Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | ELBIT IMAGING LTD |
Entity Central Index Key | 1,027,662 |
Trading Symbol | EMITF |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,017 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 9,190,808 |
Consolidated Statement Financia
Consolidated Statement Financial Position ₪ in Thousands, $ in Thousands | Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) |
CURRENT ASSETS | |||
Cash and cash equivalents | ₪ 465,739 | $ 134,335 | ₪ 89,688 |
Short-term deposits and investments | 10,495 | 3,027 | 39,527 |
Trade accounts receivables | 34,168 | ||
Other receivables | 7,222 | 2,083 | 13,344 |
Inventories | 1,865 | ||
Current assets | 483,456 | 139,445 | 178,592 |
NON-CURRENT ASSETS | |||
Trading property | 492,619 | 142,088 | 1,310,549 |
Deposits, loans and other long-term balances | 34,874 | 10,058 | 23,484 |
Investments in associates and joint venture | 5,592 | 1,613 | 26,949 |
Property, plant and equipment, net | 830 | 239 | 721,635 |
Non-current assets | 533,915 | 153,998 | 2,082,617 |
Assets | 1,017,371 | 293,443 | 2,261,209 |
CURRENT LIABILITIES | |||
Current maturities of long term borrowings and short-term credits | 780,861 | 225,226 | 1,128,768 |
Suppliers and service providers | 2,720 | 785 | 34,160 |
Payables and other credit balances | 63,293 | 18,255 | 46,699 |
Current liabilities | 846,874 | 244,266 | 1,209,627 |
NON-CURRENT LIABILITIES | |||
Borrowings | 243,311 | 70,179 | 852,870 |
Other liabilities | 75,970 | 21,913 | 57,155 |
Deferred taxes | 92,942 | ||
Non-current liabilities | 319,281 | 92,092 | 1,002,967 |
Commitments, Contingencies, Liens and Collaterals | |||
Shareholders' Equity | |||
Share capital and share premium | 1,105,974 | 319,000 | 1,105,974 |
Reserves | (870,043) | (250,951) | (787,765) |
Retained losses | (430,366) | (124,131) | (406,698) |
Attributable to equity holders of the Company | (194,435) | (56,082) | (88,489) |
Non-controlling interest | 45,651 | 13,167 | 137,103 |
Equity | (148,784) | (42,915) | 48,614 |
Equity and liabilities | ₪ 1,017,371 | $ 293,443 | ₪ 2,261,209 |
Consolidated Statement of Profi
Consolidated Statement of Profit and Loss ₪ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017ILS (₪)₪ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016ILS (₪)₪ / shares | [1] | Dec. 31, 2015ILS (₪)₪ / shares | [1] | |
REVENUES | ||||||
Revenues from sale of commercial centers | ₪ 782,829 | $ 225,794 | ₪ 126,019 | ₪ 200,078 | ||
Total revenues | 782,829 | 225,794 | 126,019 | 200,078 | ||
GAINS AND OTHER | ||||||
Rental income from commercial centers | 31,997 | 9,229 | 66,417 | 83,849 | ||
Gain from sale of investees | 6,712 | |||||
Total gains | 31,997 | 9,229 | 66,417 | 90,561 | ||
Total revenues and gains | 814,826 | 235,023 | 192,436 | 290,639 | ||
EXPENSES AND LOSSES | ||||||
Cost of commercial centers | 805,623 | 232,369 | 159,806 | 290,360 | ||
General and administrative expenses | 14,930 | 4,306 | 10,257 | 16,678 | ||
Share in losses of associates, net | 20,202 | 5,827 | 54,313 | 42,925 | ||
Financial expenses | 112,296 | 32,390 | 124,354 | 207,721 | ||
Financial income | (1,811) | (522) | 1,056 | (2,154) | ||
Change in fair value of financial instruments measured at fair value through profit and loss | (2,707) | 2,568 | ||||
Write-down,charges and other expenses, net | 101,120 | 29,166 | 162,318 | 99,292 | ||
Total expenses and losses | 1,052,360 | 303,536 | 509,397 | 657,390 | ||
Loss before income taxes | (237,534) | (68,513) | (316,961) | (366,751) | ||
Income tax expense | 11,244 | 3,243 | 3,020 | 4,402 | ||
Loss from continuing operations | (248,778) | (71,756) | (319,981) | (371,153) | ||
Profit (loss) from discontinued operations, net | (152,903) | (44,102) | 7,913 | 56,231 | ||
Loss for the year | (401,681) | (115,858) | (312,068) | (314,922) | ||
Attributable to: | ||||||
Equity holders of the Company | (338,034) | (97,500) | (194,830) | (186,150) | ||
Non-controlling interest | (63,647) | (18,358) | (117,238) | (128,772) | ||
Total Attributable | (401,681) | (115,858) | (312,068) | (314,922) | ||
Loss from continuing operations | ||||||
Equity holders of the Company | (185,132) | (53,398) | (202,724) | (242,709) | ||
Non-controlling interest | (63,647) | (18,358) | (117,257) | (128,463) | ||
Loss from continuing operations | (248,778) | (71,756) | (319,981) | (371,153) | ||
Profit from discontinued operation, net | ||||||
Equity holders of the Company | (152,903) | (44,102) | 7,893 | 56,540 | ||
Non-controlling interest | 20 | (309) | ||||
Total profit (loss) from discontinued operation | ₪ (152,903) | $ (44,102) | ₪ 7,913 | ₪ 56,231 | ||
Basic and diluted earnings (loss) per share: | ||||||
From continuing operation | (per share) | ₪ (20.14) | $ (5.8) | ₪ 22.05 | ₪ (21.73) | ||
From discontinued operations | (per share) | (16.64) | (4.8) | (0.85) | 1.48 | ||
Total basic and diluted earnings (loss) per share | (per share) | ₪ (36.78) | $ (10.6) | ₪ (21.20) | ₪ 20.25 | ||
[1] | Reclassified (discontinued operations). Refer to Note 19. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income ₪ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | Dec. 31, 2015ILS (₪) | ||||
Statement of comprehensive income [abstract] | |||||||
Loss for the year | ₪ (401,681) | $ (115,858) | ₪ (312,068) | [1] | ₪ (314,922) | [1] | |
Other comprehensive income to be reclassified to profit or loss in subsequent periods: | |||||||
Exchange differences arising from translation of foreign operations | (13,597) | (3,926) | (33,933) | (91,319) | |||
Gain from cash flow hedge | 1,670 | 2,081 | |||||
Reclassification adjustments relating to foreign operations disposed of in the year | 213,848 | 61,681 | (32,454) | ||||
Other comprehensive income to be reclassified to profit or loss | 200,251 | 57,755 | (32,263) | (121,692) | |||
Items not to be reclassified to profit or loss in subsequent periods: | |||||||
Additions during the year | [2] | 9,763 | 2,816 | 90,410 | 83,582 | ||
Items not to be reclassified to profit or loss | [2] | 9,763 | 2,816 | 90,410 | 83,582 | ||
Other comprehensive income (loss) | 210,014 | 60,571 | 58,147 | (38,110) | |||
Comprehensive loss | (191,667) | (55,287) | (253,921) | (353,032) | |||
Attributable to: | |||||||
Equity holders of the Company | (127,918) | (36,896) | (128,114) | (206,504) | |||
Non-controlling interest | (63,749) | (18,387) | (125,807) | (146,528) | |||
Comprehensive loss | (191,667) | (55,287) | (253,921) | (353,032) | |||
Loss from continuing operations | |||||||
Equity holders of the Company | (198,441) | (57,236) | (211,394) | (206,597) | |||
Non-controlling interest | (63,935) | (18,441) | (127,281) | (143,610) | |||
Loss from continuing operations | (262,376) | (75,677) | (227,675) | [1] | (350,208) | [1] | |
Profit (loss) from discontinued operation, net | |||||||
Equity holders of the Company | 70,895 | 20,449 | 83,279 | (3,226) | |||
Non-controlling interest | (186) | (54) | 1,474 | 402 | |||
Profit (loss) from discontinued operation, net | ₪ 70,708 | $ 20,395 | ₪ 84,753 | [1] | ₪ (2,824) | [1] | |
[1] | Reclassified (discontinued operations). Refer to Note 19. | ||||||
[2] | All amounts are presented net of related tax. |
Statement of Changes in Shareho
Statement of Changes in Shareholders' Equity ₪ in Thousands, $ in Thousands | ILS (₪) | USD ($) | Share capital and premiumILS (₪) | Share capital and premiumUSD ($) | Other reservesILS (₪) | [1] | Other reservesUSD ($) | [1] | Revaluation of property, plant and equipmentILS (₪) | Revaluation of property, plant and equipmentUSD ($) | Stock-based compensation reserveILS (₪) | Stock-based compensation reserveUSD ($) | Foreign currency translation reserveILS (₪) | Foreign currency translation reserveUSD ($) | Retained lossesILS (₪) | Retained lossesUSD ($) | Attributable to shareholders of the companyILS (₪) | Attributable to shareholders of the companyUSD ($) | Non- Controlling interestILS (₪) | Non- Controlling interestUSD ($) | |
Beginning balance at Dec. 31, 2014 | ₪ 713,237 | ₪ 1,055,056 | ₪ (201,848) | ₪ 130,549 | ₪ 49,527 | ₪ (734,176) | ₪ (67,129) | ₪ 231,979 | ₪ 481,258 | ||||||||||||
Loss for the year | (314,922) | [2] | (186,150) | (186,150) | (128,772) | ||||||||||||||||
Other comprehensive income (loss) | (38,110) | 8,007 | 60,783 | (109,649) | 20,504 | (20,355) | (17,756) | ||||||||||||||
Stock based compensation expenses | 670 | 845 | 845 | (175) | |||||||||||||||||
Transaction with non-controlling interest | (58,143) | (148,066) | 37,413 | 94,933 | 8,142 | (7,578) | (50,565) | ||||||||||||||
Expiration of options held by minority | 1,333 | 546 | 546 | 787 | |||||||||||||||||
Cancelation of treasury stock and old stock | 50,918 | (50,918) | |||||||||||||||||||
Ending balance at Dec. 31, 2015 | 304,064 | 1,105,974 | (341,907) | 228,745 | (748,892) | (224,633) | 19,287 | 284,777 | |||||||||||||
Loss for the year | (312,068) | [2] | (194,830) | (194,830) | (117,238) | ||||||||||||||||
Other comprehensive income (loss) | 58,147 | 2,015 | 76,025 | (24,089) | 12,765 | 66,716 | (8,569) | ||||||||||||||
Stock based compensation expenses | 176 | 27 | 27 | 149 | |||||||||||||||||
Transaction with non-controlling interest | (1,705) | 40,903 | (27,369) | 13,534 | (15,239) | ||||||||||||||||
Forfeiture of stock options granted | 6,777 | 6,777 | (6,777) | ||||||||||||||||||
Ending balance at Dec. 31, 2016 | 48,614 | $ 14,022 | 1,105,974 | $ 319,000 | (292,212) | $ (84,284) | 304,770 | $ 87,906 | 27 | $ 8 | (800,350) | $ (230,848) | (406,698) | $ (117,305) | (88,489) | $ (25,523) | 137,103 | $ 39,545 | |||
Loss for the year | (401,681) | (115,858) | (338,034) | (97,500) | (338,034) | (97,500) | (63,647) | (18,358) | |||||||||||||
Other comprehensive income (loss) | 210,014 | 60,571 | (1,960) | (565) | 200,518 | 57,836 | 11,556 | 3,333 | 210,114 | 60,604 | (100) | (29) | |||||||||
Stock based compensation expenses | 702 | 202 | 199 | 57 | 302,810 | 199 | 57 | 503 | 145 | ||||||||||||
Disposal as a result of sale of subsidiary | (6,433) | (1,856) | (302,810) | (87,341) | 87,341 | (6,433) | (1,856) | ||||||||||||||
Change in holding rate in subsidiary | 1,537 | 443 | 1,537 | 443 | (1,537) | (443) | |||||||||||||||
Forfeiture of stock options granted | 20,238 | 5,837 | 20,238 | 5,837 | (20,238) | (5,837) | |||||||||||||||
Ending balance at Dec. 31, 2017 | ₪ (148,784) | $ (42,915) | ₪ 1,105,974 | $ 319,000 | ₪ (270,437) | $ (78,004) | ₪ 226 | $ 65 | ₪ (599,832) | $ (173,012) | ₪ (430,366) | $ (124,131) | ₪ (194,435) | $ (56,082) | ₪ 45,651 | $ 13,167 | |||||
[1] | Includes transactions with non-controlling interest reserve and hedging reserve. | ||||||||||||||||||||
[2] | Reclassified (discontinued operations). Refer to Note 19. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows ₪ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | Dec. 31, 2015ILS (₪) | |||
Cash Flows From Operating Activities | ||||||
Loss for the year | ₪ (401,681) | $ (115,858) | ₪ (312,068) | [1] | ₪ (314,922) | [1] |
Adjustments to profit (loss): | ||||||
Tax expenses recognized in profit and loss | 11,164 | 3,220 | 2,906 | 5,631 | ||
Finance expenses recognized in profit and loss, net | 344,434 | 99,346 | 142,336 | 239,598 | ||
Income tax paid in cash | (1,856) | (535) | (803) | (509) | ||
Depreciation, amortization and other (including impairment) | 119,694 | 34,524 | 196,141 | 123,145 | ||
Realization of foreign currency translation reserve in connection with sale operations | (56,063) | |||||
Profit from realization of subsidiary (Appendix A) | (56,544) | (16,309) | (4,147) | |||
Profit from realization of investments in associates and joint venture | (6,713) | |||||
Share in losses of associates, net | 20,202 | 5,827 | 54,312 | 42,925 | ||
Profit from realization of assets and liabilities | (3,204) | (924) | (7,973) | (4,872) | ||
Stock based compensation expenses | 719 | 207 | 189 | 1,047 | ||
Other | (759) | (219) | (412) | (488) | ||
Change in trade accounts receivables | 10,000 | 2,884 | (22,797) | 3,415 | ||
Change in receivables and other debit balances | (21,657) | (6,247) | 61 | 10,968 | ||
Change in Inventories | 187 | 54 | 106 | (118) | ||
Change in trading property | 385,127 | 111,084 | 18,708 | 181,680 | ||
Change in suppliers and service providers | (1,301) | (375) | 20,929 | (7,095) | ||
Change in payables and other credit balances | 29,287 | 8,447 | (14,605) | (13,241) | ||
Net cash provided by operating activities of continuing operations | 433,812 | 125,126 | 77,030 | 193,367 | ||
Net cash used in discontinued operating activities | (2,014) | |||||
Net cash provided by operating activities | 433,812 | 125,126 | 77,030 | 191,353 | ||
Cash flows from investing activities | ||||||
Proceeds from realization of investments in subsidiaries (a) | 442,708 | 127,693 | 192,026 | |||
Proceeds from realization of investments in associates and joint venture | 1,983 | 572 | 83,792 | 76 | ||
Purchase of property plant and equipment, and other assets | (4,095) | (1,181) | (2,872) | (23,630) | ||
Proceeds from realization of property plant and equipment | 3,635 | 1,048 | 22,278 | 12,916 | ||
Proceed from realization of long-term deposits and long-term loans | 1,085 | 313 | 7,128 | 10,197 | ||
Investment in long-term deposits and long-term loans | 974 | 281 | (10,851) | |||
Interest received in cash | 328 | 1,404 | ||||
Change in short-term deposits and marketable securities, net and changes in restricted cash | 12,916 | 3,725 | (9,917) | 5,070 | ||
Net cash provided by continued investing activities | 459,206 | 132,451 | 89,886 | 198,059 | ||
Net cash provided by discontinued investing activities | 37,737 | |||||
Net cash provided by investing activities | 459,206 | 132,451 | 89,886 | 235,796 | ||
Cash flows from financing activities | ||||||
Interest paid in cash | (75,584) | (21,801) | (107,297) | (129,350) | ||
Purchase of non-controlling interest | (701) | (62,059) | ||||
Proceeds from long-term borrowings | 16,364 | 4,720 | 204,615 | |||
Repayment of long-term borrowings | (460,523) | (132,830) | (332,553) | (377,406) | ||
Proceeds (payments) from hedging activities through sale of options and forwards | 2,677 | (1,610) | ||||
Repayment of short-term credit | (6,997) | |||||
Net cash used in continued financing activities | (519,743) | (149,911) | (233,259) | (577,422) | ||
Net cash used in discontinued financing activities | (2,135) | |||||
Net cash used in financing activities | (519,743) | (149,911) | (233,259) | (579,557) | ||
Increase (decrease) in cash and cash equivalents | 373,275 | 107,665 | (66,343) | (152,408) | ||
Cash and cash equivalents at the beginning of the year | 89,688 | 25,869 | 157,851 | 323,182 | ||
Cash and cash equivalents related to discontinued operations at the end of the year | ||||||
Net effect on cash due to currency exchange rate changes | 2,776 | 801 | (1,820) | (12,923) | ||
Cash and cash equivalents at the end of the year | 465,739 | 134,335 | 89,688 | 157,851 | ||
Proceeds from realization of investments in subsidiaries: | ||||||
Working capital (excluding cash), net | 1,426 | 411 | (15,591) | |||
Long term deposits | 9,302 | 2,683 | ||||
Property, plant equipment and other assets | 705,809 | 203,579 | 203,470 | |||
