Document and Entity Information
Document and Entity Information | 12 Months Ended | |
Dec. 31, 2021shares | ||
Statement Line Items [Line Items] | ||
Entity Central Index Key | 0001096691 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Document Type | 20-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity File Number | 1-14968 | |
Entity Registrant Name | PARTNER COMMUNICATIONS CO LTD | |
Entity Incorporation, State or Country Code | IL | |
Entity Address, Address Line One | 8 AMAL STREET | |
Entity Address, Address Line Two | AFEK INDUSTRIAL PARK | |
Entity Address, City or Town | ROSH-HA’AYIN | |
Entity Address, Postal Zip Code | 48103 | |
Entity Address Country | IL | |
Trading Symbol | PTNR | |
Security 12g Title | NONE | |
Entity Common Stock, Shares Outstanding | 183,678,220 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Auditor Attestation Flag | true | |
Document Accounting Standard | International Financial Reporting Standards | |
Entity Shell Company | false | |
Auditor Name | Kesselman & Kesselman | |
Auditor Location | Tel-Aviv, Israel | |
Auditor Firm Id | 1309 | |
American Depositary Shares [Member] | ||
Statement Line Items [Line Items] | ||
Title of 12(b) Security | American Depositary Shares, each representingone ordinary share, nominal value NIS 0.01 per share | |
Name of Exchange on which Security is Registered | NASDAQ | |
Ordinary Shares [Member] | ||
Statement Line Items [Line Items] | ||
Title of 12(b) Security | Ordinary Shares, nominal value NIS 0.01 per share | [1] |
Name of Exchange on which Security is Registered | NASDAQ | |
Business Contact [Member] | ||
Statement Line Items [Line Items] | ||
Contact Personnel Name | Sarit Hecht, Adv. | |
Contact Personnel Email Address | ExecutiveOffices@partner.co.il | |
Entity Address, Address Line One | 8 Amal Street | |
Entity Address, Address Line Two | Afek Industrial Park | |
Entity Address, City or Town | Rosh-Ha’ayin | |
Entity Address, Postal Zip Code | 48103 | |
Entity Address Country | IL | |
City Area Code | 972 | |
Local Phone Number | 54-7813888 | |
[1] | Not for trading, but only in connection with the registration of American Depositary Shares representing such ordinary shares, pursuant to the requirements of the Securities and Exchange Commission. |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ₪ in Millions, $ in Millions | Dec. 31, 2021ILS (₪) | Dec. 31, 2021USD ($) | Dec. 31, 2020ILS (₪) | |
CURRENT ASSETS | ||||
Cash and cash equivalents | ₪ 308 | ₪ 376 | ||
Short-term deposits | 344 | 411 | ||
Trade receivables | 571 | 560 | ||
Other receivables and prepaid expenses | 152 | 46 | ||
Deferred expenses - right of use | 27 | 26 | ||
Inventories | 87 | 77 | ||
CURRENT ASSETS, TOTAL | 1,489 | 1,496 | ||
NON CURRENT ASSETS | ||||
Long-term deposits | 280 | 155 | ||
Trade receivables | 245 | 232 | ||
Deferred expenses - right of use | 142 | 118 | ||
Lease - right of use | 679 | 663 | ||
Property and equipment | 1,644 | 1,495 | ||
Intangible and other assets | 472 | 521 | ||
Goodwill | 407 | 407 | ||
Deferred income tax asset | 34 | 29 | ||
Other non-current receivables | 1 | 9 | ||
NON CURRENT ASSETS, TOTAL | 3,904 | 3,629 | ||
TOTAL ASSETS | 5,393 | 5,125 | ||
CURRENT LIABILITIES | ||||
Current maturities of notes payable and borrowings | 268 | 290 | ||
Trade payables | 705 | 666 | ||
Other payables and provisions | 185 | 127 | ||
Current maturities of lease liabilities | 125 | 120 | ||
Deferred revenues and other | 139 | 131 | ||
CURRENT LIABILITIES, TOTAL | 1,422 | 1,334 | ||
NON CURRENT LIABILITIES | ||||
Notes payable | 1,224 | 1,219 | ||
Borrowings from banks | 184 | 86 | ||
Financial liability at fair value | 4 | |||
Liability for employee rights upon retirement, net | 35 | 42 | ||
Lease liabilities | 595 | 582 | ||
Deferred revenues from HOT mobile | 39 | 71 | ||
Non-current liabilities and provisions | 35 | 64 | ||
NON CURRENT LIABILITIES, TOTAL | 2,112 | 2,068 | ||
TOTAL LIABILITIES | 3,534 | 3,402 | ||
EQUITY | ||||
Share capital - ordinary shares of NIS 0.01 par value: authorized - December 31, 2020 and 2021 - 235,000,000 shares; issued and outstanding - December 31, 2020 - 182,826,973 shares | 2 | 2 | ||
Capital surplus | 1,279 | 1,311 | ||
Accumulated retained earnings | 742 | 606 | ||
Treasury shares, at cost - December 31, 2020 - 7,741,784 shares December 31, 2021 - 7,337,759 shares | (164) | (196) | ||
TOTAL EQUITY | 1,859 | 1,723 | ||
TOTAL LIABILITIES AND EQUITY | ₪ 5,393 | ₪ 5,125 | ||
Convenience translation into U.S. dollars [Member] | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | $ | $ 99 | |||
Short-term deposits | $ | 111 | |||
Trade receivables | $ | 184 | |||
Other receivables and prepaid expenses | $ | 49 | |||
Deferred expenses - right of use | $ | 9 | |||
Inventories | $ | 28 | |||
CURRENT ASSETS, TOTAL | $ | 480 | |||
NON CURRENT ASSETS | ||||
Long-term deposits | $ | 90 | |||
Trade receivables | $ | 79 | |||
Deferred expenses - right of use | $ | 45 | |||
Lease - right of use | $ | 218 | |||
Property and equipment | $ | 529 | |||
Intangible and other assets | $ | 152 | |||
Goodwill | $ | 131 | |||
Deferred income tax asset | $ | 11 | |||
Other non-current receivables | $ | [1] | |||
NON CURRENT ASSETS, TOTAL | $ | 1,255 | |||
TOTAL ASSETS | $ | 1,735 | |||
CURRENT LIABILITIES | ||||
Current maturities of notes payable and borrowings | $ | 86 | |||
Trade payables | $ | 227 | |||
Other payables and provisions | $ | 59 | |||
Current maturities of lease liabilities | $ | 40 | |||
Deferred revenues and other | $ | 45 | |||
CURRENT LIABILITIES, TOTAL | $ | 457 | |||
NON CURRENT LIABILITIES | ||||
Notes payable | $ | 394 | |||
Borrowings from banks | $ | 59 | |||
Liability for employee rights upon retirement, net | $ | 12 | |||
Lease liabilities | $ | 191 | |||
Deferred revenues from HOT mobile | $ | 13 | |||
Non-current liabilities and provisions | $ | 11 | |||
NON CURRENT LIABILITIES, TOTAL | $ | 680 | |||
TOTAL LIABILITIES | $ | 1,137 | |||
EQUITY | ||||
Share capital - ordinary shares of NIS 0.01 par value: authorized - December 31, 2020 and 2021 - 235,000,000 shares; issued and outstanding - December 31, 2020 - 182,826,973 shares | $ | 1 | |||
Capital surplus | $ | 411 | |||
Accumulated retained earnings | $ | 239 | |||
Treasury shares, at cost - December 31, 2020 - 7,741,784 shares December 31, 2021 - 7,337,759 shares | $ | (53) | |||
TOTAL EQUITY | $ | 598 | |||
TOTAL LIABILITIES AND EQUITY | $ | $ 1,735 | |||
[1] | Representing an amount of less than 1 million |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - ₪ / shares | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of financial position [abstract] | |||
Ordinary shares, par value | ₪ 0.01 | ₪ 0.01 | |
Ordinary shares, Authorized | 235,000,000 | 235,000,000 | |
Ordinary shares, Issued | [1] | 183,678,220 | 182,826,973 |
Ordinary shares, Outstanding | [1] | 183,678,220 | 182,826,973 |
Treasury shares | [2] | 7,337,759 | 7,741,784 |
[1] | Net of treasury shares. | ||
[2] | Including shares held by trustee under the Company's Equity Incentive Plan, see note 21(a), such shares will become outstanding upon completion of vesting conditions, see note 21(b). |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME ₪ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021ILS (₪)₪ / shares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020ILS (₪)₪ / shares | Dec. 31, 2019ILS (₪)₪ / shares | ||
Statement Line Items [Line Items] | |||||
Revenues, net | ₪ | ₪ 3,363 | ₪ 3,189 | ₪ 3,234 | ||
Cost of revenues | ₪ | 2,732 | 2,664 | 2,707 | ||
Gross profit | ₪ | 631 | 525 | 527 | ||
Selling and marketing expenses | ₪ | 323 | 291 | 301 | ||
General and administrative expenses | ₪ | 164 | 145 | 149 | ||
Credit losses | ₪ | 9 | 23 | 18 | ||
Other income, net | ₪ | 28 | 30 | 28 | ||
Operating profit | ₪ | 163 | 96 | 87 | ||
Finance income | ₪ | 4 | 8 | 7 | ||
Finance expenses | ₪ | 68 | 77 | 75 | ||
Finance costs, net | ₪ | 64 | 69 | 68 | ||
Profit before income tax | ₪ | 99 | 27 | 19 | ||
Income tax income (expense) | ₪ | 16 | (10) | [1] | ||
Profit for the year | ₪ | ₪ 115 | ₪ 17 | ₪ 19 | ||
Earnings per share | |||||
Basic | ₪ / shares | ₪ 0.63 | ₪ 0.09 | ₪ 0.12 | ||
Diluted | ₪ / shares | ₪ 0.62 | ₪ 0.09 | ₪ 0.12 | ||
Convenience translation into U.S. dollars [Member] | |||||
Statement Line Items [Line Items] | |||||
Revenues, net | $ | $ 1,081 | ||||
Cost of revenues | $ | 878 | ||||
Gross profit | $ | 203 | ||||
Selling and marketing expenses | $ | 104 | ||||
General and administrative expenses | $ | 52 | ||||
Credit losses | $ | 3 | ||||
Other income, net | $ | 9 | ||||
Operating profit | $ | 53 | ||||
Finance income | $ | 1 | ||||
Finance expenses | $ | 22 | ||||
Finance costs, net | $ | 21 | ||||
Profit before income tax | $ | 32 | ||||
Income tax income (expense) | $ | 5 | ||||
Profit for the year | $ | $ 37 | ||||
Earnings per share | |||||
Basic | $ / shares | $ 0.20 | ||||
Diluted | $ / shares | $ 0.20 | ||||
[1] | Representing an amount of less than 1 million. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ₪ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021ILS (₪) | Dec. 31, 2021USD ($) | Dec. 31, 2020ILS (₪) | Dec. 31, 2019ILS (₪) | |||
Statement Line Items [Line Items] | ||||||
Profit for the year | ₪ | ₪ 115 | ₪ 17 | ₪ 19 | |||
Other comprehensive income, items that will not be reclassified to profit or loss | ||||||
Remeasurements of post-employment benefit obligations | ₪ | 8 | 1 | (2) | |||
Income taxes relating to remeasurements of post-employment benefit obligations | ₪ | (2) | [1] | [1] | |||
Other comprehensive income (loss) for the year, net of income taxes | ₪ | 6 | 1 | (2) | |||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | ₪ | ₪ 121 | ₪ 18 | ₪ 17 | |||
Convenience translation into U.S. dollars [Member] | ||||||
Statement Line Items [Line Items] | ||||||
Profit for the year | $ | $ 37 | |||||
Other comprehensive income, items that will not be reclassified to profit or loss | ||||||
Remeasurements of post-employment benefit obligations | $ | 3 | |||||
Income taxes relating to remeasurements of post-employment benefit obligations | $ | (1) | |||||
Other comprehensive income (loss) for the year, net of income taxes | $ | 2 | |||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | $ | $ 39 | |||||
[1] | Representing an amount of less than 1 million. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ₪ in Millions, $ in Millions | Share Capital [Member]ILS (₪)shares | Share Capital [Member]Convenience translation into U.S. dollars [Member]USD ($)shares | Capital surplus [Member]ILS (₪) | Capital surplus [Member]Convenience translation into U.S. dollars [Member]USD ($) | Accumulated earnings [Member]ILS (₪) | Accumulated earnings [Member]Convenience translation into U.S. dollars [Member]USD ($) | Treasury shares [Member]ILS (₪) | Treasury shares [Member]Convenience translation into U.S. dollars [Member]USD ($) | ILS (₪)shares | Convenience translation into U.S. dollars [Member]USD ($) | |||
BALANCE at Dec. 31, 2018 | ₪ 2 | ₪ 1,102 | ₪ 542 | ₪ (261) | ₪ 1,385 | ||||||||
BALANCE, shares at Dec. 31, 2018 | shares | [1] | 162,628,397 | |||||||||||
CHANGES DURING THE YEAR ENDED | |||||||||||||
Profit for the year | 19 | 19 | |||||||||||
Other comprehensive loss for the year, net of income taxes | (2) | (2) | |||||||||||
Total comprehensive income for the year | 17 | 17 | |||||||||||
Exercise of options and vesting of restricted shares granted to employees | (23) | 23 | |||||||||||
Exercise of options and vesting of restricted shares granted to employees, shares | shares | [1] | 287,593 | |||||||||||
Employee share-based compensation expenses | 17 | 17 | |||||||||||
Transactions with non-controlling interests | (2) | (2) | |||||||||||
BALANCE at Dec. 31, 2019 | ₪ 2 | 1,077 | 576 | (238) | 1,417 | ||||||||
BALANCE, Shares at Dec. 31, 2019 | shares | [1] | 162,915,990 | |||||||||||
CHANGES DURING THE YEAR ENDED | |||||||||||||
Profit for the year | 17 | 17 | |||||||||||
Other comprehensive loss for the year, net of income taxes | 1 | 1 | |||||||||||
Total comprehensive income for the year | 18 | 18 | |||||||||||
Issuance of shares to shareholders | [2] | 276 | [3] | 276 | |||||||||
Issuance of shares to shareholders, shares | shares | [1] | 19,330,183 | |||||||||||
Exercise of options and vesting of restricted shares granted to employees | (42) | 42 | |||||||||||
Exercise of options and vesting of restricted shares granted to employees, shares | shares | [1] | 580,800 | |||||||||||
Employee share-based compensation expenses | 12 | 12 | |||||||||||
BALANCE at Dec. 31, 2020 | ₪ 2 | $ 1 | 1,311 | $ 421 | 606 | $ 195 | (196) | $ (63) | ₪ 1,723 | $ 554 | |||
BALANCE, Shares at Dec. 31, 2020 | shares | [1] | 182,826,973 | 182,826,973 | 182,826,973 | |||||||||
CHANGES DURING THE YEAR ENDED | |||||||||||||
Profit for the year | 115 | 37 | ₪ 115 | 37 | |||||||||
Other comprehensive loss for the year, net of income taxes | 6 | 2 | 6 | 2 | |||||||||
Total comprehensive income for the year | 121 | 39 | 121 | 39 | |||||||||
Exercise of options and vesting of restricted shares granted to employees | (32) | (10) | 32 | (10) | |||||||||
Exercise of options and vesting of restricted shares granted to employees, shares | shares | [1] | 851,247 | 851,247 | ||||||||||
Employee share-based compensation expenses | 15 | 5 | 15 | 5 | |||||||||
BALANCE at Dec. 31, 2021 | ₪ 2 | $ 1 | ₪ 1,279 | $ 411 | ₪ 742 | $ 239 | ₪ (164) | $ (53) | ₪ 1,859 | $ 598 | |||
BALANCE, Shares at Dec. 31, 2021 | shares | [1] | 183,678,220 | 183,678,220 | 183,678,220 | |||||||||
[1] | Net of treasury shares. | ||||||||||||
[2] | Representing an amount of less than 1 million. | ||||||||||||
[3] | Net of issuance costs. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ₪ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021ILS (₪) | Dec. 31, 2021USD ($) | Dec. 31, 2020ILS (₪) | Dec. 31, 2019ILS (₪) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Cash generated from operations (Appendix) | ₪ 791 | ₪ 787 | ₪ 838 | ||||
Income tax paid | (17) | (1) | (1) | ||||
Net cash provided by operating activities | 774 | 786 | 837 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisition of property and equipment | (519) | (409) | (462) | ||||
Acquisition of intangible and other assets | (153) | (164) | (167) | ||||
Acquisition of a business, net of cash acquired | (3) | ||||||
Investment in deposits, net | (58) | (14) | (552) | ||||
Interest received | 3 | 6 | 1 | ||||
Consideration received from sales of property and equipment | [1] | [1] | 2 | ||||
Net cash used in investing activities | (727) | (581) | (1,181) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Lease principal payments | (130) | (129) | (139) | ||||
Lease interest payments | (18) | (18) | (20) | ||||
Share issuance, net of issuance costs | 276 | ||||||
Proceeds from issuance of notes payable, net of issuance costs | 220 | 466 | 562 | ||||
Proceeds from issuance of option warrants exercisable for notes payables | 37 | ||||||
Interest paid | (48) | (49) | (37) | ||||
Proceeds from non-current bank borrowing received | 150 | ||||||
Repayment of borrowings | (52) | (52) | (65) | ||||
Repayment of notes payable | (237) | (620) | (109) | ||||
Settlement of contingent consideration | (2) | ||||||
Transactions with non-controlling interests | (2) | ||||||
Net cash provided by (used in) financing activities | (115) | (128) | 227 | ||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (68) | 77 | (117) | ||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 376 | 299 | 416 | ||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | 308 | 376 | 299 | ||||
Profit for the year | 115 | 17 | 19 | ||||
Adjustments for: | |||||||
Depreciation and amortization | 713 | 683 | 723 | ||||
Amortization of deferred expenses - Right of use | 31 | 31 | 28 | ||||
Employee share based compensation expenses | 15 | 12 | 17 | ||||
Liability for employee rights upon retirement, net | 2 | (1) | 1 | ||||
Finance costs, net | (4) | (2) | 5 | ||||
Lease interest payments | 18 | 18 | 20 | ||||
Interest paid | 48 | 49 | 37 | ||||
Interest received | (3) | (6) | (1) | ||||
Deferred income taxes | (7) | 12 | 4 | ||||
Income tax paid | 17 | 1 | 1 | ||||
Capital loss from property and equipment | [1] | [1] | (2) | ||||
Decrease (increase) in accounts receivable: | |||||||
Trade | (24) | 82 | 42 | ||||
Other | (70) | (6) | (1) | ||||
Increase (decrease) in accounts payable and accruals: | |||||||
Trade | 3 | (57) | 63 | ||||
Other payables and provisions | 27 | (70) | (14) | ||||
Deferred revenues and other | (24) | 24 | (27) | ||||
Increase in deferred expenses - Right of use | (56) | (47) | (51) | ||||
Decrease (increase) in inventories | (10) | 47 | (26) | ||||
Cash generated from operations: | 791 | 787 | 838 | ||||
Supplementary information | |||||||
Acquisition of intangible assets and property and equipment | 157 | 139 | ₪ 115 | ||||
Cost of inventory used as fixed assets | ₪ 33 | ₪ 8 | |||||
Convenience translation into U.S. dollars [Member] | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Cash generated from operations (Appendix) | $ | $ 254 | ||||||
Income tax paid | $ | (5) | ||||||
Net cash provided by operating activities | $ | 249 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisition of property and equipment | $ | (167) | ||||||
Acquisition of intangible and other assets | $ | (49) | ||||||
Investment in deposits, net | $ | (19) | ||||||
Interest received | $ | 1 | ||||||
Consideration received from sales of property and equipment | $ | [1] | ||||||
Net cash used in investing activities | $ | (234) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Lease principal payments | $ | (42) | ||||||
Lease interest payments | $ | (6) | ||||||
Proceeds from issuance of notes payable, net of issuance costs | $ | 71 | ||||||
Interest paid | $ | (15) | ||||||
Proceeds from non-current bank borrowing received | $ | 48 | ||||||
Repayment of borrowings | $ | (17) | ||||||
Repayment of notes payable | $ | (76) | ||||||
Net cash provided by (used in) financing activities | $ | (37) | ||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | $ | (22) | ||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | $ | 121 | ||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 99 | ||||||
Profit for the year | $ | 37 | ||||||
Adjustments for: | |||||||
Depreciation and amortization | $ | 229 | ||||||
Amortization of deferred expenses - Right of use | $ | 10 | ||||||
Employee share based compensation expenses | $ | 5 | ||||||
Liability for employee rights upon retirement, net | $ | 1 | ||||||
Finance costs, net | $ | (1) | ||||||
Lease interest payments | $ | 6 | ||||||
Interest paid | $ | 15 | ||||||
Interest received | $ | (1) | ||||||
Deferred income taxes | $ | (2) | ||||||
Income tax paid | $ | 5 | ||||||
Capital loss from property and equipment | $ | [1] | ||||||
Decrease (increase) in accounts receivable: | |||||||
Trade | $ | (8) | ||||||
Other | $ | (23) | ||||||
Increase (decrease) in accounts payable and accruals: | |||||||
Trade | $ | 1 | ||||||
Other payables and provisions | $ | 8 | ||||||
Deferred revenues and other | $ | (7) | ||||||
Increase in deferred expenses - Right of use | $ | (18) | ||||||
Decrease (increase) in inventories | $ | (3) | ||||||
Cash generated from operations: | $ | 254 | ||||||
Supplementary information | |||||||
Acquisition of intangible assets and property and equipment | $ | 50 | ||||||
Cost of inventory used as fixed assets | $ | $ 11 | ||||||
[1] | Representing an amount of less than 1 million. |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of general [Abstract] | |
GENERAL | NOTE 1 - GENERAL a. Reporting entity Partner Communications Company Ltd. ("the Company", "Partner") is a leading Israeli provider of telecommunications services (cellular, fixed-line telephony, internet and television services) under the Partner brand, and cellular services also under the 012 Mobile brand. The Company is incorporated and domiciled in Israel and its principal executive office’s address is 8 Amal Street, Afeq Industrial Park, Rosh-Ha'ayin 48103, Israel. The Company's business and non-current assets are concentrated in Israel. The Company's share capital consists of ordinary shares, which are traded on the Tel Aviv Stock Exchange Ltd. ("TASE") under the symbol "PTNR". American Depositary Shares ("ADSs"), each representing one of the Company’s ordinary shares, are quoted on the NASDAQ Global Select Market™, under the symbol "PTNR". See also note 21(a). Regarding the Company's principal shareholder and holdings of approved Israeli shareholders in the Company, see note 26. These consolidated financial statements of the Company as of December 31, 2021, are comprised of the Company and its subsidiaries and consolidated partnerships (the "Group"). See the list of subsidiaries and consolidated partnerships and principles of consolidation in note 2(c)(1). See also 2(c)(2) with respect to investment in PHI. The coronavirus ("COVID-19") pandemic began to have a harmful effect on the Company's business from the beginning of March 2020, due in particular to the significant fall in the volume of international travel by the Company's customers which caused a very significant decrease in revenues from roaming services. In addition the closure of shopping malls for limited periods during 2020 and changes in general consumer behavior negatively affected the volume of sales of equipment. Beginning in the second quarter of 2021, shopping malls reopened and the extent of general domestic economic activity largely returned to levels experienced prior to the COVID-19 pandemic. Regarding roaming services, revenues from roaming services began to increase moderately in the second half of 2021 as a result of a moderate increase in the volume of international travel by the Company’s customers. However, as of the date of approval of these financial statements, revenues from roaming services continue to be significantly restrained, largely related to the impact of the Omicron variant on international travel, and remain significantly below pre-COVID-19 pandemic levels. The Company reviewed the effects of the COVID-19 pandemic on its critical accounting estimates and judgments as of December 31, 2021, and determined that no material change was required. F - 12 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - GENERAL b. Operating segments The operating segments were determined based on the reports reviewed by the Chief Executive Officer (CEO) who is responsible for allocating resources and assessing performance of the operating segments, and therefore is the Chief Operating Decision Maker ("CODM"), and supported by budget and business plans structure, different regulations and licenses (see (c) below). The CEO considers the business from two operating segments, as follows (see also note 5): (1) Cellular segment: Services in the cellular segment include basic cellular telephony services, text messaging, internet browsing and data transfer, content services, roaming services, M2M (Machine to Machine) and IOT (Internet of Things) services, handset repair services, cellular content and value-added services, and services provided to other operators that use the Company's cellular network. The two payment methods offered to our customers are pre-paid and post-paid. Pre-paid services are offered to customers that purchase credit in advance of service use. Post-paid services are offered to customers with bank and credit arrangements. Most of the cellular tariff plans are bundles which include unlimited volumes of calls time and text messaging (with fair use limits), as well as limited data packages. Cellular content and value-added services offered include multimedia messaging, cyber protection, cloud backup, ringtones, and a range of advanced business services. International roaming services abroad for the Company’s customers include airtime calls, text messaging and data services on networks with which the Company has a commercial roaming relationship. Partner also provides inbound roaming services to the customers of foreign operators with which the Company has a commercial roaming relationship. In addition, the cellular segment includes wholesale cellular services provided to virtual operators who use the Partner cellular network to provide services to their customers. Optional services such as equipment extended warranty plans and international calling plans are also provided for an additional monthly charge or included in specific tariff plans. The Company also provides warranty repair plans and services for cellular phone and electronic devices to both retail customers and independent merchants and parallel importers. (2) Fixed-line segment: Services in the fixed-line segment include: (a) Internet services that provide access to the internet through both fiber-optics and wholesale broadband access, internet services provider (“ISP”) services; internet Value Added Services (“VAS”) such as cyber protection, anti-virus and anti-spam filtering; and fixed-line voice communication services provided through Voice Over Broadband (“VOB”); (b) Business solutions including Session Initiation Protocol (“SIP”) voice trunks and Network Termination Point Services (“NTP”) – under which the Group supplies, installs, operates and maintains endpoint network equipment and solutions, including providing and installing equipment and cabling within a subscriber's place of business or premises, hosting services, transmission services, Primary Rate Interface (“PRI”) and other fixed-line communications solution services; (c) International Long Distance services (“ILD”): outgoing and incoming international telephony, hubbing, roaming and signaling and calling card services; (d) Television services over the Internet (“TV”); (e) Connections and data transfer services provided to international telecommunications operators over the fiber-optic infrastructure. The cellular segment and the fixed-line segment also include sales and leasing of telecommunications, audio visual and related devices: mainly cellular handsets, tablets (handheld computers), laptops, landline phones, modems, datacards, domestic routers, servers and related equipment, integration project hardware and a variety of digital audio visual devices and small household appliances including smart watches, car dashboard cameras, televisions, digital cameras, games consoles, audio accessories and other devices. Each segment is divided into services and equipment revenues, and the related cost of revenues. The operating segments include the following measures: revenues, cost of revenues, operating profit (see note 5(2)). The CODM does not examine assets or liabilities for the segments separately for the purposes of allocating resources and assessing performance of the operating segments and they are not therefore presented in note 5 segment information. F - 13 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - GENERAL c. Group licenses The Group operates under the following licenses that were received from the Israeli Ministry of Communications ("MOC"), the Israeli Civil Administration ("CA") and the Israeli Electricity Authority ("EA"): Type of services Area of service License owner Granted by License valid through Guarantees made Dec 31, 2021 (NIS millions) (1) Cellular Israel Partner Communications Company Ltd. MOC Feb, 2032 21** (2) Cellular West Bank Partner Communications Company Ltd. CA Feb, 2032 4 (3) Cellular infrastructure Israel P.H.I Networks (2015) Lp. MOC Aug, 2025 (4) ISP Israel Partner Communications Company Ltd. MOC Mar, 2023 (5) ISP West Bank Partner Communications Company Ltd. CA Mar, 2023 (6) Fixed (incl. ISP, ILD, NTP) Israel Partner Land-line Communication Solutions - Limited Partnership MOC Jan, 2027 2 (7) Fixed (incl. ISP, ILD, NTP) West Bank Partner Land-line Communication Solutions - Limited Partnership CA Jan, 2027 * (8) Electric Energy Israel Partner Communications Company Ltd. EA Oct, 2026 2 * Representing an amount of less than 1 million. ** Including guarantees of NIS 16 million with respect to the frequencies tender, see note 17(1). The Group also has a trade license that regulates issues of servicing and trading of equipment, and a number of encryption licenses that permits dealing with means of encryption within the framework of providing radio telephone services to the public. On October 18, 2021, the Minister of Energy granted Partner a license to supply electricity without means of production (the "License"). The License will allow the Company to purchase electricity for sale to consumers that have online meters. The License is granted to Partner for a period of 5 years. With respect to license (1): On November 2021 the cellular license was extended by the MOC for an additional 10 year period until February 1, 2032. See also note 2(f) with respect to changes in accounting estimate made to the estimated useful life of the 2G and 3G frequencies. License (2) follows license (1). The other licenses may be extended for various periods, at the discretion of the MOC, CA or EA, respectively. See also note 17(5) as to additional guarantees made to third parties. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of significant accounting policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES a. Basis of preparation of the financial statements (1) Basis of preparation The consolidated financial statements of the Company ("the financial statements") have been prepared in accordance with International Financial Reporting Standards (IFRSs), as issued by the International Accounting Standards Board (IASB). The principal accounting policies set out below have been consistently applied to all periods presented unless otherwise stated. (2) Use of estimates and judgments The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates, and requires management to exercise its judgment in the process of applying the Group's accounting policies. Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4. F - 15 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES b. Foreign currency translations (1) Functional and presentation currency The consolidated financial statements are measured and presented in New Israeli Shekels ("NIS"), which is the Group's functional and presentation currency as it is the currency of the primary economic environment in which the Group operates. The amounts presented in NIS millions are rounded to the nearest NIS million. (2) Transactions and balances Foreign currency transactions are translated into NIS using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement in finance costs, net. (3) Convenience translation into U.S. Dollars (USD or $ or dollar) The NIS figures at December 31, 2021 and for the period then ended have been translated into dollars using the representative exchange rate of the dollar at December 31, 2021 (USD 1 = NIS 3.110). The translation was made solely for convenience, is supplementary information, and is distinguished from the financial statements. The translated dollar figures should not be construed as a representation that the Israeli currency amounts actually represent, or could be converted into, dollars. c. Interests in other entities (1) Subsidiaries The consolidated financial statements include the accounts of the Company and entities controlled by the Company. Control exists when the Company has the power over the investee; has exposure, or rights, to variable returns from involvement in the investee; and has the ability to use its power over the investee to affect its returns. Subsidiaries and partnerships are fully consolidated from the date on which control is transferred to the Company. Inter-company transactions, balances, income and expenses on transactions between Group companies are eliminated in preparing the consolidated financial statements. Non-controlling interests in the results and equity of a subsidiary are shown separately in the consolidated statements of profit or loss, statement of comprehensive income, statement of changes in equity and balance sheet respectively. List of wholly owned Subsidiaries and partnerships: ■ 012 Smile Telecom Ltd. ■ 012 Telecom Ltd. ■ Partner Land-Line Communication Solutions - Limited Partnership ■ Partner Future Communications 2000 Ltd. ("PFC") ■ Get Cell Communication Products Limited Partnership ■ Partner Business Communications Solution - Limited Partnership – not active F - 16 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES c. Interests in other entities (2) Investment in PHI In November 2013, the Company and Hot Mobile Ltd. entered into a network sharing agreement ("NSA") and a right of use agreement. Pursuant to the NSA, the parties created a 50-50 limited partnership - P.H.I. Networks (2015) Limited Partnership ("PHI"), which operates and develops a radio access network shared by both parties, starting with a pooling of both parties' radio access network infrastructures creating a single shared pooled radio access network. PHI began its operations in July 2015, managing the networks. The control over PHI is borne 50-50 by the Company and Hot Mobile, each nominates an equal number of directors (3 directors). Decisions about the relevant activities of PHI require the unanimous consent of the Parties, PHI is considered a joint arrangement controlled by the Company and Hot Mobile (joint control). The activities of the joint arrangement are primarily designed for the provision of output to the Parties. The joint arrangement terms give the Parties rights to the assets, and obligations for the liabilities and expenses of PHI. Furthermore the Parties have rights to substantially all of the economic benefits of PHI's assets. PHI's liabilities are in substance satisfied by the cash flows received from the Parties, as the Parties are substantially the source of cash flows contributing to the continuity of the operations of PHI. The Company accounts for its rights in the assets of PHI and obligations for the liabilities and expenses of PHI as a joint operation, recognizing its share in the assets, liabilities, and expenses of PHI. See also note 9. d. Inventories Inventories of equipment: cellular handsets and fixed telephones, tablets, laptops, datacards, servers, spare parts, ISP modems, related equipment, accessories and other inventories are stated at the lower of cost or net realizable value. Cost is determined on the "first-in, first-out" basis. The Group determines its allowance for inventory obsolescence and slow moving inventory based upon past experience, expected inventory turnover, inventory ageing and current and future expectations with respect to product offerings. e. Property and equipment Property and equipment are initially stated at cost. Costs are included in the assets' carrying amounts or recognized as separate assets, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance that do not meet the above criteria are charged to the statement of income during the financial period in which they are incurred. Costs include expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labor, any other costs directly attributable to bringing the asset to a working condition for its intended use. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. Property and equipment are presented less accumulated depreciation, and accumulated impairment losses. