Nokia 2014 Annual Report Download - page 145

143
Financial statements
NOKIA IN 2014
Results of Discontinued operations
EURm 2014 2013 2012
Net sales 2 458 10 735 15 152
Cost of sales (2 086) (8 526) (12 320)
Gross prot 372 2 209 2 832
Research and development expenses (354) (1 130) (1 658)
Selling, general and administrative expenses (447) (1 560) (2 143)
Gain on the Sale of the D&S Business 3 175 – –
Other income and expenses (107) (109) (510)
Operating prot/(loss) 2 639 (590) (1 479)
Financial income and expenses(1) (207) 10 18
Income tax expense(2) (127) (200) (842)
Prot/(loss) for the period 2 305 (780) (2 303)
Costs and expenses include:
Depreciation and amortization –168 238
Impairment charges 111 –39
(1) In 2014, includes foreign exchange dierences of EUR 212 million reclassied from other comprehensive income to the consolidated income statement due to the disposal.
(2) In 2014, the expense primarily includes non-resident capital gains taxes in certain jurisdictions, as well as tax impacts of legal entity restructuring carried out in connection with the Sale of the
D&S Business.
Cash ows from Discontinued operations
EURm 2014 2013 2012
Net cash used in operating activities (1 054) (1 062) (2 252)
Net cash from/(used in) investing activities 2 480 (130) (68)
Net cash used in nancing activities (9) (21) –
Net cash ow for the year 1 417 (1 213) (2 320)
On April 25, 2014 upon completion of the Sale of the D&S Business, EUR 500 million 1.125% convertible bonds due September 2018, EUR 500
million 2.5% convertible bonds due September 2019 and EUR 500 million 3.625% convertible bonds due September 2020, all issued by the
Group to Microsoft, were repaid and netted against the deal proceeds by the amount of principal and accrued interest. Refer to Note 35,
Risk management.
4. Acquisitions
Acquisitions in 2014
In 2014, the Group acquired four businesses. The combined purchase consideration amounts to EUR 175 million. The combined goodwill arising
on acquisition amounts to EUR 76 million and is attributable to assembled workforce and post-acquisition synergies. The Group expects that
the majority of goodwill will not be deductible for tax purposes.
Acquisitions during the year are:
Company/business Description
SAC Wireless(1) SAC Wireless is a company providing infrastructure and network deployment solutions. The Group acquired 100%
ownership interest on August 22, 2014.
Medio Systems Inc. Medio Systems Inc. is a company specializing in real-time predictive analytics. The Group acquired 100% ownership
interest on July 2, 2014.
Desti(2) Desti specializes in articial intelligence and natural language processing technology. The Group acquired the
business on May 28, 2014.
Mesaplexx Pty Ltd. Mesaplexx Pty Ltd. has know-how in developing compact, high-performance radio frequency lter technology.
The Group acquired 100% ownership interest on March 24, 2014.
(1) Legal entities acquired are SAC Wireless LLC and HCP Wireless LLC.
(2) Asset deal.