Bank loans | (231,631) | (66,810) | ||||
Deferred taxes | (92,309) | (26,625) | ||||
Non- controlling interests | (6,433) | (1,855) | ||||
Profit from realization of subsidiaries | 56,544 | 16,309 | 4,147 | |||
Proceeds from realization of investments in subsidiaries, total | ₪ 442,708 | $ 127,692 | ₪ 192,026 | |||
[1] | Reclassified (discontinued operations). Refer to Note 19. |
General
General | 12 Months Ended |
Dec. 31, 2017 | |
General [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. Elbit Imaging Ltd. (“the Company”) was incorporated in Israel. The Company’s shares are registered for trade on the Tel Aviv Stock Exchange and in the United States on the NASDAQ Global Select Market. Following debt restructuring plan approved in 2014 the Group main focus is to reduce corporate debt by early repayments following sale of assets and to continue with efficiency measures and cost reduction where possible. b. The Group engages, directly and through its investee companies, in Israel and abroad, mainly in the following areas: ● Medical industries and devices ● Plots in India ● Plots in Eastern Europe initially designated for development of commercial centers ● With regards to the sale of Radisson hotel Complex in Bucharest Romania on December 18, 2017, see note 19. Accordingly, this operation is presented in these financial statements as discontinued operation. c. Financial position as of December 31, 2017: As of the financial statements’ approval date, the Company’s standalone financial position includes liabilities to Series H and Series I notes in the aggregate principal amount of approximately NIS 271 million. An amount of approximately NIS 50 million (principal plus future accrued interest) is due to Series H notes until May 30, 2018. The remaining amount of approximately NIS 250 million (principal plus future accrued interest) will become due until November 2019. In addition, until November 2019 the Company has certain operational expenses and other current liabilities for its ongoing operations in the amount of approximately NIS 28 million. The Company has prepared a projected cash flow that outlines the relevant resources until November 2019 that are expected to serve the repayments to Series H and I notes which includes the following resources : (i) cash and cash equivalents (on a standalone basis) of approximately NIS 113 million; (ii) proceeds from payments on account of the sale of the Company’s plot in Bangalore (India) in the amount of approximately NIS 51 million based on the current valuation which is lower than the sale agreement signed on March 2018 as mentioned in note 4 d.; (iii) proceeds from the Company’s plot in Chennai in the amount of NIS 28 million based on the current valuation of the plot (iv) proceeds from sale of the Company’s shares in Elbit Medical The Company’s management and board of directors are of the opinion, based on the projected cash flow and the assumptions described, that the Company can execute its plans and that it would be able to serve its indebtedness in the foreseeable future. In light of the foregoing, the Company’s management and board of directors are of the opinion that no significant doubts exist as to the Company’s ability to act as going concern. d. Financial position as of December 31, 2015: Within the Company’s consolidated financial statements as of December 31, 2015 which was published on March 30, 2016, the Company has included, inter alia, note with respect to its financial position which stated that the Company had prepared a projected cash flow until June 2018, which included the anticipated sources that to the Company’s estimation, were expected to serve the repayment of its financial liabilities. As of December 31, 2015 the Company’s Board of directors was of the opinion, based on the projected cash flow, that the Company can execute its plans and that it would be able to serve its indebtedness in the foreseeable future. In light of the foregoing, the Company’s board of directors was of the opinion that, the Company is a going concern and hence, the consolidated financial statements of the Company as of December 31, 2015 were prepared based on going concern assumption. f. Definitions: The Company - Elbit Imaging Group - The Company and its Investees Investees - Subsidiaries, joint ventures and associates PC - Plaza Centers N.V. Group, a subsidiary of the Company, which in past operated mainly in the field of commercial centers and is traded in the Main Board of the London Stock Exchange, the Warsaw stock Exchange (“WSE”) and Tel Aviv Stock Exchange. As of December 31, 2017, the Company holds 44.9% in PC. Elbit Medical - Elbit Medical Technologies Ltd., a public Israeli company traded on the Tel Aviv Stock Exchange. As for December 31, 2017, the Company holds approximately 89% of Elbit Medical share capital (88.7% on a fully diluted basis). Related parties - As defined in International Accounting Standard (“IAS”) no. 24 see note 17. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES a. Statement of compliance: The audited consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRSs”) as issued by the International Accounting Standards Board (“IASB”). b. Basis for preparation: The audited consolidated financial statements have been prepared on the historical cost basis except for (i) financial instruments measured at fair value; (ii) certain trading property measured at net realizable value (see note 2w.(1)a.); and (iii) certain property, plant and equipment (hotels) were presented until their disposal at the revaluation model (based on fair value). The principal accounting policies are set out below. c. Presentation of the income statements: The Group operations are characterized by diverse activities. Accordingly, management believes that its income statements should be presented in the “Single - step form”. According to this form, all costs and expenses (including general and administrative and financial expenses) should be considered as continuously contributing to the generation of the overall revenues and gains. Management also believes that its operating expenses should be classified by function to: (i) those directly related to each revenue (including general and administrative expenses and selling and marketing expenses relating directly to each operation); and (ii) overhead expenses which serve the business as a whole and are to be determined as general and administrative expenses. d. Convenience translation: The balance sheet as of December 31, 2017, and statement of income, statement of other comprehensive income, statement of changes in shareholders’ equity and statement of cash flows for the year then ended have been translated into USD using the representative exchange rate as of that date (USD 1= NIS 3.467). Such translation was made solely for the convenience of the U.S. readers. The USD amounts so presented in these financial statements should not be construed as representing amounts receivable or payable in USD or convertible into dollars but only a convenience translation of reported NIS amounts into USD, unless otherwise indicated. The convenience translation supplementary financial data is audited and is not presented in accordance with IFRSs. e. Operating cycle: The Group is unable to clearly identify its actual operating cycle with respect to trading property. As such, the Group’s operating cycle relating to trading property and corresponding borrowings is 12 months. Trading property and borrowings associated therewith are presented as non-current assets and non-current liabilities, respectively. f. Basis for consolidation: 1. Assessment of control: The audited consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (“Subsidiaries”). Control is achieved where the Company: ● Has the power over the investee; ● Is exposed, or has rights, to variable returns from its involvement with the investee; ● Has the ability to use its power to affect its returns. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. As for de facto control of the Company in PC see w (2) below. 2. Changes in the Group’s ownership interests in existing subsidiaries: Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company. g. Investments in associates and joint ventures: An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. The results and assets and liabilities of associates or joint ventures are incorporated in these audited consolidated financial statements using the equity method of accounting. Under the equity method, an investment in an associate or a joint venture is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate or joint venture. When the Group’s share of losses of an associate or a joint venture exceeds the Group’s interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate or joint venture), the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee becomes an associate or a joint venture. On acquisition of the investment in an associate or a joint venture, any excess of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognized as goodwill, which is included within the carrying amount of the investment. In circumstances where the Group’s interest in an investee company is in the form of mixed securities (such as ordinary shares, preferred shares or other senior securities, or loans), the Group records equity losses in excess of the Group’s investment in the ordinary shares of the investee based on the priority liquidation mechanism, that is, allocating the loss to the other components in reverse order to their seniority in liquidation. Where necessary, adjustments are made to the financial statements of associates to adjust their accounting policies with those of the Company. The requirements of IAS 39 are applied to determine whether it is necessary to recognize any impairment loss with respect to the Group’s investment in an associate or a joint venture. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases. h. Foreign currency: 1. Foreign currency transactions: The financial statements of each individual entity of the Group are presented based on its functional currency. Transactions in currencies other than each individual entity’s functional currency (foreign currency) are translated into that entity’s functional currency based on the foreign exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency using the foreign exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the historical exchange rate prevailing at the date of the transaction. Non-monetary assets and liabilities carried at fair value that are denominated at foreign currency are translated at the exchange rates prevailing at the date when the fair value was determined. Exchange rate differences as a result of the above are recognized in statement of income, except for: (i) exchange rate differences charged to foreign currency translation reserve (see (2) below); and (ii) exchange rate differences charge to revaluation of property plant and equipment carried at fair value (see l below) 2. Financial statements of foreign operations: For the purpose of the audited consolidated financial statements, the assets and liabilities of foreign operations (the functional currency of each foreign operation is the currency of the primary economic environment in which it operates) are translated to New Israeli Shekels (“NIS”) which is the functional currency and the presentation currency of the Company, based on the foreign exchange rates prevailing at the balance sheet date. The revenues and expenses of foreign operations are translated to the functional currency of the Company based on exchange rates as at the date of each transaction or for sake of practicality using average exchange rates for the period. Foreign exchange rate differences arising from translation of foreign operations are recognized directly to foreign currency translation reserve within other comprehensive income. Exchange rate differences attributable to monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur, which form part of the net investment in a foreign operation are also included in the foreign currency translation reserve. On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, a disposal involving loss of joint control over a jointly controlled entity that includes a foreign operation, or a disposal involving loss of significant influence over an associate that includes a foreign operation), all of the exchange differences accumulated in the equity reserve in respect of that operation attributable to the owners of the Company are reclassified to profit or loss. In the case of a partial disposal that does not result in loss of control by the Group over a subsidiary that includes a foreign operation, the proportionate share of accumulated exchange differences are re-attributed to or from non-controlling interests and are not recognized in profit or loss. For all other partial disposals (i.e. reductions in the Group’s ownership interest in associates or jointly controlled entities that do not result in the Group losing significant influence or joint control), the proportionate share of the accumulated exchange differences is reclassified to profit or loss. 3. Rates of exchange of NIS, in effect, in relation to foreign currency (in NIS) are as follows: December 31 2017 2016 USD ($) 3.467 3.845 EURO ( 4.153 4.044 Romanian New Lei (RON) 0.8912 0.8905 Indian Rupee (INR) 0.0544 0.0565 Scope of change in the exchange rate, in effect, of the NIS in relation to the foreign currencies (%): December 31, 2017 2016 2015 USD ($) (10 ) (1 ) - EURO ( 3 (5 ) (10 ) Romanian New Lei (RON) (3 ) (5 ) (11 ) Indian Rupee (INR) (4 ) (4 ) (5 ) i. Cash and cash equivalents: Cash equivalents include unrestricted readily convertible to a known amount of cash, maturity period of which, as at the date of investments therein, does not exceed three months. j. Financial assets: Financial assets of the Group are classified mainly as loans and receivables. Financial assets are initially measured at fair value Loans and receivable consist of trade receivables, deposits in banks, and financial institutions, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market. Loans and receivables are measured at amortized cost using the effective interest method less any impairment. Interest income is recognized by applying the effective interest rate, except for short-term receivables where the recognition of interest is considered immaterial. k. Trading property Real estate properties for future sale are classified as trading properties and are stated at the lower of cost and net realizable value. Net realizable was determined based on the residual method using the estimated selling price less cost for completion and executing the sale discounted in the applicable discount rate without taking into account the developer’s profit and assuming that marketing period is restricted to a period which is lower than the normal one Costs of trading properties include costs directly associated with their purchase (including payments for the acquisitions of leasehold rights and borrowing cost and all subsequent direct expenditures for the development and construction of such properties. Cost of trading property is determined mainly on the basis of specific identification of their individual costs. As for borrowing costs capitalized to trading property - see s below. As for write down of trading property - see (w1a) below. As for the operating cycle of trading property - see e above. l. Property plant and equipment: 1. The Group’s hotel was presented in the consolidated balance sheets according to the revaluation model. Revaluations are carried out on a regular basis (generally each half year). A change in the value of the hotel resulting from revaluation or from exchange rate differences is attributable to other comprehensive income (any revaluation reserve is net of applicable deferred taxes). The reserve derived from the revaluation of the hotel is transferred to retained earnings over the period for which the hotel is used by the Group. The transferred amounts equal the difference between the depreciation charge based on the revalued carrying amounts of the hotel and the depreciation charge based on the hotels’ original cost. When a revaluated hotel is sold, the remaining amount in the revaluation reserve with respect to the same hotel (including any tax expenses) is directly transferred to retained earnings. Other property plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Improvements and renovations are charged to cost of assets. Maintenance and repair costs are charged to the statement of income as incurred. 