Nokia 2014 Annual Report Download - page 174

172 NOKIA IN 2014
Current liabilities
EURm 2014 2013
Continuing operations
Advance payments(1) 869 572
Deferred revenue(1) 960 604
Salaries and wages 807 710
Social security, VAT and other indirect taxes 282 312
Expenses related to customer projects 202 234
Other 512 601
Total 3 632 3 033
(1) Advance payments and deferred revenue are presented separately in 2014 and have been separated in 2013 to conform with the current year presentation. EUR 13 million has been reclassied from
other to deferred revenue in the 2013 comparative.
Other accruals include accrued discounts, royalties, research and development expenses, marketing expenses and interest expenses, as well as
various amounts which are individually insignicant.
30. Commitments and contingencies
EURm 2014 2013
Collateral for own commitments
Assets pledged 10 38
Contingent liabilities on behalf of Group companies
Other guarantees(1) 673 743
Contingent liabilities on behalf of associated companies
Financial guarantees on behalf of associated companies 13 16
Contingent liabilities on behalf of other companies
Financial guarantees on behalf of third parties(2) 612
Other guarantees(1) 165 102
Financing commitments
Customer nance commitments(2) 155 25
Venture fund commitments 274 215
(1) Certain rental guarantees are excluded from other guarantees in 2014 and excluded from other guarantees in 2013 for comparability purposes.
(2) Refer to Note 35, Risk management.
The amounts represent the maximum principal amount for commitments and contingencies.
Other guarantees on behalf of Group companies include commercial guarantees of EUR 465 million (EUR 463 million in 2013) provided to
certain Nokia Networks’ customers in the form of bank guarantees or corporate guarantees. These instruments entitle the customer to claim
compensation from the Group for the non-performance of its obligations under network infrastructure supply agreements. Depending on the
nature of the guarantee, compensation is either payable on demand or subject to verication of non-performance.
Contingent liabilities on behalf of other companies are EUR 165 million (EUR 102 million in 2013). The increase 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
commercial guarantees remain to be re-assigned legally.
Customer nancing commitments of EUR 155 million (EUR 25 million in 2013) are available under loan facilities negotiated mainly with Nokia
Networks’ customers. Availability of the facility is dependent on the borrower’s continuing compliance with the agreed 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 274 million (EUR 215 million in 2013) are nancing commitments to a number of funds making
technology-related investments. As a limited partner in these funds, the Group is committed to capital contributions and entitled to cash
distributions according to the respective partnership agreements and underlying fund activities.
Notes to consolidated nancial statements continued