Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document and Entity Information | |
Entity Registrant Name | MOBILE TELESYSTEMS OJSC |
Entity Central Index Key | 1115837 |
Document Type | 20-F |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -19 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 1,211,515,626 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
CONSOLIDATED_STATEMENTS_OF_FIN
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (RUB) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | 61,410 | 30,612 |
Short-term investments, including available-for-sale securities at fair value of 576 and 4,154, respectively, and related party amounts of 760 and 9,235, respectively | 9,849 | 14,633 |
Trade receivables, net of allowance for doubtful accounts of 2,165 and 3,753, respectively | 32,966 | 34,554 |
Accounts receivable, related parties | 4,525 | 965 |
Inventory and spare parts | 7,510 | 8,498 |
Prepaid expenses, including related party amounts of 322 and 123, respectively | 11,752 | 9,811 |
Deferred tax assets | 11,206 | 7,933 |
VAT receivable | 8,071 | 6,651 |
Assets related to disposal group held for sale | 2,004 | |
Other current assets | 2,831 | 3,019 |
Total current assets | 152,124 | 116,676 |
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of 313,623 and 293,389, including advances to related parties of 254 and 367, respectively | 299,479 | 270,660 |
GOODWILL | 36,311 | 32,704 |
DEBT ISSUANCE COSTS, net of accumulated amortization of 2,336 and 2,375, respectively | 1,738 | 2,023 |
INVESTMENTS IN AND ADVANCES TO ASSOCIATES | 16,277 | 13,393 |
OTHER INVESTMENTS, including related party amounts of 835 and 743, respectively | 14,969 | 4,392 |
OTHER NON-CURRENT ASSETS, including asset derivatives of 21,944 and 1,837, respectively, and deferred tax assets of 3,610 and 862, respectively | 25,560 | 4,051 |
Total assets | 608,927 | 485,524 |
CURRENT LIABILITIES: | ||
Accounts payable, related parties | 4,674 | 3,315 |
Trade payables | 36,337 | 23,864 |
Subscriber prepayments and deposits | 19,355 | 17,884 |
Debt, current portion | 19,435 | 7,564 |
Notes payable, current portion | 22,701 | 17,462 |
Deferred connection fees, current portion | 1,677 | 1,604 |
Income tax payable | 1,427 | 997 |
Accrued liabilities | 27,620 | 27,674 |
Liabilities related to disposal group held for sale | 227 | |
Other payables, including capital lease obligations of 538 and 38, respectively | 3,986 | 1,498 |
Total current liabilities | 137,439 | 101,862 |
LONG-TERM LIABILITIES: | ||
Notes payable, net of current portion | 83,776 | 85,282 |
Debt, net of current portion | 157,084 | 108,792 |
Capital lease obligations, net of current portion | 8,857 | 10 |
Deferred connection fees, net of current portion | 1,760 | 2,045 |
Deferred taxes | 33,278 | 21,202 |
Retirement and post-retirement obligations | 1,055 | 1,059 |
Property, plant and equipment contributions | 2,327 | 2,428 |
Other long-term liabilities, including asset retirement obligations of 3,022 and 2,743, respectively | 4,234 | 3,859 |
Total long-term liabilities | 292,371 | 224,677 |
Total liabilities | 429,810 | 326,539 |
Commitments and contingencies | Â Â | Â Â |
Redeemable noncontrolling interest | 3,192 | 2,932 |
SHAREHOLDERS' EQUITY: | ||
Common stock (2,066,413,562 shares issued as of December 31, 2014 and 2013, 777,396,505 of which are in the form of ADS as of December 31, 2014 and 2013) | 207 | 207 |
Treasury stock (77,501,432 and 77,582,378 common shares at cost as of December 31, 2014 and 2013) | -24,464 | -24,482 |
Additional paid-in capital | 5,419 | 3,019 |
Accumulated other comprehensive loss | -6,294 | -15,030 |
Retained earnings | 191,081 | 188,217 |
Total equity attributable to the Group | 165,949 | 151,931 |
Nonredeemable noncontrolling interest | 9,976 | 4,122 |
Total equity | 175,925 | 156,053 |
Total liabilities and equity | 608,927 | 485,524 |
Licenses | ||
CURRENT ASSETS: | ||
INTANGIBLE ASSETS | 5,498 | 3,202 |
Other intangible assets | ||
CURRENT ASSETS: | ||
INTANGIBLE ASSETS | 56,971 | 38,423 |
CONSOLIDATED_STATEMENTS_OF_FIN1
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) (RUB) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Short-term investments, related party amounts | 9,849 | 14,633 |
Trade receivables, allowance for doubtful accounts | 2,165 | 3,753 |
Prepaid expenses, related party | 11,752 | 9,811 |
PROPERTY, PLANT AND EQUIPMENT, accumulated depreciation | 313,623 | 293,389 |
PROPERTY, PLANT AND EQUIPMENT, advances given to related parties | 254 | 367 |
DEBT ISSUANCE COSTS, accumulated amortization | 2,336 | 2,375 |
OTHER INVESTMENTS, related party | 14,969 | 4,392 |
OTHER NON-CURRENT ASSETS, asset derivatives | 21,944 | 1,837 |
OTHER NON-CURRENT ASSETS, deferred tax assets | 3,610 | 862 |
Other payables, capital lease obligations | 538 | 38 |
Other long-term liabilities, asset retirement obligations | 3,022 | 2,743 |
Common Stock, Shares, Issued | 2,066,413,562 | 2,066,413,562 |
Common stock, in the form of ADS (in shares) | 777,396,505 | 777,396,505 |
Treasury stock, common shares at cost (in shares) | 77,501,432 | 77,582,378 |
Related party | ||
Available-for-sale securities | 576 | 4,154 |
Short-term investments, related party amounts | 760 | 9,235 |
Prepaid expenses, related party | 322 | 123 |
OTHER INVESTMENTS, related party | 835 | 743 |
Licenses | ||
Accumulated amortization | 5,226 | 3,194 |
Advances to related parties | 5,498 | |
Other intangible assets | ||
Accumulated amortization | 65,785 | 58,153 |
Advances to related parties | 54,592 | |
Prepayments to related parties | ||
Advances to related parties | 88 | 232 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (RUB) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
NET OPERATING REVENUES | |||
Services revenue and connection fees (including related party amounts of 1,372 and 1,113 and 492, respectively) | 381,822 | 371,950 | 349,338 |
Sales of handsets and accessories | 28,936 | 26,493 | 28,902 |
Total net operating revenues | 410,758 | 398,443 | 378,240 |
OPERATING EXPENSES | |||
Cost of services, excluding depreciation and amortization shown separately below (including related party amounts of 1,985 and 1,186 and 692, respectively) | 89,589 | 83,777 | 83,051 |
Cost of handsets and accessories | 25,093 | 22,636 | 25,042 |
General and administrative expenses (including related party amounts of 2,096 and 2,047 and 2,097, respectively) | 90,971 | 85,458 | 77,977 |
Allowance for doubtful accounts | 3,266 | 3,106 | 2,606 |
Sales and marketing expenses (including related party amounts of 1,632 and 1,853 and 1,941, respectively) | 21,908 | 22,861 | 21,667 |
Depreciation and amortization expense | 74,710 | 73,253 | 67,910 |
Other operating expense / (income) (including related party amounts of (635) and 370 and (116), respectively | 4,468 | 5,594 | 6,193 |
Provision for investment in Delta Bank in Ukraine | 5,138 | ||
Gain from reentrance into Uzbekistan | -6,734 | ||
Net operating income | 102,349 | 101,758 | 93,794 |
CURRENCY EXCHANGE AND TRANSACTION LOSS / (GAIN) | -18,024 | -5,473 | 3,952 |
OTHER EXPENSES / (INCOME) | |||
Interest income (including related party amounts of 654 and 742 and 172, respectively) | -4,519 | -2,793 | -2,588 |
Interest expense, net of capitalized interest (including related party amounts of 41 and nil and 367, respectively) | 16,453 | 15,498 | 17,673 |
Equity in net loss / (income) of associates | 2,880 | -2,472 | -869 |
Other expenses / (income), net (including gain of (11,087) related to Bitel settlement in 2013 | 771 | -10,636 | 688 |
Total other expenses / (income), net | 15,585 | -403 | 14,904 |
Income from continuing operations before provision for income taxes | 68,740 | 96,688 | 82,842 |
PROVISION FOR INCOME TAXES | 16,347 | 19,633 | 19,384 |
NET INCOME FROM CONTINUING OPERATIONS | 52,393 | 77,055 | 63,458 |
NET INCOME / (LOSS) FROM DISCONTINUED OPERATIONS | 3,733 | -32,846 | |
NET INCOME | 52,393 | 80,788 | 30,612 |
LESS: NET INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST | -571 | -949 | -970 |
NET INCOME ATTRIBUTABLE TO THE GROUP | 51,822 | 79,839 | 29,642 |
OTHER COMPREHENSIVE INCOME / (LOSS), NET OF TAX | |||
Currency translation adjustment | 8,925 | -2,877 | -2,211 |
Unrealized gain on derivatives, net of tax of (700) and (361) and (64) | 2,801 | 1,445 | 255 |
Unrecognized actuarial gain / (loss), net of tax of (4) and (46) and 38 | 14 | 185 | -152 |
Other comprehensive income / (loss), net of tax | 11,740 | -1,247 | -2,108 |
TOTAL COMPREHENSIVE INCOME | 64,133 | 79,541 | 28,504 |
LESS: TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST | -3,575 | -1,056 | -772 |
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO THE GROUP | 60,558 | 78,485 | 27,732 |
Weighted average number of common shares outstanding, in thousands - basic and diluted | 1,988,757 | 1,988,849 | 1,988,919 |
Earnings per share attributable to the Group - basic and diluted, RUB | |||
EPS from continuing operations | 26.06 | 38.27 | 31.42 |
EPS from discontinued operations | 1.88 | -16.51 | |
Total EPS | 26.06 | 40.14 | 14.9 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Services revenue and connection fees, related party | 1,372 | 1,113 | 492 |
Cost of services, excluding depreciation and amortization, related party | 1,985 | 1,186 | 692 |
General and administrative expenses, related party | 90,971 | 85,458 | 77,977 |
Sales and marketing expenses, related party | 21,908 | 22,861 | 21,667 |
Other operating expenses | 4,468 | 5,594 | 6,193 |
Interest income, related party | 4,519 | 2,793 | 2,588 |
Interest expense, capitalized interest, related party | 16,453 | 15,498 | 17,673 |
Other (income) / expenses, net, gain related to Bitel settlement | -771 | 10,636 | -688 |
Bitel LLC | |||
Other (income) / expenses, net, gain related to Bitel settlement | -11,087 | ||
Related party | |||
General and administrative expenses, related party | 2,096 | 2,047 | 2,097 |
Sales and marketing expenses, related party | 1,632 | 1,853 | 1,941 |
Other operating expenses | -635 | 370 | -116 |
Interest income, related party | 654 | 742 | 172 |
Interest expense, capitalized interest, related party | 0 | 367 | |
Unrealized gain on derivatives, tax | -700 | -361 | -64 |
Unrecognized actuarial (loss)/gain, tax | -4 | -46 | 38 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (RUB) | Total equity attributable to the Group | Investments in ordinary shares | Treasury stock | Additional paid-in capital | Accumulated other comprehensive (loss)/income | Retained earnings | Non-redeemable noncontrolling interest | Redeemable noncontrolling interest | Total |
In Millions, except Share data, unless otherwise specified | |||||||||
Balances at Dec. 31, 2011 | 2,595 | ||||||||
Balances at Dec. 31, 2011 | 112,108 | 207 | -24,462 | 110 | -11,766 | 148,019 | 2,852 | 114,960 | |
Balances (in shares) at Dec. 31, 2011 | 2,066,413,562 | -77,496,725 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Net income | 29,642 | 29,642 | 694 | 30,336 | |||||
Net income | 276 | ||||||||
Other comprehensive income, net of tax | -1,910 | -1,910 | 41 | -239 | -1,869 | ||||
Dividends declared by MTS | -29,257 | -29,257 | -29,257 | ||||||
Dividends to noncontrolling interest | -367 | ||||||||
Change in fair value of noncontrolling interest of K-Telecom | -33 | -33 | 33 | -33 | |||||
Sale of own shares | 0 | 0 | 0 | ||||||
Sale of own shares (in shares) | 2,340 | ||||||||
Repurchase of own shares by MGTS (Note 23) | 57 | 57 | -319 | -262 | |||||
Disposal of Business-Nedvizhimost in 2013 Stream in 2012 and (Note 3) | 116 | 116 | 116 | ||||||
Balances at Dec. 31, 2012 | 2,298 | ||||||||
Balances at Dec. 31, 2012 | 110,723 | 207 | -24,462 | 283 | -13,676 | 148,371 | 3,268 | 113,991 | |
Balances (in shares) at Dec. 31, 2012 | 2,066,413,562 | -77,494,385 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Net income | 79,839 | 79,839 | 693 | 80,532 | |||||
Net income | 256 | ||||||||
Other comprehensive income, net of tax | -1,354 | -1,354 | 10 | 97 | -1,344 | ||||
Issuance of stock options (Note 2) | 94 | 94 | 94 | ||||||
Dividends declared by MTS | -39,419 | -39,419 | -39,419 | ||||||
Dividends to noncontrolling interest | -293 | ||||||||
Change in fair value of noncontrolling interest of K-Telecom | -574 | -574 | 574 | -574 | |||||
Sale of own shares | -1 | 0 | -1 | -1 | |||||
Sale of own shares (in shares) | 2,888 | ||||||||
Disposal of Business-Nedvizhimost in 2013 Stream in 2012 and (Note 3) | 2,641 | 2,641 | 151 | 2,792 | |||||
Acquisition of own stock | -20 | -20 | -20 | ||||||
Acquisition of own stock (in shares) | -90,881 | ||||||||
Balances at Dec. 31, 2013 | 2,932 | 2,932 | |||||||
Balances at Dec. 31, 2013 | 151,931 | 207 | -24,482 | 3,019 | -15,030 | 188,217 | 4,122 | 156,053 | |
Balances (in shares) at Dec. 31, 2013 | 2,066,413,562 | -77,582,378 | 2,066,413,562 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Net income | 51,822 | 51,822 | 190 | 52,012 | |||||
Net income | 381 | ||||||||
Other comprehensive income, net of tax | 8,736 | 8,736 | 2,312 | 692 | 11,048 | ||||
Issuance of stock options (Note 2) | 167 | 167 | 167 | ||||||
Dividends declared by MTS | -49,325 | -49,325 | -49,325 | ||||||
Dividends to noncontrolling interest | -357 | -249 | -357 | ||||||
Change in fair value of noncontrolling interest of K-Telecom | 564 | 564 | -564 | 564 | |||||
Sale of own shares | -24 | -20 | -4 | -24 | |||||
Sale of own shares (in shares) | 90,881 | ||||||||
Acquisition of own stock | -2 | -2 | -2 | ||||||
Acquisition of own stock (in shares) | -9,935 | ||||||||
Consolidation of UMS | 3,565 | 3,565 | |||||||
Investments in shares of entities under common control | -599 | -354 | -245 | -3 | -602 | ||||
Sale of building to Sistema | 232 | 232 | 13 | 245 | |||||
Disposal of Business-Nedvizhimost (Note 25) | 2,351 | 2,351 | 134 | 2,485 | |||||
Other | -48 | -48 | -48 | ||||||
Balances at Dec. 31, 2014 | 3,192 | 3,192 | |||||||
Balances at Dec. 31, 2014 | 165,949 | 207 | -24,464 | 5,419 | -6,294 | 191,081 | 9,976 | 175,925 | |
Balances (in shares) at Dec. 31, 2014 | 2,066,413,562 | -77,501,432 | 2,066,413,562 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | 52,393 | 80,788 | 30,612 |
Net (income) / loss from discontinued operations | -3,733 | 32,846 | |
Net income from continuing operations | 52,393 | 77,055 | 63,458 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 74,710 | 73,253 | 67,910 |
Gain from reentrance into Uzbekistan | -6,734 | ||
Non cash provision for cash funds and related interest in Delta bank | 5,138 | ||
Currency exchange and transaction loss / (gain) | 18,024 | 5,473 | -3,952 |
Debt issuance cost amortization | 645 | 784 | 952 |
Amortization of deferred connection fees | -1,912 | -1,921 | -2,287 |
Equity in net loss / (income) of associates | 2,880 | -2,472 | -869 |
Allowance for doubtful accounts | 3,266 | 3,106 | 2,606 |
Inventory obsolescence expense | 357 | 660 | 759 |
Deferred tax expense | 6,540 | 9,671 | 3,290 |
Other non-cash items | 328 | -192 | 461 |
Changes in operating assets and liabilities: | |||
Decrease/(increase) in trade receivables | 4,466 | -3,474 | -8,489 |
Decrease/(increase) in inventory and spare parts | 731 | -592 | -61 |
Decrease/(increase) in prepaid expenses and other current assets | 777 | -2,966 | -727 |
(Increase) / decrease in VAT receivable | -1,058 | -1,190 | 673 |
Decrease/(increase) in trade payables, accrued liabilities and other current liabilities | -3,616 | 8,136 | 9,365 |
(Decrease) / increase in liability for Bitel | -7,238 | 241 | |
Dividends received | 2,650 | 1,831 | 1,526 |
Net cash provided by operating activities - continuing operations | 159,518 | 159,924 | 134,856 |
Net cash used in operating activities - discontinued operations | -547 | -2,733 | |
NET CASH PROVIDED BY OPERATING ACTIVITES | 159,518 | 159,377 | 132,123 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of subsidiaries, net of cash acquired | -2,755 | -1,937 | |
Purchases of property, plant and equipment | -74,243 | -67,146 | -79,836 |
Purchases of intangible assets | -18,356 | -14,429 | -7,947 |
Proceeds from sale of property, plant and equipment | 619 | 418 | 395 |
Purchases of short-term investments | -35,923 | -37,623 | -33,474 |
Proceeds from sale of short-term investments | 47,619 | 27,785 | 31,548 |
Purchase of other investments | -34,613 | -703 | -2,100 |
Proceeds from sales of other investments | 19,831 | 2,029 | |
Investments in and advances to associates | -7,767 | -5,088 | |
Net cash used in investing activities - continuing operations | -105,588 | -96,786 | -91,322 |
Net cash provided by / (used in) investing activities - discontinued operations | 115 | -2,045 | |
NET CASH USED IN INVESTING ACTIVITIES | -105,588 | -96,671 | -93,367 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Cash payments for the acquisitions of subsidiaries from entities under common control and noncontrolling interests | -26 | -261 | |
Contingent consideration paid on acquisition of subsidiaries | -20 | ||
Proceeds from issuance of notes | 2 | 25,651 | |
Repayment of notes | -23,152 | -6,195 | -25,561 |
Notes and debt issuance cost | -360 | -193 | |
Reimbursement of debt issuance cost | 959 | ||
Capital lease obligation principal paid | -227 | -202 | -213 |
Dividends paid | -49,921 | -39,706 | -29,626 |
Proceeds on disposal of Business-Nedvizhimost, net of cash disposed | 3,068 | ||
Cash on sale of building to Sistema | 508 | ||
Cash deconsolidated on the loss of control over Stream | -227 | ||
Proceeds from loans | 69,421 | 353 | 17,955 |
Loan principal paid | -29,437 | -38,996 | -37,394 |
Other financing activities | 21 | 116 | 1 |
Net cash used in financing activities - continuing operations | -33,171 | -55,145 | -75,346 |
NET CASH USED IN FINANCING ACTIVITIES | -33,171 | -55,145 | -75,346 |
Effect of exchange rate changes on cash and cash equivalents | 10,195 | 1,037 | -985 |
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | 30,954 | 8,598 | -37,575 |
CASH AND CASH EQUIVALENTS, beginning of the year | 30,612 | 22,014 | 59,589 |
CASH AND CASH EQUIVALENTS, end of the year | 61,566 | 30,612 | 22,014 |
Less: cash and cash equivalents from discontinued operations, end of the year | -411 | ||
CASH AND CASH EQUIVALENTS from continuing operations, end of the year | 61,566 | 30,612 | 21,603 |
Less: cash and cash equivalents within disposal group held for sale | -156 | ||
CASH AND CASH EQUIVALENTS, end of the year | 61,410 | 30,612 | 21,603 |
SUPPLEMENTAL INFORMATION: | |||
Income taxes paid | 9,906 | 11,590 | 17,050 |
Interest paid | 17,134 | 15,979 | 19,104 |
Non-cash investing and financing activities: | |||
Amounts owed for capital expenditures | 21,935 | 3,908 | 3,502 |
Payables related to business acquisitions | 99 | 11 | 277 |
Capital lease obligations | 9,395 | 48 | 212 |
DESCRIPTION_OF_BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2014 | |
DESCRIPTION OF BUSINESS | |
DESCRIPTION OF BUSINESS | |
1. DESCRIPTION OF BUSINESS | |
        Business of the Group—Open Joint-Stock Company Mobile TeleSystems ("MTS OJSC", or "the Company") was incorporated on March 1, 2000, through the merger of MTS CJSC and Rosico TC CJSC, its wholly-owned subsidiary. MTS CJSC started its operations in the Moscow license area in 1994 and then began expanding through Russia and the CIS. MTS OJSC's majority shareholder is Joint-Stock Financial Corporation Sistema or "Sistema". | |
        In these notes, "MTS" or the "Group" refers to Mobile TeleSystems OJSC and its subsidiaries. | |
        The Group provides a wide range of telecommunications services including voice and data transmission, internet access, pay TV, various value added services through wireless and fixed lines, as well as selling equipment and accessories. The Group's principal operations are located in Russia, Ukraine, Turkmenistan, Uzbekistan and Armenia. | |
        MTS completed its initial public offering in 2000 and listed its shares of common stock, represented by American Depositary Shares, or ADSs, on the New York Stock Exchange under the symbol "MBT". Since 2003 common shares of MTS OJSC have been traded on the Open Joint-Stock Company "Moscow Exchange MICEX-RTS" ("Moscow Exchange"). | |
        Since 2009, the Group has been developing its own retail network, operated by Russian Telephone Company CJSC ("RTC"), a wholly owned subsidiary of MTS OJSC. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS | ||||||||||
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS | ||||||||||
        Accounting principles—The Group's entities maintain accounting books and records in local currencies of their domicile in accordance with the requirements of respective accounting and tax legislation. The accompanying consolidated financial statements have been prepared in order to present MTS' financial position and its results of operations and cash flows in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and are expressed in terms of Russian Rubles. | ||||||||||
        The accompanying consolidated financial statements differ from the financial statements used for statutory purposes in that they reflect certain adjustments, not recorded on the entities' books, which are appropriate to present the financial position, results of operations and cash flows in accordance with U.S. GAAP. The principal adjustments are related to revenue recognition, foreign currency translation, deferred taxation, consolidation, acquisition accounting, depreciation and valuation of property, plant and equipment, intangible assets and investments. | ||||||||||
        Basis of consolidation—The consolidated financial statements include the accounts of the Company, as well as entities where the Company has operating and financial control, most often through the direct or indirect ownership of a majority voting interest. Those ventures where the Group exercises significant influence but does not have operating and financial control are accounted for using the equity method. Investments in which the Group does not have the ability to exercise significant influence over operating and financial policies are accounted for under the cost method and included in long-term investments in the consolidated statements of financial position. The consolidated financial statements also include accounts of variable interest entities ("VIEs") in which the Group is deemed to be the primary beneficiary. An entity is generally a VIE if it meets any of the following criteria: (i) the entity has insufficient equity to finance its activities without additional subordinated financial support from other parties, (ii) the equity investors cannot make significant decisions about the entity's operations or (iii) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity or receive the expected returns of the entity and substantially all of the entity's activities involve or are conducted on behalf of the investor with disproportionately few voting rights. All significant intercompany transactions, balances and unrealized gains and losses on transactions have been eliminated. | ||||||||||
        As of December 31, 2014 and 2013, the Company had investments in the following significant legal entities: | ||||||||||
                                                                                                                                                                                    | ||||||||||
December 31, | ||||||||||
Accounting | ||||||||||
method | 2014 | 2013 | ||||||||
MTS Turkmenistan | Consolidated | 100.0Â | % | 100.0Â | % | |||||
MTS Bermuda(1) | Consolidated | 100.0Â | % | 100.0Â | % | |||||
MTS Finance | Consolidated | 100.0Â | % | 100.0Â | % | |||||
MTS Ukraine | Consolidated | 100.0Â | % | 100.0Â | % | |||||
RTC | Consolidated | 100.0Â | % | 100.0Â | % | |||||
Sibintertelecom | Consolidated | 100.0Â | % | 100.0Â | % | |||||
TVT(2) | Consolidated | — | 100.0 | % | ||||||
Sputnikovoe TV | Consolidated | 100.0Â | % | 100.0Â | % | |||||
Sistema Telecom(2) | Consolidated | — | 100.0 | % | ||||||
Elf Group(2) | Consolidated | — | 100.0 | % | ||||||
Intercom(2) | Consolidated | — | 100.0 | % | ||||||
Zheleznogorsk City Telephone Communications ("ZhelGorTeleCom")(2) | Consolidated | — | 100.0 | % | ||||||
Pilot(2) | Consolidated | — | 100.0 | % | ||||||
TVKiK(2) | Consolidated | — | 100.0 | % | ||||||
Dega | Consolidated | 100.0Â | % | 100.0Â | % | |||||
SMARTS | Consolidated | 100.0 | % | — | ||||||
Metro-Telecom | Consolidated | 95.0Â | % | 95.0Â | % | |||||
MGTS | Consolidated | 94.6Â | % | 94.6Â | % | |||||
K-Telecom | Consolidated | 80.0Â | % | 80.0Â | % | |||||
UMS | Consolidated | 50.01 | % | — | ||||||
MTS International Funding Limited ("MTS International") | Consolidated | VIE | VIE | |||||||
Intellect Telecom | Equity | 47.3Â | % | 47.3Â | % | |||||
Stream | Equity | 45.0Â | % | 45.0Â | % | |||||
MTS Belarus | Equity | 49.0Â | % | 49.0Â | % | |||||
MTS Bank | Equity | 27.0Â | % | 26.3Â | % | |||||
OZON Holdings Limited | Equity | 10.8 | % | — | ||||||
-1 | A wholly-owned subsidiary established to repurchase the Group's ADSs. | |||||||||
-2 | Merged with MTS OJSC on October 1, 2014. | |||||||||
        The Group consolidates MTS International, a private company organized and existing as a private limited company under the laws of Ireland, which qualifies as a variable interest entity under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, Consolidation. | ||||||||||
        The Group is the primary beneficiary of MTS International. MTS International was established for the purpose of raising capital through the issuance of debt securities on the Irish Stock Exchange followed by transferring the proceeds through a loan facility to the Group. In 2010 and 2013, MTS International issued $750 million 8.625% notes due in 2020 and $500 million 5.0% notes due in 2023, respectively (Note 17). In 2014 the Group repurchased Notes due in 2020 and 2023 with a nominal value of $126.9 million (RUB 5,043 million) and $21.5 million (RUB 781 million), respectively. The notes are guaranteed by MTS OJSC in the event of default. While the Group does not hold any equity in MTS International, it has concluded that it is the primary beneficiary by virtue of the fact that it has the power to direct the activities of MTS International that most significantly impact its performance and by virtue of the guarantee that exists which means the Group has the obligation to absorb losses of MTS International that could potentially be significant to MTS International. | ||||||||||
        The table below summarizes the assets and liabilities of MTS International as of December 31, 2014 and 2013: | ||||||||||
                                                                                                                                                                                    | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Cash and cash equivalents | 3Â | 1Â | ||||||||
Intercompany receivable from MTS OJSC(1) | 70,535Â | 41,035Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Total assets | 70,538Â | 41,036Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||
Interest payable(2) | 212Â | 123Â | ||||||||
Notes payable due 2020 and 2023(3) | 70,323Â | 40,912Â | ||||||||
Other payables | 3Â | 1Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Total liabilities | 70,538Â | 41,036Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||
-1 | Eliminated in the Group consolidated statements of financial position. | |||||||||
-2 | Relates to MTS International Notes due 2020 and 2023, thereof RUB 187 million and RUB 123 million are included in accrued liabilities in the Group consolidated statements of financial position as of December 31, 2014 and 2013, respectively. | |||||||||
-3 | RUB 61,977 million and RUB 40,912 million are included in notes payable, net of current portion, in the Group consolidated statements of financial position as of December 31, 2014 and 2013, respectively (Note 17). | |||||||||
        The MTS International Notes due 2020 and 2023 and related interest payable are fully covered by intercompany receivables from MTS OJSC. MTS International does not perform any other activities except those required for notes servicing. The Group bears all costs incurred by MTS International in connection with the notes' maintenance activities. Such costs for the years ended December 31, 2014, 2013 and 2012 amounted to RUB 4,080 million, RUB 2,535 million and RUB 2,011 million, respectively, and were included in interest expense reported by the Group in the consolidated statements of operations and comprehensive income. | ||||||||||
        Functional currency translation methodology—As of December 31, 2014, the functional currencies of Group entities were as follows: | ||||||||||
• | For entities incorporated in the Russian Federation, MTS Bermuda, MTS Finance, Dega and MTS International—the Russian Ruble ("RUB"); | |||||||||
• | For MTS Ukraine—the Ukrainian Hryvna; | |||||||||
• | For MTS Turkmenistan—the Turkmenian Manat; | |||||||||
• | For K-Telecom—the Armenian Dram; | |||||||||
• | For UMS—the US Dollar; | |||||||||
• | For MTS Belarus—the Russian Ruble. | |||||||||
        Remeasurement of the financial statements into functional currencies, where applicable, and translation of financial statements into Russian Rubles has been performed as follows: | ||||||||||
        For entities whose records are not maintained in their functional currencies, monetary assets and liabilities have been remeasured at the period-end exchange rates. Non-monetary assets and liabilities have been remeasured at historical rates. Revenues, expenses and cash flows have been remeasured at average rates. Remeasurement differences resulting from the use of these rates have been accounted for as currency exchange and translation gains and losses in the accompanying consolidated statements of operations and comprehensive income. | ||||||||||
        For entities whose records are maintained in their functional currency, which is other than the reporting currency, all year-end assets and liabilities have been translated into U.S. Dollars at the period-end exchange rate set by local central banks. Subsequently U.S. Dollars balances have been translated into Russian Rubles at the period-end exchange rate set by the Central Bank of Russia. Revenues and expenses have been translated at the average exchange rate for the period using cross-currency exchange rate via U.S. Dollar as described above. Translation differences resulting from the use of these rates are reported as a component of accumulated other comprehensive income in the consolidated statements of financial position. | ||||||||||
        Management estimates—The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||
        Significant estimates include the allowance for doubtful accounts and inventory obsolescence, valuation allowance for deferred tax assets for which it is more likely than not the assets will not be realized, the valuation of assets acquired and liabilities assumed in business combinations and income tax benefits, the recoverability of investments and the valuation of goodwill, intangible assets, other long-lived assets, redeemable noncontrolling interest, certain accrued liabilities and financial instruments. | ||||||||||
        Cash and cash equivalents—Cash and cash equivalents represent cash on hand and in bank accounts and short-term investments, including term deposits, having original maturities of less than three months. The carrying value of these investments approximates their fair value. | ||||||||||
        Short-term investments—Short-term investments mainly represent investments in loans, time deposits, which have original maturities in excess of three months and are repayable in less than twelve months, as well as investments in a mutual investment fund and debt securities. The investment in the mutual investment fund and debt securities were classified as available for sale and carried at fair value with unrealized gains and losses recorded as part of other comprehensive income. Deposits and loans are carried at amortized cost (Note 7). | ||||||||||
        Other investments—Other investments consist primarily of long-term deposits, which are repayable in more than a year, loans and equity holdings in private companies. Deposits and loans are classified as held to maturity and carried at amortized cost. The Group reviews these investments for indicators of impairment on a regular basis. Investments in shares of companies over which the Group has no significant influence are carried at cost. The Group does not evaluate cost-method investments for impairment unless there is an indicator of impairment. | ||||||||||
        Property, plant and equipment—Property, plant and equipment, including improvements, are stated at cost. Property, plant and equipment with a useful life of more than one year is capitalized at historical cost and depreciated on a straight-line basis over its expected useful life. Construction in progress and equipment held for installation is not depreciated until the constructed or installed asset is ready for its intended use. Maintenance and repair costs are expensed as incurred, while upgrades and improvements are capitalized. | ||||||||||
        Other intangible assets—Other intangible assets primarily consist of billing, telecommunication, accounting and office software as well as numbering capacity and customer base. These assets are assets with finite useful lives. They are recognized at cost and amortized on a straight-line basis over their estimated useful lives. | ||||||||||
        Accounts receivable—Accounts receivable are stated net of allowance for doubtful accounts. | ||||||||||
        Allowance for doubtful accounts—The Group provides an allowance for doubtful accounts based on management's periodic review with respect to the recoverability of trade receivables, advances given, loans and other receivables. Such allowance reflects specific cases, collection trends or estimates based on evidence of collectability. For changes in the allowance for doubtful accounts receivable see Note 8. | ||||||||||
        Inventory and spare parts—Inventory is stated at the lower of cost or market value. Inventory cost is determined using the weighted average cost method. Handsets and accessories held for sale are expensed when sold. The Group regularly assesses its inventories for obsolete and slow-moving stock. | ||||||||||
        Value-added tax ("VAT")—Value-added tax related to sales is payable to the tax authorities on an accrual basis based upon invoices issued to the customer. VAT incurred for purchases may be reclaimed from the state, subject to certain restrictions, against VAT related to sales. | ||||||||||
        Income taxes—Income taxes of the Group's Russia-incorporated entities have been computed in accordance with Russian legislation. The corporate income tax rate in Russia is 20%. The income tax rate on dividends paid within Russia is 9%. The foreign subsidiaries of the Group are paying income taxes in their respective jurisdictions. Deferred tax assets and liabilities are recognized for differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the tax bases of assets and liabilities that will result in future taxable or deductible amounts. The deferred tax assets and liabilities are measured using the enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In making such determination, the Group considers all available information, including future reversals of existing taxable temporary differences, projected taxable income, tax strategies and recent financial results. | ||||||||||
        Uncertain tax positions are recognized in the consolidated financial statements for positions which are considered more likely than not of being sustained based on the technical merits of the position on audit by the tax authorities. The measurement of the tax benefit recognized in the consolidated financial statements is based upon the largest amount of tax benefit that, in management's judgment, is more than 50% likely of being realized based on a cumulative probability assessment of the possible outcomes. | ||||||||||
        The Group recognizes interest and penalties related to unrecognized tax benefits within income taxes. | ||||||||||
        Assets held for sale—The Group classifies assets and liabilities as held for sale when all the following conditions have been met: (i) management having the authority to approve the action, commits to a plan to sell the asset (disposal group); (ii) the asset (disposal group) is available for immediate sale in its present condition; (iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (iv) the sale is probable and transfer of the assets (disposal group) is expected to qualify for recognition as a completed sale, within one year; (v) the asset (the disposal group) is being marketed at a reasonable price; and (vi) it is unlikely that the plan will be changed significantly or withdrawn. Held for sale assets are measured at the lower of carrying amount or fair value less cost to sell. | ||||||||||
        Asset retirement obligations—The Group calculates asset retirement obligations and an associated asset retirement cost when the Group has a legal or constructive obligation in connection with the retirement of tangible long-lived assets. The Group's obligations relate primarily to the cost of removing its equipment from sites. The Group recorded the present value of asset retirement obligations as other long-term liabilities in the consolidated statements of financial position. | ||||||||||
        License costs—License costs are being amortized during the initial license period without consideration of possible future renewals, subject to periodic review for impairment, on a straight-line basis over the period of validity, which varies from three to fifteen years. | ||||||||||
        Goodwill—For acquisitions before January 1, 2009 goodwill represents the excess of the consideration paid over the fair value of the net identifiable assets acquired in business combinations and is not amortized. For acquisitions after January 1, 2009 goodwill is determined as the excess of the consideration transferred plus the fair value of any noncontrolling interest in the acquiree at the acquisition date over the fair values of the identifiable net assets acquired. Goodwill is reviewed for impairment at least annually or whenever it is determined that one or more impairment indicators exist. The Group determines whether impairment has occurred by assigning goodwill to the reporting unit identified in accordance with FASB ASC 350, Intangibles—Goodwill and Other, and comparing the carrying amount of the reporting unit to its fair value. If an impairment of goodwill has occurred, the Group recognizes a loss for the difference between the carrying amount and the implied fair value of goodwill. During the year ended December 31, 2012 the Group recognized goodwill impairment in amount of RUB 3,523 million related to Uzdunrobita litigation (Note 4) which is included in net income / (loss) from discontinued operations in the consolidated statements of operations and comprehensive income. | ||||||||||
        Impairment of long-lived assets—The Group periodically evaluates the recoverability of the carrying amount of its long-lived assets. Whenever events or changes in circumstances indicate that the carrying amounts of those assets may not be recoverable, the Group compares undiscounted net cash flows estimated to be generated by those assets to their carrying amount. When the undiscounted cash flows are less than the carrying amounts of the assets, the Group records impairment losses to write the assets down to fair value, measured by estimating the discounted net future cash flows expected to be generated from the use of the assets. None of the Group's long-lived assets were impaired in 2014 and 2013. An impairment loss in the amount of RUB 16,514 million for the year ended December 31, 2012 was recognized by the Group subsidiaries in Uzbekistan as a result of the events described in Note 4 and included in net income / (loss) from discontinued operations. | ||||||||||
        Subscriber prepayments—The Group requires the majority of its customers to pay in advance for telecommunications services. All amounts received in advance of services provided are recorded as a subscriber prepayment liability and are not recognized as revenues until the related services have been provided to the subscriber. | ||||||||||
        Treasury stock—Shares of common stock repurchased by the Group are recorded at cost as treasury stock and reduce the shareholders' equity in the Group's consolidated financial statements. | ||||||||||
        Revenue recognition—Revenue includes all revenues from the ordinary business activities of the Group. Revenues are recorded net of value-added tax and recognized in the accounting period in which they are earned in accordance with the realization principle. | ||||||||||
        Revenues derived from wireless, local telephone, long distance, data and video services are recognized when services are provided. This is based upon either usage (minutes of traffic processed, volume of data transmitted) or period of time (monthly subscription fees). | ||||||||||
        Content revenue is presented net of related costs when the Group acts as an agent of the content providers while gross revenue and related costs are recorded when the Group acts as a primary obligor in the arrangement. | ||||||||||
        Upfront fees received for connection of new subscribers, installation and activation of wireless, wireline and data transmission services ("connection fees") are deferred and recognized over the estimated average subscriber life, as follows: | ||||||||||
                                                                                                                                                                                    | ||||||||||
Mobile subscribers | 1Â year - 12.5Â years | |||||||||
Residential wireline voice phone subscribers | 15Â years | |||||||||
Residential subscribers of broadband internet service | 1Â year | |||||||||
Other fixed line subscribers | 3 - 5Â years | |||||||||
        The Group calculates an average life of mobile subscribers for each region in which it operates and amortizes connection fees based on the average life specific to that region. | ||||||||||
        Regulated services—Regulated services provided by the Group primarily consist of local telephone services and services rendered to other operators, such as traffic charges, connection fees and line rental services. Changes in the rate structure for such services are subject to the Federal Tariff Service approval. | ||||||||||
        Revenue from regulated tariff services represented approximately 5.2%, 5.7% and 6.5% of the consolidated revenue for the years ended December 31, 2014, 2013 and 2012, respectively. This does not include revenue attributable to discontinued operations (Note 4). | ||||||||||
        Leasing arrangements—The Group classifies lease arrangements as capital or operating leases depending on their nature. Rentals payable under operating leases are charged to the statement of operations and comprehensive income on a straight line basis over the term of the relevant lease. For capital leases, the present value of future minimum lease payments at the inception of the lease is recognised as an asset and a liability in the statement of financial position. | ||||||||||
        Customer incentives—Incentives provided to customers are usually offered on signing a new contract or as part of a promotional offering. Incentives, representing the reduction of the selling price of the service (free minutes and discounts) are recorded in the period to which they relate, when the respective revenue is recognized, as a reduction to both trade receivables and service revenue. | ||||||||||
        The Group regularly provides special incentives to its retail customers. Generally the Group sells mobile devices of worldwide known brands with an offer of free telecommunication services for a time period from one to twelve months. Such arrangements with a customer provide for two deliverables—a mobile device delivered immediately and mobile services to be consumed in the future. Both deliverables in the arrangement qualify as separate units of accounting. The consideration received from a customer is allocated between the deliverables based on their standalone value on the market, which is deemed to be a vendor-specific objective evidence of selling price. Revenue on the devices sales is recognized at the moment of their sale, and the revenue on provision of free telecommunication services is deferred and recognized in line with their consumption by a subscriber. Revenue generated from multiple-element arrangements in the amount of RUB 961 million and RUB 3,276 million were recognized in the consolidated statements of operations and comprehensive income for the years ended December 31, 2014 and 2013, respectively. The amount recognized for the year ended December 31, 2012 was not significant. The Group's multiple-element arrangements stipulate no performance-, cancellation-, termination- and refund-type provisions. | ||||||||||
        Prepaid cards—The Group sells prepaid cards to subscribers separately from the handset. Prepaid cards, used as a method of cash collection, are accounted for as customer advances. These cards allow subscribers to make a predetermined allotment of wireless phone calls and / or take advantage of other services offered by the Group, such as short messages and value-added services. Revenue from the sale of prepaid cards is deferred until the service is rendered to the customer, whereby the customer uses the airtime or the card expires. | ||||||||||
        Roaming discounts—The Group enters into roaming discount agreements with a number of wireless operators. According to the terms of the agreements the Group is obliged to provide and entitled to receive a discount that is generally dependent on the volume of inter operator roaming traffic. The Group accounts for discounts received from and granted to roaming partners in accordance with FASB ASC 650, Revenue Recognition. The Group uses various estimates and assumptions, based on historical data and adjusted for known changes, to determine the amount of discount to be received or granted. Such estimates are adjusted monthly to reflect newly-available information. | ||||||||||
        The Group accounts for discounts received as a reduction of roaming expenses and discounts granted as reduction of roaming revenue. The Group considers terms of the various roaming discount agreements in order to determine the appropriate presentation of the amounts receivable from and payable to its roaming partners in its consolidated statements of financial position. | ||||||||||
        Sales and marketing expenses—Sales and marketing expenses consist primarily of dealers' commissions and advertising costs. Dealers' commissions are linked to revenues received during the six-month period from the date a new subscriber is activated by a dealer. The Group expenses these costs as incurred. Advertising costs for the years ended December 31, 2014, 2013 and 2012, were RUB 8,313 million, RUB 8,463 million and RUB 7,908 million, respectively. | ||||||||||
        Retirement benefit and social security costs—The Group contributes to the local state pension and social funds on behalf of all its employees. | ||||||||||
        In Russia all social contributions paid during the year ended December 31, 2014 are represented by payments to governmental social funds, including the Pension Fund of the Russian Federation, the Social Security Fund of the Russian Federation and the Medical Insurance Fund of the Russian Federation. The contributions are expensed as incurred. The amount of social contributions recognized by the Group in Russia amounted to RUB 8,064 million, RUB 7,535 million and RUB 6,512 million in 2014, 2013 and 2012, respectively. | ||||||||||
        MGTS, a subsidiary of the Group, has historically offered its employees certain benefits upon and after retirement. The cost of such benefits includes interest costs, current service costs, amortization of prior service costs and net actuarial loss / gain. The expense is recognized during an employee's years of active service with MGTS. The recognition of expense for retirement pension plans is impacted by estimates made by management such as discount rates used to value certain liabilities, expected return on assets, future rates of compensation increase and other related assumptions. The Group accounts for pension plans in accordance with FASB ASC 715, Compensation—Retirement Benefits. | ||||||||||
        In Ukraine, Uzbekistan, Turkmenistan and Armenia the subsidiaries of the Group are required to contribute a specified percentage of each employee's payroll up to a fixed limit to the local pension, unemployment and social security funds. Payments to the pension fund in Ukraine amounted to RUB 1,535 million, RUB 2,803 million and RUB 2,493 million for the years ended December 31, 2014, 2013 and 2012, respectively. Amounts contributed to the pension funds in Uzbekistan, Turkmenistan and Armenia were not significant. | ||||||||||
        Redeemable noncontrolling interest—From time to time, to optimize the structure of business acquisitions and to defer payment of the purchase price, the Group enters into put and call option agreements to acquire the remaining noncontrolling stakes in newly acquired subsidiaries. As these put and call option agreements are not freestanding, the underlying shares of such put and call options are classified as redeemable securities and are accounted for at redemption value which is the fair value of redeemable noncontrolling interests as of the reporting date. The fair value of redeemable noncontrolling interests is measured using discounted future cash flows techniques, subject to applicable caps. The noncontrolling interest is measured at fair value using a discounted cash flow technique utilizing significant unobservable inputs ("Level 3" significant unobservable inputs of the hierarchy established by the U.S. GAAP guidance). Changes in the redemption value of redeemable noncontrolling interests are accounted for in the Group's retained earnings. Redeemable noncontrolling interests are presented as temporary equity in the consolidated statements of financial position. | ||||||||||
        Financial instruments and hedging activities—The Group uses derivative instruments, including interest rate and foreign currency swaps, to manage foreign currency and interest rate risk exposures. The Group measures derivatives at fair value and recognizes them as either other current or other non-current assets or liabilities in the consolidated statements of financial position. Cash flows from derivatives are classified according to their nature. The Group reviews its fair value hierarchy classifications on a quarterly basis. Changes in significant observable valuation inputs identified during these reviews may trigger reclassification of fair value hierarchy levels of financial assets and liabilities. During the years ended December 31, 2014, 2013 and 2012, no reclassifications occurred. The fair value measurement of the Group's derivative instruments is based on the observable yield curves for similar instruments ("Level 2" of the hierarchy established by the U.S. GAAP guidance). | ||||||||||
        The Group designates derivatives as either fair value hedges or cash flow hedges in case the required criteria are met. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the consolidated statements of operations and comprehensive income together with any changes in the fair value of the hedged asset or liability that is attributed to the hedged risk. | ||||||||||
        The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in accumulated other comprehensive income. Gains and losses associated with the related hedged items are recognized in the consolidated statements of operations and comprehensive income, depending on their nature. | ||||||||||
        The gain or loss relating to the ineffective portion is recognized immediately in earnings in the consolidated statements of operations and comprehensive income. | ||||||||||
        For derivatives that do not meet the conditions for hedge accounting, gains and losses from changes in the fair value are included in the consolidated statements of operations and comprehensive income (Note 21). | ||||||||||
        Assets and liabilities related to multiple derivative contracts with one counterparty are not offset by the Group. | ||||||||||