2. Depreciation is calculated by the straight-line method over the assets estimated useful lives. Leasehold improvements are amortized over the estimated useful period of use not exceeding the lease period (including the period of renewal options that the Group intends to exercise). Annual depreciation rates are as follows: % Hotel 5 Other buildings 2.0 - 2.5 Building operating systems 7.0 (average) Others (*) 6.0 - 33.0 (*) Consists mainly: office furniture, machinery and equipment, electronic equipment, computers and peripheral equipment. m. Income taxes: Income tax expense represents the sum of the tax currently payable and deferred tax. Current taxes: Tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are non-taxable or deductible for tax purposes. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted as of the balance sheet date. Deferred taxes: Deferred taxes are calculated in respect of all temporary differences, including (i) differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit; and (ii) tax losses and deductions that may be carried forward for future years or carried backwards for previous years. Deferred taxes are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. The calculation of deferred tax liabilities does not include taxes that would have arisen in the event of a realization of investments in certain investee companies or upon receiving their retained earnings as dividends, since it is management’s policy not to realize these investees nor to declare dividend out of their retained earnings, or other form of profit distributions, in the foreseeable future, in a manner which entails additional substantial tax burden on the Group. For certain other Group’s investee companies, which management’s intention is to realize or to distribute their retained earnings as taxable dividend, tax liabilities (current and deferred) are recorded. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is to be settled or the asset is to be realized, based on tax rates and laws that have been enacted or substantively enacted as of the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax asset is recorded to the extent that it is probable that it would be realized against future taxable profits. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered in the future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Current and deferred taxes are recognized as an expense or income in profit or loss, except when they relate to items credited or debited directly to equity or in other comprehensive income, in which case the tax effect is also recognized directly in equity or in other comprehensive income; n. Financial liabilities and equity instruments issued by the Group: Equity instruments: An equity instrument is any contract that represents a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issuance costs. Financial liabilities: Financial liabilities at amortized cost of the Group consist of short-term credits, current maturities of long-term borrowing suppliers and service providers, borrowings and other payables, which are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortized cost using the effective interest method, unless recognition of interest is immaterial. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating the interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability or, when appropriate, a shorter period to the net carrying amount of the financial liability. When calculating the effective interest rate, the Group estimates cash flows considering all contractual terms of the financial liability (for example, prepayment, call and similar options). The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts. When the Group revises its estimates of payments, it adjusts the carrying amount of the financial liability to reflect actual and revised estimated cash flows. The Group recalculates the carrying amount by computing the present value of estimated future cash flows at the financial liability’s original effective interest rate. The adjustment is recognised in profit or loss as a financial expense. The Company has Consumer Price Index (“CPI”)-linked financial liabilities that are not measured at fair value through profit or loss. For these liabilities, the Company determines the effective interest rate as a real rate plus linkage differences according to the actual changes in the CPI through each balance sheet date. Rate of decrease in the Israeli CPI in 2016 was 0.3% (2015- decrease of 0.9%; 2014 - increase of 0.1%). Buyback of notes and loans: The Group derecognizes a financial liability from its statement of financial position when repurchasing its notes or its loans. The difference between the carrying amount of the notes or the loans repurchased at the repurchase date and the consideration paid is recognized in profit or loss. o. Derivative financial instruments and hedge accounting: The Group enters into a variety of derivative financial instruments, some of which are intended to mitigate its exposure to interest rate and foreign exchange rate risks, including interest rate swaps and cross currency swaps. Further details of derivative financial instruments are disclosed in note 20. Derivatives are initially recognized at fair value at the date the derivative contract is entered into and are subsequently re-measured at their fair value each balance sheet date. The resulting gain or loss from a derivative is immediately recognized in profit and loss. A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the derivative is more than 12 months and as a current asset or a current liability if the remaining maturity of the derivative is less than 12 months. p. Provisions: Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is more likely than not (probable) that the Group will be required to settle the obligation, and a reliable estimate can be measured with respect to the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation as of the balance sheet date, taking into account the risks and uncertainties associated with the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the result of the discounted expected cash flows, as long as the effect of discounting is material. q. Share-based payments: Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instrument at the grant date. The Fair value is measured using the Black and Scholes (“B&S”) model except for capped-Stock Appreciation Rights (“SAR”) for which the Group is using the binomial model. The expected life used in the B&S model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis for each award over the vesting period, based on the Group’s estimate of shares that will eventually vest. r. Revenue recognition: General - The Group recognizes revenue and gains when the amount of revenue, or gain, can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group’s activities as described below. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and specifics of each arrangement. 1. Rental income from commercial centers - Revenues from leasing of property and management fees, as well as rental income relating to the operations of commercial centers are measured at the fair value of the consideration received or receivable. The lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease. The leases generally provide for rent escalations throughout the lease term. For these leases, the rental income is recognized on a straight line basis so as to produce a constant periodic rent over the term of the lease. Accordingly, accrued rental income recognized on a straight line basis, represents unbilled rent receivables that the Group will receive only if the tenant makes all rent payments required through the expiration of the initial term of the lease. The leases may also provide for contingent rent based on a percentage of the lessee’s gross sales or contingent rent indexed to further increases in the Consumer Price Index (CPI). For contingent rentals that are based on a percentage of the lessee’s gross sales, the Group recognizes contingent rental income when the change in the factor on which the contingent lease payment is based, actually occurs. Rental income for lease escalations that are indexed to future increases in the CPI, are recognized once the changes in the index have occurred. 2. Revenues from hotel operations are recognized upon performance of service. 3. Revenues and Gains from sales of real estate assets (including hotels), property, plant and equipment and trading properties are recognized when all the following conditions are satisfied: a) the Group has transferred to the buyer the significant risks and rewards of ownership of the asset sold; b) the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the asset sold; c) the amount of income can be measured reliably; d) it is probable that the economic benefits associated with the transaction will flow to the Group (including the fact that the buyer’s initial and continuing investment is adequate to demonstrate commitment to pay); e) the costs incurred or to be incurred in respect of the transaction can be measured reliably; and f) there are no significant acts that the Group is obliged to complete according to the sale agreement. For the Group, these conditions are usually fulfilled upon the closing of a binding sale contract. s. Capitalization of borrowing costs: Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized to the cost of those assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get it ready for its intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Borrowing costs qualified for capitalization include mainly: Interest expenses and amortization of cost of raising debt. Capitalization of borrowing costs to qualifying assets commences when the Group starts the activities for the preparation of the asset for its intended use or sale and continues, generally, until the completion of substantially all the activities necessary to prepare the asset for its designated use or sale (i.e. when the commercial center is ready for lease). In certain cases, the Group ceases to capitalize borrowing cost if management decides that the asset can no longer be defined as a “qualifying asset”. In other circumstances, capitalization is suspended for certain time periods, generally where the efforts to develop a project are significantly diminished due to inter-alia lack of external finance, or ongoing difficulties in obtaining permits. The conclusions whether an asset is qualified for capitalization or not, or whether capitalization is to be suspended, are also dependent on management plans with regard to the specific asset, such as the ability to raise bank loans, find anchors and local market conditions that support or postpone the construction of the project. t. Earning (loss) per share: The Company presents basic and diluted earnings (loss) per share with respect to continued and discontinued operation. Basic earnings per share is computed by dividing income (loss) attributable to holders of ordinary shares of the Company, by the weighted average number of the outstanding ordinary shares during the period. In the computation of diluted earnings per share, the Company adjusts its income (loss) attributable to its ordinary shareholders for its share in income (loss) of investees by multiplying their diluted earnings per share by the Company’s interest in the investees including its holding in dilutive potential ordinary shares of the investees. In addition, the Company adjusts the weighted average outstanding ordinary shares for the effects of all the dilutive potential ordinary shares of the Company. On June 27, 2016, the Company executed reverse share split of its ordinary shares, therefore the earnings (loss) per share for previous periods was retrospectively adjusted. See also note 14. u. Statement of cash flows: Investments in, and payments on account of, trading property are included as cash flow from operating activities. Interest and dividend received from deposits and investments are included as cash flow from investing activities. Interest paid on the Group’s borrowings (including interest capitalized to qualifying assets) and cash flows arising from changes in ownership interests in a subsidiary that do not result in a loss of control are included as cash flow from financing activities. v. Discontinued operation: A discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly distinguished from the rest of the Group and which: (1) Represents a separate major line of business or geographical area of operations; (2) Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or (3) Is a subsidiary acquired exclusively with a view to re-sale. Classification as a discontinued operation occurs on disposal or when the operation meets the criteria to be classified as held-for-sale, if earlier. When an operation is classified as a discontinued operation, the comparative statement of comprehensive income and cash flow is re-presented as if the operation had been discontinued from the start of the comparative year. w. Critical judgment in applying accounting policies and use of estimates: In the application of the Group’s accounting policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis, and revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. In addition, in the process of applying the Group’s accounting policies, management makes various judgments, apart from those involving estimations, that can signi |
Deposits, Receivables and Other
Deposits, Receivables and Other Investments | 12 Months Ended |
Dec. 31, 2017 | |
Deposits Receivables And Other Investments [Abstract] | |