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (see note 2(i)). The useful economic lives of the Group's non-financial assets are reviewed annually, see note 4(1). F - 17 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES e. Property and equipment Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, as follows: years Communications network: Physical layer and infrastructure 10 - 25 (mainly 15, 10) Other Communication network 3 - 15 (mainly 5, 10, 15) Computers, software and hardware for information systems 3-10 (mainly 3-5) Office furniture and equipment 7-15 Optic fibers and related assets 7-25 (mainly 25) Subscribers equipment and installations 2 - 5 Property 25 Leasehold improvements are depreciated by the straight-line method over the term of the lease (including reasonably assured option periods), or the estimated useful life (between 5 to 10 years) of the improvements, whichever is shorter. f. Licenses and other intangible assets (1) Licenses costs and amortization (see also note 1(c)): (a) The licenses to operate cellular communication services (and related frequencies purchase costs) were The costs of the 2G and 3G frequencies allocated to the Company are depreciated up to Dec 31, 2030; see also change in estimate below. The costs of certain 4G frequencies allocated to the Company are depreciated up to Aug 9, 2025. The costs of the other frequencies allocated to the Company following the 5G frequencies tender (see note 17(1)) are depreciated up to Sep 29, 2035 and Sep 29, 2030. (b) Partner Land-line Communication solutions – limited partnership's license for providing fixed-line The other licenses of the Group were received with no significant costs. F - 18 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES f. Licenses and other intangible assets Changes in an accounting estimate: Management has updated an accounting estimate in 2019 as follows: The estimated useful life of the cellular license was determined in the past to end by February 1, 2022. According to applicable law existed in 2019, the Company's cellular license could be extended for additional 6-year periods, subject to the requirements set in the license. The MOC published a tender during 2019 for the award of frequencies, including frequencies for 5G services. Following the tender published, Management made an annual examination of the estimated useful life of the license in the fourth quarter of 2019 with the expectation that conditions necessary to obtain renewal of the license will be satisfied and that the cost of renewal will not be significant. The tender includes 2x30 MHz in the 700 MHz Band, 2x60 MHz in the 2,600MHz band and 300 MHz in the 3,500-3,800 MHz band. The frequencies in the 700 MHz band were offered for a period of 15 years and the rest of the frequencies offered in the tender were offered for a period of 10 years. See also note 17(1) for the results of the frequencies tender. Based on Company's judgment described above, the Company expected in 2019 that the license would be renewed at a high level of certainty: the Company estimated in 2019 that based on its experience and acquaintance with the communications market in Israel, if current conditions continue, there is a high probability that the license will be extended for the additional term of 6 years. Following this examination, the estimated useful life of the 2G and 3G frequencies was re-evaluated for an additional period of 6 years, thereby ending on February 1, 2028. The effect of these changes on the consolidated financial statements were as follows: the amortization expenses of the cellular license were reduced by NIS 15 million in the fourth quarter of 2019, by NIS 60 million in 2020, and by approximately NIS 60 million in 2021. On September 29, 2020 the Company's cellular license was amended (amendment number 107), whereby the Company is entitled to request an extension of the license for additional periods of ten years instead of six years, at the discretion of the MOC and CA. See information with respect to the extension provisions in note 1(c). On receipt of the license amendment, and with respect to the high probability judgment that remained the same, the estimated life of the 2G and 3G frequencies were re-valuated for an additional period of 4 years, thereby ending on February 1, 2032. The effect of these changes on the consolidated financial statements (in addition to the 2019 abovementioned change in estimate) were as follows: the amortization expenses of the cellular license were reduced in the fourth quarter of 2020 by NIS 2 million, and were reduced by an annual amount of approximately NIS 8 million 2021. See also note 4(1). F - 19 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES f. Licenses and other intangible assets Changes in an accounting estimate In June 2021 the Company received a decision of the MOC setting the frequencies allotments that were allocated at the time for the 2G and 3G networks (in the 900, 1800 and 2100 Mhz bands) for usage that will also be allowed with more advanced technologies, until December 31, 2030. Following the decision the Company revised the useful life of the 2G and 3G frequencies to end by December 31, 2030. The change in estimate did not have a material effect on the amortization expenses. The decision also included the termination of the 2G and 3G networks by December 31, 2025. The decision to terminate the 2G and 3G networks by the end of December 31, 2025 did not have a material effect on depreciation expenses. The other licenses are amortized by the straight-line method over their useful lives (see note 1(c)) which exclude any ungranted possible future extensions that are not under the Group's control. The amortization expenses are included in the cost of revenues. (2) Computer software: Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and to bring to use the specified software. Development costs, including employee costs, that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognized as intangible assets when the capitalization criteria under IAS 38 are met. Other development expenditures that do not meet the capitalization criteria, such as software maintenance, are recognized as expenses as incurred. Computer software costs are amortized over their estimated useful lives (3 to 10 years, mainly 3 years) using the straight-line method, see also note 11. (3) Capitalization of costs to obtaining customers contracts: Costs of obtaining contracts with customers are recognized as assets when the costs are incremental to obtaining the contracts, and it is probable that the Group will recover these costs. The assets are amortized to selling and marketing expenses in accordance with the expected service period (mainly over 2-3 years), using the portfolio approach, see also notes 4(1) and 11. Other costs incurred that would arise regardless of whether a contract with a customer was obtained are recognized as an expense when incurred. F - 20 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES g. Deferred expenses - Right Of Use (ROU) Right of use (ROU) of capacity over international fiber optic cables was acquired in a business combination, subsequent additions and right of use in PHI's assets are recognized at cost. The ROU is presented as deferred expenses (current and non-current) and is amortized to cost of revenues on a straight line basis over a period beginning each acquisition of additional ROU in this framework and until 2030 (including expected contractual extension periods). See also notes 12 and 17(4). h. Goodwill Goodwill acquired in a business combination represents the excess of the consideration transferred over the net fair value of the identifiable assets acquired, and identifiable liabilities and contingent liabilities assumed. The goodwill has an indefinite useful economic life and is not subject to amortization; rather is measured at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill is allocated to a group of cash-generating units (CGUs) under the fixed line segment that is expected to benefit from the synergies of the combination. The group of CGUs represents the lowest level within the entity which the goodwill is monitored for internal management purposes. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. Any impairment loss would be recognized for the amount by which the carrying amount of goodwill exceeded its recoverable amount. The recoverable amount is the higher of value-in-use and the fair value less costs of disposal. Value-in-use is determined by discounting expected future cash flows using a pre-tax discount rate. Any impairment is recognized immediately as an expense and is not subsequently reversed. See also note 13(1) with respect to impairment tests. F - 21 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES i. Impairment tests of non-financial assets with finite useful economic lives Assets that are subject to depreciation and amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If such indications exist an impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. If this is the case, recoverable amount is determined for the cash-generating unit (CGU) to which the asset belongs. The recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. Value-in-use is determined by discounting expected future cash flows using a pre-tax discount rate. An impairment loss recognized for an asset (or CGU) other than goodwill shall be reversed if, and only if, there has been a change in the estimates used to determine the asset's (or CGU's) recoverable amount since the last impairment loss was recognized. If this is the case, the carrying amount of the asset (or CGU) shall be increased to its recoverable amount. The increased carrying amount of an asset (or CGU) other than goodwill attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in the statement of income. j. Financial instruments The Group applies IFRS 9 and classifies its financial instruments in the following categories: (1) amortized cost (AC), (2) at fair value through profit or loss (FVTPL: Financial liability at fair value (see note 15) and embedded derivatives). The classification depends on the business model for managing the financial instruments and the contractual terms of the cash flows. See note 6(c) as to classification of financial instruments to the categories. At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. Financial assets are classified as current if they are expected to mature within 12 months after the end of the reporting period; otherwise they are classified as non-current. Financial liabilities are included in current liabilities, except for maturities greater than 12 months after the end of the reporting period, which are classified as non-current liabilities. See also note 15. F - 22 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES j. Financial instruments (1) FVTPL category Gains or losses arising from changes in the fair value of embedded derivative financial instruments and financial liability at fair value are presented in the income statement within "finance costs, net" in the period in which they arise. These financial instruments are classified into 3 levels based on their valuation method (see also notes 6(c), 6(a)(2)(c)): Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included within level 1 that are observable for the assets or liabilities, either directly (as prices) or indirectly (derived from prices). Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for financial liability at fair value. (2) Amortized cost category: The Group classifies its financial assets, such as trade receivables, at amortized cost only if both of the following criteria are met: (1) the asset is held within a business model whose objective is to collect the contractual cash flows, and (2) the contractual terms give rise to cash flows that are solely payments of principal and interest. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from trade receivables is included in the income statement under other income, net (see note 23) using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in finance income/expense together with foreign exchange gains and losses. Impairment expenses (credit losses) are presented as separate line item in the statement of profit or loss. Cash and cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, which include short-term bank deposits (up to 3 months from date of deposit) that are not restricted as to withdrawal or use. Short term deposits, are deposits in commercial banks for periods of more than 3 months from date of deposit and less than 12 months from the reporting date. Long term deposits, are deposits in commercial banks for periods of more than 12 months from the reporting date. F - 23 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES j. Financial instruments Financial assets at amortized cost are presented net of impairment losses: The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired based on the expected credit loss model. The assets that are subject to the expected credit loss model are mainly the trade receivables. While cash and cash equivalents, short-term and long-term deposits and contract assets are also subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial. The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables and contract assets the Group applies IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and period of payments and period past due. The expected loss rates are based on the payment profiles of sales, and the corresponding historical credit losses experienced. The historical loss rates are adjusted to reflect current and forward-looking information on factors affecting the ability of the customers to settle the receivables. Trade receivables and contract assets are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan, and results of legal proceedings. Financial liabilities, such as borrowings and notes payable, are initially recognized at fair value, net of transaction costs incurred, and subsequently measured at amortized cost. Any difference between the fair value (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Offsetting: Financial assets and liabilities are offset and the net amount reported in the statement of financial position when the Group has currently a legal enforceable right to offset the recognized amounts and has an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legal enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company or the counterparty. F - 24 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES k. Employee benefits (i) Post-employment benefits 1. Defined contribution plan According to Section 14 of the Israeli Severance Pay Law the Group's liability for some of the employee rights upon retirement is covered by regular contributions to various pension schemes. The schemes are generally funded through payments to insurance companies or trustee-administered funds. These plans are defined contribution plans, since the Group pays fixed contributions into a separate and independent entity. The Group has no legal or constructive obligations to pay further contribution if the fund does not hold sufficient assets to pay all employees the benefit relating to employee service in the current or prior periods. The amounts funded as above are not reflected in the statement of financial position. Obligations for contributions to defined contribution pension plans are recognized as an expense in the statement of income when they are due. 2. Defined benefit plan Labor laws, agreements and the practice of the Group, require paying retirement benefits to employees dismissed or retiring in certain other circumstances (except for those described in 1 above), measured by multiplying the years of employment by the last monthly salary of the employee (i.e. one monthly salary for each year of tenure), the obligation of the Group to pay retirement benefits is treated as a defined benefit plan. The liability recognized in the statement of financial position in respect of the defined benefit plan is the present value of the defined benefit obligation at end of the reporting period less the fair values of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. According to IAS 19 employee benefits Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. Interest costs in respect of the defined benefit plan are charged or credited to finance costs. See also note 16. F - 25 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES k. Employee benefits (ii) Termination benefits Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits when it is demonstrably legally or constructively committed to either: terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary redundancy. (iii) Short term employee benefits 1. Vacation and recreation benefits The employees are legally entitled to vacation and recreation benefits, both computed on an annual basis. This entitlement is based on the term of employment. This obligation is treated as a short term benefit under IAS 19. The Group charges a liability and expense due to vacation and recreation pay, based on the benefits that have been accumulated for each employee, on an undiscounted basis. 2. Profit-sharing and bonus plans The Group recognizes a liability and an expense for bonuses based on consideration of individual performance and the Group's overall performance. The Group recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation. 3. Other short term benefits The Group recognized expenses for other short term benefits provided by the collective employment agreement (see also note 22(e)). l. Share based payments The Group operates an equity-settled share-based compensation plan to its employees, under which the Group receives services from employees as consideration for equity instruments of the Group. The fair value of the employee services received in exchange for the grant of the equity instruments is recognized as an expense. The total amount to be expensed is determined by reference to the fair value of the equity instruments granted, at the grant date. Non-market vesting conditions (performance conditions) are included among the assumptions used to estimate the number of options expected to vest. The total expense is recognized during the vesting period, which is the period over which all of the specified vesting conditions of the share-based payment are to be satisfied. At the end of each reporting period, the Group revises its estimates of the number of equity instruments that are expected to vest based on the vesting conditions, and recognizes the impact of the revision of original estimates, if any, in the statement of income, with corresponding adjustment to accumulated earnings. See also note 21. F - 26 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES m. Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will require settling the obligation, and the amount has been reliably estimated. See note 14. (1) In the ordinary course of business, the Group is involved in a number of lawsuits and litigations. The costs that (2) The Company is required to incur certain costs in respect of a liability to dismantle and remove assets and to (3) Provisions for equipment warranties include obligations to customers in respect of equipment sold and F - 27 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES n. Revenues The revenue recognition standard IFRS 15, Revenue from Contracts with Customers 1) Identifying the contract with the customer. 2) Identifying separate performance obligations in the contract. 3) Determining the transaction price. 4) Allocating the transaction price to separate performance obligations. 5) Recognizing revenue when the performance obligations are satisfied. (1) Identifying the contract with the customer Two or more contracts entered into at or near the same time with the same customer (or related parties of the customer) are accounted for as a single contract if one or more of the following criteria are met: a. The contracts are negotiated as a package with a single commercial objective; b. The amount of consideration to be paid in one contract depends on the price or performance of the other contract; c. The goods or services promised in the contracts (or some goods or services promised in each of the contracts) are a single performance obligation. Additions of distinct goods or services at their stand-alone sale price are treated as separate contracts. (2) Identifying performance obligations The Group assesses the goods or services promised in the contract with the customer and identifies as performance obligation any promise to transfer to the customer one of the following: (a) Goods or services (or a bundle of goods or services) that are distinct; or (b) A series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. Goods or services are identified as being distinc |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of recently issued accounting pronouncements [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | NOTE 3 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (1) The following relevant new standards, amendments to standards or interpretations have been issued, and were effective for the first time for financial periods beginning on or after January 1, 2021: Covid-19-Related Rent Concessions – amendments to IFRS 16 In May 2020, the IASB amended IFRS 16 Leases which provides lessees with an option to treat qualifying rent concessions in the same way as they would if they were not lease modifications. The expedient initially only applied to reductions in lease payments due on or before June 30, 2021, but that date was subsequently extended to June 30, 2022 through further amendments made in March 2021. This resulted in accounting for concessions received in an immaterial amount as variable lease payments in the period in which they are granted. The expedient was applied to all qualifying rent concessions. (2) The following new standards and amendments to standards are not effective in 2021 Classifying liabilities as current or non-current In January 2020, the IASB issued amendment to IAS 1 to specify the requirements for classifying liabilities as current or non-current. The amendments clarify: the definition of a right to defer a settlement, that a right to defer must exist at the end of the reporting period, that classification is unaffected by the likelihood that an entity will exercise its deferral right, that only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification. The amendment is effective for annual periods beginning on or after January 1, 2023. At this stage the Company cannot evaluate the effect of the amendment on the financial statements. Disclosure of Accounting Policies In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgments, in which it provides guidance to help entities apply materiality judgments to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments to IAS 1 are applicable for annual periods beginning on or after January 1, 2023 with earlier application permitted. The Group is currently assessing the impact of the amendments to determine the impact they will have on the Group’s accounting policy disclosures. Assessing contingent liabilities In May 2020, the IASB issued amendments to IAS 37, ‘Provisions, contingent liabilities and contingent assets’ specify which costs a company includes when assessing whether a contract will be loss-making. The amendment is effective for annual periods beginning on or after January 1, 2022. The amendment is not expected to have a material effect on the financial statements. Deferred tax assets and liabilities In May 2020, the IASB issued Amendment to IAS 12 – deferred tax related to assets and liabilities arising from a single transaction. These amendments require companies to recognize deferred tax on transactions that, on initial recognition give rise to equal amounts of taxable and deductible temporary differences. The amendment is effective for annual periods beginning on or after January 1, 2023. The amendment is not expected to have a material effect on the financial statements. |
CRITICAL ACCOUNTING ESTIMATES A
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of critical accounting estimates and judgements [Abstract] | |
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | NOTE 4 - CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. (1) Assessing the useful lives of non-financial assets: The useful economic lives of the Group's property and equipment are an estimate determined by management. The Group defines useful economic life of its assets in terms of the assets' expected utility to the Group. This estimation is based on assumptions of future changes in technology or changes in the Group's intended use of these assets, experience of the Group with similar assets, and legal or contract periods where relevant. The useful economic lives of the Group's intangible assets are an estimate determined by management based on assumptions of future changes in technology, legal rights, experience of customer's behavior, and experience of the Group with similar assets where relevant. The assets estimated economic useful lives are reviewed, and adjusted if appropriate, at least annually. See also note 2(f). (2) Assessing the recoverable amount for impairment tests of non-financial assets : The Group is required to determine at the end of each reporting period whether there is any indication that an asset may be impaired. If indicators for impairment are identified the Group estimates the assets' recoverable amount, which is the higher of an asset's fair value less costs to sell and value in use. The value-in-use calculations require management to make estimates of the projected future cash flows. Determining the estimates of the future cash flows is based on management past experience and best estimate for the economic conditions that will exist over the remaining useful economic life of the Cash Generating Unit (CGU). See also notes 2(i), and 13. Trends in the economic and financial environment, competition and regulatory authorities' decisions, or changes in competitors’ behavior in response to the economic environment may affect the estimate of recoverable amounts in future periods. See also note 2(i). Continued increases in the level of competition for cellular and fixed-line services may bring further downward pressure on prices which may require us to perform further impairment tests of our assets. Such impairment tests may lead to recording additional significant impairment charges, which could have a material negative impact on our operating and profit. F - 37 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 - CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (3) Assessing the recoverable amount for impairment tests of goodwill: Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. The recoverable amount of the fixed-line segment to which goodwill has been allocated has been determined based on value-in-use calculations. For the purpose of the goodwill impairment tests as of December 31, 2019, 2020 and 2021 the recoverable amount was assessed by management with the assistance of external independent experts (BDO Ziv Haft Consulting & Management Ltd.) based on value-in-use calculations. The value-in-use calculations use pre-tax cash flow projections covering a five-year period. Cash flows beyond the five-year period to be generated from continuing use are extrapolated using estimated growth rates. The terminal growth rate represents the long-term average growth rate of the fixed-line communications services business. The key assumptions used in the December 31, 2021 test were as follows: Terminal growth rate 1 % After-tax discount rate 7 % Pre-tax discount rate 8.5 % The impairment test as of December 31, 2021 was based on assessments of financial performance and future strategies in light of current and expected market and economic conditions. Trends in the economic and financial environment, competition and regulatory authorities' decisions, or changes in competitors’ behavior in response to the economic environment may affect the estimate of recoverable amounts. See also note 13(1) and note 2(h). No impairment charges were recognized with respect to goodwill in 2019, 2020 and 2021. Sensitivity Analysis: The headroom of the fixed line segment recoverable amount over the carrying amount as of December 31, 2019, 2020 and 2021 was approximately 42%, 37% and 52% respectively. Sensitivity analysis was performed for the recoverable amount as of December 31, 2021 for a change of the after-tax discount rate within the range of ± 10% multiplied by the variable 7% (6.3% to 7.7%), assuming all other variables constant. Sensitivity analysis was also performed for a change of the terminal growth rate within the range of ± 1% of the variable 1.0% (0% to 2%), assuming all other variables constant. Results showed that no impairment charge is required for both analyses. F - 38 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 - CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (4) Assessing impairment of financial assets: The allowance for credit losses for financial assets is based on assumptions about risk of default and expected loss rates. The Group uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Group’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Individual receivables which are known to be uncollectable are written off by reducing the carrying amount directly. The other receivables are assessed collectively, grouped based on shared credit risk characteristics and the days past due. The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables and contract assets with and without significant financing components, the Group applies IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and period past due. The expected loss rates are based on the payment profiles of sales, and the corresponding historical credit losses experienced. The historical loss rates are adjusted to reflect current and forward-looking information on factors affecting the ability of the customers to settle the receivables. See notes 7, 6(a)(3), 2(j). (5) Considering the likelihood of contingent losses and quantifying possible legal settlements: Provisions are recorded when a loss is considered probable and can be reasonably estimated. Judgment is necessary in assessing the likelihood that a pending claim or litigation against the Group will succeed, or a liability will arise, quantifying the best estimate of final settlement. These judgments are made by management with the support of internal specialists, or with the support of outside consultants such as legal counsel. Because of the inherent uncertainties in this evaluation process, actual results may be different from these estimates. See notes 2(m), 14 and 20. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of operating segments [abstract] | |
SEGMENT INFORMATION | NOTE 5 - SEGMENT INFORMATION New Israeli Shekels Year ended December 31, 2021 In millions Cellular segment Fixed-line segment Elimination Consolidated Segment revenue - Services 1,687 948 2,635 Inter-segment revenue - Services 12 118 (130 ) Segment revenue - Equipment 602 126 728 Total revenues 2,301 1,192 (130 ) 3,363 Segment cost of revenues - Services 1,204 952 2,156 Inter-segment cost of revenues- Services 117 13 (130 ) Segment cost of revenues - Equipment 498 78 576 Cost of revenues 1,819 1,043 (130 ) 2,732 Gross profit 482 149 631 Operating expenses (1) 302 194 496 Other income, net 17 11 28 Operating profit (loss) 197 (34 ) 163 Reconciliation to profit for the year: Finance costs, net (64 ) Income tax income 16 Profit for the year 115 Depreciation and amortization included in the segment's operating profit 410 334 744 (1) Operating expenses include selling and marketing expenses, general and administrative expenses and credit losses. F - 40 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 5 - SEGMENT INFORMATION New Israeli Shekels Year ended December 31, 2020 In millions Cellular segment Fixed-line segment Elimination Consolidated Segment revenue - Services 1,647 861 2,508 Inter-segment revenue - Services 16 132 (148 ) Segment revenue - Equipment 545 136 681 Total revenues 2,208 1,129 (148 ) 3,189 Segment cost of revenues - Services 1,272 856 2,128 Inter-segment cost of revenues- Services 131 17 (148 ) Segment cost of revenues - Equipment 451 85 536 Cost of revenues 1,854 958 (148 ) 2,664 Gross profit 354 171 525 Operating expenses (1) 300 159 459 Other income, net 19 11 30 Operating profit 73 23 96 Reconciliation to profit for the year: Finance costs, net (69 ) Income tax expenses (10 ) Profit for the year 17 Depreciation and amortization included in the segment's operating profit 450 264 714 (1) Operating expenses include selling and marketing expenses, general and administrative expenses and credit losses. F - 41 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 5 - SEGMENT INFORMATION New Israeli Shekels Year ended December 31, 2019 In millions Cellular segment Fixed-line segment Elimination Consolidated Segment revenue - Services 1,783 777 2,560 Inter-segment revenue - Services 15 148 (163 ) Segment revenue - Equipment 571 103 674 Total revenues 2,369 1,028 (163 ) 3,234 Segment cost of revenues - Services 1,367 810 2,177 Inter-segment cost of revenues- Services 147 16 (163 ) Segment cost of revenues - Equipment 464 66 530 Cost of revenues 1,978 892 (163 ) 2,707 Gross profit 391 136 527 Operating expenses (1) 334 134 468 Other income, net 20 8 28 Operating profit 77 10 87 Reconciliation to profit for the year: Finance costs, net (68 ) Income tax expense * Profit for the year 19 Depreciation and amortization included in the segment's operating profit 542 209 751 * Representing an amount of less than NIS 1 million. (1) Operating expenses include selling and marketing expenses, general and administrative expenses and credit losses. |
FINANCIAL INSTRUMENTS AND FINAN
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | NOTE 6 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT a. Financial risk factors The Group is exposed to a variety of financial risks: credit, liquidity and market risks as part of its normal course of business. The Group's risk management objective is to monitor risks and minimize the possible influence that results from this exposure, according to its evaluations and expectations of the parameters that affect the risks. The Group did not enter into hedging transactions in 2019, 2020 and 2021. 1. Risk Management Risk management is carried out by the financial division under policies and/or directions resolved and approved by the audit and investment committee and the board of directors. 2. Market risks (a) Description of market risks Cash flow risk due to interest rate changes and CPI changes The Group is exposed to fluctuations in the Israeli Consumer Price index (CPI) with respect to lease obligations, see also note 19. Foreign exchange risk The Group's operating profit and cash flows are exposed to currency risk, mainly due to trade receivables and trade payables denominated in USD. F - 43 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT a. Financial risk factors 2. Market risks (a) Description of market risks Data regarding the US Dollar and Euro exchange rate and the Israeli CPI: Exchange Exchange rate of one rate of one Israeli Dollar Euro CPI* At December 31: 2021 NIS 3.110 NIS 3.520 229.37 points 2020 NIS 3.215 NIS 3.944 223.11 points 2019 NIS 3.456 NIS 3.878 224.67 points Increase (decrease) during the year: 2021 (3.3)% (10.8)% 2.8% 2020 (7.0)% 1.7% (0.7)% 2019 (7.8)% (9.6)% 0.6% * Index for each reporting period's last month, on the basis of 1993 average = 100 points. Sensitivity analysis: An increase (decrease) of 2% in the CPI as at December 31, 2020, and 2021 would have decreased (increased) equity and profit by NIS 2 million, for each of the years ended December 31, 2020 and 2021, assuming all other variables remain constant. An increase (decrease) of 5% in the USD exchange rate as at December 31, 2020 and 2021 would have decreased (increased) equity and profit by NIS 3 million, for each of the years ended December 31, 2020 and 2021, assuming that all other variables remain constant. F - 44 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT a. Financial risk factors 2. Market risks (b) Analysis of linkage terms of financial instruments balances December 31, 2021 In or linked to USD In or linked to other foreign currencies (mainly EURO) NIS unlinked Linked to the CPI Total New Israeli Shekels in millions Current assets Cash and cash equivalents 2 3 303 308 Short term deposits 14 330 344 Trade receivables** 35 3 533 571 Other receivables 46 46 Non- current assets Long term deposits 280 280 Trade receivables 245 245 Total assets 51 6 1,737 - 1,794 Current liabilities Current maturities of notes payable and borrowings 268 268 Trade payables** 127 13 565 705 Other payables 133 133 Current maturities of lease liabilities * 125 125 Non- current liabilities Notes payable 1,224 1,224 Borrowings from banks 184 184 Lease liabilities 2 593 595 Total liabilities 129 13 2,374 718 3,234 * Representing an amount of less than 1 million In or linked to foreign currencies New Israeli Shekels in millions ** Accounts that were set-off under enforceable netting arrangements Trade receivables gross amounts 111 Set-off (73 ) Trade receivables, net 38 Trade payables gross amounts 213 Set-off (73 ) Trade payables, net 140 F - 45 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT a. Financial risk factors 2. Market risks (b) Analysis of linkage terms of financial instruments balances December 31, 2020 In or linked to USD In or linked to other foreign currencies (mainly EURO) NIS unlinked Linked to the CPI Total New Israeli Shekels in millions Current assets Cash and cash equivalents 2 4 370 376 Short term deposits 411 411 Trade receivables* 29 7 524 560 Other receivables 7 7 Non- current assets Long term deposits 155 155 Trade receivables 232 232 Total assets 31 11 1,699 - 1,741 Current liabilities Current maturities of notes payable and borrowings 290 290 Trade payables* 92 11 534 29 666 Other payables 70 70 Current maturities of lease liabilities 1 119 120 Non- current liabilities Notes payable 1,219 1,219 Borrowings from banks 86 86 Financial liability at fair value 4 4 Other non-current liabilities 30 30 Lease liabilities 2 580 582 Total liabilities 95 11 2,233 728 3,067 In or linked to foreign currencies New Israeli Shekels in millions *Accounts that were set-off under enforceable netting arrangements Trade receivables gross amounts 104 Set-off (68 ) Trade receivables, net 36 Trade payables gross amounts 171 Set-off (68 ) Trade payables, net 103 F - 46 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT a. Financial risk factors 2. Market risks (c) Details regarding financial liability at fair value As of December 31, 2021 there are no notional amounts of financial liability at fair value (see note 15(6)) with respect to Notes series G option. The following table describes the changes in the liability during 2020 and 2021: New Israeli Shekels in millions Balance as at January 1, 2020 28 Finance costs 3 Exercise (27 ) Balance as at December 31, 2020 4 Finance costs * Exercise (4 ) Balance as at December 31, 2021 - * Representing an amount of less than NIS 1 million. 3. Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group's trade receivables, from cash and cash equivalents, short-term and long-term deposits and other receivables. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The Group conducts credit evaluations on receivables of certain types over a certain amount, and requires collaterals against them. The impairment requirements are based on an expected credit loss model. Accordingly, the financial statements include appropriate allowances for expected credit losses. See also note 2(j)(2). The face amount of financial assets represents the maximum credit exposure, see note 6(c). The cash and cash equivalents and short-term and long-term deposits are held in leading Israeli commercial banks, rated by Standard & Poor's Maalot at ilAAA/stable. Deposits at December 31, 2021 are deposited with remaining maturity of 3 to 18 months and bear annual unlinked fixed interest of between 0.25% and 0.52%. The trade receivables are significantly widespread, and include individuals and businesses, and therefore have no representing credit rating. See also note 7 as to the assessment by aging of the trade receivables and related allowance for credit losses. F - 47 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT a. Financial risk factors 4. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, without incurring unacceptable losses or risking damage to the Group's reputation. The Group's policy is to ensure that it has sufficient cash and cash equivalents to meet expected operational expenses and financial obligations. Maturities (undiscounted) of financial liabilities as of December 31, 2021: 2022 2023 2024 2025 to 2026 2027 and thereafter Total New Israeli Shekels in millions Principal payments of long term indebtedness: Notes payable series F 128 128 128 384 Notes payable series G 85 85 85 255 341 851 Notes payable series H 60 138 198 Borrowing P 29 29 Borrowing Q 23 23 11 57 Borrowing R 45 105 150 Expected interest payments of long term borrowings and notes payables 49 44 37 57 30 217 Lease liabilities 139 120 96 151 278 784 Trade and other payables 819 819 Total 1,272 400 357 568 892 3,489 See note 15 in respect of borrowings and notes payable. b. Capital risk management Credit rating: According to Standard & Poor's Maalot ("S&P Maalot") credit rating, of August 11, 2021, the Company's ilA+/Stable credit rating was unchanged. See note 15(7) regarding financial covenants. F - 48 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT c. Fair values of financial instruments As detailed in note 2(j) the financial instruments are categorized as following: Fair Value through Profit or Loss (FVTPL); Amortized Cost (AC). See also note 15 in respect of borrowings and notes payable and note 7 with respect to trade receivables. The financial instrument that is categorized as FVTPL is a financial liability at fair value. Its fair value is calculated by discounting estimated future cash flows based on the terms and maturity of each contract and using forward rates for a similar instrument at the measurement date. All significant inputs in this technique are observable market data and rely as little as possible on entity specific estimates, see also note 6(a)(2)(c). There were no transfers between fair value levels during the year. Carrying amounts and fair values of financial assets and liabilities, and their categories: December 31, 2020 December 31, 2021 Category Carrying amount Fair value Interest rate used (**) Carrying amount Fair value Interest rate used (**) New Israeli Shekels in millions Assets Cash and cash equivalents AC 376 376 308 308 Short term deposits AC 411 411 344 344 Long term deposits (***) 155 155 0.46 % 280 280 0.49 % Trade receivables AC 792 794 3.60 % 816 818 3.13 % Other receivables (*) AC 7 7 48 48 Other non-current assets (*) 10 10 Liabilities Notes payable series D AC 109 110 Market quote Notes payable series F AC 512 524 Market quote 384 392 Market quote Notes payable series G AC 824 939 Market quote 851 952 Market quote Notes payable series H AC 198 199 Market quote Financial liability at fair value FVTPL Level 3 4 4 Other non-current liabilities (*) AC 30 30 Trade and other payables (*) AC 719 719 819 819 Borrowing P AC 59 60 0.84 % 29 30 0.41 % Borrowing Q AC 79 82 0.93 % 57 58 0.65 % Borrowing R AC 150 150 2.55 % Lease liabilities AC 702 702 2.04 % 720 709 2.07 % (*) The fair value of these financial instruments equals their carrying amounts, as the impact of discounting is not significant. (**) The fair values of the notes payable quoted market prices at the end of the reporting period are within level 1 of the fair value hierarchy. The fair values of other instruments under AC categories were calculated based on observable weighted average of interest rates derived from quoted market prices of the Group's notes payable and bank quotes of rates of similar terms and nature, are within level 2 of the fair value hierarchy. (***) At December 31, 2021, long-term deposits are deposited for periods ending in March 2023 and June 2023. |
