Nokia 2013 Annual Report Download - page 79

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77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Netamountsof
fi nancial
assets
Gross Grossamountsof (liabilities)
amountsof fi nancialliabilities presented in Financial Cash
fi nancial (assets) set off in the statement instruments collateral
assets the statement of of fi nancial assets received Net
EURm (liabilities) fi nancial position position (liabilities) (pledged) amount
At December31, 2013
Derivative assets 191 — 191 34 66 91
Derivative liabilities – 35 — – 35 – 34 — – 1
Total 156 — 156 — 66 90
At December31, 2012
Derivative assets 448 — 448 87 123 238
Derivative liabilities – 90 — – 90 – 87 – 1 – 2
Total 358 — 358 — 122 236
Related amounts not
set off in the statement
of fi nancial position
The fi nancial instruments subject to enforceable master
netting agreements and similar arrangements are not set off
in the consolidated statement of fi nancial positions in cases
where there is no intention to settle net or realize the asset
and settle the liability simultaneously.
C) LIQUIDITY RISK
Liquidity risk is defi ned as fi nancial distress or extraordinarily
high fi nancing costs arising due to a shortage of liquid funds
in a situation where outstanding debt needs to be refi nanced
or where business conditions unexpectedly deteriorate and
require fi nancing. Transactional liquidity risk is defi ned as
the risk of executing a fi nancial transaction below fair market
value, or not being able to execute the transaction at all, within
a specifi c period of time.
The objective of liquidity risk management is to maintain
suffi cient liquidity, and to ensure that it is available fast
enough without endangering its value, in order to avoid uncer-
tainty related to fi nancial distress at all times.
Nokia aims to secure suffi cient liquidity at all times by ef-
fi cient cash management and by investing in short-term liquid
interest bearing securities. Depending on overall liquidity
position Nokia aims to pre- or refi nance upcoming debt ma-
turities before contractual maturity dates. The transactional
liquidity risk is minimized by entering into transactions where
proper two-way quotes can be obtained from the market.
Due to the dynamic nature of the underlying business, Nokia
and NSN aim at maintaining fl exibility in funding by keeping
committed and uncommitted credit lines available. Nokia and
NSN manage their respective credit facilities independently
and facilities do not include cross-default clauses between
Nokia and NSN or any forms of guarantees from either party.
As of December , , the Group’s committed revolving
credit facilities totaled EUR  million (EUR  million in
).
The most signifi cant existing long-term funding programs as of December ,  were:
Issuer(s) Program Issued
Nokia Corporation Shelf registration statement on fi le with the US Securities
and Exchange Commission USD 1500 million
Nokia Corporation Euro Medium-Term Note Program, totaling EUR 5 000 million EUR 1 750 million
The most signifi cant existing short-term funding programs as of December,  were:
Issuer(s) Program Issued
Nokia Corporation Local commercial paper program in Finland, totaling EUR 750 million —
Nokia Corporation US Commercial Paper program, totaling USD 4 000 million —
Nokia Corporation and
Nokia Finance International B.V. Euro Commercial Paper program, totaling USD 4 000 million —
Nokia Solutions and
Networks Finance B.V. Local commercial paper program in Finland, totaling EUR 500 million EUR 25 million