        The Group does not use financial instruments for trading or speculative purposes. | ||||||||||
        Fair value of financial instruments—The fair value of financial instruments, consisting of cash and cash equivalents, short-term investments, receivables and payables, which are included in current assets and liabilities, approximates the carrying value of these items due to the short-term nature of these amounts. The fair value of issued notes as of December 31, 2014 is disclosed in Note 17 and is based on quoted prices in active markets ("Level 1" of the hierarchy established by the U.S. GAAP guidance). The fair value of variable rate debt approximates its carrying value as of December 31, 2014. The fair value of fixed rate bank loans is disclosed in Note 22 and is measured by discounting future cash flows using current market rates. | ||||||||||
        Fair value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: | ||||||||||
• | Level 1—Quoted prices in active markets for identical assets or liabilities; | |||||||||
• | Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities; | |||||||||
• | Level 3—No observable pricing inputs in the market. | |||||||||
        Financial assets and financial liabilities are classified in three-tier hierarchy based on the lowest level of input that is significant to the fair value measurements. The Group's assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. | ||||||||||
        Stock-based compensation—The Group accounts for stock-based compensation under FASB ASC 718, Compensation—Stock Compensation. Under the provisions of this guidance, companies must calculate and record the cost of equity instruments, such as stock options awarded to employees for services received, in the statements of operations and comprehensive income. The cost of the equity instruments is to be measured based on the fair value of the instruments on the date they are granted (with certain exceptions) and recognized over the period during which the employees are required to provide services in exchange for equity instruments. Compensation cost related to phantom stock options granted to the Group's employees recognized in the consolidated statements of operations and comprehensive income for the years ended December 31, 2014, 2013 and 2012 amounted to and RUB 1,017.2 million, RUB 483.0 million and RUB 1,445.8 million, respectively. | ||||||||||
        Concentration of credit risk—Financial instruments that potentially subject the Group to significant concentrations of credit risk consist principally of cash and cash equivalents, investments, trade accounts receivable, loans and derivatives. The Group maintains cash and cash equivalents, investments, derivatives and certain other financial instruments with various financial institutions. These financial institutions are located in many different geographical regions, and the Group's policy is designed to limit exposure to any one institution. As part of its risk management processes, the Group performs periodic evaluations of the relative credit ratings of financial institutions (refer to Note 5 for description of political and economic risks in Ukraine). | ||||||||||
        Concentrations of credit risk with respect to trade receivables are limited due to a highly diversified customer base, which includes a large number of individuals, private businesses and state-financed institutions. | ||||||||||
        New and recently adopted accounting pronouncements—In May 2014, FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Group is required to adopt the amendments in the reporting period starting after December 15, 2017. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Group is currently evaluating the impact of these amendments and the transition alternatives on the consolidated financial statements. | ||||||||||
BUSINESS_ACQUISITIONS_AND_DISP
BUSINESS ACQUISITIONS AND DISPOSALS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
BUSINESS ACQUISITIONS AND DISPOSALS | |||||||||||||||||
BUSINESS ACQUISITIONS AND DISPOSALS | |||||||||||||||||
3. BUSINESS ACQUISITIONS AND DISPOSALS | |||||||||||||||||
Acquisitions in 2014 | |||||||||||||||||
        Acquisition of Smarts companies—In December 2014 the Group acquired controlling stakes in Penza-GSM, SMARTS-Ivanovo and SMARTS-Ufa, operating in Penza, Ivanovo and the Bashkortostan Republic, respectively. The acquired companies hold rights to use 900 and 1800 MHz radio frequencies. The acquisition enhances the Group's spectrum resources in the above regions. The purchase price comprised of cash consideration and a deferred payment, payable in 18 months after the acquisition date. The acquisition was accounted for using the purchase method of accounting. | |||||||||||||||||
        The following table summarizes the preliminary purchase price allocation for regional mobile operators acquired during the year ended December 31, 2014: | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
SMARTS- | SMARTS-Ufa | Penza-GSM | Total | ||||||||||||||
Ivanovo | |||||||||||||||||
Month of acquisition | December | December | December | ||||||||||||||
Region of operations | Central region | Volga region | Volga region | ||||||||||||||
Ownership interest acquired | 100 | % | 100 | % | 100 | % | |||||||||||
Current assets | 24 | 47 | 97 | 168 | |||||||||||||
Property, plant and equipment | 68 | 94 | 196 | 358 | |||||||||||||
Rights to use radio frequencies | 455 | 434 | 571 | 1,460 | |||||||||||||
Goodwill | 41 | 182 | 1,407 | 1,630 | |||||||||||||
Customer base | 21 | 13 | 44 | 78 | |||||||||||||
Other non-current assets | — | — | 165 | 165 | |||||||||||||
Current liabilities | (88 | ) | (268 | ) | (327 | ) | (683 | ) | |||||||||
Non-current liabilities | (95 | ) | (101 | ) | (123 | ) | (319 | ) | |||||||||
Contingent consideration | (2 | ) | (2 | ) | (96 | ) | (100 | ) | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Consideration paid | 424 | 399 | 1,934 | 2,757 | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
        The purchase price allocation of SMARTS-Ivanovo, SMARTS-Ufa and Penza-GSM was not finalized as of the date of these financial statements as the Group had not completed the valuation of individual assets of each company acquired. The Group's consolidated financial statements reflect the allocation of the purchase price based on a preliminary fair value assessment of the assets acquired and liabilities assumed. The excess of the consideration paid over the value of net assets in the amount of RUB 1,630 million was preliminarily allocated to goodwill and was attributable to the "Russia convergent" segment. | |||||||||||||||||
        Under the terms of purchase agreements the Group is obliged to pay additional consideration of RUB 150 million in 18 months after the acquisition date. The consideration could be reduced by the amount of tax expenses related to activities prior to the acquisition date. As of the acquisition date, the Group recorded a provision for tax liabilities in the amount of RUB 24 million and respectively reduced the additional consideration. The purchase price allocation as of the acquisition date reflected preliminary estimation of the fair value of the contingent consideration. | |||||||||||||||||
        Rights to use radio frequencies recognized as a result of the acquisition are amortized over a period of their remaining useful life as of the acquisition date ranging from 7 to 8 years. Customer base recognized as a result of the acquisition is amortized over the period of its estimated average useful life of 31 months. | |||||||||||||||||
        Pro forma results of operations (unaudited)—The following unaudited pro forma financial data for the years ended December 31, 2014, 2013 and 2012, give effect to the 2014 acquisitions of SMARTS-Ivanovo, SMARTS-Ufa and Penza-GSM as though these business combinations had been completed at the beginning of 2012. | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Pro forma: | |||||||||||||||||
Net revenues | 411,353Â | 399,161Â | 378,938Â | ||||||||||||||
Net income | 51,598Â | 79,738Â | 29,665Â | ||||||||||||||
        The pro forma information is based on various assumptions and estimates. The pro forma information is neither necessarily indicative of the operating results that would have occurred if the Group acquisitions had been consummated as of January 1, 2012, nor is it necessarily indicative of future operating results. The pro forma information does not give effect to any potential revenue enhancements or cost synergies or other operating efficiencies that could result from the acquisitions. The actual results of operations of these companies are included into the consolidated financial statements of the Group only from the respective dates of acquisition. | |||||||||||||||||
        Since their respective acquisition dates, companies acquired in 2014 contributed revenue in the amount of RUB 3 million and net loss in the amount of RUB 4 million to consolidated statement of operations and comprehensive income for the year ended December 31, 2014. | |||||||||||||||||
Disposal in 2013 | |||||||||||||||||
        Disposal of Business-Nedvizhimost—In December 2013, the Group sold a 51% stake in Business-Nedvizhimost CJSC to Sistema for RUB 3.2 billion. Business-Nedvizhimost owns and manages 76 real estate sites and 44 real estate facilities throughout Moscow with a total area of roughly 178,000 sq. m. After the loss of control over the subsidiary, the Group deconsolidated Business-Nedvizhimost and applied for its 49% interest the equity method of accounting. In April 2014, the Group sold the remaining 49% stake to Sistema for RUB 3.1 billion. The disposal was accounted for as a transaction under common control directly in equity. | |||||||||||||||||
Acquisitions and disposals in 2012 | |||||||||||||||||
        Acquisitions of controlling interests in regional fixed line operators—In 2012, as part of its program of regional expansion, the Group acquired controlling interests in a number of fixed line operators in certain regions of Russia. The purchase price for these acquisitions was paid in cash. The acquisitions were accounted for using the acquisition method of accounting. | |||||||||||||||||
        The following table summarizes the purchase price allocation for regional fixed line operators acquired during the year ended December 31, 2012: | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
Elf Group | Intercom | ZhelGorTeleCom | Pilot & TVKiK | Total | |||||||||||||
Month of acquisition | August | August | October | October | |||||||||||||
Region of operations | Central region | Volga region | Central region | Central region | |||||||||||||
Ownership interest acquired | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
Current assets | 6 | 9 | 4 | 3 | 22 | ||||||||||||
Property, plant and equipment | 49 | 11 | 3 | 21 | 84 | ||||||||||||
Goodwill | 172 | 62 | 115 | 55 | 404 | ||||||||||||
Customer base | 45 | 29 | 54 | 22 | 150 | ||||||||||||
Current liabilities | (44 | ) | (15 | ) | (13 | ) | (6 | ) | (78 | ) | |||||||
Non-current liabilities | (9 | ) | (6 | ) | (11 | ) | (4 | ) | (30 | ) | |||||||
Fair value of contingent consideration | (28 | ) | (10 | ) | (5 | ) | — | (43 | ) | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Consideration paid | 191 | 80 | 147 | 91 | 509 | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
        The Group's consolidated financial statements reflect the allocation of the purchase price based on a fair value assessment of the assets acquired and liabilities assumed. | |||||||||||||||||
        Customer base intangibles recognized as a result of the acquisitions are being amortized over a period ranging from 7 to 9 years depending on the type of subscribers. | |||||||||||||||||
        The recognition of goodwill in the amount of RUB 404 million from the acquisitions is due to the economic potential of the markets in which the acquired companies operate and synergies arising from the acquisitions. Goodwill is attributable to the "Russia convergent" segment. | |||||||||||||||||
        Tascom—In May 2012, the Group acquired a 100% stake in Tascom CJSC ("Tascom"), a market leader in providing telecommunication services to corporate clients in Moscow and the Moscow region, for RUB 1,437 million. The seller has indemnified the Group against all losses which arise in connection with liability for taxation matters relating to the pre-acquisition period. As of the acquisition date the Group recorded a provision for tax liabilities and a related indemnification asset in the amount of RUB 236 million relating to this warranty. As of December 31, 2014 the amount of the indemnification asset and related provision for tax liabilities was reduced to RUB 43 million. | |||||||||||||||||
        The Group also should pay to the seller any amounts received for the services rendered by Tascom prior to the acquisition date, capped at RUB 400 million—this contingent consideration arrangement was recorded at fair value of RUB 170 million which was determined based on unobservable inputs ("Level 3" of the hierarchy established by the U.S. GAAP guidance). The fair value was measured as the best estimate of all possible outcomes. During 2012-2013, the contingent consideration in the amount of RUB 170 million was completely paid to the seller. | |||||||||||||||||
        The acquisition was accounted for using the acquisition method of accounting. The summary of the purchase price allocation for the acquisition was as follows: | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
Current assets | 489 | ||||||||||||||||
Property, plant and equipment | 586 | ||||||||||||||||
Goodwill | 1,083 | ||||||||||||||||
Customer base | 168 | ||||||||||||||||
Other non-current assets | 188 | ||||||||||||||||
Current liabilities | (800 | ) | |||||||||||||||
Non-current liabilities | (107 | ) | |||||||||||||||
Fair value of contingent consideration | (170 | ) | |||||||||||||||
​ | ​ | ​  | ​  | ​ | |||||||||||||
Consideration paid | 1,437 | ||||||||||||||||
​ | ​ | ​  | ​  | ​ | |||||||||||||
​ | ​ | ​  | ​  | ​  | |||||||||||||
        The excess of the consideration paid over the value of net assets acquired in the amount of RUB 1,083 million was allocated to goodwill which was attributable to the "Moscow fixed line" segment and is not deductible for income tax purposes. Goodwill is mainly attributable to the expected synergies from increase of market share and reduction of capital expenditures to be made by the Group to construct optical fiber network. | |||||||||||||||||
        Disposal of Stream—In May 2012, MTS and Sistema signed a shareholders agreement with respect to the management of Stream LLC ("Stream"), which owns and manages Stream.ru. In addition Sistema contributed RUB 496.1 million into Stream's charter capital giving it an ownership of 55% of Stream, thereby reducing MTS's direct ownership in Stream from 100% to 45%. After a loss of control over the subsidiary, the Group deconsolidated Stream and accounted for its interest using the equity method. The disposal was accounted for as transaction under common control directly in equity. | |||||||||||||||||
OPERATIONS_IN_UZBEKISTAN
OPERATIONS IN UZBEKISTAN | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
OPERATIONS IN UZBEKISTAN | ||||||||
OPERATIONS IN UZBEKISTAN | ||||||||
4. OPERATIONS IN UZBEKISTAN | ||||||||
        In June 2012, the authorities of the Republic of Uzbekistan commenced repeat audits of previously audited financial and operating activities of MTS' wholly owned subsidiary Uzdunrobita. On July 17, 2012, Uzdunrobita suspended its services in Uzbekistan pursuant to the order of the State Agency for Communications and Information of Uzbekistan (the "SACI") temporarily suspending the operating license of Uzdunrobita for a period of ten business days. This suspension was subsequently extended to three months due to the decision of the Tashkent Economic Court of July 30, 2012. | ||||||||
        On August 6 and 7, 2012, fourteen regional antimonopoly departments of the Republic of Uzbekistan simultaneously held hearings and declared that Uzdunrobita had violated antimonopoly laws, consumer protection laws and laws governing advertisements. In total, the claims of the regional antimonopoly departments against Uzdunrobita amounted to approximately RUB 2,558 million. This amount was subsequently reduced by the superior antimonopoly regulator to RUB 416 million in the aggregate. The disputes with the antimonopoly authorities were dismissed after payments were made by Uzdunrobita pursuant to the Appeal Decision (as defined below). | ||||||||
        On August 13, 2012, the Tashkent Economic Court granted the petition of the SACI to terminate all operating licenses of Uzdunrobita permanently. This decision was subsequently upheld by the appeals and cassation instance courts on August 27, 2012 and April 4, 2013, respectively. | ||||||||
        Notwithstanding the fact that a tax audit of Uzdunrobita's operations for the period of 2007-2010 was completed in February 2012 and did not reveal any serious violations, further tax audits were conducted and purported to find alleged violations of licensing regulations as well as income and other tax legislation resulting in the imposition of additional taxes and fines totaling approximately RUB 28,776 million. This amount was subsequently reduced to RUB 21,390 million in the aggregate. | ||||||||
        During September-October of 2012, RUB 201 million were seized from Uzdunrobita's bank accounts by the Uzbek State and applied to settle its alleged liabilities under these claims. | ||||||||
        On September 17, 2012, the Tashkent City Criminal Court issued a ruling in favor of the Uzbek state authorities authorizing the confiscation of all assets of Uzdunrobita based on a criminal court's verdict which the Tashkent City Criminal Court issued against four employees of Uzdunrobita. Previously, Uzbek law enforcement agencies arrested all of Uzdunrobita's assets, including cash held in local bank accounts. | ||||||||
        On November 8, 2012, the Appellate Instance of the Tashkent City Criminal Court allowed Uzdunrobita's appeal challenging the decision of the Tashkent City Criminal Court dated September 17, 2012. | ||||||||
        The appeals court found that all damages (taxes, sanctions, unpaid licenses duties and damages to customers) incurred by the State were to be compensated by Uzdunrobita. The amount of damages was calculated on the basis of all of the aforementioned claims against Uzdunrobita, which amounted to RUB 18,375 million to be paid in eight equal monthly instalments (the "Appeal Decision"). | ||||||||
        In accordance with applicable Uzbek laws, Uzdunrobita petitioned the Deputy General Prosecutor to challenge the Appeal Decision before the Supreme Court of Uzbekistan and grant a stay of enforcement of the Appeal Decision. However, such petitions were rejected by the General Prosecutor's Office on January 8, 2013. | ||||||||
        Following this rejection, Uzdunrobita immediately filed a further petition to appeal to the Supreme Court of Uzbekistan with the Chairman of the Supreme Court of Uzbekistan. On January 23, 2013, the Company was notified that the matter had been submitted by the Supreme Court for consideration by the Chairman of the Tashkent City Court. On May 2, 2013, the Chairman of the Tashkent City Court rejected Uzdunrobita's petition. | ||||||||
        In order to comply with the Appeal Decision, Uzdunrobita paid two scheduled installments in November and December 2012 totaling RUB 4,584 million. On January 14, 2013, subsequent to the payment of a portion (RUB 242 million) of the third installment due in January 2013 with all cash remaining in Uzdunrobita's bank accounts, Uzdunrobita filed a petition for voluntary bankruptcy with the Tashkent Economic Court due to its inability to meet its further obligations arising out of the Appeal Decision. On January 18, 2013, the Court initiated bankruptcy proceedings and appointed an external temporary supervisor over Uzdunrobita, and scheduled a further bankruptcy hearing which took place on April 22, 2013. | ||||||||
        Considering the adverse impact of such circumstances on the Group's ability to conduct operations in Uzbekistan, the Group tested goodwill and other long-lived assets attributable to Uzbekistan for impairment upon first receiving notification of the investigations. As a result, an impairment loss on the long-lived assets presented in the table below was recorded in the consolidated statements of operations and comprehensive income for the year ended December 31, 2012. In 2013 these losses were assigned to discontinued operations: | ||||||||
                                                                                                                                                                                    | ||||||||
Impairment loss | ||||||||
Property, plant and equipment | 8,438Â | |||||||
Licenses | 2,709Â | |||||||
Rights to use radio frequencies | 2,523Â | |||||||
Numbering capacity | 1,190Â | |||||||
Software and other intangible assets | 1,654Â | |||||||
Goodwill | 3,523Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
Total impairment loss related to goodwill and long-lived assets | 20,037Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​  | ||||
        The Group used a probability-weighted valuation technique to determine the fair value of the long-lived assets as of December 31, 2012, which was determined based on unobservable inputs ("Level 3" of the hierarchy established by U.S. GAAP guidance). In calculating the future cash flows for use in the assessment of the fair value of long-lived assets, the Group used forecasts for the Uzbekistan telecommunication market and Uzdunrobita's position in that market. The forecasts were based on all available internal and external information, including growth projections and industry experts' estimates. | ||||||||
        Separate to the impairments recognized, a liability of RUB 12,706 million relating to the claims was recorded with an associated charge to the consolidated statements of operations and comprehensive income for the year ended December 31, 2012. | ||||||||
        On April 22, 2013, the Tashkent Economic Court declared Uzdunrobita bankrupt and initiated six-month liquidation procedures. In accordance with the terms of local liquidation procedures, Uzdunrobita's CEO was relieved of his duties and all of the oversight and governance over Uzdunrobita was transferred to the liquidation administrator. As a result the Group lost control over the subsidiary and deconsolidated Uzdunrobita. | ||||||||
        The results of operations of Uzdunrobita are reported as discontinued operations in the accompanying consolidated statements of operations and comprehensive income and consolidated statements of cash flows for all periods presented. The consolidated statement of financial position was not retrospectively adjusted on discontinued operations. The gain on disposal recognized in the amount of RUB 3,682 million related to the recycling from accumulated other comprehensive income of the cumulative translation adjustment attributable to Uzdunrobita. The results of discontinued operations of Uzdunrobita for the year ended December 31, 2013 and 2012 were as follows: | ||||||||
                                                                                                                                                                                    | ||||||||
2013 | 2012 | |||||||
Total revenues | — | 8,357 | ||||||
Income / (loss) before income tax | 1,109 | (34,171 | ) | |||||
Income tax (expense) / benefit | (1,058 | ) | 1,325 | |||||
Gain on disposal, net of tax | 3,682 | —  | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Income / (loss) from discontinued operations, net of tax | 3,733 | (32,846 | ) | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
        In July 2013, two rounds of auctions were set and held in relation to the sale of assets of Uzdunrobita and all of its branches. All auctions were recognized as having failed due to the absence of applications by any interested bidders. | ||||||||
        The Group filed a claim against the Republic of Uzbekistan in the International Center for Settlement of Investment Disputes ("ICSID"), which is part of the World Bank Group, in Washington, D.C. The claim was registered on November 15, 2012. A tribunal was formed on August 29, 2013 and the first procedural hearings took place in November 2013. | ||||||||
        In July 2014 the dispute between MTS and the Republic of Uzbekistan was resolved. The parties signed a settlement agreement (the "Settlement Agreement") and according to its terms all mutual claims were eliminated. The Settlement Agreement is governed by English law and provides for resolution of any disputes arising out of the Settlement agreement in the International Court of Arbitration under the International Chamber of Commerce in Paris. ICSID has discontinued international arbitration proceedings between the Group and the Republic of Uzbekistan following the submission of a joint application by both parties | ||||||||
        The Settlement Agreement primarily addressed two separate elements—the aforementioned elimination of all mutual claims filed by MTS and the Republic of Uzbekistan and, certain guarantees granted to MTS in connection with its re-entry into the Republic of Uzbekistan. Consideration received, in total, had a fair value of RUB 6,734 million (see below for further details). | ||||||||
        Following unsuccessful tenders on sale of Uzdunrobita equipment, the representatives of the Republic of Uzbekistan and MTS commenced negotiations in relation to MTS' return to the market. The government authorities provided certain guarantees to MTS in relation to the protection of any future investment in the Republic of Uzbekistan to encourage the return of MTS to the market. Also, the Republic of Uzbekistan established a legal entity, Universal Mobile Systems LLC ("UMS"), with such entity having no legal connection to the previously liquidated entity, Uzdunrobita. UMS was granted 2G, 3G and LTE licenses valid till 2029, and received frequencies, numbering capacity and other permits required for the launch of operations. On September 24, 2014, a 50.01% ownership interest in UMS was transferred to the Group by the State Unitary Enterprise "Center of radio communications, radio broadcasting and television" on behalf of the Republic of Uzbekistan. Independent appraisers hired by the Group determined the total fair value of UMS to be RUB 9,062 million as of the transfer date. | ||||||||
        Based on the aforementioned fair value assessment of a 50.01% stake in UMS, the Group recognized a gain from reentrance into Uzbekistan pursuant to the Settlement Agreement in the amount of RUB 6,734 million. Management concluded that this consideration related to, in its entirety, a financial incentive to encourage re-entry into the Republic of Uzbekistan and as such, recognition in continuing operations was appropriate. No element was allocated to the non-satisfaction and elimination of mutual claims as this was deemed to have minimal value. | ||||||||
        The allocation of consideration received between elements where the settlement of litigation is involved is highly judgmental. In this case, management considered, among other things the terms of the settlement arrangement as well as the development of the negotiations process itself, in which members of MTS management were involved. | ||||||||
        The Group consolidates UMS in accordance with FASB ASC 810, Consolidation, starting September 24, 2014, representing the date of transfer of ownership. Below is the summary of fair value allocation regarding the incentive arrangement: | ||||||||
                                                                                                                                                                                    | ||||||||
Current assets | 26 | |||||||
Property, plant and equipment | 3,848 | |||||||
Other intangible assets | 5,161 | |||||||
Other non-current assets | 1,327 | |||||||
Current liabilities | (30 | ) | ||||||
Non-current liabilities | (25 | ) | ||||||
Non-controlling interest | (3,573 | ) | ||||||
Gain from reentrance into Uzbekistan | (6,734 | ) | ||||||
​ | ​ | ​  | ​  | ​ | ||||
Consideration paid | — | |||||||
​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​  | ||||
        The fair value of non-controlling interest as of the date of consolidation in the amount of RUB 3,573 million was determined based on a discounted cash flow technique utilizing significant unobservable inputs ("Level 3" significant unobservable inputs of the hierarchy established by the U.S. GAAP guidance). The key assumptions in the fair value calculations included a discount rate of 24.1% and average price per minute of voice services amounting to RUB 0.56. | ||||||||
POLITICAL_AND_ECONOMIC_CRISIS_
POLITICAL AND ECONOMIC CRISIS IN UKRAINE | 12 Months Ended |
Dec. 31, 2014 | |
Political And Economic Crisis In Ukraine Abstract | |
POLITICAL AND ECONOMIC CRISIS IN UKRAINE | |
5. POLITICAL AND ECONOMIC CRISIS IN UKRAINE | |
        During the year ended December 31, 2014, a deterioration in the political environment of Ukraine has led to general instability, economic deterioration and armed conflict in eastern Ukraine. The deterioration has further exacerbated the country's already weak macroeconomic trends, which have led to reduced credit ratings, significant depreciation of its national currency and increased inflation. During 2014, the Ukrainian Parliament adopted a law allowing for the imposition of sanctions against countries, persons and companies deemed by the Ukrainian government to threaten Ukrainian national interests, national security, sovereignty or the territorial integrity of Ukraine. The National Bank of Ukraine (NBU) passed a decree prohibiting Ukrainian companies to pay dividends to foreign investors. These circumstances, combined with continued political and economic instability in the country, could result in further negative impact on our business including our financial position and results of operations (refer to Note 29 for segment data on Ukraine). Such risks especially apply to funds deposited in Ukrainian banks, whose liquidity is affected by the economic downturn. As of December 31, 2014, the Group held RUB 21,203 million in current accounts and deposits in Ukrainian banks, including RUB 5,072 million in Delta Bank. In December 2014, Delta Bank delayed customer payments and put limits on cash withdrawals. On March 2, 2015, NBU adopted a resolution declaring Delta Bank to be insolvent. The Group treated this declaration as a recognized subsequent event and reserved the full amount of deposited funds (RUB 5,072 million) and related interest (RUB 66 million) as of December 31, 2014. | |
CASH_AND_CASH_EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
CASH AND CASH EQUIVALENTS | ||||||||
CASH AND CASH EQUIVALENTS | ||||||||
6. CASH AND CASH EQUIVALENTS | ||||||||
        Cash and cash equivalents as of December 31, 2014 and 2013 comprised the following: | ||||||||
                                                                                                                                                                                    | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Russian Ruble current accounts | 9,767Â | 5,900Â | ||||||
Russian Ruble deposit accounts | 19,272Â | 14,215Â | ||||||
U.S. Dollar current accounts | 11,412Â | 1,336Â | ||||||
U.S. Dollar deposit accounts | 7,404Â | 7,503Â | ||||||
Euro current accounts | 3,579Â | 395Â | ||||||
Euro deposit accounts | 1,901Â | 136Â | ||||||
Hryvna current accounts | 1,471Â | 87Â | ||||||
Hryvna deposit accounts | 4,973Â | 276Â | ||||||
Uzbek som current accounts | 341 | — | ||||||
Turkmenian manat current accounts | 1,162Â | 697Â | ||||||
Armenian dram current accounts | 72Â | 67Â | ||||||
Armenian dram deposit accounts | 56 | —  | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total cash and cash equivalents | 61,410Â | 30,612Â | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
SHORTTERM_INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SHORT-TERM INVESTMENTS | |||||||||||
SHORT-TERM INVESTMENTS | |||||||||||
7. SHORT-TERM INVESTMENTS | |||||||||||
        Short-term investments as of December 31, 2014 comprised the following: | |||||||||||
                                                                                                                                                                                    | |||||||||||
Type of investment | Classification | Annual | Maturity date | Amount | |||||||
interest rate | |||||||||||
Loan receivable from Mr. P. Fattouche and Mr. M. Fattouche (Note 16) | Held to maturity | 6% | Dec-15 | 5,533 | |||||||
Deposits | Held to maturity | 4Â - 16% | January 2015 - December 2015 | 3,534Â | |||||||
Sistema Notes due in 2016 (series 04) (related party) (Note 25) | Available for sale | 7.65% | — | 534 | |||||||
Loan receivable from Navigation Information Systems (related party) (Note 25) | Held to maturity | 8.5 - 10.0% | March 2015 - July 2015 | 132 | |||||||
Loan receivable from Moscow Business Incubator (related party) (Note 25) | Held to maturity | 10.50% | Dec-15 | 52 | |||||||
Sistema International Funding S.A. Bonds due 2019 (related party) (Note 25) | Available for sale | 6.95% | — | 42 | |||||||
Other loans | Held to maturity | — | — | 22 | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |
Total short-term investments | 9,849Â | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​  | |
        Short-term investments as of December 31, 2013 comprised of the following: | |||||||||||
                                                                                                                                                                                    | |||||||||||
Type of investment | Classification | Annual | Maturity date | Amount | |||||||
interest rate | |||||||||||
Deposits | Held to maturity | 4.2Â - 14.0% | February 2014 - July 2014 | 5,377Â | |||||||
Deposits at MTS Bank (related party) (Note 25) | Held to maturity | 8.70% | Jun-14 | 5,081 | |||||||
Mutual investment fund "Reservnyi", managed by DIK (related party) (Note 25) | Available for sale | — | Upon request | 4,154 | |||||||
Other loans | Held to maturity | — | — | 21 | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |
Total short-term investments | 14,633Â | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​  | |
        The Group considers credit risk for short-term investments to be low due to the strong financial position of counterparties. | |||||||||||
TRADE_RECEIVABLES_NET
TRADE RECEIVABLES, NET | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
TRADE RECEIVABLES, NET | |||||||||||
TRADE RECEIVABLES, NET | |||||||||||
8. TRADE RECEIVABLES, NET | |||||||||||
        Trade receivables as of December 31, 2014 and 2013 comprised the following: | |||||||||||
                                                                                                                                                                                    | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Roaming | 13,892 | 15,875 | |||||||||
Subscribers | 10,722 | 12,548 | |||||||||
Interconnect | 3,802 | 2,847 | |||||||||
Dealers | 1,931 | 2,127 | |||||||||
Other | 4,784 | 4,910 | |||||||||
Allowance for doubtful accounts | (2,165 | ) | (3,753 | ) | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Trade receivables, net | 32,966 | 34,554 | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
        The following table summarizes the changes in the allowance for doubtful accounts receivable for the years ended December 31, 2014, 2013 and 2012: | |||||||||||
                                                                                                                                                                                    | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance, beginning of the year | 3,753 | 3,461 | 3,122 | ||||||||
Allowance for doubtful accounts charge | 2,933 | 3,366 | 2,257 | ||||||||
Accounts receivable written off | (4,521 | ) | (3,074 | ) | (1,918 | ) | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance, end of the year | 2,165 | 3,753 | 3,461 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
INVENTORY_AND_SPARE_PARTS
INVENTORY AND SPARE PARTS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
INVENTORY AND SPARE PARTS | ||||||||
INVENTORY AND SPARE PARTS | ||||||||
9. INVENTORY AND SPARE PARTS | ||||||||
        Inventory and spare parts as of December 31, 2014 and 2013 comprised the following: | ||||||||
                                                                                                                                                                                    | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Handsets and accessories | 5,971Â | 7,436Â | ||||||
SIM cards and prepaid phone cards | 897Â | 395Â | ||||||
Spare parts for telecommunication equipment | 301Â | 305Â | ||||||
Advertising and other materials | 341Â | 362Â | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total inventory and spare parts | 7,510Â | 8,498Â | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
        Other materials mainly consist of stationary, fuel and auxiliary materials. | ||||||||
        Obsolescence expense for the years ended December 31, 2014, 2013 and 2012 amounted to RUB 357 million, RUB 660 million and RUB 759 million, respectively, and was included in general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income. Spare parts for base stations included in inventory are expected to be utilized within the twelve months following the statements of financial position date. | ||||||||
DISPOSAL_GROUP_HELD_FOR_SALE
DISPOSAL GROUP HELD FOR SALE | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
DISPOSAL GROUP HELD FOR SALE | ||||||||
ASSETS HELD FOR SALE | ||||||||
10. DISPOSAL GROUP HELD FOR SALE | ||||||||
                                                                                                                                                                                    | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Assets related to planned sale of 51% stake in Rent Nedvizhimost | 2,004 | —  | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total assets related to disposal group held for sale | 2,004 | — | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Liabilities related to planned sale of 51% stake in Rent Nedvizhimost | (227 | ) | —  | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
        Disposal of Rent Nedvizhimost—In February 2015, the Group lost control over Rent Nedvizhimost CJSC as a result of the sale of a 51% stake to Business-Nedvizhimost, a subsidiary of Sistema, for RUB 4.3 billion of which 3.8 billion is due before December 31, 2018 and bears interest of 12%-interest p.a. The results of this transaction will be included in the financial statements of the Group for the year ended December 31, 2015. Following the sale of its 51% stake, the Group retained a 49% stake in Rent Nedvizhimost allowing it to exercise significant influence over the operating and financing activities of the entity. Consequently, the results of operations and cash flows of Rent Nedvizhimost were not reported as discontinued operations in the consolidated financial statements. The related assets and liabilities of a disposal group were classified as "held for sale" and measured at carrying value as of December 31, 2014. Balances were attributable to "Moscow fixed line" reportable segment and comprised of the following: | ||||||||
                                                                                                                                                                                    | ||||||||
Current assets | 238Â | |||||||
Non-current assets | 1,766Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
Total assets related to disposal group held for sale | 2,004Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​  | ||||
Current liabilities | 187Â | |||||||
Non-current liabilities | 40Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
Total liabilities related to disposal group held for sale | 227Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​  | ||||
        Disposal of network equipment in Crimea—In October 2014, the Group's subsidiary MTS Ukraine sold base stations, network infrastructure, IT and telecom equipment and certain other assets located in Crimea, through an open tender procedure, to two private investors for RUB 922 million (EUR 17.7 million as of the date of transaction). Previously, on August 6, 2014, MTS suspended its operations in Crimea due to technical issues, which have curtailed its ability to provide telecommunications services for its customers. The gain recognized upon the sale of the base stations, network infrastructure, IT and telecom equipment amounting to RUB 317 million was recognized as operating income in the accompanying consolidated statements of operations and comprehensive income for the year ended December 31, 2014. | ||||||||
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||||
11. PROPERTY, PLANT AND EQUIPMENT | ||||||||||
        The net book value of property, plant and equipment as of December 31, 2014 and 2013 was as follows: | ||||||||||
                                                                                                                                                                                    | ||||||||||
December 31, | ||||||||||
Useful lives, | ||||||||||
years | 2014 | 2013 | ||||||||
Network, base station equipment and related leasehold improvements (including leased assets of 6,427 and nil, respectively) | 17-May | 499,101 | 445,857 | |||||||
Office equipment, computers and other | 15-Mar | 43,640 | 42,121 | |||||||
Buildings and related leasehold improvements (including leased assets of nil and 28, respectively) | 20 - 59 | 24,362 | 25,496 | |||||||
Vehicles (including leased assets of 73 and 942, respectively) | 7-Mar | 3,271 | 3,139 | |||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Property, plant and equipment, at cost (including leased assets of 6,500 and 970, respectively) | 570,374 | 516,613 | ||||||||
Accumulated depreciation (including leased assets of 438 and 793, respectively) | (313,623 | ) | (293,389 | ) | ||||||
Construction in progress and equipment for installation | 42,728 | 47,436 | ||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Property, plant and equipment, net | 299,479 | 270,660 | ||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
        Depreciation expense during the years ended December 31, 2014, 2013 and 2012 amounted to RUB 58,511 million, RUB 58,599 million and RUB 54,766 million, respectively. | ||||||||||
LICENSES
LICENSES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
LICENSES. | ||||||||
LICENSES | ||||||||
12. LICENSES | ||||||||
        In connection with providing telecommunication services, the Group has been issued various GSM operating licenses by the local communication authorities. | ||||||||
        As of December 31, 2014 and 2013, the value of the Group's telecommunications licenses was as follows: | ||||||||
                                                                                                                                                                                    | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Armenia | 8,782 | 5,982 | ||||||
Russia | 1,825 | 291 | ||||||
Ukraine | 117 | 123 | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Licenses, at cost | 10,724 | 6,396 | ||||||
Accumulated amortization | (5,226 | ) | (3,194 | ) | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Licenses, net | 5,498 | 3,202 | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
        Amortization expense for the years ended December 31, 2014, 2013 and 2012 amounted to 598 million, RUB 544 million and RUB 662 million, respectively. | ||||||||
        The Group's operating licenses do not provide for automatic renewal. As of December 31, 2014, all licenses covering the territories of the Russian Federation were renewed. The cost to renew the licenses was not significant. The weighted-average period until the next renewal of licenses in the Russian Federation is four years. | ||||||||
        The license for the provision of telecommunications services in Ukraine was renewed in 2013 and is valid until 2026. The license for the provision of telecommunication services in Armenia is valid until 2019. The license in Turkmenistan was suspended by the Turkmenistan Ministry of Communications in December 2010 which resulted in the cessation of the Group's operational activity in Turkmenistan. However, in July 2012, the Turkmenistan Ministry of Communications granted the Group GSM and 3G licenses for a three-year term and the Group recommenced its operations in Turkmenistan. For a description of matters related to licenses for the provision of telecommunication services in Uzbekistan see Note 4. | ||||||||
        Based on the cost of amortizable operating licenses existing at December 31, 2014 and current exchange rates, the estimated future amortization expenses for the five years ending December 31, 2019 and thereafter are as follows: | ||||||||
                                                                                                                                                                                    | ||||||||
Estimated amortization expense in the year ended December 31, | ||||||||
2015 | 970Â | |||||||
2016 | 973Â | |||||||
2017 | 970Â | |||||||
2018 | 970Â | |||||||
2019 | 849Â | |||||||
Thereafter | 766Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
Total | 5,498Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​  | ||||
        The actual amortization expense reported in future periods could differ from these estimates as a result of new intangible assets acquisitions, changes in useful lives and other relevant factors. | ||||||||
        Operating licenses contain a number of requirements and conditions specified by legislation. The requirements generally include targets for service start date, territorial coverage and expiration date. Management believes that the Group is in compliance with all material terms of its licenses. | ||||||||
GOODWILL
GOODWILL | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
GOODWILL | ||||||||||||||||||||
GOODWILL | ||||||||||||||||||||
13. GOODWILL | ||||||||||||||||||||
        The change in the net carrying amount of goodwill for the years ended December 31, 2014 and 2013 by reportable and operating segments was as follows: | ||||||||||||||||||||
                                                                                                                                                                                    | ||||||||||||||||||||
Russia | Moscow | Ukraine | Uzbekistan(1)Â | Other | Total | |||||||||||||||
convergent | fixed line | |||||||||||||||||||
Balance at January 1, 2013 | ||||||||||||||||||||
Gross amount of goodwill | 28,668 | 1,083 | 162 | 3,523 | 3,981 | 37,417 | ||||||||||||||
Accumulated impairment loss | (1,466 | ) | — | — | (3,523 | ) | — | (4,989 | ) | |||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
27,202 | 1,083 | 162 | — | 3,981 | 32,428 | |||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Disposals | (23 | ) | — | — | — | — | (23 | ) | ||||||||||||
Currency translation adjustment | — | — | 12 | — | 287 | 299 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance at December 31, 2013 | ||||||||||||||||||||
Gross amount of goodwill | 28,645 | 1,083 | 174 | — | 4,268 | 34,170 | ||||||||||||||
Accumulated impairment loss | (1,466 | ) | — | — | — | — | (1,466 | ) | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
27,179 | 1,083 | 174 | — | 4,268 | 32,704 | |||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Acquisitions (Note 3) | 1,630 | — | — | — | — | 1,630 | ||||||||||||||
Currency translation adjustment | — | — | (23 | ) | — | 2,000 | 1,977 | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance at December 31, 2014 | ||||||||||||||||||||
Gross amount of goodwill | 30,275 | 1,083 | 151 | — | 6,268 | 37,777 | ||||||||||||||
Accumulated impairment loss | (1,466 | ) | — | — | — | — | (1,466 | ) | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
28,809 | 1,083 | 151 | — | 6,268 | 36,311 | |||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
-1 | The results of operations in Uzbekistan are reported as discontinued operations in the accompanying consolidated statements of operations and comprehensive income for the years ended December 31, 2013 and 2012. | |||||||||||||||||||
OTHER_INTANGIBLE_ASSETS
OTHER INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||
OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||
14. OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||
        Intangible assets as of December 31, 2014 and 2013 comprised the following: | |||||||||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||
Useful | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||
lives, years | carrying | amortization | carrying | carrying | amortization | carrying | |||||||||||||||||
value | value | value | value | ||||||||||||||||||||
Amortized intangible assets | |||||||||||||||||||||||
Billing and telecommunication software | 1 to 20 | 67,238 | (41,853 | ) | 25,385 | 53,225 | (37,265 | ) | 15,960 | ||||||||||||||
Office software | 1 to 10 | 12,713 | (5,695 | ) | 7,018 | 9,309 | (3,582 | ) | 5,727 | ||||||||||||||
Rights to use radio frequencies | 1 to 15 | 11,444 | (5,684 | ) | 5,760 | 9,850 | (4,905 | ) | 4,945 | ||||||||||||||
Acquired customer base | 4 to 31 | 7,690 | (3,166 | ) | 4,524 | 8,757 | (3,622 | ) | 5,135 | ||||||||||||||
Accounting software | 1 to 5 | 3,637 | (2,641 | ) | 996 | 4,330 | (3,021 | ) | 1,309 | ||||||||||||||
Numbering capacity | 2 to 15 | 3,746 | (3,508 | ) | 238 | 3,623 | (2,849 | ) | 774 | ||||||||||||||
Credit line | 1 to 3 | 3,238 | — | 3,238 | — | — | — | ||||||||||||||||
Other | 1 to 15 | 10,671 | (3,238 | ) | 7,433 | 7,090 | (2,909 | ) | 4,181 | ||||||||||||||
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total amortized intangible assets | 120,377 | (65,785 | ) | 54,592 | 96,184 | (58,153 | ) | 38,031 | |||||||||||||||
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Prepayments for intangible assets | 2,379 | — | 2,379 | 392 | — | 392 | |||||||||||||||||
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total other intangible assets | 122,756 | (65,785 | ) | 56,971 | 96,576 | (58,153 | ) | 38,423 | |||||||||||||||
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
        Amortization expense for the years ended December 31, 2014, 2013 and 2012 amounted to RUB 15,601 million, RUB 14,110 million and RUB 12,482 million, respectively. Based solely on the cost of amortizable intangible assets existing at December 31, 2014 the estimated future amortization expenses for the five years ending December 31, 2019 and thereafter are as follows: | |||||||||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||||||||
Estimated amortization expense in the year ending December 31, | |||||||||||||||||||||||
2015 | 16,901Â | ||||||||||||||||||||||
2016 | 13,740Â | ||||||||||||||||||||||
2017 | 9,601Â | ||||||||||||||||||||||
2018 | 5,036Â | ||||||||||||||||||||||
2019 | 2,301Â | ||||||||||||||||||||||
Thereafter | 7,013Â | ||||||||||||||||||||||
​ | ​ | ​  | ​  | ​ | |||||||||||||||||||
Total | 54,592Â | ||||||||||||||||||||||
​ | ​ | ​  | ​  | ​ | |||||||||||||||||||
​ | ​ | ​  | ​  | ​  | |||||||||||||||||||
        The actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible assets acquisitions, changes in useful lives, exchange rates and other relevant factors. | |||||||||||||||||||||||
        The weighted-average amortization period for billing and telecommunications software acquired during the years ended December 31, 2014 and 2013 is four years. | |||||||||||||||||||||||
INVESTMENTS_IN_AND_ADVANCES_TO
INVESTMENTS IN AND ADVANCES TO ASSOCIATES | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
INVESTMENTS IN AND ADVANCES TO ASSOCIATES | ||||||||||||||
INVESTMENTS IN AND ADVANCES TO ASSOCIATES | ||||||||||||||
15. INVESTMENTS IN AND ADVANCES TO ASSOCIATES | ||||||||||||||
        As of December 31, 2014 and 2013, the Group's investments in and advances to associates comprised the following: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
MTS Belarus—equity investment | 6,033 | 5,013 | ||||||||||||