TRADE RECEIVABLES
TRADE RECEIVABLES | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other current receivables [abstract] | |
TRADE RECEIVABLES | NOTE 7 - TRADE RECEIVABLES (a) Composition: New Israeli Shekels December 31, 2020 2021 In millions Trade (current and non-current) 963 965 Deferred interest income (note 2(n)) (23 ) (21 ) Allowance for credit loss (148 ) (128 ) 792 816 Current 560 571 Non – current 232 245 Non-current trade receivables bear no interest. These balances are in respect of equipment sold in installments (13-36 monthly payments (mainly 36)). The amount is computed on the basis of the interest rate relevant at the date of the transaction (2020: 2.97% - 5.07%) (2021: 2.68% - 3.85%). See also note 2(j). (b) Impairment of financial assets: The changes in the allowance for credit losses for the years ended December 31, 2019, 2020 and 2021 are as follows: New Israeli Shekels Year ended 2019 2020 2021 In millions Balance at beginning of year 188 162 148 Receivables written-off during the year as uncollectible (44 ) (37 ) (29 ) Credit losses 18 23 9 Balance at end of year 162 148 128 See note 6(a)(3) regarding trade receivables credit risk. The estimate for expected credit losses from customers was considered using forward-looking information (including macro-economic information). Forward-looking information included additional downside scenarios related to the spread of COVID-19: considering increased risk of credit to customers in certain industries most harmed by the slowdown. A general increased provision was recorded in respect of the population as a whole, and a second provision was recorded in the amount of the expected loss based on an average of the impact of the different scenarios assumed. As a result the company increased its provision for expected credit losses in an immaterial amount. F - 50 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 7 - TRADE RECEIVABLES (b) Impairment of financial assets (continued) The aging of gross trade receivables and their respective allowance for credit losses as at December 31, 2020 and 2021 were as follows: New Israeli Shekels New Israeli Shekels December 31, 2020 December 31, 2021 In millions In millions Average expected loss rate Gross Allowance Average expected loss rate Gross Allowance Not passed due 5 % 831 45 5 % 861 46 Less than one year 59 % 60 36 62 % 53 33 More than one year 94 % 72 67 96 % 51 49 963 148 965 128 |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2021 | |
Classes of current inventories [abstract] | |
INVENTORY | NOTE 8 - INVENTORY New Israeli Shekels December 31, 2020 2021 In millions Handsets and devices 36 36 Accessories and other 9 13 Spare parts 20 22 ISP modems, routers, servers and related equipment 12 16 77 87 Write-downs recorded 7 5 Cost of inventory recognized as expenses and included in cost of revenues for the year ended 544 581 Cost of inventory used as fixed assets 8 33 |
INVESTMENT IN PHI
INVESTMENT IN PHI | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of associates [abstract] | |
INVESTMENT IN PHI | NOTE 9 - INVESTMENT IN PHI Network sharing agreement On November 8, 2013 the Company and Hot Mobile Ltd. ("Hot Mobile") (together: "the Parties") entered into a 15-year network sharing agreement (“NSA”), which was approved by the Antitrust Commissioner, subject to certain conditions, and by the Ministry of Communications. Pursuant to the NSA, the Parties created a 50-50 limited partnership - P.H.I. Networks (2015) Limited Partnership (hereinafter "PHI"), which operates and develops a radio access network shared by the Parties, starting with a pooling of the Parties radio access network infrastructures creating a single shared pooled radio access network (the "Shared Network"). The Parties also established a 50-50 company limited by shares under the name Net 4 P.H.I Ltd., to be the general partner of the limited partnership. In February 2016, HOT Mobile exercised its option under the NSA to advance the payment date of a onetime amount of NIS 250 million ("Lump Sum"), which was received by the Group in 2016. Therefore in accordance the NSA from April 2016 onward (i) each party bears half of the expenditures relating to the Shared Network, and (ii) the bearing of the operating costs of the Shared Network is according to a pre-determined mechanism, according to which one half of the operating costs is shared equally by the Parties, and one half is divided between the Parties according to the relative volume of traffic consumption of each party in the Shared Network (the "Capex-Opex Mechanism"). The Lump Sum is treated by the Group as payments for rights of use of the Group's network and therefore recognized as deferred revenue which is amortized to revenues in the income statement over a period of eight years, which is determined to be the shorter of the expected period of the arrangement or the expected life of the related assets, see note 22(a). The NSA term will be automatically extended for consecutive terms of five years each, unless either party provided the other party with prior notice of at least two years prior to the commencement of the respective extended term. At any time after the eighth anniversary of the NSA's effective date (i.e. following April 2023), either party may provide the other party with two years termination notice, and terminate the NSA, without cause, effective as of the end of the said two-year period. On the expiry of the NSA, other than following a material breach, the Parties shall divide the network between themselves according to a mechanism provided by the NSA, based on the Parties then-respective interests in PHI, with priority that each party shall first receive its own assets. The Company provided a guarantee to PHI's debt in an amount of NIS 50 million. See also note 2(c)(2). |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
PROPERTY AND EQUIPMENT | NOTE 10 - PROPERTY AND EQUIPMENT Communication network Computers and information systems Optic fibers and related assets Subscribers equipment and installations Property, leasehold improvements, furniture and equipment Total New Israeli Shekels in millions Cost Balance at January 1, 2019 1,619 148 715 280 123 2,885 Share in PHI P&E included as of Jan 1, 2019 171 2 173 Additions in 2019 91 3 146 172 6 418 Disposals in 2019 193 12 1 8 7 221 Balance at December 31, 2019 1,688 141 860 444 122 3,255 Additions in 2020 83 7 168 138 5 401 Disposals in 2020 418 72 9 30 27 556 Balance at December 31, 2020 1,353 76 1,019 552 100 3,100 Additions in 2021 79 26 259 151 11 526 Disposals in 2021 285 17 38 19 359 Balance at December 31, 2021 1,147 85 1,278 665 92 3,267 Accumulated depreciation Balance at January 1, 2019 1,116 104 281 94 79 1,674 Share in PHI P&E included as of Jan 1, 2019 33 1 34 Depreciation in 2019 170 13 45 99 9 336 Disposals in 2019 192 11 1 8 7 219 Balance at December 31, 2019 1,127 107 325 185 81 1,825 Depreciation in 2020 147 11 55 117 8 338 Disposals in 2020 421 71 10 28 28 558 Balance at December 31, 2020 853 47 370 274 61 1,605 Depreciation in 2021 129 12 75 151 9 376 Disposals in 2021 285 17 37 19 358 Balance at December 31, 2021 697 42 445 388 51 1,623 Carrying amounts, net At December 31, 2019 561 34 535 259 41 1,430 At December 31, 2020 500 29 649 278 39 1,495 At December 31, 2021 450 43 833 277 41 1,644 For depreciation and amortization presentation in the statement of income see note 22. New Israeli Shekels in millions Year ended December 31, 2019 2020 2021 Cost additions include capitalization of salary and employee related expenses 39 41 50 |
INTANGIBLE AND OTHER ASSETS
INTANGIBLE AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE AND OTHER ASSETS | NOTE 11 - INTANGIBLE AND OTHER ASSETS Intangible assets with finite economic useful lives: Licenses Costs of obtaining contracts with customers Customer relationships and other Computer software (1) Total New Israeli Shekels in millions Cost At January 1, 2019 2,123 175 279 492 3,069 Share in PHI's accounts included as of Jan 1, 2019 5 5 Additions in 2019 95 6 59 160 Disposals in 2019 61 61 At December 31, 2019 2,123 270 285 495 3,173 Additions in 2020 30 115 49 194 Disposals in 2020 137 137 At December 31, 2020 2,153 385 285 407 3,230 Additions in 2021 99 55 154 Disposals in 2021 3 277 82 362 At December 31, 2021 2,150 484 8 380 3,022 Accumulated amortization At January 1, 2019 1,852 62 273 265 2,452 Share in PHI's accounts included as of Jan 1, 2019 2 2 Amortization in 2019 73 79 2 87 241 Disposals in 2019 60 60 At December 31, 2019 1,925 141 275 294 2,635 Amortization in 2020 27 97 3 84 211 Disposals in 2020 137 137 At December 31, 2020 1,952 238 278 241 2,709 Amortization in 2021 18 103 1 81 203 Disposals in 2021 3 277 82 362 At December 31, 2021 1,967 341 2 240 2,550 Carrying amounts, net At December 31, 2019 198 129 10 201 538 At December 31, 2020 201 147 7 166 521 At December 31, 2021 183 143 6 140 472 New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions (1) Cost additions include capitalization of salary and employee related expenses 57 44 41 See notes 2(f)(1) and 4(1) with respect to change in accounting estimate of the useful life of the cellular license. For depreciation and amortization in the statement of income see note 22. |
DEFERRED EXPENSES - RIGHT OF US
DEFERRED EXPENSES - RIGHT OF USE | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of deferred expenses - right of use [Abstract] | |
DEFERRED EXPENSES - RIGHT OF USE | NOTE 12 - DEFERRED EXPENSES – RIGHT OF USE New Israeli Shekels in millions Cost Balance at January 1, 2019 736 Share in PHI's accounts included as of Jan 1, 2019 (169 ) Additional payments in 2019 51 Balance at December 31, 2019 618 Additional payments in 2020 47 Balance at December 31, 2020 665 Additional payments in 2021 56 Balance at December 31, 2021 721 Accumulated amortization and impairment Balance at January 1, 2019 500 Share in PHI's accounts included as of Jan 1, 2019 (38 ) Amortization in 2019 28 Balance at December 31, 2019 490 Amortization in 2020 31 Balance at December 31, 2020 521 Amortization in 2021 31 Balance at December 31, 2021 552 Carrying amount, net at December 31, 2019 128 Carrying amount, net at December 31, 2020 144 Current 26 Non-current 118 Carrying amount, net at December 31, 2021 169 Current 27 Non-current 142 The amortization and impairment charges are charged to cost of revenues in the statement of income. See also note 2(g) and note 17(4). |
IMPAIRMENT TESTS
IMPAIRMENT TESTS | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of impairment loss and reversal of impairment loss [abstract] | |
IMPAIRMENT TESTS | NOTE 13 - IMPAIRMENT TESTS (1) Annual goodwill impairment tests in the fixed-line segment Goodwill in the fixed-line segment is allocated to a single group of CGUs which constitute all the operations of the fixed-line segment, in an amount of NIS 407 million. For the purpose of the goodwill impairment tests in the fixed-line segment as of December 31, 2019, 2020 and 2021 the recoverable amount was assessed by management with the assistance of an external independent expert (BDO Ziv Haft Consulting & Management Ltd.) based on value-in-use calculations. The value-in-use calculations use pre-tax cash flow projections covering a five-year period. Cash flows beyond the five-year period to be generated from continuing use are extrapolated using estimated growth rates. The terminal growth rate represents the long-term average growth rate of the fixed-line communications services business. The key assumptions used are as follows: As of December 31, 2019 2020 2021 Terminal growth rate 1.0% 1.0% 1.0% After-tax discount rate 8.0% 7.5% 7.0% Pre-tax discount rate 9.6% 9.0% 8.5% The impairment tests in the fixed-line segment as of December 31, 2019, 2020 and 2021 were based on assessments of financial performance and future strategies in light of current and expected market and economic conditions. Trends in the economic and financial environment, competition and regulatory authorities' decisions, or changes in competitors’ behavior in response to the economic environment may affect the estimate of recoverable amounts. As a result of the impairment tests, the Group determined that no goodwill impairment existed as of December 31, 2019, 2020 and 2021. See also note 4(3) and note 2(h). (2) Interim impairment tests of non-financial assets in 2020 The economic slowdown in the markets triggered in March 2020 the identification of indicators for impairment of non-financial assets. In particular, the significant fall in the volume of international travel by the Company's customers has caused a significant decrease in revenues from roaming services, which affected the cellular segment. In addition, the temporary closures of shopping malls and changes in general consumer behavior adversely affected the volume of sales of equipment, which affected the cellular and the fixed-line segments. The Company tested the recoverable amount of the fixed line segment as of March 31, 2020, based on value-in-use calculations. The recoverable amount was assessed by management with the assistance of an external independent expert (BDO Ziv Haft Consulting & Management Ltd.). The value-in-use calculations use pre-tax cash flow projections covering a five-year period. Cash flows beyond the five-year period to be generated from continuing use are extrapolated using estimated growth rates. The terminal growth rate represents the long-term average growth rate of the fixed-line communications services business. The key assumptions used are as follows: March 31, 2020 Terminal growth rate 1.0% After-tax discount rate 8.25% Pre-tax discount rate 9.9% As a result of the impairment test, the Group determined that no impairment existed as of March 31, 2020. F - 56 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 13 - IMPAIRMENT TESTS (2) Interim impairment tests of non-financial assets The Company tested as of March 2020 the impairment of the cellular segment assets with the assistance of an external independent expert (BDO Ziv Haft Consulting & Management Ltd.), using a reasonable approximation of its fair value less costs of selling as its recoverable amount, and determined that no impairment was required. (3) Impairment of certain fixed-line assets in the third quarter of 2021 In addition, the Company recorded, in the third quarter of 2021, a provision for an impairment of fixed-line assets in an amount of NIS 10 million, following a business change in TV services which the Company estimated would likely lead to the churn of certain fixed-line service subscribers. |
OTHER RECEIVABLES AND LIABILITI
OTHER RECEIVABLES AND LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Other Receivables and Liabilities [Abstract] | |
OTHER RECEIVABLES AND LIABILITIES | NOTE 14 - OTHER RECEIVABLES AND LIABILITIES New Israeli Shekels December 31, 2020 2021 In millions Other receivables and prepaid expenses - current Prepaid expenses 38 103 Grant receivable with respect to frequencies tender 36 Other current receivables 8 13 46 152 Deferred revenues and other Deferred revenues from Hot mobile – current and non-current 102 70 Deferred revenues – current 56 58 Other – current 44 50 202 178 The reduction in deferred revenues was mainly due to revenue recognized. Other payables and provisions - current Provisions (mainly legal claims) 13 22 Income tax payable and institutions 39 15 Payables in respect of employees 58 99 Interest payable 17 18 Liability for frequencies 31 127 185 Liabilities and provisions – non-current Non-current provisions for dismantling and restoring sites obligation 21 22 Other non-current liabilities 13 13 Liability for frequencies 30 64 35 |
BORROWINGS AND NOTES PAYABLE
BORROWINGS AND NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [abstract] | |
BORROWINGS AND NOTES PAYABLE | NOTE 15 - BORROWINGS AND NOTES PAYABLE (1) Borrowings and Notes Payable The Group's long term debt as of December 31, 2021 consists of borrowings from leading Israeli commercial banks and notes payable. The Group may, at its discretion, execute an early repayment of the borrowings, subject to certain conditions, including that the Group shall reimburse the lender for losses sustained by it as a result of the early repayment. The reimbursement is mainly based on the difference between the interest rate that the Group would otherwise pay and the current market interest rate on the early repayment date. The notes payable are unsecured, non-convertible and listed for trade on the TASE. The notes payable have been rated ilA+, on a local scale, by Standard & Poor’s Maalot. Composition as of December 31, 2021: Reference to notes Annual interest rate Notes payable series F 15(3) and 15(5) 2.16% fixed Notes payable series G 15(2) and 15(6) 4% fixed Notes payable series H 15(2) 2.08% fixed Borrowing P (received in 2017) 2.38% fixed Borrowing Q (received in 2017) 2.5% fixed Borrowing R (received in 2021) 15(4) 2.55% fixed See note 6(a)(4) as to the balances and maturities of the borrowings and the notes payable. See note 6(c) as to the fair value of the borrowings and the notes payable. See note 15(7) regarding financial covenants. As of December 31, 2021, and 2020 PHI had a short term credit facility with a leading Israeli commercial bank in the amount of NIS 100 million. The Group's share in this facility is 50%. The facility is restricted for use by PHI only. As of December 31, 2021 and 2020 no funds were drawn from this facility. F - 58 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 15 - BORROWINGS AND NOTES PAYABLE (1) Borrowings and Notes Payable The following table details the changes in financial liabilities, including cash flows from financing activities: Movements in 2021 As at December 31, 2020 Cash flows used in financing activities, net Non cash movements CPI adjustments and other Against lease ROU asset As at December 31, 2021 New Israeli Shekels in millions Non-current borrowings* 138 98 236 Notes payable* 1,457 (17) 1,440 Financial liability at fair value 4 (4) Interest payable 17 (48) 49 18 Lease liability 702 (148) 18 148 720 2,318 (115) 63 148 2,414 * Including current maturities. Movements in 2020 As at December 31, 2019 Cash flows used in financing activities, net Non cash movements CPI adjustments and other Against lease ROU asset As at December 31, 2020 New Israeli Shekels in millions Non-current borrowings* 191 (52) (1) 138 Notes payable* 1,589 (154) 22 1,457 Financial liability at fair value 28 (24) 4 Interest payable 8 (49) 58 17 Lease liability 617 (147) 18 214 702 2,433 (402) 73 214 2,318 * Including current maturities. F - 59 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 15 - BORROWINGS AND NOTES PAYABLE (2) Notes payable issuance In January 2019, the Company issued a new Series G Notes, in a principal amount of NIS 225 million, payable as follows: 4 annual installments of NIS 22.5 million each, payable in June of each of the years 2022 through 2025, NIS 45 million payable in June 2026 and NIS 90 million payable in June 2027. The principal bears fixed annual interest of 4%, payable annually on June 25 of each year. In July 2020, the Company issued in a private placement additional Series G Notes in a principal amount of NIS 300 million, under the same conditions of the original series. In December 2021, the Company issued Series H Notes, in a principal amount of NIS 198.4 million, payable as follows: 5 annual installments, NIS 39.7 million payable in June 2025, NIS 19.8 million payable in June 2026, NIS 39.7 million payable in June of each of the years 2028 through 2029 and NIS 59.5 million payable in June 2030. The principal bears fixed annual interest of 2.08%, payable annually on June 25 of each year. Regarding exercise of option warrants which are exercisable for Series G Notes see note 15(6). (3) Early redemption of Notes payable In July 2020, the Company executed a partial early redemption of Series F Notes in a total principal amount of NIS 305 million. The total amount paid was NIS 313 million. The early redemption resulted in additional finance costs of NIS 7 million. (4) New borrowings received Borrowing R: In December 2021, the Company received a long-term loan from a commercial bank in the principal amount of NIS 150 million. The borrowing bears unlinked interest at the rate of 2.55% per annum and will be paid in 5 annual installments, NIS 30 million payable in June 2025, NIS 15 million payable in June 2026, NIS 30 million payable in June of each of the years 2028 through 2029 and NIS 45 million payable in June 2030. The principal bears fixed annual interest payable on June 30 and December 31 of each year. (5) Notes payable issuance commitments According to agreements the Company entered into in December 2017 and January 2018, the Company issued in December 2019, in a framework of a private placement, an aggregate principal amount of NIS 226.75 million of additional Series F Notes to certain Israeli institutional investors. (6) Private placement of option warrants In April 2019, the Company issued in a private placement two series of untradeable option warrants that were exercisable for the Company's Series G Notes. The exercise period of the first series was between July 1, 2019 and May 31, 2020 and of the second series was between July 1, 2020 and May 31, 2021. The exercise price was NIS 88 for each Series G notes principal amount of NIS 100. The Series G Notes that were allotted upon the exercise of an option warrant were identical in all their rights to the Company's Series G Notes immediately upon their allotment, and are entitled to any payment of interest or other benefit, the effective date of which is due after the allotment date. F - 60 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 15 - BORROWINGS AND NOTES PAYABLE (6) Private placement of option warrants The Notes that were allotted as a result of the exercise of option warrants were registered on the TASE. The total amount received in 2019 by the Company for both series on the allotment date of the option warrants was NIS 37 million. In 2019, 2020 and 2021, following partial exercises of option warrants which are exercisable for Series G Notes, the Company issued Series G Notes in a total principal amount of NIS 125 million, NIS 174.3 million and NIS 26.5 million, respectively. As of December 31, 2021 no option warrants are outstanding. (7) Financial covenants Regarding Series F Notes, Series G Notes, Series H Notes and borrowing P, borrowing Q and borrowing R the Company is required to comply with a financial covenant that the ratio of Net Debt to Adjusted EBITDA shall not exceed 5. Compliance will be examined and reported on a quarterly basis. For the purpose of the covenant, Adjusted EBITDA is calculated as the sum total for the last 12 month period, excluding adjustable one-time items. As of December 31, 2021, the ratio of Net Debt to Adjusted EBITDA was 0.8. Additional stipulations mainly include: Shareholders' equity shall not decrease below NIS 400 million and no dividends will be declared if shareholders' equity will be below NIS 650 million regarding Series F notes, borrowing P and borrowing Q. Shareholders' equity shall not decrease below NIS 600 million and no dividends will be declared if shareholders' equity will be below NIS 750 million regarding Series G notes and borrowing R. Shareholders' equity shall not decrease below NIS 700 million and no dividends will be declared if shareholders' equity will be below NIS 850 million regarding Series H notes. The Company shall not create floating liens subject to certain terms. The Company has the right for early redemption under certain conditions. With respect to notes payable series F, series G and series H: the Company shall pay additional annual interest of 0.5% in the case of a two- notch downgrade in the Notes rating and an additional annual interest of 0.25% for each further single-notch downgrade, up to a maximum additional interest of 1%; the Company shall pay additional annual interest of 0.25% during a period in which there is a breach of the financial covenant; debt rating will not decrease below BBB- for a certain period. In any case, the total maximum additional interest for Series F, Series G and Series H, shall not exceed 1.25%, 1% or 1.25%, respectively. The Group was in compliance with the financial covenant and the additional stipulations for the year 2021. |
LIABILITY FOR EMPLOYEE RIGHTS U
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of defined benefit plans [abstract] | |
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT | NOTE 16 - LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT Israeli labor laws and agreements require payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. See also note 2(k). (1) Defined contribution plan The Group had contributed NIS 23 million, NIS 25 million and NIS 24 million for the years 2019, 2020 and 2021 respectively, in accordance with Section 14 of the Israeli Severance Pay Law. See also note 2(k)(i)(1). (2) Defined benefit plan Liability for employee rights upon retirement, net is presented as non-current liability. The amounts recognized in the statement of financial position, in respect of a defined benefit plan (see note 2(k)(i)(2)) and changes during the year in the obligation recognized for post-employment defined benefit plans were as follows: New Israeli Shekels in millions Present value of obligation Fair value of plan assets Total At January 1, 2020 150 ( 107 ) 43 Current service cost 10 10 Interest expense (income) 4 (2 ) 2 Employer contributions (8 ) (8 ) Benefits paid (8 ) 4 (4 ) Remeasurements: Experience changes (2 ) (2 ) Return on plan assets 1 1 At December 31, 2020 154 ( 112 ) 42 Current service cost 14 14 Interest expense (income) 3 (2 ) 1 Employer contributions (8 ) (8 ) Benefits paid (16 ) 10 (6 ) Remeasurements: Experience changes 8 8 Return on plan assets (16 ) (16 ) At December 31, 2021 163 ( 128 ) 35 Remeasurements are recognized in the statement of comprehensive income. The expected contribution to the defined benefit plan during the year ending December 31, 2022 is approximately NIS 7 million. F - 62 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 16 - LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT (2) Defined benefit plan The principal actuarial assumptions used were as follows: December 31 2020 2021 Interest rate weighted average 2.12 % 3.21 % Inflation rate weighted average 0.97 % 2.41 % Expected turnover rate 9%-56 % 9%-70 % Future salary increases 1%-6 % 1%-6 % The sensitivity of the defined benefit obligation to changes in the principal assumptions is: December 31, 2021 NIS in millions Increase of 10% of the assumption Decrease of 10% of the assumption Interest rate (0.3 ) 0.5 Expected turnover rate 0.1 (0.2 ) Future salary increases 0.4 (0.4 ) The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method has been applied as when calculating the pension liability recognized within the statement of financial position. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period. The defined benefit plan exposes the Group to a number of risks, the most significant are asset volatility, and a risk that salary increases will be higher than expected in the actuarial calculations. The assets are invested in provident funds, managed by managing companies and are subject to laws and regulations, and supervision (including investment portfolio) of the Capital Markets, Insurance and Saving Division of the Israeli Ministry of Finance. Expected maturity analysis of undiscounted defined benefits as at December 31, 2021: NIS in millions 2022 25 2023 19 2024 16 2025 and 2026 19 2027 and thereafter 96 175 |
COMMITMENTS AND TRANSACTIONS
COMMITMENTS AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of commitments [Abstract] | |
COMMITMENTS | NOTE 17 - COMMITMENTS AND TRANSACTIONS (1) Results of Frequencies Tender and frequency fees In August 2020, the Ministry of Communications ("MoC") informed the Company of the results of the frequencies tender published by the MoC and the award of 10 MHz in the 700 MHz frequency band, 20 MHz in the 2600 MHz frequency band and 100 MHz in the 3500 MHz frequency band to the Company and HOT Mobile Ltd. ("HOT Mobile"), at a total price of NIS 62.38 million which shall be paid equally by the Company and HOT Mobile in September 2022. The frequencies were received in September 2020, and as a result, the Company recognized in 2020 an intangible asset at a discounted amount of NIS 30 million against other non-current liabilities. As of December 31, 2021 the liability is presented in current liabilities. The tender documents entitled the Company to a grant of NIS 37 million for deployment of its 5G network, subject to the approval of the MoC. In October 2021 the Company received a letter from the MOC confirming that the Company has met the criteria entitling it to the grant. The grant shall be received in accordance with the schedule set out in the license and after the Company has paid the 5G license fee, expected in 2022. Since the MOC has confirmed entitlement to the grant and the reception of the grant is subject only to the Company's payment of the 5G license fee, which is under the Company's control, the grant was recognized in its entirety under current receivables against a reduction in property and equipment in its present value amount of NIS 36 million. Under the Telegraph Regulations the Company is committed to pay an annual fixed fee for each frequency used. Following the above mentioned tender completion, the Telegraph Regulations were amended, reducing the frequency fees for existing frequencies, subject to certain conditions, and establishing fees for the new frequencies received. Under the above Regulations should the Company choose to return a frequency, such payment would no longer due. For the years 2019, 2020 and 2021 the Company recorded frequency fee expenses in a total amount of approximately NIS 79 million, NIS 75 million and NIS 66 million, respectively. The total amount of frequency fees of both the Company and Hot Mobile under the regulations are divided between the Company and Hot Mobile, through PHI, according to the OPEX-CAPEX mechanism (see also note 9). (2) At December 31, 2021, the Group is committed to acquire property and equipment and software elements for (3) The Company entered into a non-exclusive agreement with Apple Distribution International, effective April 1, 2021, F - 64 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 17 - COMMITMENTS AND TRANSACTIONS (4) Right of Use (ROU) The Group signed long-term agreements with service providers to receive indefeasible Rights of Use (ROU) of international capacities through submarine infrastructures (see note 12), most extendable until 2030. As of December 31, 2021, the Group is committed to pay for capacities over the following years an amount of NIS 84 million (excluding maintenance fees) as follows: New Israeli Shekels in millions 2022 60 2023 11 2024 11 2025 2 84 In addition, under the terms of the ROU agreements, as of December 31, 2021 the Group is committed to pay annual maintenance fees during the usage period. The total aggregated expected maintenance fee for the years 2022 to 2023 is approximately NIS 7 million. Some payments under the ROU agreements are linked to the USD. (5) Liens and guarantees As of December 31, 2021, the Group has provided bank guarantees in respect of licenses (see note 1(c)) in an amount of approximately NIS 30 million, in addition to bank guarantees in favor of other parties in an aggregate amount of approximately NIS 24 million. Therefore, the total bank guarantees provided by the Group as of December 31, 2021 is NIS 54 million. In addition, the Company provided a guarantee to PHI's credit facility in an amount of NIS 50 million. PHI's credit facility is not used as at December 31, 2021 (see also notes 9 and 15). (6) Fiber optics infrastructure The Company signed an agreement in January 2022 to deploy additional fiber-optic infrastructure within Israel to provide to an international telecommunications operator with connections and data transfer services between the Far East/Gulf countries and Europe. (7) Covenants and negative pledge – see note 15(7). (8) See note 9 with respect to network sharing and PHI's commitments. |