DEPOSITS, RECEIVABLES AND OTHER INVESTMENTS | NOTE 3:- DEPOSITS, RECEIVABLES AND OTHER INVESTMENTS a. Short-term deposits and investments December 31 2017 2016 NIS in thousands Deposits at banks: EURO (1) - 26,795 NIS (2) 6,463 6,426 Other restricted deposits (3) - 2,215 6,463 35,436 Available for sale financial assets 4,032 4,091 10,495 39,527 (1) As of December 31, 2016, EUR 4 million (NIS 16 million) and EUR 2.5 million (NIS 10 million) is restricted mainly in respect of bank facilities agreements signed to finance Projects in Poland and Serbia, respectively. During 2017 the project’s companies have been sold. (2) As of December 31, 2017 and December 31, 2016 NIS 4.6 million and NIS 4 million respectively is restricted due to the Company’s settlement agreement as described in note 13a1 (3) As of December 31, 2016 Euro 0.5 million (NIS 2 million) is secured tenants deposit in respect of Suwalki and Torun malls that were sold during 2017. b. Trade account receivable December 31, 2017 2016 Trade receivables (1) - 38,210 Less - Allowance for doubtful debts - (4,042 ) - 34,168 (1) In December 31, 2016 Includes EUR 5.6 million (NIS 23 million) from sale of plots see also note 4c3. c. Other Receivables December 31 2017 2016 NIS in thousands Income taxes 1,258 1,298 Governmental institutions 936 6,362 Advance to suppliers - 525 Prepaid expenses 1,818 3,510 Interest to receive 46 514 Other 3,164 1,135 7,222 13,344 d. Deposits and other long-term balances December 31, 2017 2016 NIS in thousands Deposits at banks (1) - 11,453 Available for sale financial assets 1,596 1,596 Vendor loan (see note 19) 33,221 - Prepaid expenses - 7,064 Other 57 3,371 34,874 23,484 (1) Was deducted in 2017 due to the sale of the Company’s subsidiary that holds the Radisson Complex (see note 19). |
Trading Property
Trading Property | 12 Months Ended |
Dec. 31, 2017 | |
Trading Proprerty [Abstract] | |
TRADING PROPERTY | NOTE 4:- TRADING PROPERTY a. Composition: December 31, 2017 2016 NIS in thousands Balance as of January, 1 1,310,549 1,467,760 Construction costs (1) 7,895 108,511 Disposal during the year (2) (736,484 ) (158,786 ) Write-down to net realizable value (see b below ) (92,398 ) (196,333 ) Firstly consolidated entity (see note 4d2 ) - 154,598 Foreign currency translation adjustments 3,057 (65,201 ) Balance as of December, 31 492,619 1,310,549 (1) 2017 and 2016 - mainly due to construction activities in Serbia. (2) As for disposition of trading properties in 2017 see c2- c10 below. Composition of trading property per stages of development: December 31, 2017 2016 NIS in thousands Projects designated for development - 226,449 Other trading properties 492,619 1,084,100 Total 492,619 1,310,549 b. Additional information: Composition of trading property distinguished between freehold and leasehold rights: December 31, 2017 2016 NIS in thousands Freehold 212,075 973,217 Leasehold 280,544 337,332 492,619 1,310,549 Write down trading properties per project: Year ended 2017 2016 NIS in thousands Project name (City, Country) Chennai (Kadavantara, India) (see d1 below) 7,879 24,564 Bangalore (Aayas, India) (see d2 below) 35,178 - Helios Plaza (Athens, Greece) - 2,992 Lodz Plaza (Lodz, Poland) 4,983 1,618 Krusevac (Krusevac, Serbia) 1,661 809 Casa radio (Bucharest, Romania) (See c1 below) 41,946 137,117 Constanta (Constanta, Romania) - 3,445 Ciuc (Ciuc, Romania) - 3,842 Timisoara (Timisoara, Romania) - 10,514 Lodz residential (Lodz, Poland) 415 - Kielce (Kielce, Poland) - 4,448 BAS (Romania) - 3,235 Arena Plaza extention (Budapest, Hungary) 336 3,749 92,398 196,333 Change in provision in respect to PAB (1,641 ) (6,741 ) 90,757 189,592 The 2017 write-downs were caused mainly due to the following factors: - EUR 1.2 million (NIS 5 million) of write-down in Lodz Plaza project, Poland, which reflects a discount rate of 30% on the market value under special assumption that the marketing period is limited to 12-15 months. EUR 9.7 million (NIS 40 million) of write-down (net of change in provision in respect to PAB) in Casa Radio project, Romania due to the following: a slight increase in construction cost, a slight decrease in financing interest rate, prolongation of lead-in period in half a year and an increase in the discount factor for restricted marketing period from 25% to 35%. As compared to 2016, deals take longer to exchange as the level of due diligence and scrutiny is heightened domestically and internationally. As a consequence a restricted marketing period would have a marked impact on the realizable value as a greater discount would be sought by a purchaser. c. Additional information in respect of PC’s trading property: 1. Casa radio: One of PC’s most significant projects under development is the Casa radio project in Bucharest, Romania. The Casa radio Project cost in the Group’s financial statements as of December 31, 2017, amount to NIS 263 million (2016 - NIS 296 million). In 2006 PC entered into an agreement according to which it acquired 75% interest in a company (“Project SPV”) which is under a PPP agreement with the Government of Romania to develop the Casa radio site in the center of Bucharest (“Project”). After signing the PPP agreement, PC holds indirectly 75% of the shares in the Project SPV, the remaining 25% are held by the Romanian authorities (15%) and a third party private investor (10%). As part of the PPP, the Project SPV was granted with development and exploitation rights in relation to the site for a period of 49 years, starting December 2006 (37 years remaining at the end of the reporting period). As part of its obligations under the PPP, the Project SPV has committed to construct a Public Authority Building (“PAB”) measuring approximately 11.000 square meters for the Romanian Government at its own cost. Large scale demolition, design and foundation works, financed by loans given to the Project SPV by PC were performed on the construction site until 2010, when current construction and development was put on hold due to lack of progress in the renegotiation of the PPP agreement with the Authorities, as discussed in subsection (c) below, and the global financial crisis. These circumstances (and mainly the bureaucratic deadlock with the Romanian Authorities to deal with the issues specified below caused the Project SPV not to meet the development timeline of the Project, as specified in the PPP. However, PC management believes that it had legitimate reasons for the delays in this timeline, as discussed in subsection (c) below. a) Obtaining of the Detailed Urban Plan (“PUD”) permit The Project SPV obtained the PUD related to this project in September 2012. Furthermore, on December 13, 2012, the Court took note of the waiver of the claim submitted by certain plaintiffs and rejected the litigation aiming to cancel the approval of the Zonal Urban Plan (“PUZ”) related to the Project. The court decision is irrevocable. As the PUD is based on the PUZ, the risk that the PUD would be cancelled as a result of the cancellation of the PUZ was removed following the date when the PUZ was cleared in court on December 13, 2012. b) Discussions with authorities on construction time table deferral Following the Court decision with respect to the PUZ, the Project SPV was required to submit a request for building permits within 60 days from the approval date of the PUZ/PUD and commence development of its project within 60 days after obtaining the building permit. The building permits have not been obtained. However, due to substantial differences between the approved PUD and stipulations in the PPP agreement as well as changes in the EU directives concerning environmental considerations in buildings used by public authorities the Project SPV attempted to renegotiate the future development of the Project with the Romanian Authorities on items such as time table, structure and milestones as well as adaptation of the PAB development to the current EU requirements. Despite many notifications sent to the Romanian Authorities expressing a wish to renegotiate the existing PPP agreement no major breakthrough could be achieved. PC could be subject to significant delay penalties under the terms of the PPP agreement if it is determined that PC was at fault in causing the delays. Because of the failure of the public authorities to cooperate, negotiate and adjust the PPP agreement, the Project SPV was not able to meet its obligations under the PPP. This resulted in a situation where the Project SPV could not “de facto” continue the execution of the Project and created a risk that the public authorities could attempt to terminate the PPP agreement. In the event that the public authorities seek to terminate the PPP Agreement and/or seek to impose penalties, PC may incur penalties and/or recover less than the carrying amount of the Casa radio asset recorded in the consolidated financial statements as at year end (NIS 209.7 million). As of the date of approval of PC’s consolidated financial statements the Project SPV did not receive any termination notification by the public authorities. PC believes that although there is no formal obligation for the Romanian Authorities to renegotiate the PPP agreement, such obligation is implicitly provided for the situation when significant unexpected circumstances arise and that the unresponsiveness of the authorities is a violation of the general undertaking to support the Project SPV in the execution of the Project as agreed in the PPP agreement. PC believes that the risk that the public authorities may seek to terminate the PPP and/or relevant permits on the basis of the perceived breach of the PC’s commitments and/or may seek to impose delay penalties on the basis of the PPP contract is unlikely given the public authorities have not sought to do such since the perceived breach in 2012 and given PC believes that it has basis for counter claims against the relevant public authorities. In the case of termination for breach under the PPP agreement the relationship and compensation between the parties is to be decided by a competent court of arbitrations. PC’s management believe that, in the case of termination, PC has a strong case to claim compensation for damages. Since 2016 PC’s management has taken a number of steps in order to unblock the development of the project and mitigate the risk of termination of the PPP agreement, including commencing a process to identify third party investors willing and capable to join PC for the development of the project and/or potential buyers for the Project. PC’s management believes that reputable investors with considerable financial strength can enhance PC’s negotiation position vis-à-vis the public authorities and assist in advancing an amicable agreement with the relevant authorities with respect to the development of the project. PC’s management considers the risk of termination of the PPP agreement and/or the imposition of penalties by the authorities to be unlikely and the consolidated financial statements do not include any provision in respect to any potential future penalties in respect to the breach of the PPP agreement. c) Co-operation with the Romanian Authorities regarding potential irregularities: In 2015, PC’s board and management became aware of certain issues with respect to certain agreements that were executed in the past in connection with the Project. In order to address this matter, PC’s board appointed the chairman of it’s Audit Committee to investigate the matters and independent law firms to analyze the available alternatives in this respect. The chairman of the Audit Committee did not conclude the investigation as the person with key information was not available to answer questions. PC’s Board, among other steps, implemented a specific policy in order to prevent the reoccurrence of similar issues and appointed the chairman of the audit committee to monitor the policy’s implementation by PC’s management. In addition, it was decided that in the future certain agreements will be brought to PC’s board’s approval prior to signing. PC has approached and is co-operating fully with the relevant Romanian Authorities regarding the matters that have come to its attention and it has submitted its initial findings in March 2016 to the Romanian Authorities. PC, during this process has been verbally informed by the Romania Authorities that it has received immunity from certain potential criminal charges and received further verbal assurance that the mentioned investigation should have no effect on the PC’s existing legal rights to the Project and the PPP Agreement. As the investigation by the Romanian Authorities is still on-going, PC in unable to comment further on any details related to this matter. PC’s management is currently unable to estimate any monetary sanctions in respect to the potential irregularities, consequently no provision has been recorded in connection with these matters. For more information see note 13 b12. d) Provision in respect of PAB: As mentioned in point a above, when PC entered into an agreement to acquire 75% interest in the Project SPV it assumed a commitment to construct the PAB at its own costs for the benefit of the Romanian Government. Consequently, the statement of financial position includes a provision in the amount of EUR 12.8 million (NIS 53 million) in respect of the construction of the PAB (December 31, 2016: EUR 13.2 million) which is presented as part of other non-current liabilities. During 2017, the Company recorded income in total amount of EUR 0.4 million from change in PAB provision as part of write down of trading properties (in 2016 - EUR 1.7 thousand). PC’s management believes that the current level of provision is an appropriate estimation in the current circumstances. Upon reaching concrete agreements with Authorities, PC will be able to further update the provision. e) Casa radio valuation was prepared based on the assumption that the net realizable value (“NRV”) refers to the net amount that the Group expects to realize from the sale of its trading property in the ordinary course of business. Significant estimates: The following table shows the valuation techniques used in measuring the net realizable value of the Casa radio project: Valuation technique Significant unobservable inputs Inter-relationship between key unobservable inputs and fair value measurement Residual method: The valuation model considers the net present value (based on an NPV factor) based on the estimated value of the project upon completion less the estimated development cost including a provision for the profit for the potential development; Restricted marketing period · · · · · · · · The estimated fair value would increase (decrease) if: · · · · · · · · · The following tables provide a sensitivity analysis on the value of PC’s certain trading properties (in millions of NIS) assuming the following changes in key inputs used in the valuations: Plots Exit Yield Rental income for all phases Construction Cost Delay in construction commencement date (months) 0 +15bps +25bps +40bps +50bps -10% -5% 0 +5% +10% -10% -5% 0 +5% +10% 0 6 12 18 24 Casa Radio 209.7 193.2 182.7 167.3 157.6 111.3 160.5 209.7 258.6 307.6 285.6 248.1 209.7 171 132.4 209.7 204.3 198.9 194 189 2. Sale of Suwalki Plaza commercial center: On February 1, 2017 PC has completed the sale of SPV holding Suwalki Plaza commercial center in Poland to an investment fund. On completion PC has received approximately EUR 16.7 million (NIS 69 million) net cash and recorded a gain of EUR 0.8 million (NIS 3.3 million) and revenue of EUR 43.1 million (NIS 174.7 million) from the disposal. 