MTS Bank—equity investment | 4,858 | 5,476 | ||||||||||||
MTS Bank—loan | 2,100 | 2,100 | ||||||||||||
OZON Holdings Limited—equity investment | 2,708 | — | ||||||||||||
Business-Nedvizhimost—equity investment | — | 410 | ||||||||||||
Intellect Telecom—equity investment | 78 | 163 | ||||||||||||
Intellect Telecom—loan | 168 | — | ||||||||||||
Stream—equity investment | 332 | 231 | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Total investments in and advances to associates | 16,277Â | 13,393Â | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||||||
        Business-Nedvizhimost—In September 2013, the Group spun off Business-Nedvizhimost CJSC from its wholly-owned subsidiary MGTS-Nedvizhimost and, in December 2013, sold a 51% stake in Business-Nedvizhimost to Sistema. After the loss of control over the subsidiary, the Group deconsolidated Business-Nedvizhimost and accounted for the investment using the equity method of accounting. In April 2014 the Group sold the remaining 49% stake in Business-Nedvizhimost to Sistema for RUB 3.1 billion, payable in arrears till July 31, 2015 and bearing interest of 9.0% p.a. The disposal was accounted for as a transaction under common control directly in equity. | ||||||||||||||
        MTS Bank—In April 2013, the Group acquired a 25.1% stake in MTS Bank OJSC ("MTS Bank") for RUB 5,089 million. As a result of the transaction, the Group's effective ownership in MTS Bank increased to 26.3%. In September 2012, the Group provided a 10-year subordinated loan to MTS Bank in the amount of RUB 2,100 million at 8.8% p.a. In October 2014 the Group contributed RUB 1,266 million to MTS Bank. MTS Bank has no obligation to pay the amount back. In December 2014 the Group had increased its interest in MTS Bank from 26.3% to 27.0% through participation in an additional share issue of MTS Bank, and paid RUB 3,639 million for shares acquired. | ||||||||||||||
        In 2014, an impairment charge of RUB 3,225 million related to equity investment in MTS Bank was recognized as an element of equity in net loss / (income) of associates in the accompanying consolidated statements of operations and comprehensive income. As a result a difference arose between the amount at which the investment is carried and the amount of underlying equity in net assets. | ||||||||||||||
        OZON Holdings Limited—In April 2014 the Group acquired a 10.82% stake in OZON Holdings Limited through the purchase of OZON Holdings Limited's additional share issuance for RUB 2,702 million ($75 million). The Group concluded that it is able to exercise significant influence over OZON Holdings Limited based on direct and indirect ownership of equity shares, representation on the investee's Board of Directors and certain veto rights related to matters intersecting with the Group's interests. The difference between the equity investment carrying amount of RUB 2,708 million and underlying equity in net assets as of December 31, 2014 of RUB 739 million represents equity-method goodwill, mainly attributable to the expected synergies from commercial arrangements and co-branding programs. | ||||||||||||||
        The financial position and results of operations of MTS Bank as of and for the years ended December 31, 2014 and 2013 (since acquisition) were as follows: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
2014 | 2013 | |||||||||||||
Total assets | 215,070 | 224,446 | ||||||||||||
Total liabilities | (181,724 | ) | (201,077 | ) | ||||||||||
Noncontrolling interest | (4,061 | ) | (1,924 | ) | ||||||||||
Total interest income | (25,107 | (18,266 | ||||||||||||
) | ) | |||||||||||||
Total interest expense | 9,868 | 7,737 | ||||||||||||
Operating loss/(profit) | 14,915 | (1,036 | ) | |||||||||||
Net loss/(income) | 12,585 | (868 | ) | |||||||||||
        Summarized financial position and results of operations of other equity method investees as of and for the year ended December 31, 2014 were as follows: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
MTS Belarus | Intellect Telecom | Stream | OZON Holdings | |||||||||||
Limited | ||||||||||||||
Total current assets | 9,022 | 237 | 974 | 7,888 | ||||||||||
Total non-current assets | 8,042 | 458 | 91 | 2,962 | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total assets | 17,064 | 695 | 1,065 | 10,850 | ||||||||||
Total current liabilities | (5,126 | (506 | (341 | (3,640 | ||||||||||
) | ) | ) | ) | |||||||||||
Total non-current liabilities | (168 | ) | (17 | ) | — | (377 | ) | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total liabilities | (5,294 | ) | (523 | ) | (341 | ) | (4,017 | ) | ||||||
Revenue | (17,639 | (198 | (1,280 | (11,097 | ||||||||||
) | ) | ) | ) | |||||||||||
Gross profit | (12,910 | ) | (4 | ) | (566 | ) | (2,369 | ) | ||||||
Net (income) / loss | (7,466 | ) | 170 | (226 | ) | 2,494 | ||||||||
        Revenue, gross profit and net income of Business-Nedvizhimost from January 1, 2014 till the date of its disposal amounted to RUB 196 million, RUB 90 million and RUB 17 million, respectively. | ||||||||||||||
        Summarized financial position and results of operations of equity method investees as of and for the year ended December 31, 2013 were as follows: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
MTS Belarus | Intellect Telecom | Stream | Business- | |||||||||||
Nedvizhimost | ||||||||||||||
(since | ||||||||||||||
deconsolidation) | ||||||||||||||
Total current assets | 5,867 | 140 | 485 | 313 | ||||||||||
Total non-current assets | 6,539 | 483 | 214 | 749 | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total assets | 12,406 | 623 | 699 | 1,062 | ||||||||||
Total current liabilities | (3,161 | (267 | (206 | (181 | ||||||||||
) | ) | ) | ) | |||||||||||
Total non-current liabilities | — | (14 | ) | — | (50 | ) | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total liabilities | (3,161 | ) | (281 | ) | (206 | ) | (231 | ) | ||||||
Revenue | (14,310 | (357 | (738 | (13 | ||||||||||
) | ) | ) | ) | |||||||||||
Gross profit | (10,271 | ) | (66 | ) | (253 | ) | (8 | ) | ||||||
Net (income) / loss | (4,649 | ) | 81 | (9 | ) | (5 | ) | |||||||
        For the years ended December 31, 2014, 2013 and 2012 the Group's share in the earnings or losses of associates amounted to a loss of RUB 2,880 million, gain of RUB 2,472 million and gain of RUB 869 million, respectively and was included in other expense/(income) in the accompanying consolidated statements of operations and comprehensive income. | ||||||||||||||
OTHER_INVESTMENTS
OTHER INVESTMENTS | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
OTHER INVESTMENTS | |||||||||||||||
OTHER INVESTMENTS | |||||||||||||||
16. OTHER INVESTMENTS | |||||||||||||||
        As of December 31, 2014 and 2013, the Group's other investments comprised the following: | |||||||||||||||
                                                                                                                                                                                    | |||||||||||||||
December 31, | |||||||||||||||
Annual | Maturity | ||||||||||||||
Classification | interest rate | date | 2014 | 2013 | |||||||||||
Deposits | Held to maturity | 6.15 - 6.25% | 2016 | 13,671 | — | ||||||||||
Loan receivable from Mr. P. Fattouche and Mr. M. Fattouche(1) | Held to maturity | 6% | 2015 | — | 2,946 | ||||||||||
Loan Participation Notes EMIS BV | Held to maturity | 6% | 2015 | — | 699 | ||||||||||
Promissory notes of Sistema (related party) (Note 25) | Held to maturity | 0.00% | 2017 | 618 | 618 | ||||||||||
Investments in ordinary shares (related party) (Note 25) | At cost | — | — | 125 | 125 | ||||||||||
Other | At cost / held to | — | — | 555 | 4 | ||||||||||
maturity | |||||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total other investments | 14,969Â | 4,392Â | |||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
-1 | Reclassified to short-term investments as due in December 2015. | ||||||||||||||
        The Group does not discount promissory notes and loans granted to related parties, interest rates on which are different from market rates. Accordingly, fair value of such notes and loans may be different from their carrying value. | |||||||||||||||
        In December 2010, the Group granted a $90.0 million (RUB 2,777 million at the date of transaction) loan to Mr. Pierre Fattouche and Mr. Moussa Fattouche, the holders of a 20% noncontrolling stake in K-Telecom, the Group's subsidiary in Armenia. Simultaneously, the Group signed an amendment to the put and call option agreement for the acquisition of noncontrolling stake. According to the amendment, the call exercise price shall be reduced by deducting any outstanding balance on the loan amount and all accrued and unpaid interest and any other sums due and outstanding under the loan agreement at the time of exercise (Note 27). Interest accrued on the loan to Mr. Pierre Fattouche and Mr. Moussa Fattouche for the years ended December 31, 2014, 2013 and 2012 amounted to RUB 212.8 million, RUB 172.7 million and RUB 174.1 million, respectively, and was included as a component of interest income in the accompanying consolidated statements of operations and comprehensive income. The fair value of the loan approximates its carrying value. | |||||||||||||||
        In August 2013, the Group invested $21.3 million (RUB 703 million at the date of transaction) in Loan Participation Notes issued by EMIS BV (effective issuer—Renaissance Capital). The Notes were sold before the maturity date due to deteriorating credit quality for $22.3 million (RUB 764 million at the date of transaction) including realized interest of $1 million (RUB 34 million at recognition date). | |||||||||||||||
        The Group considers credit risk for other investments in loans receivable and deposits to be low. | |||||||||||||||
BORROWINGS
BORROWINGS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
BORROWINGS | ||||||||||||||
BORROWINGS | ||||||||||||||
17. BORROWINGS | ||||||||||||||
        Notes—As of December 31, 2014 and 2013, the Group's notes consisted of the following: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
December 31, | ||||||||||||||
Interest rate | ||||||||||||||
Currency | 2014 | 2013 | ||||||||||||
MTS International Notes due 2020 (Note 2) | USD | 8.625 | % | 35,057 | 24,547 | |||||||||
MTS International Notes due 2023 (Note 2) | USD | 5 | % | 26,920 | 16,365 | |||||||||
MTS OJSC Notes due 2020 | RUB | 8.15 | % | 15,000 | 15,000 | |||||||||
MTS OJSC Notes due 2014 | RUB | 7.6 | % | — | 13,619 | |||||||||
MTS OJSC Notes due 2017 | RUB | 8.7 | % | 10,000 | 10,000 | |||||||||
MTS OJSC Notes due 2023 | RUB | 8.25 | % | 10,000 | 10,000 | |||||||||
MTS OJSC Notes due 2015 | RUB | 7.75 | % | 7,537 | 7,537 | |||||||||
MTS OJSC Notes due 2016 | RUB | 8.75 | % | 1,788 | 1,788 | |||||||||
MTS OJSC Notes due 2018 | RUB | 12 | % | 136 | 3,844 | |||||||||
MTS OJSC Notes due 2015 (A series) | RUB | 0.67 | % | 12 | 12 | |||||||||
MTS OJSC Notes due 2015Â -Â 2016 (B series) | RUB | 0.54 | % | 12 | 12 | |||||||||
MTS OJSC Notes due 2021Â -Â 2022 (V series) | RUB | 0.25 | % | 12 | 12 | |||||||||
Plus: unamortized premium | 3 | 8 | ||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||
Total notes | 106,477 | 102,744 | ||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||
Less: current portion | (22,701 | ) | (17,462 | ) | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||
Total notes, long-term | 83,776 | 85,282 | ||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||
        The Group has an unconditional obligation to repurchase certain MTS OJSC Notes at par value if claimed by the noteholders subsequent to the announcement of sequential coupon. The dates of the announcement for each particular note issue are as follows: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
MTS OJSC Notes due 2018 | Dec-15 | |||||||||||||
MTS OJSC Notes due 2020 | Nov-15 | |||||||||||||
MTS OJSC Notes due 2023 | Mar-18 | |||||||||||||
        The notes therefore can be defined as callable obligations under the FASB ASC 470, Debt, as the holders have the unilateral right to demand repurchase of the notes at par value upon announcement of new coupons. This guidance requires callable obligations to be disclosed as maturing in the reporting period, when the demand for repurchase could be submitted disregarding the expectations of the Group about the intentions of the noteholders. The Group discloses the notes as maturing in 2015 (MTS OJSC Notes due 2018 and 2020) and in 2018 (MTS OJSC Notes due 2023) in the aggregated maturities schedule as these are the reporting periods when the noteholders will have the unilateral right to demand repurchase. | ||||||||||||||
        In December 2014, the Group changed the coupon rate for MTS OJSC Notes due 2018 from 7.50% to 12.00%. Following the announcement of new coupon rates the Group repurchased MTS OJSC Notes due 2018 at the request of eligible noteholders in the amount of RUB 3,710 million. | ||||||||||||||
        As of December 31, 2014 the Group had the following unclosed repurchase transactions with a due date on January 14, 2015: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
Number of | Due Amount | Unrealized | Total | |||||||||||
Notes | Premium | |||||||||||||
MTS OJSC Notes due 2015 | 2,420,000 | 1,670 | (5 | ) | 1,665 | |||||||||
MTS OJSC Notes due 2018 | 2,928,358 | 1,760 | — | 1,760 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |
3,425 | ||||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​  | |
        The above balance is included in the short-term portion of bank loans and other debt disclosed below. | ||||||||||||||
        The fair values of notes based on the market quotes as of December 31, 2014 at the stock exchanges where they are traded were as follows: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
Stock exchange | % of par | Fair value | ||||||||||||
MTS International Notes due 2020 | Frankfurt stock exchange | 95.85Â | 33,602Â | |||||||||||
MTS International Notes due 2023 | Frankfurt stock exchange | 75.00Â | 20,190Â | |||||||||||
MTS OJSC Notes due 2020 | Moscow Exchange | 96.33Â | 14,450Â | |||||||||||
MTS OJSC Notes due 2017 | Moscow Exchange | 90.10Â | 9,010Â | |||||||||||
MTS OJSC Notes due 2023 | Moscow Exchange | 100.19Â | 10,019Â | |||||||||||
MTS OJSC Notes due 2015 | Moscow Exchange | 96.81Â | 7,297Â | |||||||||||
MTS OJSC Notes due 2016 | Moscow Exchange | 85.30Â | 1,525Â | |||||||||||
MTS OJSC Notes due 2018 | Moscow Exchange | 95.06Â | 129Â | |||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |||||
Total notes | 96,222Â | |||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​  | |||||
        Bank loans and other debt—As of December 31, 2014 and 2013, the Group's loans from banks and other companies consisted of the following: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
December 31, | ||||||||||||||
Interest rate (actual at | ||||||||||||||
Maturity | December 31, 2014) | 2014 | 2013 | |||||||||||
USD-denominated: | ||||||||||||||
Calyon, ING Bank N.V, Nordea Bank AB, Raiffeisen Zentralbank Osterreich AG | 2015 - 2020 | LIBORÂ +Â 1.15% (1.51%) | 37,901 | 26,132 | ||||||||||
Skandinavska Enskilda Banken AB | 2015 - 2017 | LIBORÂ +Â 0.23 - 1.8% | 5,175 | 4,238 | ||||||||||
(0.59 - 2.16%) | ||||||||||||||
HSBC Bank plc and ING BHF Bank AG | 2015 | LIBOR + 0.3% (0.66%) | — | 394 | ||||||||||
Other | 2015 | 15% | 164 | 258 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
43,240 | 31,022 | |||||||||||||
EUR-denominated: | ||||||||||||||
Bank of China | 2015 | EURIBOR + 1.95% (2.12%) | — | 2,435 | ||||||||||
Credit Agricole Corporate Bank and BNP Paribas | 2015 - 2018 | EURIBORÂ +Â 1.65% (1.82%) | 1,893 | 1,557 | ||||||||||
LBBW | 2015 - 2017 | EURIBOR +1.52% (1.69%) | 956 | 839 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
2,849 | 4,831 | |||||||||||||
RUB-denominated: | ||||||||||||||
Sberbank | 2015 - 2021 | 8.45 - 12.05% | 125,000 | 80,000 | ||||||||||
Notes in REPO | 2015 | 19.36% | 3,425 | — | ||||||||||
SMM | 2015 | 0 - 15% | 556 | — | ||||||||||
Other | 2015 - 2023 | Various | 456 | 395 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
129,437 | 80,395 | |||||||||||||
AMD-denominated: | ||||||||||||||
ASHIB | 2015 | 13% | 176 | 108 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
176 | 108 | |||||||||||||
UZS-denominated: | ||||||||||||||
— | ||||||||||||||
Aloqabank | 2019 - 2022 | 12% | 759 | — | ||||||||||
Uzbektelecom | 2015 | 10% | 58 | —  | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
817 | ||||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Total bank loans and other debt | 176,519 | 116,356 | ||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Less: current portion | (19,435 | ) | (7,564 | ) | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Total bank loans and other debt, long-term | 157,084 | 108,792 | ||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||
        In 2014, the Group negotiated changes in interest rates and maturity dates for several credit facilities. None of these modifications were considered to be substantial. | ||||||||||||||
        Borrowing costs and interest capitalized—Borrowing costs include interest incurred on existing indebtedness and debt issuance costs. Interest expense incurred during the construction phase of property, plant and equipment is capitalized as part of the value of the constructed assets until they are ready for use. The capitalized interest costs for the years ended December 31, 2014, 2013 and 2012 amounted to RUB 1,460 million, RUB 1,942 million and RUB 1,792 million, respectively. Debt issuance costs are capitalized and amortized using the effective interest method over the terms of the related loans. | ||||||||||||||
        Interest expense, net of amounts capitalized and amortization of debt issuance costs, for the years ended December 31, 2014, 2013 and 2012 was RUB 15,808 million, RUB 14,714 million and RUB 16,721 million, respectively. | ||||||||||||||
        Compliance with covenants—Bank loans and notes of the Group are subject to certain covenants limiting the Group's ability to incur debt, carry on transactions with related parties, create liens on properties, dispose assets, including GSM and 3G licenses for several license areas, issue guaranties, grant loans to employees and entities, delist notes, delay coupon payments, merge or consolidate MTS OJSC with another entity or be a subject to a court decision to pay over $10 million (RUB 563 million as of the reporting date), which is remained unsatisfied for more than 60 days without being appealed, discharged or waived. | ||||||||||||||
        The Group is required to comply with certain financial ratios and maintain ownership in certain subsidiaries. | ||||||||||||||
        The noteholders of MTS International Notes due 2020 and MTS International Notes due 2023 have the right to require the Group to redeem the notes at 101% of their principal amount and related interest, if the Group experiences a change in control. | ||||||||||||||
        If the Group fails to meet these covenants, after certain notice and cure periods, the debtholders are entitled to accelerate the repayment of the debt. | ||||||||||||||
        The Group was in compliance with all existing notes and bank loan covenants as of December 31, 2014. | ||||||||||||||
        Pledges—The non-revolving credit facility agreement between UMS and Aloqabank with total amount as of December 31, 2014 of RUB 759 million is secured by telecommunication equipment and premises with carrying value of RUB 2,038 million. | ||||||||||||||
        Available credit facilities—As of December 31, 2014, the Group's total available unused credit facilities amounted to RUB 44,378 million and related to the following credit lines: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
Maturity | Interest rate | Available till | Available | |||||||||||
amount | ||||||||||||||
Sberbank | 2018 - 2021 | 16% | Jun-15 | 25,000Â | ||||||||||
CitiBank Europe | 2024 | LIBOR 6M+ 0.9% | Apr-15 | 16,878Â | ||||||||||
ING Bank Eurasia | 2015 | MosPrime / LIBOR / | Jul-15 | 2,500Â | ||||||||||
EURIBORÂ +Â 1.50% | ||||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ||||
Total | 44,378Â | |||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​  | ||||
        In addition, the Group has a credit facility made available by Citibank at MosPrime + 1.50% interest rate with the available amount set up on request and to be repaid within 182 days. | ||||||||||||||
        The following table presents the aggregated scheduled maturities of principal on notes and bank loans outstanding for the five years ending December 31, 2019 and thereafter: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
Notes | Bank loans | |||||||||||||
and other debt | ||||||||||||||
Payments due in the year ending December 31, | ||||||||||||||
2015 | 22,701Â | 19,435Â | ||||||||||||
2016 | 1,788Â | 33,821Â | ||||||||||||
2017 | 10,000Â | 39,937Â | ||||||||||||
2018 | 10,000Â | 28,527Â | ||||||||||||
2019 | — | 31,695 | ||||||||||||
Thereafter | 61,988Â | 23,104Â | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Total | 106,477Â | 176,519Â | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||||||
CAPITAL_LEASE_OBLIGATION
CAPITAL LEASE OBLIGATION | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
CAPITAL LEASE OBLIGATION | ||||||||
CAPITAL LEASE OBLIGATION | ||||||||
18. CAPITAL LEASE OBLIGATION | ||||||||
        The following table presents a summary of assets under capital lease and accumulated depreciation as of December 31, 2014 and 2013: | ||||||||
                                                                                                                                                                                    | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Network and base station equipment | 6,427 | — | ||||||
Vehicles | 73 | 942 | ||||||
Buildings | — | 28 | ||||||
Leased assets, at cost | 6,500 | 970 | ||||||
Accumulated depreciation | (438 | ) | (793 | ) | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Leased assets, net | 6,062 | 177 | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
        Depreciation of assets under capital leases for the years ended December 31, 2014, 2013 and 2012 amounted to RUB 509 million, RUB 276 million and RUB 288 million, respectively and was included in depreciation and amortization expense in the accompanying consolidated statements of operations and comprehensive income. | ||||||||
        Interest expense on capital lease obligations for the years ended December 31, 2014, 2013 and 2012 amounted to RUB 340 million, RUB 182 million and RUB 135 million, respectively. | ||||||||
        The following table presents future minimum lease payments under capital leases together with the present value of the net minimum lease payments: | ||||||||
                                                                                                                                                                                    | ||||||||
Payments due for the year ended December 31, | ||||||||
2015 | 1,119 | |||||||
2016 | 1,108 | |||||||
2017 | 1,153 | |||||||
2018 | 1,159 | |||||||
2019 | 1,159 | |||||||
Thereafter | 7,687 | |||||||
​ | ​ | ​  | ​  | ​ | ||||
Total minimum lease payments (undiscounted) | 13,385 | |||||||
Less amount representing interest | (3,990 | |||||||
) | ||||||||
​ | ​ | ​  | ​  | ​ | ||||
Present value of net minimum lease payments | 9,395 | |||||||
Less current portion of lease obligations | (538 | |||||||
) | ||||||||
​ | ​ | ​  | ​  | ​ | ||||
Non-current portion of lease obligations | 8,857 | |||||||
​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​  | ||||
        Leased assets include automobiles, network equipment and transponders which are installed on a satellite. The average lease term of the automobiles is three years. The Group has an obligation to purchase these automobiles under the respective capital lease agreements at the end of the lease term. The lease term of network equipment is fifteen years. The lease term of the transponders is twelve years. The Group is planning to use the transponders for providing satellite television services. | ||||||||
ASSET_RETIREMENT_OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
ASSET RETIREMENT OBLIGATIONS | ||||||||
ASSET RETIREMENT OBLIGATIONS | ||||||||
19. ASSET RETIREMENT OBLIGATIONS | ||||||||
        As of and for the years ended December 31, 2014 and 2013, the estimated present value of the Group's asset retirement obligations and related change in liabilities were as follows: | ||||||||
                                                                                                                                                                                    | ||||||||
2014 | 2013 | |||||||
Balance, beginning of the year | 2,743 | 2,763 | ||||||
Liabilities incurred in the current period | 73 | 303 | ||||||
Accretion expense | 251 | 97 | ||||||
Revisions in estimated cash flows | 26 | (453 | ) | |||||
Disposal of assets | (41 | ) | — | |||||
Currency translation adjustment | (30 | ) | 33 | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance, end of the year | 3,022 | 2,743 | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
        Revisions in estimated cash flows are attributable to the change in the estimated inflation rate and cost of dismantling of assets. | ||||||||
DEFERRED_CONNECTION_FEES
DEFERRED CONNECTION FEES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
DEFERRED CONNECTION FEES | ||||||||
DEFERRED CONNECTION FEES | ||||||||
20. DEFERRED CONNECTION FEES | ||||||||
        Deferred connection fees as of and for the years ended December 31, 2014 and 2013, were as follows: | ||||||||
                                                                                                                                                                                    | ||||||||
2014 | 2013 | |||||||
Balance, beginning of the year | 3,649 | 3,817 | ||||||
Payments received and deferred during the year | 1,763 | 1,714 | ||||||
Amounts amortized and recognized as revenue during the year | (1,912 | ) | (1,921 | ) | ||||
Currency translation adjustment | (63 | ) | 39 | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance, end of the year | 3,437 | 3,649 | ||||||
Less: current portion | (1,677 | ) | (1,604 | ) | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Non-current portion | 1,760 | 2,045 | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
        The Group defers initial connection fees paid by subscribers for the activation of network service as well as one-time activation fees received for connection to various value added services. These fees are recognized as revenue over the estimated average subscriber life (Note 2). | ||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||||||
21. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||||||
Cash flow hedging | |||||||||||||
        The Group regularly enters into variable-to-fixed interest rate swap agreements to manage the exposure of changes in variable interest rate related to its debt obligations. The instruments qualify for cash flow hedge accounting under U.S. GAAP requirements. Each interest rate swap matches the exact maturity dates of the underlying debt allowing for highly-effective hedges. Interest rate swap contracts outstanding as of December 31, 2014 mature in 2015, 2018 and 2020. | |||||||||||||
        In aggregate the Group entered into interest rate swap agreements designated to manage the exposure of changes in variable interest rate related to 0.12% of the Group's USD- and Euro- denominated bank loans outstanding as of December 31, 2014. | |||||||||||||
        In addition to the above, the Group has also entered into several cross-currency interest rate swap agreements. These contracts hedged the risk of both interest rate and currency fluctuations and assumed periodic exchanges of both principal and interest payments from RUB-denominated amounts to USD- and Euro- denominated amounts to be exchanged at a specified rate. The rate was determined by the market spot rate upon issuance. Cross-currency interest rate swap contracts mature in 2019-2020. | |||||||||||||
        The Group entered into cross-currency interest rate swap agreements designated to manage the exposure of changes in variable interest rate and currency exchange rate for 35.1% of its USD- and Euro- denominated bank loans and Eurobonds outstanding as of December 31, 2014. | |||||||||||||
        The following table presents the fair value of the Group's derivative instruments designated as hedges in the consolidated statements of financial position December 31, 2014 and 2013. | |||||||||||||
                                                                                                                                                                                    | |||||||||||||
December 31, | |||||||||||||
Statements of financial position location | 2014 | 2013 | |||||||||||
Asset derivatives | |||||||||||||
Cross-currency interest rate swaps | Other non-current assets | 21,936 | 1,825 | ||||||||||
Interest rate swaps | Other non-current assets | 8 | 12 | ||||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total | 21,944 | 1,837 | |||||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
Liability derivatives | |||||||||||||
Interest rate swaps | Other long-term liabilities | (522 | ) | (389 | ) | ||||||||
Interest rate swaps | Other payables | (2,028 | ) | (32 | ) | ||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total | (2,550 | ) | (421 | ) | |||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
        The following table presents the effect of the Group's derivative instruments designated as hedges in the consolidated statements of operations and comprehensive income for the years ended December 31, 2014, 2013 and 2012. The amounts presented include the ineffective portion of derivative instruments and the amounts reclassified into earnings from accumulated other comprehensive income. | |||||||||||||
                                                                                                                                                                                    | |||||||||||||
Years ended | |||||||||||||
December 31, | |||||||||||||
Location of gain / (loss) recognized | 2014 | 2013 | 2012 | ||||||||||
Interest rate swaps | Interest income/(expense) | 231 | (184 | ) | (429 | ) | |||||||
Including ineffective portion | Interest income/(expense) | 173 | (28 | ) | (183 | ) | |||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Cross-currency interest rate swaps | Currency exchange and transaction gain/ (loss) | 15,288 | (777 | ) | (235 | ) | |||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Including ineffective portion | Currency exchange and transaction gain/(loss) | (2,315 | ) | — | — | ||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total | 15,519 | (961 | ) | (664 | ) | ||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
        In May 2013, the Group repaid the full amount due under the HSBC bank credit facility granted to MTS OJSC in 2004 with an original maturity in November 2013. The voluntary prepayment of principal and interest in the amount of RUB 102 million ($3.2 million) resulted in an immediate termination of the hedging relationship between designated interest rate swap agreements and the credit facility. | |||||||||||||
        In May 2013, the Group repaid the full amount due under the Citibank credit facility granted to MTS OJSC in 2005 with an original maturity in May 2014. The voluntary prepayment of principal and interest in the amount of RUB 686 million ($21.8 million) resulted in an immediate termination of the hedging relationship between designated interest rate swap agreements and the credit facility. | |||||||||||||
        In April 2013, the Group repaid the full amount due under the HSBC bank credit facility granted to MTS OJSC in 2004 with an original maturity in October 2013. The voluntary prepayment of principal and interest of RUB 132 million ($4.2 million) resulted in an immediate termination of the hedging relationship between designated interest rate swap agreements and the credit facility. | |||||||||||||
        In March 2013, the Group repaid the full amount due under the HSBC bank credit facility granted to MTS OSJC in 2004 with an original maturity in September 2013. The voluntary prepayment of principal and interest in the amount of RUB 276 million ($8.9 million) resulted in an immediate termination of the hedging relationship between designated interest rate swap agreements and the credit facility. | |||||||||||||
        After the termination of hedging relationships any amounts accumulated in other comprehensive income and associated with the prepaid debt have been reclassified into earnings, going forward those derivatives are marked to market through earnings. | |||||||||||||
        The following table presents the amount of accumulated other comprehensive loss reclassified into earnings during the years ended December 31, 2014, 2013 and 2012 due to termination of hedging relationships. | |||||||||||||
                                                                                                                                                                                    | |||||||||||||
Years ended December 31, | |||||||||||||
Location of (loss) recognized | 2014 | 2013 | 2012 | ||||||||||
Interest rate swaps | Interest expense | — | (33 | ) | —  | ||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total | — | (33 | ) | — | |||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
        The following table presents the effect of the Group's interest rate swap agreements designated as hedges in accumulated other comprehensive income for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||
                                                                                                                                                                                    | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Accumulated derivatives income / (loss), beginning of the year, net of tax of 293 and 4 and (60), respectively | 1,467 | 21 | (241 | ) | |||||||||
Fair value adjustments on hedging derivatives, net of tax of 2,894 and 138 and (29), respectively | 14,468 | 691 | (204 | ) | |||||||||
Amounts reclassified into earnings during the period, net of tax of (2,334) and 151 and 93, respectively | (11,668 | ) | 755 | 466 | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Accumulated derivatives income, end of the year, net of tax of 853 and 293 and 4, respectively | 4,267 | 1,467 | 21 | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||
        As of December 31, 2014, the outstanding hedging instruments were highly effective. Approximately RUB 1,011 million of accumulated gain is expected to be reclassified into net income during the next twelve months. | |||||||||||||
        Cash inflows and outflows related to hedging instruments were included in cash flows from operating and financing activities in the consolidated statements of cash flows for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||
Fair value of derivative instruments | |||||||||||||
        The Group measured assets and liabilities associated with derivative agreements at fair value Level 2 on a recurring basis. There were no assets and liabilities associated with derivative agreements measured at fair value Level 1 and Level 3 as of December 31, 2014 and 2013 (Note 2 and 22). | |||||||||||||
        The following fair value hierarchy table presents information regarding the Group's assets and liabilities associated with derivative agreements as of December 31, 2014 and 2013: | |||||||||||||
                                                                                                                                                                                    | |||||||||||||
Significant other | Significant other | ||||||||||||
observable | observable | ||||||||||||
inputs | inputs | ||||||||||||
(Level 2) as of | (Level 2) as of | ||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Interest rate swap agreements | 8 | 12 | |||||||||||
Cross-currency interest rate swap agreements | 21,936 | 1,825 | |||||||||||
Liabilities | |||||||||||||
Interest rate swap agreements | (2,550 | ) | (421 | ) | |||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||
22. FAIR VALUE MEASUREMENTS | |||||||||||
        According to U.S. GAAP requirements the Group records derivative instruments, redeemable noncontrolling interest, contingent consideration and available-for-sale investments at fair value on a recurring basis. | |||||||||||
        The following tables summarize those assets and liabilities measured at fair value on a recurring basis: | |||||||||||
                                                                                                                                                                                    | |||||||||||
Significant | Significant other | Significant | |||||||||
observable | observable | unobservable | |||||||||
inputs | inputs | inputs | |||||||||
(Level 1) as of | (Level 2) as of | (Level 3) as of | |||||||||
December 31, | December 31, | December 31, | |||||||||
2014 | 2014 | 2014 | |||||||||
Assets | |||||||||||
Sistema International Funding S.A. Bonds due 2019 (related party) (Note 7, 25) | 42 | — | — | ||||||||
Sistema Notes due in 2016 (series 04) (related party) (Note 7, 25) | 534 | — | — | ||||||||
Derivative instruments (Note 21) | — | 21,944 | — | ||||||||
Liabilities | |||||||||||
Derivative instruments (Note 21) | — | (2,550 | ) | — | |||||||
Contingent consideration | — | — | (99 | ) | |||||||
Redeemable noncontrolling interest (Note 27) | — | — | (3,192 | ) | |||||||
                                                                                                                                                                                    | |||||||||||
Significant | Significant other | Significant | |||||||||
observable | observable | unobservable | |||||||||
inputs | inputs | inputs | |||||||||
(Level 1) as of | (Level 2) as of | (Level 3) as of | |||||||||
December 31, | December 31, | December 31, | |||||||||
2013 | 2013 | 2013 | |||||||||
Assets | |||||||||||
Mutual investment fund "Reservnyi" (Note 7 and 25) | 4,154 | — | — | ||||||||
Derivative instruments (Note 21) | — | 1,837 | — | ||||||||
Liabilities | |||||||||||
Derivative instruments (Note 21) | — | (421 | ) | — | |||||||
Contingent consideration | — | — | (11 | ) | |||||||
Redeemable noncontrolling interest (Note 27) | — | — | (2,932 | ) | |||||||
        Changes in the Group's net assets and earnings resulted from recurring fair value measurements of Level 3 assets and liabilities were not significant for the years ended December 31, 2014 and 2013. There were no realized and unrealized gains and losses on Level 3 assets and liabilities for the years ended December 31, 2014 and 2013. | |||||||||||
        The fair value measurement of the Group's derivative instruments is based on the observable yield curves for similar instruments. The redeemable noncontrolling interest was measured at fair value using a discounted cash flow technique. The fair value of contingent consideration was determined as the best estimate of all possible outcomes of the contingency. The inputs are based on all available internal and external information, including growth projections and industry experts' estimates, where applicable. | |||||||||||
        The most significant quantitative inputs used to measure the fair value of redeemable noncontrolling interest as of December 31, 2014 and 2013 are presented in the table below: | |||||||||||
                                                                                                                                                                                    | |||||||||||
December 31, | |||||||||||
Unobservable inputs | 2014 | 2013 | |||||||||
Discount rate | 15%Â | 12%Â | |||||||||
Revenue growth rate | 0.02Â -Â 0.2% (av. 0.1%) | 0.7Â -Â 1.2% (av. 0.9%) | |||||||||
OIBDA margin | 44.7Â -Â 46.5% (av. 45.4%) | 49.4Â -Â 50.7% (av. 49.8%) | |||||||||
        There were no transfers between levels within the hierarchy for the years ended December 31, 2014 and 2013. | |||||||||||
        In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Group records assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. In 2014, an impairment charge of RUB 3,225 million related to equity investment in MTS Bank was recognized in equity net loss / (income) of associates in the accompanying consolidated statements of operations and comprehensive income (Note 15). The impairment reflects the review of the development prospects associated with an economic downturn in Russia. The fair value of equity investment in the amount of RUB 4,857 million was determined based on a discounted cash flow technique utilizing significant unobservable inputs ("Level 3" significant unobservable inputs of the hierarchy established by the U.S. GAAP guidance). The key assumptions in the fair value calculations included discount rate of 23.3% and average OIBDA margin of 5%. | |||||||||||
        No impairment charges were recognized in the consolidated statements of operations and comprehensive income for the year ended December 31, 2013. | |||||||||||
        An impairment loss of RUB 20,037 million on Uzdunrobita goodwill and long-lived assets was recognized in the consolidated statements of operations and comprehensive income for the year ended December 31, 2012 (Note 4). In 2013 this loss was assigned to discontinued operations. | |||||||||||
        The carrying amounts of cash and cash equivalents; short-term investments; accounts receivable; accounts payable and accrued expenses approximate their fair values because of the relatively short-term maturities of these financial instruments. | |||||||||||
        The fair value of notes payable is estimated based on quoted prices for those instruments ("Level 1" of the hierarchy established by the U.S. GAAP guidance). As of December 31, 2014 and 2013, the fair value of notes payable, including the current portion, amounted to RUB 96,222 million and RUB 106,668 million, respectively. | |||||||||||
        The fair value of bank loans and other debt is estimated using discounted cash flows and market-based expectations for interest rates, credit risk and the contractual terms of the debt instruments ("Level 2" of the hierarchy established by the U.S. GAAP guidance). As of December 31, 2014 and 2013 the fair value of bank loans and other debt, including the current portion, amounted to RUB 162,914 million and RUB 116,356 million, respectively. | |||||||||||
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
ACCRUED LIABILITIES | ||||||||
ACCRUED LIABILITIES | ||||||||
23. ACCRUED LIABILITIES | ||||||||
        Accrued liabilities as of December 31, 2014 and 2013 comprised the following: | ||||||||
                                                                                                                                                                                    | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accruals for services | 10,870Â | 9,911Â | ||||||
Accrued payroll and vacation | 7,670Â | 7,247Â | ||||||
Accruals for taxes | 6,703Â | 8,355Â | ||||||
Interest payable on debt | 1,830Â | 1,792Â | ||||||
Accruals for payments to social funds | 547Â | 369Â | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total accrued liabilities | 27,620Â | 27,674Â | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
INCOME_TAX
INCOME TAX | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
INCOME TAX | |||||||||||||||||
INCOME TAX | |||||||||||||||||
24. INCOME TAX | |||||||||||||||||
        The provision for income taxes for the years ended December 31, 2014, 2013 and 2012 was as follows: | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
Years ended | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Income from continuing operations before provision for income taxes | |||||||||||||||||
Russia | 55,424 | 77,502 | 71,626 | ||||||||||||||
Other jurisdictions | 13,316 | 19,186 | 11,216 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Total income from continuing operations before provision for income taxes | 68,740 | 96,688 | 82,842 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Current income tax expense | |||||||||||||||||
Russia | 5,764 | 7,557 | 13,790 | ||||||||||||||
Other jurisdictions | 4,043 | 2,405 | 2,304 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Total current income tax expense | 9,807 | 9,962 | 16,094 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Deferred income tax expense/(benefit) | |||||||||||||||||
Russia | 8,330 | 8,487 | 2,312 | ||||||||||||||
Other jurisdictions | (1,790 | ) | 1,184 | 978 | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Total deferred income tax expense | 6,540 | 9,671 | 3,290 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Total provision for income taxes | 16,347 | 19,633 | 19,384 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||||||
        The statutory income tax rates in jurisdictions in which the Group operates for the fiscal years of 2014, 2013 and 2012 were as follows: Russia, Armenia—20.0%, Uzbekistan, Turkmenistan—8.0%. During the years ended December 31, 2014, 2013 and 2012 the Ukraine tax rate was 18.0%, 19.0% and 21.0%, respectively. | |||||||||||||||||
        The Russia statutory income tax rate reconciled to the Group's effective income tax rate for the years ended December 31, 2014, 2013 and 2012 was as follows: | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Statutory income tax rate for the year | 20 | % | 20 | % | 20 | % | |||||||||||
Adjustments: | |||||||||||||||||
(Income) / expenses not accepted for tax purposes | 2 | (0.5 | ) | 2 | |||||||||||||
Change in unrecognized tax benefits | — | — | (0.5 | ) | |||||||||||||
Settlements with tax authorities | 0.6 | (0.3 | ) | 0.4 | |||||||||||||
Earnings distribution from subsidiaries | 4 | 1.8 | 1.5 | ||||||||||||||
Effect of change in tax rate in Ukraine | — | (0.1 | ) | 0.2 | |||||||||||||
Loss carryforward utilisation | — | — | (0.3 | ) | |||||||||||||
Tax rate differential of foreign subsidiaries | (1.9 | ) | (0.5 | ) | — | ||||||||||||
Recognised change in fair value of derivative financial instruments | (1.0 | ) | 0.1 | — | |||||||||||||
Other | 0.1 | (0.2 | ) | 0.1 | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Effective income tax rate | 23.8 | % | 20.3 | % | 23.4 | % | |||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||||||
        Temporary differences between the tax and accounting bases of assets and liabilities gave rise to the following deferred tax assets and liabilities as of December 31, 2014 and 2013: | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Assets / (liabilities) arising from tax effect of: | |||||||||||||||||
Deferred tax assets | |||||||||||||||||
Accrued expenses for services | 7,757 | 6,291 | |||||||||||||||
Depreciation of property, plant and equipment | 4,015 | 1,229 | |||||||||||||||
Deferred connection fees | 929 | 1,115 | |||||||||||||||
Provision for investment in Delta Bank in Ukraine | 925 | — | |||||||||||||||
Inventory obsolescence | 192 | 265 | |||||||||||||||
Other | — | 1,242 | |||||||||||||||
Loss carryforward | 8,879 | 5,880 | |||||||||||||||
Valuation allowance | (8,438 | ) | (5,504 | ) | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
Total deferred tax assets | 14,259 | 10,518 | |||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||||||||
Deferred tax liabilities | |||||||||||||||||
Depreciation of property, plant and equipment | (17,489 | ) | (12,735 | ) | |||||||||||||
Other intangible assets | (6,906 | ) | (2,995 | ) | |||||||||||||
Potential distributions from / to Group's subsidiaries / associates | (5,817 | ) | (4,553 | ) | |||||||||||||
Licenses acquired | (1,118 | ) | (774 | ) | |||||||||||||
Customer base | (905 | ) | (1,027 | ) | |||||||||||||
Debt issuance cost | (348 | ) | (405 | ) | |||||||||||||
Other | (138 | ) | (436 | ) | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
Total deferred tax liabilities | (32,721 | ) | (22,925 | ) | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||||||||
Net deferred tax liability | (18,462 | ) | (12,407 | ) | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||||||||
Net deferred tax asset, current | 11,206 | 7,933 | |||||||||||||||
Net deferred tax asset, non-current | 3,610 | 862 | |||||||||||||||
Net deferred tax liability, long-term | (33,278 | ) | (21,202 | ) | |||||||||||||
        The Group has the following significant balances of income tax losses carryforward with related operating losses as of December 31, 2014 and 2013: | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Jurisdiction | Period for | Operating | Tax | Operating | Tax | ||||||||||||
carry-forward | losses | losses | losses | losses | |||||||||||||
Luxembourg (MGTS Finance S.A.) | Unlimited | 24,183 | 7,017 | 14,064 | 4,101 | ||||||||||||
Russia (Comstar-Regions and other) | 2015Â -Â 2024 | 9,313Â | 1,862Â | 8,897Â | 1,779Â | ||||||||||||
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total | 33,496Â | 8,879Â | 22,961Â | 5,880Â | |||||||||||||
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
        Management established the following valuation allowances against deferred tax assets where it was more likely than not that some portion of such deferred tax assets will not be realized: | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
December 31, | |||||||||||||||||
Valuation allowances | 2014 | 2013 | |||||||||||||||
Sale of investment in Svyazinvest | 2,875Â | 2,160Â | |||||||||||||||
Operating loss in Luxemburg (MGTS Finance S.A.) | 5,305 | 3,086 | |||||||||||||||
Other | 258Â | 258Â | |||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
Total | 8,438Â | 5,504Â | |||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||||||||
        The following table summarizes the changes in the allowance against deferred tax assets for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
Balance, | Charged to | Impact of | Balance, end of | ||||||||||||||
beginning of | Income tax | foreign currency | the period | ||||||||||||||
the period | expense | translation | |||||||||||||||
adjustments | |||||||||||||||||
Year ended December 31, 2014 | 5,504 | — | 2,934 | 8,438 | |||||||||||||
Year ended December 31, 2013 | 4,952 | 258 | 294 | 5,504 | |||||||||||||
Year ended December 31, 2012 | 5,250 | — | (298 | ) | 4,952 | ||||||||||||
        For the remaining balances for income tax losses carryforward realization is dependent on generating sufficient taxable income prior to expiration of the losses carryforward. Although realization is not assured, management believes that it is more likely than not that all of the deferred tax assets will be realized. The amount of the deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. | |||||||||||||||||
        As of December 31, 2014 and 2013, the Group recognized deferred income tax liabilities of RUB 3,118 million and RUB 2,511 million, respectively, for income taxes on future dividend distributions from foreign subsidiaries (MTS Ukraine and K-Telecom) which are based on RUB 40,383 million and RUB 36,245 million cumulative undistributed earnings of those foreign subsidiaries in accordance with local statutory accounting regulations (unaudited) because such earnings are intended to be repatriated. | |||||||||||||||||
        As of December 31, 2014, 2013 and 2012, the Group included accruals for uncertain tax positions in the amount of RUB 285 million, RUB 518 million and RUB 321 million, respectively, as a component of income tax payable. | |||||||||||||||||
        A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance, beginning of the year | 518 | 321 | 526 | ||||||||||||||
Additions based on tax position related to the current year | 37 | 366 | |||||||||||||||
— | |||||||||||||||||
Additions based on tax positions related to prior years | 22 | 1 | 66 | ||||||||||||||
Additions based on tax of acquired entities | — | — | 10 | ||||||||||||||
Reduction in tax positions related to prior years | (267 | ) | (170 | ) | (220 | ) | |||||||||||
Settlements with tax authorities | (25 | ) | — | (61 | ) | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Balance, end of the year | 285 | 518 | 321 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||||||