COOPERATION AGREEMENT
COOPERATION AGREEMENT | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Cooperation Agreement [Abstract] | |
COOPERATION AGREEMENT | NOTE 18 - COOPERATION AGREEMENT On November 14, 2021, PHI, entered into a framework agreement with Pelephone Communications Ltd. and Cellcom Israel Ltd, to expand the cooperation between the parties in the field of passive infrastructure sharing for cellular sites, which will allow for the unification of existing and new passive infrastructures for cellular sites. A pre-condition for the agreement to enter into force is the receipt of the approvals required by law. There is no certainty that such approvals will be received. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Presentation of leases for lessee [abstract] | |
LEASES | NOTE 19 - LEASES The Group leases the following assets (as a lessee) (see also notes 2(o) and 3): (1) Buildings: The Group also leases call centers, retail stores and service centers. The leases for each site have different lengths and specific terms. The lease agreements are for periods of two to ten years. The Group has options to extend some lease contract periods for up to twenty years (including the original lease periods). Substantially all of the rental payments are linked to the Israeli CPI and a few are linked to the dollar. Some of the extension options include an increase of the lease payment in a range of 2%-10%. (2) Cell sites: (3) Vehicles: The extension options are negotiated by management to provide flexibility in managing the leased asset portfolio and align with the Group's business needs. Management exercised judgment and generally determined that the extension options are reasonably certain to be exercised. Generally, the Group's obligations under its leases are secured by the lessor's title to the leased assets. Set out below are the carrying amounts of right of use assets and lease liabilities recognized and the movements during the year: New Israeli Shekels in millions Lease right of use asset Lease liability Buildings Cell sites Vehicles Balance as at January 1, 2020 222 330 30 617 Amortization charges (38 ) (71 ) (25 ) Accretion of interest 18 Non-cash movements 114 65 36 214 Lease payments (principal) cash outflow (129 ) Lease payments (interest) cash outflow (18 ) Balance as at December 31, 2020 298 324 41 702 Amortization charges (37 ) (68 ) (29 ) Accretion of interest 18 Non-cash movements 52 63 35 148 Lease payments (principal) cash outflow (130 ) Lease payments (interest) cash outflow (18 ) Balance as at December 31, 2021 313 319 47 720 Current 125 Non-Current 313 319 47 595 Balance as at December 31, 2020 298 324 41 702 Current 120 Non-Current 298 324 41 582 See note 6(a)(4) for maturity analysis of undiscounted lease liability. |
LAWSUITS AND LITIGATIONS
LAWSUITS AND LITIGATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of contingent liabilities [abstract] | |
LAWSUITS AND LITIGATIONS | NOTE 20 - LAWSUITS AND LITIGATIONS A. Claims Total provision recorded in the financial statements in respect of all lawsuits against the Group amounted to NIS 20 million at December 31, 2021. Provisions regarding the claims below were recognized when appropriate according to the Company's accounting policy (see note 2(m)(1)). Described below are the main litigation and claims against the Group: 1. Consumer claims This category includes class actions and motions for the recognition of these lawsuits as class actions with respect to, among others, alleged claims regarding charges and claims regarding alleged breach of the Consumer Protection Law, the Privacy Protection Law, the Communications Law (Telecommunications and Broadcasting), license provisions, other legal provisions and engagement agreements with customers. Described hereunder are the outstanding consumer class actions and motions for the recognition of these lawsuits as class actions, detailed according to the amount claimed, as of the date of approval of these financial statements: Claim amount Number of claims Total claims amount (NIS million) Up to NIS 100 million 14 315 NIS 101 - 400 million 5 937 NIS 401 million - NIS 1 billion 1 1,000 Unquantified claims 11 - Total 31 2,252 With respect to five claims mentioned above, the court approved these claims as class actions as follows: 1. On November 12, 2015, a claim and a motion to certify the claim as a class action were filed against Partner. The 2. On November 12, 2015, a claim and a motion to certify the claim as a class action were filed against 012 Smile. F - 67 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 20 - LAWSUITS AND LITIGATIONS A. Claims 1. Consumer claims 3. On April 21, 2016, a claim and a motion to certify the claim as a class action were filed against 012 Smile. The 4. On November 13, 2017, a claim and a motion to certify the claim as a class action were filed against 012 Smile 5. On February 28, 2017, a claim and a motion to certify the claim as a class action were filed against the Company. In addition to all the above mentioned claims the Group is a party to various claims arising in the ordinary course of its operations. F - 68 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 20 - LAWSUITS AND LITIGATIONS B. Contingencies in respect of building and planning procedures Section 197 of the Building and Planning Law states that a property owner has the right to be compensated by a local planning committee for reductions in property value as a result of a new building plan. In January 2006, the Non-ionizing Radiation Law was published, amending the Planning and Building Law so that local Planning and Building committees must require indemnification letters against reduction in property value from the cellular operators requesting building permits. Accordingly, on January 3, 2006, the National Council for Planning and Building published an interim decision conditioning the issuance of building permits for cell site permits by local planning and building councils upon provision of a 100% indemnification undertaking by the cellular operators. This decision shall remain in effect until it is replaced with an amendment to the National Zoning Plan 36. Between January 3, 2006 and December 31, 2021 the Company provided the local authorities with 423 indemnification letters as a pre-condition for obtaining building permits. In case the Company shall be required to make substantial payments under the indemnity letters, it could have an adverse effect on the Company's financial results. According to the company’s management estimation and based on its legal counsel, a provision in the financial statement was not included. The Company assumes that the requirement to provide indemnification letters might require it to change locations of sites to different, less suitable locations and to dismantle some of its sites. These changes in the deployment of the sites might have an adverse effect on the extent, quality and capacity of the network coverage. C. Investigation by the Israeli Tax Authority The Israeli Tax Authority is conducting an investigation that involves document collection and the questioning of among others, several Company employees, both past and current. The investigation is seeking to determine whether there have been violations of the Eilat Free Trade Zone (Tax Exemptions and Reductions) - 1985 Law regarding the sale of cellular phones in the city of Eilat. The Company is fully cooperating with the Israeli Tax Authority. At this stage, the Company is unable to estimate the impact of the investigation on the Company, its results and its condition, if any. |
EQUITY AND SHARE BASED PAYMENTS
EQUITY AND SHARE BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
EQUITY AND SHARE BASED PAYMENTS | NOTE 21 - EQUITY AND SHARE BASED PAYMENTS a. Share capital: The Company's share capital consists of ordinary shares, which are traded on the Tel Aviv Stock Exchange Ltd. under the symbol "PTNR", and are quoted on the NASDAQ Global Select Market™, in the form of American Depositary Shares ("ADSs"), each representing one of the Company’s ordinary shares, under the symbol "PTNR", according to the dual listing regulations. The ADSs are evidenced by American Depositary Receipts ("ADRs"). Citibank, N.A. serves as the Company's depository for ADSs. The holders of ordinary shares are entitled vote in the general meetings of shareholders and to receive dividends as declared. Under the provisions of the Company's licenses (note 1(c)), restrictions are placed on transfer of the Company's shares and placing liens thereon. The restrictions include the requirement of advance written consent of the Minister of Communications be received prior to transfer of 10% or more of the Company's shares to a third party. Nevertheless, under certain licenses granted, directly or indirectly, to the Company, a notice to, the Minister of Communications may be required for holding any means of control in the Company. The Company's license also restricts cross-ownership and cross-control among competing mobile telephone operators, including the ownership of 5% or more of the means of control of both the Company and a competing operator, without the consent of the Minister of Communications, which may limit certain persons from acquiring our shares. See also note 26 (d) with respect of holdings of approved Israeli shareholders in the Company. Through December 31, 2008 the Company purchased its own 4,467,990 shares at the cost of NIS 351 million, and during 2018 the Company purchased its own 6,501,588 shares at the cost of NIS 100 million (upon repurchase were recorded as "treasury shares"). In accordance with the Israeli Companies Law, the treasury shares are considered dormant shares as long as they are held by the Company, and as such they do not bear any rights (including the right to vote in general meetings of shareholders and to receive dividends) until they are transferred to a third party. Some of the treasury shares were offered to employees under a share based compensation plan: Company's Equity Incentive Plan as restricted shares awards ("RSAs") (see (b) below). As of December 31, 2021 a total of 7,337,759 treasury shares remained, of which 1,349,119 were allocated to a trustee on behalf of the employees under the plan. The RSAs offered under the plan are under the control of the Company until vested under the plan and therefore are not presented in the financial statements as outstanding shares until vested. In January 2020, the Company issued 19,330,183 shares of the Company to institutional investors, following a tender under a shelf offering, and by way of a private placement. The total net consideration received was approximately NIS 276 million. The offering expenses totaled NIS 10 million. F - 70 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 21 - EQUITY AND SHARE BASED PAYMENTS b. Share based compensation to employees (1) Description of the Equity Incentive Plan Share options and restricted shares were granted to employees in accordance with Company's 2004 Amended and Restated Equity Incentive Plan (the "Plan"). It includes allocation of restricted shares ("RSAs") to the Company's employees and officers and determines the right to vote at the general meetings of shareholders and the right to receive dividends distributed with respect to the restricted shares. The vesting of the options and the earning of the restricted shares are subject to vesting/restriction periods as well as performance conditions set by the Company's management bodies (The Compensation Committee and The Board of Directors; and in addition, regarding the CEO - The General Assembly of Shareholders). The Company expects that the performance conditions will be met. In accordance with the Plan, under certain conditions, the share options and the restricted shares are entitled to vesting acceleration upon a change in control event. As of December 31, 2021 the company estimated that a future change of control event was probable as a result of the possible transaction referred to in note 26(c). The transaction is subject to MOC approval. The effect of this accounting estimate on the statement of operation was immaterial. The Plan's principal terms of the options include: - Exercise price adjustment: - Cashless exercise: (2) Information in respect of options and restricted shares granted under the Plan: Through December 31, 2021 Number of options Number of RSAs Granted 39,936,212 6,727,668 Shares issued upon exercises and vesting (7,022,000 ) (3,633,131 ) Cancelled upon net exercises, expiration and forfeitures (25,979,213 ) (1,746,720 ) Outstanding 6,934,999 1,347,817 Of which(*): Exercisable 2,189,520 201,225 Vest in 2022 2,540,988 640,912 Vest in 2023 1,852,136 424,467 Vest in 2024 352,355 81,213 (*) The vesting schedule takes into account the acceleration of the vesting of certain grants based on a probable future change of control event, see note 21(b)(1) above. As of December 31, 2021 the Company expects to record a total amount of compensation expenses of approximately NIS 20 million during the next three years with respect to options and restricted shares granted through December 31, 2021. F - 71 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 21 - EQUITY AND SHARE BASED PAYMENTS b. Share based compensation to employees (3) Options and RSAs status summary as of December 31, 2019, 2020 and 2021 and the changes therein during the years Year ended December 31, 2019 2020 2021 Number Weighted average exercise price Number Weighted average exercise price Number Weighted average exercise price Share Options: NIS NIS Outstanding at the beginning of the year 9,697,266 28.19 9,020,689 23.62 7,029,423 18.64 Granted during the year 1,232,226 16.21 1,035,635 14.24 3,827,782 15.60 Exercised during the year (70,824 ) 16.62 (296,450 ) 14.71 (3,048,724 ) 17.98 Forfeited during the year (235,150 ) 18.74 (252,547 ) 18.42 (196,000 ) 13.97 Expired during the year (1,602,829 ) 46.64 (2,477,904 ) 34.10 (677,482 ) 24.29 Outstanding at the end of the year 9,020,689 23.62 7,029,423 18.64 6,934,999 16.83 Exercisable at the end of the year 5,623,921 27.11 4,071,714 20.04 2,189,520 19.46 Shares issued during the year due exercises 3,166 46,747 447,222 RSAs: Outstanding at the beginning of the year 1,209,521 1,230,464 1,007,423 Granted during the year 397,476 398,055 820,059 Vested during the year (284,427 ) (534,053 ) (404,025 ) Forfeited during the year (92,106 ) (87,043 ) (75,640 ) Outstanding at the end of the year 1,230,464 1,007,423 1,347,817 Options granted in 2019 Options granted in 2020 Options granted in 2021 Weighted average fair value of options granted using the Black & Scholes option-pricing model – per option (NIS) 3.34 3.71 4.41 The above fair value is estimated on the grant date based on the following weighted average assumptions: Expected volatility 33.52 % 37.24 % 42.31 % Risk-free interest rate 0.57 % 0.21 % 0.18 % Expected life (years) 3 3 2 Dividend yield * * * * Due to the Full Dividend Mechanism the expected dividend yield used in the fair value determination of such options was 0% for the purpose of using the Black & Scholes option-pricing model. The expected volatility is based on a historical volatility, by statistical analysis of the daily share price for periods corresponding the option's expected life. The expected life is expected length of time until expected date of exercising the options, based on historical data on employees' exercise behavior and anticipated future condition. The fair value of RSAs was evaluated based on the stock price on grant date. F - 72 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 21 - EQUITY AND SHARE BASED PAYMENTS b. Share based compensation to employees (4) Information about outstanding options by expiry dates: Share options outstanding as of December 31, 2021 have the following expiry dates and exercise prices: Expire in Number of share options Weighted average exercise price in NIS 2022 1,789,042 19.03 2023 2,366,252 15.44 2024 879,343 18.68 2025 202,124 16.34 2026 641,178 14.36 2027 1,057,060 16.26 6,934,999 16.83 The expiry schedule takes into account the acceleration of the vesting of certain grants based on a probable future change of control event, see note 21(b)(1) above |
INCOME STATEMENT DETAILS
INCOME STATEMENT DETAILS | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
INCOME STATEMENT DETAILS | NOTE 22 - INCOME STATEMENT DETAILS (a) Revenues: The aggregate amount of transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied as of December 31, 2021, in addition to deferred revenues(see note 14), is approximately NIS 204 million (mainly services). Of which the Group expects that approximately 50% will be recognized as revenue during 2022, approximately 20% will be recognized as revenue during 2023, and the rest in later years. The above excludes contracts that are for periods of one year or less or are billed based on time incurred, as permitted under IFRS 15 the transaction price allocated to these unsatisfied contracts is not disclosed. Disaggregation of revenues: Year ended December 31, 2021 New Israeli Shekels in millions Cellular segment Fixed-line segment Elimination Consolidated Segment revenue - Services to private customers 933 680 (72 ) 1,541 Segment revenue - Services to business customers 766 386 (58 ) 1,094 Segment revenue - Services revenue total 1,699 1,066 (130 ) 2,635 Segment revenue - Equipment 602 126 728 Total Revenues 2,301 1,192 ( 130 ) 3,363 Year ended December 31, 2020 New Israeli Shekels in millions Cellular segment Fixed-line segment Elimination Consolidated Segment revenue - Services to private customers 942 604 (83 ) 1,463 Segment revenue - Services to business customers 721 389 (65 ) 1,045 Segment revenue - Services revenue total 1,663 993 (148 ) 2,508 Segment revenue - Equipment 545 136 681 Total Revenues 2,208 1,129 ( 148 ) 3,189 F - 74 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 22 - INCOME STATEMENT DETAILS Year ended December 31, 2019 New Israeli Shekels in millions Cellular segment Fixed-line segment Elimination Consolidated Segment revenue - Services to private customers 990 513 (87 ) 1,416 Segment revenue - Services to business customers 808 412 (76 ) 1,144 Segment revenue - Services revenue total 1,798 925 (163 ) 2,560 Segment revenue - Equipment 571 103 674 Total Revenues 2,369 1,028 ( 163 ) 3,234 New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Revenues from services are recognized over time. Revenues from equipment are recognized at a point of time, except for revenues from equipment that were recognized over time: revenues from operating leases according to IFRS 16 17 10 8 Revenues from services include revenues from operating leases according to IFRS 16 57 73 78 (b) Cost of revenues New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Transmission, communication and content providers 746 786 800 Cost of equipment and accessories 500 510 550 Depreciation and amortization 603 546 565 Wages, employee benefits expenses and car maintenance 312 282 292 Costs of handling, replacing or repairing equipment 71 66 61 Operating lease, rent and overhead expenses 73 75 75 Network and cable maintenance 99 97 88 Internet infrastructure and service providers 173 157 136 IT support and other operating expenses 57 56 58 Amortization of deferred expenses - rights of use 28 31 31 Other 45 58 76 Total cost of revenues 2,707 2,664 2,732 F - 75 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 22 - INCOME STATEMENT DETAILS (c) Selling and marketing expenses New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Wages, employee benefits expenses and car maintenance 102 81 103 Advertising and marketing 44 42 41 Selling commissions, net 28 31 32 Depreciation and amortization 106 123 132 Operating lease, rent and overhead expenses 4 2 2 Other 17 12 13 Total selling and marketing expenses 301 291 323 (d) General and administrative expenses New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Wages, employee benefits expenses and car maintenance 85 81 93 Professional fees 21 21 23 Credit card and other commissions 13 13 13 Depreciation 14 14 16 Other 16 16 19 Total general and administrative expenses 149 145 164 (e) Employee benefit expenses New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Wages, employee benefits expenses and car maintenance, before capitalization 543 482 526 Less: expenses capitalized (notes 10, 11) (96 ) (85 ) (91 ) Service costs: defined benefit plan (note 16(2)) 12 10 14 Service costs: defined contribution plan (note 16(1)) 23 25 24 Employee share based compensation expenses (note 21(b)) 17 12 15 499 444 488 In December 2021 the Company signed a renewal of collective employment agreement with the employees' representatives and the Histadrut New General Labor Organization (hereinafter - the "Parties") for an additional period of three years, with certain changes, at a cost that is immaterial for the Company. Under the Collective Employment Agreement it was agreed, among others things, on a salary increase budget for 2022, in the amount of 3%, to be differentially allocated. In addition, the Parties agreed to negotiate at a later time a salary increase and participation in the Company's profits mechanism for the years 2023- 2024. In January 2022, a letter from the labor union and the employees' representatives stating various claims was presented to the Company, in light of the possible Transaction by the Offerer (see note 26(c)). The Company responded that the claims presented are only relevant in light of a change of control, which has not yet occurred. |
OTHER INCOME, NET
OTHER INCOME, NET | 12 Months Ended |
Dec. 31, 2021 | |
Other income, net [Abstract] | |
OTHER INCOME, NET | NOTE 23 - OTHER INCOME, NET New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Unwinding of trade receivables 23 21 20 Other income, net 5 9 8 28 30 28 |
FINANCE EXPENSES
FINANCE EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
Finance Expenses | |
FINANCE EXPENSES | NOTE 24 - FINANCE EXPENSES New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Interest expense and other finance expenses 55 59 50 Interest for lease liabilities 20 18 18 Finance expenses 75 77 68 |
INCOME TAX EXPENSES
INCOME TAX EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Expenses | |
INCOME TAX EXPENSES | NOTE 25 - INCOME TAX EXPENSES a. Corporate income tax rates applicable to the Group The Group is taxed according to the regular corporate income tax in Israel. The corporate tax rate in Israel is 23% for the year 2018 and thereafter. F - 77 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 25 - INCOME TAX EXPENSES b. Deferred income taxes Balances of deferred tax asset (liability) in NIS millions are attributable to the following items: Balance of deferred tax asset (liability) in respect of As at January 1, 2019 Charged to the income statement Charged to retained earnings upon implementation of IFRS 16 As at December 31, 2019 Charged to the income statement As at December 31, 2020 Charged to the income statement Charged to the comprehensive income statement As at December 31, 2021 Allowance for credit losses 43 (4 ) 39 (5 ) 34 (5 ) 29 Provisions for employee rights 17 1 18 (5 ) 13 3 (2 ) 14 Depreciable fixed assets and software (19 ) 8 (11 ) 12 1 14 15 Lease - Right-of-use assets - 17 (151 ) (134 ) (18 ) (152 ) (4 ) (156 ) Leases liabilities - (15 ) 157 142 19 161 5 166 Intangibles and deferred expenses (19 ) (21 ) (40 ) (13 ) (53 ) 2 (51 ) Carry forward losses 11 10 21 (1 ) 20 (7 ) 13 Options granted to employees and other 5 1 6 (1 ) 5 (1 ) 4 Total 38 (3 ) 6 41 (12 ) 29 7 (2 ) 34 F - 78 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 25 - INCOME TAX EXPENSES b. Deferred income taxes New Israeli Shekels December 31, 2020 2021 In millions Deferred tax assets Deferred tax assets to be recovered after more than 12 months 188 200 Deferred tax assets to be recovered within 12 months 76 69 264 269 Deferred tax liabilities Deferred tax liabilities to be recovered after more than 12 months 184 184 Deferred tax liabilities to be recovered within 12 months 51 51 235 235 Deferred tax assets, net 29 34 c. Following is a reconciliation of the theoretical tax expense, assuming all income is taxed at the regular tax rates New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Profit before taxes on income, as reported in the income statements 19 27 99 Theoretical tax expense 4 6 23 Increase in tax resulting from disallowable deductions 5 4 4 Negative taxes (taxes on income) in respect of previous years (7 ) 3 (34 )** Temporary differences and utilization of tax losses for which no deferred income tax asset was recognized (2 ) (3 ) (9 )** Income tax expenses (income) * 10 (16 ) * Representing an amount of less than NIS 1 million. ** See also note 25(e)(1) F - 79 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 25 - INCOME TAX EXPENSES d. Taxes on income included in the income statements: New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions For the reported year: Current 3 2 12 Deferred, see (c) above 4 5 15 In respect of previous years: Current (7 ) (4 ) (21 )** Deferred, see (c) above 7 (22 )** * 10 (16 ) * Representing an amount of less than NIS 1 million. ** See also note 25(e)(1) e. Tax assessments: 1) On December 31,2021 the Company signed a settlement agreement with the Israel tax authority ("ITA") in 2) A Group's subsidiary received final income tax assessments through the year ended December 31, 2016. 3) As a general rule, income tax self-assessments filed by two other subsidiaries through the year ended 2016 are, by law, now regarded as final. f. Tax losses carried forward to future years: At December 31, 2020, the Company had carry forward tax losses of approximately NIS 51 million which fully utilized during 2021. As of December 31, 2020 The Company recognized deferred tax asset in respect of the tax losses. |
TRANSACTIONS AND BALANCES WITH
TRANSACTIONS AND BALANCES WITH RELATED PARTIES | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of transactions between related parties [abstract] | |
TRANSACTIONS AND BALANCES WITH RELATED PARTIES | NOTE 26 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES a. Key management compensation Key management personnel are the senior management of the Company and the members of the Company's Board of Directors. New Israeli Shekels Year ended December 31, 2019 2020 2021 Key management compensation expenses comprised In millions Salaries and short-term employee benefits 27 21 25 Long term employment benefits 3 3 6 Employee share-based compensation expenses 12 7 11 42 31 42 New Israeli Shekels December 31, 2020 2021 Statement of financial position items - key management In millions Current liabilities: 9 15 Non-current liabilities: 10 9 b. In the ordinary course of business, key management or their relatives may have engaged with the Company with F - 81 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 26 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES c. Principal shareholder: Approximately 27% of the Company issued and outstanding shares and voting rights are held by a receiver (under Israeli law). On November 12, 2019, the District Court of Tel Aviv the (“Court”) issued a court order the (“Court Order”) under which attorney Ehud Sol (the “Receiver”) was appointed as receiver for 49,862,800 of the Company's shares, representing as of February 1, 2022, approximately 27% of the Company's issued and outstanding share capital and the largest block of shares held by a single shareholder. The shares (the “Pledged Shares”) had been purchased by S.B. Israel Telecom Ltd. (“S.B. Israel Telecom“) from Advent Investments Pte Ltd (“Advent”) in 2013; in connection with the purchase, S.B. Israel Telecom assumed certain debt owed to Advent, and agreed that such debt would be secured by, among other things, the Pledged Shares. S.B. Israel Telecom defaulted on the payment, and on November 11, 2019, consented to enforcement and foreclosure proceedings with respect to the Pledged Shares. The Court Order was issued due to an application filed by Advent (“Advent's Application”) and granted the Receiver substantial rights related to the Pledged Shares, including the right to participate in our shareholders’ meetings, to vote the Pledged Shares, to receive dividends, and any contractual right related to the Pledged Shares, although as noted below, the Receiver may not sell or transfer the Pledged Shares without the Court’s approval. Without derogating from those rights of the Receiver, S.B. Israel Telecom remains the holder of legal title to the Pledged Shares. On December 9, 2019, the Ministry of Communications granted, within its powers, a permit to the Receiver to exercise means of control of the Company by himself. As a result, the Receiver has the power to substantially influence the nomination of the Company’s Board of Directors and to play a preponderant if not decisive role in other decisions taken at meetings of the Company's shareholders. The Receiver is expected to hold such rights until the Pledged Shares are sold or transferred to Advent, actions that would require the Court’s approval according to the Court Order and Advent's Application. On December 14, 2021, the Court granted an approval in principle, effective as of December 15, 2021, for the purchase of the Pledged Shares by a group of parties led by the Phoenix group, Mr. Avi Gabbay and Mr. Shlomo Rodav (jointly, the “Offeror”), on an “as is” basis, in consideration for US $ 300,000,000 (the “Transaction”), as proposed by the Offeror. On January 9, 2022, the Competition Authority granted its approval. The Transaction is still subject to the approval of the Ministry of Communications”. F - 82 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 26 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES d. Holdings of approved Israeli shareholders in the Company: The provisions of the Company's cellular license require, |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share | |
EARNINGS PER SHARE | NOTE 27 - EARNINGS PER SHARE Following are data relating to the profit and the weighted average number of shares that were taken into account in computing the basic and diluted EPS: Year ended December 31, 2019 2020 2021 Profit used for the computation of basic and diluted EPS attributable to the owners of the Company (NIS in millions) 19 17 115 Weighted average number of shares used in computation of basic EPS (in thousands) 162,831 182,331 183,203 Add - net additional shares from assumed exercise of employee stock options and restricted shared (in thousands) 777 857 1,131 Weighted average number of shares used in computation of diluted EPS (in thousands) 163,608 183,188 184,334 Number of options and restricted shares not taken into account in computation of diluted earnings per share, because of their anti-dilutive effect (in thousands) 8,952 6,466 4,470 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of significant accounting policies [Abstract] | |
Basis of preparation of the financial statements | a. Basis of preparation of the financial statements (1) Basis of preparation The consolidated financial statements of the Company ("the financial statements") have been prepared in accordance with International Financial Reporting Standards (IFRSs), as issued by the International Accounting Standards Board (IASB). The principal accounting policies set out below have been consistently applied to all periods presented unless otherwise stated. (2) Use of estimates and judgments The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates, and requires management to exercise its judgment in the process of applying the Group's accounting policies. Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4. |
Foreign currency translations | b. Foreign currency translations (1) Functional and presentation currency The consolidated financial statements are measured and presented in New Israeli Shekels ("NIS"), which is the Group's functional and presentation currency as it is the currency of the primary economic environment in which the Group operates. The amounts presented in NIS millions are rounded to the nearest NIS million. (2) Transactions and balances Foreign currency transactions are translated into NIS using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement in finance costs, net. (3) Convenience translation into U.S. Dollars (USD or $ or dollar) The NIS figures at December 31, 2021 and for the period then ended have been translated into dollars using the representative exchange rate of the dollar at December 31, 2021 (USD 1 = NIS 3.110). The translation was made solely for convenience, is supplementary information, and is distinguished from the financial statements. The translated dollar figures should not be construed as a representation that the Israeli currency amounts actually represent, or could be converted into, dollars. |
Interests in other entities | c. Interests in other entities (1) Subsidiaries The consolidated financial statements include the accounts of the Company and entities controlled by the Company. Control exists when the Company has the power over the investee; has exposure, or rights, to variable returns from involvement in the investee; and has the ability to use its power over the investee to affect its returns. Subsidiaries and partnerships are fully consolidated from the date on which control is transferred to the Company. Inter-company transactions, balances, income and expenses on transactions between Group companies are eliminated in preparing the consolidated financial statements. Non-controlling interests in the results and equity of a subsidiary are shown separately in the consolidated statements of profit or loss, statement of comprehensive income, statement of changes in equity and balance sheet respectively. List of wholly owned Subsidiaries and partnerships: ■ 012 Smile Telecom Ltd. ■ 012 Telecom Ltd. ■ Partner Land-Line Communication Solutions - Limited Partnership ■ Partner Future Communications 2000 Ltd. ("PFC") ■ Get Cell Communication Products Limited Partnership ■ Partner Business Communications Solution - Limited Partnership – not active F - 16 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES c. Interests in other entities (2) Investment in PHI In November 2013, the Company and Hot Mobile Ltd. entered into a network sharing agreement ("NSA") and a right of use agreement. Pursuant to the NSA, the parties created a 50-50 limited partnership - P.H.I. Networks (2015) Limited Partnership ("PHI"), which operates and develops a radio access network shared by both parties, starting with a pooling of both parties' radio access network infrastructures creating a single shared pooled radio access network. PHI began its operations in July 2015, managing the networks. The control over PHI is borne 50-50 by the Company and Hot Mobile, each nominates an equal number of directors (3 directors). Decisions about the relevant activities of PHI require the unanimous consent of the Parties, PHI is considered a joint arrangement controlled by the Company and Hot Mobile (joint control). The activities of the joint arrangement are primarily designed for the provision of output to the Parties. The joint arrangement terms give the Parties rights to the assets, and obligations for the liabilities and expenses of PHI. Furthermore the Parties have rights to substantially all of the economic benefits of PHI's assets. PHI's liabilities are in substance satisfied by the cash flows received from the Parties, as the Parties are substantially the source of cash flows contributing to the continuity of the operations of PHI. The Company accounts for its rights in the assets of PHI and obligations for the liabilities and expenses of PHI as a joint operation, recognizing its share in the assets, liabilities, and expenses of PHI. See also note 9. |
Inventories | d. Inventories Inventories of equipment: cellular handsets and fixed telephones, tablets, laptops, datacards, servers, spare parts, ISP modems, related equipment, accessories and other inventories are stated at the lower of cost or net realizable value. Cost is determined on the "first-in, first-out" basis. The Group determines its allowance for inventory obsolescence and slow moving inventory based upon past experience, expected inventory turnover, inventory ageing and current and future expectations with respect to product offerings. |
Property and equipment | e. Property and equipment Property and equipment are initially stated at cost. Costs are included in the assets' carrying amounts or recognized as separate assets, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance that do not meet the above criteria are charged to the statement of income during the financial period in which they are incurred. Costs include expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labor, any other costs directly attributable to bringing the asset to a working condition for its intended use. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. Property and equipment are presented less accumulated depreciation, and accumulated impairment losses. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (see note 2(i)). The useful economic lives of the Group's non-financial assets are reviewed annually, see note 4(1). F - 17 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES e. Property and equipment Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, as follows: years Communications network: Physical layer and infrastructure 10 - 25 (mainly 15, 10) Other Communication network 3 - 15 (mainly 5, 10, 15) Computers, software and hardware for information systems 3-10 (mainly 3-5) Office furniture and equipment 7-15 Optic fibers and related assets 7-25 (mainly 25) Subscribers equipment and installations 2 - 5 Property 25 Leasehold improvements are depreciated by the straight-line method over the term of the lease (including reasonably assured option periods), or the estimated useful life (between 5 to 10 years) of the improvements, whichever is shorter. |
