6. Disposals treated as Discontinued operations
Results of Discontinued operations(1)
|
EURm |
|
2017 |
|
2016 |
|
2015 |
|
Net sales |
|
– |
|
– |
|
1 075 |
|
Cost of sales |
|
– |
|
– |
|
(244) |
|
Gross profit |
|
– |
|
– |
|
831 |
|
Research and development expenses |
|
– |
|
– |
|
(498) |
|
Selling, general and administrative expenses |
|
(7) |
|
(11) |
|
(213) |
|
Other income and expenses |
|
(15) |
|
(4) |
|
(23) |
|
Operating (loss)/profit |
|
(22) |
|
(15) |
|
97 |
|
Financial income and expenses |
|
6 |
|
14 |
|
(9) |
|
(Loss)/profit before tax |
|
(16) |
|
(1) |
|
88 |
|
Income tax (expense)/benefit |
|
(10) |
|
(28) |
|
8 |
|
(Loss)/profit for the year, ordinary activities |
|
(26) |
|
(29) |
|
96 |
|
Gain on the sale, net of tax(2) |
|
5 |
|
14 |
|
1 178 |
|
(Loss)/profit for the year |
|
(21) |
|
(15) |
|
1 274 |
|
(2) |
In 2017, an additional gain on the sale of EUR 5 million was recognized related to the HERE business due to a tax indemnification. In 2016, an additional gain on the sale of EUR 7 million was recognized related to the HERE business as a result of the final settlement of the purchase price, and EUR 7 million related to the D&S business due to a tax indemnification. |
Cash flows from Discontinued operations(1)
|
EURm |
|
2017 |
|
2016 |
|
2015 |
|
Net cash (used in)/from operating activities |
|
(14) |
|
(10) |
|
6 |
|
Net cash (used in)/from investing activities |
|
(16) |
|
3 |
|
2 553 |
|
Net cash flow for the period |
|
(30) |
|
(7) |
|
2 559 |
(1)Cash flows from Discontinued operations include the cash flows from the HERE business and the D&S business, the disposals of which were completed on December 4, 2015 and April 25, 2014, respectively.
Sale of the HERE Business
On August 3, 2015 the Group announced the Sale of the HERE Business to a consortium of leading automotive companies, comprising AUDI AG, BMW Group and Daimler AG. Subsequent to the announcement, the Group has presented the HERE business as Discontinued operations. The HERE business was previously an operating and reportable segment and its business focused on the development of location intelligence, location-based services and local commerce. The Sale of the HERE Business was completed on December 4, 2015.
Gain on the Sale of the HERE Business
|
|
|
EURm |
|
Fair value of sales proceeds less costs to sell(1) |
|
2 551 |
|
Net assets disposed of |
|
(2 667) |
|
Total |
|
(116) |
|
Foreign exchange differences reclassified from other comprehensive income(2) |
|
1 174 |
|
Gain before tax |
|
1 058 |
|
Income tax benefit(3) |
|
120 |
|
Total gain |
|
1 178 |
|
(1) |
Comprises purchase price of EUR 2 800 million, offset by adjustments for certain defined liabilities of EUR 249 million. |
|
(2) |
Includes cumulative translation differences for the duration of ownership from translation of mainly U.S. dollar denominated balances into euro. |
|
(3) |
The disposal was largely tax exempt, the tax benefit is due to hedging-related tax deductible losses. |
Assets and liabilities, HERE business
Assets and liabilities disposed of as of December 4, 2015:
|
EURm |
|
December 4, 2015 |
|
Goodwill and other intangible assets |
|
2 722 |
|
Property, plant and equipment |
|
115 |
|
Deferred tax assets and non-current assets |
|
151 |
|
Inventories |
|
14 |
|
Trade and other receivables |
|
174 |
|
Prepaid expenses and other current assets |
|
87 |
|
Cash and cash equivalents and current available-for-sale investments, liquid assets |
|
56 |
|
Total assets |
|
3 319 |
|
Deferred tax liabilities and other liabilities |
|
286 |
|
Trade and other payables |
|
55 |
|
Deferred income and accrued expenses |
|
306 |
|
Provisions |
|
5 |
|
Total liabilities |
|
652 |
|
Net assets disposed of |
|
2 667 |