        Accrued penalties and interest related to unrecognized tax benefits as a component of income tax expense for the years ended December 31, 2014, 2013 and 2012 amounted to a reversal of RUB 40 million, a reversal of RUB 53 million and a reversal of RUB 36 million, respectively, and were included in income tax expense in the accompanying consolidated statements of operations and comprehensive income. Accrued interest and penalties were included in income tax payable in the accompanying consolidated statements of financial position and totaled RUB 58 million and RUB 97 million as of December 31, 2014 and 2013, respectively. The Group does not expect the unrecognized tax benefits to change significantly over the next twelve months (Note 30). | |||||||||||||||||
RELATED_PARTIES
RELATED PARTIES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
RELATED PARTIES | |||||||||||
RELATED PARTIES | |||||||||||
25. RELATED PARTIES | |||||||||||
        Related parties include entities under common ownership and control with the Group, affiliated companies and associated companies. | |||||||||||
        As of December 31, 2014 and 2013, accounts receivable from and accounts payable to related parties were as follows: | |||||||||||
                                                                                                                                                                                    | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Accounts receivable: | |||||||||||
Sistema, parent company (Note 15) | 3,215 | — | |||||||||
MTS Belarus, the Group associate | 514Â | 304Â | |||||||||
MTS Bank, the Group associate | 510Â | 128Â | |||||||||
Sitronics N, a subsidiary of Sistema | 121Â | 337Â | |||||||||
Stream, the Group associate | 42Â | 59Â | |||||||||
NVision Group, subsidiaries of Sistema | 16Â | 33Â | |||||||||
Other related parties | 107Â | 104Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total accounts receivable, related parties | 4,525Â | 965Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
Accounts payable: | |||||||||||
NVision Group, subsidiaries of Sistema | 3,311Â | 1,605Â | |||||||||
MTS Bank, the Group associate | 377Â | 697Â | |||||||||
MTS Belarus, the Group associate | 213Â | 208Â | |||||||||
Stream, the Group associate | 211Â | 99Â | |||||||||
Maxima, a subsidiary of Sistema | 162Â | 307Â | |||||||||
Smart Cards Group, subsidiaries of Sistema | 72Â | 201Â | |||||||||
Other related parties | 328Â | 198Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total accounts payable, related parties | 4,674Â | 3,315Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
        The Group has neither the intent nor the ability to offset the outstanding accounts payable and accounts receivable with related parties under the terms of existing agreements. | |||||||||||
Operating transactions | |||||||||||
        For the years ended December 31, 2014, 2013 and 2012, operating transactions with related parties are as follows: | |||||||||||
                                                                                                                                                                                    | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenues from related parties: | |||||||||||
MTS Bank, the Group associate (telecommunications and call center services, bank cards distribution commission) | 787 | 378 | 88 | ||||||||
MTS Belarus, the Group associate (roaming and interconnect services) | 269 | 149 | 209 | ||||||||
Medsi Group, subsidiaries of Sistema (telecommunications and call center services) | 83 | 48 | 28 | ||||||||
NVision Group, subsidiaries of Sistema (fixed line services) | 82 | 75 | 77 | ||||||||
Sitronics N, a subsidiary of Sistema (construction of fiber optic link) | 7 | 288 | 26 | ||||||||
Jet Air Group, subsidiaries of Sistema (rent) | 4 | 60 | — | ||||||||
Other related parties | 140 | 115 | 64 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total revenues from related parties | 1,372 | 1,113 | 492 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Operating expenses incurred on transactions with related parties | |||||||||||
Maxima, a subsidiary of Sistema (advertising) | 1,575 | 1,757 | 1,902 | ||||||||
Stream, the Group associate (content services) | 1,395 | 711 | — | ||||||||
NVision Group, subsidiaries of Sistema (IT consulting) | 846 | 1,083 | 1,115 | ||||||||
MTS Bank, the Group's associate (commission related (income)/expenses) | (406 | ) | 413 | 55 | |||||||
Elavius, a subsidiary of Sistema (transportation services) | 399 | 347 | 351 | ||||||||
MTS Belarus, the Group associate (roaming and interconnect services) | 395 | 278 | 424 | ||||||||
AB Safety, a subsidiary of Sistema (security services) | 292 | 354 | 344 | ||||||||
Jet Air Group, subsidiaries of Sistema (aircraft maintenance) | 127 | — | — | ||||||||
Other related parties | 455 | 513 | 423 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total operating expenses incurred on transactions with related parties | 5,078 | 5,456 | 4,614 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Investing and financing transactions | |||||||||||
        During the years ended December 31, 2014 and 2013 the Group made certain investments in related parties. Respective balances are summarized as follows: | |||||||||||
                                                                                                                                                                                    | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Loans to, promissory notes and investments in shares of related parties: | |||||||||||
Short-term investments (Note 7) | |||||||||||
Deposits at MTS Bank | — | 5,081 | |||||||||
Mutual investment fund "Reservnyi", managed by DIK, a subsidiary of Sistema | — | 4,154 | |||||||||
Sistema Notes due in 2016 (series 04) | 534 | — | |||||||||
Sistema International Funding S.A. Bonds due 2019, a subsidiary of Sistema | 42 | — | |||||||||
Loan receivable from Navigation Information Systems, a subsidiary of Sistema | 132 | — | |||||||||
Loan receivable from Moscow Business Incubator, a subsidiary of Sistema | 52 | —  | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total short-term investments in related parties | 760Â | 9,235Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
Other investments (Note 16) | |||||||||||
Promissory notes of Sistema | 618Â | 618Â | |||||||||
Loan receivable from Navigation Information Systems, a subsidiary of Sistema | 92 | —  | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total other investments to related parties | 710Â | 618Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
Investments in shares (Note 16) | |||||||||||
Sistema Mass Media, a subsidiary of Sistema | 117Â | 117Â | |||||||||
Other | 8Â | 8Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total investments in shares of related parties | 125Â | 125Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
        Open Joint-Stock Company "MTS Bank" ("MTS Bank")—The Group has of loan agreement and maintains certain bank accounts with MTS Bank, an associated company of the Group. As of December 31, 2014 and 2013, the Group's cash position at MTS Bank amounted to RUB 11,687 million and RUB 11,297 million, respectively, including short-term deposits in the amount of RUB 3,482 million and RUB 5,081 million, respectively. Interest accrued on loan receivable, the deposits and cash on current accounts for the years ended December 31, 2014, 2013 and 2012 amounted to RUB 654 million, RUB 742 million and RUB 172 million, respectively, and was included as a component of interest income in the accompanying consolidated statements of operations and comprehensive income. Interest expense on the funds raised from MTS Bank during the years ended December 31, 2014, 2013 and 2012 amounted to RUB nil, RUB nil and RUB 363 million, respectively, and was included as a component of interest expense in the accompanying consolidated statements of operations and comprehensive income. | |||||||||||
        During the years ended December 31, 2014, 2013 and 2012, the Group provided telecommunications and call center services to MTS Bank and recognized related revenues in the amount of RUB 787 million, RUB 378 million and RUB 88 million, respectively. | |||||||||||
        During the year ended December 31, 2014 the Group provided services related to bank cards distribution and granting of consumer credits to MTS Bank customers and recognized the related income in the amount of RUB 541 million in the accompanying consolidated statements of operations and comprehensive income. The amount represents agency fees after the cross-fines deduction. During the year ended December 31, 2013 the Group incurred expenses under the same contract in the amount of RUB 331 million which represent the excess of cross-fines over agency fees. | |||||||||||
        During the years ended December 31, 2014, 2013 and 2012, the Group incurred commission expenses and cash collection fees in the amount of RUB 135 million, RUB 82 million and RUB 55 million, respectively. | |||||||||||
        Sistema—In November 2009, the Group accepted a promissory note, issued by Sistema, as repayment of the loan principal and interest accrued to date under an agreement with Sistema-Hals (Note 16). The note is interest free and repayable in 2017. As of December 31, 2014 and 2013, the amount receivable of RUB 618 million and RUB 618 million was included in other investments in the accompanying consolidated statements of financial position. | |||||||||||
        In April 2014 the Group sold a 49% stake in Business-Nedvizhimost to Sistema for a consideration of RUB 3.1 billion to be paid by the end of July 2015 (Note 15). As of December 31, 2014, the accounts receivable in the accompanying consolidated statements of financial position amounted to RUB 3.2 billion. The related interest accrued in the amount of RUB 125 million was included as a component of interest income in the accompanying consolidated statements of operations and comprehensive income for the year ended December 31, 2014. | |||||||||||
        In October 2014 the Group acquired 2,501,350 Sistema Notes due 2016 (series 04) and 1,000 Sistema International Funding S.A. Bonds due in 2019 for RUB 519 million and RUB 32 million, respectively. The acquired bonds were classified as available for sale and accounted for at fair value with changes recognized in accumulated other comprehensive income. For the year ended December 31, 2014, the unrealized gain recognized in accumulated other comprehensive income amounted to RUB 6 million. The interest income accrued for the year ended December 31, 2014 amounted to RUB 9 million and was included as a component of interest income in the accompanying consolidated statements of operations and comprehensive income. | |||||||||||
        Leader-Invest—In October 2014, the Group sold a building to Leader-Invest, a subsidiary of Sistema, for a cash consideration of RUB 508 million. The disposal was accounted for as a transaction under common control with a RUB 245 million gain recognized directly in equity. | |||||||||||
        Disposal group held for sale to related party—In February 2015, the Group sold a 51% stake in Rent Nedvizhimost to Sistema, for RUB 4.3 billion of which RUB 3.8 billion is due before December 31, 2018 and bears interest of 12%-interest p.a. As of December 31, 2014 the Group classified the assets and liabilities of Rent Nedvizhimost as held for sale (Note 10). | |||||||||||
        Doveritelnaja Investizionnaja Kompanija ("DIK")—In April and May 2013, the Group invested RUB 4.0 billion in Mutual investment fund "Reservnyi" managed by DIK, a subsidiary of Sistema. The investment was sold in April 2014 for RUB 4,165 million. The realized gain of RUB 165 million was recognized as a component of other expenses (net) in the accompanying consolidated statements of operations and comprehensive income. | |||||||||||
        Investments in ordinary shares—As of December 31, 2014 and 2013 the Group had several investments in shares of subsidiaries and affiliates of Sistema totaling RUB 125 million and RUB 125 million, respectively, included in other investments in the accompanying consolidated statements of financial position. The most significant investment is a 2.356% stake in Sistema Mass-Media, a subsidiary of Sistema. | |||||||||||
        Liabilities to related parties—As of December 31, 2014 the Group held several bills of exchange and loans issued by Sistema Mass-Media in the amount of RUB 867 million. Interest accrued in the amount of RUB 41 million was included in the accompanying consolidated statements of operations and comprehensive income for the year ended December 31, 2014. | |||||||||||
        Smart Cards Group—During the years ended December 31, 2014, 2013 and 2012, the Group purchased from Smart Cards Group, subsidiaries of Sistema, SIM cards and prepaid phone cards for approximately RUB 267 million, RUB 765 million and RUB 842 million, respectively. | |||||||||||
        NVision Group—During the years ended December 31, 2014, 2013 and 2012, the Group acquired from NVision Group, subsidiaries of Sistema, telecommunications equipment, software and billing systems (FORIS) for approximately RUB 9,819 million, RUB 13,394 million, RUB 12,898 million, respectively, and incurred expenses of RUB 846 million, RUB 1,083 million, RUB 1,115 million, respectively, under an IT consulting agreement. | |||||||||||
        As of December 31, 2014 and 2013, the advances given to NVision Group amounted to RUB 274 million and RUB 496 million, respectively. These amounts were included into property, plant and equipment and intangible assets in the accompanying consolidated statements of financial position. | |||||||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||
26. STOCKHOLDERS' EQUITY | ||||||||||||||
        Share capital—The Company's charter capital is composed of 2,066,413,562 ordinary shares of which 1,988,912,130 and 1,988,831,184 were outstanding as of December 31, 2014 and 2013, respectively. The total shares in treasury stock comprised 77,501,432 and 77,582,378 as of December 31, 2014 and 2013, respectively. | ||||||||||||||
        Each ADS represents 2 ordinary shares. As of December 31, 2014, the Group had repurchased 33,997,667 ADSs. | ||||||||||||||
        Noncontrolling interest—The Group's equity was affected by changes in the respective subsidiaries' ownership interests as follows: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Net income attributable to the Group | 51,822 | 79,839 | 29,642 | |||||||||||
Transfers from the noncontrolling interest | ||||||||||||||
Increase in own equity due to acquisition of own shares by MGTS | — | — | 57 | |||||||||||
Decrease in own equity due to acquisition of noncontrolling interest in Teleservice | (23 | ) | — | —  | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Net transfers from the noncontrolling interest | (23 | ) | — | 57 | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Net income attributable to the Group and transfers from the noncontrolling interest | 51,799 | 79,839 | 29,699 | |||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
        Accumulated other comprehensive loss—The following table represents changes in the balances of accumulated other comprehensive loss by components for the year ended December 31, 2014 and 2013: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
Currency | Unrealized | Unrecognized | Accumulated | |||||||||||
translation | (gains) / losses | actuarial | other | |||||||||||
adjustment | on derivatives | (gains) / losses | comprehensive | |||||||||||
(income) / loss | ||||||||||||||
Balance at January 1, 2013 | 13,224 | (21 | ) | 473 | 13,676 | |||||||||
Other comprehensive loss / (income) | 6,657 | (861 | ) | — | 5,796 | |||||||||
Less: tax expense | — | 172 | — | 172 | ||||||||||
Amounts reclassified to net income | (3,682 | )(1) | (945 | ) | (220 | ) | (4,847 | ) | ||||||
Less: tax expense | — | 189 | 44 | 233 | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Net other comprehensive loss / (income) | 2,975 | (1,445 | ) | (176 | ) | 1,354 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance at December 31, 2013 | 16,199 | (1,466 | ) | 297 | 15,030 | |||||||||
Other comprehensive income | (5,925 | ) | (17,363 | ) | (82 | ) | (23,370 | ) | ||||||
Less: tax expense | — | 2,894 | 16 | 2,910 | ||||||||||
— | ||||||||||||||
Amounts reclassified to net income | — | 14,002 | 70 | 14,072 | ||||||||||
Less: tax expense | — | (2,334 | ) | (14 | ) | (2,348 | ) | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Net other comprehensive loss / (income) | (5,925 | ) | (2,801 | ) | (10 | ) | (8,736 | ) | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance as of December 31, 2014 | 10,274 | (4,267 | ) | 287 | 6,294 | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
-1 | The currency translation adjustment of RUB 3,682Â million included as income from discontinued operations in consolidated statement of operations and comprehensive income. | |||||||||||||
        Dividends—In 2013, the Board of Directors approved a dividend policy, whereby the Group shall aim to make minimum dividend distribution payments to shareholders for the calendar years 2013-2015 in the amount of at least 75% of free cash flow for the relevant financial period but not less than RUB 40.0 billion per year. Free cash flow is defined by cash flows from operating activities less cash paid (received) for acquisition or disposal of property, plant and equipment, intangible assets and other adjustments. | ||||||||||||||
        The dividend can vary depending on a number of factors, including the outlook for earnings growth, capital expenditure requirements, cash flows from operations, potential acquisition opportunities, as well as the Group's debt position. | ||||||||||||||
        The Group may take decisions on dividend payout based not only on financial year-end results but also based on interim results for three, six or nine months of the fiscal year. Annual dividend payments, if any, must be recommended by the Board of Directors and approved by the shareholders. | ||||||||||||||
        In accordance with Russian laws, earnings available for dividends are limited to profits determined under Russian statutory accounting regulations, denominated in Russian Rubles, after certain deductions. The net income of MTS OJSC for the years ended December 31, 2014, 2013 and 2012 that is distributable under Russian legislation totaled RUB 28,373 million,RUB 55,999 million and RUB 42,949 million, respectively. | ||||||||||||||
        The following table summarizes the Group's declared cash dividends in 2014, 2013 and 2012 years: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Dividends declared (including dividends on treasury shares of 1,922 and 1,538 and 1,140, respectively) | 51,247Â | 40,956Â | 30,397Â | |||||||||||
Dividends, RUB per ADS | 49.60Â | 39.64Â | 29.42Â | |||||||||||
Dividends, RUB per share | 24.80Â | 19.82Â | 14.71Â | |||||||||||
        As of December 31, 2014 and 2013, dividends payable were RUB 19.5 million and RUB 57.0 million, respectively. | ||||||||||||||
        MGTS' preferred stock—MGTS, a subsidiary of MTS, had 15,574,492 preferred shares outstanding as of December 31, 2014 and 2013. | ||||||||||||||
        MGTS' preferred shares carry guaranteed non-cumulative dividend rights amounting to the higher of (a) 10% of MGTS' net profit as determined under Russian accounting regulations and (b) the dividends paid on common shares. No dividends may be declared on common shares before dividends on preferred shares are declared. If the preferred dividend is not paid in full in any year the preferred shares also obtain voting rights, which will lapse after the first payment of the dividend in full. Otherwise, preferred shares carry no voting rights except on resolutions regarding liquidation or reorganization of MGTS and changes / amendments to MGTS' charter restricting the rights of holders of preferred shares. Such resolutions require the approval of 75% of the preferred shareholders. In the event of liquidation, dividends to preferred shareholders that have been declared but not paid have priority over ordinary shareholders. | ||||||||||||||
        In June 2014 at MGTS' annual shareholders meeting the decision was made to pay dividends on preferred and common shares for 2013 in the amounts of RUB 1,216 million and RUB 1,217 million, respectively. | ||||||||||||||
        In June 2013 and 2012, at MGTS' annual shareholders meeting the decision was made not to pay dividends on preferred shares for 2012 and 2011. Therefore the holders of preferred shares obtained voting rights. | ||||||||||||||
        As of December 31, 2014 and 2013, dividends payable were RUB 17.8 million and RUB 48.6 million, respectively. | ||||||||||||||
REDEEMABLE_NONCONTROLLING_INTE
REDEEMABLE NONCONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2014 | |
REDEEMABLE NONCONTROLLING INTEREST | |
REDEEMABLE NONCONTROLLING INTEREST | |
27. REDEEMABLE NONCONTROLLING INTEREST | |
        In September 2007, the Group acquired an 80% stake in International Cell Holding Ltd, the 100% indirect owner of K-Telecom, Armenia's mobile phone operator, and signed a call and put option agreement to acquire the remaining 20% stake. In December 2010, the Group signed an amendment to the put and call option agreement. According to the amended option agreement, the price for the remaining 20% stake option will be determined by an independent investment bank subject to a cap of EUR 200 million. The put option can be exercised during the period from the next business day following the date of settlement of all liabilities under the loan agreement (Note 16) up to December 31, 2016. The call option can be exercised during the period from July 1, 2010 up to December 31, 2016. If both the call notice and the put notice are served on the same day then the put notice shall be deemed exercised in priority to the call notice. The noncontrolling interest was measured at fair value using a discounted cash flow technique and amounted to RUB 3,192 million and RUB 2,932 million as of December 31, 2014 and 2013, respectively (Note 22). The fair value was determined based on unobservable inputs ("Level 3" of the hierarchy established by the U.S. GAAP guidance). | |
GENERAL_AND_ADMINISTRATIVE_EXP
GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
GENERAL AND ADMINISTRATIVE EXPENSES | |||||||||||
GENERAL AND ADMINISTRATIVE EXPENSES | |||||||||||
28. GENERAL AND ADMINISTRATIVE EXPENSES | |||||||||||
        General and administrative expenses for the years ended December 31, 2014, 2013 and 2012 comprised the following: | |||||||||||
                                                                                                                                                                                    | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Salaries and social contributions | 49,113Â | 45,790Â | 40,486Â | ||||||||
Rent | 16,220Â | 14,677Â | 13,334Â | ||||||||
General and administrative | 8,057Â | 7,955Â | 8,016Â | ||||||||
Repair and maintenance | 6,875Â | 6,217Â | 6,364Â | ||||||||
Taxes other than income | 5,913Â | 6,374Â | 5,422Â | ||||||||
Consulting expenses | 2,192Â | 1,569Â | 1,689Â | ||||||||
Billing and data processing | 2,070Â | 2,035Â | 1,726Â | ||||||||
Inventory obsolescence | 357Â | 660Â | 759Â | ||||||||
Insurance | 174Â | 181Â | 181Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total general and administrative expenses | 90,971Â | 85,458Â | 77,977Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SEGMENT INFORMATION | |||||||||||
SEGMENT INFORMATION | |||||||||||
29. SEGMENT INFORMATION | |||||||||||
        The Group identified the following reportable segments: | |||||||||||
        Russia convergent:    represents the results of mobile and fixed line operations, which encompasses services rendered to customers across regions of Russia, including voice and data services, transmission, broadband, pay-TV and various value-added services. | |||||||||||
        Moscow fixed line:    represents the results of fixed line operations carried out in Moscow by the Group's subsidiary MGTS. MGTS is the only licensed PSTN operator in Moscow and is considered a natural monopoly under Russian antimonopoly regulations. Consequently, substantial part of services provided by MGTS are subject to governmental regulation. | |||||||||||
        Ukraine:    represents the results of mobile and fixed line operations carried out across multiple regions of Ukraine. | |||||||||||
        The segments are organized and managed separately based on the nature of products and services, regulatory environments and geographic areas. | |||||||||||
        The "Other" category does not constitute a reportable segment. It includes the results of a number of other operating segments that do not meet the quantitative thresholds for separate reporting, such as Armenia, Uzbekistan, Turkmenistan, Sputnikovoe TV and the headquarters. | |||||||||||
        Other unallocated expenses such as interest (income) / expense, equity in net income of associates, other (income) / expenses and currency exchange and transaction loss / (gain) are shown for purposes of reconciling the Group's segment measure, segment net operating income, to the Group's consolidated total for each of the periods presented. | |||||||||||
        The intercompany eliminations presented below primarily consist of sales transactions between segments conducted under the normal course of operations. | |||||||||||
        In 2014, the Group ceased presenting Russia convergent and Moscow fixed line as one reporting segment. Management has determined that disaggregation may help users of the financial statements better understand the Group's future performance. Related financial information has, therefore, been retrospectively restated. | |||||||||||
        Financial information by reportable segment is presented below: | |||||||||||
                                                                                                                                                                                    | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net operating revenues from external customers: | |||||||||||
Russia convergent | 336,099 | 317,437 | 303,478 | ||||||||
Moscow fixed line | 35,938 | 35,493 | 33,293 | ||||||||
Ukraine | 29,064 | 37,665 | 36,118 | ||||||||
Other | 9,657 | 7,848 | 5,351 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total net operating revenues from external customers | 410,758 | 398,443 | 378,240 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Including revenue from mobile services | 352,964 | 339,883 | 322,517 | ||||||||
Including revenue from fixed line services | 57,794 | 58,560 | 55,723 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Intersegment operating revenues: | |||||||||||
Russia convergent | 4,633 | 3,638 | 2,513 | ||||||||
Moscow fixed line | 4,886 | 4,831 | 4,563 | ||||||||
Ukraine | 3,722 | 2,067 | 1,604 | ||||||||
Other | 1,541 | 1,281 | 1,031 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total intersegment operating revenues | 14,782 | 11,817 | 9,711 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Depreciation and amortization expense: | |||||||||||
Russia convergent | 57,773 | 57,655 | 51,994 | ||||||||
Moscow fixed line | 7,609 | 5,182 | 4,251 | ||||||||
Ukraine | 6,780 | 8,896 | 9,571 | ||||||||
Other | 2,619 | 1,588 | 2,104 | ||||||||
Intercompany eliminations | (71 | ) | (68 | ) | (10 | ) | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total depreciation and amortization expense | 74,710 | 73,253 | 67,910 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Segment net operating income: | |||||||||||
Russia convergent | 85,964 | 79,199 | 76,832 | ||||||||
Moscow fixed line | 13,601 | 15,678 | 14,938 | ||||||||
Ukraine | 3,390 | 11,745 | 9,647 | ||||||||
Other | (559 | ) | (4,810 | ) | (7,625 | ) | |||||
Intercompany eliminations | (47 | ) | (54 | ) | (8 | ) | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Segment net operating income | 102,349 | 101,758 | 93,794 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Net operating income | 102,349 | 101,758 | 93,794 | ||||||||
Currency exchange and transaction loss / (gain) | 18,024 | 5,473 | (3,952 | ) | |||||||
Interest income | (4,519 | ) | (2,793 | ) | (2,588 | ) | |||||
Interest expense | 16,453 | 15,498 | 17,673 | ||||||||
Equity in net loss / (income) of associates | 2,880 | (2,472 | ) | (869 | ) | ||||||
Other expense / (income), net | 771 | (10,636 | ) | 688 | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Income from continuing operations before provision for income taxes | 68,740 | 96,688 | 82,842 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
                                                                                                                                                                                    | |||||||||||
Years ended | |||||||||||
December, 31 | |||||||||||
2014 | 2013 | ||||||||||
Additions to long-lived assets: | |||||||||||
Russia convergent | 86,456Â | 55,939Â | |||||||||
Moscow fixed line | 13,649Â | 14,121Â | |||||||||
Ukraine | 5,103Â | 8,856Â | |||||||||
Other | 8,234Â | 1,951Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total additions to long-lived assets | 113,442Â | 80,867Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
                                                                                                                                                                                    | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Long-lived assets(1): | |||||||||||
Russia convergent | 276,896Â | 246,422Â | |||||||||
Moscow fixed line | 64,992Â | 61,812Â | |||||||||
Ukraine | 18,546Â | 24,107Â | |||||||||
Other | 37,825Â | 12,648Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total long-lived assets | 398,259Â | 344,989Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
Total assets: | |||||||||||
Russia convergent | 439,950Â | 355,203Â | |||||||||
Moscow fixed line | 78,468Â | 75,929Â | |||||||||
Ukraine | 42,988Â | 38,586Â | |||||||||
Other | 47,521Â | 15,806Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total assets | 608,927Â | 485,524Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
-1 | Comprises of property, plant and equipment, licenses, goodwill and other intangible assets. | ||||||||||
        Financial information by geographic areas is presented below: | |||||||||||
                                                                                                                                                                                    | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net operating revenues from external customers: | |||||||||||
Russia | 372,080Â | 352,930Â | 336,771Â | ||||||||
Other | 38,678Â | 45,513Â | 41,469Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total net operating revenues from external customers | 410,758Â | 398,443Â | 378,240Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
                                                                                                                                                                                    | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Long-lived assets: | |||||||||||
Russia | 347,994Â | 308,336Â | |||||||||
Other | 50,265Â | 36,653Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total long-lived assets | 398,259Â | 344,989Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
        Revenues from external customers and long-lived assets are allocated to individual countries by location of operations. | |||||||||||
        None of the MTS Group's customers exceeds 10% of consolidated revenue. | |||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES | |||||
COMMITMENTS AND CONTINGENCIES | |||||
30. COMMITMENTS AND CONTINGENCIES | |||||
        Capital commitments—As of December 31, 2014, the Group had entered into purchase agreements of approximately RUB 41,798 million to acquire property, plant and equipment, intangible assets and costs related thereto. | |||||
        Operating leases—The Group has entered into non-cancellable agreements to lease space for telecommunications equipment, offices and transmission channels, which expire in various years up to 2064. Rental expenses under the operating leases of RUB 16,220 million, RUB 14,677 million and RUB 13,334 million for the years ended December 31, 2014, 2013 and 2012, respectively, are included in general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income. Rental expenses under the operating leases of RUB 7,860 million, RUB 7,583 million and RUB 7,207 million for the years ended December 31, 2014, 2013 and 2012, respectively, are included in cost of services in the accompanying consolidated statements of operations and comprehensive income. Future minimum lease payments due under these leases for the five years ending December 31, 2019 and thereafter are as follows: | |||||
                                                                                                                                                                                    | |||||
Payments due in the years ended December 31, | |||||
2015 | 5,172Â | ||||
2016 | 691Â | ||||
2017 | 384Â | ||||
2018 | 269Â | ||||
2019 | 222Â | ||||
Thereafter | 1,700Â | ||||
​ | ​ | ​  | ​  | ​ | |
Total | 8,438Â | ||||
​ | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​  | |
        Taxation—Russia and other CIS countries currently have a number of laws related to various taxes imposed by both federal and regional governmental authorities. Applicable taxes include VAT, corporate income tax (profits tax), a number of turnover-based taxes, and payroll (social) taxes. Laws related to these taxes have not been in force for significant periods, in contrast to more developed market economies; therefore, the government's implementation of these regulations is often inconsistent or nonexistent. Accordingly, few precedents with regard to tax rulings have been established. Tax declarations, together with other legal compliance areas (for example, customs and currency control matters), are subject to review and investigation by a number of authorities, which are enabled by law to impose extremely severe fines, penalties and interest charges. These facts create tax risks in Russia and the CIS countries that are more significant than those typically found in countries with more developed tax systems. | |||||
        Generally, according to Russian and Ukrainian tax legislation, tax declarations remain open and subject to inspection for a period of three years following the tax year. As of December 31, 2014, tax declarations of MTS OJSC and other subsidiaries in Russia and Ukraine for the preceding three fiscal years were open for further review. In December 2014 tax authorities commenced review of tax declarations of MTS OJSC and Comstar-Regions CJSC for the years ended December 31, 2013 and 2012. | |||||
        In December 2010, the Russian tax authorities completed a tax audit of MTS OJSC for the years ended December 31, 2007 and 2008. Based on the results of this audit, the Russian tax authorities determined that RUB 353.9 million in additional taxes, penalties and fines were payable by the Group. The resolution did not come into force as the Group prepared and filed a petition with the Federal Tax Service to declare the tax authorities' resolution to be invalid. In September 2011, the Federal Tax Service partially satisfied the Group's petition, decreasing the amount of additional taxes, penalties and fines payable by the Group by RUB 173.9 million. The Group filed an appeal for RUB 84.2 million of the remaining RUB 180.0 million with the Moscow Arbitrate Court. In August 2013, the Moscow Arbitrate Court issued a ruling to partly grant the Group's claim, which was subsequently confirmed by the Arbitrate Appeal Court in November 2013. However, the Group appealed the decision of the Arbitrate Appeal Court in the Federal Arbitrate Court of Moscow District, which issued a ruling to partly grant the Group's claim in March 2014. No further actions were taken by the Group in respect of remaining RUB 137.1 million. | |||||
        In June 2013, the Russian tax authorities completed a tax audit of MTS OJSC for the years ended December 31, 2009, 2010 and 2011. Based on the results of this audit, the Russian tax authorities determined that RUB 253.4 million in additional taxes, penalties and fines were payable by the Group. The claim was accrued in full amount in the consolidated financial statements for the year ended December 31, 2013, including RUB 83.0 million in provision for income taxes and RUB 170.4 million in other operating expense and final amounts due were paid in January 2014. In December 2013, the Group appealed the resolution of this assessment to the Federal Tax Service. The Federal Tax Service refused to grant the appeal. The Group did not submit further appeals. | |||||
        The Group purchases supplemental software from foreign suppliers of telecommunications equipment in the ordinary course of business, which is subject to customs regulation. In addition pricing of revenue and expenses between each of the Group's subsidiaries and various discounts and bonuses to the Group's subscribers in the course of performing its marketing activities may be subject to transfer pricing rules. Management believes that it has adequately provided for tax and customs liabilities in the accompanying consolidated financial statements. As of December 31, 2014 and 2013, the provision accrued for taxes other than income tax and customs settlements amounted to RUB 2,999 million and RUB 2,278 million, respectively, and was included in accrued liabilities in the accompanying consolidated statements of financial position. In addition, the accrual for unrecognized income tax benefits, potential penalties and interest recorded in accordance with FASB ASC 740, Income Taxes, totaled RUB 342 million and RUB 615 million as of December 31, 2014 and 2013, respectively, and was included in income tax payable in the accompanying consolidated statements of financial position. However, the risk remains that the relevant tax and customs authorities could take differing positions with regard to interpretive issues and the effect could be significant. The Federal Customs Service is currently reviewing MTS OJSC activities, which are subject to customs regulations, for the years ended December 31, 2014, 2013 and 2012. | |||||
        Licenses—In July 2012, the Federal Service for Supervision in the Area of Communications, Information Technologies and Mass Media allocated MTS the necessary license and frequencies to provide LTE telecommunication services in Russia. Under the terms and conditions of the LTE license, the Group is obligated to fully deploy LTE networks within seven years, commencing from January 1, 2013, and deliver LTE services in each population center with over 50,000 inhabitants in Russia by 2019. Also, the Group is obligated to invest at least RUB 15 billion annually toward the LTE roll-out until the network is fully deployed. Management believes that as of December 31, 2014 the Group is in compliance with these conditions. | |||||
        In May 2007, the Federal Service for Supervision in the Area of Communications, Information Technologies and Mass Media awarded MTS a license to provide 3G services in Russia. The 3G license was granted subject to certain capital and other commitments. Management believes that as of December 31, 2014 the Group complied with these conditions. | |||||
        Bitel—In December 2005, MTS Finance acquired a 51.0% stake in Tarino Limited ("Tarino"), from Nomihold Securities Inc. ("Nomihold"), for RUB 4,322 million ($150.0 million at exchange rate for December 2005) in cash based on the belief that Tarino was at that time the indirect owner, through its wholly owned subsidiaries, of Bitel LLC ("Bitel"), a Kyrgyz company holding a GSM 900/1800 license for the entire territory of Kyrgyzstan. | |||||
        Following the purchase of the 51.0% stake, MTS Finance entered into a put and call option agreement with Nomihold for the remaining 49.0% interest in Tarino shares and a proportional interest in Bitel shares ("Option Shares"). The call option was exercisable by MTS Finance from November 22, 2005 to November 17, 2006, and the put option was exercisable by Nomihold from November 18, 2006 to December 8, 2006. The call and put option price was RUB 4,898 million ($170.0 million at exchange rate for December 2005). | |||||
        Following a decision of the Kyrgyz Supreme Court on December 15, 2005, Bitel's corporate offices were seized by a third party. As the Group did not regain operational control over Bitel's operations in 2005, it accounted for its 51.0% investment in Bitel at cost as at December 31, 2005. The Group appealed the decision of the Kyrgyz Supreme Court in 2006, but the court did not act within the time period permitted for appeal. The Group subsequently sought the review of this dispute over the ownership of Bitel by the Prosecutor General of Kyrgyzstan to determine whether further investigation could be undertaken by the Kyrgyz authorities. | |||||
        In January 2007, the Prosecutor General of Kyrgyzstan informed the Group that there were no grounds for involvement by the Prosecutor General's office in the dispute and that no legal basis existed for the Group to appeal the decision of the Kyrgyz Supreme Court. Consequently, the Group wrote off the costs relating to the purchase of the 51.0% stake in Bitel, which was reflected in its annual consolidated financial statements for the year ended December 31, 2006. Furthermore, with the impairment of the underlying asset, a liability of RUB 4,476 million ($170.0 million as of December 31, 2006) was recorded with an associated charge to non-operating expenses. | |||||
        In November 2006, MTS Finance received a letter from Nomihold purporting to exercise the put option and sell the Option Shares for RUB 4,526 million ($170.0 million at exchange rate for November 2006) to MTS Finance. In January 2007, Nomihold commenced an arbitration proceeding against MTS Finance in the London Court of International Arbitration ("LCIA") in order to compel MTS Finance to purchase the Option Shares. Nomihold sought specific performance of the put option, unspecified monetary damages, interest, and costs. In January 2011, LCIA made an award in favor of Nomihold satisfying Nomihold's specific performance request and ordered MTS Finance to pay to Nomihold the award ("Award") including RUB 5,115 million ($170.0 million at exchange rate for January 2011) for the Option Shares and RUB 178 million ($5.9 million at exchange rate for January 2011) in damages, bearing interest until Award is satisfied. In addition to the RUB 4,476 million ($170.0 million as of December 31, 2006) liability related to this case and accrued in the year ended December 31, 2006, the Group recorded an additional loss in the amount of RUB 224 million ($7.2 million at exchange rate for the year ended December 31, 2012), RUB 94 million ($3.2 million at exchange rate for the year ended December 31, 2011) and RUB 1,239 million ($40.8 million at exchange rate for the year ended December 31, 2010) in the consolidated financial statements for the years ended December 31, 2012, 2011, and 2010, respectively, representing damages, other costs and interest accrued on the awarded sums. The total liability accrued amounted to RUB 7,236 million ($221 million as of June 22, 2013). | |||||
        In June 2013, an agreement was reached between Altimo, Altimo Holdings, MTS OJSC, MTS Finance, Nomihold and other associated parties to settle all disputes that have arisen from investments in Bitel ("the Agreement"). The Agreement covers matters involving a number of parties and legal proceedings, including those in the Isle of Man, London, Luxembourg and other jurisdictions. Pursuant to the Agreement all proceedings between the parties and their associated parties have been discontinued and waived, and MTS OJSC received a total payment of RUB 4,909 million ($150 million at exchange rates at the dates of payments) ("Settlement Payment"). All parties made the necessary submissions to the respective courts and tribunals to document the settlement, which, among other actions, fully discharged any and all outstanding obligations under the Award rendered by LCIA against MTS Finance in January 2011, as well as settled the tripartite LCIA arbitration between MTS OJSC, MTS Finance and Nomihold and a tort action filed by Nomihold against MTS OJSC in the English Courts. | |||||
        The Group released provision of RUB 7,236 million ($221 million), comprising RUB 5,566 million ($170 million) set by LCIA to exercise the put option for acquisition of the remaining 49% stake in Bitel plus RUB 1,670 million ($51 million) in damages, interest and other costs that had been provided for in relation to the dispute with Nomihold. The release of the provision was recognized as non-operating income in the accompanying consolidated statements of operations and comprehensive income for the year ended December 31, 2013, being the same line item through which the initial charge was taken. | |||||
        The Group recognized a gain of RUB 4,911 million ($150 million) with respect to the Settlement Payment in the consolidated statement of operations and comprehensive income for the year ended December 31, 2013, of which RUB 1,060 million ($32.4 million) was recognized as operating income, and RUB 3,851 million ($117.6 million) as non-operating income on a pro-rata basis with respect to the expenses previously incurred and recognized in relation to the Bitel dispute. | |||||
        Other litigation—In the ordinary course of business, the Group is a party to various legal, tax and customs proceedings, and subject to claims, certain of which relate to developing markets and evolving fiscal and regulatory environments in which MTS operates. Management believes that the Group's liability, if any, in all such pending litigation, other legal proceeding or other matters will not have a material effect upon its financial condition, results of operations or liquidity of the Group. | |||||
        Potential adverse effects of economic instability and sanctions—In 2014 political and economic sanctions were introduced by the EU, US and other countries targeting certain Russian economic sectors. There is significant uncertainty regarding the extent and timing of further sanctions. Also, Russian Ruble has materially depreciated against the U.S. Dollar and Euro and ruble interest rates have increased significantly after the Central Bank of Russia raised its key rate to 17%. | |||||
        These factors resulted in a higher cost of capital, increased inflation and uncertainty regarding further economic growth, which could have a negative impact on the Group's business including ability to obtain financing on commercially reasonable terms. Management believes it is taking the appropriate measures to support the sustainability of the Group's business in the current circumstances. The Group has a hedging policy in place, which partly mitigated variability of cash outflows, denominated in foreign currencies. | |||||
        Investigations into former operations in Uzbekistan—In March 2014, the Group received requests for the provision of information from the United States Securities and Exchange Commission and the United States Department of Justice relating to an investigation of the Group's former subsidiary in Uzbekistan (Note 4). The Company cannot predict the outcome of the investigations, including any fines or penalties that may be imposed, and such fines or penalties could be significant. | |||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | |
31. SUBSEQUENT EVENTS | |
        Disposal of Intellect Telecom—In January 2015, the Group sold its investment in Intellect Telecom to Sistema for a cash consideration of RUB 344 million. | |
        Disposal of Rent-Nedvizhimost—In February 2015, the Group sold 51% stake in Rent-Nedvizhimost to Sistema for RUB 4.3 billion. The Group classified the associated assets and liabilities as "held for sale" as of December 31, 2014 (Note 10). | |
        Acquisition of Navigation Information Systems—In January 2015, the Group acquired 89.53% of Navigation Information Systems from Sistema for RUB 44 million. NIS is the leading systems integrator for GLONASS satellite projects. The acquisition allows the Group to develop its proprietary technological platform for machine-to-machine solutions. | |
        Acquisition of 3G license in Ukraine—In February 2015, MTS-Ukraine won a tender to acquire a nationwide license for the provision of 3G telecommunications services. The license with the cost of UAH 2,715 million (RUB 6,015 million at the acquisition date) has been granted for 15 years. In accordance with the terms of the license MTS-Ukraine is required to launch provision of 3G services in all of the regional centers across Ukraine within 18 months upon allocation of the license. | |
        Insolvency of Kyivska Rus Bank in Ukraine—On March 19, 2015, The National Bank of Ukraine adopted a resolution declaring Kyivska Rus Bank to be insolvent. As of December 31, 2014, the Group held RUB 1,170 million in deposits in the bank. Management determined that this announcement did not provide evidence related to conditions existing as of December 31, 2014, and therefore consider the announcement to be a nonrecognized subsequent event. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS (Policies) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS | ||||||||||
Accounting principles |         Accounting principles—The Group's entities maintain accounting books and records in local currencies of their domicile in accordance with the requirements of respective accounting and tax legislation. The accompanying consolidated financial statements have been prepared in order to present MTS' financial position and its results of operations and cash flows in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and are expressed in terms of Russian Rubles. | |||||||||
        The accompanying consolidated financial statements differ from the financial statements used for statutory purposes in that they reflect certain adjustments, not recorded on the entities' books, which are appropriate to present the financial position, results of operations and cash flows in accordance with U.S. GAAP. The principal adjustments are related to revenue recognition, foreign currency translation, deferred taxation, consolidation, acquisition accounting, depreciation and valuation of property, plant and equipment, intangible assets and investments. | ||||||||||
Basis of consolidation |         Basis of consolidation—The consolidated financial statements include the accounts of the Company, as well as entities where the Company has operating and financial control, most often through the direct or indirect ownership of a majority voting interest. Those ventures where the Group exercises significant influence but does not have operating and financial control are accounted for using the equity method. Investments in which the Group does not have the ability to exercise significant influence over operating and financial policies are accounted for under the cost method and included in long-term investments in the consolidated statements of financial position. The consolidated financial statements also include accounts of variable interest entities ("VIEs") in which the Group is deemed to be the primary beneficiary. An entity is generally a VIE if it meets any of the following criteria: (i) the entity has insufficient equity to finance its activities without additional subordinated financial support from other parties, (ii) the equity investors cannot make significant decisions about the entity's operations or (iii) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity or receive the expected returns of the entity and substantially all of the entity's activities involve or are conducted on behalf of the investor with disproportionately few voting rights. All significant intercompany transactions, balances and unrealized gains and losses on transactions have been eliminated. | |||||||||
        As of December 31, 2014 and 2013, the Company had investments in the following significant legal entities: | ||||||||||
                                                                                                                                                                                    | ||||||||||