Licenses and other intangible assets | f. Licenses and other intangible assets (1) Licenses costs and amortization (see also note 1(c)): (a) The licenses to operate cellular communication services (and related frequencies purchase costs) were The costs of the 2G and 3G frequencies allocated to the Company are depreciated up to Dec 31, 2030; see also change in estimate below. The costs of certain 4G frequencies allocated to the Company are depreciated up to Aug 9, 2025. The costs of the other frequencies allocated to the Company following the 5G frequencies tender (see note 17(1)) are depreciated up to Sep 29, 2035 and Sep 29, 2030. (b) Partner Land-line Communication solutions – limited partnership's license for providing fixed-line The other licenses of the Group were received with no significant costs. F - 18 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES f. Licenses and other intangible assets Changes in an accounting estimate: Management has updated an accounting estimate in 2019 as follows: The estimated useful life of the cellular license was determined in the past to end by February 1, 2022. According to applicable law existed in 2019, the Company's cellular license could be extended for additional 6-year periods, subject to the requirements set in the license. The MOC published a tender during 2019 for the award of frequencies, including frequencies for 5G services. Following the tender published, Management made an annual examination of the estimated useful life of the license in the fourth quarter of 2019 with the expectation that conditions necessary to obtain renewal of the license will be satisfied and that the cost of renewal will not be significant. The tender includes 2x30 MHz in the 700 MHz Band, 2x60 MHz in the 2,600MHz band and 300 MHz in the 3,500-3,800 MHz band. The frequencies in the 700 MHz band were offered for a period of 15 years and the rest of the frequencies offered in the tender were offered for a period of 10 years. See also note 17(1) for the results of the frequencies tender. Based on Company's judgment described above, the Company expected in 2019 that the license would be renewed at a high level of certainty: the Company estimated in 2019 that based on its experience and acquaintance with the communications market in Israel, if current conditions continue, there is a high probability that the license will be extended for the additional term of 6 years. Following this examination, the estimated useful life of the 2G and 3G frequencies was re-evaluated for an additional period of 6 years, thereby ending on February 1, 2028. The effect of these changes on the consolidated financial statements were as follows: the amortization expenses of the cellular license were reduced by NIS 15 million in the fourth quarter of 2019, by NIS 60 million in 2020, and by approximately NIS 60 million in 2021. On September 29, 2020 the Company's cellular license was amended (amendment number 107), whereby the Company is entitled to request an extension of the license for additional periods of ten years instead of six years, at the discretion of the MOC and CA. See information with respect to the extension provisions in note 1(c). On receipt of the license amendment, and with respect to the high probability judgment that remained the same, the estimated life of the 2G and 3G frequencies were re-valuated for an additional period of 4 years, thereby ending on February 1, 2032. The effect of these changes on the consolidated financial statements (in addition to the 2019 abovementioned change in estimate) were as follows: the amortization expenses of the cellular license were reduced in the fourth quarter of 2020 by NIS 2 million, and were reduced by an annual amount of approximately NIS 8 million 2021. See also note 4(1). F - 19 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES f. Licenses and other intangible assets Changes in an accounting estimate In June 2021 the Company received a decision of the MOC setting the frequencies allotments that were allocated at the time for the 2G and 3G networks (in the 900, 1800 and 2100 Mhz bands) for usage that will also be allowed with more advanced technologies, until December 31, 2030. Following the decision the Company revised the useful life of the 2G and 3G frequencies to end by December 31, 2030. The change in estimate did not have a material effect on the amortization expenses. The decision also included the termination of the 2G and 3G networks by December 31, 2025. The decision to terminate the 2G and 3G networks by the end of December 31, 2025 did not have a material effect on depreciation expenses. The other licenses are amortized by the straight-line method over their useful lives (see note 1(c)) which exclude any ungranted possible future extensions that are not under the Group's control. The amortization expenses are included in the cost of revenues. (2) Computer software: Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and to bring to use the specified software. Development costs, including employee costs, that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognized as intangible assets when the capitalization criteria under IAS 38 are met. Other development expenditures that do not meet the capitalization criteria, such as software maintenance, are recognized as expenses as incurred. Computer software costs are amortized over their estimated useful lives (3 to 10 years, mainly 3 years) using the straight-line method, see also note 11. (3) Capitalization of costs to obtaining customers contracts: Costs of obtaining contracts with customers are recognized as assets when the costs are incremental to obtaining the contracts, and it is probable that the Group will recover these costs. The assets are amortized to selling and marketing expenses in accordance with the expected service period (mainly over 2-3 years), using the portfolio approach, see also notes 4(1) and 11. Other costs incurred that would arise regardless of whether a contract with a customer was obtained are recognized as an expense when incurred. |
Deferred expenses - Right Of Use (ROU) | g. Deferred expenses - Right Of Use (ROU) Right of use (ROU) of capacity over international fiber optic cables was acquired in a business combination, subsequent additions and right of use in PHI's assets are recognized at cost. The ROU is presented as deferred expenses (current and non-current) and is amortized to cost of revenues on a straight line basis over a period beginning each acquisition of additional ROU in this framework and until 2030 (including expected contractual extension periods). See also notes 12 and 17(4). |
Goodwill | h. Goodwill Goodwill acquired in a business combination represents the excess of the consideration transferred over the net fair value of the identifiable assets acquired, and identifiable liabilities and contingent liabilities assumed. The goodwill has an indefinite useful economic life and is not subject to amortization; rather is measured at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill is allocated to a group of cash-generating units (CGUs) under the fixed line segment that is expected to benefit from the synergies of the combination. The group of CGUs represents the lowest level within the entity which the goodwill is monitored for internal management purposes. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. Any impairment loss would be recognized for the amount by which the carrying amount of goodwill exceeded its recoverable amount. The recoverable amount is the higher of value-in-use and the fair value less costs of disposal. Value-in-use is determined by discounting expected future cash flows using a pre-tax discount rate. Any impairment is recognized immediately as an expense and is not subsequently reversed. See also note 13(1) with respect to impairment tests. |
Impairment tests of non-financial assets with finite useful economic lives | i. Impairment tests of non-financial assets with finite useful economic lives Assets that are subject to depreciation and amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If such indications exist an impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. If this is the case, recoverable amount is determined for the cash-generating unit (CGU) to which the asset belongs. The recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. Value-in-use is determined by discounting expected future cash flows using a pre-tax discount rate. An impairment loss recognized for an asset (or CGU) other than goodwill shall be reversed if, and only if, there has been a change in the estimates used to determine the asset's (or CGU's) recoverable amount since the last impairment loss was recognized. If this is the case, the carrying amount of the asset (or CGU) shall be increased to its recoverable amount. The increased carrying amount of an asset (or CGU) other than goodwill attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in the statement of income. |
Financial instruments | j. Financial instruments The Group applies IFRS 9 and classifies its financial instruments in the following categories: (1) amortized cost (AC), (2) at fair value through profit or loss (FVTPL: Financial liability at fair value (see note 15) and embedded derivatives). The classification depends on the business model for managing the financial instruments and the contractual terms of the cash flows. See note 6(c) as to classification of financial instruments to the categories. At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. Financial assets are classified as current if they are expected to mature within 12 months after the end of the reporting period; otherwise they are classified as non-current. Financial liabilities are included in current liabilities, except for maturities greater than 12 months after the end of the reporting period, which are classified as non-current liabilities. See also note 15. F - 22 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES j. Financial instruments (1) FVTPL category Gains or losses arising from changes in the fair value of embedded derivative financial instruments and financial liability at fair value are presented in the income statement within "finance costs, net" in the period in which they arise. These financial instruments are classified into 3 levels based on their valuation method (see also notes 6(c), 6(a)(2)(c)): Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included within level 1 that are observable for the assets or liabilities, either directly (as prices) or indirectly (derived from prices). Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for financial liability at fair value. (2) Amortized cost category: The Group classifies its financial assets, such as trade receivables, at amortized cost only if both of the following criteria are met: (1) the asset is held within a business model whose objective is to collect the contractual cash flows, and (2) the contractual terms give rise to cash flows that are solely payments of principal and interest. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from trade receivables is included in the income statement under other income, net (see note 23) using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in finance income/expense together with foreign exchange gains and losses. Impairment expenses (credit losses) are presented as separate line item in the statement of profit or loss. Cash and cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, which include short-term bank deposits (up to 3 months from date of deposit) that are not restricted as to withdrawal or use. Short term deposits, are deposits in commercial banks for periods of more than 3 months from date of deposit and less than 12 months from the reporting date. Long term deposits, are deposits in commercial banks for periods of more than 12 months from the reporting date. F - 23 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES j. Financial instruments Financial assets at amortized cost are presented net of impairment losses: The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired based on the expected credit loss model. The assets that are subject to the expected credit loss model are mainly the trade receivables. While cash and cash equivalents, short-term and long-term deposits and contract assets are also subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial. The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables and contract assets the Group applies IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and period of payments and period past due. The expected loss rates are based on the payment profiles of sales, and the corresponding historical credit losses experienced. The historical loss rates are adjusted to reflect current and forward-looking information on factors affecting the ability of the customers to settle the receivables. Trade receivables and contract assets are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan, and results of legal proceedings. Financial liabilities, such as borrowings and notes payable, are initially recognized at fair value, net of transaction costs incurred, and subsequently measured at amortized cost. Any difference between the fair value (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Offsetting: Financial assets and liabilities are offset and the net amount reported in the statement of financial position when the Group has currently a legal enforceable right to offset the recognized amounts and has an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legal enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company or the counterparty. |
Employee benefits | k. Employee benefits (i) Post-employment benefits 1. Defined contribution plan According to Section 14 of the Israeli Severance Pay Law the Group's liability for some of the employee rights upon retirement is covered by regular contributions to various pension schemes. The schemes are generally funded through payments to insurance companies or trustee-administered funds. These plans are defined contribution plans, since the Group pays fixed contributions into a separate and independent entity. The Group has no legal or constructive obligations to pay further contribution if the fund does not hold sufficient assets to pay all employees the benefit relating to employee service in the current or prior periods. The amounts funded as above are not reflected in the statement of financial position. Obligations for contributions to defined contribution pension plans are recognized as an expense in the statement of income when they are due. 2. Defined benefit plan Labor laws, agreements and the practice of the Group, require paying retirement benefits to employees dismissed or retiring in certain other circumstances (except for those described in 1 above), measured by multiplying the years of employment by the last monthly salary of the employee (i.e. one monthly salary for each year of tenure), the obligation of the Group to pay retirement benefits is treated as a defined benefit plan. The liability recognized in the statement of financial position in respect of the defined benefit plan is the present value of the defined benefit obligation at end of the reporting period less the fair values of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. According to IAS 19 employee benefits Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. Interest costs in respect of the defined benefit plan are charged or credited to finance costs. See also note 16. F - 25 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES k. Employee benefits (ii) Termination benefits Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits when it is demonstrably legally or constructively committed to either: terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary redundancy. (iii) Short term employee benefits 1. Vacation and recreation benefits The employees are legally entitled to vacation and recreation benefits, both computed on an annual basis. This entitlement is based on the term of employment. This obligation is treated as a short term benefit under IAS 19. The Group charges a liability and expense due to vacation and recreation pay, based on the benefits that have been accumulated for each employee, on an undiscounted basis. 2. Profit-sharing and bonus plans The Group recognizes a liability and an expense for bonuses based on consideration of individual performance and the Group's overall performance. The Group recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation. 3. Other short term benefits The Group recognized expenses for other short term benefits provided by the collective employment agreement (see also note 22(e)). |
Share based payments | l. Share based payments The Group operates an equity-settled share-based compensation plan to its employees, under which the Group receives services from employees as consideration for equity instruments of the Group. The fair value of the employee services received in exchange for the grant of the equity instruments is recognized as an expense. The total amount to be expensed is determined by reference to the fair value of the equity instruments granted, at the grant date. Non-market vesting conditions (performance conditions) are included among the assumptions used to estimate the number of options expected to vest. The total expense is recognized during the vesting period, which is the period over which all of the specified vesting conditions of the share-based payment are to be satisfied. At the end of each reporting period, the Group revises its estimates of the number of equity instruments that are expected to vest based on the vesting conditions, and recognizes the impact of the revision of original estimates, if any, in the statement of income, with corresponding adjustment to accumulated earnings. See also note 21. |
Provisions | m. Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will require settling the obligation, and the amount has been reliably estimated. See note 14. (1) In the ordinary course of business, the Group is involved in a number of lawsuits and litigations. The costs that (2) The Company is required to incur certain costs in respect of a liability to dismantle and remove assets and to (3) Provisions for equipment warranties include obligations to customers in respect of equipment sold and |
Revenues | n. Revenues The revenue recognition standard IFRS 15, Revenue from Contracts with Customers 1) Identifying the contract with the customer. 2) Identifying separate performance obligations in the contract. 3) Determining the transaction price. 4) Allocating the transaction price to separate performance obligations. 5) Recognizing revenue when the performance obligations are satisfied. (1) Identifying the contract with the customer Two or more contracts entered into at or near the same time with the same customer (or related parties of the customer) are accounted for as a single contract if one or more of the following criteria are met: a. The contracts are negotiated as a package with a single commercial objective; b. The amount of consideration to be paid in one contract depends on the price or performance of the other contract; c. The goods or services promised in the contracts (or some goods or services promised in each of the contracts) are a single performance obligation. Additions of distinct goods or services at their stand-alone sale price are treated as separate contracts. (2) Identifying performance obligations The Group assesses the goods or services promised in the contract with the customer and identifies as performance obligation any promise to transfer to the customer one of the following: (a) Goods or services (or a bundle of goods or services) that are distinct; or (b) A series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. Goods or services are identified as being distinct when the customer can benefit from the good or service on its own or together with other resources that are readily available to the customer and the Group’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. An option that grants the customer the right to purchase additional goods or services constitutes a separate performance obligation in the contract only if the options grant the customer a material right it would not have received without the original contract. The performance obligations are mainly services, equipment and options to purchase additional goods or services that provide a material right to the customer. F - 28 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES n. Revenues (3) Determining the transaction price The transaction price is the amount of consideration that the Group expects to receive for the transfer of the goods or services specified in a contract with the customer, taking into account rebates and discounts, excluding amounts collected on behalf of third parties, such as value added taxes. The transaction price is also adjusted for the effects of the time value of money if the contract includes a significant financing component (such as sales of equipment with non-current credit arrangements, mainly in 36 monthly installments). The Group applies a practical expedient in the standard and does not adjust the transaction price for the effects of a significant financing component if, at contract inception, the Group expects the period between customer payment and the transfer of goods or services to be one year or less. The financing component is recognized in other income-net over the period which is calculated according to the effective interest method. See also note 23 – unwinding of trade receivables and note 7(a). (4) Allocating the transaction price to separate performance obligations In a transaction that constitutes a revenue arrangement with multiple performance obligations, the transaction price is allocated to separate performance obligations based of their relative stand-alone selling prices. A discount is allocated to one or more, but not all, performance obligations in the contract if (a) the Group regularly sells each distinct good or service (or each bundle of distinct goods or services) in the contract on a stand-alone basis, (b) the Group also regularly sells on a stand-alone basis a bundle (or bundles) of some of those distinct goods or services at a discount to the stand-alone selling prices of the goods or services in each bundle; and (c) the discount attributable to each bundle in 'b' above is substantially the same as the discount in the contract and an analysis of the goods or services in each bundle provides observable evidence of the performance obligation (or performance obligations) to which the entire discount in the contract belongs. (5) Satisfaction of performance obligations The Group recognizes revenue when it satisfies performance obligations by transferring control over the goods or services to the customers. Revenues from services and from providing rights to use the Group's assets, (see note 1(b)) (either month-by-month or long term arrangements) are recognized over time, as the services are rendered to the customers, since the customer receives and uses the benefits simultaneously, and provided that all other revenue recognition criteria are met. Revenue from sale of equipment (see note 1(b)) is recognized at a point of time when the control over the equipment is transferred to the customer (mainly upon delivery) and all other revenue recognition criteria are met. F - 29 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES n. Revenues (6) Principal – Agent consideration The Group determines whether it is acting as a principal or as an agent for each performance obligation. The Group is acting as a principal if it controls a promised good or service before they are transferred to a customer. Indicators for acting as a principal include: (1) the Group is primarily responsible for fulfilling the promise to provide the specified good or service, (2) the Group has inventory risk in the specified good or service and (3) the Group has discretion in establishing the price for the specified good or service. On the other hand, the Group is acting as an agent or an intermediary, if these criteria are not met. When the Group is acting as an agent, revenue is recognized in the amount of any fee or commission to which the Group expects to be entitled in exchange for arranging for the other party to provide its goods or services. A Group’s fee or commission might be the net amount of consideration that the Group retains after paying the other party the consideration received in exchange for the goods or services to be provided by that party. The Group determined that it is acting as an agent in respect of certain content services provided by third parties to customers; therefore the revenues recognized from these services are presented on a net basis in the statement of income. (7) Recognition of receivables Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Trade receivables are recognized when the control over the goods or services is transferred to the customer, and at the amount that is unconditional because only the passage of time is required before the payment is due. The Group holds the trade receivables with the objective to collect the contractual cash flows, and the contractual terms give rise to cash flows that are solely payments of principal and interest. Therefore they are subsequently measured at amortized cost using the effective interest method. See also note 7 and also note 6(a)(3) regarding trade receivables credit risk. (8) Recognition of contract assets and contract liabilities A contract asset is a Group’s right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the Group’s future performance). A contract liability is a Group’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer; therefore the Group records contract liabilities for payments received in advance for services, such as transmission services and pre-paid calling cards, as deferred revenues until such related services are provided. Contract assets and contract liabilities arising from the same contract are offset and presented as a single asset or liability. F - 30 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES n. Revenues (9) Other practical expedients implemented: The Group applies IFRS 15 practical expedient to the revenue model to a portfolio of contracts with similar characteristics if the Group reasonably expects that the financial statement effects of applying the model to the individual contracts within the portfolio would not differ materially. The Group applies a practical expedient in the standard and measures progress toward completing satisfaction of a performance obligation and recognizes revenue based on billed amounts if the Group has a right to invoice a customer at an amount that corresponds directly with its performance to date; for which, or where the original expected duration of the contract is one year or less, the Group also applies the practical expedient in the standard and does not disclose the transaction price allocated to unsatisfied, or partially unsatisfied, performance obligations, such as constrained variable consideration. The Group applies in certain circumstances where the customer has a material right to acquire future goods or services and those goods or services are similar to the original goods or services in the contract and are provided in accordance with the same terms of the original contract, a practical alternative to estimating the stand-alone selling price of the customer option, and instead allocates the transaction price to the optional goods or services by reference to the goods or services expected to be provided and the corresponding expected consideration. (10) Capitalization of contract costs The main effect of the Group’s application of IFRS 15 is the accounting treatment for the incremental costs of obtaining contracts with customers, which in accordance with IFRS 15, are recognized as assets under certain conditions, see notes 2(f)(3) and 11. Contract costs that were recognized as assets are presented in the statements of cash flows as part of cash flows used in investing activities. See additional information with respect to revenues in note 22(a). |
Leases | o. Leases The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Group as lessee: According to IFRS 16 Leases, the Group applies a single recognition and measurement approach for all leases, except for low-value assets. The Group recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. The Group applied the following practical expedients: Non-lease components: Discount rate: Low-value leases: The practical expedient for short-term leases is not applied. F - 32 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES o. Leases Group as lessee Lease liabilities measurement: At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include: fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payment that are based on an index or a rate (such as CPI), amounts expected to be payable by the lessee under residual value guarantees, the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option, and lease payments (principal and interest) to be made under reasonably certain extension options. The lease liability is subsequently measured according to the effective interest method, with interest costs recognized in the statement of income as incurred. The amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the underlying asset. The Group is exposed to potential future changes in lease payments based on linkage to the CPI index, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Lease payments are presented in the statement of cash flows under the cash used in financing activities. Lease payments are allocated between principal and finance cost. The finance cost is charged to the statement of income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets measurement: The Group recognizes right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date, estimated dismantling and restoring costs, less any lease incentives received. Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term (including reasonably certain extension periods) on a straight-line basis, and adjusted for any remeasurements of lease liabilities. As follows: Buildings 2 – 15 years Cell sites 2 – 10 years Vehicles 1 – 3 years F - 33 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES o. Leases Group as lessor: The cellular segment and the fixed-line segment also include leasing of telecommunications, audio visual and related devices (see note 1(b)). Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Lease income from operating leases where the Group is a lessor is recognized in income on a straight-line basis over the lease term. The respective leased assets are included in the balance sheet based on their nature. See note 22(a). |
Tax expenses | p. Tax expenses The tax expense for the period comprises current and deferred tax. Tax is recognized in the income statement except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantially enacted as of the end of the reporting period. Management periodically evaluates positions taken with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred income tax is recognized on temporary differences arising between that tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognized if they arise from initial recognition of goodwill. Deferred income tax is determined using the tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax is realized or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. Deferred income tax assets are presented as non-current, see also note 25. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on the same taxable entity where there is an intention to settle the balances on a net basis. |
Share capital | q. Share capital Ordinary shares are classified as equity. Company's shares acquired by the Company (treasury shares) are presented as a reduction of equity, at the consideration paid, including any incremental attributable costs, net of tax. Treasury shares do not have a right to receive dividends or to vote. See also note 21(a). |
Earnings Per Share (EPS) | r. Earnings Per Share (EPS) Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year excluding ordinary shares purchased by the Company and held as treasury shares. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume exercise of all dilutive potential ordinary shares. The instruments that are potential dilutive ordinary shares are equity instruments granted to employees, see note 21(b). A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the company's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options (see also note 27). |
Government grants | s. Government grants Government grants relating to the purchase of assets (see note 17, in respect of the frequencies tender) are presented in the statement of financial position as a deduction to the carrying amount of the asset and they are credited to profit or loss on a straight-line basis over the expected lives of the related assets. |
GENERAL (Tables)
GENERAL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of general [Abstract] | |
Schedule of Group Licenses | The Group operates under the following licenses that were received from the Israeli Ministry of Communications ("MOC"), the Israeli Civil Administration ("CA") and the Israeli Electricity Authority ("EA"): Type of services Area of service License owner Granted by License valid through Guarantees made Dec 31, 2021 (NIS millions) (1) Cellular Israel Partner Communications Company Ltd. MOC Feb, 2032 21** (2) Cellular West Bank Partner Communications Company Ltd. CA Feb, 2032 4 (3) Cellular infrastructure Israel P.H.I Networks (2015) Lp. MOC Aug, 2025 (4) ISP Israel Partner Communications Company Ltd. MOC Mar, 2023 (5) ISP West Bank Partner Communications Company Ltd. CA Mar, 2023 (6) Fixed (incl. ISP, ILD, NTP) Israel Partner Land-line Communication Solutions - Limited Partnership MOC Jan, 2027 2 (7) Fixed (incl. ISP, ILD, NTP) West Bank Partner Land-line Communication Solutions - Limited Partnership CA Jan, 2027 * (8) Electric Energy Israel Partner Communications Company Ltd. EA Oct, 2026 2 * Representing an amount of less than 1 million. ** Including guarantees of NIS 16 million with respect to the frequencies tender, see note 17(1). |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of significant accounting policies [Abstract] | |
Schedule of Depreciation Calculated Using Straight-Line Method | Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, as follows: years Communications network: Physical layer and infrastructure 10 - 25 (mainly 15, 10) Other Communication network 3 - 15 (mainly 5, 10, 15) Computers, software and hardware for information systems 3-10 (mainly 3-5) Office furniture and equipment 7-15 Optic fibers and related assets 7-25 (mainly 25) Subscribers equipment and installations 2 - 5 Property 25 |
CRITICAL ACCOUNTING ESTIMATES_2
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of critical accounting estimates and judgements [Abstract] | |
Schedule of Recoverable Amount of Goodwill for Impairment Tests | The key assumptions used in the December 31, 2021 test were as follows: Terminal growth rate 1 % After-tax discount rate 7 % Pre-tax discount rate 8.5 % |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of operating segments [abstract] | |
