Nokia 2014 Annual Report Download - page 144

142 NOKIA IN 2014
3. Disposals treated as discontinued operations
Sale of the D&S Business
In September 2013, the Group announced the Sale of the D&S Business to Microsoft. Subsequent to the approval of the sale in the
Extraordinary General Meeting in November 2013, the Group has presented the Devices & Services business as Discontinued operations
including items outside the nal transaction scope; specically, discontinued manufacturing facilities located in Chennai, India and Masan,
Republic of Korea. The Devices & Services business consisted of two previously reportable segments, Smart Devices and Mobile Phones as
wellas Devices & Services Other. Smart Devices focused on more advanced products, including smart phones powered by the Windows Phone
system. Mobile Phones focused on the area of mass market entry, feature phones and aordable smart phones. Devices & Services Other
included spare parts, the divested Vertu business and major restructuring programs related to the Devices & Services business.
The Sale of the D&S Business was completed on April 25, 2014. The total purchase price is EUR 5 440 million comprising the Sale of the D&S
Business and a 10-year non-exclusive license to patents and patent applications with an option to extend the mutual patent agreement into
perpetuity. The value allocated to the Sale of the D&S Business is EUR 3 790 million and the fair value of the mutual patent agreement and the
future option is EUR 1 650 million. The gain on disposal is EUR 3 175 million. The gain may change in subsequent periods depending on the
development of certain liabilities for which the Group has indemnied Microsoft.
Gain on the Sale of the D&S Business
EURm
Fair value of sales proceeds less costs to sell(1) 5 167
Net assets disposed (2 347)
Settlement of Windows Phone royalty(2) 383
Other (28)
Total 3 175
(1) Comprises purchase price of EUR 3 790 million, net cash adjustment of EUR 1 114 and other adjustments of EUR 263 million.
(2) Recognized when the partnership with Microsoft to license the Windows Phone smartphone platform was terminated in conjunction with the Sale of the D&S Business.
Assets and liabilities
The table below presents the assets and liabilities disposed of at April 25, 2014 and the assets and liabilities of disposal groups classied as held
for sale at December 31, 2013.
EURm April 25, 2014 December 31, 2013
Goodwill and other intangible assets 1 427 1 426
Property, plant and equipment 534 559
Deferred tax assets and non-current assets 371 381
Inventories 374 347
Trade and other receivables 541 691
Prepaid expenses and other current assets 1 638 1 854
Bank and cash and current available-for-sale investments 1 114 –
Total assets 5 999 5 258
Deferred tax liabilities and other liabilities 203 114
Trade and other payables 1 340 1 381
Deferred income and accrued expenses 1 205 2 220
Provisions 795 1 013
Total liabilities 3 543 4 728
Non-controlling interests 109 –
Net assets disposed of (2 347) –
Notes to consolidated nancial statements continued