December 31, | ||||||||||
Accounting | ||||||||||
method | 2014 | 2013 | ||||||||
MTS Turkmenistan | Consolidated | 100.0Â | % | 100.0Â | % | |||||
MTS Bermuda(1) | Consolidated | 100.0Â | % | 100.0Â | % | |||||
MTS Finance | Consolidated | 100.0Â | % | 100.0Â | % | |||||
MTS Ukraine | Consolidated | 100.0Â | % | 100.0Â | % | |||||
RTC | Consolidated | 100.0Â | % | 100.0Â | % | |||||
Sibintertelecom | Consolidated | 100.0Â | % | 100.0Â | % | |||||
TVT(2) | Consolidated | — | 100.0 | % | ||||||
Sputnikovoe TV | Consolidated | 100.0Â | % | 100.0Â | % | |||||
Sistema Telecom(2) | Consolidated | — | 100.0 | % | ||||||
Elf Group(2) | Consolidated | — | 100.0 | % | ||||||
Intercom(2) | Consolidated | — | 100.0 | % | ||||||
Zheleznogorsk City Telephone Communications ("ZhelGorTeleCom")(2) | Consolidated | — | 100.0 | % | ||||||
Pilot(2) | Consolidated | — | 100.0 | % | ||||||
TVKiK(2) | Consolidated | — | 100.0 | % | ||||||
Dega | Consolidated | 100.0Â | % | 100.0Â | % | |||||
SMARTS | Consolidated | 100.0 | % | — | ||||||
Metro-Telecom | Consolidated | 95.0Â | % | 95.0Â | % | |||||
MGTS | Consolidated | 94.6Â | % | 94.6Â | % | |||||
K-Telecom | Consolidated | 80.0Â | % | 80.0Â | % | |||||
UMS | Consolidated | 50.01 | % | — | ||||||
MTS International Funding Limited ("MTS International") | Consolidated | VIE | VIE | |||||||
Intellect Telecom | Equity | 47.3Â | % | 47.3Â | % | |||||
Stream | Equity | 45.0Â | % | 45.0Â | % | |||||
MTS Belarus | Equity | 49.0Â | % | 49.0Â | % | |||||
MTS Bank | Equity | 27.0Â | % | 26.3Â | % | |||||
OZON Holdings Limited | Equity | 10.8 | % | — | ||||||
-1 | A wholly-owned subsidiary established to repurchase the Group's ADSs. | |||||||||
-2 | Merged with MTS OJSC on October 1, 2014. | |||||||||
        The Group consolidates MTS International, a private company organized and existing as a private limited company under the laws of Ireland, which qualifies as a variable interest entity under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, Consolidation. | ||||||||||
        The Group is the primary beneficiary of MTS International. MTS International was established for the purpose of raising capital through the issuance of debt securities on the Irish Stock Exchange followed by transferring the proceeds through a loan facility to the Group. In 2010 and 2013, MTS International issued $750 million 8.625% notes due in 2020 and $500 million 5.0% notes due in 2023, respectively (Note 17). In 2014 the Group repurchased Notes due in 2020 and 2023 with a nominal value of $126.9 million (RUB 5,043 million) and $21.5 million (RUB 781 million), respectively. The notes are guaranteed by MTS OJSC in the event of default. While the Group does not hold any equity in MTS International, it has concluded that it is the primary beneficiary by virtue of the fact that it has the power to direct the activities of MTS International that most significantly impact its performance and by virtue of the guarantee that exists which means the Group has the obligation to absorb losses of MTS International that could potentially be significant to MTS International. | ||||||||||
        The table below summarizes the assets and liabilities of MTS International as of December 31, 2014 and 2013: | ||||||||||
                                                                                                                                                                                    | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Cash and cash equivalents | 3Â | 1Â | ||||||||
Intercompany receivable from MTS OJSC(1) | 70,535Â | 41,035Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Total assets | 70,538Â | 41,036Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||
Interest payable(2) | 212Â | 123Â | ||||||||
Notes payable due 2020 and 2023(3) | 70,323Â | 40,912Â | ||||||||
Other payables | 3Â | 1Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Total liabilities | 70,538Â | 41,036Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||
-1 | Eliminated in the Group consolidated statements of financial position. | |||||||||
-2 | Relates to MTS International Notes due 2020 and 2023, thereof RUB 187 million and RUB 123 million are included in accrued liabilities in the Group consolidated statements of financial position as of December 31, 2014 and 2013, respectively. | |||||||||
-3 | RUB 61,977 million and RUB 40,912 million are included in notes payable, net of current portion, in the Group consolidated statements of financial position as of December 31, 2014 and 2013, respectively (Note 17). | |||||||||
        The MTS International Notes due 2020 and 2023 and related interest payable are fully covered by intercompany receivables from MTS OJSC. MTS International does not perform any other activities except those required for notes servicing. The Group bears all costs incurred by MTS International in connection with the notes' maintenance activities. Such costs for the years ended December 31, 2014, 2013 and 2012 amounted to RUB 4,080 million, RUB 2,535 million and RUB 2,011 million, respectively, and were included in interest expense reported by the Group in the consolidated statements of operations and comprehensive income. | ||||||||||
Functional currency translation methodology |         Functional currency translation methodology—As of December 31, 2014, the functional currencies of Group entities were as follows: | |||||||||
• | For entities incorporated in the Russian Federation, MTS Bermuda, MTS Finance, Dega and MTS International—the Russian Ruble ("RUB"); | |||||||||
• | For MTS Ukraine—the Ukrainian Hryvna; | |||||||||
• | For MTS Turkmenistan—the Turkmenian Manat; | |||||||||
• | For K-Telecom—the Armenian Dram; | |||||||||
• | For UMS—the US Dollar; | |||||||||
• | For MTS Belarus—the Russian Ruble. | |||||||||
        Remeasurement of the financial statements into functional currencies, where applicable, and translation of financial statements into Russian Rubles has been performed as follows: | ||||||||||
        For entities whose records are not maintained in their functional currencies, monetary assets and liabilities have been remeasured at the period-end exchange rates. Non-monetary assets and liabilities have been remeasured at historical rates. Revenues, expenses and cash flows have been remeasured at average rates. Remeasurement differences resulting from the use of these rates have been accounted for as currency exchange and translation gains and losses in the accompanying consolidated statements of operations and comprehensive income. | ||||||||||
        For entities whose records are maintained in their functional currency, which is other than the reporting currency, all year-end assets and liabilities have been translated into U.S. Dollars at the period-end exchange rate set by local central banks. Subsequently U.S. Dollars balances have been translated into Russian Rubles at the period-end exchange rate set by the Central Bank of Russia. Revenues and expenses have been translated at the average exchange rate for the period using cross-currency exchange rate via U.S. Dollar as described above. Translation differences resulting from the use of these rates are reported as a component of accumulated other comprehensive income in the consolidated statements of financial position. | ||||||||||
Management estimates |         Management estimates—The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||
        Significant estimates include the allowance for doubtful accounts and inventory obsolescence, valuation allowance for deferred tax assets for which it is more likely than not the assets will not be realized, the valuation of assets acquired and liabilities assumed in business combinations and income tax benefits, the recoverability of investments and the valuation of goodwill, intangible assets, other long-lived assets, redeemable noncontrolling interest, certain accrued liabilities and financial instruments. | ||||||||||
Cash and cash equivalents |         Cash and cash equivalents—Cash and cash equivalents represent cash on hand and in bank accounts and short-term investments, including term deposits, having original maturities of less than three months. The carrying value of these investments approximates their fair value. | |||||||||
Short-term investments and loans |         Short-term investments—Short-term investments mainly represent investments in loans, time deposits, which have original maturities in excess of three months and are repayable in less than twelve months, as well as investments in a mutual investment fund and debt securities. The investment in the mutual investment fund and debt securities were classified as available for sale and carried at fair value with unrealized gains and losses recorded as part of other comprehensive income. Deposits and loans are carried at amortized cost (Note 7). | |||||||||
Other investments and loans |         Other investments—Other investments consist primarily of long-term deposits, which are repayable in more than a year, loans and equity holdings in private companies. Deposits and loans are classified as held to maturity and carried at amortized cost. The Group reviews these investments for indicators of impairment on a regular basis. Investments in shares of companies over which the Group has no significant influence are carried at cost. The Group does not evaluate cost-method investments for impairment unless there is an indicator of impairment. | |||||||||
Property, plant and equipment |         Property, plant and equipment—Property, plant and equipment, including improvements, are stated at cost. Property, plant and equipment with a useful life of more than one year is capitalized at historical cost and depreciated on a straight-line basis over its expected useful life. Construction in progress and equipment held for installation is not depreciated until the constructed or installed asset is ready for its intended use. Maintenance and repair costs are expensed as incurred, while upgrades and improvements are capitalized. | |||||||||
Other intangible assets |         Other intangible assets—Other intangible assets primarily consist of billing, telecommunication, accounting and office software as well as numbering capacity and customer base. These assets are assets with finite useful lives. They are recognized at cost and amortized on a straight-line basis over their estimated useful lives. | |||||||||
Accounts receivable |         Accounts receivable—Accounts receivable are stated net of allowance for doubtful accounts. | |||||||||
Allowance for doubtful accounts |         Allowance for doubtful accounts—The Group provides an allowance for doubtful accounts based on management's periodic review with respect to the recoverability of trade receivables, advances given, loans and other receivables. Such allowance reflects specific cases, collection trends or estimates based on evidence of collectability. For changes in the allowance for doubtful accounts receivable see Note 8. | |||||||||
Inventory and spare parts |         Inventory and spare parts—Inventory is stated at the lower of cost or market value. Inventory cost is determined using the weighted average cost method. Handsets and accessories held for sale are expensed when sold. The Group regularly assesses its inventories for obsolete and slow-moving stock. | |||||||||
Value-added tax("VAT") |         Value-added tax ("VAT")—Value-added tax related to sales is payable to the tax authorities on an accrual basis based upon invoices issued to the customer. VAT incurred for purchases may be reclaimed from the state, subject to certain restrictions, against VAT related to sales. | |||||||||
Income taxes |         Income taxes—Income taxes of the Group's Russia-incorporated entities have been computed in accordance with Russian legislation. The corporate income tax rate in Russia is 20%. The income tax rate on dividends paid within Russia is 9%. The foreign subsidiaries of the Group are paying income taxes in their respective jurisdictions. Deferred tax assets and liabilities are recognized for differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the tax bases of assets and liabilities that will result in future taxable or deductible amounts. The deferred tax assets and liabilities are measured using the enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In making such determination, the Group considers all available information, including future reversals of existing taxable temporary differences, projected taxable income, tax strategies and recent financial results. | |||||||||
        Uncertain tax positions are recognized in the consolidated financial statements for positions which are considered more likely than not of being sustained based on the technical merits of the position on audit by the tax authorities. The measurement of the tax benefit recognized in the consolidated financial statements is based upon the largest amount of tax benefit that, in management's judgment, is more than 50% likely of being realized based on a cumulative probability assessment of the possible outcomes. | ||||||||||
        The Group recognizes interest and penalties related to unrecognized tax benefits within income taxes. | ||||||||||
Assets held for sale |         Assets held for sale—The Group classifies assets and liabilities as held for sale when all the following conditions have been met: (i) management having the authority to approve the action, commits to a plan to sell the asset (disposal group); (ii) the asset (disposal group) is available for immediate sale in its present condition; (iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (iv) the sale is probable and transfer of the assets (disposal group) is expected to qualify for recognition as a completed sale, within one year; (v) the asset (the disposal group) is being marketed at a reasonable price; and (vi) it is unlikely that the plan will be changed significantly or withdrawn. Held for sale assets are measured at the lower of carrying amount or fair value less cost to sell. | |||||||||
Asset retirement obligations |         Asset retirement obligations—The Group calculates asset retirement obligations and an associated asset retirement cost when the Group has a legal or constructive obligation in connection with the retirement of tangible long-lived assets. The Group's obligations relate primarily to the cost of removing its equipment from sites. The Group recorded the present value of asset retirement obligations as other long-term liabilities in the consolidated statements of financial position. | |||||||||
License costs |         License costs—License costs are being amortized during the initial license period without consideration of possible future renewals, subject to periodic review for impairment, on a straight-line basis over the period of validity, which varies from three to fifteen years. | |||||||||
Goodwill |         Goodwill—For acquisitions before January 1, 2009 goodwill represents the excess of the consideration paid over the fair value of the net identifiable assets acquired in business combinations and is not amortized. For acquisitions after January 1, 2009 goodwill is determined as the excess of the consideration transferred plus the fair value of any noncontrolling interest in the acquiree at the acquisition date over the fair values of the identifiable net assets acquired. Goodwill is reviewed for impairment at least annually or whenever it is determined that one or more impairment indicators exist. The Group determines whether impairment has occurred by assigning goodwill to the reporting unit identified in accordance with FASB ASC 350, Intangibles—Goodwill and Other, and comparing the carrying amount of the reporting unit to its fair value. If an impairment of goodwill has occurred, the Group recognizes a loss for the difference between the carrying amount and the implied fair value of goodwill. During the year ended December 31, 2012 the Group recognized goodwill impairment in amount of RUB 3,523 million related to Uzdunrobita litigation (Note 4) which is included in net income / (loss) from discontinued operations in the consolidated statements of operations and comprehensive income. | |||||||||
Impairment of long-lived assets |         Impairment of long-lived assets—The Group periodically evaluates the recoverability of the carrying amount of its long-lived assets. Whenever events or changes in circumstances indicate that the carrying amounts of those assets may not be recoverable, the Group compares undiscounted net cash flows estimated to be generated by those assets to their carrying amount. When the undiscounted cash flows are less than the carrying amounts of the assets, the Group records impairment losses to write the assets down to fair value, measured by estimating the discounted net future cash flows expected to be generated from the use of the assets. None of the Group's long-lived assets were impaired in 2014 and 2013. An impairment loss in the amount of RUB 16,514 million for the year ended December 31, 2012 was recognized by the Group subsidiaries in Uzbekistan as a result of the events described in Note 4 and included in net income / (loss) from discontinued operations. | |||||||||
Subscriber prepayments |         Subscriber prepayments—The Group requires the majority of its customers to pay in advance for telecommunications services. All amounts received in advance of services provided are recorded as a subscriber prepayment liability and are not recognized as revenues until the related services have been provided to the subscriber. | |||||||||
Treasury stock |         Treasury stock—Shares of common stock repurchased by the Group are recorded at cost as treasury stock and reduce the shareholders' equity in the Group's consolidated financial statements. | |||||||||
Revenue recognition |         Revenue recognition—Revenue includes all revenues from the ordinary business activities of the Group. Revenues are recorded net of value-added tax and recognized in the accounting period in which they are earned in accordance with the realization principle. | |||||||||
        Revenues derived from wireless, local telephone, long distance, data and video services are recognized when services are provided. This is based upon either usage (minutes of traffic processed, volume of data transmitted) or period of time (monthly subscription fees). | ||||||||||
        Content revenue is presented net of related costs when the Group acts as an agent of the content providers while gross revenue and related costs are recorded when the Group acts as a primary obligor in the arrangement. | ||||||||||
        Upfront fees received for connection of new subscribers, installation and activation of wireless, wireline and data transmission services ("connection fees") are deferred and recognized over the estimated average subscriber life, as follows: | ||||||||||
                                                                                                                                                                                    | ||||||||||
Mobile subscribers | 1Â year - 12.5Â years | |||||||||
Residential wireline voice phone subscribers | 15Â years | |||||||||
Residential subscribers of broadband internet service | 1Â year | |||||||||
Other fixed line subscribers | 3 - 5Â years | |||||||||
        The Group calculates an average life of mobile subscribers for each region in which it operates and amortizes connection fees based on the average life specific to that region. | ||||||||||
Regulated services |         Regulated services—Regulated services provided by the Group primarily consist of local telephone services and services rendered to other operators, such as traffic charges, connection fees and line rental services. Changes in the rate structure for such services are subject to the Federal Tariff Service approval. | |||||||||
        Revenue from regulated tariff services represented approximately 5.2%, 5.7% and 6.5% of the consolidated revenue for the years ended December 31, 2014, 2013 and 2012, respectively. This does not include revenue attributable to discontinued operations (Note 4). | ||||||||||
Leasing arrangements |         Leasing arrangements—The Group classifies lease arrangements as capital or operating leases depending on their nature. Rentals payable under operating leases are charged to the statement of operations and comprehensive income on a straight line basis over the term of the relevant lease. For capital leases, the present value of future minimum lease payments at the inception of the lease is recognised as an asset and a liability in the statement of financial position. | |||||||||
Customer incentives |         Customer incentives—Incentives provided to customers are usually offered on signing a new contract or as part of a promotional offering. Incentives, representing the reduction of the selling price of the service (free minutes and discounts) are recorded in the period to which they relate, when the respective revenue is recognized, as a reduction to both trade receivables and service revenue. | |||||||||
        The Group regularly provides special incentives to its retail customers. Generally the Group sells mobile devices of worldwide known brands with an offer of free telecommunication services for a time period from one to twelve months. Such arrangements with a customer provide for two deliverables—a mobile device delivered immediately and mobile services to be consumed in the future. Both deliverables in the arrangement qualify as separate units of accounting. The consideration received from a customer is allocated between the deliverables based on their standalone value on the market, which is deemed to be a vendor-specific objective evidence of selling price. Revenue on the devices sales is recognized at the moment of their sale, and the revenue on provision of free telecommunication services is deferred and recognized in line with their consumption by a subscriber. Revenue generated from multiple-element arrangements in the amount of RUB 961 million and RUB 3,276 million were recognized in the consolidated statements of operations and comprehensive income for the years ended December 31, 2014 and 2013, respectively. The amount recognized for the year ended December 31, 2012 was not significant. The Group's multiple-element arrangements stipulate no performance-, cancellation-, termination- and refund-type provisions. | ||||||||||
Prepaid cards |         Prepaid cards—The Group sells prepaid cards to subscribers separately from the handset. Prepaid cards, used as a method of cash collection, are accounted for as customer advances. These cards allow subscribers to make a predetermined allotment of wireless phone calls and / or take advantage of other services offered by the Group, such as short messages and value-added services. Revenue from the sale of prepaid cards is deferred until the service is rendered to the customer, whereby the customer uses the airtime or the card expires. | |||||||||
Roaming discounts |         Roaming discounts—The Group enters into roaming discount agreements with a number of wireless operators. According to the terms of the agreements the Group is obliged to provide and entitled to receive a discount that is generally dependent on the volume of inter operator roaming traffic. The Group accounts for discounts received from and granted to roaming partners in accordance with FASB ASC 650, Revenue Recognition. The Group uses various estimates and assumptions, based on historical data and adjusted for known changes, to determine the amount of discount to be received or granted. Such estimates are adjusted monthly to reflect newly-available information. | |||||||||
        The Group accounts for discounts received as a reduction of roaming expenses and discounts granted as reduction of roaming revenue. The Group considers terms of the various roaming discount agreements in order to determine the appropriate presentation of the amounts receivable from and payable to its roaming partners in its consolidated statements of financial position. | ||||||||||
Sales and marketing expenses |         Sales and marketing expenses—Sales and marketing expenses consist primarily of dealers' commissions and advertising costs. Dealers' commissions are linked to revenues received during the six-month period from the date a new subscriber is activated by a dealer. The Group expenses these costs as incurred. Advertising costs for the years ended December 31, 2014, 2013 and 2012, were RUB 8,313 million, RUB 8,463 million and RUB 7,908 million, respectively. | |||||||||
Retirement benefit and social security costs |         Retirement benefit and social security costs—The Group contributes to the local state pension and social funds on behalf of all its employees. | |||||||||
        In Russia all social contributions paid during the year ended December 31, 2014 are represented by payments to governmental social funds, including the Pension Fund of the Russian Federation, the Social Security Fund of the Russian Federation and the Medical Insurance Fund of the Russian Federation. The contributions are expensed as incurred. The amount of social contributions recognized by the Group in Russia amounted to RUB 8,064 million, RUB 7,535 million and RUB 6,512 million in 2014, 2013 and 2012, respectively. | ||||||||||
        MGTS, a subsidiary of the Group, has historically offered its employees certain benefits upon and after retirement. The cost of such benefits includes interest costs, current service costs, amortization of prior service costs and net actuarial loss / gain. The expense is recognized during an employee's years of active service with MGTS. The recognition of expense for retirement pension plans is impacted by estimates made by management such as discount rates used to value certain liabilities, expected return on assets, future rates of compensation increase and other related assumptions. The Group accounts for pension plans in accordance with FASB ASC 715, Compensation—Retirement Benefits. | ||||||||||
        In Ukraine, Uzbekistan, Turkmenistan and Armenia the subsidiaries of the Group are required to contribute a specified percentage of each employee's payroll up to a fixed limit to the local pension, unemployment and social security funds. Payments to the pension fund in Ukraine amounted to RUB 1,535 million, RUB 2,803 million and RUB 2,493 million for the years ended December 31, 2014, 2013 and 2012, respectively. Amounts contributed to the pension funds in Uzbekistan, Turkmenistan and Armenia were not significant. | ||||||||||
Redeemable noncontrolling interest |         Redeemable noncontrolling interest—From time to time, to optimize the structure of business acquisitions and to defer payment of the purchase price, the Group enters into put and call option agreements to acquire the remaining noncontrolling stakes in newly acquired subsidiaries. As these put and call option agreements are not freestanding, the underlying shares of such put and call options are classified as redeemable securities and are accounted for at redemption value which is the fair value of redeemable noncontrolling interests as of the reporting date. The fair value of redeemable noncontrolling interests is measured using discounted future cash flows techniques, subject to applicable caps. The noncontrolling interest is measured at fair value using a discounted cash flow technique utilizing significant unobservable inputs ("Level 3" significant unobservable inputs of the hierarchy established by the U.S. GAAP guidance). Changes in the redemption value of redeemable noncontrolling interests are accounted for in the Group's retained earnings. Redeemable noncontrolling interests are presented as temporary equity in the consolidated statements of financial position. | |||||||||
Financial instruments and hedging activities |         Financial instruments and hedging activities—The Group uses derivative instruments, including interest rate and foreign currency swaps, to manage foreign currency and interest rate risk exposures. The Group measures derivatives at fair value and recognizes them as either other current or other non-current assets or liabilities in the consolidated statements of financial position. Cash flows from derivatives are classified according to their nature. The Group reviews its fair value hierarchy classifications on a quarterly basis. Changes in significant observable valuation inputs identified during these reviews may trigger reclassification of fair value hierarchy levels of financial assets and liabilities. During the years ended December 31, 2014, 2013 and 2012, no reclassifications occurred. The fair value measurement of the Group's derivative instruments is based on the observable yield curves for similar instruments ("Level 2" of the hierarchy established by the U.S. GAAP guidance). | |||||||||
        The Group designates derivatives as either fair value hedges or cash flow hedges in case the required criteria are met. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the consolidated statements of operations and comprehensive income together with any changes in the fair value of the hedged asset or liability that is attributed to the hedged risk. | ||||||||||
        The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in accumulated other comprehensive income. Gains and losses associated with the related hedged items are recognized in the consolidated statements of operations and comprehensive income, depending on their nature. | ||||||||||
        The gain or loss relating to the ineffective portion is recognized immediately in earnings in the consolidated statements of operations and comprehensive income. | ||||||||||
        For derivatives that do not meet the conditions for hedge accounting, gains and losses from changes in the fair value are included in the consolidated statements of operations and comprehensive income (Note 21). | ||||||||||
        Assets and liabilities related to multiple derivative contracts with one counterparty are not offset by the Group. | ||||||||||
        The Group does not use financial instruments for trading or speculative purposes. | ||||||||||
Fair value of financial instruments |         Fair value of financial instruments—The fair value of financial instruments, consisting of cash and cash equivalents, short-term investments, receivables and payables, which are included in current assets and liabilities, approximates the carrying value of these items due to the short-term nature of these amounts. The fair value of issued notes as of December 31, 2014 is disclosed in Note 17 and is based on quoted prices in active markets ("Level 1" of the hierarchy established by the U.S. GAAP guidance). The fair value of variable rate debt approximates its carrying value as of December 31, 2014. The fair value of fixed rate bank loans is disclosed in Note 22 and is measured by discounting future cash flows using current market rates. | |||||||||
        Fair value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: | ||||||||||
• | Level 1—Quoted prices in active markets for identical assets or liabilities; | |||||||||
• | Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities; | |||||||||
• | Level 3—No observable pricing inputs in the market. | |||||||||
        Financial assets and financial liabilities are classified in three-tier hierarchy based on the lowest level of input that is significant to the fair value measurements. The Group's assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. | ||||||||||
Stock-based compensation |         Stock-based compensation—The Group accounts for stock-based compensation under FASB ASC 718, Compensation—Stock Compensation. Under the provisions of this guidance, companies must calculate and record the cost of equity instruments, such as stock options awarded to employees for services received, in the statements of operations and comprehensive income. The cost of the equity instruments is to be measured based on the fair value of the instruments on the date they are granted (with certain exceptions) and recognized over the period during which the employees are required to provide services in exchange for equity instruments. Compensation cost related to phantom stock options granted to the Group's employees recognized in the consolidated statements of operations and comprehensive income for the years ended December 31, 2014, 2013 and 2012 amounted to and RUB 1,017.2 million, RUB 483.0 million and RUB 1,445.8 million, respectively. | |||||||||
Concentration of credit risk |         Concentration of credit risk—Financial instruments that potentially subject the Group to significant concentrations of credit risk consist principally of cash and cash equivalents, investments, trade accounts receivable, loans and derivatives. The Group maintains cash and cash equivalents, investments, derivatives and certain other financial instruments with various financial institutions. These financial institutions are located in many different geographical regions, and the Group's policy is designed to limit exposure to any one institution. As part of its risk management processes, the Group performs periodic evaluations of the relative credit ratings of financial institutions (refer to Note 5 for description of political and economic risks in Ukraine). | |||||||||
        Concentrations of credit risk with respect to trade receivables are limited due to a highly diversified customer base, which includes a large number of individuals, private businesses and state-financed institutions. | ||||||||||
New and recently adopted accounting pronouncements |         New and recently adopted accounting pronouncements—In May 2014, FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Group is required to adopt the amendments in the reporting period starting after December 15, 2017. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Group is currently evaluating the impact of these amendments and the transition alternatives on the consolidated financial statements. | |||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS | ||||||||||
Schedule of significant legal entities | ||||||||||
                                                                                                                                                                                    | ||||||||||
December 31, | ||||||||||
Accounting | ||||||||||
method | 2014 | 2013 | ||||||||
MTS Turkmenistan | Consolidated | 100.0Â | % | 100.0Â | % | |||||
MTS Bermuda(1) | Consolidated | 100.0Â | % | 100.0Â | % | |||||
MTS Finance | Consolidated | 100.0Â | % | 100.0Â | % | |||||
MTS Ukraine | Consolidated | 100.0Â | % | 100.0Â | % | |||||
RTC | Consolidated | 100.0Â | % | 100.0Â | % | |||||
Sibintertelecom | Consolidated | 100.0Â | % | 100.0Â | % | |||||
TVT(2) | Consolidated | — | 100.0 | % | ||||||
Sputnikovoe TV | Consolidated | 100.0Â | % | 100.0Â | % | |||||
Sistema Telecom(2) | Consolidated | — | 100.0 | % | ||||||
Elf Group(2) | Consolidated | — | 100.0 | % | ||||||
Intercom(2) | Consolidated | — | 100.0 | % | ||||||
Zheleznogorsk City Telephone Communications ("ZhelGorTeleCom")(2) | Consolidated | — | 100.0 | % | ||||||
Pilot(2) | Consolidated | — | 100.0 | % | ||||||
TVKiK(2) | Consolidated | — | 100.0 | % | ||||||
Dega | Consolidated | 100.0Â | % | 100.0Â | % | |||||
SMARTS | Consolidated | 100.0 | % | — | ||||||
Metro-Telecom | Consolidated | 95.0Â | % | 95.0Â | % | |||||
MGTS | Consolidated | 94.6Â | % | 94.6Â | % | |||||
K-Telecom | Consolidated | 80.0Â | % | 80.0Â | % | |||||
UMS | Consolidated | 50.01 | % | — | ||||||
MTS International Funding Limited ("MTS International") | Consolidated | VIE | VIE | |||||||
Intellect Telecom | Equity | 47.3Â | % | 47.3Â | % | |||||
Stream | Equity | 45.0Â | % | 45.0Â | % | |||||
MTS Belarus | Equity | 49.0Â | % | 49.0Â | % | |||||
MTS Bank | Equity | 27.0Â | % | 26.3Â | % | |||||
OZON Holdings Limited | Equity | 10.8 | % | — | ||||||
-1 | A wholly-owned subsidiary established to repurchase the Group's ADSs. | |||||||||
-2 | Merged with MTS OJSC on October 1, 2014. | |||||||||
Summary of the assets and liabilities of the VIE | ||||||||||
        The table below summarizes the assets and liabilities of MTS International as of December 31, 2014 and 2013: | ||||||||||
                                                                                                                                                                                    | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Cash and cash equivalents | 3Â | 1Â | ||||||||
Intercompany receivable from MTS OJSC(1) | 70,535Â | 41,035Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Total assets | 70,538Â | 41,036Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||
Interest payable(2) | 212Â | 123Â | ||||||||
Notes payable due 2020 and 2023(3) | 70,323Â | 40,912Â | ||||||||
Other payables | 3Â | 1Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Total liabilities | 70,538Â | 41,036Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||
-1 | Eliminated in the Group consolidated statements of financial position. | |||||||||
-2 | Relates to MTS International Notes due 2020 and 2023, thereof RUB 187 million and RUB 123 million are included in accrued liabilities in the Group consolidated statements of financial position as of December 31, 2014 and 2013, respectively. | |||||||||
-3 | RUB 61,977 million and RUB 40,912 million are included in notes payable, net of current portion, in the Group consolidated statements of financial position as of December 31, 2014 and 2013, respectively (Note 17). | |||||||||
Schedule of estimated average subscriber lives | ||||||||||
                                                                                                                                                                                    | ||||||||||
Mobile subscribers | 1Â year - 12.5Â years | |||||||||
Residential wireline voice phone subscribers | 15Â years | |||||||||
Residential subscribers of broadband internet service | 1Â year | |||||||||
Other fixed line subscribers | 3 - 5Â years | |||||||||
BUSINESS_ACQUISITIONS_AND_DISP1
BUSINESS ACQUISITIONS AND DISPOSALS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Mobile companies acquired in 2014 | |||||||||||||||||
Business acquisitions | |||||||||||||||||
Purchase price allocation of acquisition |         The following table summarizes the preliminary purchase price allocation for regional mobile operators acquired during the year ended December 31, 2014: | ||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
SMARTS- | SMARTS-Ufa | Penza-GSM | Total | ||||||||||||||
Ivanovo | |||||||||||||||||
Month of acquisition | December | December | December | ||||||||||||||
Region of operations | Central region | Volga region | Volga region | ||||||||||||||
Ownership interest acquired | 100 | % | 100 | % | 100 | % | |||||||||||
Current assets | 24 | 47 | 97 | 168 | |||||||||||||
Property, plant and equipment | 68 | 94 | 196 | 358 | |||||||||||||
Rights to use radio frequencies | 455 | 434 | 571 | 1,460 | |||||||||||||
Goodwill | 41 | 182 | 1,407 | 1,630 | |||||||||||||
Customer base | 21 | 13 | 44 | 78 | |||||||||||||
Other non-current assets | — | — | 165 | 165 | |||||||||||||
Current liabilities | (88 | ) | (268 | ) | (327 | ) | (683 | ) | |||||||||
Non-current liabilities | (95 | ) | (101 | ) | (123 | ) | (319 | ) | |||||||||
Contingent consideration | (2 | ) | (2 | ) | (96 | ) | (100 | ) | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Consideration paid | 424 | 399 | 1,934 | 2,757 | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Proforma financial data | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Pro forma: | |||||||||||||||||
Net revenues | 411,353Â | 399,161Â | 378,938Â | ||||||||||||||
Net income | 51,598Â | 79,738Â | 29,665Â | ||||||||||||||
Regional fixed line operators acquired in 2012 | |||||||||||||||||
Business acquisitions | |||||||||||||||||
Purchase price allocation of acquisition |         The following table summarizes the purchase price allocation for regional fixed line operators acquired during the year ended December 31, 2012: | ||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
Elf Group | Intercom | ZhelGorTeleCom | Pilot & TVKiK | Total | |||||||||||||
Month of acquisition | August | August | October | October | |||||||||||||
Region of operations | Central region | Volga region | Central region | Central region | |||||||||||||
Ownership interest acquired | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
Current assets | 6 | 9 | 4 | 3 | 22 | ||||||||||||
Property, plant and equipment | 49 | 11 | 3 | 21 | 84 | ||||||||||||
Goodwill | 172 | 62 | 115 | 55 | 404 | ||||||||||||
Customer base | 45 | 29 | 54 | 22 | 150 | ||||||||||||
Current liabilities | (44 | ) | (15 | ) | (13 | ) | (6 | ) | (78 | ) | |||||||
Non-current liabilities | (9 | ) | (6 | ) | (11 | ) | (4 | ) | (30 | ) | |||||||
Fair value of contingent consideration | (28 | ) | (10 | ) | (5 | ) | — | (43 | ) | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Consideration paid | 191 | 80 | 147 | 91 | 509 | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Tascom | |||||||||||||||||
Business acquisitions | |||||||||||||||||
Purchase price allocation of acquisition | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
Current assets | 489 | ||||||||||||||||
Property, plant and equipment | 586 | ||||||||||||||||
Goodwill | 1,083 | ||||||||||||||||
Customer base | 168 | ||||||||||||||||
Other non-current assets | 188 | ||||||||||||||||
Current liabilities | (800 | ) | |||||||||||||||
Non-current liabilities | (107 | ) | |||||||||||||||
Fair value of contingent consideration | (170 | ) | |||||||||||||||
​ | ​ | ​  | ​  | ​ | |||||||||||||
Consideration paid | 1,437 | ||||||||||||||||
​ | ​ | ​  | ​  | ​ | |||||||||||||
​ | ​ | ​  | ​  | ​  | |||||||||||||
OPERATIONS_IN_UZBEKISTAN_Table
OPERATIONS IN UZBEKISTAN (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Impairment loss on the long-lived assets | ||||||||
In 2013 these losses were assigned to discontinued operations: | ||||||||
                                                                                                                                                                                    | ||||||||
Impairment loss | ||||||||
Property, plant and equipment | 8,438Â | |||||||
Licenses | 2,709Â | |||||||
Rights to use radio frequencies | 2,523Â | |||||||
Numbering capacity | 1,190Â | |||||||
Software and other intangible assets | 1,654Â | |||||||
Goodwill | 3,523Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
Total impairment loss related to goodwill and long-lived assets | 20,037Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​  | ||||
Uzdunrobita | ||||||||
Schedule of results of discontinued operations | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â | |||||||
2013 | 2012 | |||||||
Total revenues | — | 8,357 | ||||||
Income / (loss) before income tax | 1,109 | (34,171 | ) | |||||
Income tax (expense) / benefit | (1,058 | ) | 1,325 | |||||
Gain on disposal, net of tax | 3,682 | —  | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Income / (loss) from discontinued operations, net of tax | 3,733 | (32,846 | ) | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
UMS | ||||||||
Purchase price allocation of acquisition | ||||||||
                                                                                                                                                                                    | ||||||||
Current assets | 26 | |||||||
Property, plant and equipment | 3,848 | |||||||
Other intangible assets | 5,161 | |||||||
Other non-current assets | 1,327 | |||||||
Current liabilities | (30 | ) | ||||||
Non-current liabilities | (25 | ) | ||||||
Non-controlling interest | (3,573 | ) | ||||||
Gain from reentrance into Uzbekistan | (6,734 | ) | ||||||
​ | ​ | ​  | ​  | ​ | ||||
Consideration paid | — | |||||||
​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​  | ||||
CASH_AND_CASH_EQUIVALENTS_Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
CASH AND CASH EQUIVALENTS | ||||||||
Schedule of components of cash and cash equivalents | ||||||||
                                                                                                                                                                                    | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Russian Ruble current accounts | 9,767Â | 5,900Â | ||||||
Russian Ruble deposit accounts | 19,272Â | 14,215Â | ||||||
U.S. Dollar current accounts | 11,412Â | 1,336Â | ||||||
U.S. Dollar deposit accounts | 7,404Â | 7,503Â | ||||||
Euro current accounts | 3,579Â | 395Â | ||||||
Euro deposit accounts | 1,901Â | 136Â | ||||||
Hryvna current accounts | 1,471Â | 87Â | ||||||
Hryvna deposit accounts | 4,973Â | 276Â | ||||||
Uzbek som current accounts | 341 | — | ||||||
Turkmenian manat current accounts | 1,162Â | 697Â | ||||||
Armenian dram current accounts | 72Â | 67Â | ||||||
Armenian dram deposit accounts | 56 | —  | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total cash and cash equivalents | 61,410Â | 30,612Â | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
SHORTTERM_INVESTMENTS_Tables
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SHORT-TERM INVESTMENTS | |||||||||||
Short-term investments | |||||||||||
        Short-term investments as of December 31, 2014 comprised the following: | |||||||||||
                                                                                                                                                                                    | |||||||||||
Type of investment | Classification | Annual | Maturity date | Amount | |||||||
interest rate | |||||||||||
Loan receivable from Mr. P. Fattouche and Mr. M. Fattouche (Note 16) | Held to maturity | 6% | Dec-15 | 5,533 | |||||||
Deposits | Held to maturity | 4Â - 16% | January 2015 - December 2015 | 3,534Â | |||||||
Sistema Notes due in 2016 (series 04) (related party) (Note 25) | Available for sale | 7.65% | — | 534 | |||||||
Loan receivable from Navigation Information Systems (related party) (Note 25) | Held to maturity | 8.5 - 10.0% | March 2015 - July 2015 | 132 | |||||||
Loan receivable from Moscow Business Incubator (related party) (Note 25) | Held to maturity | 10.50% | Dec-15 | 52 | |||||||
Sistema International Funding S.A. Bonds due 2019 (related party) (Note 25) | Available for sale | 6.95% | — | 42 | |||||||
Other loans | Held to maturity | — | — | 22 | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |
Total short-term investments | 9,849Â | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​  | |
        Short-term investments as of December 31, 2013 comprised of the following: | |||||||||||
                                                                                                                                                                                    | |||||||||||
Type of investment | Classification | Annual | Maturity date | Amount | |||||||
interest rate | |||||||||||
Deposits | Held to maturity | 4.2Â - 14.0% | February 2014 - July 2014 | 5,377Â | |||||||
Deposits at MTS Bank (related party) (Note 25) | Held to maturity | 8.70% | Jun-14 | 5,081 | |||||||
Mutual investment fund "Reservnyi", managed by DIK (related party) (Note 25) | Available for sale | — | Upon request | 4,154 | |||||||
Other loans | Held to maturity | — | — | 21 | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |
Total short-term investments | 14,633Â | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​  | |
TRADE_RECEIVABLES_NET_Tables
TRADE RECEIVABLES, NET (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
TRADE RECEIVABLES, NET | |||||||||||
Schedule of net trade receivables | |||||||||||
                                                                                                                                                                                    | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Roaming | 13,892 | 15,875 | |||||||||
Subscribers | 10,722 | 12,548 | |||||||||
Interconnect | 3,802 | 2,847 | |||||||||
Dealers | 1,931 | 2,127 | |||||||||
Other | 4,784 | 4,910 | |||||||||
Allowance for doubtful accounts | (2,165 | ) | (3,753 | ) | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Trade receivables, net | 32,966 | 34,554 | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
Schedule of changes in the allowance for doubtful accounts receivable | |||||||||||
                                                                                                                                                                                    | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance, beginning of the year | 3,753 | 3,461 | 3,122 | ||||||||
Allowance for doubtful accounts charge | 2,933 | 3,366 | 2,257 | ||||||||
Accounts receivable written off | (4,521 | ) | (3,074 | ) | (1,918 | ) | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance, end of the year | 2,165 | 3,753 | 3,461 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
INVENTORY_AND_SPARE_PARTS_Tabl
INVENTORY AND SPARE PARTS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
INVENTORY AND SPARE PARTS | ||||||||
Schedule of inventory and spare parts | ||||||||
                                                                                                                                                                                    | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Handsets and accessories | 5,971Â | 7,436Â | ||||||
SIM cards and prepaid phone cards | 897Â | 395Â | ||||||
Spare parts for telecommunication equipment | 301Â | 305Â | ||||||
Advertising and other materials | 341Â | 362Â | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total inventory and spare parts | 7,510Â | 8,498Â | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
DISPOSAL_GROUP_HELD_FOR_SALE_T
DISPOSAL GROUP HELD FOR SALE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
DISPOSAL GROUP HELD FOR SALE | ||||||||
Summary of assets and related liabilities held for sale | ||||||||
                                                                                                                                                                                    | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Assets related to planned sale of 51% stake in Rent Nedvizhimost | 2,004 | —  | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total assets related to disposal group held for sale | 2,004 | — | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Liabilities related to planned sale of 51% stake in Rent Nedvizhimost | (227 | ) | —  | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
                                                                                                                                                                                    | ||||||||
Current assets | 238Â | |||||||
Non-current assets | 1,766Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
Total assets related to disposal group held for sale | 2,004Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​  | ||||
Current liabilities | 187Â | |||||||
Non-current liabilities | 40Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
Total liabilities related to disposal group held for sale | 227Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​  | ||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||||
Net book value of property, plant and equipment | ||||||||||
                                                                                                                                                                                    | ||||||||||
December 31, | ||||||||||
Useful lives, | ||||||||||
years | 2014 | 2013 | ||||||||
Network, base station equipment and related leasehold improvements (including leased assets of 6,427 and nil, respectively) | 17-May | 499,101 | 445,857 | |||||||
Office equipment, computers and other | 15-Mar | 43,640 | 42,121 | |||||||
Buildings and related leasehold improvements (including leased assets of nil and 28, respectively) | 20 - 59 | 24,362 | 25,496 | |||||||
Vehicles (including leased assets of 73 and 942, respectively) | 7-Mar | 3,271 | 3,139 | |||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Property, plant and equipment, at cost (including leased assets of 6,500 and 970, respectively) | 570,374 | 516,613 | ||||||||
Accumulated depreciation (including leased assets of 438 and 793, respectively) | (313,623 | ) | (293,389 | ) | ||||||