Schedule of Segment Information | New Israeli Shekels Year ended December 31, 2021 In millions Cellular segment Fixed-line segment Elimination Consolidated Segment revenue - Services 1,687 948 2,635 Inter-segment revenue - Services 12 118 (130 ) Segment revenue - Equipment 602 126 728 Total revenues 2,301 1,192 (130 ) 3,363 Segment cost of revenues - Services 1,204 952 2,156 Inter-segment cost of revenues- Services 117 13 (130 ) Segment cost of revenues - Equipment 498 78 576 Cost of revenues 1,819 1,043 (130 ) 2,732 Gross profit 482 149 631 Operating expenses (1) 302 194 496 Other income, net 17 11 28 Operating profit (loss) 197 (34 ) 163 Reconciliation to profit for the year: Finance costs, net (64 ) Income tax income 16 Profit for the year 115 Depreciation and amortization included in the segment's operating profit 410 334 744 (1) Operating expenses include selling and marketing expenses, general and administrative expenses and credit losses. F - 40 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 5 - SEGMENT INFORMATION New Israeli Shekels Year ended December 31, 2020 In millions Cellular segment Fixed-line segment Elimination Consolidated Segment revenue - Services 1,647 861 2,508 Inter-segment revenue - Services 16 132 (148 ) Segment revenue - Equipment 545 136 681 Total revenues 2,208 1,129 (148 ) 3,189 Segment cost of revenues - Services 1,272 856 2,128 Inter-segment cost of revenues- Services 131 17 (148 ) Segment cost of revenues - Equipment 451 85 536 Cost of revenues 1,854 958 (148 ) 2,664 Gross profit 354 171 525 Operating expenses (1) 300 159 459 Other income, net 19 11 30 Operating profit 73 23 96 Reconciliation to profit for the year: Finance costs, net (69 ) Income tax expenses (10 ) Profit for the year 17 Depreciation and amortization included in the segment's operating profit 450 264 714 (1) Operating expenses include selling and marketing expenses, general and administrative expenses and credit losses. F - 41 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 5 - SEGMENT INFORMATION New Israeli Shekels Year ended December 31, 2019 In millions Cellular segment Fixed-line segment Elimination Consolidated Segment revenue - Services 1,783 777 2,560 Inter-segment revenue - Services 15 148 (163 ) Segment revenue - Equipment 571 103 674 Total revenues 2,369 1,028 (163 ) 3,234 Segment cost of revenues - Services 1,367 810 2,177 Inter-segment cost of revenues- Services 147 16 (163 ) Segment cost of revenues - Equipment 464 66 530 Cost of revenues 1,978 892 (163 ) 2,707 Gross profit 391 136 527 Operating expenses (1) 334 134 468 Other income, net 20 8 28 Operating profit 77 10 87 Reconciliation to profit for the year: Finance costs, net (68 ) Income tax expense * Profit for the year 19 Depreciation and amortization included in the segment's operating profit 542 209 751 * Representing an amount of less than NIS 1 million. (1) Operating expenses include selling and marketing expenses, general and administrative expenses and credit losses. |
FINANCIAL INSTRUMENTS AND FIN_2
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of Data Regarding US Dollar and Euro Exchange Rate and Israeli CPI | Data regarding the US Dollar and Euro exchange rate and the Israeli CPI: Exchange Exchange rate of one rate of one Israeli Dollar Euro CPI* At December 31: 2021 NIS 3.110 NIS 3.520 229.37 points 2020 NIS 3.215 NIS 3.944 223.11 points 2019 NIS 3.456 NIS 3.878 224.67 points Increase (decrease) during the year: 2021 (3.3)% (10.8)% 2.8% 2020 (7.0)% 1.7% (0.7)% 2019 (7.8)% (9.6)% 0.6% * Index for each reporting period's last month, on the basis of 1993 average = 100 points. |
Schedule of Analysis of Linkage Terms of Financial Instruments Balances | (b) Analysis of linkage terms of financial instruments balances December 31, 2021 In or linked to USD In or linked to other foreign currencies (mainly EURO) NIS unlinked Linked to the CPI Total New Israeli Shekels in millions Current assets Cash and cash equivalents 2 3 303 308 Short term deposits 14 330 344 Trade receivables** 35 3 533 571 Other receivables 46 46 Non- current assets Long term deposits 280 280 Trade receivables 245 245 Total assets 51 6 1,737 - 1,794 Current liabilities Current maturities of notes payable and borrowings 268 268 Trade payables** 127 13 565 705 Other payables 133 133 Current maturities of lease liabilities * 125 125 Non- current liabilities Notes payable 1,224 1,224 Borrowings from banks 184 184 Lease liabilities 2 593 595 Total liabilities 129 13 2,374 718 3,234 * Representing an amount of less than 1 million In or linked to foreign currencies New Israeli Shekels in millions ** Accounts that were set-off under enforceable netting arrangements Trade receivables gross amounts 111 Set-off (73 ) Trade receivables, net 38 Trade payables gross amounts 213 Set-off (73 ) Trade payables, net 140 F - 45 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT a. Financial risk factors 2. Market risks (b) Analysis of linkage terms of financial instruments balances December 31, 2020 In or linked to USD In or linked to other foreign currencies (mainly EURO) NIS unlinked Linked to the CPI Total New Israeli Shekels in millions Current assets Cash and cash equivalents 2 4 370 376 Short term deposits 411 411 Trade receivables* 29 7 524 560 Other receivables 7 7 Non- current assets Long term deposits 155 155 Trade receivables 232 232 Total assets 31 11 1,699 - 1,741 Current liabilities Current maturities of notes payable and borrowings 290 290 Trade payables* 92 11 534 29 666 Other payables 70 70 Current maturities of lease liabilities 1 119 120 Non- current liabilities Notes payable 1,219 1,219 Borrowings from banks 86 86 Financial liability at fair value 4 4 Other non-current liabilities 30 30 Lease liabilities 2 580 582 Total liabilities 95 11 2,233 728 3,067 In or linked to foreign currencies New Israeli Shekels in millions *Accounts that were set-off under enforceable netting arrangements Trade receivables gross amounts 104 Set-off (68 ) Trade receivables, net 36 Trade payables gross amounts 171 Set-off (68 ) Trade payables, net 103 |
Schedule of Details Regarding Derivative Financial Instruments | As of December 31, 2021 there are no notional amounts of financial liability at fair value (see note 15(6)) with respect to Notes series G option. The following table describes the changes in the liability during 2020 and 2021: New Israeli Shekels in millions Balance as at January 1, 2020 28 Finance costs 3 Exercise (27 ) Balance as at December 31, 2020 4 Finance costs * Exercise (4 ) Balance as at December 31, 2021 - |
Schedule of Maturities of Financial Liabilities | Maturities (undiscounted) of financial liabilities as of December 31, 2021: 2022 2023 2024 2025 to 2026 2027 and thereafter Total New Israeli Shekels in millions Principal payments of long term indebtedness: Notes payable series F 128 128 128 384 Notes payable series G 85 85 85 255 341 851 Notes payable series H 60 138 198 Borrowing P 29 29 Borrowing Q 23 23 11 57 Borrowing R 45 105 150 Expected interest payments of long term borrowings and notes payables 49 44 37 57 30 217 Lease liabilities 139 120 96 151 278 784 Trade and other payables 819 819 Total 1,272 400 357 568 892 3,489 |
Schedule of Fair Values of Financial Instruments | Carrying amounts and fair values of financial assets and liabilities, and their categories: December 31, 2020 December 31, 2021 Category Carrying amount Fair value Interest rate used (**) Carrying amount Fair value Interest rate used (**) New Israeli Shekels in millions Assets Cash and cash equivalents AC 376 376 308 308 Short term deposits AC 411 411 344 344 Long term deposits (***) 155 155 0.46 % 280 280 0.49 % Trade receivables AC 792 794 3.60 % 816 818 3.13 % Other receivables (*) AC 7 7 48 48 Other non-current assets (*) 10 10 Liabilities Notes payable series D AC 109 110 Market quote Notes payable series F AC 512 524 Market quote 384 392 Market quote Notes payable series G AC 824 939 Market quote 851 952 Market quote Notes payable series H AC 198 199 Market quote Financial liability at fair value FVTPL Level 3 4 4 Other non-current liabilities (*) AC 30 30 Trade and other payables (*) AC 719 719 819 819 Borrowing P AC 59 60 0.84 % 29 30 0.41 % Borrowing Q AC 79 82 0.93 % 57 58 0.65 % Borrowing R AC 150 150 2.55 % Lease liabilities AC 702 702 2.04 % 720 709 2.07 % (*) The fair value of these financial instruments equals their carrying amounts, as the impact of discounting is not significant. (**) The fair values of the notes payable quoted market prices at the end of the reporting period are within level 1 of the fair value hierarchy. The fair values of other instruments under AC categories were calculated based on observable weighted average of interest rates derived from quoted market prices of the Group's notes payable and bank quotes of rates of similar terms and nature, are within level 2 of the fair value hierarchy. (***) At December 31, 2021, long-term deposits are deposited for periods ending in March 2023 and June 2023. |
TRADE RECEIVABLES (Tables)
TRADE RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other current receivables [abstract] | |
Schedule of Composition of Trade Receivables | New Israeli Shekels December 31, 2020 2021 In millions Trade (current and non-current) 963 965 Deferred interest income (note 2(n)) (23 ) (21 ) Allowance for credit loss (148 ) (128 ) 792 816 Current 560 571 Non – current 232 245 |
Schedule of Allowance for Doubtful Accounts | The changes in the allowance for credit losses for the years ended December 31, 2019, 2020 and 2021 are as follows: New Israeli Shekels Year ended 2019 2020 2021 In millions Balance at beginning of year 188 162 148 Receivables written-off during the year as uncollectible (44 ) (37 ) (29 ) Credit losses 18 23 9 Balance at end of year 162 148 128 |
Schedule of Aging of Gross Trade Receivables | The aging of gross trade receivables and their respective allowance for credit losses as at December 31, 2020 and 2021 were as follows: New Israeli Shekels New Israeli Shekels December 31, 2020 December 31, 2021 In millions In millions Average expected loss rate Gross Allowance Average expected loss rate Gross Allowance Not passed due 5 % 831 45 5 % 861 46 Less than one year 59 % 60 36 62 % 53 33 More than one year 94 % 72 67 96 % 51 49 963 148 965 128 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Classes of current inventories [abstract] | |
Schedule of Inventory | New Israeli Shekels December 31, 2020 2021 In millions Handsets and devices 36 36 Accessories and other 9 13 Spare parts 20 22 ISP modems, routers, servers and related equipment 12 16 77 87 Write-downs recorded 7 5 Cost of inventory recognized as expenses and included in cost of revenues for the year ended 544 581 Cost of inventory used as fixed assets 8 33 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of Property and Equipment | For depreciation and amortization presentation in the statement of income see note 22. New Israeli Shekels in millions Year ended December 31, 2019 2020 2021 Cost additions include capitalization of salary and employee related expenses 39 41 50 |
Schedule of Depreciation Expense | Communication network Computers and information systems Optic fibers and related assets Subscribers equipment and installations Property, leasehold improvements, furniture and equipment Total New Israeli Shekels in millions Cost Balance at January 1, 2019 1,619 148 715 280 123 2,885 Share in PHI P&E included as of Jan 1, 2019 171 2 173 Additions in 2019 91 3 146 172 6 418 Disposals in 2019 193 12 1 8 7 221 Balance at December 31, 2019 1,688 141 860 444 122 3,255 Additions in 2020 83 7 168 138 5 401 Disposals in 2020 418 72 9 30 27 556 Balance at December 31, 2020 1,353 76 1,019 552 100 3,100 Additions in 2021 79 26 259 151 11 526 Disposals in 2021 285 17 38 19 359 Balance at December 31, 2021 1,147 85 1,278 665 92 3,267 Accumulated depreciation Balance at January 1, 2019 1,116 104 281 94 79 1,674 Share in PHI P&E included as of Jan 1, 2019 33 1 34 Depreciation in 2019 170 13 45 99 9 336 Disposals in 2019 192 11 1 8 7 219 Balance at December 31, 2019 1,127 107 325 185 81 1,825 Depreciation in 2020 147 11 55 117 8 338 Disposals in 2020 421 71 10 28 28 558 Balance at December 31, 2020 853 47 370 274 61 1,605 Depreciation in 2021 129 12 75 151 9 376 Disposals in 2021 285 17 37 19 358 Balance at December 31, 2021 697 42 445 388 51 1,623 Carrying amounts, net At December 31, 2019 561 34 535 259 41 1,430 At December 31, 2020 500 29 649 278 39 1,495 At December 31, 2021 450 43 833 277 41 1,644 |
INTANGIBLE AND OTHER ASSETS (Ta
INTANGIBLE AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of Intangible Assets with Finite Economic Useful Lives | New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions (1) Cost additions include capitalization of salary and employee related expenses 57 44 41 |
Schedule of Amortization Expenses and Impairments | Intangible assets with finite economic useful lives: Licenses Costs of obtaining contracts with customers Customer relationships and other Computer software (1) Total New Israeli Shekels in millions Cost At January 1, 2019 2,123 175 279 492 3,069 Share in PHI's accounts included as of Jan 1, 2019 5 5 Additions in 2019 95 6 59 160 Disposals in 2019 61 61 At December 31, 2019 2,123 270 285 495 3,173 Additions in 2020 30 115 49 194 Disposals in 2020 137 137 At December 31, 2020 2,153 385 285 407 3,230 Additions in 2021 99 55 154 Disposals in 2021 3 277 82 362 At December 31, 2021 2,150 484 8 380 3,022 Accumulated amortization At January 1, 2019 1,852 62 273 265 2,452 Share in PHI's accounts included as of Jan 1, 2019 2 2 Amortization in 2019 73 79 2 87 241 Disposals in 2019 60 60 At December 31, 2019 1,925 141 275 294 2,635 Amortization in 2020 27 97 3 84 211 Disposals in 2020 137 137 At December 31, 2020 1,952 238 278 241 2,709 Amortization in 2021 18 103 1 81 203 Disposals in 2021 3 277 82 362 At December 31, 2021 1,967 341 2 240 2,550 Carrying amounts, net At December 31, 2019 198 129 10 201 538 At December 31, 2020 201 147 7 166 521 At December 31, 2021 183 143 6 140 472 |
DEFERRED EXPENSES - RIGHT OF _2
DEFERRED EXPENSES - RIGHT OF USE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of deferred expenses - right of use [Abstract] | |
Schedule of Deferred Expenses - Right of Use | New Israeli Shekels in millions Cost Balance at January 1, 2019 736 Share in PHI's accounts included as of Jan 1, 2019 (169 ) Additional payments in 2019 51 Balance at December 31, 2019 618 Additional payments in 2020 47 Balance at December 31, 2020 665 Additional payments in 2021 56 Balance at December 31, 2021 721 Accumulated amortization and impairment Balance at January 1, 2019 500 Share in PHI's accounts included as of Jan 1, 2019 (38 ) Amortization in 2019 28 Balance at December 31, 2019 490 Amortization in 2020 31 Balance at December 31, 2020 521 Amortization in 2021 31 Balance at December 31, 2021 552 Carrying amount, net at December 31, 2019 128 Carrying amount, net at December 31, 2020 144 Current 26 Non-current 118 Carrying amount, net at December 31, 2021 169 Current 27 Non-current 142 |
IMPAIRMENT TESTS (Tables)
IMPAIRMENT TESTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of impairment loss and reversal of impairment loss [abstract] | |
Schedule of Goodwill Impairment Assumptions | For the purpose of the goodwill impairment tests in the fixed-line segment as of December 31, 2019, 2020 and 2021 the recoverable amount was assessed by management with the assistance of an external independent expert (BDO Ziv Haft Consulting & Management Ltd.) based on value-in-use calculations. The value-in-use calculations use pre-tax cash flow projections covering a five-year period. Cash flows beyond the five-year period to be generated from continuing use are extrapolated using estimated growth rates. The terminal growth rate represents the long-term average growth rate of the fixed-line communications services business. The key assumptions used are as follows: As of December 31, 2019 2020 2021 Terminal growth rate 1.0% 1.0% 1.0% After-tax discount rate 8.0% 7.5% 7.0% Pre-tax discount rate 9.6% 9.0% 8.5% The Company tested the recoverable amount of the fixed line segment as of March 31, 2020, based on value-in-use calculations. The recoverable amount was assessed by management with the assistance of an external independent expert (BDO Ziv Haft Consulting & Management Ltd.). The value-in-use calculations use pre-tax cash flow projections covering a five-year period. Cash flows beyond the five-year period to be generated from continuing use are extrapolated using estimated growth rates. The terminal growth rate represents the long-term average growth rate of the fixed-line communications services business. The key assumptions used are as follows: March 31, 2020 Terminal growth rate 1.0% After-tax discount rate 8.25% Pre-tax discount rate 9.9% |
OTHER RECEIVABLES AND LIABILI_2
OTHER RECEIVABLES AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Other Receivables and Liabilities [Abstract] | |
Schedule of Other Receivables and Liabilities | New Israeli Shekels December 31, 2020 2021 In millions Other receivables and prepaid expenses - current Prepaid expenses 38 103 Grant receivable with respect to frequencies tender 36 Other current receivables 8 13 46 152 Deferred revenues and other Deferred revenues from Hot mobile – current and non-current 102 70 Deferred revenues – current 56 58 Other – current 44 50 202 178 The reduction in deferred revenues was mainly due to revenue recognized. Other payables and provisions - current Provisions (mainly legal claims) 13 22 Income tax payable and institutions 39 15 Payables in respect of employees 58 99 Interest payable 17 18 Liability for frequencies 31 127 185 Liabilities and provisions – non-current Non-current provisions for dismantling and restoring sites obligation 21 22 Other non-current liabilities 13 13 Liability for frequencies 30 64 35 |
BORROWINGS AND NOTES PAYABLE (T
BORROWINGS AND NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [abstract] | |
Schedule of Composition of Borrowings and Notes Payable | Composition as of December 31, 2021: Reference to notes Annual interest rate Notes payable series F 15(3) and 15(5) 2.16% fixed Notes payable series G 15(2) and 15(6) 4% fixed Notes payable series H 15(2) 2.08% fixed Borrowing P (received in 2017) 2.38% fixed Borrowing Q (received in 2017) 2.5% fixed Borrowing R (received in 2021) 15(4) 2.55% fixed |
Schedule of Changes in Debentures, Including Cash Flows From Financing Activities | The following table details the changes in financial liabilities, including cash flows from financing activities: Movements in 2021 As at December 31, 2020 Cash flows used in financing activities, net Non cash movements CPI adjustments and other Against lease ROU asset As at December 31, 2021 New Israeli Shekels in millions Non-current borrowings* 138 98 236 Notes payable* 1,457 (17) 1,440 Financial liability at fair value 4 (4) Interest payable 17 (48) 49 18 Lease liability 702 (148) 18 148 720 2,318 (115) 63 148 2,414 * Including current maturities. Movements in 2020 As at December 31, 2019 Cash flows used in financing activities, net Non cash movements CPI adjustments and other Against lease ROU asset As at December 31, 2020 New Israeli Shekels in millions Non-current borrowings* 191 (52) (1) 138 Notes payable* 1,589 (154) 22 1,457 Financial liability at fair value 28 (24) 4 Interest payable 8 (49) 58 17 Lease liability 617 (147) 18 214 702 2,433 (402) 73 214 2,318 * Including current maturities. |
LIABILITY FOR EMPLOYEE RIGHTS_2
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of defined benefit plans [abstract] | |
Schedule of Obligation Recognized for Post-Employment Defined Benefit Plans | New Israeli Shekels in millions Present value of obligation Fair value of plan assets Total At January 1, 2020 150 ( 107 ) 43 Current service cost 10 10 Interest expense (income) 4 (2 ) 2 Employer contributions (8 ) (8 ) Benefits paid (8 ) 4 (4 ) Remeasurements: Experience changes (2 ) (2 ) Return on plan assets 1 1 At December 31, 2020 154 ( 112 ) 42 Current service cost 14 14 Interest expense (income) 3 (2 ) 1 Employer contributions (8 ) (8 ) Benefits paid (16 ) 10 (6 ) Remeasurements: Experience changes 8 8 Return on plan assets (16 ) (16 ) At December 31, 2021 163 ( 128 ) 35 |
Schedule of Principal Actuarial Assumptions | The principal actuarial assumptions used were as follows: December 31 2020 2021 Interest rate weighted average 2.12 % 3.21 % Inflation rate weighted average 0.97 % 2.41 % Expected turnover rate 9%-56 % 9%-70 % Future salary increases 1%-6 % 1%-6 % |
Schedule of Sensitivity of Defined Benefit Obligation to Changes | The sensitivity of the defined benefit obligation to changes in the principal assumptions is: December 31, 2021 NIS in millions Increase of 10% of the assumption Decrease of 10% of the assumption Interest rate (0.3 ) 0.5 Expected turnover rate 0.1 (0.2 ) Future salary increases 0.4 (0.4 ) |
Schedule of Expected Maturity Analysis of Undiscounted Defined Benefits | Expected maturity analysis of undiscounted defined benefits as at December 31, 2021: NIS in millions 2022 25 2023 19 2024 16 2025 and 2026 19 2027 and thereafter 96 175 |
COMMITMENTS AND TRANSACTIONS (T
COMMITMENTS AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of commitments [Abstract] | |
Schedule of Future Capacities Owed for Right of Use Agreements | The Group signed long-term agreements with service providers to receive indefeasible Rights of Use (ROU) of international capacities through submarine infrastructures (see note 12), most extendable until 2030. As of December 31, 2021, the Group is committed to pay for capacities over the following years an amount of NIS 84 million (excluding maintenance fees) as follows: New Israeli Shekels in millions 2022 60 2023 11 2024 11 2025 2 84 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Presentation of leases for lessee [abstract] | |
Schedule of Carrying Amounts of Right of Use Assets and Lease Liabilities | The extension options are negotiated by management to provide flexibility in managing the leased asset portfolio and align with the Group's business needs. Management exercised judgment and generally determined that the extension options are reasonably certain to be exercised. Generally, the Group's obligations under its leases are secured by the lessor's title to the leased assets. Set out below are the carrying amounts of right of use assets and lease liabilities recognized and the movements during the year: New Israeli Shekels in millions Lease right of use asset Lease liability Buildings Cell sites Vehicles Balance as at January 1, 2020 222 330 30 617 Amortization charges (38 ) (71 ) (25 ) Accretion of interest 18 Non-cash movements 114 65 36 214 Lease payments (principal) cash outflow (129 ) Lease payments (interest) cash outflow (18 ) Balance as at December 31, 2020 298 324 41 702 Amortization charges (37 ) (68 ) (29 ) Accretion of interest 18 Non-cash movements 52 63 35 148 Lease payments (principal) cash outflow (130 ) Lease payments (interest) cash outflow (18 ) Balance as at December 31, 2021 313 319 47 720 Current 125 Non-Current 313 319 47 595 Balance as at December 31, 2020 298 324 41 702 Current 120 Non-Current 298 324 41 582 |
LAWSUITS AND LITIGATIONS (Table
LAWSUITS AND LITIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of contingent liabilities [abstract] | |
Schedule of Claims or Breach of Consumer Protection Law and Customer Agreement Claims | Described hereunder are the outstanding consumer class actions and motions for the recognition of these lawsuits as class actions, detailed according to the amount claimed, as of the date of approval of these financial statements: Claim amount Number of claims Total claims amount (NIS million) Up to NIS 100 million 14 315 NIS 101 - 400 million 5 937 NIS 401 million - NIS 1 billion 1 1,000 Unquantified claims 11 - Total 31 2,252 |
EQUITY AND SHARE BASED PAYMEN_2
EQUITY AND SHARE BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Schedule of Information in Respect of Options and Restricted Shares Granted | (2) Information in respect of options and restricted shares granted under the Plan: Through December 31, 2021 Number of options Number of RSAs Granted 39,936,212 6,727,668 Shares issued upon exercises and vesting (7,022,000 ) (3,633,131 ) Cancelled upon net exercises, expiration and forfeitures (25,979,213 ) (1,746,720 ) Outstanding 6,934,999 1,347,817 Of which(*): Exercisable 2,189,520 201,225 Vest in 2022 2,540,988 640,912 Vest in 2023 1,852,136 424,467 Vest in 2024 352,355 81,213 |
Schedule of Options and RSAs Status Summary | (3) Options and RSAs status summary as of December 31, 2019, 2020 and 2021 and the changes therein during the years Year ended December 31, 2019 2020 2021 Number Weighted average exercise price Number Weighted average exercise price Number Weighted average exercise price Share Options: NIS NIS Outstanding at the beginning of the year 9,697,266 28.19 9,020,689 23.62 7,029,423 18.64 Granted during the year 1,232,226 16.21 1,035,635 14.24 3,827,782 15.60 Exercised during the year (70,824 ) 16.62 (296,450 ) 14.71 (3,048,724 ) 17.98 Forfeited during the year (235,150 ) 18.74 (252,547 ) 18.42 (196,000 ) 13.97 Expired during the year (1,602,829 ) 46.64 (2,477,904 ) 34.10 (677,482 ) 24.29 Outstanding at the end of the year 9,020,689 23.62 7,029,423 18.64 6,934,999 16.83 Exercisable at the end of the year 5,623,921 27.11 4,071,714 20.04 2,189,520 19.46 Shares issued during the year due exercises 3,166 46,747 447,222 RSAs: Outstanding at the beginning of the year 1,209,521 1,230,464 1,007,423 Granted during the year 397,476 398,055 820,059 Vested during the year (284,427 ) (534,053 ) (404,025 ) Forfeited during the year (92,106 ) (87,043 ) (75,640 ) Outstanding at the end of the year 1,230,464 1,007,423 1,347,817 Options granted in 2019 Options granted in 2020 Options granted in 2021 Weighted average fair value of options granted using the Black & Scholes option-pricing model – per option (NIS) 3.34 3.71 4.41 The above fair value is estimated on the grant date based on the following weighted average assumptions: Expected volatility 33.52 % 37.24 % 42.31 % Risk-free interest rate 0.57 % 0.21 % 0.18 % Expected life (years) 3 3 2 Dividend yield * * * * Due to the Full Dividend Mechanism the expected dividend yield used in the fair value determination of such options was 0% for the purpose of using the Black & Scholes option-pricing model. |
Schedule of Information About Outstanding Options by Expiry Dates | Share options outstanding as of December 31, 2021 have the following expiry dates and exercise prices: Expire in Number of share options Weighted average exercise price in NIS 2022 1,789,042 19.03 2023 2,366,252 15.44 2024 879,343 18.68 2025 202,124 16.34 2026 641,178 14.36 2027 1,057,060 16.26 6,934,999 16.83 |
INCOME STATEMENT DETAILS (Table
INCOME STATEMENT DETAILS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Schedule of Disaggregation of Revenues | Disaggregation of revenues: Year ended December 31, 2021 New Israeli Shekels in millions Cellular segment Fixed-line segment Elimination Consolidated Segment revenue - Services to private customers 933 680 (72 ) 1,541 Segment revenue - Services to business customers 766 386 (58 ) 1,094 Segment revenue - Services revenue total 1,699 1,066 (130 ) 2,635 Segment revenue - Equipment 602 126 728 Total Revenues 2,301 1,192 ( 130 ) 3,363 Year ended December 31, 2020 New Israeli Shekels in millions Cellular segment Fixed-line segment Elimination Consolidated Segment revenue - Services to private customers 942 604 (83 ) 1,463 Segment revenue - Services to business customers 721 389 (65 ) 1,045 Segment revenue - Services revenue total 1,663 993 (148 ) 2,508 Segment revenue - Equipment 545 136 681 Total Revenues 2,208 1,129 ( 148 ) 3,189 F - 74 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 22 - INCOME STATEMENT DETAILS Year ended December 31, 2019 New Israeli Shekels in millions Cellular segment Fixed-line segment Elimination Consolidated Segment revenue - Services to private customers 990 513 (87 ) 1,416 Segment revenue - Services to business customers 808 412 (76 ) 1,144 Segment revenue - Services revenue total 1,798 925 (163 ) 2,560 Segment revenue - Equipment 571 103 674 Total Revenues 2,369 1,028 ( 163 ) 3,234 |
Schedule of Revenues from Services are Recognized Over Time | New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Revenues from services are recognized over time. Revenues from equipment are recognized at a point of time, except for revenues from equipment that were recognized over time: revenues from operating leases according to IFRS 16 17 10 8 Revenues from services include revenues from operating leases according to IFRS 16 57 73 78 |
Schedule of Cost of Revenues | (b) Cost of revenues New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Transmission, communication and content providers 746 786 800 Cost of equipment and accessories 500 510 550 Depreciation and amortization 603 546 565 Wages, employee benefits expenses and car maintenance 312 282 292 Costs of handling, replacing or repairing equipment 71 66 61 Operating lease, rent and overhead expenses 73 75 75 Network and cable maintenance 99 97 88 Internet infrastructure and service providers 173 157 136 IT support and other operating expenses 57 56 58 Amortization of deferred expenses - rights of use 28 31 31 Other 45 58 76 Total cost of revenues 2,707 2,664 2,732 |
Schedule of Selling and Marketing Expenses | (c) Selling and marketing expenses New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Wages, employee benefits expenses and car maintenance 102 81 103 Advertising and marketing 44 42 41 Selling commissions, net 28 31 32 Depreciation and amortization 106 123 132 Operating lease, rent and overhead expenses 4 2 2 Other 17 12 13 Total selling and marketing expenses 301 291 323 |
Schedule of General and Administrative Expenses | (d) General and administrative expenses New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Wages, employee benefits expenses and car maintenance 85 81 93 Professional fees 21 21 23 Credit card and other commissions 13 13 13 Depreciation 14 14 16 Other 16 16 19 Total general and administrative expenses 149 145 164 |
Schedule of Employee Benefit Expense | (e) Employee benefit expenses New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Wages, employee benefits expenses and car maintenance, before capitalization 543 482 526 Less: expenses capitalized (notes 10, 11) (96 ) (85 ) (91 ) Service costs: defined benefit plan (note 16(2)) 12 10 14 Service costs: defined contribution plan (note 16(1)) 23 25 24 Employee share based compensation expenses (note 21(b)) 17 12 15 499 444 488 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other income, net [Abstract] | |
Schedule of Other Income Net | New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Unwinding of trade receivables 23 21 20 Other income, net 5 9 8 28 30 28 |
FINANCE EXPENSES (Tables)
FINANCE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Finance Expenses | |
Schedule of Finance Expenses | New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Interest expense and other finance expenses 55 59 50 Interest for lease liabilities 20 18 18 Finance expenses 75 77 68 |
INCOME TAX EXPENSES (Tables)
INCOME TAX EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Expenses | |
Schedule of Balances of Deferred Tax Asset (Liability) | Balances of deferred tax asset (liability) in NIS millions are attributable to the following items: Balance of deferred tax asset (liability) in respect of As at January 1, 2019 Charged to the income statement Charged to retained earnings upon implementation of IFRS 16 As at December 31, 2019 Charged to the income statement As at December 31, 2020 Charged to the income statement Charged to the comprehensive income statement As at December 31, 2021 Allowance for credit losses 43 (4 ) 39 (5 ) 34 (5 ) 29 Provisions for employee rights 17 1 18 (5 ) 13 3 (2 ) 14 Depreciable fixed assets and software (19 ) 8 (11 ) 12 1 14 15 Lease - Right-of-use assets - 17 (151 ) (134 ) (18 ) (152 ) (4 ) (156 ) Leases liabilities - (15 ) 157 142 19 161 5 166 Intangibles and deferred expenses (19 ) (21 ) (40 ) (13 ) (53 ) 2 (51 ) Carry forward losses 11 10 21 (1 ) 20 (7 ) 13 Options granted to employees and other 5 1 6 (1 ) 5 (1 ) 4 Total 38 (3 ) 6 41 (12 ) 29 7 (2 ) 34 F - 78 PARTNER COMMUNICATIONS COMPANY LTD. (An Israeli Corporation) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 25 - INCOME TAX EXPENSES b. Deferred income taxes New Israeli Shekels December 31, 2020 2021 In millions Deferred tax assets Deferred tax assets to be recovered after more than 12 months 188 200 Deferred tax assets to be recovered within 12 months 76 69 264 269 Deferred tax liabilities Deferred tax liabilities to be recovered after more than 12 months 184 184 Deferred tax liabilities to be recovered within 12 months 51 51 235 235 Deferred tax assets, net 29 34 |
Schedule of Reconciliation of Theoretical Tax Expense | c. Following is a reconciliation of the theoretical tax expense, assuming all income is taxed at the regular tax rates New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions Profit before taxes on income, as reported in the income statements 19 27 99 Theoretical tax expense 4 6 23 Increase in tax resulting from disallowable deductions 5 4 4 Negative taxes (taxes on income) in respect of previous years (7 ) 3 (34 )** Temporary differences and utilization of tax losses for which no deferred income tax asset was recognized (2 ) (3 ) (9 )** Income tax expenses (income) * 10 (16 ) * Representing an amount of less than NIS 1 million. ** See also note 25(e)(1) |
Schedule of Taxes on Income Included in Income Statements | d. Taxes on income included in the income statements: New Israeli Shekels Year ended December 31, 2019 2020 2021 In millions For the reported year: Current 3 2 12 Deferred, see (c) above 4 5 15 In respect of previous years: Current (7 ) (4 ) (21 )** Deferred, see (c) above 7 (22 )** * 10 (16 ) * Representing an amount of less than NIS 1 million. ** See also note 25(e)(1) |
TRANSACTIONS AND BALANCES WIT_2
TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of Key Management Compensation | Key management personnel are the senior management of the Company and the members of the Company's Board of Directors. New Israeli Shekels Year ended December 31, 2019 2020 2021 Key management compensation expenses comprised In millions Salaries and short-term employee benefits 27 21 25 Long term employment benefits 3 3 6 Employee share-based compensation expenses 12 7 11 42 31 42 New Israeli Shekels December 31, 2020 2021 Statement of financial position items - key management In millions Current liabilities: 9 15 Non-current liabilities: 10 9 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share | |
Schedule of Data Relating to Net Income (Loss) and Weighted Average Number of Shares | Following are data relating to the profit and the weighted average number of shares that were taken into account in computing the basic and diluted EPS: Year ended December 31, 2019 2020 2021 Profit used for the computation of basic and diluted EPS attributable to the owners of the Company (NIS in millions) 19 17 115 Weighted average number of shares used in computation of basic EPS (in thousands) 162,831 182,331 183,203 Add - net additional shares from assumed exercise of employee stock options and restricted shared (in thousands) 777 857 1,131 Weighted average number of shares used in computation of diluted EPS (in thousands) 163,608 183,188 184,334 Number of options and restricted shares not taken into account in computation of diluted earnings per share, because of their anti-dilutive effect (in thousands) 8,952 6,466 4,470 |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) | 1 Months Ended | ||
Nov. 30, 2021 | Oct. 18, 2021 | Sep. 29, 2020 | |
Disclosure of general [Abstract] | |||
Additional extended license term | 10 years | 5 years | 4 years |
GENERAL (Schedule of Group Lice
GENERAL (Schedule of Group Licenses) (Details) | 12 Months Ended | |
Dec. 31, 2021 | ||
Group License One [Member] | ||
Statement Line Items [Line Items] | ||
Type of services | Cellular | |
Area of service | Israel | |
License owner | Partner Communications Company Ltd. | |
Granted by | MOC | |
License valid through | Feb, 2032 | |
Guarantees made | 21 | [1] |
Group License Two [Member] | ||
Statement Line Items [Line Items] | ||
Type of services | Cellular | |
Area of service | West Bank | |
License owner | Partner Communications Company Ltd. | |
Granted by | CA | |
License valid through | Feb, 2032 | |
Guarantees made | 4 | |
Group License Three [Member] | ||
Statement Line Items [Line Items] | ||
Type of services | Cellular infrastructure | |
Area of service | Israel | |
License owner | P.H.I Networks (2015) Lp. | |
Granted by | MOC | |
License valid through | Aug, 2025 | |
Group License Four [Member] | ||
Statement Line Items [Line Items] | ||
Type of services | ISP | |
Area of service | Israel | |
License owner | Partner Communications Company Ltd. | |
Granted by | MOC | |
License valid through | Mar, 2023 | |
Group License Five [Member] | ||
Statement Line Items [Line Items] | ||
Type of services | ISP | |
Area of service | West Bank | |
License owner | Partner Communications Company Ltd. | |
Granted by | CA | |
License valid through | Mar, 2023 | |
Group License Six [Member] | ||
Statement Line Items [Line Items] | ||
Type of services | Fixed | |
Area of service | Israel | |
License owner | Partner Land-line Communication | |
Granted by | MOC | |
License valid through | Jan, 2027 | |
Guarantees made | 2 | |
Group License Seven [Member] | ||
Statement Line Items [Line Items] | ||
Type of services | Fixed | |
Area of service | West Bank | |
License owner | Partner Land-line Communication | |
Granted by | CA | |
License valid through | Jan, 2027 | |
Guarantees made | * | [2] |
Group License Eight [Member] | ||
Statement Line Items [Line Items] | ||
Type of services | Electric Energy | |
Area of service | Israel | |
License owner | Partner Communications Company Ltd. | |
Granted by | EA | |
License valid through | Oct, 2026 | |
Guarantees made | 2 | |
[1] | Including guarantees of NIS 16 million with respect to the frequencies tender, see note 17(1). | |