3. Sale of plot in Shumen: On February 23, 2017 PC concluded the sale of a 26,057 sqm plot of land in Shumen, Bulgaria for approximately EUR 1 million (NIS 4 million). PC recorded a gain of Euro 0.2 million (NIS 0.8 million) and revenue of EUR 1 million (NIS 3.9 million) from the disposal. 4. Sale of SPV holding Belgrade Plaza commercial center: On March 2, 2017, an indirect subsidiary of the PC, has completed the sale of SPV holding Belgrade Plaza commercial center (the “SPV”), to a subsidiary of BIG Shopping Centers Ltd. (the “Purchaser”). The shopping center, which was over 97% pre-let, opened on 20th of April 2017 and PC had remained responsible for the development and leasing of the asset until the opening. Upon completion of the transaction, PC has received an initial payment of EUR 31.7 million (NIS 125 million) from the purchaser, further EUR 2 million (NIS 8 million) has been received following the opening, further payment of EUR 13.35 million (NIS 53 million) has been received during September 2017 and additional payments are contingent upon certain operational targets and milestones being met. The Purchaser has provided a guarantee to secure these future payments. The received consideration is after the deduction of the bank loan (circa EUR 15.4 million) (NIS 60 million). The final agreed value of Belgrade Plaza, which will comprise circa 32,300 sqm of GLA, will be calculated based on a general cap rate of 8.25% as well as the sustainable NOI after 12 months of operation, which PC estimates will be approximately EUR 6.2-6.5 million per annum. Further instalments will be due to PC during the first year of operation based on this 12-month figure. The NOI will be re-examined again after 24 months and 36 months of operation, which may lead to an upward adjustment of the final purchase price. PC recorded revenue of EUR 62.5 million (NIS 246 million) from the disposal and a gain of EUR 3.2 million (NIS 13 million). Expected future purchase price adjustment are not included. 5. Final agreement for sale of Kielce Plaza, Poland: On June 19, 2017, PC has signed the final sale agreement for the disposal of its 2.47-hectare plot in the center of Kielce, Poland, for EUR 2.28 million (NIS 9 million). PC received a down payment of EUR 0.465 million (NIS 1.8 million) when the preliminary sale agreement was signed at 2016 and the remaining EUR 1.815 million (NIS 7.2 million) has been paid to PC during June 2017. PC recorded revenue of EUR 2.2 million (NIS 9 million) from the disposal no gain was recorded. 6. Completed sale of Plot in Leszno, Poland: In July 2017, PC has signed the final sale agreement for the disposal of a 1.8-hectare plot in the city of Leszno for EUR 0.81 million (NIS 3 million). PC recorded revenue of EUR 0.81 million (NIS 3 million) from the disposal. 7. Sale of plots in Timisoara and Constanta, Romania: On August 7, 2017 PC has completed the sale of a plot totaling approximately 32,000 sqm in Timisoara, Romania, for Euro 7.25 million (NIS 30.9 million) and a plot totaling approximately 30,000 sqm in Constanta, Romania, for Euro 1.3 million. (NIS 5.5 million). 8. Sale of Land plot in Budapest, Hungary: On October 2, 2017 PC’s subsidiary has concluded the transaction with an international investor, NEPI Rockcastle (the “Buyer”), on the termination of land use right and preliminary easement agreement which created certain easement rights over the Arena Plaza plot registered in favor of PC subsidiary In consideration for termination of the land use right and the preliminary easement agreement, PC’s subsidiary received the net sum of EUR 2.5 million (NIS 10.4 million) and recorded revenue in the amount of EUR 2.5 million (NIS 10.4 million). 9. Sale of SPV holding of the Torun Plaza shopping and entertainment center in Poland: On November 21, 2017 PC has completed the sale of shares with an investment fund (the “Purchaser”) regarding the sale of SPV holding of the Torun Plaza shopping and entertainment center in Poland. PC has received a net cash of approximately Euro 28.3 million, (NIS 117.1 million). This net cash is after the deduction of the bank loan (circa EUR 43.3 million) (NIS 179.3). The above-mentioned sums do not include the earn out payments in an amount of EUR 0.35 million (NIS 1.4 million), reduced by NAV adjustment of EUR 0.2 million (NIS 0.8 million). PC recorded revenue of EUR 71.6 million (NIS 296.4 million) from the disposal and recorded a loss from the sale in amount of EUR 1.5 million (NIS 6.4 million) (not including the earn-out payment mentioned). 10. Disposal of plot in Belgrade, Serbia: Following the sale of “MUP” plot in Belgrade, Serbia, PC was entitled to an additional contingent consideration of EUR 0.6 million (NIS 2.5 million) once the purchaser successfully develops at least 69,000 sqm above ground. The consideration was received in September 2017 and is recorded as revenue from disposal of trading properties. Additional information in respect of trading property: The following table summarizes general information regarding the Group’s significant trading property projects. Purchase/ Rate of ownership As of December 31, As of December 31, transaction by the 2017 2017 2016 Project Location date group (%) Nature of rights Carrying Amount (MNIS) Operational Suwalki Plaza Poland Jun-06 100 Ownership Sold 163.5 Torun Plaza Poland Feb-07 100 Ownership Sold 281.8 Undeveloped lands designated for development Sport-Star Plaza Serbia Dec-07 100 Ownership Sold 226.2 Undeveloped lands not designated for development Casa Radio (see c1 above) Romania Feb-07 75 Leasing for 37 years (*)262.5 (*)296.4 Lodz residential Poland Sep-01 100 Ownership/ Perpetual usufruct 1.7 2.0 Timisoara Plaza Romania Mar-07 100 Ownership Sold 28.3 Lodz - plaza Poland Sep-09 100 Perpetual usufruct 16.2 20.6 Kielce Plaza Poland Jan-08 100 Perpetual usufruct Sold 8.9 Lesnzo Plaza Poland Jun-08 100 Perpetual usufruct Sold 3.2 Miercurea Csiki Plaza Romania Jul-07 100 Ownership 4.2 4.0 Constanta Plaza Romania July-09 100 Ownership Sold 5.3 Shumen Plaza Bulgaria Nov-07 100 Ownership Sold 3.2 Arena Plaza Extension Hungary Nov-05 100 Land use rights Sold 6.1 Helios Plaza Greece May-02 100 Ownership 13.7 13.3 Bangalore (see d below ) India Mar-08 100 Ownership 113.7 154.6 Chennai (see d below) India Dec-07 100 Ownership 73.4 84.5 Other small plots, grouped 7.2 8.6 492.6 1,310.5 (*) Represents gross value including commitment for PAB construction, which is presented as non-current provision in amount of NIS 53 million as of December 31, 2017, (in 2016 – NIS 54 million). d. Additional information in respect of trading property in India: The following information relates to trading property held by Elbit-Plaza India Real Estate Holding Limited (“EPI”), the total amount of which as of December 31, 2017, amounts to NIS 187.1 million. EPI is jointly controlled by the Company and PC (see note 7c). 1. Chennai, India: In December 2007, EPI executed agreements for the establishment of a special purpose vehicle (“Chennai Project SPV”) together with a local developer in Chennai (“Local Partner”). The Chennai Project SPV acquired 74.73 acres of land situated in the Sipcot Hi-Tech Park in Siruseri District in Chennai (“Property”). On September 16, 2015, EPI has obtained a backstop commitment from the Local Partner for the purchase of its 80% shareholding in the Chennai SPV by January 15, 2016, for a net consideration of approximately INR 161.7 Crores ( NIS 87 million). Since the Local Partner had breached its commitment, EPI exercised its rights and forfeited the Local Partner’s 20% holdings in the Chennai Project SPV. Accordingly, as of the balance sheet date EPI has 100% of the equity and voting rights in the Chennai Project SPV. During 2016, Chennai Project SPV has signed a Joint Development Agreement with a local developer (“Developer” and “JDA”, respectively) with respect to the Property. Under the terms of the JDA, the Chennai Project SPV granted the property development rights to the Developer” who shall bear full responsibility for all of the project costs and liabilities, as well as for the marketing of the scheme. The JDA also stipulates specific project milestones, timelines and minimum sale prices. Development will commence subject to the obtainment of the required governmental/ municipal approvals and permits, and it is intended that 67% of the Property will be allocated for the sale of plotted developments (whereby a plot is sold with the infrastructure in place for the development of a residential unit by the end purchaser), while the remainder will comprise residential units fully constructed for sale. The Chennai Project SPV will receive 73% of the total revenues from the plotted development and 40% of the total revenues from the sale of the fully constructed residential units. In order to secure its obligation, the Developer paid a total refundable deposit of INR 10 Crores (NIS 5.5 million) following the signing and registration of the JDA. The JDA may be terminated in the event that the required governmental approvals for establishment of access road to the Property has not been achieved within 12 (twelve) months period from the execution date of the JDA. The required approvals have not yet been obtained at the target date, but none of the parties has canceled the agreement at this juncture. Upon such termination, the Developer shall be entitled to the refund of the relevant amounts paid as Refundable Deposit and any other cost related to such access road or the title over the Property. The JDA may also be terminated by the Chennai Project SPV, inter alia, if the Developer has not obtained certain development milestone and/or breached the terms of the JDA. Due to this fact, the financial statements of the SPV include a provision in an amount of INR 30 Crores (NIS 16 million) for cost reimbursement, including INR 10 Crores (NIS 5.5 million) advanced payment received. Net realizable value measurement of Chennai project The valuation of the property is based on the comparable method. The following parameters have been considered to arrive at the land value of the subject property: Parameter Premium (Discount) Accessibility -12.5 % Discount for shape and contiguity -20 % Location and Neighborhood profile -5 % Size -10 % Negotiation -5 % Conversion 5 % Topography -5 % Additional cost to be incurred at the site due to illegal excavation -5 % Total -58 % 2. Bangalore: In March, 2008 EPI entered into a share subscription and framework agreement (the “Agreement”), with a third party local developer (the “Partner”), and a wholly owned Indian subsidiary of EPI which was designated for this purpose (“SPV”), to acquire together with the Partner, through the SPV, up to 440 acres of land in Bangalore, India (the “Project”) in certain phases as set forth in the Agreement. As of December 31, 2017, the Partner has surrendered sale deeds to the SPV for approximately 54 acres (the “Plot”). In addition, under the Agreement the Partner has also been granted with 10% undivided interest in the Plot and have also signed a Joint Development Agreement with the SPV in respect of the Plot. 2015 agreement On December 2, 2015 EPI has signed an agreement to sell 100% of its interest in the SPV to the Partner (the “Sale Agreement”). The total consideration upon completion of the transaction was INR 3,210 million (approximately EUR 42 million) which should have been paid no later than September 30, 2016 (“Long Stop Date”). On November 15, 2016, the Partner informed EPI that it will not be able to execute the advance payments. As a result of the foregoing, the Company has received from the escrow agent the sale deeds in respect of additional 8.3 acres (the “Additional Property”) which has been mortgaged by the Partner in favour of the SPV in order to secure the completion of the transaction on the Long Stop Date. The Additional Property has not yet been registered in favour of the SPV. In addition, as per the Sale Agreement, the Company took actions in order to get full separation from the Partner with respect to the Plot and specifically the execution of the sale deed with respect of the 10% undivided interest, all as agreed in the Sale Agreement. As a result of the failure of the Partner to complete the transaction under the Sale Agreement and in accordance with the provisions thereto, EPI has 100% control over the SPV and the partner is no longer entitled to receive the 50% shareholding. 2017 agreement In June 2017, EPI signed a revised sale agreement with the former partner (the “Purchaser”). The Purchaser and EPI have agreed that the purchase price will be amended to INR 338 Crores (approximately Euro 44.2 million) instead of the INR 321 Crores (approximately Euro 42 million) agreed in the previous agreement. As part of the agreement, INR 110 Crores (approximately Euro 14.4 million) will be paid by the Purchaser in instalments until the Final Closing. The Final Closing will take place on September 1, 2018, when the final instalment of INR 228 Crores (approximately Euro 29.8 million) will be paid to EPI. If the Purchaser defaults before the Final Closing, EPI is entitled to forfeit certain amounts paid by the Purchaser as stipulated in the revised agreement. All other existing securities granted to EPI under the previous agreement will remain in place until the Final Closing. 