Nokia 2015 Annual Report Download - page 172

170 NOKIA IN 2015
Notes to consolidated nancial statements continued
29. Accrued expenses, deferred revenue and other liabilities
Non-current liabilities
EURm 2015 2014
Advance payments and deferred revenue(1)(2) 1 235 1 632
Other(2) 19 35
Total 1 254 1 667
(1) Includes a prepayment of EUR 1 235 million (EUR 1 390 million in 2014) relating to a ten-year mutual patent license agreement with Microsoft. Refer to Note 3, Disposals treated as Discontinued
operations.
(2) In 2014, EUR 59 million has been reclassied from other to advance payments and deferred revenue to conform to current year presentation.
Current liabilities
EURm 2015 2014
Deferred revenue(1) 1 286 1 093
Salaries and wages 741 807
Advance payments(1) 571 736
Social security, VAT and other indirect taxes 314 282
Expenses related to customer projects 184 202
Other 299 512
Total 3 395 3 632
(1) In 2014, EUR 133 million has been reclassied from advance payments to deferred revenue to conform to current year presentation.
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 2015 2014
Collateral for own commitments
Assets pledged 7 10
Contingent liabilities on behalf of Group companies
Other guarantees 601 673
Contingent liabilities on behalf of associated companies and joint ventures
Financial guarantees on behalf of associated companies and joint ventures 15 13
Contingent liabilities on behalf of other companies
Financial guarantees on behalf of third parties(1) 6 6
Other guarantees 137 165
Financing commitments
Customer nance commitments(1) 180 155
Venture fund commitments 230 274
(1) 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 400 million (EUR 465 million in 2014) 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. Total value of other
guarantees has decreased mainly due to expired guarantees.
Contingent liabilities on behalf of other companies, Other guarantees, are EUR 137 million (EUR 165 million in 2014). The balance mainly relates
to the guarantees transferred 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 180 million (EUR 155 million in 2014) are available under loan facilities negotiated mainly with
NokiaNetworks’ customers. Availability of the facility is dependent upon 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 230 million (EUR 274 million in 2014) 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.