[2] | Representing an amount of less than 1 million. |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - ILS (₪) ₪ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2021 | Oct. 18, 2021 | Sep. 29, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | ||||||
Convenience translation into U.S. Dollars | (USD 1 = NIS 3.110) | |||||
Additional extended license term | 10 years | 5 years | 4 years | |||
Effect of the change in accounting estimate on amortization | ₪ 15 | ₪ 60 | ₪ 60 | |||
Expected to reduced in accounting estimate on amortization | ₪ 8 | ₪ 2 | ||||
Bottom of range [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Additional extended license term | 6 years | |||||
Top of range [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Additional extended license term | 10 years | |||||
Vehicles [Member] | Bottom of range [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Amortized period | 1 year | |||||
Vehicles [Member] | Top of range [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Amortized period | 3 years | |||||
Cell sites [member] | Bottom of range [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Amortized period | 2 years | |||||
Cell sites [member] | Top of range [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Amortized period | 10 years | |||||
Customer relationships [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Useful life of intangible assets | 5 to 10 years | |||||
Computer software [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Useful life of intangible assets | 3 to 10 years, mainly 3 years | |||||
Costs to obtain contracts with customers [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Useful life of intangible assets | mainly over 2-3 years | |||||
Buildings [Member] | Bottom of range [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Amortized period | 2 years | |||||
Buildings [Member] | Top of range [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Amortized period | 15 years |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Depreciation Calculated Using Straight-Line Method) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Physical layer and infrastructure [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of assets (in years) | 10 - 25 (mainly 15, 10) |
Communication network [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of assets (in years) | 3 - 15 (mainly 5, 10, 15) |
Computers, software and hardware for information systems [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of assets (in years) | 3-10 (mainly 3-5) |
Office furniture and equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of assets (in years) | 7-15 |
Optic fibers and related assets [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of assets (in years) | 7-25 (mainly 25) |
Subscribers equipment and installations [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of assets (in years) | 2 - 5 |
Property [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of assets (in years) | 25 |
CRITICAL ACCOUNTING ESTIMATES_3
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of critical accounting estimates and judgements [Abstract] | |||
Pre-tax cash flow projections period | five-year | ||
Percentage of headroom of fixed line segment recoverable amount over carrying amount | 52.00% | 37.00% | 42.00% |
Change of after-tax discount rate within range | ± 10% multiplied by the variable 7% (6.3% to 7.7%) | ||
Change of terminal permanent growth rate within range | ± 1% of the variable 1.0% (0% to 2%) |
CRITICAL ACCOUNTING ESTIMATES_4
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Schedule of Non Financial Assets for Impairment Tests) (Details) | Dec. 31, 2021 |
Disclosure of critical accounting estimates and judgements [Abstract] | |
Terminal growth rate | 1.00% |
After-tax discount rate | 7.00% |
Pre-tax discount rate | 8.50% |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Segment Information) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Disclosure of operating segments [line items] | |||||
Total revenues | ₪ 3,363 | ₪ 3,189 | ₪ 3,234 | ||
Cost of revenues | 2,732 | 2,664 | 2,707 | ||
Gross profit | 631 | 525 | 527 | ||
Other income, net | 28 | 30 | 28 | ||
Operating profit | 163 | 96 | 87 | ||
Reconciliation of segments subtotal Adjusted EBITDA to profit for the year | |||||
Finance cost, net | (64) | (69) | (68) | ||
Income tax expenses | 16 | (10) | [1] | ||
Profit for the year | 115 | 17 | 19 | ||
Depreciation and amortization included in the segment's operating profit | 132 | 123 | 106 | ||
Cellular Segment [Member] | |||||
Disclosure of operating segments [line items] | |||||
Segment revenue - Services | 1,687 | 1,647 | 1,783 | ||
Inter-segment revenue - Services | 12 | 16 | 15 | ||
Segment revenue - Equipment | 602 | 545 | 571 | ||
Total revenues | 2,301 | 2,208 | 2,369 | ||
Segment cost of revenues - Services | 1,204 | 1,272 | 1,367 | ||
Inter-segment cost of revenues- Services | 117 | 131 | 147 | ||
Segment cost of revenues - Equipment | 498 | 451 | 464 | ||
Cost of revenues | 1,819 | 1,854 | 1,978 | ||
Gross profit | 482 | 354 | 391 | ||
Operating expenses | [2] | 302 | 300 | 334 | |
Other income, net | 17 | 19 | 20 | ||
Operating profit | 197 | 73 | 77 | ||
Reconciliation of segments subtotal Adjusted EBITDA to profit for the year | |||||
Depreciation and amortization included in the segment's operating profit | 410 | 450 | 542 | ||
Fixed-Line Segment [Member] | |||||
Disclosure of operating segments [line items] | |||||
Segment revenue - Services | 948 | 861 | 777 | ||
Inter-segment revenue - Services | 118 | 132 | 148 | ||
Segment revenue - Equipment | 126 | 136 | 103 | ||
Total revenues | 1,192 | 1,129 | 1,028 | ||
Segment cost of revenues - Services | 952 | 856 | 810 | ||
Inter-segment cost of revenues- Services | 13 | 17 | 16 | ||
Segment cost of revenues - Equipment | 78 | 85 | 66 | ||
Cost of revenues | 1,043 | 958 | 892 | ||
Gross profit | 149 | 171 | 136 | ||
Operating expenses | [2] | 194 | 159 | 134 | |
Other income, net | 11 | 11 | 8 | ||
Operating profit | (34) | 23 | 10 | ||
Reconciliation of segments subtotal Adjusted EBITDA to profit for the year | |||||
Depreciation and amortization included in the segment's operating profit | 334 | 264 | 209 | ||
Elimination [Member] | |||||
Disclosure of operating segments [line items] | |||||
Inter-segment revenue - Services | (130) | (148) | (163) | ||
Total revenues | (130) | (148) | (163) | ||
Inter-segment cost of revenues- Services | (130) | (148) | (163) | ||
Cost of revenues | (130) | (148) | (163) | ||
Consolidated [Member] | |||||
Disclosure of operating segments [line items] | |||||
Segment revenue - Services | 2,635 | 2,508 | 2,560 | ||
Segment revenue - Equipment | 728 | 681 | 674 | ||
Total revenues | 3,363 | 3,189 | 3,234 | ||
Segment cost of revenues - Services | 2,156 | 2,128 | 2,177 | ||
Segment cost of revenues - Equipment | 576 | 536 | 530 | ||
Cost of revenues | 2,732 | 2,664 | 2,707 | ||
Gross profit | 631 | 525 | 527 | ||
Operating expenses | [2] | 496 | 459 | 468 | |
Other income, net | 28 | 30 | 28 | ||
Operating profit | 163 | 96 | 87 | ||
Reconciliation of segments subtotal Adjusted EBITDA to profit for the year | |||||
Depreciation and amortization included in the segment's operating profit | ₪ 744 | ₪ 714 | ₪ 751 | ||
[1] | Representing an amount of less than 1 million. | ||||
[2] | Operating expenses include selling and marketing expenses, general and administrative expenses and credit losses. |
FINANCIAL INSTRUMENTS AND FIN_3
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Narrative) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [line items] | ||
Percentage of annual fixed interest | 0.25% and 0.52% | |
Short term deposits | 3 to 18 months | |
CPI Exchange Rate [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Percentage increase (decrease) in Sensitivity analysis | 2.00% | 2.00% |
Decreased (increased) in equity and profit | ₪ 2 | ₪ 2 |
USD exchange rate [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Percentage increase (decrease) in Sensitivity analysis | 5.00% | 5.00% |
Decreased (increased) in equity and profit | ₪ 3 | ₪ 3 |
FINANCIAL INSTRUMENTS AND FIN_4
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Schedule of Data Regarding Exchange Rate) (Details) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Exchange rate of one Dollar [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Inflation rate | 3.110 | 3.215 | 3.456 | |
Increase (decrease) during the year | (3.30%) | (7.00%) | (7.80%) | |
Exchange rate of one Euro [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Inflation rate | 3.520 | 3.944 | 3.878 | |
Increase (decrease) during the year | (10.80%) | 1.70% | (9.60%) | |
Israeli CPI [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Inflation rate | [1] | 229.37 | 223.11 | 224.67 |
Increase (decrease) during the year | [1] | 2.80% | (0.70%) | 0.60% |
[1] | Index for each reporting period's last month, on the basis of 1993 average = 100 points. |
FINANCIAL INSTRUMENTS AND FIN_5
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Schedule of Analysis of Financial Instruments Balances) (Details) - ILS (₪) ₪ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Current assets | ||||||
Cash and cash equivalents | ₪ 308 | ₪ 376 | ₪ 299 | ₪ 416 | ||
Short term deposits | 344 | 411 | ||||
Trade receivables | 571 | 560 | ||||
Other receivables | 13 | 8 | ||||
Non- current assets | ||||||
Long term deposits | 280 | 155 | ||||
Trade receivables | 245 | 232 | ||||
TOTAL ASSETS | 5,393 | 5,125 | ||||
Current liabilities | ||||||
Current maturities of notes payable and borrowings | 268 | 290 | ||||
Trade payables | 705 | 666 | ||||
Other payables | 185 | 127 | ||||
Current maturities of lease liabilities | 125 | 120 | ||||
Non- current liabilities | ||||||
Notes payable | 1,224 | 1,219 | ||||
Borrowings from banks | 184 | 86 | ||||
Financial liability at fair value | 4 | ₪ 28 | ||||
Other non-current liabilities | 35 | 64 | ||||
Lease liabilities | 595 | 582 | ||||
TOTAL LIABILITIES | 3,534 | 3,402 | ||||
Accounts that were set-off under enforceable netting arrangements | ||||||
Trade receivables, net | 816 | 792 | ||||
In or linked to USD [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 2 | 2 | ||||
Short term deposits | 14 | |||||
Trade receivables | [1] | 35 | 29 | |||
Non- current assets | ||||||
TOTAL ASSETS | 51 | 31 | ||||
Current liabilities | ||||||
Trade payables | [1] | 127 | 92 | |||
Current maturities of lease liabilities | [2] | 1 | ||||
Non- current liabilities | ||||||
Lease liabilities | 2 | 2 | ||||
TOTAL LIABILITIES | 129 | 95 | ||||
In or linked to other foreign currencies (mainly EURO) [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 3 | 4 | ||||
Trade receivables | [1] | 3 | 7 | |||
Non- current assets | ||||||
TOTAL ASSETS | 6 | 11 | ||||
Current liabilities | ||||||
Trade payables | [1] | 13 | 11 | |||
Non- current liabilities | ||||||
TOTAL LIABILITIES | 13 | 11 | ||||
NIS unlinked [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 303 | 370 | ||||
Short term deposits | 330 | 411 | ||||
Trade receivables | [1] | 533 | 524 | |||
Other receivables | 46 | 7 | ||||
Non- current assets | ||||||
Long term deposits | 280 | 155 | ||||
Trade receivables | 245 | 232 | ||||
TOTAL ASSETS | 1,737 | 1,699 | ||||
Current liabilities | ||||||
Current maturities of notes payable and borrowings | 268 | 290 | ||||
Trade payables | [1] | 565 | 534 | |||
Other payables | 133 | 70 | ||||
Non- current liabilities | ||||||
Notes payable | 1,224 | 1,219 | ||||
Borrowings from banks | 184 | 86 | ||||
Financial liability at fair value | 4 | |||||
Other non-current liabilities | 30 | |||||
TOTAL LIABILITIES | 2,374 | 2,233 | ||||
NIS linked to CPI [Member] | ||||||
Non- current assets | ||||||
TOTAL ASSETS | ||||||
Current liabilities | ||||||
Trade payables | [1] | 29 | ||||
Current maturities of lease liabilities | 125 | 119 | ||||
Non- current liabilities | ||||||
Lease liabilities | 593 | 580 | ||||
TOTAL LIABILITIES | 718 | 728 | ||||
Total [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 308 | 376 | ||||
Short term deposits | 344 | 411 | ||||
Trade receivables | [1] | 560 | ||||
Other receivables | 46 | 7 | ||||
Non- current assets | ||||||
Long term deposits | 280 | 155 | ||||
Trade receivables | 245 | 232 | ||||
TOTAL ASSETS | 1,794 | 1,741 | ||||
Current liabilities | ||||||
Current maturities of notes payable and borrowings | 268 | 290 | ||||
Trade payables | [1] | 705 | 666 | |||
Other payables | 133 | 70 | ||||
Current maturities of lease liabilities | 125 | 120 | ||||
Non- current liabilities | ||||||
Notes payable | 1,224 | 1,219 | ||||
Borrowings from banks | 184 | 86 | ||||
Financial liability at fair value | 4 | |||||
Other non-current liabilities | 30 | |||||
Lease liabilities | 595 | 582 | ||||
TOTAL LIABILITIES | 3,234 | 3,067 | ||||
In or linked to foreign currencies [Member] | ||||||
Accounts that were set-off under enforceable netting arrangements | ||||||
Trade receivables gross amounts | [1] | 111 | 104 | |||
Set-off | [1] | (73) | (68) | |||
Trade receivables, net | [1] | 38 | 36 | |||
Trade payables gross amounts | [1] | 213 | 171 | |||
Set-off | [1] | (73) | (68) | |||
Trade payables, net | [1] | ₪ 140 | ₪ 103 | |||
[1] | Accounts that were set-off under enforceable netting arrangements | |||||
[2] | Representing an amount of less than 1 million |
FINANCIAL INSTRUMENTS AND FIN_6
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Schedule of Details Regarding Derivative Financial Instruments) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Statement Line Items [Line Items] | ||||
Balance as at January 1, 2021 | ₪ 4 | |||
Finance costs | 68 | ₪ 77 | ₪ 75 | |
Balance as at December 31, 2021 | 4 | |||
Series G option warrants [Member] | ||||
Statement Line Items [Line Items] | ||||
Balance as at January 1, 2021 | 4 | 28 | ||
Finance costs | [1] | 3 | ||
Exercise | (4) | (27) | ||
Balance as at December 31, 2021 | ₪ 4 | ₪ 28 | ||
[1] | Representing an amount of less than NIS 1 million. |
FINANCIAL INSTRUMENTS AND FIN_7
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Schedule of Maturities of Financial Liabilities) (Details) ₪ in Millions | Dec. 31, 2021ILS (₪) |
Principal payments of long term indebtedness: | |
Total undiscounted | ₪ 3,489 |
Notes payable series F [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 384 |
Notes payable series G [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 851 |
Borrowing P [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 29 |
Borrowing Q [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 57 |
Expected interest payments of long term borrowings and notes payables [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 217 |
Lease liabilities (undiscounted) [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 784 |
Trade and other payables [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 819 |
Notes payable series H [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 198 |
Borrowing R [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 150 |
2022 [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 1,272 |
2022 [Member] | Notes payable series F [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 128 |
2022 [Member] | Notes payable series G [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 85 |
2022 [Member] | Borrowing P [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 29 |
2022 [Member] | Borrowing Q [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 23 |
2022 [Member] | Expected interest payments of long term borrowings and notes payables [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 49 |
2022 [Member] | Lease liabilities (undiscounted) [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 139 |
2022 [Member] | Trade and other payables [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 819 |
2023 [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 400 |
2023 [Member] | Notes payable series F [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 128 |
2023 [Member] | Notes payable series G [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 85 |
2023 [Member] | Borrowing Q [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 23 |
2023 [Member] | Expected interest payments of long term borrowings and notes payables [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 44 |
2023 [Member] | Lease liabilities (undiscounted) [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 120 |
2024 [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 357 |
2024 [Member] | Notes payable series F [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 128 |
2024 [Member] | Notes payable series G [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 85 |
2024 [Member] | Borrowing Q [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 11 |
2024 [Member] | Expected interest payments of long term borrowings and notes payables [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 37 |
2024 [Member] | Lease liabilities (undiscounted) [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 96 |
2025 to 2026 [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 568 |
2025 to 2026 [Member] | Notes payable series G [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 255 |
2025 to 2026 [Member] | Expected interest payments of long term borrowings and notes payables [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 57 |
2025 to 2026 [Member] | Lease liabilities (undiscounted) [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 151 |
2025 to 2026 [Member] | Notes payable series H [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 60 |
2025 to 2026 [Member] | Borrowing R [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 45 |
2027 and thereafter [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 892 |
2027 and thereafter [Member] | Notes payable series G [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 341 |
2027 and thereafter [Member] | Expected interest payments of long term borrowings and notes payables [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 30 |
2027 and thereafter [Member] | Lease liabilities (undiscounted) [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 278 |
2027 and thereafter [Member] | Notes payable series H [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | 138 |
2027 and thereafter [Member] | Borrowing R [Member] | |
Principal payments of long term indebtedness: | |
Total undiscounted | ₪ 105 |
FINANCIAL INSTRUMENTS AND FIN_8
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Schedule of Fair Values of Financial Instruments) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Assets and Liabilities | |||||
Carrying amount, Liabilities | ₪ 2,414 | ₪ 2,318 | ₪ 2,433 | ||
Fair value, Liabilities | ₪ 4 | ₪ 28 | |||
Notes payable series D [Member] | |||||
Assets and Liabilities | |||||
Category | AC | ||||
Carrying amount, Liabilities | ₪ 109 | ||||
Fair value, Liabilities | ₪ 110 | ||||
Interest rate used | [1] | Market quote | |||
Notes payable series F [Member] | |||||
Assets and Liabilities | |||||
Category | AC | AC | |||
Carrying amount, Liabilities | ₪ 384 | ₪ 512 | |||
Fair value, Liabilities | ₪ 392 | ₪ 524 | |||
Interest rate used | [1] | Market quote | Market quote | ||
Notes payable series G [Member] | |||||
Assets and Liabilities | |||||
Category | AC | AC | |||
Carrying amount, Liabilities | ₪ 851 | ₪ 824 | |||
Fair value, Liabilities | ₪ 952 | ₪ 939 | |||
Interest rate used | [1] | Market quote | Market quote | ||
Financial liability at fair value [Member] | |||||
Assets and Liabilities | |||||
Category | FVTPL Level 3 | FVTPL Level 3 | |||
Carrying amount, Liabilities | ₪ 4 | ||||
Fair value, Liabilities | ₪ 4 | ||||
Other non-current liabilities [Member] | |||||
Assets and Liabilities | |||||
Category | AC | AC | [2] | ||
Carrying amount, Liabilities | [2] | ₪ 30 | |||
Fair value, Liabilities | [2] | 30 | |||
Trade and other payables [Member] | |||||
Assets and Liabilities | |||||
Carrying amount, Liabilities | [2] | ₪ 819 | 719 | ||
Fair value, Liabilities | [2] | ₪ 819 | ₪ 719 | ||
Borrowing P [Member] | |||||
Assets and Liabilities | |||||
Category | AC | AC | |||
Carrying amount, Liabilities | ₪ 29 | ₪ 59 | |||
Fair value, Liabilities | ₪ 30 | ₪ 60 | |||
Interest rate used | [1] | 0.41 | 0.84 | ||
Borrowing Q [Member] | |||||
Assets and Liabilities | |||||
Category | AC | AC | |||
Carrying amount, Liabilities | ₪ 57 | ₪ 79 | |||
Fair value, Liabilities | ₪ 58 | ₪ 82 | |||
Interest rate used | [1] | 0.65 | 0.93 | ||
Lease liabilities [Member] | |||||
Assets and Liabilities | |||||
Category | AC | AC | |||
Carrying amount, Liabilities | ₪ 720 | ₪ 702 | |||
Fair value, Liabilities | ₪ 709 | ₪ 702 | |||
Interest rate used | [1] | 2.07 | 2.04 | ||
Notes payable series H [Member] | |||||
Assets and Liabilities | |||||
Category | AC | AC | |||
Carrying amount, Liabilities | ₪ 198 | ||||
Fair value, Liabilities | ₪ 199 | ||||
Interest rate used | [1] | Market quote | |||
Borrowing R [Member] | |||||
Assets and Liabilities | |||||
Category | AC | ||||
Carrying amount, Liabilities | ₪ 150 | ||||
Fair value, Liabilities | ₪ 150 | ||||
Interest rate used | [1] | 2.55 | |||
Cash and cash equivalents [Member] | |||||
Assets and Liabilities | |||||
Category | AC | AC | |||
Carrying amount, Assets | ₪ 308 | ₪ 376 | |||
Fair value, Assets | ₪ 308 | ₪ 376 | |||
Short term deposits [Member] | |||||
Assets and Liabilities | |||||
Category | AC | AC | |||
Carrying amount, Assets | ₪ 344 | ₪ 411 | |||
Fair value, Assets | 344 | 411 | |||
Long term deposits [Member] | |||||
Assets and Liabilities | |||||
Carrying amount, Assets | [3] | 280 | 155 | ||
Fair value, Assets | [3] | ₪ 280 | ₪ 155 | ||
Interest rate used | [3] | 0.49 | 0.46 | [1] | |
Trade receivables [Member] | |||||
Assets and Liabilities | |||||
Category | AC | AC | |||
Carrying amount, Assets | ₪ 816 | ₪ 792 | |||
Fair value, Assets | ₪ 818 | ₪ 794 | |||
Interest rate used | [3] | 3.13 | 3.60 | [1] | |
Other receivables [Member] | |||||
Assets and Liabilities | |||||
Category | [2] | AC | AC | ||
Carrying amount, Assets | ₪ 48 | ₪ 7 | [2] | ||
Fair value, Assets | ₪ 48 | 7 | [2] | ||
Other non-current assets [Member] | |||||
Assets and Liabilities | |||||
Carrying amount, Assets | [2] | 10 | |||
Fair value, Assets | [2] | ₪ 10 | |||
Trade and other payables [Member] | |||||
Assets and Liabilities | |||||
Category | [2] | AC | AC | ||
[1] | The fair values of the notes payable quoted market prices at the end of the reporting period are within level 1 of the fair value hierarchy. The fair values of other instruments under AC categories were calculated based on observable weighted average of interest rates derived from quoted market prices of the Group's notes payable and bank quotes of rates of similar terms and nature, are within level 2 of the fair value hierarchy. | ||||
[2] | The fair value of these financial instruments equals their carrying amounts, as the impact of discounting is not significant. | ||||
[3] | At December 31, 2021, long-term deposits are deposited for periods ending in March 2023 and June 2023. |
TRADE RECEIVABLES (Narrative) (
TRADE RECEIVABLES (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Bottom of range [Member] | ||
Statement Line Items [Line Items] | ||
Interest rate on trade receivables | 2.68% | 2.97% |
Top of range [Member] | ||
Statement Line Items [Line Items] | ||
Interest rate on trade receivables | 3.85% | 5.07% |
TRADE RECEIVABLES (Schedule of
TRADE RECEIVABLES (Schedule of Composition of Trade Receivables) (Details) - ILS (₪) ₪ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other current receivables [abstract] | ||||
Trade (current and non-current) | ₪ 965 | ₪ 963 | ||
Deferred interest income (note 2(n)) | (21) | (23) | ||
Allowance for credit loss | (128) | (148) | ₪ (162) | ₪ (188) |
Trade receivables, net | 816 | 792 | ||
Current | 571 | 560 | ||
Non - current | ₪ 245 | ₪ 232 |
TRADE RECEIVABLES (Schedule o_2
TRADE RECEIVABLES (Schedule of Allowance for Doubtful Accounts) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Trade and other current receivables [abstract] | |||
Balance at beginning of year | ₪ 148 | ₪ 162 | ₪ 188 |
Receivables written-off during the year as uncollectible | (29) | (37) | (44) |
Credit losses | 9 | 23 | 18 |
Balance at end of year | ₪ 128 | ₪ 148 | ₪ 162 |
TRADE RECEIVABLES (Schedule o_3
TRADE RECEIVABLES (Schedule of Aging of Gross Trade Receivables) (Details) - ILS (₪) ₪ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||
Gross | ₪ 965 | ₪ 963 | ||
Allowance | 128 | 148 | ₪ 162 | ₪ 188 |
Not Passed Due [Member] | ||||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||
Gross | 861 | 831 | ||
Allowance | ₪ 46 | ₪ 45 | ||
Average expected loss rate | 5.00% | 5.00% | ||
Less than one year [Member] | ||||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||
Gross | ₪ 53 | ₪ 60 | ||
Allowance | ₪ 33 | ₪ 36 | ||
Average expected loss rate | 62.00% | 59.00% | ||
More than one year [Member] | ||||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||
Gross | ₪ 51 | ₪ 72 | ||
Allowance | ₪ 49 | ₪ 67 | ||
Average expected loss rate | 96.00% | 94.00% |
INVENTORY (Schedule of Inventor
INVENTORY (Schedule of Inventory) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Classes of current inventories [abstract] | ||
Handsets and devices | ₪ 36 | ₪ 36 |
Accessories and other | 13 | 9 |
Spare parts | 22 | 20 |
ISP modems, routers, servers and related equipment | 16 | 12 |
Inventories | 87 | 77 |
Write-downs recorded | 5 | 7 |
Cost of inventory recognized as expenses and included in cost of revenues for the year ended | 581 | 544 |
Cost of inventory used as fixed assets | ₪ 33 | ₪ 8 |
INVESTMENT IN PHI (Narrative) (
INVESTMENT IN PHI (Narrative) (Details) - ILS (₪) ₪ in Millions | Nov. 08, 2013 | Feb. 29, 2016 | Dec. 31, 2021 |
Hot Mobile [Member] | |||
Disclosure of associates [line items] | |||
Period of agreement | 15-year | ||
Options exercised | ₪ 250 | ||
Period of termination notice | two years | ||
P.H.I. Networks [Member] | |||
Disclosure of associates [line items] | |||
Bank guarantee | ₪ 50 |
PROPERTY AND EQUIPMENT (Schedul
PROPERTY AND EQUIPMENT (Schedule of Property and Equipment) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | ₪ 1,495 | ||
Balance | 1,644 | ₪ 1,495 | |
Cost [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 3,100 | 3,255 | ₪ 2,885 |
Share in PHI P&E included as of Jan 1, 2019 | 173 | ||
Additions | 526 | 401 | 418 |
Disposals | 359 | 556 | 221 |
Balance | 3,267 | 3,100 | 3,255 |
Cost [Member] | Communication network [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 1,353 | 1,688 | 1,619 |
Share in PHI P&E included as of Jan 1, 2019 | 171 | ||
Additions | 79 | 83 | 91 |
Disposals | 285 | 418 | 193 |
Balance | 1,147 | 1,353 | 1,688 |
Cost [Member] | Computers, software and hardware for information systems [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 76 | 141 | 148 |
Share in PHI P&E included as of Jan 1, 2019 | 2 | ||
Additions | 26 | 7 | 3 |
Disposals | 17 | 72 | 12 |
Balance | 85 | 76 | 141 |
Cost [Member] | Optic fibers and related assets [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 1,019 | 860 | 715 |
Additions | 259 | 168 | 146 |
Disposals | 9 | 1 | |
Balance | 1,278 | 1,019 | 860 |
Cost [Member] | Subscribers equipment and installations [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 552 | 444 | 280 |
Additions | 151 | 138 | 172 |
Disposals | 38 | 30 | 8 |
Balance | 665 | 552 | 444 |
Cost [Member] | Property, leasehold improvements, furniture and equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 100 | 122 | 123 |
Additions | 11 | 5 | 6 |
Disposals | 19 | 27 | 7 |
Balance | 92 | 100 | 122 |
Carrying amounts, net [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 1,495 | 1,430 | |
Balance | 1,644 | 1,495 | 1,430 |
Carrying amounts, net [Member] | Communication network [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 500 | 561 | |
Balance | 450 | 500 | 561 |
Carrying amounts, net [Member] | Computers, software and hardware for information systems [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 29 | 34 | |
Balance | 43 | 29 | 34 |
Carrying amounts, net [Member] | Optic fibers and related assets [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 649 | 535 | |
Balance | 833 | 649 | 535 |
Carrying amounts, net [Member] | Subscribers equipment and installations [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 278 | 259 | |
Balance | 277 | 278 | 259 |
Carrying amounts, net [Member] | Property, leasehold improvements, furniture and equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 39 | 41 | |
Balance | 41 | 39 | 41 |
Accumulated depreciation [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 1,605 | 1,825 | 1,674 |
Share in PHI P&E included as of Jan 1, 2019 | 34 | ||
Depreciation | 376 | 338 | 336 |
Disposals | 358 | 558 | 219 |
Balance | 1,623 | 1,605 | 1,825 |
Accumulated depreciation [Member] | Communication network [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 853 | 1,127 | 1,116 |
Share in PHI P&E included as of Jan 1, 2019 | 33 | ||
Depreciation | 129 | 147 | 170 |
Disposals | 285 | 421 | 192 |
Balance | 697 | 853 | 1,127 |
Accumulated depreciation [Member] | Computers, software and hardware for information systems [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 47 | 107 | 104 |
Share in PHI P&E included as of Jan 1, 2019 | 1 | ||
Depreciation | 12 | 11 | 13 |
Disposals | 17 | 71 | 11 |
Balance | 42 | 47 | 107 |
Accumulated depreciation [Member] | Optic fibers and related assets [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 370 | 325 | 281 |
Depreciation | 75 | 55 | 45 |
Disposals | 10 | 1 | |
Balance | 445 | 370 | 325 |
Accumulated depreciation [Member] | Subscribers equipment and installations [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 274 | 185 | 94 |
Depreciation | 151 | 117 | 99 |
Disposals | 37 | 28 | 8 |
Balance | 388 | 274 | 185 |
Accumulated depreciation [Member] | Property, leasehold improvements, furniture and equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 61 | 81 | 79 |
Depreciation | 9 | 8 | 9 |
Disposals | 19 | 28 | 7 |
Balance | ₪ 51 | ₪ 61 | ₪ 81 |
PROPERTY AND EQUIPMENT (Sched_2
PROPERTY AND EQUIPMENT (Schedule of Depreciation Expense) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |||
Cost additions include capitalization of salary and employee related expenses | ₪ 50 | ₪ 41 | ₪ 39 |
INTANGIBLE AND OTHER ASSETS (Sc
INTANGIBLE AND OTHER ASSETS (Schedule of Intangible Assets with Finite Economic Useful Lives) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | ₪ 521 | |||
Balance | 472 | ₪ 521 | ||
Cost [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | 3,230 | 3,173 | ₪ 3,069 | |
Share in PHI's accounts included as of Jan 1, 2019 | 5 | |||
Additions | 154 | 194 | 160 | |
Disposals | 362 | 137 | 61 | |
Balance | 3,022 | 3,230 | 3,173 | |
Cost [Member] | Licenses [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | 2,153 | 2,123 | 2,123 | |
Additions | 30 | |||
Disposals | 3 | |||
Balance | 2,150 | 2,153 | 2,123 | |
Cost [Member] | Costs of obtaining contracts with customers [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | 385 | 270 | 175 | |
Additions | 99 | 115 | 95 | |
Balance | 484 | 385 | 270 | |
Cost [Member] | Customer relationships [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | 285 | 285 | 279 | |
Additions | 6 | |||
Disposals | 277 | |||
Balance | 8 | 285 | 285 | |
Cost [Member] | Computer software [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | [1] | 407 | 495 | 492 |
Share in PHI's accounts included as of Jan 1, 2019 | 5 | |||
Additions | [1] | 55 | 49 | 59 |
Disposals | [1] | 82 | 137 | 61 |
Balance | [1] | 380 | 407 | 495 |
Accumulated amortization [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | 2,709 | 2,635 | 2,452 | |
Share in PHI's accounts included as of Jan 1, 2019 | 2 | |||
Amortization | 203 | 211 | 241 | |
Disposals | 362 | 137 | 60 | |
Balance | 2,550 | 2,709 | 2,635 | |
Accumulated amortization [Member] | Licenses [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | 1,952 | 1,925 | 1,852 | |
Amortization | 18 | 27 | 73 | |
Disposals | 3 | |||
Balance | 1,967 | 1,952 | 1,925 | |
Accumulated amortization [Member] | Costs of obtaining contracts with customers [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | 238 | 141 | 62 | |
Amortization | 103 | 97 | 79 | |
Balance | 341 | 238 | 141 | |
Accumulated amortization [Member] | Customer relationships [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | 278 | 275 | 273 | |
Amortization | 1 | 3 | 2 | |
Disposals | 277 | |||
Balance | 2 | 278 | 275 | |
Accumulated amortization [Member] | Computer software [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | [1] | 241 | 294 | 265 |
Share in PHI's accounts included as of Jan 1, 2019 | 2 | |||
Amortization | [1] | 81 | 84 | 87 |
Disposals | [1] | 82 | 137 | 60 |
Balance | [1] | 240 | 241 | 294 |
Carrying amounts, net [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | 521 | 538 | ||
Balance | 472 | 521 | 538 | |
Carrying amounts, net [Member] | Licenses [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | 201 | 198 | ||
Balance | 183 | 201 | 198 | |
Carrying amounts, net [Member] | Costs of obtaining contracts with customers [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | 147 | 129 | ||
Balance | 143 | 147 | 129 | |
Carrying amounts, net [Member] | Customer relationships [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | 7 | 10 | ||
Balance | 6 | 7 | 10 | |
Carrying amounts, net [Member] | Computer software [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Balance | [1] | 166 | 201 | |
Balance | [1] | ₪ 140 | ₪ 166 | ₪ 201 |
[1] | Cost additions include capitalization of salary and employee related expenses |
INTANGIBLE AND OTHER ASSETS (_2
INTANGIBLE AND OTHER ASSETS (Schedule of Amortization Expenses and Impairments) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |||
Cost additions include capitalization of salary and employee related expenses | ₪ 41 | ₪ 44 | ₪ 57 |
DEFERRED EXPENSES - RIGHT OF _3
DEFERRED EXPENSES - RIGHT OF USE (Schedule of Deferred Expenses - Right of Use) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [line items] | |||
Balance | ₪ 521 | ||
Balance | 472 | ₪ 521 | |
Right-of-use assets [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Current | 27 | 26 | |
Non-current | 142 | 118 | |
Cost [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance | 3,230 | 3,173 | ₪ 3,069 |
Share in PHI's accounts included as of Jan 1, 2019 | 173 | ||
Additional payments | 154 | 194 | 160 |
Balance | 3,022 | 3,230 | 3,173 |
Cost [Member] | Right-of-use assets [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance | 665 | 618 | 736 |
Share in PHI's accounts included as of Jan 1, 2019 | (169) | ||
Additional payments | 56 | 47 | 51 |
Balance | 721 | 665 | 618 |
Accumulated amortization and impairment [Member] | Right-of-use assets [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance | 521 | 490 | 500 |
Share in PHI's accounts included as of Jan 1, 2019 | (38) | ||
Amortization | 31 | 31 | 28 |
Balance | 552 | 521 | 490 |
Carrying amounts, net [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance | 521 | 538 | |
Balance | 472 | 521 | 538 |
Carrying amounts, net [Member] | Right-of-use assets [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance | 144 | 128 | |
Balance | ₪ 169 | ₪ 144 | ₪ 128 |
IMPAIRMENT TESTS (Narrative) (D
IMPAIRMENT TESTS (Narrative) (Details) - ILS (₪) ₪ in Millions | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of information for cash-generating units [line items] | |||
Goodwill | ₪ 407 | ₪ 407 | |
Pre-tax cash flow projections period | five-year | ||
Impairment of fixed-line assets | ₪ 10 | ||
BDO Ziv Haft Consulting & Management Ltd. [Member] | |||
Disclosure of information for cash-generating units [line items] | |||
Pre-tax cash flow projections period | five-year | ||
CGU [Member] | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | ₪ 407 |
IMPAIRMENT TESTS (Schedule of G
IMPAIRMENT TESTS (Schedule of Goodwill Impairment Assumptions) (Details) | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Disclosure of information for cash-generating units [line items] | ||||
Terminal growth rate | 1.00% | |||
After-tax discount rate | 7.00% | |||
Pre-tax discount rate | 8.50% | |||
Annual goodwill impairment tests in the fixed-line segment [Member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Terminal growth rate | 1.00% | 1.00% | 1.00% | |
After-tax discount rate | 7.00% | 7.50% | 8.00% | |
Pre-tax discount rate | 8.50% | 9.00% | 9.60% | |
Interim impairment tests of non-financial assets [Member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Terminal growth rate | 1.00% | |||
After-tax discount rate | 8.25% | |||
Pre-tax discount rate | 9.90% |
OTHER RECEIVABLES AND LIABILI_3
OTHER RECEIVABLES AND LIABILITIES (Schedule of Other Receivables and Liabilities) (Details) - ILS (₪) ₪ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other receivables and prepaid expenses - current | ||
Prepaid expenses | ₪ 103 | ₪ 38 |
Grant receivable with respect to frequencies tender | 36 | |
Other current receivables | 13 | 8 |
Other receivables and prepaid expenses - current | 152 | 46 |
Deferred revenues and other | ||
