Nokia 2013 Annual Report Download - page 83

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81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
closing, the agreed transaction price of EUR . billion was
increased by approximately EUR  million as a result of the
estimated adjustments made for net working capital and cash
earnings. However this adjustment is based on an estimate
which will be fi nalized when the fi nal cash earnings and net
working capital numbers are expected to be available during
the second quarter .
Nokia expects to book a gain on sale of approximately EUR
. billion from the transaction. As a result of the gain, Nokia
expects to record tax expenses of approximately EUR 
million.
Additionally, as is customary for transactions of this size,
scale and complexity, Nokia and Microsoft made certain
adjustments to the scope of the assets originally planned to
transfer. These adjustments have no impact on the mate-
rial deal terms of the transaction and Nokia will be materially
compensated for any retained liabilities.
In India, our manufacturing facility remains part of Nokia
following the closing of the transaction. Nokia and Microsoft
have entered into a service agreement whereby Nokia would
produce mobile devices for Microsoft for a limited time. In
Korea, Nokia and Microsoft agreed to exclude the Masan
facility from the scope of the transaction and Nokia is taking
steps to close the facility, which employs approximately 
people. Altogether, and accounting for these adjustments,
approximately   employees transferred to Microsoft at
the closing.
The EUR . billion convertible bonds issued by Nokia to
Microsoft following the announcement of the transaction have
been redeemed and netted against the deal proceeds by the
amount of principal and accrued interest.