2018 agreement In January 2018, the Purchaser has notified EPI that due to a proposed zoning change (initiated by the Indian authorities) which could potentially impact the development of the land, all remaining payments under the Agreement will be stopped until a mutually acceptable solution is reached on this matter. EPI has rejected the Purchaser’s claims, having no relevance to the existing Agreement, and started to evaluate its legal options. Since the signing of the revised agreement, the Purchaser has paid non-refundable advance payments totaling INR 55 Crores (circa NIS 30 million). In March 2018, the Company signed an amended revised agreement as follows: The Purchaser and EPI have agreed that the total purchase price shall be increased to INR 350 Crores (approximately NIS 190 million). Following the signing of the revised agreement the Purchaser paid EPI additional INR 10 Crores (approximately NIS 5 million) further to the INR 45 Crores (approximately NIS 25 million) that were already paid during the recent year. Additional INR 83 Crores (approximately NIS 45 million) will be paid by the Purchaser in unequal monthly installments until the Final Closing. The Final Closing will take place on 31 August 2019 when the final installment of INR 212 Crores (approximately NIS 115 million) will be paid to EPI against the transfer of the outstanding share capital of the SPV. If the Purchaser defaults before the Final Closing, EPI is entitled to forfeit certain amounts paid by the Purchaser as stipulated in the revised agreement. All other existing securities granted to EPI under the previous agreements will remain in place until the Final Closing. As of 31 December 2017 advances received from the Purchaser in the amount of NIS 21.8 million are included in the financial statements as part of other non-current liabilities. Environmental update on Bangalore project - India: On May 4, 2016, the National Green Tribunal (“NGT”), an Indian governmental tribunal established for dealing with cases relating to the environment, passed general directions with respect to areas that should be treated as “no construction zones” due to its proximity to water reservoirs and water drains (“Order”). The restrictions in respect of the “no construction zone” are applicable to all construction projects. The government of Karnataka had been directed to incorporate the above conditions in respect of all construction projects in the city of Bangalore including the Company’s project which is adjacent to the Varthur Lake and have several storm-water crossing it. An appeal was filed before the Supreme Court of India against the Order. The Supreme Court has stayed the operation of certain portions of the Order. At this stage, it is difficult to predict the amount of time that the Supreme Court of India will take to decide on the matter. Net realizable value measurement of Bangalore project As for December 31, 2017 and 2016 the Group measured the net realizable value of the project. The plot in Bangalore is still in land stage and therefore the value of the plot has been derived using land comparable method. The valuation of the property reflects the risk related to NGT order described above, the interest that the partner still holds in the plot (10% as described above), the size of the plot and the non-contiguous land parcel. The decrease in the value during 2017 is attributable mainly to the proposed change in zoning regulations. The local authorities have proposed a revised master plan for Bangalore under which it is proposed to change certain regulations pertaining to zoning of the plot which if given effect might adversely affect the development prospects on the plot. The Company being aggrieved by the proposed change was entitled to and has filed the necessary objections with the concerned authorities and believes that the current zoning regulations will be maintained. Management believes that the current discount rate used towards this end is an appropriate estimation in the current circumstances. The following parameters have been considered to arrive at the land value of the subject property: Parameter Premium (Discount) Accessibility 10 % FSI permissible 10 % Location and Neighborhood profile 5 % Contiguous Land Parcel -15 % Size -10 % Negotiation (Trans/Quote) -15 % Total Premium/Discount -15 % Discount on account of NGT order and presence of Drain -20 % Presence of minority shareholder -20 % Discount on account of possible change in zoning (open space/parks) -25 % |
Investments in Associates
Investments in Associates | 12 Months Ended |
Dec. 31, 2017 | |
Investments in Associates [abstract] | |
INVESTMENTS IN ASSOCIATES | NOTE 5:- INVESTMENTS IN ASSOCIATES a. InSightec Ltd. (“InSightec”): 1. Insightec Ltd. (the “Company”) was incorporated in the State of Israel in March 1999 and commenced operations in the development, production and marketing of magnetic resonance imaging guided focused ultrasound treatment equipment shortly thereafter. The Company operates in one operating segment. As for December 31, 2017, the Company holds (directly and indirectly, through Elbit Medical), 22.5% of InSightec’s voting and equity rights (18.6% on a fully diluted basis). Yet, due to the fact that the Group invested in preferred shares and regular shares which are subordinated to the share granted in the last rounds of investment, the Group share in InSightec loss is 41.5%. Substantially all of InSightec’s current sales are derived from a few applications of InSightec’s products. Other applications of InSightec’s technology are in the early stages and there can be no assurance that these applications will be successful. InSightec is continuing research and development for additional applications for such products. 2. Financing round in Insightec: On December 14, 2017 InSightec Ltd. (“Insightec”), has signed a Share Purchase Agreement with Koch Disruptive Technologies, pursuant to which Koch Disruptive Technologies together with other investors will invest in Insightec a total amount of between US$75 million and US$150 million, in consideration for the issuance of a new series of preferred stock of Insightec (Preferred E share). The main terms of the Transaction are as follows: 1. The Transaction reflects a pre money valuation for Insightec of approximately USD 460 million (on a fully-diluted basis). 2. Holders of Preferred E share shall have preferred rights in the event of a dividend distribution and certain material events as set forth in the transaction documents. 3. The transaction documents also set forth the rights of Koch Disruptive Technologies and other major shareholders of Insightec (in an amended Securityholders Agreement and amended Articles of Association), including, that following the consummation of the Transaction, Insightec’s board of directors shall consist of a maximum of nine (9) board members. Each of the four major shareholders in Insightec (including Elbit Medical) will be entitled to appoint one director for as long as each of them holds at least 5% of the outstanding share capital of Insightec. The directors appointed by three of the major shareholders (including the one appointed by Elbit Medical) may together appoint up to four (4) additional directors. The CEO of Insightec will also serve as director. On December 28, 2017 Insightec completed the initial closing of the transaction in which it raised approximately US$90 million (out of which US$75 million was invested by Koch Disruptive Technologies). On January Insightec has completed the second (and final) closing of its Series E investment round in a total amount of $60 million. The lead investor in the round was Koch Disruptive Technologies (a subsidiary of Koch Industries, Inc.) who invested in total $100 million in Insightec. York participated in this round as well in the total investment of 6 million $. The Series E Preferred Shares of Insightec issued in the first and second closings represent, immediately following their issuance, approximately 29.1% of the outstanding share capital (24.7% on a fully-diluted basis) of INSIGHTEC’s share capital. The Company did not participate in the investment rounds. Following the completion of the second closing, the Company holds (directly and indirectly through its subsidiary - Elbit Medical Technologies Ltd.) approximately 19.8% (16.7% on a fully-diluted basis) and York holds 22.6% of InSightec issued and outstanding share capital (19.1% on a fully diluted basis). 3. Significant events in Insigctec during 2016-2017 ● On November 14, 2017 the Taiwanese Food and Drug Administration (TFDA) has approved its Exablate Neuro system for the treatment of essential tremor in patients who do not respond to medication. ● On December 14, 2017 The Centers for Medicare and Medicaid Services (the “CMS”) updated the reimbursement code for Exablate Neuro treatment for essential tremor, as follows: 1. On November 2016 the CMS has decided to associate Insightec’s Exablate Neuro system (for essential tremor treatment), a reimbursement code with a payment level of USD 9,751. 2. Beginning January 1, 2018, the primary procedure code for Movement Disorders (essential tremor) is assigned to new technology level and will be paid at USD 17,500.50 for medicare beneficiaries (if deemed medically appropriate). 3. The CMS decision is only one of the necessary conditions necessary to receive an insurance compensation for the treatment. Pursuant to the CMS approval, the approval of each of the regional CMS representatives in the USA is required in order to receive insurance compensation for patients for the treatment. As of the date, an approval from a CMS representative in one area only (National Government Services Medicare, local Medicare contractor (MAC) for jurisdictions 6 & K 1 ● On May 24, 2016, InSightec Health Canada has approved InSightec’s Exablate Neuro system for the treatment of essential tremor. ● On July 2016, the FDA has approved InSightec’s Exablate Neuro system for a non-invasive treatment of essential tremor (ET) in patients who have not responded to medication. Exablate Neuro uses focused ultrasound waves to precisely target and ablate issue deep within the brain with no incisions or implants. The treatment is done under Magnetic Resonance Imaging (MRI) guidance for real time treatment monitoring. 1 This region refers to the following states: Illinois, Minnesota, Maine, Massachusetts, New Hampshire, Connecticut, New York, Rhode Island Vermont and Wisconsin. ● Insightec has signed a cooperation agreement with Siemens On August 15, 2016, INSIGHTEC has signed a non-exclusive cooperation agreement with Siemens Healthcare GmbH (“Siemens”), a leading manufacturer and developer of diagnostic imaging equipment in general and Magnetic Resonance scanners specifically, to develop compatibility between INSIGHTEC’s MRI guided Focused Ultrasound Systems (MRgFUS) and Siemens MRI scanners (the “Systems”) with the intention to expand the MRgFUS market globally (the “Agreement”). According to the Agreement, the Parties will cooperate regarding the performance of R&D, integration, testing and approving the compatibility of the Parties’ Systems. Each Party shall be solely responsible, at its own cost, to obtain the regulatory approval for its systems, and InSightec shall be solely responsible, at its sole cost, to obtain the regulatory approval for the combined system. Each Party shall bear all of its internal and external costs relating to its performance under the Agreement, except that InSightec shall reimburse Siemens an amount agreed upon in the Agreement, for its R&D costs. The Agreement also determines that each Party shall act independently in the marketing and sales of its component portion of the Combined System, and determines the amount InSightec shall pay Siemens for sales of the Combined Systems. The term of the Agreement is five (5) years from the first commercial sale of the combined system and shall automatically renew for additional 1-year periods, unless either Party has provided a notice for its non-renewal or of its termination, it in accordance with the terms of the Agreement. Each Party shall have a limited liability towards the other Party for direct damages only. In addition, each Party is required to maintain a minimal insurance coverage for the purpose of the Agreement during the term of the Agreement and for a few years thereafter. b. Gamida Cell Ltd. (“Gamida”): 1. Gamida is engaged in developing cellular and immune therapies for the treatment of cancer and orphan genetic diseases. As of December 31, 2017, the Group holds, through Elbit Medical, approximately 16% in Gamida’s voting and equity rights (approximately 12% on a fully diluted basis). Gamida is devoting substantially all of its efforts toward research and development activities. In the course of such activities, Gamida has sustained operating losses and expects such losses to continue in the foreseeable future. Gamida’s accumulated deficit as of December 31, 2017, is USD 116,282 thousand and negative cash flows from operating activities for years ended December 31, 2017 are $17,760. Gamida requires additional financing in order to continue to fund its current operations and pay existing and future liabilities Gamida’s auditor’ report with respect to Gamida’s 2017 financial statements includes emphasize of matter with respect to going concern uncertainty. 2. Financing round in Gamida: On July 9, 2017, the Company was informed by Gamida that an approximately $40 million private financing investment has been completed (“the Investment”). The Investment was led by Shavit Capital Fund joined by the pharmaceutical company Novartis and additional investors, including VMS Investment Group, Israel Biotech Fund, IHCV and Clal Biotechnology Industries (the “Investors”). Following the Investment, a preferred shares were allotted to the Investors, based on $120 million pre-money valuation to Gamida (the “Allotted Shares”). In addition, the investors received options to preferred shares in the amount of 60% of the Allotted Shares. The exercise price of the options is 120% of the shares price which have been paid on the Investment closing date. The options will expire 5 years after the Investment closing date. The Company did not participate in the investment rounds. 3. Significant events in Gamida during 2016-2017: On October 10, 2016, Gamida informed the Company that U.S. Food and Drug Administration (“FDA”) has granted Breakthrough Therapy Designation status to Gamida’s NiCord® (“Nicord”), due to improvement in absorption of neutrophils blood cells in bone marrow transplant for patients with high risk hematological malignancies (blood cancers). Breakthrough therapy designation is granted to a drug that is intended to treat serious or life-threatening diseases, and that preliminary clinical evidence indicates that the drug may demonstrate substantial improvement on a clinically significant endpoint(s) over available therapies. A breakthrough therapy designation entitles the company to various benefits, such as: intensive FDA guidance, involvement of senior FDA managers in the process, option for a FDA rolling review of Nicord marketing approval application in the U.S (i.e. the FDA may agree to review parts of the application file which are submitted in phases, with no obligation of filling the whole file prior to the review commencement). On March 23, 2017, the Company was informed by Gamida, that the orphan drug designation which has been granted by the European Medicines Agency’s (EMA) Committee for Orphan Medicinal Products (COMP) regarding NiCord® has been broadened and now includes any treatment which based on blood system stem cells (haematopoietic stem cells) transplant. On December 12, 2017 Gamida presented final results from the phase I/II trial evaluating NiCord® (the “Trial”) at the annual meeting of the American Society for Hematology (ASH). The Trial that included 36 patients with hematologic malignancies, met its primary endpoint as well as safety and efficiency targets c. Aggregate information of associates: Year ended December 31 2017 2016 NIS in thousands The Group’s share of loss from continuing operations (20,202 ) (57,630 ) The Group’s share of total comprehensive income (20,202 ) (57,630 ) Aggregate carrying amount of the Group’s interests in these associates - 21,215 |
Investments in Joint Ventures
Investments in Joint Ventures | 12 Months Ended |