Deferred revenues from Hot mobile - current and non-current | 70 | 102 |
Deferred revenues - current | 58 | 56 |
Other - current | 50 | 44 |
Deferred revenues and other | 178 | 202 |
Other payables and provisions - current | ||
Provisions (mainly legal claims) | 22 | 13 |
Income tax payable and institutions | 15 | 39 |
Payables in respect of employees | 99 | 58 |
Interest payable | 18 | 17 |
Liability for frequencies | 31 | |
Other payables and provisions - current | 185 | 127 |
Liabilities and provisions - non-current | ||
Non-current provisions for dismantling and restoring sites obligation | 22 | 21 |
Other non-current liabilities | 13 | 13 |
Liability for frequencies | 30 | |
Liabilities and provisions - non-current | ₪ 35 | ₪ 64 |
BORROWINGS AND NOTES PAYABLE (N
BORROWINGS AND NOTES PAYABLE (Narrative) (Details) - ILS (₪) | Jan. 02, 2019 | Dec. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | |||||||
Repayment of borrowings | ₪ 237,000,000 | ₪ 620,000,000 | ₪ 109,000,000 | ||||
Finance expense | ₪ 68,000,000 | 77,000,000 | 75,000,000 | ||||
Proceeds from option warrants | 37,000,000 | ||||||
Borrowing G [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Interest rate | 4.00% | ||||||
Proceeds from borrowings | ₪ 225,000,000 | ||||||
First payment date | June of each of the years 2022 through 2025 | ||||||
Borrowing G [Member] | 2022 through 2025 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | ₪ 22,500,000 | ||||||
Borrowing G [Member] | June 2026 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 45,000,000 | ||||||
Borrowing G [Member] | June 2027 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | ₪ 90,000,000 | ||||||
Borrowing H [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Interest rate | 2.08% | 2.08% | |||||
Proceeds from borrowings | ₪ 198,400,000 | ||||||
Borrowing H [Member] | June 2025 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 39,700,000 | ₪ 39,700,000 | |||||
Borrowing H [Member] | June 2026 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 19,800,000 | 19,800,000 | |||||
Borrowing H [Member] | Years 2028 through 2029 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 39,700,000 | 39,700,000 | |||||
Borrowing H [Member] | June 2030 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | ₪ 59,500,000 | ₪ 59,500,000 | |||||
Borrowing R [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Interest rate | 2.55% | 2.55% | |||||
Proceeds from borrowings | ₪ 150,000,000 | ||||||
Borrowing R [Member] | June 2025 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 30,000,000 | ₪ 30,000,000 | |||||
Borrowing R [Member] | June 2026 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 15,000,000 | 15,000,000 | |||||
Borrowing R [Member] | Years 2028 through 2029 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 30,000,000 | 30,000,000 | |||||
Borrowing R [Member] | June 2030 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 45,000,000 | 45,000,000 | |||||
PHI [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | ₪ 100,000,000 | ₪ 100,000,000 | 100,000,000 | ||||
Percentage of share facility | 50.00% | 50.00% | |||||
Additional Series G Notes [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Proceeds from borrowings | ₪ 300 | ||||||
Series F Notes [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Repayment of borrowings | 313,000,000 | ₪ 305,000,000 | |||||
Finance expense | ₪ 7,000,000 | ||||||
Proceeds from borrowings | 226,750,000 | ||||||
Series G Notes [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Proceeds from borrowings | ₪ 26,500,000 | ₪ 174,300,000 | ₪ 125,000,000 | ||||
Proceeds from option warrants | ₪ 37,000,000 | ||||||
Series G Notes [Member] | July 1, 2019 and May 31, 2020 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | ₪ 100,000 | ||||||
Exercise price | ₪ 88 | ||||||
Series G Notes [Member] | July 1, 2020 and May 31, 2021 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | ₪ 100,000 | ||||||
Exercise price | ₪ 88 | ||||||
Series F Notes and borrowings P and Q [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Financial obligation ratio | Regarding Series F Notes, Series G Notes, Series H Notes and borrowing P, borrowing Q and borrowing R the Company is required to comply with a financial covenant that the ratio of Net Debt to Adjusted EBITDA shall not exceed 5. Compliance will be examined and reported on a quarterly basis. For the purpose of the covenant, Adjusted EBITDA is calculated as the sum total for the last 12 month period, excluding adjustable one-time items. As of December 31, 2021, the ratio of Net Debt to Adjusted EBITDA was 0.8. Additional stipulations mainly include: Shareholders' equity shall not decrease below NIS 400 million and no dividends will be declared if shareholders' equity will be below NIS 650 million regarding Series F notes, borrowing P and borrowing Q. Shareholders' equity shall not decrease below NIS 600 million and no dividends will be declared if shareholders' equity will be below NIS 750 million regarding Series G notes and borrowing R. Shareholders' equity shall not decrease below NIS 700 million and no dividends will be declared if shareholders' equity will be below NIS 850 million regarding Series H notes. The Company shall not create floating liens subject to certain terms. The Company has the right for early redemption under certain conditions. With respect to notes payable series F, series G and series H: the Company shall pay additional annual interest of 0.5% in the case of a two- notch downgrade in the Notes rating and an additional annual interest of 0.25% for each further single-notch downgrade, up to a maximum additional interest of 1%; the Company shall pay additional annual interest of 0.25% during a period in which there is a breach of the financial covenant; debt rating will not decrease below BBB- for a certain period. In any case, the total maximum additional interest for Series F, Series G and Series H, shall not exceed 1.25%, 1% or 1.25%, respectively. |
BORROWINGS AND NOTES PAYABLE (S
BORROWINGS AND NOTES PAYABLE (Schedule of Composition of Borrowings and Notes Payable) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Notes payable series F [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Annual interest rate | 2.16% fixed |
Notes payable series G [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Annual interest rate | 4% fixed |
Notes payable series H [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Annual interest rate | 2.08% fixed |
Borrowing P [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Annual interest rate | 2.38% fixed |
Borrowing Q [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Annual interest rate | 2.5% fixed |
Borrowing R [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Annual interest rate | 2.55% fixed |
BORROWINGS AND NOTES PAYABLE _2
BORROWINGS AND NOTES PAYABLE (Schedule of Changes in Debentures, Including Cash Flows From Financing Activities) (Details) - ILS (₪) ₪ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | |||
Non-current borrowings, including current maturities | ₪ 236 | ₪ 138 | ₪ 191 |
Notes payable, including current maturities | 1,440 | 1,457 | 1,589 |
Financial liability at fair value | 4 | 28 | |
Interest payable | 18 | 17 | 8 |
Lease liability | 720 | 702 | 617 |
Borrowings | 2,414 | 2,318 | ₪ 2,433 |
Cash flows used in financing activities, net [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current borrowings, including current maturities | 98 | (52) | |
Notes payable, including current maturities | (17) | (154) | |
Interest payable | (48) | (49) | |
Lease liability | (148) | (147) | |
Borrowings | (115) | (402) | |
Non cash movements CPI adjustments and other [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current borrowings, including current maturities | (1) | ||
Notes payable, including current maturities | 22 | ||
Financial liability at fair value | (4) | (24) | |
Interest payable | 49 | 58 | |
Lease liability | 18 | 18 | |
Borrowings | 63 | 73 | |
Non cash movements Against lease ROU asset [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Lease liability | 148 | 214 | |
Borrowings | ₪ 148 | ₪ 214 |
LIABILITY FOR EMPLOYEE RIGHTS_3
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT (Narrative) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | ||||
Defined contribution plan amount | ₪ 24 | ₪ 25 | ₪ 23 | |
Expected contribution to defined benefit plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Defined contribution plan amount | ₪ 7 |
LIABILITY FOR EMPLOYEE RIGHTS_4
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT (Schedule of Obligation Recognized for Defined Benefit Plans) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
At January 1 | ₪ 42 | ₪ 43 |
Current service cost | 14 | 10 |
Interest expense (income) | 1 | 2 |
Employer contributions | (8) | (8) |
Benefits paid | (6) | (4) |
Remeasurements: | ||
Experience changes | 8 | (2) |
Return on plan assets | 16 | 1 |
At December 31 | 35 | 42 |
Present value of obligation [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
At January 1 | 154 | 150 |
Current service cost | 14 | 10 |
Interest expense (income) | 3 | 4 |
Benefits paid | (16) | (8) |
Remeasurements: | ||
Experience changes | 8 | (2) |
At December 31 | 163 | 154 |
Fair value of plan assets [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
At January 1 | (112) | (107) |
Interest expense (income) | (2) | (2) |
Employer contributions | (8) | (8) |
Benefits paid | 10 | 4 |
Remeasurements: | ||
Return on plan assets | (16) | 1 |
At December 31 | ₪ (128) | ₪ (112) |
LIABILITY FOR EMPLOYEE RIGHTS_5
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT (Schedule of Principal Actuarial Assumptions) (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of defined benefit plans [line items] | ||
Interest rate weighted average | 3.21% | 2.12% |
Inflation rate weighted average | 2.41% | 0.97% |
Bottom of range [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected turnover rate | 9.00% | 9.00% |
Future salary increases | 1.00% | 1.00% |
Top of range [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected turnover rate | 70.00% | 56.00% |
Future salary increases | 6.00% | 6.00% |
LIABILITY FOR EMPLOYEE RIGHTS_6
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT (Schedule of Sensitivity of Defined Benefit Obligation to Changes) (Details) | Dec. 31, 2021 |
Interest rate [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase of 10% of the assumption | (0.30%) |
Decrease of 10% of the assumption | 0.50% |
Expected turnover rate [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase of 10% of the assumption | 0.10% |
Decrease of 10% of the assumption | (0.20%) |
Future salary increases [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase of 10% of the assumption | 0.40% |
Decrease of 10% of the assumption | (0.40%) |
LIABILITY FOR EMPLOYEE RIGHTS_7
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT (Schedule of Maturity Analysis of Undiscounted Defined Benefits) (Details) ₪ in Millions | Dec. 31, 2021ILS (₪) |
Disclosure of defined benefit plans [line items] | |
Expected maturity | ₪ 175 |
2022 [Member] | |
Disclosure of defined benefit plans [line items] | |
Expected maturity | 25 |
2022 [Member] | |
Disclosure of defined benefit plans [line items] | |
Expected maturity | 19 |
2024 [Member] | |
Disclosure of defined benefit plans [line items] | |
Expected maturity | 16 |
2025 and 2026 [Member] | |
Disclosure of defined benefit plans [line items] | |
Expected maturity | 19 |
2027 and thereafter [Member] | |
Disclosure of defined benefit plans [line items] | |
Expected maturity | ₪ 96 |
COMMITMENTS AND TRANSACTIONS (N
COMMITMENTS AND TRANSACTIONS (Narrative) (Details) - ILS (₪) ₪ in Millions | Apr. 01, 2021 | Aug. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 |
Disclosure of transactions between related parties [line items] | ||||||
Frequency fee expense | ₪ 66 | ₪ 75 | ₪ 79 | |||
Commited to acquire property and equipment and software | 117 | |||||
Commited to acquire inventory | 458 | |||||
Maintenance fee for years 2022-2023 | 7 | |||||
Bank guarantees | 54 | |||||
Reduction in property and equipment in present value amount | 36 | |||||
Intangible asset | 472 | ₪ 521 | ₪ 30 | |||
Grants receivable | 37 | |||||
Price of tender | ₪ 62 | |||||
Apple Distribution International [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Agreement period for purchase and resale | 3 years | |||||
In respect of licenses [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Bank guarantees | 30 | |||||
Other parties [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Bank guarantees | 24 | |||||
PHI's debt [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Bank guarantees | ₪ 50 |
COMMITMENTS AND TRANSACTIONS (S
COMMITMENTS AND TRANSACTIONS (Schedule of Future Capacities Owed for Right of Use Agreements) (Details) - ILS (₪) ₪ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Commitments to pay for rights of use | ₪ 679 | ₪ 663 |
2022 [Member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Commitments to pay for rights of use | 60 | |
2022 [Member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Commitments to pay for rights of use | 11 | |
2024 [Member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Commitments to pay for rights of use | 11 | |
2025 [Member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Commitments to pay for rights of use | ₪ 2 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2021m² | |
Presentation of leases for lessee [abstract] | |
Area of lease | 51,177 |
Lease term | October 2020 to end on December 31, 2029 |
Period of lease agreements for service centers and retail stores | two to ten years |
Extend period of lease | twenty years |
Percentage of increase of lease payment | 2%-10% |
Period of lease agreements in respect of cell sites and switching stations | two to ten years |
Lease contract period | ten years |
Lease contract period for vehicle | three years |
Percentage of increase of lease payment mostly | 2%-10% |
LEASES (Schedule of Carrying Am
LEASES (Schedule of Carrying Amounts of Right of Use Assets and Lease Liabilities) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease right of use asset | |||
Balance as at January 1 | ₪ 663 | ||
Balance as at December 31 | 679 | ₪ 663 | |
Balance as at January 1 | 702 | 617 | |
Accretion of interest | 18 | 18 | |
Non-cash movements | 214 | ||
Lease payments (principal) cash outflow | (130) | (129) | ₪ (139) |
Lease payments (interest) cash outflow | (18) | (18) | (20) |
Balance as at December 31 | 720 | 702 | 617 |
Current lease liabilities | 125 | 120 | |
Non-current liabilities | 595 | 582 | |
Buildings [Member] | |||
Lease right of use asset | |||
Balance as at January 1 | 298 | 222 | |
Amortization charges | (37) | (38) | |
Non-cash movements | 52 | 114 | |
Balance as at December 31 | 313 | 298 | 222 |
Cell sites [member] | |||
Lease right of use asset | |||
Balance as at January 1 | 324 | 330 | |
Amortization charges | (68) | (71) | |
Non-cash movements | 63 | 65 | |
Balance as at December 31 | 319 | 324 | 330 |
Vehicles [Member] | |||
Lease right of use asset | |||
Balance as at January 1 | 41 | 30 | |
Amortization charges | (29) | (25) | |
Non-cash movements | 35 | 36 | |
Balance as at December 31 | ₪ 47 | ₪ 41 | ₪ 30 |
LAWSUITS AND LITIGATIONS (Narra
LAWSUITS AND LITIGATIONS (Narrative) (Details) ₪ in Thousands | 12 Months Ended | |||
Dec. 31, 2021ILS (₪)Claims | Nov. 13, 2017ILS (₪) | Feb. 28, 2017ILS (₪) | Nov. 12, 2015ILS (₪) | |
Disclosure of contingent liabilities [line items] | ||||
Litigation claim amount | ₪ 4,176 | |||
Percentage of provision indemnification by cellular operators | 100.00% | |||
Lawsuit provisions [Member] | ||||
Disclosure of contingent liabilities [line items] | ||||
Total provision recorded | ₪ 20,000 | |||
Agreement claims [Member] | ||||
Disclosure of contingent liabilities [line items] | ||||
Litigation claim amount | ₪ 10,000 | ₪ 64,000 | ||
Number of claims | Claims | 31 | |||
Consumer claims [Member] | ||||
Disclosure of contingent liabilities [line items] | ||||
Number of claims | Claims | 5 | |||
Agreement claims [Member] | ||||
Disclosure of contingent liabilities [line items] | ||||
Litigation claim amount | ₪ 53,000 | ₪ 116,000 |
LAWSUITS AND LITIGATIONS (Sched
LAWSUITS AND LITIGATIONS (Schedule of Claims or Breach of Consumer Protection Law and Customer Agreement Claims) (Details) - Agreement claims [Member] ₪ in Millions | Dec. 31, 2021ILS (₪)Claims |
Disclosure of contingent liabilities [line items] | |
Number of claims | Claims | 31 |
Total claims amount (NIS million) | ₪ | ₪ 2,252 |
Up to NIS 100 million [Member] | |
Disclosure of contingent liabilities [line items] | |
Number of claims | Claims | 14 |
Total claims amount (NIS million) | ₪ | ₪ 315 |
NIS 101-400 million [Member] | |
Disclosure of contingent liabilities [line items] | |
Number of claims | Claims | 5 |
Total claims amount (NIS million) | ₪ | ₪ 937 |
NIS 401 million - NIS 1 billion [Member] | |
Disclosure of contingent liabilities [line items] | |
Number of claims | Claims | 1 |
Total claims amount (NIS million) | ₪ | ₪ 1,000 |
Unquantified claims [Member] | |
Disclosure of contingent liabilities [line items] | |
Number of claims | Claims | 11 |
Total claims amount (NIS million) | ₪ |
EQUITY AND SHARE BASED PAYMEN_3
EQUITY AND SHARE BASED PAYMENTS (Narrative) (Details) ₪ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2020ILS (₪) | Dec. 31, 2008ILS (₪)shares | Dec. 31, 2021ILS (₪)shares | Dec. 31, 2020ILS (₪) | Dec. 31, 2018ILS (₪)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Percentage transfer of shares to third party | 10.00% | ||||
Treasury shares repurchased | shares | 4,467,990 | 6,501,588 | |||
Percentage of ownerhsip hold | 5.00% | ||||
Treasury shares repurchased, value | ₪ 351 | ₪ 100 | |||
Total net consideration | ₪ 276 | ||||
Remaining treasury shares | shares | 7,337,759 | ||||
Compensation expenses during next four years with respect to options and restricted shares | ₪ 20 | ||||
Non-adjusting events after reporting period [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Total net consideration | ₪ 276 | ||||
Offering expenses | ₪ 10 | ||||
Shares granted | 19,330,183 | ||||
Equity Incentive Plan [Member] | Trustee [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Shares granted | 1,349,119 |
EQUITY AND SHARE BASED PAYMEN_4
EQUITY AND SHARE BASED PAYMENTS (Schedule of Information in Respect of Options and Restricted Shares Granted) (Details) | 12 Months Ended | |
Dec. 31, 2021shares | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding | 6,934,999 | |
Number of options [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Granted | 39,936,212 | |
Shares issued upon exercises and vesting | (7,022,000) | |
Cancelled upon net exercises, expiration and forfeitures | (25,979,213) | |
Outstanding | 6,934,999 | |
Exercisable | 2,189,520 | [1] |
Number of options [Member] | Vest in 2022 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vest | 2,540,988 | [1] |
Number of options [Member] | Vest in 2023 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vest | 1,852,136 | [1] |
Number of options [Member] | Vest in 2024 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vest | 352,355 | [1] |
Number of RSAs [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Granted | 6,727,668 | |
Shares issued upon exercises and vesting | (3,633,131) | |
Cancelled upon net exercises, expiration and forfeitures | (1,746,720) | |
Outstanding | 1,347,817 | |
Exercisable | 201,225 | [1] |
Number of RSAs [Member] | Vest in 2022 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vest | 640,912 | [1] |
Number of RSAs [Member] | Vest in 2023 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vest | 424,467 | [1] |
Number of RSAs [Member] | Vest in 2024 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vest | 81,213 | [1] |
[1] | The vesting schedule takes into account the acceleration of the vesting of certain grants based on a probable future change of control event, see note 21(b)(1) above. |
EQUITY AND SHARE BASED PAYMEN_5
EQUITY AND SHARE BASED PAYMENTS (Schedule of Options and RSAs Status Summary) (Details) | 12 Months Ended | |||
Dec. 31, 2021ILS (₪)sharesYears₪ / shares | Dec. 31, 2020ILS (₪)sharesYears₪ / shares | Dec. 31, 2019ILS (₪)sharesYears₪ / shares | ||
Number Share Options and RSA's: | ||||
Outstanding at the end of the year | 6,934,999 | |||
Number Share Options and RSA's: | ||||
Weighted average fair value of options granted using the Black & Scholes option-pricing model - per option (NIS) | ₪ | ₪ 4.41 | ₪ 3.71 | ₪ 3.34 | |
The above fair value is estimated on the grant date based on the following weighted average assumptions: | ||||
Expected volatility | 42.31% | 37.24% | 33.52% | |
Risk-free interest rate | 0.18% | 0.21% | 0.57% | |
Expected life (years) | Years | 2 | 3 | 3 | |
Dividend yield | [1] | |||
Share Options [Member] | ||||
Number Share Options and RSA's: | ||||
Outstanding at the beginning of the year | 7,029,423 | 9,020,689 | 9,697,266 | |
Granted during the year | 3,827,782 | 1,035,635 | 1,232,226 | |
Exercised during the year | (3,048,724) | (296,450) | (70,824) | |
Forfeited during the year | (196,000) | (252,547) | (235,150) | |
Expired during the year | (677,482) | (2,477,904) | (1,602,829) | |
Outstanding at the end of the year | 6,934,999 | 7,029,423 | 9,020,689 | |
Exercisable at the end of the year | 2,189,520 | 4,071,714 | 5,623,921 | |
Shares issued during the year due exercises | 447,222 | 46,747 | 3,166 | |
Number Share Options and RSA's: | ||||
Outstanding at the beginning of the year | ₪ / shares | ₪ 18.64 | ₪ 23.62 | ₪ 28.19 | |
Granted during the year | ₪ / shares | 15.60 | 14.24 | 16.21 | |
Exercised during the year | ₪ / shares | 17.98 | 14.71 | 16.62 | |
Forfeited during the year | ₪ / shares | 13.97 | 18.42 | 18.74 | |
Expired during the year | ₪ / shares | 24.29 | 34.10 | 46.64 | |
Outstanding at the end of the year | ₪ / shares | 16.83 | 18.64 | 23.62 | |
Exercisable at the end of the year | ₪ / shares | ₪ 19.46 | ₪ 20.04 | ₪ 27.11 | |
RSAs [Member] | ||||
Number Share Options and RSA's: | ||||
Outstanding at the beginning of the year | 1,007,423 | 1,230,464 | 1,209,521 | |
Granted during the year | 820,059 | 398,055 | 397,476 | |
Vested during the year | (404,025) | (534,053) | (284,427) | |
Forfeited during the year | (75,640) | (87,043) | (92,106) | |
Outstanding at the end of the year | 1,347,817 | 1,007,423 | 1,230,464 | |
[1] | Due to the Full Dividend Mechanism the expected dividend yield used in the fair value determination of such options was 0% for the purpose of using the Black & Scholes option-pricing model. |
EQUITY AND SHARE BASED PAYMEN_6
EQUITY AND SHARE BASED PAYMENTS (Schedule of Information About Outstanding Options by Expiry Dates) (Details) | 12 Months Ended |
Dec. 31, 2021shares₪ / shares | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Number of share options | shares | 6,934,999 |
Weighted average exercise price in NIS | ₪ / shares | ₪ 16.83 |
2022 [Member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Number of share options | shares | 1,789,042 |
Weighted average exercise price in NIS | ₪ / shares | ₪ 19.03 |
2023 [Member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Number of share options | shares | 2,366,252 |
Weighted average exercise price in NIS | ₪ / shares | ₪ 15.44 |
2024 [Member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Number of share options | shares | 879,343 |
Weighted average exercise price in NIS | ₪ / shares | ₪ 18.68 |
2025 [Member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Number of share options | shares | 202,124 |
Weighted average exercise price in NIS | ₪ / shares | ₪ 16.34 |
2026 [Member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Number of share options | shares | 641,178 |
Weighted average exercise price in NIS | ₪ / shares | ₪ 14.36 |
2027 [Member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Number of share options | shares | 1,057,060 |
Weighted average exercise price in NIS | ₪ / shares | ₪ 16.26 |
INCOME STATEMENT DETAILS (Narra
INCOME STATEMENT DETAILS (Narrative) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement Line Items [Line Items] | |||
Transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied | ₪ 204 | ||
Period of collective employment agreement | on a salary increase budget for 2022, in the amount of 3%, to be differentially allocated. In addition, the Parties agreed to negotiate at a later time a salary increase and participation in the Company's profits mechanism for the years 2023- 2024. | ||
Percentage Increase in Revenues [Member] | |||
Statement Line Items [Line Items] | |||
Percentage of performance obligations that were unsatisfied or partially unsatisfied as year end that will be recognized as revenue during subsequent years | 20.00% | 50.00% |
INCOME STATEMENT DETAILS (Sched
INCOME STATEMENT DETAILS (Schedule of Disaggregation of Revenues) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | |||
Total revenues | ₪ 3,363 | ₪ 3,189 | ₪ 3,234 |
Cellular Segment [Member] | |||
Disclosure of operating segments [line items] | |||
Segment revenue - Services to private customers | 933 | 942 | 990 |
Segment revenue - Services to business customers | 766 | 721 | 808 |
Segment revenue - Services revenue total | 1,699 | 1,663 | 1,798 |
Segment revenue - Equipment | 602 | 545 | 571 |
Total revenues | 2,301 | 2,208 | 2,369 |
Fixed-Line Segment [Member] | |||
Disclosure of operating segments [line items] | |||
Segment revenue - Services to private customers | 680 | 604 | 513 |
Segment revenue - Services to business customers | 386 | 389 | 412 |
Segment revenue - Services revenue total | 1,066 | 993 | 925 |
Segment revenue - Equipment | 126 | 136 | 103 |
Total revenues | 1,192 | 1,129 | 1,028 |
Elimination [Member] | |||
Disclosure of operating segments [line items] | |||
Segment revenue - Services to private customers | (72) | (83) | (87) |
Segment revenue - Services to business customers | (58) | (65) | (76) |
Segment revenue - Services revenue total | (130) | (148) | (163) |
Total revenues | (130) | (148) | (163) |
Consolidated [Member] | |||
Disclosure of operating segments [line items] | |||
Segment revenue - Services to private customers | 1,541 | 1,463 | 1,416 |
Segment revenue - Services to business customers | 1,094 | 1,045 | 1,144 |
Segment revenue - Services revenue total | 2,635 | 2,508 | 2,560 |
Segment revenue - Equipment | 728 | 681 | 674 |
Total revenues | ₪ 3,363 | ₪ 3,189 | ₪ 3,234 |
INCOME STATEMENT DETAILS (Sch_2
INCOME STATEMENT DETAILS (Schedule of Revenues from Services are Recognized Over Time) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |||
Revenues from equipment recognized at a point of time | ₪ 8 | ₪ 10 | ₪ 17 |
Revenues from services for operating leases | ₪ 78 | ₪ 73 | ₪ 57 |
INCOME STATEMENT DETAILS (Sch_3
INCOME STATEMENT DETAILS (Schedule of Cost of Revenues) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |||
Transmission, communication and content providers | ₪ 800 | ₪ 786 | ₪ 746 |
Cost of equipment and accessories | 550 | 510 | 500 |
Depreciation and amortization | 565 | 546 | 603 |
Wages, employee benefits expenses and car maintenance | 292 | 282 | 312 |
Costs of handling, replacing or repairing equipment | 61 | 66 | 71 |
Operating lease, rent and overhead expenses | 75 | 75 | 73 |
Network and cable maintenance | 88 | 97 | 99 |
Internet infrastructure and service providers | 136 | 157 | 173 |
IT support and other operating expenses | 58 | 56 | 57 |
Amortization of deferred expenses - rights of use | 31 | 31 | 28 |
Other | 76 | 58 | 45 |
Total cost of revenues | ₪ 2,732 | ₪ 2,664 | ₪ 2,707 |
INCOME STATEMENT DETAILS (Sch_4
INCOME STATEMENT DETAILS (Schedule of Selling and Marketing Expenses) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |||
Wages, employee benefits expenses and car maintenance | ₪ 103 | ₪ 81 | ₪ 102 |
Advertising and marketing | 41 | 42 | 44 |
Selling commissions, net | 32 | 31 | 28 |
Depreciation and amortization | 132 | 123 | 106 |
Operating lease, rent and overhead expense | 2 | 2 | 4 |
Others | 13 | 12 | 17 |
Total selling and marketing expenses | ₪ 323 | ₪ 291 | ₪ 301 |
INCOME STATEMENT DETAILS (Sch_5
INCOME STATEMENT DETAILS (Schedule of General and Administrative Expenses) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |||
Wages, employee benefits expenses and car maintenance | ₪ 93 | ₪ 81 | ₪ 85 |
Professional fees | 23 | 21 | 21 |
Credit card and other commissions | 13 | 13 | 13 |
Depreciation | 16 | 14 | 14 |
Other | 19 | 16 | 16 |
Total general and administrative expenses | ₪ 164 | ₪ 145 | ₪ 149 |
INCOME STATEMENT DETAILS (Sch_6
INCOME STATEMENT DETAILS (Schedule of Employee Benefit Expense) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |||
Wages, employee benefits expenses and car maintenance, before capitalization | ₪ 526 | ₪ 482 | ₪ 543 |
Less: expenses capitalized (notes 10, 11) | (91) | (85) | (96) |
Service costs: defined benefit plan (note 16(2)) | 14 | 10 | 12 |
Service costs: defined contribution plan (note 16(1)) | 24 | 25 | 23 |
Employee share based compensation expenses (note 21(b)) | 15 | 12 | 17 |
Employee benefits expense | ₪ 488 | ₪ 444 | ₪ 499 |
OTHER INCOME, NET (Schedule of
OTHER INCOME, NET (Schedule of Other Income Net) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other income, net [Abstract] | |||
Unwinding of trade receivables | ₪ 20 | ₪ 21 | ₪ 23 |
Other income, net | 8 | 9 | 5 |
Other income, net | ₪ 28 | ₪ 30 | ₪ 28 |
FINANCE EXPENSES (Schedule of F
FINANCE EXPENSES (Schedule of Finance Expenses) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance Expenses | |||
Interest expense and other finance expenses | ₪ 50 | ₪ 59 | ₪ 55 |
Interest for lease liabilities | 18 | 18 | 20 |
Finance expenses | ₪ 68 | ₪ 77 | ₪ 75 |
INCOME TAX EXPENSES (Narrative)
INCOME TAX EXPENSES (Narrative) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Carry forward tax losses | ₪ 51 | ||
Amount of pay for settlement | ₪ 2.5 | ||
Tax expense (income) | ₪ 43 | ||
Changes in tax rates or tax laws enacted or announced [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Corporate tax rate | 23.00% |
INCOME TAX EXPENSES (Schedule o
INCOME TAX EXPENSES (Schedule of Balances of Deferred Tax Asset (Liability)) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balance of deferred tax asset (liability) in respect of | |||
As at January 1 | ₪ 29 | ₪ 41 | ₪ 38 |
Charged to the income statement | 7 | (12) | (3) |
Charged to the comprehensive income statement | (2) | ||
Charged to retained earnings upon implementation of IFRS 16 | 6 | ||
As at December 31 | 34 | 29 | 41 |
Allowance for credit losses [Member] | |||
Balance of deferred tax asset (liability) in respect of | |||
As at January 1 | 34 | 39 | 43 |
Charged to the income statement | (5) | (5) | (4) |
As at December 31 | 29 | 34 | 39 |
Provisions for employee rights [Member] | |||
Balance of deferred tax asset (liability) in respect of | |||
As at January 1 | 13 | 18 | 17 |
Charged to the income statement | 3 | (5) | 1 |
Charged to the comprehensive income statement | (2) | ||
As at December 31 | 14 | 13 | 18 |
Depreciable fixed assets and software [Member] | |||
Balance of deferred tax asset (liability) in respect of | |||
As at January 1 | 1 | (11) | (19) |
Charged to the income statement | 14 | 12 | 8 |
As at December 31 | 15 | 1 | (11) |
Lease - Right-of-use assets [Member] | |||
Balance of deferred tax asset (liability) in respect of | |||
As at January 1 | (152) | (134) | |
Charged to the income statement | (4) | (18) | 17 |
Charged to retained earnings upon implementation of IFRS 16 | (151) | ||
As at December 31 | (156) | (152) | (134) |
Leases liabilities [Member] | |||
Balance of deferred tax asset (liability) in respect of | |||
As at January 1 | 161 | 142 | |
Charged to the income statement | 5 | 19 | (15) |
Charged to retained earnings upon implementation of IFRS 16 | 157 | ||
As at December 31 | 166 | 161 | 142 |
Intangibles, deferred expenses and carry forward losses [Member] | |||
Balance of deferred tax asset (liability) in respect of | |||
As at January 1 | (53) | (40) | (19) |
Charged to the income statement | 2 | (13) | (21) |
As at December 31 | (51) | (53) | (40) |
Carry forward losses [Member] | |||
Balance of deferred tax asset (liability) in respect of | |||
As at January 1 | 20 | 21 | 11 |
Charged to the income statement | (7) | (1) | 10 |
As at December 31 | 13 | 20 | 21 |
Options granted to employees and other [Member] | |||
Balance of deferred tax asset (liability) in respect of | |||
As at January 1 | 5 | 6 | 5 |
Charged to the income statement | (1) | (1) | 1 |
As at December 31 | ₪ 4 | ₪ 5 | ₪ 6 |
INCOME TAX EXPENSES (Schedule_2
INCOME TAX EXPENSES (Schedule of Deferred Income Taxes) (Details) - ILS (₪) ₪ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Deferred tax assets | ₪ 269 | ₪ 264 |
Deferred tax liabilities | ||
Deferred tax liabilities | 235 | 235 |
Deferred tax assets | 34 | 29 |
Deferred tax assets to be recovered after more than 12 months [Member] | ||
Deferred tax assets | ||
Deferred tax assets | 200 | 188 |
Deferred tax assets to be recovered within 12 months [Member] | ||
Deferred tax assets | ||
Deferred tax assets | 69 | 76 |
Deferred tax liabilities to be recovered after more than 12 months [Member] | ||
Deferred tax liabilities | ||
Deferred tax liabilities | 184 | 184 |
Deferred tax liabilities to be recovered within 12 months [Member] | ||
Deferred tax liabilities | ||
Deferred tax liabilities | ₪ 51 | ₪ 51 |
INCOME TAX EXPENSES (Schedule_3
INCOME TAX EXPENSES (Schedule of Reconciliation of Theoretical Tax Expense) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Income Tax Expenses | |||||
Profit before taxes on income, as reported in the income statements | ₪ 99 | ₪ 27 | ₪ 19 | ||
Theoretical tax expense | 23 | 6 | 4 | ||
Increase in tax resulting from disallowable deductions | 4 | 4 | 5 | ||
Negative taxes (taxes on income) in respect of previous years | (34) | [1] | 3 | (7) | |
Temporary differences and utilization of tax losses for which no deferred income tax asset was recognized | (9) | [1] | (3) | (2) | |
Income tax expenses (income) | ₪ (16) | ₪ 10 | [2] | ||
[1] | See also note 25(e)(1) | ||||
[2] | Representing an amount of less than 1 million. |
INCOME TAX EXPENSES (Schedule_4
INCOME TAX EXPENSES (Schedule of Taxes on Income Included in Income Statements) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
For the reported year: | |||||
Current | ₪ 12 | ₪ 2 | ₪ 3 | ||
Deferred, see (c) above | 15 | 5 | 4 | ||
In respect of previous years: | |||||
Current | (21) | [1] | (4) | (7) | |
Deferred, see (c) above | (22) | [1] | 7 | ||
Income tax expenses (income) | ₪ (16) | ₪ 10 | [2] | ||
[1] | See also note 25(e)(1) | ||||
[2] | Representing an amount of less than 1 million. |
TRANSACTIONS AND BALANCES WIT_3
TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Narrative) (Details) | Dec. 31, 2021USD ($)shares |
Disclosure of transactions between related parties [line items] | |
Percentage of ownerhsip hold | 5.00% |
Top of range [Member] | |
Disclosure of transactions between related parties [line items] | |
Percentage of ownerhsip hold | 5.00% |
Bottom of range [Member] | |
Disclosure of transactions between related parties [line items] | |
Percentage of ownerhsip hold | 3.82% |
Mr. Avi Gabbay and Mr. Shlomo Rodav [Member] | Convenience translation into U.S. dollars [Member] | |
Disclosure of transactions between related parties [line items] | |
Cash consideration | $ | $ 300,000,000 |
Shareholder [Member] | |
Disclosure of transactions between related parties [line items] | |
Number of shares issued in acquisition | shares | 49,862,800 |
Percentage of outstanding shares | 27.00% |
Cellular Segment [Member] | |
Disclosure of transactions between related parties [line items] | |
Percentage of ownerhsip hold | 26.00% |
TRANSACTIONS AND BALANCES WIT_4
TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Schedule of Key Management Compensation) (Details) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Key management compensation expenses comprised | |||
Salaries and short-term employee benefits | ₪ 25 | ₪ 21 | ₪ 27 |
Long term employment benefits | 6 | 3 | 3 |
Employee share-based compensation expenses | 11 | 7 | 12 |
Key management compensation expenses | 42 | 31 | ₪ 42 |
Statement of financial position items - key management | |||
Current liabilities: | 15 | 9 | |
Non-current liabilities: | ₪ 9 | ₪ 10 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Data Relating to Net Income (Loss) and Weighted Average Number of Shares) (Details) - ILS (₪) shares in Thousands, ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share | |||
Profit for the year | ₪ 115 | ₪ 17 | ₪ 19 |
Weighted average number of shares used in computation of basic EPS (in thousands) | 183,203 | 182,331 | 162,831 |
Add - net additional shares from assumed exercise of employee stock options and restricted shared (in thousands) | 1,131 | 857 | 777 |
Weighted average number of shares used in computation of diluted EPS (in thousands) | 184,334 | 183,188 | 163,608 |
Number of options and restricted shares not taken into account in computation of diluted earnings per share, because of their anti-dilutive effect (in thousands) | 4,470 | 6,466 | 8,952 |