Nokia 2015 Annual Report Download - page 204

202 NOKIA IN 2015
24. Commitments and contingencies
EURm 2015 2014
Contingent liabilities on behalf of Group companies
Financial guarantees 7 –
Leasing guarantees 68 79
Other guarantees 404 16
Contingent liabilities on behalf of associated companies
Financial guarantees on behalf of associated companies 15 13
Contingent liabilities on behalf of other companies
Financial guarantees on behalf of third parties 6 6
Other guarantees 133 17
Certain India related accounts receivable are under payment restrictions due to on-going tax proceedings.
25. Leasing contracts
At December 31, 2015 lease obligations amounted to EUR 0.4 million (EUR 5 million in 2014).
26. Loans granted to the management of the company
There were no loans granted to the members of the Group Leadership Team and Board of Directors at December 31, 2015.
27. Notes to the statement of cash ows
EURm 2015 2014
Adjustments for
Depreciation and amortization 7 8
Prot on disposal of property, plant and equipment and available-for-sale investments (7) (14)
Income tax expense/(benet) 91 (58)
Financial income and expenses 340 (1 850)
Impairment charges 24 3 812
Gain on sale of shares and businesses (718) (8 483)
Asset retirements 4 1
Share-based payment 8 26
Other income and expenses, net (96) 1 495
Total (347) (5 063)
Change in net working capital
Increase in accounts receivable (417) (129)
Decrease in inventories –2
(Decrease)/increase in interest-free short-term liabilities (402) 959
Total (819) 832
In 2015, the Company exercised its option to redeem EUR 750 million convertible bonds at their principal amount outstanding plus accrued
interest. The redemption led to materially all convertible bonds being converted to Nokia shares, resulting in no cash impact. In 2014, the
convertible bonds issued to Microsoft in 2013 have been netted against the proceeds from the Sale of the D&S Business.
28. Principal Group companies
Refer to Note 33, Principal Group companies of the consolidated nancial statements.
Full list of Group companies is included in the Financial statements led with the Registrar of Companies.
29. Shares of the Parent Company
Refer to Note 24, Shares of the Parent Company in the consolidated nancial statements.
30. Risk management
The Group has a systematic and structured approach to risk management across business operations and processes. Risk management policies
and procedures are Group-wide, there are no separate or individual risk management policies or procedures for the Parent Company. Hence,
internal and external risk exposures and transactions are managed only in the context of the Group risk management strategy. Refer to Note 35,
Risk management in the consolidated nancial statements.
31. Subsequent events
Refer to Note 36, Subsequent events in the consolidated nancial statements.
Notes to Parent Company nancial statements continued