1, Accounting principles. The Group accounts for inter-segment
revenues and transfers as if the revenues were to third parties, that is, at current market prices.
No single customer represents 10% or more of Group revenues.
Notes to consolidated nancial statements continued