Construction in progress and equipment for installation | 42,728 | 47,436 | ||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Property, plant and equipment, net | 299,479 | 270,660 | ||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
LICENSES_Tables
LICENSES (Tables) (Licenses) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Licenses | ||||||||
Other intangible assets | ||||||||
Value of the Group's telecommunication licenses | ||||||||
                                                                                                                                                                                    | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Armenia | 8,782 | 5,982 | ||||||
Russia | 1,825 | 291 | ||||||
Ukraine | 117 | 123 | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Licenses, at cost | 10,724 | 6,396 | ||||||
Accumulated amortization | (5,226 | ) | (3,194 | ) | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Licenses, net | 5,498 | 3,202 | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Estimated amortization expense | ||||||||
                                                                                                                                                                                    | ||||||||
Estimated amortization expense in the year ended December 31, | ||||||||
2015 | 970Â | |||||||
2016 | 973Â | |||||||
2017 | 970Â | |||||||
2018 | 970Â | |||||||
2019 | 849Â | |||||||
Thereafter | 766Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
Total | 5,498Â | |||||||
​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​  | ||||
GOODWILL_Tables
GOODWILL (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
GOODWILL | ||||||||||||||||||||
Schedule of change in net carrying amount of goodwill by reportable and operating segments | ||||||||||||||||||||
        The change in the net carrying amount of goodwill for the years ended December 31, 2014 and 2013 by reportable and operating segments was as follows: | ||||||||||||||||||||
                                                                                                                                                                                    | ||||||||||||||||||||
Russia | Moscow | Ukraine | Uzbekistan(1)Â | Other | Total | |||||||||||||||
convergent | fixed line | |||||||||||||||||||
Balance at January 1, 2013 | ||||||||||||||||||||
Gross amount of goodwill | 28,668 | 1,083 | 162 | 3,523 | 3,981 | 37,417 | ||||||||||||||
Accumulated impairment loss | (1,466 | ) | — | — | (3,523 | ) | — | (4,989 | ) | |||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
27,202 | 1,083 | 162 | — | 3,981 | 32,428 | |||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Disposals | (23 | ) | — | — | — | — | (23 | ) | ||||||||||||
Currency translation adjustment | — | — | 12 | — | 287 | 299 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance at December 31, 2013 | ||||||||||||||||||||
Gross amount of goodwill | 28,645 | 1,083 | 174 | — | 4,268 | 34,170 | ||||||||||||||
Accumulated impairment loss | (1,466 | ) | — | — | — | — | (1,466 | ) | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
27,179 | 1,083 | 174 | — | 4,268 | 32,704 | |||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Acquisitions (Note 3) | 1,630 | — | — | — | — | 1,630 | ||||||||||||||
Currency translation adjustment | — | — | (23 | ) | — | 2,000 | 1,977 | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance at December 31, 2014 | ||||||||||||||||||||
Gross amount of goodwill | 30,275 | 1,083 | 151 | — | 6,268 | 37,777 | ||||||||||||||
Accumulated impairment loss | (1,466 | ) | — | — | — | — | (1,466 | ) | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
28,809 | 1,083 | 151 | — | 6,268 | 36,311 | |||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
-1 | The results of operations in Uzbekistan are reported as discontinued operations in the accompanying consolidated statements of operations and comprehensive income for the years ended December 31, 2013 and 2012. | |||||||||||||||||||
OTHER_INTANGIBLE_ASSETS_Tables
OTHER INTANGIBLE ASSETS (Tables) (Other intangibles) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Other intangibles | |||||||||||||||||||||||
Other intangible assets | |||||||||||||||||||||||
Schedule of other intangible assets | |||||||||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||
Useful | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||
lives, years | carrying | amortization | carrying | carrying | amortization | carrying | |||||||||||||||||
value | value | value | value | ||||||||||||||||||||
Amortized intangible assets | |||||||||||||||||||||||
Billing and telecommunication software | 1 to 20 | 67,238 | (41,853 | ) | 25,385 | 53,225 | (37,265 | ) | 15,960 | ||||||||||||||
Office software | 1 to 10 | 12,713 | (5,695 | ) | 7,018 | 9,309 | (3,582 | ) | 5,727 | ||||||||||||||
Rights to use radio frequencies | 1 to 15 | 11,444 | (5,684 | ) | 5,760 | 9,850 | (4,905 | ) | 4,945 | ||||||||||||||
Acquired customer base | 4 to 31 | 7,690 | (3,166 | ) | 4,524 | 8,757 | (3,622 | ) | 5,135 | ||||||||||||||
Accounting software | 1 to 5 | 3,637 | (2,641 | ) | 996 | 4,330 | (3,021 | ) | 1,309 | ||||||||||||||
Numbering capacity | 2 to 15 | 3,746 | (3,508 | ) | 238 | 3,623 | (2,849 | ) | 774 | ||||||||||||||
Credit line | 1 to 3 | 3,238 | — | 3,238 | — | — | — | ||||||||||||||||
Other | 1 to 15 | 10,671 | (3,238 | ) | 7,433 | 7,090 | (2,909 | ) | 4,181 | ||||||||||||||
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total amortized intangible assets | 120,377 | (65,785 | ) | 54,592 | 96,184 | (58,153 | ) | 38,031 | |||||||||||||||
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Prepayments for intangible assets | 2,379 | — | 2,379 | 392 | — | 392 | |||||||||||||||||
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total other intangible assets | 122,756 | (65,785 | ) | 56,971 | 96,576 | (58,153 | ) | 38,423 | |||||||||||||||
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Estimated future amortization expenses for each of the next five years | |||||||||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||||||||
Estimated amortization expense in the year ending December 31, | |||||||||||||||||||||||
2015 | 16,901Â | ||||||||||||||||||||||
2016 | 13,740Â | ||||||||||||||||||||||
2017 | 9,601Â | ||||||||||||||||||||||
2018 | 5,036Â | ||||||||||||||||||||||
2019 | 2,301Â | ||||||||||||||||||||||
Thereafter | 7,013Â | ||||||||||||||||||||||
​ | ​ | ​  | ​  | ​ | |||||||||||||||||||
Total | 54,592Â | ||||||||||||||||||||||
​ | ​ | ​  | ​  | ​ | |||||||||||||||||||
​ | ​ | ​  | ​  | ​  | |||||||||||||||||||
INVESTMENTS_IN_AND_ADVANCES_TO1
INVESTMENTS IN AND ADVANCES TO ASSOCIATES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
INVESTMENTS IN AND ADVANCES TO ASSOCIATES | ||||||||||||||
Group's investments in and advances to associates | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
MTS Belarus—equity investment | 6,033 | 5,013 | ||||||||||||
MTS Bank—equity investment | 4,858 | 5,476 | ||||||||||||
MTS Bank—loan | 2,100 | 2,100 | ||||||||||||
OZON Holdings Limited—equity investment | 2,708 | — | ||||||||||||
Business-Nedvizhimost—equity investment | — | 410 | ||||||||||||
Intellect Telecom—equity investment | 78 | 163 | ||||||||||||
Intellect Telecom—loan | 168 | — | ||||||||||||
Stream—equity investment | 332 | 231 | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Total investments in and advances to associates | 16,277Â | 13,393Â | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||||||
MTS Bank | ||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||
Schedule of financial position and results of operations of associates | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
2014 | 2013 | |||||||||||||
Total assets | 215,070 | 224,446 | ||||||||||||
Total liabilities | (181,724 | ) | (201,077 | ) | ||||||||||
Noncontrolling interest | (4,061 | ) | (1,924 | ) | ||||||||||
Total interest income | (25,107 | (18,266 | ||||||||||||
) | ) | |||||||||||||
Total interest expense | 9,868 | 7,737 | ||||||||||||
Operating loss/(profit) | 14,915 | (1,036 | ) | |||||||||||
Net loss/(income) | 12,585 | (868 | ) | |||||||||||
Other equity method investees | ||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||
Schedule of financial position and results of operations of associates | ||||||||||||||
        Summarized financial position and results of operations of other equity method investees as of and for the year ended December 31, 2014 were as follows: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
MTS Belarus | Intellect Telecom | Stream | OZON Holdings | |||||||||||
Limited | ||||||||||||||
Total current assets | 9,022 | 237 | 974 | 7,888 | ||||||||||
Total non-current assets | 8,042 | 458 | 91 | 2,962 | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total assets | 17,064 | 695 | 1,065 | 10,850 | ||||||||||
Total current liabilities | (5,126 | (506 | (341 | (3,640 | ||||||||||
) | ) | ) | ) | |||||||||||
Total non-current liabilities | (168 | ) | (17 | ) | — | (377 | ) | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total liabilities | (5,294 | ) | (523 | ) | (341 | ) | (4,017 | ) | ||||||
Revenue | (17,639 | (198 | (1,280 | (11,097 | ||||||||||
) | ) | ) | ) | |||||||||||
Gross profit | (12,910 | ) | (4 | ) | (566 | ) | (2,369 | ) | ||||||
Net (income) / loss | (7,466 | ) | 170 | (226 | ) | 2,494 | ||||||||
        Summarized financial position and results of operations of equity method investees as of and for the year ended December 31, 2013 were as follows: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
MTS Belarus | Intellect Telecom | Stream | Business- | |||||||||||
Nedvizhimost | ||||||||||||||
(since | ||||||||||||||
deconsolidation) | ||||||||||||||
Total current assets | 5,867 | 140 | 485 | 313 | ||||||||||
Total non-current assets | 6,539 | 483 | 214 | 749 | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total assets | 12,406 | 623 | 699 | 1,062 | ||||||||||
Total current liabilities | (3,161 | (267 | (206 | (181 | ||||||||||
) | ) | ) | ) | |||||||||||
Total non-current liabilities | — | (14 | ) | — | (50 | ) | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total liabilities | (3,161 | ) | (281 | ) | (206 | ) | (231 | ) | ||||||
Revenue | (14,310 | (357 | (738 | (13 | ||||||||||
) | ) | ) | ) | |||||||||||
Gross profit | (10,271 | ) | (66 | ) | (253 | ) | (8 | ) | ||||||
Net (income) / loss | (4,649 | ) | 81 | (9 | ) | (5 | ) | |||||||
OTHER_INVESTMENTS_Tables
OTHER INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
OTHER INVESTMENTS | |||||||||||||||
Schedule of other investments | |||||||||||||||
                                                                                                                                                                                    | |||||||||||||||
December 31, | |||||||||||||||
Annual | Maturity | ||||||||||||||
Classification | interest rate | date | 2014 | 2013 | |||||||||||
Deposits | Held to maturity | 6.15 - 6.25% | 2016 | 13,671 | — | ||||||||||
Loan receivable from Mr. P. Fattouche and Mr. M. Fattouche(1) | Held to maturity | 6% | 2015 | — | 2,946 | ||||||||||
Loan Participation Notes EMIS BV | Held to maturity | 6% | 2015 | — | 699 | ||||||||||
Promissory notes of Sistema (related party) (Note 25) | Held to maturity | 0.00% | 2017 | 618 | 618 | ||||||||||
Investments in ordinary shares (related party) (Note 25) | At cost | — | — | 125 | 125 | ||||||||||
Other | At cost / held to | — | — | 555 | 4 | ||||||||||
maturity | |||||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total other investments | 14,969Â | 4,392Â | |||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
-1 | Reclassified to short-term investments as due in December 2015. | ||||||||||||||
BORROWINGS_Tables
BORROWINGS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Bank loans | ||||||||||||||
Schedule of dates of the announcement for each particular note issue | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
MTS OJSC Notes due 2018 | Dec-15 | |||||||||||||
MTS OJSC Notes due 2020 | Nov-15 | |||||||||||||
MTS OJSC Notes due 2023 | Mar-18 | |||||||||||||
Schedule of unclosed REPO transactions with due date on January 14th, 2015 | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
Number of | Due Amount | Unrealized | Total | |||||||||||
Notes | Premium | |||||||||||||
MTS OJSC Notes due 2015 | 2,420,000 | 1,670 | (5 | ) | 1,665 | |||||||||
MTS OJSC Notes due 2018 | 2,928,358 | 1,760 | — | 1,760 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |
3,425 | ||||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​  | |
Fair value of notes based on market quotes at the stock exchanges where they are traded |         The fair values of notes based on the market quotes as of December 31, 2014 at the stock exchanges where they are traded were as follows: | |||||||||||||
                                                                                                                                                                                    | ||||||||||||||
Stock exchange | % of par | Fair value | ||||||||||||
MTS International Notes due 2020 | Frankfurt stock exchange | 95.85Â | 33,602Â | |||||||||||
MTS International Notes due 2023 | Frankfurt stock exchange | 75.00Â | 20,190Â | |||||||||||
MTS OJSC Notes due 2020 | Moscow Exchange | 96.33Â | 14,450Â | |||||||||||
MTS OJSC Notes due 2017 | Moscow Exchange | 90.10Â | 9,010Â | |||||||||||
MTS OJSC Notes due 2023 | Moscow Exchange | 100.19Â | 10,019Â | |||||||||||
MTS OJSC Notes due 2015 | Moscow Exchange | 96.81Â | 7,297Â | |||||||||||
MTS OJSC Notes due 2016 | Moscow Exchange | 85.30Â | 1,525Â | |||||||||||
MTS OJSC Notes due 2018 | Moscow Exchange | 95.06Â | 129Â | |||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |||||
Total notes | 96,222Â | |||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​  | |||||
Schedule of the Group's total available credit facilities | ||||||||||||||
As of December 31, 2014, the Group's total available unused credit facilities amounted to RUB 44,378 million and related to the following credit lines: | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
Maturity | Interest rate | Available till | Available | |||||||||||
amount | ||||||||||||||
Sberbank | 2018 - 2021 | 16% | Jun-15 | 25,000Â | ||||||||||
CitiBank Europe | 2024 | LIBOR 6M+ 0.9% | Apr-15 | 16,878Â | ||||||||||
ING Bank Eurasia | 2015 | MosPrime / LIBOR / | Jul-15 | 2,500Â | ||||||||||
EURIBORÂ +Â 1.50% | ||||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ||||
Total | 44,378Â | |||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​  | ||||
Aggregated scheduled maturities of principal on notes and bank loans | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
Notes | Bank loans | |||||||||||||
and other debt | ||||||||||||||
Payments due in the year ending December 31, | ||||||||||||||
2015 | 22,701Â | 19,435Â | ||||||||||||
2016 | 1,788Â | 33,821Â | ||||||||||||
2017 | 10,000Â | 39,937Â | ||||||||||||
2018 | 10,000Â | 28,527Â | ||||||||||||
2019 | — | 31,695 | ||||||||||||
Thereafter | 61,988Â | 23,104Â | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Total | 106,477Â | 176,519Â | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||||||
Notes | ||||||||||||||
Bank loans | ||||||||||||||
Schedule of borrowings | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
December 31, | ||||||||||||||
Interest rate | ||||||||||||||
Currency | 2014 | 2013 | ||||||||||||
MTS International Notes due 2020 (Note 2) | USD | 8.625 | % | 35,057 | 24,547 | |||||||||
MTS International Notes due 2023 (Note 2) | USD | 5 | % | 26,920 | 16,365 | |||||||||
MTS OJSC Notes due 2020 | RUB | 8.15 | % | 15,000 | 15,000 | |||||||||
MTS OJSC Notes due 2014 | RUB | 7.6 | % | — | 13,619 | |||||||||
MTS OJSC Notes due 2017 | RUB | 8.7 | % | 10,000 | 10,000 | |||||||||
MTS OJSC Notes due 2023 | RUB | 8.25 | % | 10,000 | 10,000 | |||||||||
MTS OJSC Notes due 2015 | RUB | 7.75 | % | 7,537 | 7,537 | |||||||||
MTS OJSC Notes due 2016 | RUB | 8.75 | % | 1,788 | 1,788 | |||||||||
MTS OJSC Notes due 2018 | RUB | 12 | % | 136 | 3,844 | |||||||||
MTS OJSC Notes due 2015 (A series) | RUB | 0.67 | % | 12 | 12 | |||||||||
MTS OJSC Notes due 2015Â -Â 2016 (B series) | RUB | 0.54 | % | 12 | 12 | |||||||||
MTS OJSC Notes due 2021Â -Â 2022 (V series) | RUB | 0.25 | % | 12 | 12 | |||||||||
Plus: unamortized premium | 3 | 8 | ||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||
Total notes | 106,477 | 102,744 | ||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||
Less: current portion | (22,701 | ) | (17,462 | ) | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||
Total notes, long-term | 83,776 | 85,282 | ||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||
Bank loans and other debt | ||||||||||||||
Bank loans | ||||||||||||||
Schedule of borrowings | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
December 31, | ||||||||||||||
Interest rate (actual at | ||||||||||||||
Maturity | December 31, 2014) | 2014 | 2013 | |||||||||||
USD-denominated: | ||||||||||||||
Calyon, ING Bank N.V, Nordea Bank AB, Raiffeisen Zentralbank Osterreich AG | 2015 - 2020 | LIBORÂ +Â 1.15% (1.51%) | 37,901 | 26,132 | ||||||||||
Skandinavska Enskilda Banken AB | 2015 - 2017 | LIBORÂ +Â 0.23 - 1.8% | 5,175 | 4,238 | ||||||||||
(0.59 - 2.16%) | ||||||||||||||
HSBC Bank plc and ING BHF Bank AG | 2015 | LIBOR + 0.3% (0.66%) | — | 394 | ||||||||||
Other | 2015 | 15% | 164 | 258 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
43,240 | 31,022 | |||||||||||||
EUR-denominated: | ||||||||||||||
Bank of China | 2015 | EURIBOR + 1.95% (2.12%) | — | 2,435 | ||||||||||
Credit Agricole Corporate Bank and BNP Paribas | 2015 - 2018 | EURIBORÂ +Â 1.65% (1.82%) | 1,893 | 1,557 | ||||||||||
LBBW | 2015 - 2017 | EURIBOR +1.52% (1.69%) | 956 | 839 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
2,849 | 4,831 | |||||||||||||
RUB-denominated: | ||||||||||||||
Sberbank | 2015 - 2021 | 8.45 - 12.05% | 125,000 | 80,000 | ||||||||||
Notes in REPO | 2015 | 19.36% | 3,425 | — | ||||||||||
SMM | 2015 | 0 - 15% | 556 | — | ||||||||||
Other | 2015 - 2023 | Various | 456 | 395 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
129,437 | 80,395 | |||||||||||||
AMD-denominated: | ||||||||||||||
ASHIB | 2015 | 13% | 176 | 108 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
176 | 108 | |||||||||||||
UZS-denominated: | ||||||||||||||
— | ||||||||||||||
Aloqabank | 2019 - 2022 | 12% | 759 | — | ||||||||||
Uzbektelecom | 2015 | 10% | 58 | —  | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
817 | ||||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Total bank loans and other debt | 176,519 | 116,356 | ||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Less: current portion | (19,435 | ) | (7,564 | ) | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Total bank loans and other debt, long-term | 157,084 | 108,792 | ||||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
​ | ​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||
CAPITAL_LEASE_OBLIGATION_Table
CAPITAL LEASE OBLIGATION (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
CAPITAL LEASE OBLIGATION | ||||||||
Summary of assets under capital lease and accumulated depreciation | ||||||||
                                                                                                                                                                                    | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Network and base station equipment | 6,427 | — | ||||||
Vehicles | 73 | 942 | ||||||
Buildings | — | 28 | ||||||
Leased assets, at cost | 6,500 | 970 | ||||||
Accumulated depreciation | (438 | ) | (793 | ) | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Leased assets, net | 6,062 | 177 | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Schedule of future minimum lease payments under capital leases together with the present value of the net minimum lease payments | ||||||||
                                                                                                                                                                                    | ||||||||
Payments due for the year ended December 31, | ||||||||
2015 | 1,119 | |||||||
2016 | 1,108 | |||||||
2017 | 1,153 | |||||||
2018 | 1,159 | |||||||
2019 | 1,159 | |||||||
Thereafter | 7,687 | |||||||
​ | ​ | ​  | ​  | ​ | ||||
Total minimum lease payments (undiscounted) | 13,385 | |||||||
Less amount representing interest | (3,990 | |||||||
) | ||||||||
​ | ​ | ​  | ​  | ​ | ||||
Present value of net minimum lease payments | 9,395 | |||||||
Less current portion of lease obligations | (538 | |||||||
) | ||||||||
​ | ​ | ​  | ​  | ​ | ||||
Non-current portion of lease obligations | 8,857 | |||||||
​ | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​  | ||||
ASSET_RETIREMENT_OBLIGATIONS_T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
ASSET RETIREMENT OBLIGATIONS | ||||||||
Estimated present value of the group's asset retirement obligations and change in liabilities | ||||||||
                                                                                                                                                                                    | ||||||||
2014 | 2013 | |||||||
Balance, beginning of the year | 2,743 | 2,763 | ||||||
Liabilities incurred in the current period | 73 | 303 | ||||||
Accretion expense | 251 | 97 | ||||||
Revisions in estimated cash flows | 26 | (453 | ) | |||||
Disposal of assets | (41 | ) | — | |||||
Currency translation adjustment | (30 | ) | 33 | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance, end of the year | 3,022 | 2,743 | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
DEFERRED_CONNECTION_FEES_Table
DEFERRED CONNECTION FEES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
DEFERRED CONNECTION FEES | ||||||||
Schedule of changes in deferred connection fees | ||||||||
                                                                                                                                                                                    | ||||||||
2014 | 2013 | |||||||
Balance, beginning of the year | 3,649 | 3,817 | ||||||
Payments received and deferred during the year | 1,763 | 1,714 | ||||||
Amounts amortized and recognized as revenue during the year | (1,912 | ) | (1,921 | ) | ||||
Currency translation adjustment | (63 | ) | 39 | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance, end of the year | 3,437 | 3,649 | ||||||
Less: current portion | (1,677 | ) | (1,604 | ) | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Non-current portion | 1,760 | 2,045 | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Derivative financial instruments and hedging activities | |||||||||||||
Schedule of the group's assets and liabilities associated with derivative agreements measured at fair value on a recurring basis | |||||||||||||
                                                                                                                                                                                    | |||||||||||||
Significant other | Significant other | ||||||||||||
observable | observable | ||||||||||||
inputs | inputs | ||||||||||||
(Level 2) as of | (Level 2) as of | ||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Interest rate swap agreements | 8 | 12 | |||||||||||
Cross-currency interest rate swap agreements | 21,936 | 1,825 | |||||||||||
Liabilities | |||||||||||||
Interest rate swap agreements | (2,550 | ) | (421 | ) | |||||||||
Cash flow hedging | |||||||||||||
Derivative financial instruments and hedging activities | |||||||||||||
Schedule of the fair value of the Group's derivative instruments | |||||||||||||
                                                                                                                                                                                    | |||||||||||||
December 31, | |||||||||||||
Statements of financial position location | 2014 | 2013 | |||||||||||
Asset derivatives | |||||||||||||
Cross-currency interest rate swaps | Other non-current assets | 21,936 | 1,825 | ||||||||||
Interest rate swaps | Other non-current assets | 8 | 12 | ||||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total | 21,944 | 1,837 | |||||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
Liability derivatives | |||||||||||||
Interest rate swaps | Other long-term liabilities | (522 | ) | (389 | ) | ||||||||
Interest rate swaps | Other payables | (2,028 | ) | (32 | ) | ||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total | (2,550 | ) | (421 | ) | |||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
Schedule of the effect of the Group's derivative instruments on the consolidated statements of operations and comprehensive income | |||||||||||||
                                                                                                                                                                                    | |||||||||||||
Years ended | |||||||||||||
December 31, | |||||||||||||
Location of gain / (loss) recognized | 2014 | 2013 | 2012 | ||||||||||
Interest rate swaps | Interest income/(expense) | 231 | (184 | ) | (429 | ) | |||||||
Including ineffective portion | Interest income/(expense) | 173 | (28 | ) | (183 | ) | |||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Cross-currency interest rate swaps | Currency exchange and transaction gain/ (loss) | 15,288 | (777 | ) | (235 | ) | |||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Including ineffective portion | Currency exchange and transaction gain/(loss) | (2,315 | ) | — | — | ||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total | 15,519 | (961 | ) | (664 | ) | ||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Schedule of amounts of accumulated other comprehensive loss reclassified into earnings | |||||||||||||
                                                                                                                                                                                    | |||||||||||||
Years ended December 31, | |||||||||||||
Location of (loss) recognized | 2014 | 2013 | 2012 | ||||||||||
Interest rate swaps | Interest expense | — | (33 | ) | —  | ||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total | — | (33 | ) | — | |||||||||
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Effect of interest rate swap agreements designated as hedges in accumulated other comprehensive income | |||||||||||||
                                                                                                                                                                                    | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Accumulated derivatives income / (loss), beginning of the year, net of tax of 293 and 4 and (60), respectively | 1,467 | 21 | (241 | ) | |||||||||
Fair value adjustments on hedging derivatives, net of tax of 2,894 and 138 and (29), respectively | 14,468 | 691 | (204 | ) | |||||||||
Amounts reclassified into earnings during the period, net of tax of (2,334) and 151 and 93, respectively | (11,668 | ) | 755 | 466 | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
Accumulated derivatives income, end of the year, net of tax of 853 and 293 and 4, respectively | 4,267 | 1,467 | 21 | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||
Summary of assets and liabilities measured at fair value on a recurring basis | |||||||||||
                                                                                                                                                                                    | |||||||||||
Significant | Significant other | Significant | |||||||||
observable | observable | unobservable | |||||||||
inputs | inputs | inputs | |||||||||
(Level 1) as of | (Level 2) as of | (Level 3) as of | |||||||||
December 31, | December 31, | December 31, | |||||||||
2014 | 2014 | 2014 | |||||||||
Assets | |||||||||||
Sistema International Funding S.A. Bonds due 2019 (related party) (Note 7, 25) | 42 | — | — | ||||||||
Sistema Notes due in 2016 (series 04) (related party) (Note 7, 25) | 534 | — | — | ||||||||
Derivative instruments (Note 21) | — | 21,944 | — | ||||||||
Liabilities | |||||||||||
Derivative instruments (Note 21) | — | (2,550 | ) | — | |||||||
Contingent consideration | — | — | (99 | ) | |||||||
Redeemable noncontrolling interest (Note 27) | — | — | (3,192 | ) | |||||||
                                                                                                                                                                                    | |||||||||||
Significant | Significant other | Significant | |||||||||
observable | observable | unobservable | |||||||||
inputs | inputs | inputs | |||||||||
(Level 1) as of | (Level 2) as of | (Level 3) as of | |||||||||
December 31, | December 31, | December 31, | |||||||||
2013 | 2013 | 2013 | |||||||||
Assets | |||||||||||
Mutual investment fund "Reservnyi" (Note 7 and 25) | 4,154 | — | — | ||||||||
Derivative instruments (Note 21) | — | 1,837 | — | ||||||||
Liabilities | |||||||||||
Derivative instruments (Note 21) | — | (421 | ) | — | |||||||
Contingent consideration | — | — | (11 | ) | |||||||
Redeemable noncontrolling interest (Note 27) | — | — | (2,932 | ) | |||||||
Schedule of the most significant quantitative inputs used to measure the fair value of redeemable noncontrolling interest | |||||||||||
                                                                                                                                                                                    | |||||||||||
December 31, | |||||||||||
Unobservable inputs | 2014 | 2013 | |||||||||
Discount rate | 15%Â | 12%Â | |||||||||
Revenue growth rate | 0.02Â -Â 0.2% (av. 0.1%) | 0.7Â -Â 1.2% (av. 0.9%) | |||||||||
OIBDA margin | 44.7Â -Â 46.5% (av. 45.4%) | 49.4Â -Â 50.7% (av. 49.8%) | |||||||||
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
ACCRUED LIABILITIES | ||||||||
Schedule of components of accrued liabilities | ||||||||
                                                                                                                                                                                    | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accruals for services | 10,870Â | 9,911Â | ||||||
Accrued payroll and vacation | 7,670Â | 7,247Â | ||||||
Accruals for taxes | 6,703Â | 8,355Â | ||||||
Interest payable on debt | 1,830Â | 1,792Â | ||||||
Accruals for payments to social funds | 547Â | 369Â | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total accrued liabilities | 27,620Â | 27,674Â | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
INCOME_TAX_Tables
INCOME TAX (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
INCOME TAX | |||||||||||||||||
Schedule of provision for income taxes | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
Years ended | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Income from continuing operations before provision for income taxes | |||||||||||||||||
Russia | 55,424 | 77,502 | 71,626 | ||||||||||||||
Other jurisdictions | 13,316 | 19,186 | 11,216 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Total income from continuing operations before provision for income taxes | 68,740 | 96,688 | 82,842 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Current income tax expense | |||||||||||||||||
Russia | 5,764 | 7,557 | 13,790 | ||||||||||||||
Other jurisdictions | 4,043 | 2,405 | 2,304 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Total current income tax expense | 9,807 | 9,962 | 16,094 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Deferred income tax expense/(benefit) | |||||||||||||||||
Russia | 8,330 | 8,487 | 2,312 | ||||||||||||||
Other jurisdictions | (1,790 | ) | 1,184 | 978 | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Total deferred income tax expense | 6,540 | 9,671 | 3,290 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Total provision for income taxes | 16,347 | 19,633 | 19,384 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||||||
Russian statutory income tax rate reconciled to the Group's effective income tax rate | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Statutory income tax rate for the year | 20 | % | 20 | % | 20 | % | |||||||||||
Adjustments: | |||||||||||||||||
(Income) / expenses not accepted for tax purposes | 2 | (0.5 | ) | 2 | |||||||||||||
Change in unrecognized tax benefits | — | — | (0.5 | ) | |||||||||||||
Settlements with tax authorities | 0.6 | (0.3 | ) | 0.4 | |||||||||||||
Earnings distribution from subsidiaries | 4 | 1.8 | 1.5 | ||||||||||||||
Effect of change in tax rate in Ukraine | — | (0.1 | ) | 0.2 | |||||||||||||
Loss carryforward utilisation | — | — | (0.3 | ) | |||||||||||||
Tax rate differential of foreign subsidiaries | (1.9 | ) | (0.5 | ) | — | ||||||||||||
Recognised change in fair value of derivative financial instruments | (1.0 | ) | 0.1 | — | |||||||||||||
Other | 0.1 | (0.2 | ) | 0.1 | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Effective income tax rate | 23.8 | % | 20.3 | % | 23.4 | % | |||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||||||
Schedule of deferred tax assets and liabilities | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Assets / (liabilities) arising from tax effect of: | |||||||||||||||||
Deferred tax assets | |||||||||||||||||
Accrued expenses for services | 7,757 | 6,291 | |||||||||||||||
Depreciation of property, plant and equipment | 4,015 | 1,229 | |||||||||||||||
Deferred connection fees | 929 | 1,115 | |||||||||||||||
Provision for investment in Delta Bank in Ukraine | 925 | — | |||||||||||||||
Inventory obsolescence | 192 | 265 | |||||||||||||||
Other | — | 1,242 | |||||||||||||||
Loss carryforward | 8,879 | 5,880 | |||||||||||||||
Valuation allowance | (8,438 | ) | (5,504 | ) | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
Total deferred tax assets | 14,259 | 10,518 | |||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||||||||
Deferred tax liabilities | |||||||||||||||||
Depreciation of property, plant and equipment | (17,489 | ) | (12,735 | ) | |||||||||||||
Other intangible assets | (6,906 | ) | (2,995 | ) | |||||||||||||
Potential distributions from / to Group's subsidiaries / associates | (5,817 | ) | (4,553 | ) | |||||||||||||
Licenses acquired | (1,118 | ) | (774 | ) | |||||||||||||
Customer base | (905 | ) | (1,027 | ) | |||||||||||||
Debt issuance cost | (348 | ) | (405 | ) | |||||||||||||
Other | (138 | ) | (436 | ) | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
Total deferred tax liabilities | (32,721 | ) | (22,925 | ) | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||||||||
Net deferred tax liability | (18,462 | ) | (12,407 | ) | |||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||||||||
Net deferred tax asset, current | 11,206 | 7,933 | |||||||||||||||
Net deferred tax asset, non-current | 3,610 | 862 | |||||||||||||||
Net deferred tax liability, long-term | (33,278 | ) | (21,202 | ) | |||||||||||||
Schedule of significant balances for income tax losses carryforward and related operating losses | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Jurisdiction | Period for | Operating | Tax | Operating | Tax | ||||||||||||
carry-forward | losses | losses | losses | losses | |||||||||||||
Luxembourg (MGTS Finance S.A.) | Unlimited | 24,183 | 7,017 | 14,064 | 4,101 | ||||||||||||
Russia (Comstar-Regions and other) | 2015Â -Â 2024 | 9,313Â | 1,862Â | 8,897Â | 1,779Â | ||||||||||||
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total | 33,496Â | 8,879Â | 22,961Â | 5,880Â | |||||||||||||
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​ | ​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Valuation allowances against deferred tax assets | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
December 31, | |||||||||||||||||
Valuation allowances | 2014 | 2013 | |||||||||||||||
Sale of investment in Svyazinvest | 2,875Â | 2,160Â | |||||||||||||||
Operating loss in Luxemburg (MGTS Finance S.A.) | 5,305 | 3,086 | |||||||||||||||
Other | 258Â | 258Â | |||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
Total | 8,438Â | 5,504Â | |||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||||||||
Summary of changes in the allowance against deferred tax assets | |||||||||||||||||
                                                                                                                                                                                    | |||||||||||||||||
Balance, | Charged to | Impact of | Balance, end of | ||||||||||||||
beginning of | Income tax | foreign currency | the period | ||||||||||||||
the period | expense | translation | |||||||||||||||
adjustments | |||||||||||||||||
Year ended December 31, 2014 | 5,504 | — | 2,934 | 8,438 | |||||||||||||
Year ended December 31, 2013 | 4,952 | 258 | 294 | 5,504 | |||||||||||||
Year ended December 31, 2012 | 5,250 | — | (298 | ) | 4,952 | ||||||||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance, beginning of the year | 518 | 321 | 526 | ||||||||||||||
Additions based on tax position related to the current year | 37 | 366 | |||||||||||||||
— | |||||||||||||||||
Additions based on tax positions related to prior years | 22 | 1 | 66 | ||||||||||||||
Additions based on tax of acquired entities | — | — | 10 | ||||||||||||||
Reduction in tax positions related to prior years | (267 | ) | (170 | ) | (220 | ) | |||||||||||
Settlements with tax authorities | (25 | ) | — | (61 | ) | ||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
Balance, end of the year | 285 | 518 | 321 | ||||||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |||||||
RELATED_PARTIES_Tables
RELATED PARTIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
RELATED PARTIES | |||||||||||
Schedule of accounts receivable from and accounts payable to related parties | |||||||||||
                                                                                                                                                                                    | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Accounts receivable: | |||||||||||
Sistema, parent company (Note 15) | 3,215 | — | |||||||||
MTS Belarus, the Group associate | 514Â | 304Â | |||||||||
MTS Bank, the Group associate | 510Â | 128Â | |||||||||
Sitronics N, a subsidiary of Sistema | 121Â | 337Â | |||||||||
Stream, the Group associate | 42Â | 59Â | |||||||||
NVision Group, subsidiaries of Sistema | 16Â | 33Â | |||||||||
Other related parties | 107Â | 104Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total accounts receivable, related parties | 4,525Â | 965Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
Accounts payable: | |||||||||||
NVision Group, subsidiaries of Sistema | 3,311Â | 1,605Â | |||||||||
MTS Bank, the Group associate | 377Â | 697Â | |||||||||
MTS Belarus, the Group associate | 213Â | 208Â | |||||||||
Stream, the Group associate | 211Â | 99Â | |||||||||
Maxima, a subsidiary of Sistema | 162Â | 307Â | |||||||||
Smart Cards Group, subsidiaries of Sistema | 72Â | 201Â | |||||||||
Other related parties | 328Â | 198Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total accounts payable, related parties | 4,674Â | 3,315Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
Schedule of operating transactions with related parties | |||||||||||
                                                                                                                                                                                    | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenues from related parties: | |||||||||||
MTS Bank, the Group associate (telecommunications and call center services, bank cards distribution commission) | 787 | 378 | 88 | ||||||||
MTS Belarus, the Group associate (roaming and interconnect services) | 269 | 149 | 209 | ||||||||
Medsi Group, subsidiaries of Sistema (telecommunications and call center services) | 83 | 48 | 28 | ||||||||
NVision Group, subsidiaries of Sistema (fixed line services) | 82 | 75 | 77 | ||||||||
Sitronics N, a subsidiary of Sistema (construction of fiber optic link) | 7 | 288 | 26 | ||||||||
Jet Air Group, subsidiaries of Sistema (rent) | 4 | 60 | — | ||||||||
Other related parties | 140 | 115 | 64 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total revenues from related parties | 1,372 | 1,113 | 492 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Operating expenses incurred on transactions with related parties | |||||||||||
Maxima, a subsidiary of Sistema (advertising) | 1,575 | 1,757 | 1,902 | ||||||||
Stream, the Group associate (content services) | 1,395 | 711 | — | ||||||||
NVision Group, subsidiaries of Sistema (IT consulting) | 846 | 1,083 | 1,115 | ||||||||
MTS Bank, the Group's associate (commission related (income)/expenses) | (406 | ) | 413 | 55 | |||||||
Elavius, a subsidiary of Sistema (transportation services) | 399 | 347 | 351 | ||||||||
MTS Belarus, the Group associate (roaming and interconnect services) | 395 | 278 | 424 | ||||||||
AB Safety, a subsidiary of Sistema (security services) | 292 | 354 | 344 | ||||||||
Jet Air Group, subsidiaries of Sistema (aircraft maintenance) | 127 | — | — | ||||||||
Other related parties | 455 | 513 | 423 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total operating expenses incurred on transactions with related parties | 5,078 | 5,456 | 4,614 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Schedule of investments in and provided loans to related parties | |||||||||||
                                                                                                                                                                                    | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Loans to, promissory notes and investments in shares of related parties: | |||||||||||
Short-term investments (Note 7) | |||||||||||
Deposits at MTS Bank | — | 5,081 | |||||||||
Mutual investment fund "Reservnyi", managed by DIK, a subsidiary of Sistema | — | 4,154 | |||||||||
Sistema Notes due in 2016 (series 04) | 534 | — | |||||||||
Sistema International Funding S.A. Bonds due 2019, a subsidiary of Sistema | 42 | — | |||||||||
Loan receivable from Navigation Information Systems, a subsidiary of Sistema | 132 | — | |||||||||
Loan receivable from Moscow Business Incubator, a subsidiary of Sistema | 52 | —  | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total short-term investments in related parties | 760Â | 9,235Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
Other investments (Note 16) | |||||||||||
Promissory notes of Sistema | 618Â | 618Â | |||||||||
Loan receivable from Navigation Information Systems, a subsidiary of Sistema | 92 | —  | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total other investments to related parties | 710Â | 618Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
Investments in shares (Note 16) | |||||||||||
Sistema Mass Media, a subsidiary of Sistema | 117Â | 117Â | |||||||||
Other | 8Â | 8Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total investments in shares of related parties | 125Â | 125Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||
Changes in the Group's equity resulting from changes in the respective subsidiaries' ownership interests | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Net income attributable to the Group | 51,822 | 79,839 | 29,642 | |||||||||||
Transfers from the noncontrolling interest | ||||||||||||||
Increase in own equity due to acquisition of own shares by MGTS | — | — | 57 | |||||||||||
Decrease in own equity due to acquisition of noncontrolling interest in Teleservice | (23 | ) | — | —  | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Net transfers from the noncontrolling interest | (23 | ) | — | 57 | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Net income attributable to the Group and transfers from the noncontrolling interest | 51,799 | 79,839 | 29,699 | |||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Schedule of accumulated other comprehensive by components | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
Currency | Unrealized | Unrecognized | Accumulated | |||||||||||
translation | (gains) / losses | actuarial | other | |||||||||||
adjustment | on derivatives | (gains) / losses | comprehensive | |||||||||||
(income) / loss | ||||||||||||||
Balance at January 1, 2013 | 13,224 | (21 | ) | 473 | 13,676 | |||||||||
Other comprehensive loss / (income) | 6,657 | (861 | ) | — | 5,796 | |||||||||
Less: tax expense | — | 172 | — | 172 | ||||||||||
Amounts reclassified to net income | (3,682 | )(1) | (945 | ) | (220 | ) | (4,847 | ) | ||||||
Less: tax expense | — | 189 | 44 | 233 | ||||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Net other comprehensive loss / (income) | 2,975 | (1,445 | ) | (176 | ) | 1,354 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance at December 31, 2013 | 16,199 | (1,466 | ) | 297 | 15,030 | |||||||||
Other comprehensive income | (5,925 | ) | (17,363 | ) | (82 | ) | (23,370 | ) | ||||||
Less: tax expense | — | 2,894 | 16 | 2,910 | ||||||||||
— | ||||||||||||||
Amounts reclassified to net income | — | 14,002 | 70 | 14,072 | ||||||||||
Less: tax expense | — | (2,334 | ) | (14 | ) | (2,348 | ) | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Net other comprehensive loss / (income) | (5,925 | ) | (2,801 | ) | (10 | ) | (8,736 | ) | ||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Balance as of December 31, 2014 | 10,274 | (4,267 | ) | 287 | 6,294 | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
-1 | The currency translation adjustment of RUB 3,682Â million included as income from discontinued operations in consolidated statement of operations and comprehensive income. | |||||||||||||
Schedule of the Group's declared cash dividends | ||||||||||||||
                                                                                                                                                                                    | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Dividends declared (including dividends on treasury shares of 1,922 and 1,538 and 1,140, respectively) | 51,247Â | 40,956Â | 30,397Â | |||||||||||
Dividends, RUB per ADS | 49.60Â | 39.64Â | 29.42Â | |||||||||||
Dividends, RUB per share | 24.80Â | 19.82Â | 14.71Â | |||||||||||
GENERAL_AND_ADMINISTRATIVE_EXP1
GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
GENERAL AND ADMINISTRATIVE EXPENSES | |||||||||||
Schedule of general and administrative expenses | |||||||||||
                                                                                                                                                                                    | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Salaries and social contributions | 49,113Â | 45,790Â | 40,486Â | ||||||||
Rent | 16,220Â | 14,677Â | 13,334Â | ||||||||
General and administrative | 8,057Â | 7,955Â | 8,016Â | ||||||||
Repair and maintenance | 6,875Â | 6,217Â | 6,364Â | ||||||||
Taxes other than income | 5,913Â | 6,374Â | 5,422Â | ||||||||
Consulting expenses | 2,192Â | 1,569Â | 1,689Â | ||||||||
Billing and data processing | 2,070Â | 2,035Â | 1,726Â | ||||||||
Inventory obsolescence | 357Â | 660Â | 759Â | ||||||||
Insurance | 174Â | 181Â | 181Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total general and administrative expenses | 90,971Â | 85,458Â | 77,977Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SEGMENT INFORMATION | |||||||||||
Financial information by reportable segment | |||||||||||
                                                                                                                                                                                    | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net operating revenues from external customers: | |||||||||||
Russia convergent | 336,099 | 317,437 | 303,478 | ||||||||
Moscow fixed line | 35,938 | 35,493 | 33,293 | ||||||||
Ukraine | 29,064 | 37,665 | 36,118 | ||||||||
Other | 9,657 | 7,848 | 5,351 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total net operating revenues from external customers | 410,758 | 398,443 | 378,240 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Including revenue from mobile services | 352,964 | 339,883 | 322,517 | ||||||||
Including revenue from fixed line services | 57,794 | 58,560 | 55,723 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Intersegment operating revenues: | |||||||||||
Russia convergent | 4,633 | 3,638 | 2,513 | ||||||||
Moscow fixed line | 4,886 | 4,831 | 4,563 | ||||||||
Ukraine | 3,722 | 2,067 | 1,604 | ||||||||
Other | 1,541 | 1,281 | 1,031 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total intersegment operating revenues | 14,782 | 11,817 | 9,711 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Depreciation and amortization expense: | |||||||||||
Russia convergent | 57,773 | 57,655 | 51,994 | ||||||||
Moscow fixed line | 7,609 | 5,182 | 4,251 | ||||||||
Ukraine | 6,780 | 8,896 | 9,571 | ||||||||
Other | 2,619 | 1,588 | 2,104 | ||||||||
Intercompany eliminations | (71 | ) | (68 | ) | (10 | ) | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total depreciation and amortization expense | 74,710 | 73,253 | 67,910 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Segment net operating income: | |||||||||||
Russia convergent | 85,964 | 79,199 | 76,832 | ||||||||
Moscow fixed line | 13,601 | 15,678 | 14,938 | ||||||||
Ukraine | 3,390 | 11,745 | 9,647 | ||||||||
Other | (559 | ) | (4,810 | ) | (7,625 | ) | |||||
Intercompany eliminations | (47 | ) | (54 | ) | (8 | ) | |||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Segment net operating income | 102,349 | 101,758 | 93,794 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
Net operating income | 102,349 | 101,758 | 93,794 | ||||||||
Currency exchange and transaction loss / (gain) | 18,024 | 5,473 | (3,952 | ) | |||||||
Interest income | (4,519 | ) | (2,793 | ) | (2,588 | ) | |||||
Interest expense | 16,453 | 15,498 | 17,673 | ||||||||
Equity in net loss / (income) of associates | 2,880 | (2,472 | ) | (869 | ) | ||||||
Other expense / (income), net | 771 | (10,636 | ) | 688 | |||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Income from continuing operations before provision for income taxes | 68,740 | 96,688 | 82,842 | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
                                                                                                                                                                                    | |||||||||||
Years ended | |||||||||||
December, 31 | |||||||||||
2014 | 2013 | ||||||||||
Additions to long-lived assets: | |||||||||||
Russia convergent | 86,456Â | 55,939Â | |||||||||
Moscow fixed line | 13,649Â | 14,121Â | |||||||||
Ukraine | 5,103Â | 8,856Â | |||||||||
Other | 8,234Â | 1,951Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total additions to long-lived assets | 113,442Â | 80,867Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
                                                                                                                                                                                    | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Long-lived assets(1): | |||||||||||
Russia convergent | 276,896Â | 246,422Â | |||||||||
Moscow fixed line | 64,992Â | 61,812Â | |||||||||
Ukraine | 18,546Â | 24,107Â | |||||||||
Other | 37,825Â | 12,648Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total long-lived assets | 398,259Â | 344,989Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
Total assets: | |||||||||||
Russia convergent | 439,950Â | 355,203Â | |||||||||
Moscow fixed line | 78,468Â | 75,929Â | |||||||||
Ukraine | 42,988Â | 38,586Â | |||||||||
Other | 47,521Â | 15,806Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total assets | 608,927Â | 485,524Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
-1 | Comprises of property, plant and equipment, licenses, goodwill and other intangible assets. | ||||||||||
Financial information by geographical segment | |||||||||||
                                                                                                                                                                                    | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net operating revenues from external customers: | |||||||||||
Russia | 372,080Â | 352,930Â | 336,771Â | ||||||||
Other | 38,678Â | 45,513Â | 41,469Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
Total net operating revenues from external customers | 410,758Â | 398,443Â | 378,240Â | ||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ​  | ​  | ​  | |
                                                                                                                                                                                    | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Long-lived assets: | |||||||||||
