NOTE 14—DISCONTINUED OPERATIONS/NON-CURRENT ASSETS HELD FOR SALE
On March 8, 2016, the TIM Group completed the sale of the remaining interest in Sofora -Telecom Argentina following approval by the Enacom, the Argentinian communications regulatory authority.
The total amount from the transaction was over 960 million USD, including:
| · | 550.6 million USD received on March 8, 2016 for the investment in Sofora-Telecom Argentina. The impact on the statement of cash flows (item “Proceeds from sale that result in a loss of control of subsidiaries or other businesses, net of cash disposed of”) was 492 million euros; |
| · | 50 million USD, also received on March 8, 2016, from other shareholders of Sofora-Telecom Argentina, with respect to ancillary agreements to the transaction; |
| · | 329.5 million USD received previously in connection with sales of investments and other associated assets to Fintech, completed between December 2013 and October 2014; and |
| · | 30 million USD generated by making technical support services available to Telecom Argentina group companies. |
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Below is a summary of the income statement impacts from the Sofora—Telecom Argentina group and its sale. The figures for 2016 have been translated at the average exchange rate for the period January 1 – March 8 (15.7981 pesos per euro), whereas the figures for 2015 have been translated at the annual average exchange rate (10.2689 pesos per euro).
| Year ended December 31, |
1.1-3.8 2016 |
Year ended December 31, |
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| 2017 | 2015 | |||||||||||||||
| (millions of euros) | ||||||||||||||||
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Income statement effects from Discontinued operations/Non-current assets held for sale: |
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Revenues |
— | 504 | 3,943 | |||||||||||||
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Other income |
1 | 4 | ||||||||||||||
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Operating expenses |
(372 | ) | (2,892 | ) | ||||||||||||
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Gains (losses) on disposals of non-current assets |
2 | |||||||||||||||
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Goodwill and other non-current assets net impairment losses |
(22 | ) | ||||||||||||||
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Operating profit (loss) |
— | 133 | 1,035 | |||||||||||||
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Finance income (expenses) |
(42 | ) | (94 | ) | ||||||||||||
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Profit (loss) before tax from Discontinued operations/Non-current assets held for sale |
— | 91 | 941 | |||||||||||||
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Income tax expense |
(32 | ) | (320 | ) | ||||||||||||
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Profit (loss) after tax from Discontinued operations/Non-current assets held for sale |
(A) | — | 59 | 621 | ||||||||||||
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Other minor income statement effects: |
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Other income/(expenses) connected to sales in previous years |
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Other minor entries |
(10 | ) | ||||||||||||||
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| (B) | — | — | (10 | ) | ||||||||||||
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Profit (loss) from Discontinued operations/Non-current assets held for sale |
(C=A+B) | — | 59 | 611 | ||||||||||||
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Income statement effects on the selling entities: |
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Net gains on disposal |
307 | |||||||||||||||
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Transfer to the separate consolidated dated income statement of the Reserve for exchange differences on translating foreign operations |
(304 | ) | ||||||||||||||
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Income tax expense relating to the disposal |
(15 | ) | ||||||||||||||
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| (D) | — | (12 | ) | — | ||||||||||||
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Profit (loss) from Discontinued operations/Non-current assets held for sale |
(C+D) | — | 47 | 611 | ||||||||||||
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Attributable to: |
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Owners of the Parent |
— | (3 | ) | 89 | ||||||||||||
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Non-controlling interests |
— | 50 | 522 | |||||||||||||
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The earnings per share from Discontinued operations/Non-current assets held for sale, for 2016, 2015 and 2014 are shown in the table below:
| Year ended December 31, |
1.1-3.8 2016. |
Year ended December 31, |
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| 2017 | 2015 | |||||||||||
| (Euros) | ||||||||||||
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Basic and Diluted Earnings Per Share (EPS) from Discontinued operations/Non-current assets held for sale (*) |
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Ordinary Share |
— | — | 0.03 | |||||||||
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Savings Share |
— | — | 0.03 | |||||||||
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| (*) | Basic EPS is equal to Diluted EPS. |
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Within the consolidated statements of cash flows the net impacts, expressed in terms of contribution to the consolidation, of the “Discontinued operations/Non-current assets held for sale” are broken down as follows:
| 2017 | 2016 | 2015 | ||||||||||
| (millions of euros) | ||||||||||||
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Discontinued operations/Non-current assets held for sale: |
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Cash flows from (used in) operating activities |
130 | 810 | ||||||||||
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Cash flows from (used in) investing activities |
(117 | ) | (1,058 | ) | ||||||||
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Cash flows from (used in) financing activities |
(58 | ) | 229 | |||||||||
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Total |
— | (45 | ) | (19 | ) | |||||||