Dec. 31, 2017 | |
Investments in Joint Ventures [Abstract] | |
INVESTMENTS IN JOINT VENTURES | NOTE 6:- INVESTMENTS IN JOINT VENTURES a. Investment in joint venture held in Kochi, India: The Company has rights under certain share subsection agreement to hold 50% shareholding in Indian SPV (“Project SPV”). The Project SPV has entered into an agreement for the purchase of a land located in Kochi, India according to which it has acquired 13 acres (“Property A”) for a total consideration of INR 1,495 million (NIS 84 million) payable subject to fulfilment of certain obligations and conditions by the seller. Up to the balance sheet date the Project SPV has paid INR 720 million (NIS 40 million) to the seller in consideration for the transfer of title in Property A to the Project SPV. The Company’s share in such acquisition amount to approximately NIS 20 million. On January 14, 2016, the Company has signed an agreement to waive any of its rights and interest in the Project SPV. The total consideration for the Company is INR 10 Crores (approximately NIS 5 million), which will be paid to the Company upon the closing of the transaction. The transaction is subject to certain conditions precedent, and closing will take place (as extended) once these conditions are met and no later than June 30, 2018. The local Investor has provided certain security in order to guarantee the aforementioned deadline. b. Aggregate information of joint ventures that are not individually material: December 31 2017 2016 NIS in thousands The Group’s share of profit (loss) from continuing operations - 3,317 The Group’s share of total comprehensive income (loss) - 3,317 Aggregate carrying amount of the Group’s interests in these joint ventures 5,592 5,750 |
Additional Information as to In
Additional Information as to Investments in Material Subsidiaries and Changes Thereof | 12 Months Ended |
Dec. 31, 2017 | |
Additional Information As To Investments In Material Subsidiaries And Changes Thereof [Abstract] | |
ADDITIONAL INFORMATION AS TO INVESTMENTS IN MATERIAL SUBSIDIARIES AND CHANGES THEREOF | NOTE 7:- ADDITIONAL INFORMATION AS TO INVESTMENTS IN MATERIAL SUBSIDIARIES AND CHANGES THEREOF a. Elbit Medical Technologies: Elbit Medical Technologies Ltd., is an Israeli company traded on the TASE (“Elbit Medical”) which holds the medical business of the Group through the holdings of two portfolio companies: InSightec (approximately 19% holding on a fully diluted basis) and Gamida (approximately 13% holding on a fully diluted basis). For additional information in respect of InSightec and Gamida - see note 5a and 5b. As for December 31, 2017, the Company holds 89% (88.7% on a fully diluted basis) of the issued and outstanding share capital of Elbit Medical. For the issuance of convertibles notes by Elbit Medical after the balance sheet date see note 13c11. b. Plaza Center N.V. (“PC”): 1. PC conducts its activities in the field of establishing, selling and operating (until their sale) Commercial centers, as well as other mixed use projects (retail, office, residential) in Central and Eastern Europe. As of December 31, 2017, the Group holds 44.9% in PC’s voting and equity rights (42.7% on a fully diluted basis). 2. Going concern and liquidity position of PC: PC consolidated financial statements have been prepared on a going concern basis, which assumes that PC will be able to meet the mandatory repayment obligations of its bonds and other working capital requirements. PC primary need for liquidity is to repay its debts and fund general corporate purposes. PC has incurred losses and experienced negative operating cash flows for the past several years, and accordingly, it has taken a number of actions to continue to support its operations and meet its obligations. As at December 31, 2017 PC’s outstanding obligations to bondholders are EUR 123.2 million (NIS 512 million). In November 2016, PC agreed with its bondholders to amend the terms of the early repayment requirement under the original debt restructuring plan (the “Restructuring Plan”). On March 15, 2017, PC repaid the required minimum early repayment to its bondholders and thus obtained a deferral of one year for the remainin g contractual obligations of the bonds. In January 2018, a settlement agreement was signed by and among PC and the two Israeli Series of Bonds including a new repayment schedule ( See Note 11e3). Information concerning the PC’s obligations and commitments to make future payments under contracts such as debt agreements in the 15 months starting April 1, 2018 is aggregated in the following tables. Total Payment Due by period (in TEUR) Total Payment Due by period (in TNIS) Liquidity Requirements Within 1 year Within 1-1.25 years Within 1 year Within 1-1.25 years Debentures including current portion and interest (*) 23,700 36,700 (*) 98,426 152,415 General & administrative 3,100 600 12,874 2,492 Total liquidity requirements 26,800 37,300 111,300 154,907 Total Sources (**) 16,300 4,400 67,694 18,273 Total deficit (10,500 ) (32,900 ) (43,606 ) (136,634 ) (*) An amount of circa EUR 37.45 million (NIS 155.5 million) was repaid (excluding interest) following the balance sheet date. (**) The Company expects to increase the amount of its liquid balances during the 15 months starting April 1, 2018, by sale of plots of lands (including India) and others. PC’s board and management estimate that there are significant doubts regarding the PC’s ability to serve its entire debt according to the current repayment schedule. Moreover, following the new payment structure for the sale of the project in Bangalore, India, it is expected that PC will not be able to meet its entire contractual obligations in the following 12 months. PC’S Management acknowledges that the above expected cash flows are based on forward-looking plans and estimations which rely on the information known to PC management at the time of the approval of these financial statements. The materialization of the above forecast is not certain and is subject to factors beyond PC’s control. Therefore, delays in the realization of the PC’s assets and investments or realization at lower price than expected by management could have an adverse effect on the PC’s liquidity position and its ability to meet its contractual obligations on a timely manner. PC’S management further acknowledges that the PC is exposed to foreign currency risk derived from borrowings denominated in currency other than the functional currency of the PC, more specifically a further devaluation of the EUR against the NIS can significantly increase the remaining contractual obligation to bondholders. As of December 31, 2017 PC is not in compliance with Coverage Ratio Covenant (“CRC”) as defined in the restructuring plan. This may entitle the bondholders to declare that all or a part of their respective (remaining) claims become immediately due and payable. PC’s financial statements as of December 31, 2016 include an auditor’s opinion with emphasis of matter to going concern uncertainty as well as auditor’s review report on interim financial statements as of June 30, 2017 include the same. As a result, there is a risk that the bondholders could argue that there exists a substantial suspicion with respect to the PC’s ability to repay its obligations that entitles them to immediate repayment. In addition, based on trust deeds in case of material deterioration in the PC’s business and substantial suspicion exists that the PC will not be able to repay the bonds on time, the bondholders may declare immediate repayment of bonds. In the case that the bondholders would declare their remaining claims to become immediately due and payable, PC would not be in a position to settle those claims and would need to enter to an additional debt restructuring or might cease to be a going concern. As at the date of these financial statements the bondholders have not taken steps to assert their rights. A combination of the abovementioned conditions indicates the existence of a material uncertainty that casts significant doubt about the PC’s ability to continue as a going concern. 3. PC’s non-controlling interest details: Place of incorporation Proportion of ownership interests and voting rights held by non-controlling interests Loss allocated to non-controlling interests Accumulated non-controlling interests December 31 2017 2016 2017 2016 2017 2016 NIS’000 NIS’000 NIS’000 NIS’000 Netherland 55 % 55 % (51,986 ) (109,934 ) 60,617 121,615 4. PC’s summarized financial information (The summarized financial information below represents amounts before intragroup eliminations): December 31 2017 2016 NIS in thousands Current assets 189,546 94,721 Non-current assets 394,622 1,207,882 Current liabilities (496,081 ) (1,098,525 ) Non-current liabilities (53,353 ) (55,990 ) Equity attributable to owners of the Company 25,884 (26,473 ) Non-controlling interests (60,617 ) (121,615 ) 4. PC’s summarized financial information (The summarized financial information below represents amounts before intragroup eliminations) (Cont.): Year ended 2017 2016 2015 NIS in thousands Revenue 814,826 192,435 283,926 Expenses (923,646 ) (394,085 ) (500,262 ) Loss for the year from continuing operations (108,820 ) (201,650 ) (216,336 ) Loss for the year (108,820 ) (201,650 ) (216,336 ) Loss attributable to owners of the Company (48,833 ) (91,080 ) (97,122 ) Loss attributable to the non-controlling interests (59,987 ) (110,570 ) (119,214 ) Loss for the year (108,820 ) (201,650 ) (216,336 ) Other comprehensive income attributable to owners of the Company (3,095 ) 519 5,452 Other comprehensive income attributable to the non-controlling interests (3,798 ) 636 6,690 Other comprehensive income for the year (6,893 ) 1,155 12,142 Total comprehensive (loss) attributable to owners of the Company (51,928 ) (90,561 ) (91,670 ) Total comprehensive (loss) attributable to the non-controlling interests (63,785 ) (109,934 ) (112,524 ) Total comprehensive (loss) for the year (115,771 ) (200,495 ) (204,194 ) Net cash inflow (outflow) from operating activities (1,637 ) (260,148 ) (10,481 ) Net cash inflow (outflow) from investing activities 400,812 165,014 92,273 Net cash (outflow) from financing activities (239,979 ) (144,980 ) (159,363 ) Net cash inflow (outflow) 159,196 (240,114 ) (77,571 ) 5. Pursuant to PC’s restructuring PC shall not make any dividend distributions, unless (i) at least 75% of the Unpaid Principal Balance of the Notes has been repaid and the Coverage Ratio on the last Examination Date prior to such Distribution is not less than 150% following such distribution, or (ii) a Majority of the Plan Creditors consents to the proposed distribution. Notwithstanding the aforesaid, in the event an additional capital injection of at least NIS 85 million occurs, then after one year following the date of the additional capital injection million, no restrictions other than those under the applicable law shall apply to dividend distributions in an aggregate amount of up to 50% of such additional capital injection. 6. Pursuant to PC’s restructuring plan, PC will assign 75% of the net proceeds received from the sale or refinancing of any of its assets to early repayment of the Unsecured Debt. As for the amendment to an early prepayment term under the restructuring plan see note 11e c. Elbit- Plaza India Real Estate Holding Ltd. (“EPI”): The Company and PC each holds 47.5% of the shares of of Elbit Plaza India Real Estate Holdings Limited (“EPI”) which holds plots in Bangalore and Chennai, India ( see note 4d |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 8 PROPERTY, PLANT AND EQUIPMENT a. Composition: December 31, 2017 Real estate Hotels at At cost model Operating Land and Other Total NIS in thousands Cost: Balance as of January, 1 711,906 15,236 31,516 758,658 Adjustment of Depreciation and amortization balance as of December 31, 2017 (28,880 ) - - (28,880 ) Additions during the year 3,156 - - 3,156 Revaluation of hotels during the year 11,637 - - 11,637 Disposals during the year (*) (696,072 ) (15,288 ) (3,685 ) (715,045 ) Foreign currency translation adjustments (1,748 ) 72 463 (1,213 ) Balance as of December, 31 - 20 28,294 28,314 Accumulated depreciation: Balance as of January 1, - 7,482 25,051 32,533 Adjustment of Depreciation and amortization balance as of December 31, 2017 (28,880 ) - - (28,880 ) Additions during the year 28,880 52 71 29,003 Disposals during the year - (7,514 ) (2,528 ) (10,042 ) Foreign currency translation adjustments - - 380 380 Balance as of December, 31 - 20 22,974 22,994 Provision for impairment: Balance as of January, 1 - - 4,490 4,490 Balance as of December, 31 - - 4,490 4,490 Net book value - - 830 830 (*) See also Note 19. December 31, 2016 Real estate Hotels at At cost model Operating plot designated for hotel Land and buildings Other fixed assets Total NIS in thousands Cost: Balance as of January, 1 678,516 18,700 16,049 38,078 751,343 Adjustment of Depreciation and amortization balance as of December 31, 2016 (37,017 ) - - - (37,017 ) Additions during the year 2,473 - 68 2,541 Revaluation of hotels during the year 106,842 - - - 106,842 Disposals during the year - (18,700 ) - (5,712 ) (24,412 ) Foreign currency translation adjustments (38,908 ) - (813 ) (918 ) (40,639 ) Balance as of December, 31 711,906 - 15,236 31,516 758,658 Accumulated depreciation: Balance as of January 1, - - 7,858 31,129 38,987 Adjustment of Depreciation and amortization balance as of December 31, 2016 (37,032 ) - - - (37,032 ) Additions during the year 37,032 - 307 37,339 Disposals during the year - - (5,513 ) (5,513 ) Foreign currency translation adjustments - - (376 ) (872 ) (1,247 ) Balance as of December, 31 - - 7,482 25,051 32,533 Provision for impairment: Balance as of January, 1 - 3,700 - 4,490 8,190 Balance as of December, 31 - - - 4,490 4,490 Net book value 711,906 - 7,754 1,975 721,635 (*) Had the Group continued to present the hotel based on the cost model, their net book value as of December 31, 2016, would have been NIS 284 million . b . Composition of real estate assets included in property plant and equipment distinguished between freehold and leasehold rights: Year ended 2017 2016 NIS in thousands Freehold rights - 711,906 Leasehold rights - - Net book value - 711,906 c . Annual depreciation rates - see note 2l. d. On June 23, 2016, the Company announced a termination of the lease agreement with the Israel Land Administration (“ILA”) in respect of plot located in, Tiberias Israel. Following the termination of the Agreement, ILA released two bank guarantees in the aggregated amount of approximately NIS 13 million, which have been provided to ILA in order to secure the Company’s undertakings under the lease agreement and an additional amount of approximately NIS 27 million. The company recorded in the year ended December 31 2017 and 2016 a gain in the amount of NIS 3 million and NIS 8 million respectively. |
Current Maturities of Long Term
Current Maturities of Long Term Borrowing and Short-Term Credits | 12 Months Ended |
Dec. 31, 2017 | |
Current Maturities of Long Term Borrowing and Short-Term Credits [Abstract] | |