Russia | 347,994Â | 308,336Â | |||||||||
Other | 50,265Â | 36,653Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
Total long-lived assets | 398,259Â | 344,989Â | |||||||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​ | ||||
​ | ​ | ​  | ​  | ​ | ​  | ​  | ​  | ||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Future minimum lease payments due under operating lease | |||||
                                                                                                                                                                                    | |||||
Payments due in the years ended December 31, | |||||
2015 | 5,172Â | ||||
2016 | 691Â | ||||
2017 | 384Â | ||||
2018 | 269Â | ||||
2019 | 222Â | ||||
Thereafter | 1,700Â | ||||
​ | ​ | ​  | ​  | ​ | |
Total | 8,438Â | ||||
​ | ​ | ​  | ​  | ​ | |
​ | ​ | ​  | ​  | ​  | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS (Details) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 24, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2010 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 |
RUB | RUB | RUB | RUB | MTS International Notes due 2020 and 2023 | MTS International Notes due 2020 and 2023 | MTS International Notes due 2020 and 2023 | MTS International Notes due 2020 and 2023 | MTS International Notes due 2020 | MTS International Notes due 2023 | MTS-Turkmenistan | MTS-Turkmenistan | MTS Bermuda | MTS Bermuda | MTS Finance | MTS Finance | MTS Ukraine | MTS Ukraine | RTC | RTC | Sibintertelecom | Sibintertelecom | TVT | Sputnikovoe TV | Sputnikovoe TV | Sistema Telecom | Elf Group | Intercom | ZhelGorTeleCom | Pilot | TVKiK | Dega | Dega | SMARTS | Metro-Telecom | Metro-Telecom | MGTS | MGTS | K-Telecom | K-Telecom | UMS | UMS | MTS International Funding Limited ("MTS International") | MTS International Funding Limited ("MTS International") | MTS International Funding Limited ("MTS International") | MTS International Funding Limited ("MTS International") | MTS International Funding Limited ("MTS International") | MTS International Funding Limited ("MTS International") | MTS International Funding Limited ("MTS International") | MTS International Funding Limited ("MTS International") | MTS International Funding Limited ("MTS International") | Intellect Telecom | Intellect Telecom | Stream | Stream | MTS Belarus | MTS Belarus | MTS Bank | MTS Bank | OZON Holdings Limited | |
Accrued liabilities | Accrued liabilities | Notes payable, net of current portion | Notes payable, net of current portion | RUB | RUB | RUB | MTS International Notes due 2020 | MTS International Notes due 2020 | MTS International Notes due 2020 | MTS International Notes due 2023 | MTS International Notes due 2023 | MTS International Notes due 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
RUB | RUB | RUB | RUB | USD ($) | RUB | USD ($) | USD ($) | RUB | USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in significant legal entities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ownership interest in equity investment (as a percent) | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 95.00% | 95.00% | 94.60% | 94.60% | 80.00% | 80.00% | 50.01% | 50.01% | 47.30% | 47.30% | 45.00% | 45.00% | 49.00% | 49.00% | 27.00% | 26.30% | 10.80% | |||||||||||||||||||
Debt issued by consolidated variable interest entity | $750 | $500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase value of notes | 126.9 | 5,043 | 21.5 | 781 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated interest rate (as percent) | 8.63% | 5.00% | 8.63% | 5.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 61,566 | 30,612 | 22,014 | 59,589 | 3 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intercompany Receivable from MTS OJSC | 70,535 | 41,035 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | 70,538 | 41,036 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest payable | 1,830 | 1,792 | 187 | 123 | 212 | 123 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable due 2020 and 2023 | 83,776 | 85,282 | 61,977 | 40,912 | 70,323 | 40,912 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other payables | 3,986 | 1,498 | 3 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 70,538 | 41,036 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs incurred in connection with notes maintenance activities included in the interest expense | 16,453 | 15,498 | 17,673 | 4,080 | 2,535 | 2,011 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS (Details 2) | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Property, plant and equipment | ||||
Minimum useful life of property, plant and equipment required for capitalization at historical cost | 1 year | |||
Income taxes | ||||
Corporate income tax rate (as a percent) | 20.00% | 20.00% | 20.00% | 20.00% |
Income tax rate on dividends paid (as a percent) | 9.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS (Details 3) (RUB) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Impairment of long-lived assets | ||
Impairment of long-lived assets | 0 | |
Uzdunrobita | ||
Impairment of long-lived assets | ||
Impairment of long-lived assets | 16,514 | |
Goodwill | ||
Goodwill impairment | 3,523 | |
Licenses | Minimum | ||
Finite-lived intangible assets | ||
Weighted-average amortization period | 3 years | |
Licenses | Maximum | ||
Finite-lived intangible assets | ||
Weighted-average amortization period | 15 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS (Details 4) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Regulated services | |||
Revenue from regulated tariff services as a percentage of consolidated revenue | 5.20% | 5.70% | 6.50% |
Mobile subscribers | |||
Estimated average subscriber life | |||
Estimated subscriber's life | 12 years 6 months | ||
Mobile subscribers | Minimum | |||
Estimated average subscriber life | |||
Estimated subscriber's life | 1 month | ||
Residential wireline voice phone subscribers | |||
Estimated average subscriber life | |||
Estimated subscriber's life | 15 years | ||
Residential subscribers of broadband internet service | |||
Estimated average subscriber life | |||
Estimated subscriber's life | 1 year | ||
Other fixed line subscribers | |||
Estimated average subscriber life | |||
Estimated subscriber's life | 5 years | ||
Other fixed line subscribers | Minimum | |||
Estimated average subscriber life | |||
Estimated subscriber's life | 3 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS (Details 5) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
item | |||
Customer incentives | |||
Number of deliverables under customer incentives arrangements | 2 | ||
Revenue generated from multiple element arrangements | 961 | 3,276 | |
Sales and marketing expenses | |||
Period from the date a new subscriber is activated during which revenues are received | 6 months | ||
Advertising costs | 8,313 | 8,463 | 7,908 |
Minimum | |||
Customer incentives | |||
Period of offer of free telecommunication services | 1 month | ||
Maximum | |||
Customer incentives | |||
Period of offer of free telecommunication services | 12 months |
SUMMARY_OF_SIGNIFICANT_ACCOUNT8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS (Details 6) (RUB) | 12 Months Ended | 36 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
item | ||||
Financial instruments and hedging activities | ||||
Reclassifications of fair value hierarchy levels of financial assets and liabilities | 0 | |||
Number of counterparties with whom multiple derivative contracts related to assets and liabilities are not offset | 1 | |||
Stock-based compensation | ||||
Compensation cost recognized related to phantom stock options granted | 1,017.20 | 483 | 1,445.80 | |
Russia | ||||
Retirement benefit and social security costs | ||||
Social contribution expensed | 8,064 | 7,535 | 6,512 | |
Ukraine | ||||
Retirement benefit and social security costs | ||||
Payments to the pension fund | 1,535 | 2,803 | 2,493 |
BUSINESS_ACQUISITIONS_AND_DISP2
BUSINESS ACQUISITIONS AND DISPOSALS (Details) (RUB) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | 31-May-12 | Apr. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2012 |
sqft | ||||||||
item | ||||||||
Purchase price allocation | ||||||||
Goodwill | 36,311 | 32,704 | 36,311 | 32,704 | 32,428 | |||
Disposal | ||||||||
Proceeds from sale of stake | 508 | |||||||
Business-Nedvizhimost | ||||||||
Disposal | ||||||||
Ownership after deconsolidation (as a percent) | 49.00% | 49.00% | ||||||
Sistema | ||||||||
Disposal | ||||||||
Proceeds from sale of stake | 496.1 | |||||||
Business-Nedvizhimost | ||||||||
Disposal | ||||||||
Ownership interest sold (as a percent) | 49.00% | 51.00% | ||||||
Proceeds from sale of stake | 3,100 | |||||||
Proceeds from sale of stake | 3,200 | |||||||
Number of real estate sites | 76 | 76 | ||||||
Number of real estate facilities | 44 | 44 | ||||||
Area of real estate | 178,000 | 178,000 | ||||||
Stream | ||||||||
Disposal | ||||||||
Ownership stake of Sistema (as a percent) | 55.00% | |||||||
Ownership before deconsolidation (as a percent) | 100.00% | |||||||
Ownership after deconsolidation (as a percent) | 45.00% | |||||||
Rights to use radio frequencies | Minimum | ||||||||
Business acquisitions | ||||||||
Weighted-average amortization period | 1 year | |||||||
Rights to use radio frequencies | Maximum | ||||||||
Business acquisitions | ||||||||
Weighted-average amortization period | 15 years | |||||||
Customer base | Minimum | ||||||||
Business acquisitions | ||||||||
Weighted-average amortization period | 4 years | |||||||
Customer base | Maximum | ||||||||
Business acquisitions | ||||||||
Weighted-average amortization period | 31 years | |||||||
Mobile companies acquired in 2014 | ||||||||
Business acquisitions | ||||||||
Number of months after which the purchase price is payable | 18 months | |||||||
Purchase price allocation | ||||||||
Current assets | 168 | 168 | ||||||
Property, plant and equipment | 358 | 358 | ||||||
Goodwill | 1,630 | 1,630 | ||||||
Other non-current assets | 165 | 165 | ||||||
Current liabilities | -683 | -683 | ||||||
Non-current liabilities | -319 | -319 | ||||||
Contingent consideration | -100 | -100 | ||||||
Consideration paid | 2,757 | |||||||
Business acquisitions | ||||||||
Additional consideration to be paid within 18 months from the acquisition date | 150 | |||||||
Provision for tax liabilities and related indemnification assets | 24 | 24 | ||||||
Selected unaudited pro forma results of operations: | ||||||||
Net revenues | 411,353 | 399,161 | 378,938 | |||||
Net income | 51,598 | 79,738 | 29,665 | |||||
Mobile companies acquired in 2014 | Rights to use radio frequencies | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 1,460 | 1,460 | ||||||
Mobile companies acquired in 2014 | Rights to use radio frequencies | Minimum | ||||||||
Business acquisitions | ||||||||
Weighted-average amortization period | 7 years | |||||||
Mobile companies acquired in 2014 | Rights to use radio frequencies | Maximum | ||||||||
Business acquisitions | ||||||||
Weighted-average amortization period | 8 years | |||||||
Mobile companies acquired in 2014 | Customer base | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 78 | 78 | ||||||
Business acquisitions | ||||||||
Weighted-average amortization period | 31 years | |||||||
SMARTS-Ivanovo | ||||||||
Business acquisitions | ||||||||
Percentage of ownership acquired | 100.00% | 100.00% | ||||||
Purchase price allocation | ||||||||
Current assets | 24 | 24 | ||||||
Property, plant and equipment | 68 | 68 | ||||||
Goodwill | 41 | 41 | ||||||
Current liabilities | -88 | -88 | ||||||
Non-current liabilities | -95 | -95 | ||||||
Contingent consideration | -2 | -2 | ||||||
Consideration paid | 424 | |||||||
SMARTS-Ivanovo | Rights to use radio frequencies | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 455 | 455 | ||||||
SMARTS-Ivanovo | Customer base | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 21 | 21 | ||||||
SMARTS-Ufa | ||||||||
Business acquisitions | ||||||||
Percentage of ownership acquired | 100.00% | 100.00% | ||||||
Purchase price allocation | ||||||||
Current assets | 47 | 47 | ||||||
Property, plant and equipment | 94 | 94 | ||||||
Goodwill | 182 | 182 | ||||||
Current liabilities | -268 | -268 | ||||||
Non-current liabilities | -101 | -101 | ||||||
Contingent consideration | -2 | -2 | ||||||
Consideration paid | 399 | |||||||
SMARTS-Ufa | Rights to use radio frequencies | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 434 | 434 | ||||||
SMARTS-Ufa | Customer base | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 13 | 13 | ||||||
Penza-GSM | ||||||||
Business acquisitions | ||||||||
Percentage of ownership acquired | 100.00% | 100.00% | ||||||
Purchase price allocation | ||||||||
Current assets | 97 | 97 | ||||||
Property, plant and equipment | 196 | 196 | ||||||
Goodwill | 1,407 | 1,407 | ||||||
Other non-current assets | 165 | 165 | ||||||
Current liabilities | -327 | -327 | ||||||
Non-current liabilities | -123 | -123 | ||||||
Contingent consideration | -96 | -96 | ||||||
Consideration paid | 1,934 | |||||||
Penza-GSM | Rights to use radio frequencies | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 571 | 571 | ||||||
Penza-GSM | Customer base | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 44 | 44 | ||||||
Companies acquired from third parties in 2014 | ||||||||
Revenue and earnings of the companies acquired from third parties in 2014 since the acquisition date included in the consolidated statement of operations | ||||||||
Net revenues | 3 | |||||||
Net loss | 4 | |||||||
Regional fixed line operators acquired in 2012 | ||||||||
Purchase price allocation | ||||||||
Current assets | 22 | 22 | ||||||
Property, plant and equipment | 84 | 84 | ||||||
Goodwill | 404 | 404 | 404 | |||||
Current liabilities | -78 | -78 | ||||||
Non-current liabilities | -30 | -30 | ||||||
Contingent consideration | -43 | -43 | ||||||
Consideration paid | 509 | |||||||
Regional fixed line operators acquired in 2012 | Customer base | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 150 | 150 | ||||||
Regional fixed line operators acquired in 2012 | Customer base | Minimum | ||||||||
Business acquisitions | ||||||||
Weighted-average amortization period | 7 years | |||||||
Regional fixed line operators acquired in 2012 | Customer base | Maximum | ||||||||
Business acquisitions | ||||||||
Weighted-average amortization period | 9 years | |||||||
Elf Group | ||||||||
Business acquisitions | ||||||||
Percentage of ownership acquired | 100.00% | |||||||
Purchase price allocation | ||||||||
Current assets | 6 | |||||||
Property, plant and equipment | 49 | |||||||
Goodwill | 172 | |||||||
Current liabilities | -44 | |||||||
Non-current liabilities | -9 | |||||||
Contingent consideration | -28 | |||||||
Consideration paid | 191 | |||||||
Elf Group | Customer base | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 45 | |||||||
Intercom | ||||||||
Business acquisitions | ||||||||
Percentage of ownership acquired | 100.00% | |||||||
Purchase price allocation | ||||||||
Current assets | 9 | |||||||
Property, plant and equipment | 11 | |||||||
Goodwill | 62 | |||||||
Current liabilities | -15 | |||||||
Non-current liabilities | -6 | |||||||
Contingent consideration | -10 | |||||||
Consideration paid | 80 | |||||||
Intercom | Customer base | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 29 | |||||||
ZhelGorTeleCom | ||||||||
Business acquisitions | ||||||||
Percentage of ownership acquired | 100.00% | |||||||
Purchase price allocation | ||||||||
Current assets | 4 | |||||||
Property, plant and equipment | 3 | |||||||
Goodwill | 115 | |||||||
Current liabilities | -13 | |||||||
Non-current liabilities | -11 | |||||||
Contingent consideration | -5 | |||||||
Consideration paid | 147 | |||||||
ZhelGorTeleCom | Customer base | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 54 | |||||||
Pilot & TVKiK | ||||||||
Business acquisitions | ||||||||
Percentage of ownership acquired | 100.00% | |||||||
Purchase price allocation | ||||||||
Current assets | 3 | |||||||
Property, plant and equipment | 21 | |||||||
Goodwill | 55 | |||||||
Current liabilities | -6 | |||||||
Non-current liabilities | -4 | |||||||
Consideration paid | 91 | |||||||
Pilot & TVKiK | Customer base | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 22 | |||||||
Tascom | ||||||||
Business acquisitions | ||||||||
Percentage of ownership acquired | 100.00% | |||||||
Purchase price allocation | ||||||||
Current assets | 489 | |||||||
Property, plant and equipment | 586 | |||||||
Goodwill | 1,083 | |||||||
Other non-current assets | 188 | |||||||
Current liabilities | -800 | |||||||
Non-current liabilities | -107 | |||||||
Contingent consideration | -170 | |||||||
Consideration paid | 1,437 | |||||||
Provision for tax liabilities and related indemnification asset | 236 | |||||||
Reduction in provision for tax liabilities and related indemnification asset | 43 | 43 | ||||||
Aggregate capped amount of contingent consideration | 400 | |||||||
Contingent consideration paid | 170 | 170 | ||||||
Tascom | Customer base | ||||||||
Purchase price allocation | ||||||||
Finite-lived intangible assets | 168 |
OPERATIONS_IN_UZBEKISTAN_Detai
OPERATIONS IN UZBEKISTAN (Details) (RUB) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 2 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2012 | Aug. 07, 2012 | Jul. 17, 2012 | Dec. 31, 2014 | Jan. 14, 2013 | Nov. 08, 2012 | Sep. 17, 2012 | Dec. 31, 2012 | Oct. 31, 2012 | Sep. 24, 2014 |
item | item | item | item | |||||||||
Impairment loss of long-lived assets | ||||||||||||
Impairment of intangible assets | 0 | |||||||||||
Uzdunrobita | ||||||||||||
OPERATIONS IN UZBEKISTAN | ||||||||||||
Liability recorded | 12,706 | 12,706 | ||||||||||
Number of auctions were set and held | 2 | |||||||||||
Impairment loss of long-lived assets | ||||||||||||
Goodwill | 3,523 | |||||||||||
Total impairment loss related to goodwill and long-lived assets | 20,037 | |||||||||||
Uzdunrobita | Uzbekis-tan | ||||||||||||
Impairment loss of long-lived assets | ||||||||||||
Goodwill | 3,523 | |||||||||||
Total impairment loss related to goodwill and long-lived assets | 20,037 | |||||||||||
Uzdunrobita | Property, plant and equipment. | Uzbekis-tan | ||||||||||||
Impairment loss of long-lived assets | ||||||||||||
Property, plant and equipment and intangibles | 8,438 | |||||||||||
Uzdunrobita | Licenses | Uzbekis-tan | ||||||||||||
Impairment loss of long-lived assets | ||||||||||||
Impairment of intangible assets | 2,709 | |||||||||||
Uzdunrobita | Rights to use radio frequencies | Uzbekis-tan | ||||||||||||
Impairment loss of long-lived assets | ||||||||||||
Impairment of intangible assets | 2,523 | |||||||||||
Uzdunrobita | Numbering capacity | Uzbekis-tan | ||||||||||||
Impairment loss of long-lived assets | ||||||||||||
Impairment of intangible assets | 1,190 | |||||||||||
Uzdunrobita | Software and other intangible assets | Uzbekis-tan | ||||||||||||
Impairment loss of long-lived assets | ||||||||||||
Impairment of intangible assets | 1,654 | |||||||||||
Uzdunrobita | Temporary suspension of the operating license | ||||||||||||
OPERATIONS IN UZBEKISTAN | ||||||||||||
Period of license suspension | 10 days | |||||||||||
Extended period of license suspension | 3 months | |||||||||||
Number of regional antimonopoly departments that held hearings | 14 | |||||||||||
Amount of claim | 2,558 | |||||||||||
Amount of claim as reduced by antimonopoly regulator | 416 | |||||||||||
Uzdunrobita | Additional tax audit | ||||||||||||
OPERATIONS IN UZBEKISTAN | ||||||||||||
Amount of claim | 28,776 | |||||||||||
Amount of claim as reduced by antimonopoly regulator | 21,390 | |||||||||||
Uzdunrobita | Criminal court judgment against employees | ||||||||||||
OPERATIONS IN UZBEKISTAN | ||||||||||||
Amount of claim | 18,375 | |||||||||||
Number of employees against whom criminal court has issued judgment | 4 | |||||||||||
Number of installments over which claim amount would be paid | 8 months | |||||||||||
Number of installments paid | 2 | |||||||||||
Installments paid, amount | 242 | 4,584 | ||||||||||
Uzdunrobita | Tax and antimonopoly claims | ||||||||||||
OPERATIONS IN UZBEKISTAN | ||||||||||||
Amount of claim as reduced by antimonopoly regulator | 201 | |||||||||||
UMS | ||||||||||||
OPERATIONS IN UZBEKISTAN | ||||||||||||
Ownership interest in equity investment (as a percent) | 50.01% | 50.01% | ||||||||||
Fair value of equity investment | 9,062 |
OPERATIONS_IN_UZBEKISTAN_Detai1
OPERATIONS IN UZBEKISTAN (Details 2) (RUB) | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 24, 2014 |
Results of discontinued operations | ||||
Income / (loss) from discontinued operations, net of tax | 3,733 | -32,846 | ||
Purchase price allocation | ||||
Gain from reentrance into Uzbekistan | -6,734 | |||
Uzdunrobita | ||||
Results of discontinued operations | ||||
Total revenues | 8,357 | |||
Income / (loss) before income tax | 1,109 | -34,171 | ||
Income tax (expense) / benefit | -1,058 | 1,325 | ||
Gain on disposal, net of tax | 3,682 | |||
Income / (loss) from discontinued operations, net of tax | 3,733 | -32,846 | ||
UMS | ||||
Purchase price allocation | ||||
Current assets | 26 | |||
Property, plant and equipment | 3,848 | |||
Other intangible assets | 5,161 | |||
Other non-current assets | 1,327 | |||
Current liabilities | -30 | |||
Non-current liabilities | -25 | |||
Non-controlling interest | -3,573 | |||
Gain from reentrance into Uzbekistan | -6,734 | |||
Discount rate (as a percent) | 24.10% | |||
Fair value of non-controlling interest | ||||
Fair Value Inputs, Discount Rate | 24.10% | |||
Price per minute of voice services | 0.56 |
POLITICAL_AND_ECONOMIC_CRISIS_1
POLITICAL AND ECONOMIC CRISIS IN UKRAINE (Details) (RUB) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Ukrainian bank | |
Political And Economic Crisis In Ukraine Line Items | |
Current accounts and deposits | 21,203 |
JSC Delta Bank | |
Political And Economic Crisis In Ukraine Line Items | |
Current accounts and deposits | 5,072 |
Interest on deposits | 66 |
CASH_AND_CASH_EQUIVALENTS_Deta
CASH AND CASH EQUIVALENTS (Details) (RUB) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Cash and cash equivalents | |||
Total cash and cash equivalents | 61,410 | 30,612 | 21,603 |
Russian Ruble | |||
Cash and cash equivalents | |||
Current accounts | 9,767 | 5,900 | |
Deposit accounts | 19,272 | 14,215 | |
U.S. Dollar | |||
Cash and cash equivalents | |||
Current accounts | 11,412 | 1,336 | |
Deposit accounts | 7,404 | 7,503 | |
Euro | |||
Cash and cash equivalents | |||
Current accounts | 3,579 | 395 | |
Deposit accounts | 1,901 | 136 | |
Hryvna | |||
Cash and cash equivalents | |||
Current accounts | 1,471 | 87 | |
Deposit accounts | 4,973 | 276 | |
Uzbek som | |||
Cash and cash equivalents | |||
Current accounts | 341 | ||
Turkmenian manat | |||
Cash and cash equivalents | |||
Current accounts | 1,162 | 697 | |
Armenian dram | |||
Cash and cash equivalents | |||
Current accounts | 72 | 67 | |
Deposit accounts | 56 |
SHORTTERM_INVESTMENTS_Details
SHORT-TERM INVESTMENTS (Details) (RUB) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Short-term investments | ||
Total short-term investments | 9,849 | 14,633 |
Loans receivable | Mr. P. Fattouche and Mr. M. Fattouche | ||
Short-term investments | ||
Annual interest rate (as a percent) | 6.00% | |
Short-term investments - held to maturity | 5,533 | |
Loans receivable | Navigation Information Systems | ||
Short-term investments | ||
Annual interest rate, lowest rate (as a percent) | 8.50% | |
Annual interest rate, highest rate (as a percent) | 1000.00% | |
Short-term investments - held to maturity | 132 | |
Loans receivable | Moscow Business Incubator (MBI), a subsidiary of Sistema | ||
Short-term investments | ||
Annual interest rate (as a percent) | 10.50% | |
Short-term investments - held to maturity | 52 | |
Deposits | ||
Short-term investments | ||
Annual interest rate, lowest rate (as a percent) | 4.00% | 4.20% |
Annual interest rate, highest rate (as a percent) | 1600.00% | 14.00% |
Short-term investments - held to maturity | 3,534 | 5,377 |
Sistema Notes 2016 (series 04) | ||
Short-term investments | ||
Annual interest rate (as a percent) | 7.65% | |
Short-term investments - available for sale | 534 | |
Sistema International Funding S.A. Bonds due 2019 | ||
Short-term investments | ||
Annual interest rate (as a percent) | 6.95% | |
Short-term investments - available for sale | 42 | |
Deposits at MTS Bank | ||
Short-term investments | ||
Annual interest rate (as a percent) | 8.70% | |
Short-term investments - held to maturity | 5,081 | |
Mutual investment fund "Reservnyi", managed by "DIK" | ||
Short-term investments | ||
Short-term investments - available for sale | 4,154 | |
Other loans | ||
Short-term investments | ||
Short-term investments - held to maturity | 22 | 21 |
TRADE_RECEIVABLES_NET_Details
TRADE RECEIVABLES, NET (Details) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Trade receivables, net | |||
Allowance for doubtful accounts | -2,165 | -3,753 | |
Trade receivables, net | 32,966 | 34,554 | |
Allowance for doubtful accounts receivable | |||
Movement in valuation allowances | |||
Balance, beginning of the year | 3,753 | 3,461 | 3,122 |
Allowance for doubtful accounts charge | 2,933 | 3,366 | 2,257 |
Accounts receivable written off | -4,521 | -3,074 | -1,918 |
Balance, end of the year | 2,165 | 3,753 | 3,461 |
Roaming | |||
Trade receivables, net | |||
Trade receivables, gross | 13,892 | 15,875 | |
Subscribers | |||
Trade receivables, net | |||
Trade receivables, gross | 10,722 | 12,548 | |
Interconnect | |||
Trade receivables, net | |||
Trade receivables, gross | 3,802 | 2,847 | |
Dealers | |||
Trade receivables, net | |||
Trade receivables, gross | 1,931 | 2,127 | |
Other | |||
Trade receivables, net | |||
Trade receivables, gross | 4,784 | 4,910 |
INVENTORY_AND_SPARE_PARTS_Deta
INVENTORY AND SPARE PARTS (Details) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INVENTORY AND SPARE PARTS | |||
Handsets and accessories | 5,971 | 7,436 | |
SIM cards and prepaid phone cards | 897 | 395 | |
Spare parts for telecommunication equipment | 301 | 305 | |
Advertising and other materials | 341 | 362 | |
Total inventory and spare parts | 7,510 | 8,498 | |
Obsolescence expense | 357 | 660 | 759 |
DISPOSAL_GROUP_HELD_FOR_SALE_D
DISPOSAL GROUP HELD FOR SALE (Details) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
Oct. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2014 | Feb. 15, 2015 | Feb. 28, 2015 | Apr. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2015 | Dec. 31, 2013 | |
EUR (€) | RUB | RUB | Rent-Nedvizhimost | Rent-Nedvizhimost | Business-Nedvizhimost | Business-Nedvizhimost | Business-Nedvizhimost | Business-Nedvizhimost | |
item | Subsequent Event | Subsequent Event | RUB | Subsequent Event | |||||
RUB | |||||||||
Schedule of Deconsolidation Wholly Owned Subsidiary Parent Ownership Interest Effects of Changes Net [Line Items] | |||||||||
Ownership interest sold (as a percent) | 51.00% | 49.00% | 51.00% | 51.00% | |||||
Proceeds from sales stake | 3,200,000,000 | 4,300,000,000 | |||||||
Proceeds from sales stake in the form of debt | 3,800,000,000 | ||||||||
Stated interest rate (as percent) | 12.00% | ||||||||
Ownership interest after sale of ownership | 49.00% | 49.00% | |||||||
Current assets | 238,000,000 | ||||||||
Non-current assets | 1,766,000,000 | ||||||||
Assets related to disposal group held for sale | 2,004,000,000 | ||||||||
Current liabilities | 187,000,000 | ||||||||
Non-current liabilities | 40,000,000 | ||||||||
Liabilities related to disposal group held for sale | 227,000,000 | ||||||||
Disposal of network equipment | |||||||||
Number of private investors tendered for disposal of network equipment | 2 | 2 | |||||||
Proceeds from disposal of network equipment | 17,700,000 | 922,000,000 | |||||||
Gain on sale of network equipment | 317,000,000 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net book value of property, plant and equipment | |||
Property, plant and equipment, at cost | 570,374 | 516,613 | |
Accumulated depreciation (including leased assets of 793 and 557, respectively) | -313,623 | -293,389 | |
Property, plant and equipment, net | 299,479 | 270,660 | |
Leased assets, at cost | 6,500 | 970 | |
Accumulated depreciation, leased assets | 438 | 793 | |
Depreciation expense | 58,511 | 58,599 | 54,766 |
Depreciation of assets recorded under capital leases obligations | 509 | 276 | 288 |
Network, base station equipment and related leasehold improvements | |||
Net book value of property, plant and equipment | |||
Property, plant and equipment, at cost | 499,101 | 445,857 | |
Leased assets, at cost | 6,427 | 0 | |
Network, base station equipment and related leasehold improvements | Minimum | |||
Net book value of property, plant and equipment | |||
Useful lives, years | 5 years | ||
Network, base station equipment and related leasehold improvements | Maximum | |||
Net book value of property, plant and equipment | |||
Useful lives, years | 17 years | ||
Office equipment, computers and other | |||
Net book value of property, plant and equipment | |||
Property, plant and equipment, at cost | 43,640 | 42,121 | |
Office equipment, computers and other | Minimum | |||
Net book value of property, plant and equipment | |||
Useful lives, years | 3 years | ||
Office equipment, computers and other | Maximum | |||
Net book value of property, plant and equipment | |||
Useful lives, years | 15 years | ||
Buildings and related leasehold improvements | |||
Net book value of property, plant and equipment | |||
Property, plant and equipment, at cost | 24,362 | 25,496 | |
Leased assets, at cost | 0 | 28 | |
Buildings and related leasehold improvements | Minimum | |||
Net book value of property, plant and equipment | |||
Useful lives, years | 20 years | ||
Buildings and related leasehold improvements | Maximum | |||
Net book value of property, plant and equipment | |||
Useful lives, years | 59 years | ||
Vehicles | |||
Net book value of property, plant and equipment | |||
Property, plant and equipment, at cost | 3,271 | 3,139 | |
Leased assets, at cost | 73 | 942 | |
Vehicles | Minimum | |||
Net book value of property, plant and equipment | |||
Useful lives, years | 3 years | ||
Vehicles | Maximum | |||
Net book value of property, plant and equipment | |||
Useful lives, years | 7 years | ||
Construction in progress and equipment for installation | |||
Net book value of property, plant and equipment | |||
Property, plant and equipment, at cost | 42,728 | 47,436 |
LICENSES_Details
LICENSES (Details) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other intangible assets | |||
Amortization expense | 598 | 544 | 662 |
Licenses | |||
Other intangible assets | |||
Licenses, at cost | 10,724 | 6,396 | |
Accumulated amortization | -5,226 | -3,194 | |
Licenses, net | 5,498 | 3,202 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2015 | 970 | ||
2016 | 973 | ||
2017 | 970 | ||
2018 | 970 | ||
2019 | 849 | ||
Thereafter | 766 | ||
Total | 5,498 | ||
Armenia | Licenses | |||
Other intangible assets | |||
Licenses, at cost | 8,782 | 5,982 | |
Russia | Licenses | |||
Other intangible assets | |||
Licenses, at cost | 1,825 | 291 | |
Weighted-average period in for the next renewal of licenses | 4 years | ||
Ukraine | Licenses | |||
Other intangible assets | |||
Licenses, at cost | 117 | 123 | |
Turkmenistan | Licenses | |||
Other intangible assets | |||
Term of license | 3 years |
GOODWILL_Details
GOODWILL (Details) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Change in net carrying value of goodwill by reportable segment | |||
Gross amount of goodwill, balance at the beginning of the period | 37,417 | 37,777 | |
Accumulated impairment loss, balance at the beginning of the period | -4,989 | -1,466 | |
Net amount of goodwill, balance at the beginning of the period | 32,428 | 36,311 | |
Acquisitions (Note 3) | 1,630 | ||
Disposals | -23 | ||
Currency translation adjustment | 1,977 | -299 | |
Gross amount of goodwill, balance at the end of the period | 34,170 | 37,417 | 37,777 |
Accumulated impairment loss, balance at the end of the period | -1,466 | -4,989 | -1,466 |
Net amount of goodwill, balance at the end of the period | 32,704 | 32,428 | 36,311 |
Russia Convergent | |||
Change in net carrying value of goodwill by reportable segment | |||
Gross amount of goodwill, balance at the beginning of the period | 28,668 | 30,275 | |
Accumulated impairment loss, balance at the beginning of the period | -1,466 | -1,466 | |
Net amount of goodwill, balance at the beginning of the period | 27,202 | 28,809 | |
Acquisitions (Note 3) | 1,630 | ||
Disposals | -23 | ||
Gross amount of goodwill, balance at the end of the period | 28,645 | 28,668 | 30,275 |
Accumulated impairment loss, balance at the end of the period | -1,466 | -1,466 | -1,466 |
Net amount of goodwill, balance at the end of the period | 27,179 | 27,202 | 28,809 |
Moscow fixed line | |||
Change in net carrying value of goodwill by reportable segment | |||
Gross amount of goodwill, balance at the beginning of the period | 1,083 | ||
Net amount of goodwill, balance at the beginning of the period | 1,083 | ||
Gross amount of goodwill, balance at the end of the period | 1,083 | 1,083 | 1,083 |
Net amount of goodwill, balance at the end of the period | 1,083 | 1,083 | 1,083 |
Ukraine | |||
Change in net carrying value of goodwill by reportable segment | |||
Gross amount of goodwill, balance at the beginning of the period | 162 | 151 | |
Net amount of goodwill, balance at the beginning of the period | 162 | 151 | |
Currency translation adjustment | -23 | -12 | |
Gross amount of goodwill, balance at the end of the period | 174 | 162 | 151 |
Net amount of goodwill, balance at the end of the period | 174 | 162 | 151 |
Uzbekis-tan | |||
Change in net carrying value of goodwill by reportable segment | |||
Gross amount of goodwill, balance at the end of the period | 3,523 | ||
Accumulated impairment loss, balance at the end of the period | -3,523 | ||
Other | |||
Change in net carrying value of goodwill by reportable segment | |||
Gross amount of goodwill, balance at the beginning of the period | 3,981 | 6,268 | |
Net amount of goodwill, balance at the beginning of the period | 3,981 | 6,268 | |
Currency translation adjustment | 2,000 | -287 | |
Gross amount of goodwill, balance at the end of the period | 4,268 | 3,981 | 6,268 |
Net amount of goodwill, balance at the end of the period | 4,268 | 3,981 | 6,268 |
OTHER_INTANGIBLE_ASSETS_Detail
OTHER INTANGIBLE ASSETS (Details) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other intangible assets | |||
Amortization expense | 598 | 544 | 662 |
Licenses | |||
Amortized intangible assets | |||
Amortized intangible assets, Accumulated amortization | -5,226 | -3,194 | |
Total | 5,498 | ||
Other intangible assets | |||
Amortized intangible assets, Accumulated amortization | -5,226 | -3,194 | |
Total other intangible assets, Net carrying value | 5,498 | 3,202 | |
Estimated amortization expense in the year ended December 31, | |||
2015 | 970 | ||
2016 | 973 | ||
2017 | 970 | ||
2018 | 970 | ||
2019 | 849 | ||
Thereafter | 766 | ||
Total | 5,498 | ||
Licenses | Minimum | |||
Amortized intangible assets | |||
Useful lives | 3 years | ||
Licenses | Maximum | |||
Amortized intangible assets | |||
Useful lives | 15 years | ||
Other intangible assets | |||
Amortized intangible assets | |||
Amortized intangible assets, Accumulated amortization | -65,785 | -58,153 | |
Total | 54,592 | ||
Other intangible assets | |||
Total other intangible assets, Gross carrying value | 122,756 | 96,576 | |
Amortized intangible assets, Accumulated amortization | -65,785 | -58,153 | |
Total other intangible assets, Net carrying value | 56,971 | 38,423 | |
Amortization expense | 15,601 | 14,110 | 12,482 |
Estimated amortization expense in the year ended December 31, | |||
2015 | 16,901 | ||
2016 | 13,740 | ||
2017 | 9,601 | ||
2018 | 5,036 | ||
2019 | 2,301 | ||
Thereafter | 7,013 | ||
Total | 54,592 | ||
Intangible assets excluding licensing agreement prepayments | |||
Amortized intangible assets | |||
Amortized intangible assets, Gross carrying value | 120,377 | 96,184 | |
Amortized intangible assets, Accumulated amortization | -65,785 | -58,153 | |
Total | 54,592 | 38,031 | |
Other intangible assets | |||
Amortized intangible assets, Accumulated amortization | -65,785 | -58,153 | |
Estimated amortization expense in the year ended December 31, | |||
Total | 54,592 | 38,031 | |
Billing and telecommunication software | |||
Amortized intangible assets | |||
Useful lives | 4 years | 4 years | |
Amortized intangible assets, Gross carrying value | 67,238 | 53,225 | |
Amortized intangible assets, Accumulated amortization | -41,853 | -37,265 | |
Total | 25,385 | 15,960 | |
Other intangible assets | |||
Amortized intangible assets, Accumulated amortization | -41,853 | -37,265 | |
Estimated amortization expense in the year ended December 31, | |||
Total | 25,385 | 15,960 | |
Billing and telecommunication software | Minimum | |||
Amortized intangible assets | |||
Useful lives | 1 year | ||
Billing and telecommunication software | Maximum | |||
Amortized intangible assets | |||
Useful lives | 20 years | ||
Office software | |||
Amortized intangible assets | |||
Amortized intangible assets, Gross carrying value | 12,713 | 9,309 | |
Amortized intangible assets, Accumulated amortization | -5,695 | -3,582 | |
Total | 7,018 | 5,727 | |
Other intangible assets | |||
Amortized intangible assets, Accumulated amortization | -5,695 | -3,582 | |
Estimated amortization expense in the year ended December 31, | |||
Total | 7,018 | 5,727 | |
Office software | Minimum | |||
Amortized intangible assets | |||
Useful lives | 1 year | ||
Office software | Maximum | |||
Amortized intangible assets | |||
Useful lives | 10 years | ||
Rights to use radio frequencies | |||
Amortized intangible assets | |||
Amortized intangible assets, Gross carrying value | 11,444 | 9,850 | |
Amortized intangible assets, Accumulated amortization | -5,684 | -4,905 | |
Total | 5,760 | 4,945 | |
Other intangible assets | |||
Amortized intangible assets, Accumulated amortization | -5,684 | -4,905 | |
Estimated amortization expense in the year ended December 31, | |||
Total | 5,760 | 4,945 | |
Rights to use radio frequencies | Minimum | |||
Amortized intangible assets | |||
Useful lives | 1 year | ||
Rights to use radio frequencies | Maximum | |||
Amortized intangible assets | |||
Useful lives | 15 years | ||
Customer base | |||
Amortized intangible assets | |||
Amortized intangible assets, Gross carrying value | 7,690 | 8,757 | |
Amortized intangible assets, Accumulated amortization | -3,166 | -3,622 | |
Total | 4,524 | 5,135 | |
Other intangible assets | |||
Amortized intangible assets, Accumulated amortization | -3,166 | -3,622 | |
Estimated amortization expense in the year ended December 31, | |||
Total | 4,524 | 5,135 | |
Customer base | Minimum | |||
Amortized intangible assets | |||
Useful lives | 4 years | ||
Customer base | Maximum | |||
Amortized intangible assets | |||
Useful lives | 31 years | ||
Accounting software | |||
Amortized intangible assets | |||
Amortized intangible assets, Gross carrying value | 3,637 | 4,330 | |
Amortized intangible assets, Accumulated amortization | -2,641 | -3,021 | |
Total | 996 | 1,309 | |
Other intangible assets | |||
Amortized intangible assets, Accumulated amortization | -2,641 | -3,021 | |
Estimated amortization expense in the year ended December 31, | |||
Total | 996 | 1,309 | |
Accounting software | Minimum | |||
Amortized intangible assets | |||
Useful lives | 1 year | ||
Accounting software | Maximum | |||
Amortized intangible assets | |||
Useful lives | 5 years | ||
Numbering capacity | |||
Amortized intangible assets | |||
Amortized intangible assets, Gross carrying value | 3,746 | 3,623 | |
Amortized intangible assets, Accumulated amortization | -3,508 | -2,849 | |
Total | 238 | 774 | |
Other intangible assets | |||
Amortized intangible assets, Accumulated amortization | -3,508 | -2,849 | |
Estimated amortization expense in the year ended December 31, | |||
Total | 238 | 774 | |
Numbering capacity | Minimum | |||
Amortized intangible assets | |||
Useful lives | 2 years | ||
Numbering capacity | Maximum | |||
Amortized intangible assets | |||
Useful lives | 15 years | ||
Credit line | |||
Amortized intangible assets | |||
Amortized intangible assets, Gross carrying value | 3,238 | ||
Total | 3,238 | ||
Estimated amortization expense in the year ended December 31, | |||
Total | 3,238 | ||
Credit line | Minimum | |||
Amortized intangible assets | |||
Useful lives | 1 year | ||
Credit line | Maximum | |||
Amortized intangible assets | |||
Useful lives | 3 years | ||
Other intangibles | |||
Amortized intangible assets | |||
Amortized intangible assets, Gross carrying value | 10,671 | 7,090 | |
Amortized intangible assets, Accumulated amortization | -3,238 | -2,909 | |
Total | 7,433 | 4,181 | |
Other intangible assets | |||
Amortized intangible assets, Accumulated amortization | -3,238 | -2,909 | |
Estimated amortization expense in the year ended December 31, | |||
Total | 7,433 | 4,181 | |
Other intangibles | Minimum | |||
Amortized intangible assets | |||
Useful lives | 1 year | ||
Other intangibles | Maximum | |||
Amortized intangible assets | |||
Useful lives | 15 years | ||
Prepayments for intangible assets | |||
Amortized intangible assets | |||
Amortized intangible assets, Gross carrying value | 2,379 | 392 | |
Total | 2,379 | 392 | |
Estimated amortization expense in the year ended December 31, | |||
Total | 2,379 | 392 |
INVESTMENTS_IN_AND_ADVANCES_TO2
INVESTMENTS IN AND ADVANCES TO ASSOCIATES (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Apr. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 | Sep. 30, 2012 | Dec. 31, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Sep. 30, 2013 | Apr. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
RUB | RUB | RUB | MTS Belarus | MTS Belarus | MTS Bank | MTS Bank | MTS Bank | MTS Bank | MTS Bank | MTS Bank | OZON Holdings Limited | OZON Holdings Limited | OZON Holdings Limited | Business-Nedvizhimost | Business-Nedvizhimost | Business-Nedvizhimost | Business-Nedvizhimost | Intellect Telecom | Intellect Telecom | Stream | Stream | |
RUB | RUB | RUB | RUB | RUB | RUB | RUB | Loans receivable | RUB | USD ($) | RUB | RUB | RUB | RUB | RUB | RUB | RUB | RUB | |||||
RUB | ||||||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||||||
Equity investment | 6,033 | 5,013 | 4,858 | 4,858 | 5,476 | 2,708 | 410 | 78 | 163 | 332 | 231 | |||||||||||
Advances to associates | 2,100 | 2,100 | 2,100 | 168 | ||||||||||||||||||
Total investments in and advances to associates | 16,277 | 13,393 | ||||||||||||||||||||
Equity method ownership interest acquired | 25.10% | 10.82% | 10.82% | |||||||||||||||||||
Amount of acquired equity method investment | 3,639 | 5,089 | 3,639 | 1,266 | 75 | 2,702 | ||||||||||||||||
Ownership interest in equity investment (as a percent) | 27.00% | 26.30% | ||||||||||||||||||||
Term of subordinated loan | 10 years | |||||||||||||||||||||
Amount of subordinated loan provided | 2,100 | |||||||||||||||||||||
Interest rate, subordinated loan provided (as a percent) | 8.80% | |||||||||||||||||||||
Impairment on investment | 3,225 | |||||||||||||||||||||
Ownership interest sold (as a percent) | 49.00% | 51.00% | ||||||||||||||||||||
Proceeds from sale of stake | 508 | 3,100 | ||||||||||||||||||||
Interest rate of proceeds of the sale payable in arrears | 9.00% | |||||||||||||||||||||
Equity-method goodwill | 739 | |||||||||||||||||||||
Financial position and results of operations | ||||||||||||||||||||||
Total current assets | 9,022 | 5,867 | 7,888 | 313 | 237 | 140 | 974 | 485 | ||||||||||||||
Total non-current assets | 8,042 | 6,539 | 2,962 | 749 | 458 | 483 | 91 | 214 | ||||||||||||||
Total assets | 17,064 | 12,406 | 215,070 | 215,070 | 224,446 | 10,850 | 1,062 | 695 | 623 | 1,065 | 699 | |||||||||||
Total current liabilities | -5,126 | -3,161 | -3,640 | -181 | -506 | -267 | -341 | -206 | ||||||||||||||
Total non-current liabilities | -168 | -377 | -50 | -17 | -14 | |||||||||||||||||
Total liabilities | -5,294 | -3,161 | -181,724 | -181,724 | -201,077 | -4,017 | -231 | -523 | -281 | -341 | -206 | |||||||||||
Noncontrolling interest | -4,061 | -4,061 | -1,924 | |||||||||||||||||||
Revenue | -17,639 | -14,310 | -11,097 | 196 | -13 | -198 | -357 | -1,280 | -738 | |||||||||||||
Gross profit | -12,910 | -10,271 | -2,369 | 90 | -8 | -4 | -66 | -566 | -253 | |||||||||||||
Total interest income | -25,107 | -18,266 | ||||||||||||||||||||
Total interest expense | 9,868 | 7,737 | ||||||||||||||||||||
Operating loss/(profit) | 14,915 | -1,036 | ||||||||||||||||||||
Net loss/(income) | -7,466 | -4,649 | 12,585 | -868 | 2,494 | 17 | -5 | 170 | 81 | -226 | -9 | |||||||||||
Total earnings or losses of associates | -2,880 | 2,472 | 869 |
OTHER_INVESTMENTS_Details
OTHER INVESTMENTS (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | 31-May-14 | 31-May-14 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | RUB | RUB | Mr. P. Fattouche and Mr. M. Fattouche | Mr. P. Fattouche and Mr. M. Fattouche | Mr. P. Fattouche and Mr. M. Fattouche | Mr. P. Fattouche and Mr. M. Fattouche | Mr. P. Fattouche and Mr. M. Fattouche | Mr. P. Fattouche and Mr. M. Fattouche | Deposits. | Loans receivable | Loans receivable | Loan Participation Notes EMIS BV | Loan Participation Notes EMIS BV | Loan Participation Notes EMIS BV | Loan Participation Notes EMIS BV | Loan Participation Notes EMIS BV | Loan Participation Notes EMIS BV | Promissory notes | Promissory notes | Investments in ordinary shares | Investments in ordinary shares | Other investments. | Other investments. |
RUB | RUB | RUB | USD ($) | RUB | K-Telecom | RUB | Mr. P. Fattouche and Mr. M. Fattouche | Mr. P. Fattouche and Mr. M. Fattouche | USD ($) | RUB | RUB | USD ($) | RUB | Sistema | Sistema | RUB | RUB | RUB | RUB | ||||
RUB | RUB | RUB | |||||||||||||||||||||
Other investments | |||||||||||||||||||||||
Annual interest rate, high end of range (as a percent) | 6.25% | ||||||||||||||||||||||
Annual interest rate, low end of range (as a percent) | 6.15% | ||||||||||||||||||||||
Annual interest rate (as a percent) | 6.00% | 6.00% | 0.00% | ||||||||||||||||||||
Other investments - Held to maturity | 13,671 | 2,946 | 699 | 618 | 618 | ||||||||||||||||||
Other investments | 14,969 | 4,392 | 125 | 125 | 555 | 4 | |||||||||||||||||
Loan granted | 90 | 2,777 | 21.3 | 703 | |||||||||||||||||||
Percentage of noncontrolling interest | 20.00% | ||||||||||||||||||||||
Interest accrued | 212.8 | 172.7 | 174.1 | ||||||||||||||||||||
Proceeds from sale of other investments | 22.3 | 764 | |||||||||||||||||||||
Realized interest sold along with the investments | $1 | 34 |
BORROWINGS_Details
BORROWINGS (Details) (RUB) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Nov. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
item | ||||
Notes | ||||
Plus: unamortized premium | 3 | 3 | 8 | |
Total notes | 106,477 | 106,477 | 102,744 | |
Less: current portion | -22,701 | -22,701 | -17,462 | |
Total notes, long-term | 83,776 | 83,776 | 85,282 | |
Borrowing costs and interest capitalized | ||||
Fair value | 96,222 | 96,222 | ||
Unclosed REPO transactions | ||||
Total | 3,425 | 3,425 | ||
MTS International Notes due 2020 | ||||
Notes | ||||
Interest rate (as a percent) | 8.63% | 8.63% | ||
Total notes | 35,057 | 35,057 | 24,547 | |
Borrowing costs and interest capitalized | ||||
% of par | 95.85% | 95.85% | ||
Fair value | 33,602 | 33,602 | ||
MTS International Notes due 2023 | ||||
Notes | ||||
Interest rate (as a percent) | 5.00% | 5.00% | ||
Total notes | 26,920 | 26,920 | 16,365 | |
Borrowing costs and interest capitalized | ||||
% of par | 75.00% | 75.00% | ||
Fair value | 20,190 | 20,190 | ||
MTS OJSC Notes due 2020 | ||||
Notes | ||||
Interest rate (as a percent) | 8.15% | 8.15% | ||
Total notes | 15,000 | 15,000 | 15,000 | |
Borrowing costs and interest capitalized | ||||
% of par | 96.33% | 96.33% | ||
Fair value | 14,450 | 14,450 | ||
MTS OJSC Notes due 2014 | ||||
Notes | ||||
Interest rate (as a percent) | 7.60% | 7.60% | ||
Total notes | 13,619 | |||
MTS OJSC Notes due 2017 | ||||
Notes | ||||
Interest rate (as a percent) | 8.70% | 8.70% | ||
Total notes | 10,000 | 10,000 | 10,000 | |
Borrowing costs and interest capitalized | ||||
% of par | 90.10% | 90.10% | ||
Fair value | 9,010 | 9,010 | ||
MTS OJSC Notes due 2023 | ||||
Notes | ||||
Interest rate (as a percent) | 8.25% | 8.25% | ||
Total notes | 10,000 | 10,000 | 10,000 | |
Borrowing costs and interest capitalized | ||||
% of par | 100.19% | 100.19% | ||
Fair value | 10,019 | 10,019 | ||
MTS OJSC Notes due 2015 | ||||
Notes | ||||
Interest rate (as a percent) | 7.75% | 7.75% | ||
Total notes | 7,537 | 7,537 | 7,537 | |
Borrowing costs and interest capitalized | ||||
% of par | 96.81% | 96.81% | ||
Fair value | 7,297 | 7,297 | ||
Unclosed REPO transactions | ||||
Number of notes | 2,420,000 | |||
Due Amount | 1,670 | 1,670 | ||
Unrealized Premium | -5 | -5 | ||
Total | 1,665 | 1,665 | ||
MTS OJSC Notes due 2016 | ||||
Notes | ||||
Interest rate (as a percent) | 8.75% | 8.75% | ||
Total notes | 1,788 | 1,788 | 1,788 | |
Borrowing costs and interest capitalized | ||||
% of par | 85.30% | 85.30% | ||
Fair value | 1,525 | 1,525 | ||
MTS OJSC Notes due 2018 | ||||
Notes | ||||
Interest rate (as a percent) | 12.00% | 12.00% | ||
Total notes | 136 | 136 | 3,844 | |
Repurchase of MTS OJSC Notes | 3,710 | 3,710 | ||
Borrowing costs and interest capitalized | ||||
Stated interest rate before negotiated decrease (as a percent) | 12.00% | 7.50% | ||
% of par | 95.06% | 95.06% | ||
Fair value | 129 | 129 | ||
Unclosed REPO transactions | ||||
Number of notes | 2,928,358 | |||
Due Amount | 1,760 | 1,760 | ||
Total | 1,760 | 1,760 | ||
MTS OJSC Notes due 2015 (A series) | ||||
Notes | ||||
Interest rate (as a percent) | 0.67% | 0.67% | ||
Total notes | 12 | 12 | 12 | |
MTS OJSC Notes due 2015-2016 (B series) | ||||
Notes | ||||
Interest rate (as a percent) | 0.54% | 0.54% | ||
Total notes | 12 | 12 | 12 | |
MTS OJSC Notes due 2021-2022 (V series) | ||||
Notes | ||||
Interest rate (as a percent) | 0.25% | 0.25% | ||
Total notes | 12 | 12 | 12 |
BORROWINGS_Details_2
BORROWINGS (Details 2) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Bank loans | |||
Total bank loans and other debt | 176,519 | 116,356 | |
Less: current portion | -19,435 | -7,564 | |
Total bank loans and other debt, long-term | 157,084 | 108,792 | |
Borrowing costs and interest capitalized | |||
Capitalized interest cost | 1,460 | 1,942 | 1,792 |
Interest expense, net of amounts capitalized and amortization of debt issuance costs | 15,808 | 14,714 | 16,721 |
USD-Denominated Bank Loans | |||
Bank loans | |||
Total bank loans and other debt | 43,240 | 31,022 | |
USD-Denominated, Calyon, ING Bank N.V, Nordea Bank AB, Raiffeisen Zentralbank Osterreich AG, which will mature during in 2015-2020 | |||
Bank loans | |||
Total bank loans and other debt | 37,901 | 26,132 | |
Interest rate, base rate | LIBOR | ||
Interest rate added to base rate (as a percent) | 1.15% | ||
Interest rate (as a percent) | 1.51% | ||
USD-Denominated, Skandinavska Enskilda Banken AB, which will mature during in 2015-2017 | |||
Bank loans | |||
Total bank loans and other debt | 5,175 | 4,238 | |
Interest rate, base rate | LIBOR | ||
Effective interest rate, minimum (as a percent) | -0.59% | ||
Effective interest rate, maximum (as a percent) | 2.16% | ||
USD-Denominated, Skandinavska Enskilda Banken AB, which will mature during in 2015-2017 | Minimum | |||
Bank loans | |||
Interest rate added to base rate (as a percent) | 0.23% | ||
USD-Denominated, Skandinavska Enskilda Banken AB, which will mature during in 2015-2017 | Maximum | |||
Bank loans | |||
Interest rate added to base rate (as a percent) | 1.80% | ||
USD-Denominated, HSBC Bank plc and ING BHF Bank AG, which will mature during 2015 | |||
Bank loans | |||
Total bank loans and other debt | 394 | ||
Interest rate, base rate | LIBOR | ||
Interest rate added to base rate (as a percent) | 0.30% | ||
Interest rate (as a percent) | 0.66% | ||
USD-Denominated, Other maturing in 2015 | |||
Bank loans | |||
Total bank loans and other debt | 164 | 258 | |
Interest rate, base rate | - | ||
Effective interest rate, maximum (as a percent) | 15.00% | ||
EUR-Denominated Bank Loans | |||
Bank loans | |||
Total bank loans and other debt | 2,849 | 4,831 | |
EUR-Denominated, Bank of China, which will mature during 2015 | |||
Bank loans | |||
Total bank loans and other debt | 2,435 | ||
Interest rate, base rate | EURIBOR | ||
