Nokia 2014 Annual Report Download - page 156

154 NOKIA IN 2014
14. Deferred taxes
EURm 2014 2013
Continuing operations
Deferred tax assets:
Tax losses carried forward and unused tax credits(1) 967 446
Pensions(2) 332 211
Provisions(3) 246 126
Depreciation dierences(1) (2) 1 386 451
Intercompany prot in inventory 87 48
Other temporary dierences(2) 156 100
Reclassication due to netting of deferred tax assets and liabilities (454) (492)
Total deferred tax assets 2 720 890
Deferred tax liabilities:
Pensions(2) (177) (180)
Depreciation dierences(2) (266) (433)
Undistributed earnings (18) (68)
Other temporary dierences(2) (25) (6)
Reclassication due to netting of deferred tax assets and liabilities 454 492
Total deferred tax liabilities (32) (195)
Net balance 2 688 695
(1) The increase from 2013 is primarily due to the recognition of deferred tax assets, partially oset by the subsequent utilization of tax losses carried forward in Finland.
(2) Pension-related deferred tax has been reclassied from depreciation dierences and other temporary dierences to pensions and reclassied for comparability purposes in 2013.
(3) Warranty provision and other provisions have been combined and shown as provisions and reclassied for comparability purposes in 2013.
The Group has tax loss carry forwards of EUR 3 213 million (EUR 6 295 million in 2013) of which EUR 2 215 million (EUR 5 117 million in 2013)
will expire within 10 years.
The Group has tax loss carry forwards, temporary dierences and tax credits of EUR 2 386 million (EUR 10 693 million in 2013) for which no
deferred tax asset was recognized due to the uncertainty of utilization of which EUR 792 million (EUR 4 882 million in 2013) will expire within
10 years. In 2014, the Group re-recognized a deferred tax asset of EUR 2 126 million in the consolidated statement of nancial position based
on recent protability and the latest forecasts of future nancial performance which enabled the Group to re-establish a pattern of sucient
tax protability in Finland and Germany to utilize the cumulative losses, foreign tax credits and other temporary dierences. In 2014, the
historical results of HERE’s Dutch operations changed from a cumulative prot position to a cumulative loss position. Based on this and revised
expectations of future taxable prots,the Group has considered its previously recognized HERE Dutch deferred tax assets as non-recoverable
and the assets were de-recognized accordingly. Refer to Note 13, Income tax.
The recognition of the remaining deferred tax assets is supported by osetting deferred tax liabilities, earnings history and prot projections
in the relevant jurisdictions.
The Group has undistributed earnings of EUR 732 million (EUR 614 million in 2013) for which no deferred tax liability has been recognized as
these earnings will not be distributed in the foreseeable future.
Notes to consolidated nancial statements continued