Interest rate added to base rate (as a percent) | 1.95% | ||
Interest rate (as a percent) | 2.12% | ||
EUR-Denominated, Credit Agricole Corporate Bank and BNP Paribas, which will mature during 2015-2018 | |||
Bank loans | |||
Total bank loans and other debt | 1,893 | 1,557 | |
Interest rate, base rate | EURIBOR | ||
Interest rate added to base rate (as a percent) | 1.65% | ||
Interest rate (as a percent) | 1.82% | ||
EUR-Denominated, LBBW, which will mature during 2015-2017 | |||
Bank loans | |||
Total bank loans and other debt | 956 | 839 | |
Interest rate, base rate | EURIBOR | ||
Interest rate added to base rate (as a percent) | 1.52% | ||
Interest rate (as a percent) | 1.69% | ||
RUB-Denominated Bank Loans | |||
Bank loans | |||
Total bank loans and other debt | 129,437 | 80,395 | |
Non-revolving credit line facilities, Sberbank maturing in 2015 - 2021 | |||
Bank loans | |||
Total bank loans and other debt | 125,000 | 80,000 | |
Effective interest rate, minimum (as a percent) | 8.45% | ||
Effective interest rate, maximum (as a percent) | 12.05% | ||
RUB 50 billion non-revolving credit line facilities, Sberbank maturing during 2018-2021 | |||
Bank loans | |||
Interest rate added to base rate (as a percent) | 16.00% | ||
RUB-Denominated, Notes in REPO | |||
Bank loans | |||
Total bank loans and other debt | 3,425 | ||
Effective interest rate, minimum (as a percent) | 19.36% | ||
RUB-Denominated, SMM | |||
Bank loans | |||
Total bank loans and other debt | 556 | ||
Effective interest rate, minimum (as a percent) | 0.00% | ||
Effective interest rate, maximum (as a percent) | 15.00% | ||
RUB-Denominated, Other, which will mature during 2015-2023 | |||
Bank loans | |||
Total bank loans and other debt | 456 | 395 | |
Interest rate, base rate | Various | ||
AMD-Denominated Bank Loans | |||
Bank loans | |||
Total bank loans and other debt | 176 | 108 | |
AMD-Denominated ASHIB | |||
Bank loans | |||
Total bank loans and other debt | 176 | 108 | |
Interest rate added to base rate (as a percent) | 13.00% | ||
UZS-Denominated Bank Loans | |||
Bank loans | |||
Total bank loans and other debt | 817 | ||
UZS-Denominated, Aloqabank | |||
Bank loans | |||
Total bank loans and other debt | 759 | ||
Interest rate added to base rate (as a percent) | 12.00% | ||
UZS-Denominated, Uzbektelecom | |||
Bank loans | |||
Total bank loans and other debt | 58 | ||
Interest rate added to base rate (as a percent) | 10.00% |
BORROWINGS_Details_3
BORROWINGS (Details 3) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
In Millions, unless otherwise specified | RUB | RUB | UZS-Denominated, Aloqabank | MTS International Notes due 2020 | MTS International Notes due 2020 | MTS International Notes due 2020 | MTS International Notes due 2023 | MTS International Notes due 2023 | RUB 50 billion non-revolving credit line facilities, Sberbank maturing during 2018-2021 | Available credit facilities, Citi Bank Europe maturing in 2024 | Available credit facilities, ING Bank Eurasia maturing in 2014 | Available credit facilities, Citibank | Notes. | Bank loans and other debt |
RUB | USD ($) | RUB | RUB | RUB | RUB | RUB | RUB | RUB | RUB | RUB | ||||
Compliance with covenants | ||||||||||||||
Amount of a judgment that the entity may be subject to before it may be considered to be in default of debt covenants, subject to certain exemptions and qualifications | $10 | 563 | ||||||||||||
Minimum number of days in which a judgment requiring payment in excess of stated thresholds may continue unsatisfied before the entity is determined to be in default of debt covenants, subject to certain exemptions and qualifications | 60 days | 60 days | ||||||||||||
Percentage of the principal amount at which the notes are redeemable due to a change of control | 101.00% | 101.00% | 101.00% | |||||||||||
Loans Payable to Bank | 176,519 | 116,356 | 759 | |||||||||||
Debt Instrument, Collateral Amount | 2,038 | |||||||||||||
Available credit facilities | ||||||||||||||
Repayment term | 182 days | |||||||||||||
Interest rate, description | MosPrime | |||||||||||||
Interest rate added to base rate (as a percent) | 12.00% | 16.00% | 0.90% | 1.50% | 1.50% | |||||||||
Available credit facilities, total | 44,378 | 25,000 | 16,878 | 2,500 | ||||||||||
Payments due in the year ended December 31, | ||||||||||||||
2015 | 22,701 | 19,435 | ||||||||||||
2016 | 1,788 | 33,821 | ||||||||||||
2017 | 10,000 | 39,937 | ||||||||||||
2018 | 10,000 | 28,527 | ||||||||||||
2019 | 31,695 | |||||||||||||
Thereafter | 61,988 | 23,104 | ||||||||||||
Total notes | 106,477 | 102,744 | 35,057 | 24,547 | 26,920 | 16,365 | ||||||||
Total bank loans and other debt | 176,519 | 116,356 | 759 |
CAPITAL_LEASE_OBLIGATION_Detai
CAPITAL LEASE OBLIGATION (Details) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets under capital leases | |||
Leased assets, at cost | 6,500 | 970 | |
Accumulated depreciation | -438 | -793 | |
Leased assets, net | 6,062 | 177 | |
Depreciation of assets recorded under capital leases obligations | 509 | 276 | 288 |
Interest expense | 340 | 182 | 135 |
Future minimum lease payments under capital leases together with the present value of the net minimum lease payments | |||
2015 | 1,119 | ||
2016 | 1,108 | ||
2017 | 1,153 | ||
2018 | 1,159 | ||
2019 | 1,159 | ||
Thereafter | 7,687 | ||
Total minimum lease payments (undiscounted) | 13,385 | ||
Less amount representing interest | -3,990 | ||
Present value of net minimum lease payments | 9,395 | ||
Less current portion of lease obligations | -538 | -38 | |
Non-current portion of lease obligations | 8,857 | 10 | |
Network and base station equipment | |||
Assets under capital leases | |||
Leased assets, at cost | 6,427 | ||
Future minimum lease payments under capital leases together with the present value of the net minimum lease payments | |||
Term of lease | 15 years | ||
Transponders | |||
Future minimum lease payments under capital leases together with the present value of the net minimum lease payments | |||
Term of lease | 12 years | ||
Vehicles | |||
Assets under capital leases | |||
Leased assets, at cost | 73 | 942 | |
Automobiles | |||
Future minimum lease payments under capital leases together with the present value of the net minimum lease payments | |||
Term of lease | 3 years | ||
Buildings | |||
Assets under capital leases | |||
Leased assets, at cost | 28 |
ASSET_RETIREMENT_OBLIGATIONS_D
ASSET RETIREMENT OBLIGATIONS (Details) (RUB) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Estimated present value of asset retirement obligations and change in liabilities | ||
Balance, beginning of the year | 2,743 | 2,763 |
Liabilities incurred in the current period | 73 | 303 |
Accretion expense | -251 | -97 |
Revisions in estimated cash flows | 26 | -453 |
Disposal of assets | -41 | |
Currency translation adjustment | -30 | 33 |
Balance, end of the year | 3,022 | 2,743 |
DEFERRED_CONNECTION_FEES_Detai
DEFERRED CONNECTION FEES (Details) (RUB) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Change in deferred connection fees | ||
Balance, beginning of the year | 3,649 | 3,817 |
Payments received and deferred during the year | 1,763 | 1,714 |
Amounts amortized and recognized as revenue during the year | -1,912 | -1,921 |
Currency translation adjustment | -63 | 39 |
Balance, end of the year | 3,437 | 3,649 |
Less: current portion | -1,677 | -1,604 |
Non-current portion | 1,760 | 2,045 |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details) (RUB) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair value of the derivative instruments designated as hedges | ||
Derivative instruments classified in other noncurrent assets | 21,944 | 1,837 |
Designated as hedges | ||
Fair value of the derivative instruments designated as hedges | ||
Derivative instruments classified in other noncurrent assets | 21,944 | 1,837 |
Derivative instruments, fair value of liabilities | -2,550 | -421 |
Designated as hedges | Interest rate swaps | ||
Fair value of the derivative instruments designated as hedges | ||
Variable interest rate for USD-and Euro- denominated bank loans (as a percent) | 0.12% | |
Derivative instruments classified in other noncurrent assets | 8 | 12 |
Derivative instruments classified in other long term liabilities | -522 | -389 |
Derivative instruments classified in other payables | -2,028 | -32 |
Designated as hedges | Cross-currency interest rate swaps | ||
Fair value of the derivative instruments designated as hedges | ||
Variable interest rate for USD-and Euro- denominated bank loans (as a percent) | 35.10% | |
Derivative instruments classified in other noncurrent assets | 21,936 | 1,825 |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 2) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 | 31-May-13 | 31-May-13 | 31-May-13 | Apr. 30, 2013 | Apr. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
RUB | RUB | RUB | HSBC credit facility granted to MTS OJSC in 2004 with an original maturity in November 2013 | HSBC credit facility granted to MTS OJSC in 2004 with an original maturity in November 2013 | Credit facility granted to MTS OJSC in 2005 with an original maturity in May 2014 | Credit facility granted to MTS OJSC in 2005 with an original maturity in May 2014 | HSBC credit facility granted to MTS OJSC in 2004 with an original maturity in October 2013 | HSBC credit facility granted to MTS OJSC in 2004 with an original maturity in October 2013 | HSBC credit facility granted to MTS OJSC in 2004 with an original maturity in September 2013 | HSBC credit facility granted to MTS OJSC in 2004 with an original maturity in September 2013 | Cash flow hedging | Cash flow hedging | Cash flow hedging | Cash flow hedging | Cash flow hedging | Cash flow hedging | Cash flow hedging | Cash flow hedging | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Cross-currency interest rate swaps | Cross-currency interest rate swaps | Cross-currency interest rate swaps | |
USD ($) | RUB | USD ($) | RUB | USD ($) | RUB | USD ($) | RUB | RUB | RUB | RUB | RUB | Unrealized gains / (losses) on derivatives | Designated as hedges | Designated as hedges | Designated as hedges | Cash flow hedging | Cash flow hedging | Cash flow hedging | Cash flow hedging | Cash flow hedging | Cash flow hedging | Cash flow hedging | ||||
Amount Reclassified From Accumulated Other Comprehensive Income | RUB | RUB | RUB | Unrealized gains / (losses) on derivatives | Designated as hedges | Designated as hedges | Designated as hedges | Designated as hedges | Designated as hedges | Designated as hedges | ||||||||||||||||
RUB | Amount Reclassified From Accumulated Other Comprehensive Income | RUB | RUB | RUB | RUB | RUB | RUB | |||||||||||||||||||
RUB | ||||||||||||||||||||||||||
Effect of derivative instruments designated as hedges on the consolidated statements of operations | ||||||||||||||||||||||||||
Loss recognized on derivatives | -33 | 15,519 | -961 | -664 | -33 | 231 | -184 | -429 | 15,288 | -777 | -235 | |||||||||||||||
Ineffective portion of derivative included in earnings | 173 | -28 | -183 | -2,315 | ||||||||||||||||||||||
Voluntary prepayment of principal and interest | 29,437 | 38,996 | 37,394 | 3.2 | 102 | 21.8 | 686 | 4.2 | 132 | 8.9 | 276 | |||||||||||||||
Changes in derivative instruments designated as hedges in accumulated other comprehensive income | ||||||||||||||||||||||||||
Accumulated derivatives income / (loss), beginning of the year, net of tax of 293 and 4 and (60), respectively | 1,467 | 21 | -241 | |||||||||||||||||||||||
Change in fair value of derivatives, net of tax | 2,801 | 1,445 | 255 | 14,468 | 691 | -204 | ||||||||||||||||||||
Amounts reclassified into earnings during the period | -11,668 | 755 | 466 | |||||||||||||||||||||||
Accumulated derivatives, end of the year, net of tax of 853 and 293 and 4, respectively | 4,267 | 1,467 | 21 | -241 | ||||||||||||||||||||||
Changes in tax effect derivative instruments designated as hedges in accumulated other comprehensive income | ||||||||||||||||||||||||||
Accumulated derivatives income/(loss) tax portion, beginning of the year | 293 | 4 | -60 | |||||||||||||||||||||||
Fair value adjustments on hedging derivatives net of tax | 2,894 | 138 | -29 | |||||||||||||||||||||||
Amounts reclassified into earnings during the period, tax portion | -2,334 | 151 | 93 | |||||||||||||||||||||||
Accumulated derivatives income/(loss) tax portion, end of the year | 853 | 293 | 4 | |||||||||||||||||||||||
Net loss expected to be reclassified into net income during the next twelve months | 1,011 |
DERIVATIVE_FINANCIAL_INSTRUMEN4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 4) (RUB) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Significant other observable inputs (Level 2) | Fair value measured on recurring basis | ||
Assets and liabilities associated with derivative agreements measured at fair value on a recurring basis | ||
Fair value of derivative assets | 21,944 | 1,837 |
Fair value of derivative liabilities | -2,550 | -421 |
Significant other observable inputs (Level 2) | Fair value measured on recurring basis | Interest rate swaps | ||
Assets and liabilities associated with derivative agreements measured at fair value on a recurring basis | ||
Fair value of derivative assets | 8 | 12 |
Fair value of derivative liabilities | -2,550 | -421 |
Significant other observable inputs (Level 2) | Fair value measured on recurring basis | Cross-currency interest rate swaps | ||
Assets and liabilities associated with derivative agreements measured at fair value on a recurring basis | ||
Fair value of derivative assets | 21,936 | 1,825 |
Significant observable inputs (Level 1) | ||
Assets and liabilities associated with derivative agreements measured at fair value on a recurring basis | ||
Fair value of derivative assets | 0 | |
Fair value of derivative liabilities | 0 | |
Significant unobservable inputs (Level 3) | ||
Assets and liabilities associated with derivative agreements measured at fair value on a recurring basis | ||
Fair value of derivative assets | 0 | |
Fair value of derivative liabilities | 0 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (RUB) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Liabilities: | ||
Redeemable noncontrolling interest | -3,192 | -2,932 |
Amount of transfers between any levels | 0 | |
Significant observable inputs (Level 1) | ||
Assets: | ||
Derivative instruments | 0 | |
Liabilities: | ||
Derivative instruments | 0 | |
Significant unobservable inputs (Level 3) | ||
Assets: | ||
Derivative instruments | 0 | |
Liabilities: | ||
Derivative instruments | 0 | |
Fair value measured on recurring basis | Significant other observable inputs (Level 2) | ||
Assets: | ||
Derivative instruments | 21,944 | 1,837 |
Liabilities: | ||
Derivative instruments | -2,550 | -421 |
Fair value measured on recurring basis | Significant unobservable inputs (Level 3) | ||
Liabilities: | ||
Contingent consideration | -99 | -11 |
Redeemable noncontrolling interest | -3,192 | -2,932 |
Realized and unrealized gains and losses on Level 3 assets | 0 | 0 |
Realized and unrealized gains and losses on Level 3 liabilities | 0 | 0 |
Sistema International Funding S.A. Bonds due 2019 | Significant observable inputs (Level 1) | ||
Assets: | ||
Derivative asset - available for sale securities | 42 | |
Sistema Notes 2016 (series 04) | Significant observable inputs (Level 1) | ||
Assets: | ||
Derivative asset - available for sale securities | 534 | |
Mutual investment fund "Reservnyi", managed by "DIK" | Fair value measured on recurring basis | Significant observable inputs (Level 1) | ||
Assets: | ||
Derivative asset - available for sale securities | 4,154 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (RUB) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Minimum | ||
Fair value measurements | ||
Revenue growth rate (as a percent) | 0.02% | 0.70% |
OIBDA margin (as a percent) | 44.70% | 49.40% |
Maximum | ||
Fair value measurements | ||
Revenue growth rate (as a percent) | 0.20% | 1.20% |
OIBDA margin (as a percent) | 46.50% | 50.70% |
Weighted average | ||
Fair value measurements | ||
Discount rate (as a percent) | 15.00% | 12.00% |
Revenue growth rate (as a percent) | 0.10% | 0.90% |
OIBDA margin (as a percent) | 45.40% | 49.80% |
MTS Bank | ||
Fair value measurements | ||
Impairment on investment | 3,225 | |
Equity investment | 4,857 | |
MTS Bank | Significant unobservable inputs (Level 3) | ||
Fair value measurements | ||
Discount rate (as a percent) | 23.30% | |
OIBDA margin (as a percent) | 5.00% |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 3) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
FAIR VALUE MEASUREMENTS | |||
Impairment of intangible assets | 0 | ||
Fair value of notes payable, including the current portion | 96,222 | ||
Fair value of bank loans and other debt, including the current portion | 7,564 | 19,435 | |
Significant observable inputs (Level 1) | |||
FAIR VALUE MEASUREMENTS | |||
Fair value of notes payable, including the current portion | 106,668 | 96,222 | |
Significant other observable inputs (Level 2) | |||
FAIR VALUE MEASUREMENTS | |||
Fair value of bank loans and other debt, including the current portion | 116,356 | 162,914 | |
Uzdunrobita | |||
FAIR VALUE MEASUREMENTS | |||
Asset Impairment Charges | 20,037 |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES (Details) (RUB) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ACCRUED LIABILITIES | ||
Accruals for services | 10,870 | 9,911 |
Accrued payroll and vacation | 7,670 | 7,247 |
Accruals for taxes | 6,703 | 8,355 |
Interest payable on debt | 1,830 | 1,792 |
Accruals for payments to social funds | 547 | 369 |
Total accrued liabilities | 27,620 | 27,674 |
INCOME_TAX_Details
INCOME TAX (Details) (RUB) | 12 Months Ended | 36 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Income from continuing operations before provision for income taxes | ||||
Russia | 55,424 | 77,502 | 71,626 | |
Other jurisdictions | 13,316 | 19,186 | 11,216 | |
Income from continuing operations before provision for income taxes | 68,740 | 96,688 | 82,842 | |
Current income tax expense | ||||
Russia | 5,764 | 7,557 | 13,790 | |
Other jurisdictions | 4,043 | 2,405 | 2,304 | |
Total current income tax expense | 9,807 | 9,962 | 16,094 | |
Deferred income tax expense | ||||
Russia | 8,330 | 8,487 | 2,312 | |
Other jurisdictions | -1,790 | 1,184 | 978 | |
Total deferred income tax expense | 6,540 | 9,671 | 3,290 | |
Total provision for income taxes | 16,347 | 19,633 | 19,384 | |
Statutory income tax rates | ||||
Statutory income tax rates (as a percent) | 20.00% | 20.00% | 20.00% | 20.00% |
MTS OJSC | ||||
Deferred income tax expense | ||||
Total provision for income taxes | 83 | |||
Russia | ||||
Statutory income tax rates | ||||
Statutory income tax rates (as a percent) | 20.00% | |||
Armenia | ||||
Statutory income tax rates | ||||
Statutory income tax rates (as a percent) | 20.00% | |||
Turkmenistan | ||||
Statutory income tax rates | ||||
Statutory income tax rates (as a percent) | 8.00% | |||
Ukraine | ||||
Statutory income tax rates | ||||
Statutory income tax rates (as a percent) | 18.00% | 19.00% | 21.00% |
INCOME_TAX_Details_2
INCOME TAX (Details 2) (RUB) | 12 Months Ended | 36 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Russian statutory income tax rate reconciled to the Group's effective income tax rate | ||||
Statutory income tax rate for the year (as a percent) | 20.00% | 20.00% | 20.00% | 20.00% |
Adjustments: | ||||
(Income) / expenses not accepted for tax purposes (as a percent) | 2.00% | -0.50% | 2.00% | |
Change in unrecognized tax benefits (as a percent) | -0.50% | |||
Settlements with tax authorities (as a percent) | 0.60% | -0.30% | 0.40% | |
Earnings distribution from subsidiaries (as a percent) | 4.00% | 1.80% | 1.50% | |
Effect of change in tax rate in Ukraine (as a percent) | -0.10% | 0.20% | ||
Loss carryforward utilization (as a percent) | -0.30% | |||
Tax rate differential of foreign subsidiaries (as a percent) | -1.90% | -0.50% | ||
Recognised change in fair value of derivative financial instruments | -1.00% | 0.10% | ||
Other (as a percent) | 0.10% | -0.20% | 0.10% | |
Effective income tax rate (as a percent) | 23.80% | 20.30% | 23.40% | |
Deferred tax assets | ||||
Accrued expenses for services | 7,757 | 6,291 | 7,757 | |
Depreciation of property, plant and equipment | 4,015 | 1,229 | 4,015 | |
Deferred connection fees | 929 | 1,115 | 929 | |
Provision for deposit in Delta Bank in Ukraine | 925 | 925 | ||
Inventory obsolescence | 192 | 265 | 192 | |
Other | 1,242 | |||
Loss carryforward | 8,879 | 5,880 | 8,879 | |
Valuation allowance | -8,438 | -5,504 | -8,438 | |
Total deferred tax assets | 14,259 | 10,518 | 14,259 | |
Deferred tax liabilities | ||||
Depreciation of property, plant and equipment | -17,489 | -12,735 | -17,489 | |
Other intangible assets | -6,906 | -2,995 | -6,906 | |
Potential distributions from / to Group's subsidiaries / associates | -5,817 | -4,553 | -5,817 | |
Licenses acquired | -1,118 | -774 | -1,118 | |
Customer base | -905 | -1,027 | -905 | |
Debt issuance cost | -348 | -405 | -348 | |
Other | -138 | -436 | -138 | |
Net deferred tax liabilities | -32,721 | -22,925 | -32,721 | |
Net deferred tax liability | -18,462 | -12,407 | -18,462 | |
Net deferred tax asset, current | 11,206 | 7,933 | 11,206 | |
Net deferred tax asset, non-current | 3,610 | 862 | 3,610 | |
Net deferred tax liability, long-term | -33,278 | -21,202 | -33,278 |
INCOME_TAX_Details_3
INCOME TAX (Details 3) (RUB) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Significant balances for income tax losses carried forward | ||
Operating losses | 33,496 | 22,961 |
Tax losses | 8,879 | 5,880 |
Valuation allowance | ||
Sale of investment in Svyazinvest | 2,875 | 2,160 |
Operating loss in Luxemburg (MGTS Finance S.A.) | 5,305 | 3,086 |
Other | 258 | 258 |
Valuation allowances | 8,438 | 5,504 |
Luxembourg (MGTS Finance S.A.) | ||
Significant balances for income tax losses carried forward | ||
Operating losses | 24,183 | 14,064 |
Tax losses | 7,017 | 4,101 |
Russia (Comstar-Regions and other) | ||
Significant balances for income tax losses carried forward | ||
Operating losses | 9,313 | 8,897 |
Tax losses | 1,862 | 1,779 |
INCOME_TAX_Details_4
INCOME TAX (Details 4) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Undistributed earning and uncertain tax positions | |||
Deferred income tax liabilities for income taxes on future dividend distributions from foreign subsidiaries - MTS Ukraine and K-Telecom | 3,118 | 2,511 | |
Cumulative undistributed earnings of foreign subsidiaries (MTS Ukraine and K-Telecom) | 40,383 | 36,245 | |
Accruals for uncertain tax positions | 342 | 615 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Balance, beginning of the year | 518 | 321 | 526 |
Additions based on tax position related to the current year | 37 | 366 | |
Additions based on tax positions related to prior years | 22 | 1 | 66 |
Additions based on tax of acquired entities | 10 | ||
Reduction in tax positions related to prior years | -267 | -170 | -220 |
Settlements with tax authorities | -25 | -61 | |
Balance, end of the year | 285 | 518 | 321 |
Penalties and interest related to unrecognized tax benefits | |||
Accrued penalties and interest related to unrecognized tax benefits recognized in earnings | 40 | 53 | 36 |
Accrued interest and penalties | 58 | 97 | |
Allowance against deferred tax assets | |||
Movement in valuation allowances | |||
Balance, beginning of the year | 5,504 | 4,952 | 5,250 |
Charged to Income tax expense | 258 | ||
Impact of foreign currency translation adjustments | 2,934 | 294 | -298 |
Balance, end of the year | 8,438 | 5,504 | 4,952 |
RELATED_PARTIES_Details
RELATED PARTIES (Details) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related parties | |||
Accounts receivable, related parties | 4,525 | 965 | |
Accounts payable, related parties | 4,674 | 3,315 | |
Revenues from related parties | 1,372 | 1,113 | 492 |
Operating expenses incurred on transactions with related parties | 5,078 | 5,456 | 4,614 |
Sistema | |||
Related parties | |||
Accounts receivable, related parties | 3,215 | ||
MTS Belarus | |||
Related parties | |||
Accounts receivable, related parties | 514 | 304 | |
Accounts payable, related parties | 213 | 208 | |
Revenues from related parties | 269 | 149 | 209 |
Operating expenses incurred on transactions with related parties | 395 | 278 | 424 |
MTS Bank | |||
Related parties | |||
Accounts receivable, related parties | 510 | 128 | |
Accounts payable, related parties | 377 | 697 | |
Revenues from related parties | 787 | 378 | 88 |
Operating expenses incurred on transactions with related parties | -406 | 413 | 55 |
Sitronics N, a subsidiary of Sistema | |||
Related parties | |||
Accounts receivable, related parties | 121 | 337 | |
Revenues from related parties | 7 | 288 | 26 |
Stream | |||
Related parties | |||
Accounts receivable, related parties | 42 | 59 | |
Accounts payable, related parties | 211 | 99 | |
Operating expenses incurred on transactions with related parties | 1,395 | 711 | |
NVision Group, subsidiaries of Sistema | |||
Related parties | |||
Accounts receivable, related parties | 16 | 33 | |
Accounts payable, related parties | 3,311 | 1,605 | |
Revenues from related parties | 82 | 75 | 77 |
Operating expenses incurred on transactions with related parties | 846 | 1,083 | 1,115 |
Other related parties | |||
Related parties | |||
Accounts receivable, related parties | 107 | 104 | |
Accounts payable, related parties | 328 | 198 | |
Revenues from related parties | 140 | 115 | 64 |
Operating expenses incurred on transactions with related parties | 455 | 513 | 423 |
Maxima, a subsidiary of Sistema | |||
Related parties | |||
Accounts payable, related parties | 162 | 307 | |
Operating expenses incurred on transactions with related parties | 1,575 | 1,757 | 1,902 |
SMARTS | |||
Related parties | |||
Accounts payable, related parties | 72 | 201 | |
Jet Air Group, subsidiaries of Sistema (rent) | |||
Related parties | |||
Revenues from related parties | 4 | 60 | |
Operating expenses incurred on transactions with related parties | 127 | ||
Medsi Group, subsidiaries of Sistema (mobile and call center services) | |||
Related parties | |||
Revenues from related parties | 83 | 48 | 28 |
AB Safety, a subsidiary of Sistema | |||
Related parties | |||
Operating expenses incurred on transactions with related parties | 292 | 354 | 344 |
Elavius, a subsidiary of Sistema | |||
Related parties | |||
Operating expenses incurred on transactions with related parties | 399 | 347 | 351 |
RELATED_PARTIES_Details_2
RELATED PARTIES (Details 2) (RUB) | 12 Months Ended | 1 Months Ended | ||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2014 | Apr. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2015 | Dec. 31, 2011 | 31-May-13 | Apr. 30, 2013 | |
item | ||||||||||
Investing and financing transactions | ||||||||||
Total short-term investments | 9,849,000,000 | 14,633,000,000 | 14,633,000,000 | |||||||
Investment in shares of subsidiaries and affiliates of Sistema | 125,000,000 | 125,000,000 | 125,000,000 | |||||||
Cash position | 61,566,000,000 | 30,612,000,000 | 22,014,000,000 | 30,612,000,000 | 59,589,000,000 | |||||
Interest expense | 16,453,000,000 | 15,498,000,000 | 17,673,000,000 | |||||||
Revenue from services | 381,822,000,000 | 371,950,000,000 | 349,338,000,000 | |||||||
Proceeds from sale of stake | 508,000,000 | |||||||||
Accounts receivable, related parties | 4,525,000,000 | 965,000,000 | 965,000,000 | |||||||
Gain from sale of building accounted for as transaction under common control | 245,000,000 | |||||||||
Interest income, related party | 4,519,000,000 | 2,793,000,000 | 2,588,000,000 | |||||||
Eurobonds | ||||||||||
Investing and financing transactions | ||||||||||
Unrealized gain for change in fair value of the bonds | 6,000,000 | |||||||||
Interest income, related party | 9,000,000 | |||||||||
Sistema Notes 2016 (series 04) | ||||||||||
Investing and financing transactions | ||||||||||
Investment in bonds | 519,000,000 | |||||||||
Number of Eurobonds acquired | 2,501,350 | |||||||||
Sistema International Funding S.A. Bonds due 2019 | ||||||||||
Investing and financing transactions | ||||||||||
Investment in bonds | 32,000,000 | |||||||||
Number of Eurobonds acquired | 1,000 | |||||||||
Loans to, promissory notes and investments | ||||||||||
Investing and financing transactions | ||||||||||
Total short-term investments | 760,000,000 | 9,235,000,000 | 9,235,000,000 | |||||||
Other investments to related parties | 710,000,000 | 618,000,000 | 618,000,000 | |||||||
Investment in shares of subsidiaries and affiliates of Sistema | 125,000,000 | 125,000,000 | 125,000,000 | |||||||
MTS Bank | ||||||||||
Investing and financing transactions | ||||||||||
Deposits | 3,482,000,000 | 5,081,000,000 | 5,081,000,000 | |||||||
Cash position | 11,687,000,000 | 11,297,000,000 | 11,297,000,000 | |||||||
Interest accrued on loan receivable, the deposits and cash on current accounts | 654,000,000 | 742,000,000 | 172,000,000 | |||||||
Interest expense | 0 | 0 | 363,000,000 | |||||||
Bank commission and commission for cash collection from subscribers | 135,000,000 | 82,000,000 | 55,000,000 | |||||||
Accounts receivable, related parties | 510,000,000 | 128,000,000 | 128,000,000 | |||||||
MTS Bank | Mobile and call center services | ||||||||||
Investing and financing transactions | ||||||||||
Revenue from services | 787,000,000 | 378,000,000 | 88,000,000 | |||||||
MTS Bank | Documenet processing services | ||||||||||
Investing and financing transactions | ||||||||||
Revenue from services | 541,000,000 | |||||||||
Fines in excess of agency fees incurred | 331,000,000 | |||||||||
MTS Bank | Loans to, promissory notes and investments | ||||||||||
Investing and financing transactions | ||||||||||
Deposits | 5,081,000,000 | 5,081,000,000 | ||||||||
DIK, a subsidiary of Sistema | ||||||||||
Investing and financing transactions | ||||||||||
Investment fund Reservnyi | 2,000,000,000 | 2,000,000,000 | ||||||||
Unrealized gain on investment fund Reservnyi | 4,165,000,000 | |||||||||
Profit recognized on investment fund Reservnyi | 165,000,000 | |||||||||
DIK, a subsidiary of Sistema | Loans to, promissory notes and investments | ||||||||||
Investing and financing transactions | ||||||||||
Investment fund Reservnyi | 4,154,000,000 | 4,154,000,000 | ||||||||
Sistema | ||||||||||
Investing and financing transactions | ||||||||||
Notes and loans receivable | 618,000,000 | 618,000,000 | 618,000,000 | |||||||
Proceeds from sale of stake | 3,100,000,000 | |||||||||
Accounts receivable, related parties | 3,215,000,000 | |||||||||
Accrued interest on unpaid accounts receivable | 125,000,000 | |||||||||
Sistema | Loans to, promissory notes and investments | ||||||||||
Investing and financing transactions | ||||||||||
Notes and loans receivable | 618,000,000 | 618,000,000 | 618,000,000 | |||||||
Sistema | Loans to, promissory notes and investments | Sistema Notes 2016 (series 04) | ||||||||||
Investing and financing transactions | ||||||||||
Investment in bonds | 534,000,000 | |||||||||
Leader-Invest [Member] | ||||||||||
Investing and financing transactions | ||||||||||
Proceeds from sale of stake | 508,000,000 | |||||||||
Gain from sale of building accounted for as transaction under common control | 245,000,000 | |||||||||
Sistema Mass Media, a subsidiary of Sistema | ||||||||||
Investing and financing transactions | ||||||||||
Equity interest owned (as a percent) | 2.36% | |||||||||
Liabilities to related parties | 867,000,000 | |||||||||
Interest expense on dues to related parties | 41,000,000 | |||||||||
Sistema Mass Media, a subsidiary of Sistema | Loans to, promissory notes and investments | ||||||||||
Investing and financing transactions | ||||||||||
Investment in shares of subsidiaries and affiliates of Sistema | 117,000,000 | 117,000,000 | 117,000,000 | |||||||
Sistema International Funding SA, a subsidiary of Sistema | Loans to, promissory notes and investments | Sistema International Funding S.A. Bonds due 2019 | ||||||||||
Investing and financing transactions | ||||||||||
Investment in bonds | 42,000,000 | |||||||||
Navigation Information Systems | Loans to, promissory notes and investments | ||||||||||
Investing and financing transactions | ||||||||||
Total short-term investments | 132,000,000 | |||||||||
Other investments to related parties | 92,000,000 | |||||||||
Moscow Business Incubator (MBI), a subsidiary of Sistema | Loans to, promissory notes and investments | ||||||||||
Investing and financing transactions | ||||||||||
Total short-term investments | 52,000,000 | |||||||||
Other related parties | ||||||||||
Investing and financing transactions | ||||||||||
Accounts receivable, related parties | 107,000,000 | 104,000,000 | 104,000,000 | |||||||
Other related parties | Loans to, promissory notes and investments | ||||||||||
Investing and financing transactions | ||||||||||
Investment in shares of subsidiaries and affiliates of Sistema | 8,000,000 | 8,000,000 | 8,000,000 | |||||||
SMARTS | ||||||||||
Investing and financing transactions | ||||||||||
Purchases of SIM cards and prepaid phone cards | 267,000,000 | 765,000,000 | 842,000,000 | |||||||
NVision Group, subsidiaries of Sistema | ||||||||||
Investing and financing transactions | ||||||||||
Accounts receivable, related parties | 16,000,000 | 33,000,000 | 33,000,000 | |||||||
Purchases of telecommunications equipment, software and billing systems (FORIS) | 9,819,000,000 | 13,394,000,000 | 12,898,000,000 | |||||||
Incurred expenses under an IT consulting agreement | 846,000,000 | 1,083,000,000 | 1,115,000,000 | |||||||
Advances to related parties | 274,000,000 | 496,000,000 | 496,000,000 | |||||||
Business-Nedvizhimost | ||||||||||
Investing and financing transactions | ||||||||||
Percentage of Ownership Interest Sold | 49.00% | 51.00% | ||||||||
Proceeds from sale of stake | 3,100,000,000 | |||||||||
Business-Nedvizhimost | Sistema | ||||||||||
Investing and financing transactions | ||||||||||
Percentage of Ownership Interest Sold | 49.00% | |||||||||
Rent-Nedvizhimost | Sistema | ||||||||||
Investing and financing transactions | ||||||||||
Percentage of Ownership Interest Sold | 51.00% | |||||||||
Proceeds from sale of stake | 4,300,000,000 | |||||||||
Interest rate | 12.00% | |||||||||
Amount due before December 31, 2018 | 3,800,000,000 |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (RUB) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-10 | Jun. 30, 2014 | Dec. 31, 2011 | |
Share capital | ||||||
Shares issued | 2,066,413,562 | 2,066,413,562 | ||||
Outstanding common shares excluding treasury shares | 1,988,912,130 | 1,988,831,184 | ||||
Shares in treasury stock | 77,501,432 | 77,582,378 | ||||
Number of shares per ADS (in shares) | 2 | |||||
Number of ADSs that have been repurchased (in shares) | 33,997,667 | |||||
Noncontrolling interest | ||||||
Net income attributable to the Group | 51,822,000,000 | 79,839,000,000 | 29,642,000,000 | |||
Transfers from the noncontrolling interest | ||||||
Increase in own equity due to acquisition of own shares by MGTS | 57,000,000 | |||||
Net transfers from the noncontrolling interest | -23,000,000 | 57,000,000 | ||||
Net income attributable to the Group and transfers from the noncontrolling interest: | 51,799,000,000 | 79,839,000,000 | 29,699,000,000 | |||
Accumulated other comprehensive loss balance, net of tax | ||||||
Balance at beginning of period | -15,030,000,000 | |||||
Balance at end of period | -6,294,000,000 | -15,030,000,000 | ||||
Accumulated other comprehensive loss by components | ||||||
Balance at beginning of period | -15,030,000,000 | |||||
Balance at end of period | -6,294,000,000 | -15,030,000,000 | ||||
Dividends | ||||||
Dividend policy, minimum annual payments as a percentage of free cash flow | 75.00% | |||||
Dividend policy, Maximum amount to be paid | 40,000,000,000 | |||||
Net income available for distribution as calculated under Russian statutory accounting regulations | 28,373,000,000 | 55,999,000,000 | 42,949,000,000 | |||
Declared cash dividends | ||||||
Dividends declared (including dividends on treasury shares of 1,922 and 1,538 and 1,140 respectively) | 51,247,000,000 | 40,956,000,000 | 30,397,000,000 | |||
Dividends declared on treasury shares | 1,922,000,000 | 1,538,000,000 | 1,140,000,000 | |||
Dividends, RUB per ADS (in rubles per unit) | 49.6 | 39.64 | 29.42 | |||
Dividends, RUB per share (in rubles per unit) | 24.8 | 19.82 | 14.71 | |||
Dividends payable | 19,500,000 | 57,000,000 | ||||
Accumulated other comprehensive (loss)/income | ||||||
Accumulated other comprehensive loss balance, net of tax | ||||||
Balance at beginning of period | 15,030,000,000 | 13,676,000,000 | ||||
Recognized in other comprehensive loss / (income) | -8,736,000,000 | 1,354,000,000 | ||||
Balance at end of period | 6,294,000,000 | 15,030,000,000 | ||||
Accumulated other comprehensive loss by components | ||||||
Balance at beginning of period | 15,030,000,000 | 13,676,000,000 | ||||
Other comprehensive loss / (income) | -23,370,000,000 | 5,796,000,000 | ||||
Less: tax expense | 2,910,000,000 | 172,000,000 | ||||
Amounts reclassified to net income | 14,072,000,000 | -4,847,000,000 | ||||
Less: tax expense | -2,348,000,000 | 233,000,000 | ||||
Net other comprehensive loss / (income) | -8,736,000,000 | 1,354,000,000 | ||||
Balance at end of period | 6,294,000,000 | 15,030,000,000 | ||||
Currency translation adjustment | ||||||
Accumulated other comprehensive loss balance, net of tax | ||||||
Balance at beginning of period | 16,199,000,000 | 13,224,000,000 | ||||
Recognized in other comprehensive loss / (income) | -5,925,000,000 | 2,975,000,000 | ||||
Balance at end of period | 10,274,000,000 | 16,199,000,000 | ||||
Accumulated other comprehensive loss by components | ||||||
Balance at beginning of period | 16,199,000,000 | 13,224,000,000 | ||||
Other comprehensive loss / (income) | -5,925,000,000 | 6,657,000,000 | ||||
Amounts reclassified to net income | -3,682,000,000 | |||||
Net other comprehensive loss / (income) | -5,925,000,000 | 2,975,000,000 | ||||
Balance at end of period | 10,274,000,000 | 16,199,000,000 | ||||
Unrealized gains / (losses) on derivatives | ||||||
Accumulated other comprehensive loss balance, net of tax | ||||||
Balance at beginning of period | -1,466,000,000 | -21,000,000 | ||||
Recognized in other comprehensive loss / (income) | -2,801,000,000 | -1,445,000,000 | ||||
Balance at end of period | -4,267,000,000 | -1,466,000,000 | ||||
Accumulated other comprehensive loss by components | ||||||
Balance at beginning of period | -1,466,000,000 | -21,000,000 | ||||
Other comprehensive loss / (income) | -17,363,000,000 | -861,000,000 | ||||
Less: tax expense | 2,894,000,000 | 172,000,000 | ||||
Amounts reclassified to net income | 14,002,000,000 | -945,000,000 | ||||
Less: tax expense | -2,334,000,000 | 189,000,000 | ||||
Net other comprehensive loss / (income) | -2,801,000,000 | -1,445,000,000 | ||||
Balance at end of period | -4,267,000,000 | -1,466,000,000 | ||||
Unrecognized actuarial (gains) / losses | ||||||
Accumulated other comprehensive loss balance, net of tax | ||||||
Balance at beginning of period | 297,000,000 | 473,000,000 | ||||
Recognized in other comprehensive loss / (income) | -10,000,000 | -176,000,000 | ||||
Balance at end of period | 287,000,000 | 297,000,000 | ||||
Accumulated other comprehensive loss by components | ||||||
Balance at beginning of period | 297,000,000 | 473,000,000 | ||||
Other comprehensive loss / (income) | -82,000,000 | |||||
Less: tax expense | 16,000,000 | |||||
Amounts reclassified to net income | 70,000,000 | -220,000,000 | ||||
Less: tax expense | -14,000,000 | 44,000,000 | ||||
Net other comprehensive loss / (income) | -10,000,000 | -176,000,000 | ||||
Balance at end of period | 287,000,000 | 297,000,000 | ||||
Investments in ordinary shares | ||||||
Share capital | ||||||
Shares issued | 2,066,413,562 | 2,066,413,562 | 2,066,413,562 | 2,066,413,562 | ||
Declared cash dividends | ||||||
Dividends payable | 1,217,000,000 | |||||
Preferred stock | ||||||
Declared cash dividends | ||||||
Dividends payable | 1,216,000,000 | |||||
MGTS | ||||||
Declared cash dividends | ||||||
Dividends payable | 17,800,000 | 48,600,000 | ||||
MGTS' preferred stock | ||||||
Preferred shares outstanding | 15,574,492 | 15,574,492 | ||||
Percentage of net income as determined under Russian accounting regulations used in determining the guaranteed non-cumulative dividend rights on preferred shares | 10.00% | |||||
Percentage of preferred shareholders required for approval | 75.00% | |||||
Other subsidiaries | ||||||
Transfers from the noncontrolling interest | ||||||
Decrease in own equity due to acquisition of noncontrolling interest in Teleservice | -23,000,000 |
REDEEMABLE_NONCONTROLLING_INTE1
REDEEMABLE NONCONTROLLING INTEREST (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2007 | Sep. 30, 2007 |
In Millions, unless otherwise specified | RUB | RUB | International Cell Holding Ltd | International Cell Holding Ltd | K-Telecom |
EUR (€) | |||||
Redeemable noncontrolling interest | |||||
Percentage of ownership interest acquired | 80.00% | ||||
Percentage of indirect ownership interest of parent | 100.00% | ||||
Percentage of noncontrolling interest | 20.00% | ||||
Cap price of option to acquire remaining 20% stake (in euros) | € 200 | ||||
Fair value of redeemable noncontrolling interest (in dollars) | 3,192 | 2,932 |
GENERAL_AND_ADMINISTRATIVE_EXP2
GENERAL AND ADMINISTRATIVE EXPENSES (Details) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
GENERAL AND ADMINISTRATIVE EXPENSES | |||
Salaries and social contributions | 49,113 | 45,790 | 40,486 |
Rent | 16,220 | 14,677 | 13,334 |
General and administrative | 8,057 | 7,955 | 8,016 |
Repair and maintenance | 6,875 | 6,217 | 6,364 |
Taxes other than income | 5,913 | 6,374 | 5,422 |
Consulting expenses | 2,192 | 1,569 | 1,689 |
Billing and data processing | 2,070 | 2,035 | 1,726 |
Inventory obsolescence | 357 | 660 | 759 |
Insurance | 174 | 181 | 181 |
Total general and administrative expenses | 90,971 | 85,458 | 77,977 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (RUB) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net operating revenues | |||
Total net operating revenues from external customers: | 410,758 | 398,443 | 378,240 |
Depreciation and amortization expense | |||
Depreciation and amortization expense | 74,710 | 73,253 | 67,910 |
Operating income: | |||
Net operating income | 102,349 | 101,758 | 93,794 |
Currency exchange and transaction loss / (gain) | 18,024 | 5,473 | -3,952 |
Interest income | -4,519 | -2,793 | -2,588 |
Interest expense | 16,453 | 15,498 | 17,673 |
Equity in net loss/(income) of associates | 2,880 | -2,472 | -869 |
Other (income) / expense, net | 771 | -10,636 | 688 |
Income from continuing operations before provision for income taxes | 68,740 | 96,688 | 82,842 |
Additions to long-lived assets: | |||
Additions to long-lived assets | 113,442 | 80,867 | |
Long-lived assets: | |||
Long-lived assets | 398,259 | 344,989 | |
Total assets: | |||
Assets | 608,927 | 485,524 | |
Russia | |||
Net operating revenues | |||
Total net operating revenues from external customers: | 372,080 | 352,930 | 336,771 |
Long-lived assets: | |||
Long-lived assets | 347,994 | 308,336 | |
Other | |||
Net operating revenues | |||
Total net operating revenues from external customers: | 38,678 | 45,513 | 41,469 |
Long-lived assets: | |||
Long-lived assets | 50,265 | 36,653 | |
Russia Convergent | |||
Depreciation and amortization expense | |||
Depreciation and amortization expense | 57,773 | 57,655 | 51,994 |
Moscow fixed line | |||
Depreciation and amortization expense | |||
Depreciation and amortization expense | 7,609 | 5,182 | 4,251 |
Other | |||
Additions to long-lived assets: | |||
Additions to long-lived assets | 8,234 | 1,951 | |
Long-lived assets: | |||
Long-lived assets | 37,825 | 12,648 | |
Total assets: | |||
Assets | 47,521 | 15,806 | |
Operating segment | Mobile services | |||
Net operating revenues | |||
Total net operating revenues from external customers: | 352,964 | 339,883 | 322,517 |
Operating segment | Fixed line services | |||
Net operating revenues | |||
Total net operating revenues from external customers: | 57,794 | 58,560 | 55,723 |
Operating segment | Russia Convergent | |||
Net operating revenues | |||
Total net operating revenues from external customers: | 336,099 | 317,437 | 303,478 |
Operating income: | |||
Net operating income | 85,964 | 79,199 | 76,832 |
Additions to long-lived assets: | |||
Additions to long-lived assets | 86,456 | 55,939 | |
Long-lived assets: | |||
Long-lived assets | 276,896 | 246,422 | |
Total assets: | |||
Assets | 439,950 | 355,203 | |
Operating segment | Moscow fixed line | |||
Net operating revenues | |||
Total net operating revenues from external customers: | 35,938 | 35,493 | 33,293 |
Operating income: | |||
Net operating income | 13,601 | 15,678 | 14,938 |
Additions to long-lived assets: | |||
Additions to long-lived assets | 13,649 | 14,121 | |
Long-lived assets: | |||
Long-lived assets | 64,992 | 61,812 | |
Total assets: | |||
Assets | 78,468 | 75,929 | |
Operating segment | Ukraine | |||
Net operating revenues | |||
Total net operating revenues from external customers: | 29,064 | 37,665 | 36,118 |
Depreciation and amortization expense | |||
Depreciation and amortization expense | 6,780 | 8,896 | 9,571 |
Operating income: | |||
Net operating income | 3,390 | 11,745 | 9,647 |
Additions to long-lived assets: | |||
Additions to long-lived assets | 5,103 | 8,856 | |
Long-lived assets: | |||
Long-lived assets | 18,546 | 24,107 | |
Total assets: | |||
Assets | 42,988 | 38,586 | |
Operating segment | Other | |||
Net operating revenues | |||
Total net operating revenues from external customers: | 9,657 | 7,848 | 5,351 |
Depreciation and amortization expense | |||
Depreciation and amortization expense | 2,619 | 1,588 | 2,104 |
Operating income: | |||
Net operating income | -559 | -4,810 | -7,625 |
Eliminations | |||
Net operating revenues | |||
Total net operating revenues from external customers: | 14,782 | 11,817 | 9,711 |
Depreciation and amortization expense | |||
Depreciation and amortization expense | -71 | -68 | -10 |
Operating income: | |||
Net operating income | -47 | -54 | -8 |
Eliminations | Russia Convergent | |||
Net operating revenues | |||
Total net operating revenues from external customers: | 4,633 | 3,638 | 2,513 |
Eliminations | Moscow fixed line | |||
Net operating revenues | |||
Total net operating revenues from external customers: | 4,886 | 4,831 | 4,563 |
Eliminations | Ukraine | |||
Net operating revenues | |||
Total net operating revenues from external customers: | 3,722 | 2,067 | 1,604 |
Eliminations | Other | |||
Net operating revenues | |||
Total net operating revenues from external customers: | 1,541 | 1,281 | 1,031 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (RUB) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | ||||
Capital commitments | ||||
Purchase agreements to acquire property, plant and equipment, intangible assets and costs related thereto | 41,798,000,000 | |||
Future minimum lease payments due for the five years ending December 31, 2019 and thereafter | ||||
2015 | 5,172,000,000 | |||
2016 | 691,000,000 | |||
2017 | 384,000,000 | |||
2018 | 269,000,000 | |||
2019 | 222,000,000 | |||
Thereafter | 1,700,000,000 | |||
Total | 8,438,000,000 | |||
Commitment and contingencies | ||||
Period within which the LTE networks are to be fully deployed | 7 years | |||
Number of inhabitants in each population center for delivery of LTE services | 50,000 | |||
Minimum annual investment obligation towards the LTE roll-out until the network is fully deployed | 15,000,000,000 | |||
General and administrative expenses. | ||||
Commitment and contingencies | ||||
Rental expense | 16,220,000,000 | 14,677,000,000 | 13,334,000,000 | |
Cost of services | ||||
Commitment and contingencies | ||||
Rental expense | 7,860,000,000 | 7,583,000,000 | 7,207,000,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 2) (RUB) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2010 |
Taxation | |||||||
Number of years following the tax year for which tax declarations remain open and subject to inspection | 3 years | ||||||
Tax audit and assessment | |||||||
Provision for income taxes | 16,347 | 19,633 | 19,384 | ||||
Other operating expenses | 4,468 | 5,594 | 6,193 | ||||
Provision Accrued for Taxes | 2,999 | 2,278 | |||||
Accrual for unrecognized income tax benefits, potential penalties and interest | 342 | 615 | |||||
MTS OJSC | |||||||
Tax audit and assessment | |||||||
Additional taxes, penalties and fines payable | 253.4 | 353.9 | |||||
Provision for income taxes | 83 | ||||||
Other operating expenses | 170.4 | ||||||
Decrease in amount of additional taxes, penalties and fines payable | -173.9 | ||||||
Amount of appeal filed by the entity | 84.2 | ||||||
Remaining amount of additional taxes, penalties and fines payable | 180 | ||||||
Amount in respect of which no further actions were taken | 137.1 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details 3) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Jun. 22, 2013 | Jun. 22, 2013 | Jan. 31, 2011 | Jan. 31, 2011 | Dec. 31, 2005 | Dec. 31, 2005 | Dec. 31, 2005 | Dec. 31, 2005 | Nov. 30, 2006 | Nov. 30, 2006 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2006 | Dec. 31, 2006 | Dec. 31, 2005 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2013 |
USD ($) | RUB | USD ($) | RUB | USD ($) | RUB | USD ($) | RUB | USD ($) | RUB | Settlement of Litigation | Settlement of Litigation | Settlement of Litigation | Settlement of Litigation | Tarino Limited | Tarino Limited | Tarino Limited | Tarino Limited | Tarino Limited | Tarino Limited | Bitel LLC | Bitel LLC | Bitel LLC | Bitel LLC | Bitel LLC | Bitel LLC | Bitel LLC | Bitel LLC | Bitel LLC | Bitel LLC | Bitel LLC | |
USD ($) | RUB | USD ($) | RUB | USD ($) | RUB | USD ($) | RUB | USD ($) | RUB | USD ($) | RUB | USD ($) | RUB | Operating income | Operating income | Non-operating income | Non-operating income | MTS OJSC | MTS OJSC | ||||||||||||
USD ($) | RUB | USD ($) | RUB | USD ($) | RUB | ||||||||||||||||||||||||||
Business acquisitions | |||||||||||||||||||||||||||||||
Percentage of stake acquired | 51.00% | 51.00% | 51.00% | 51.00% | |||||||||||||||||||||||||||
Cash consideration paid for acquisition | ($150) | 4,322 | |||||||||||||||||||||||||||||
Remaining percentage of interest acquired in Tarino shares in Option Shares | 49.00% | 49.00% | 49.00% | 49.00% | |||||||||||||||||||||||||||
Call and put option price | -170 | 4,898 | |||||||||||||||||||||||||||||
Percentage of investment in Bitel at cost as the Group did not regain operational control | 51.00% | ||||||||||||||||||||||||||||||
Impairment liability | 170 | 4,526 | |||||||||||||||||||||||||||||
Payment for Option Shares | 170 | 5,115 | 170 | 4,476 | |||||||||||||||||||||||||||
Damages | 5.9 | 178 | |||||||||||||||||||||||||||||
Liability under the arbitration award | 221 | 7,236 | |||||||||||||||||||||||||||||
Additional liabilities under the arbitration award | 7.2 | 7.2 | 224 | 3.2 | 94 | 40.8 | 1,239 | ||||||||||||||||||||||||
Total notes | 106,477 | 102,744 | |||||||||||||||||||||||||||||
Settlement Payment | 150 | 4,909 | |||||||||||||||||||||||||||||
Provision released | 221 | 7,236 | |||||||||||||||||||||||||||||
Provision released to exercise the put option for acquisition | 170 | 5,566 | |||||||||||||||||||||||||||||
Percentage of ownership to be acquired from provision released to exercise the put option | 49.00% | 49.00% | |||||||||||||||||||||||||||||
Provision released in damages, interest and other costs in relation to the dispute | 51 | 1,670 | |||||||||||||||||||||||||||||
Gain recognized with respect to the Settlement Payment | ($150) | 4,911 | $32.40 | 1,060 | $117.60 | 3,851 | |||||||||||||||||||||||||
Potential adverse effects of economical instability and sanctions | |||||||||||||||||||||||||||||||
Key rate (as a percent) | 17.00% | 17.00% |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) | 12 Months Ended | 1 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2015 | Feb. 28, 2015 | Jan. 31, 2015 |
RUB | RUB | RUB | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | |
Kyivska Rus Bank | MTS Ukraine | MTS Ukraine | Navigation Information Systems | Rent-Nedvizhimost | Intellect Telecom | ||||
RUB | 3G License | 3G License | RUB | RUB | RUB | ||||
RUB | UAH | ||||||||
Subsequent Events | |||||||||
Ownership interest sold (as a percent) | 51.00% | ||||||||
Cash consideration | 3,068 | 4.3 | 344 | ||||||
Percentage of ownership acquired | 89.53% | ||||||||
Consideration paid | 44 | ||||||||
3G license cost | 18,356 | 14,429 | 7,947 | 6,015 | 2,715 | ||||
License period | 15 years | 15 years | |||||||
Launch period | 18 months | 18 months | |||||||
Deposits | 1,170 |