CURRENT MATURITIES OF LONG TERM BORROWING AND SHORT-TERM CREDITS | NOTE 9:- CURRENT MATURITIES OF LONG TERM BORROWING AND SHORT-TERM CREDITS a. Composition: December 31, 2017 2016 NIS in thousands Current maturities and short term credits (*) (**) 780,861 1,128,768 (*) The Balance as of December 31, 2017, is comprised mainly: (I) PC’s notes in the total amount of NIS 486 million which was reclassified as current liabilities due to the breach of covenants set in trust deeds (see note 7 b 2) (II) The Company notes in the amount of NIS 295 which are due on May 2018 ( see note 11d (**) During December 2017, the Company repaid the entire loan to Bank Hapoalim in amount of approximately NIS 59 million. (***) Following the sale of PC subsidiaries, all PC bank loan were derecognized in amount of approximately NIS 333 million. b. For liens - see note 13d |
Payables and Other Credit Balan
Payables and Other Credit Balances | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Other Credit Balances [Abstract] | |
PAYABLES AND OTHER CREDIT BALANCES | NOTE 10:- PAYABLES AND OTHER CREDIT BALANCES December 31, 2017 2016 NIS in thousands Income taxes 437 3,070 Other governmental institutions 14 1,235 Wages and fringe benefits 6,488 2,235 Derivative (i) - 1,831 Provision for real estate tax (see also note 13.b13) 4,213 - Income in advance 136 6,429 Provision in respect of plots in India (see also note 4.d.) 16,308 5,646 Provision (see also note 13) 29,167 15,354 Accrued expenses, and others 6,530 10,899 63,293 46,699 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Borrowings [Abstract] | |
BORROWINGS | NOTE 11:- BORROWINGS a. Composition: December 31, 2017 2016 NIS in thousands At amortized cost: Loans from banks and financial institutions (see c below) - 761,710 Notes issued by the Company (see d below) 538,668 498,637 Notes issued by PC (see e below) 485,504 721,292 1,024,172 1,981,639 Less - current maturities (780,861 ) (1,128,769 ) 243,311 852,870 b. Linkage basis and interest rates: December 31, 2017 Interest rates NIS in thousands % NIS Israeli CPI + 6 - 6.9 1,002,913 PLN 6m Wibor + 6 21,259 c. The following table provides breakdown of the Group’s loans from banks and financial institutions: December 31, 2017 2016 NIS in thousands Loans provided to the Company (*) - 59,082 Loans provided to PC (mainly with respect to trading property) (**) - 332,705 Loans provided to SPV holding the Radisson Complex (see note 19) - 369,923 - 761,710 (*) During December 2017, the Company repaid the entire loan to Bank Hapoalim in amount of approximately NIS 59 million. (**) Following the sale of PC subsidiaries, all PC bank loan were derecognized in amount of approximately NIS 333 million. For collaterals see also note 13d. d. 1. Issuance of notes by the Company: On February 20, 2014 two series of notes were issued by the Company: The first series of notes (“Series H”) was in the aggregate principal amount of NIS 448 million, repayable in a single payment at May 31, 2018. The second series of notes (“Series I”) was in the aggregate principal amount of NIS 218 million, repayable in a single payment at December 1, 2019. Both series of the notes are bearing interest at the rate of 6% per annum and are linked to the Israeli consumer price index. Interest on the series H notes will be payable in cash on a semi-annual basis, while interest on series I notes will be accrued to the principal and will be payable on the final maturity date. In addition, the notes include mandatory prepayment provisions in the event the Company pays a cash dividend or makes any other distribution, such that the Company is obligated to prepay an amount equal to the amount distributed by the Company, in the following order: (i) first, towards all unpaid amounts under the Series H, and (ii) secondly, towards all unpaid amounts under Series I. The following table present the terms of the Company’s Notes as for December 31, 2017: Effective interest rate interest rate Principal final maturity Adjusted par value Carrying amounts % % NIS in thousands Series H notes 9.47 CPI+6 2018 296,160 295,363 Series I notes 12.8 CPI+6 2019 217,279 184,955 Accumulated interest on Series I notes 58,350 58,350 571,789 538,668 The Company’s notes as for December 31, 2016: Effective interest rate interest rate Principal final maturity Adjusted par value Carrying amounts % % NIS in thousands Series H notes 9.47 CPI+6 2018 296,160 282,935 Series I notes 12.8 CPI+6 2019 217,279 172,954 Accumulated interest on Series I notes 42,748 42,748 556,187 498,637 For collaterals see note 13d2. 2. Buyback and early repayment plan of Company’s debentures: Series H As for December 31, 2017, the Company purchased NIS 150 million par value from series H, for a total consideration of NIS 138 million, resulting in a gain of NIS 2.3 million in 2016 and NIS 3.4 million 2015 which was recorded in the statement of income. All the notes repurchased have been fully redeemed. See also note 16c. On January 5, 2018, the Company repaid an early repayment of NIS 240 million par value of Series H. During March 2018 the Company repurchase NIS 7.1 million par value of series H for a total consideration of NIS 7.2 million. As a result, no material income/expenses is expected to be recorded in the statement of profit and loss. The remaining amount of Series H as for the date of approving the financial statement is NIS 50 million and are due on May 2018. Series I During March 2018, the Company purchased NIS 42.2 million par value from series I, for a total consideration of NIS 49.2 million. As a result, the Company is expected to be recorded NIS 2 million expenses in the statement of profit and loss. The remaining amount of Series I as for the date of approving the financial statement is NIS 226 million and are due on November 2019. e . PC’s notes: The following table present PC’s notes as of December 31, 2017: Effective interest rate Contractual interest rate Principal final maturity(*) Adjusted par value Carrying amounts % % NIS in thousands Series A Notes 9.47 % CPI+6 2020 198,974 190,865 Series B Notes 13.48 % CPI+6.9 2019 291,333 273,380 Polish Notes 10.46 % 6%+ 6M WIBOR 2018 21,176 21,259 511,483 485,504 The following table present PC’s notes as of December 31, 2016: Effective interest rate Contractual interest rate Principal final maturity (*) Adjusted par value Carrying amounts % % NIS in thousands Series A Notes 9.47 % CPI+6 2020 257,772 248,716 Series B Notes 13.48 % CPI+6.9 2019 453,264 429,871 Polish Notes 10.46 % 6%+ 6M WIBOR 2018 42,988 42,705 754,024 721,292 (*) (*) The Debentures are classified as current liabilities (see note 7 b2). (1) Pursuant to PC’s Restructuring Plan, PC will assign 75% of the net proceeds received from the sale or refinancing of any of its assets as early repayment. (2) Approved amendment to an early prepayment term under the Restructuring PC has implemented the restructuring plan that was approved by the Dutch court on July 9, 2014 (the “Restructuring Plan”). Under the Restructuring Plan, principal payments under the notes that originally due in the years 2013 to 2015 were deferred for a period of four and a half years, and principal payments originally due in 2016 and 2017 were deferred for a period of one year (the “Extended Repayment Schedule”). The Restructuring Plan further provides that, if PC does not prepay an aggregate amount of at least NIS 434 million on the principal of the notes on or before December 1, 2016 (the “Early Prepayment”), the principal payments due under the Extended Repayment Schedule will be advanced by one year (the “Accelerated Repayment Schedule”). On November 29, 2016, PC’s note holders approved to a postponement of the Early Prepayment date by up to four months and the reduction of the total amount of the required Early Prepayments to at least NIS 382 million (a reduction of 12% on the original amount). In addition, PC agreed to pay to its Noteholders, on March 31, 2018, a one-time consent fee in the amount of approximately EUR 488 thousand (NIS 2 million) (which is equal to 0.25% from the Company’s outstanding debt under the Notes at that time) (the “Consent Fee”). The consent Fee has been paid to PC’s Noteholders on a pro rata basis. During first three months 2017, PC paid to its bondholders a total amount of NIS 191.7 million as an early redemption. Upon such payments, the PC complied with the Early Prepayment Term (early redemption at the total sum of at least NIS 382,000,000) and thus obtained a deferral of one year for the remaining contractual obligations of the bonds. In addition to the above, the following terms were approved by the Note holders: a. Casaradio proceeds - If PC shall sell the Casaradio project located in Romania (hereinafter: the “Project”) to a third party, including by way of selling its holdings in any of the entities through which the Company holds the Project (and said sale shall be carried out before the full repayment of the debentures and until no later than December 31, 2019 (“Final Date”), for an amount which exceeds EUR 45 million net (.e. after brokerage fees (if any), taxes, fees, levies or any other obligatory payment due to any authority in respect to the said sale) which shall actually be received by PC, then the holders of notes shall be eligible for a one-time payment (which shall come in addition to the principal and interest payments in accordance with the repayment schedule), in certain amounts specified in tranches. b. Registering of Polish bonds for trade - PC has committed to undertake best efforts to admit the Polish bonds for trading on the Warsaw Stock Exchanges and proceeding in this respect are ongoing. (3) Settlement agreement with Bondholders of Israeli Series of Bonds In January 2018, a settlement agreement was signed by and among the PC and the two Israeli Series of Bonds (“Settlement Agreement”). In the Settlement Agreement it was agreed, inter alia, to approve: ● New repayment ratios between the two Israeli Series of Bonds (new ratio: Bond A- 39% Bond B- 61%); ● An increase in the level of the mandatory early repayments from 75% to 78% of the relevant net income; ● New repayment schedule; ● An increase in the compensation to be paid to the Bondholders in the event of successful disposal of Casa Radio Project; ● A waiver of claims to the PC and its directors and officers; and ● To waive the request for publication of quarterly financial reports by the Company. As a result of settlement agreement signing, Series A Bondholders withdraw their request for immediate repayment. It is clarified that the Settlement Agreement is a separate agreement among the parties thereto with respect to the PC’s restructuring plan, and as such has no effect on the Polish Bondholders. On January 31, 2018 the PC paid the bondholders a total amount of principal and interest of EUR 38,487 thousands. (4) The net cash flow received by the PC following an exit or raising new financial indebtedness (except if taken for the purpose of purchase, investment or development of real estate asset) or refinancing of real estate assets after the full repayment of the asset’s related debt that was realized or in respect of a loan paid in case of debt recycling (and in case where the exit occurred in the subsidiary - amounts required to repay liabilities to the creditors of that subsidiary) and direct expenses in respect of the asset (any sale and tax costs, as incurred) , will be used for repayment of the accumulated interest till that date in all of the series (in case of an exit which is not one of the four shopping centers only 50% of the interest) and 78% of the remaining cash (following the interest payment) will be used for an early repayment of the close principal payments for each of the series (A, B, Polish) each in accordance with its relative share in the deferred debt. Such prepayment will be real repayment and not in bond purchase. Mandatory repayment of subsequent to the reporting date (without early repayments): As a result of the non-substantial modifications of terms regarding the approved amendment described above, PC calculated a new effective interest rate as follows: EUR NIS 2018 24,175 100,398 2019 84,568 351,210 2020 14,417 59,874 123,160 511,482 For PC’s notes collaterals and covenants - see note 13d2 13c2. For liens - see note 13d13c. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 12 - INCOME TAXES a. Composition: Year ended December 31, 2017 2016 2015 NIS in thousands Current - 804 2,166 For previous year 11,404 - - Deferred (160 ) 2,216 2,236 11,244 3,020 4,402 b. Principle tax laws applicable the major Group companies in their country of residence: 1. Israel: a) Corporate tax rate applicable to companies in Israel in 2017 and 2018 is 24% and 23% respectively (in 2016 was 25% and in 2015 - 26.5%). b) As from January 1, 2003, certain statutory provisions came into force and effect, concerning, among other things, the tax reform in Israel in respect of the following: 1) (a) Taxation of profits of foreign companies considered as Controlled Foreign Companies (“CFC”), if all the following conditions are met: (i) its shares or its rights on it are not listed in a stock exchange, however if they are partly listed, then less than 30% of the shares or of the rights of the company were offered to the public (ii) majority of revenues thereof are passive, as same is defined by law, or majority of profits thereof derive from passive revenues; (iii) the tax rate applying to the passive profits thereof in their country of residence does not exceed 20%; and (iv) more than 50% of the means of control therein are held, directly or indirectly, by Israeli residents. In accordance with the statutory provisions, a controlling shareholder in those companies having unpaid profits, as defined by law, is deemed to have been distributed as a dividend representing its respective share in such profits (“Deemed Dividend”). (b) Taxation of a dividend received in Israel, out of profits generated or accrued abroad, as well as a dividend originating abroad. A Deemed Dividend and/or the distribution of dividends, as stated, will be subject to a tax rate of 25%, less withholding taxes which would have been paid abroad in respect of such dividend, had it in fact been distributed. Each Israeli resident company has the right to elect, at its sole discretion, to be assessed according to the Israeli corporate tax rate less taxes payable abroad in respect of these profits (including under certain circumstances taxes payable by a company held by the distributing company), as the case may be. 2) Capital gain from the realization of assets which were acquired subsequent to January 1, 2003 will be taxed at a rate of 25%. Capital gain for assets which were acquired before January 1, 2003, will be taxed at a rate of 25% for the portion of the gain relating to the period subsequent to this date up to the realization date and corporate tax rate for the portion of the gain relating to the period from the acquisition date up to January 1, 2003. 3) Method of loss offsetting - regarding business losses, capital losses, passive losses, marketable securities losses and CFC losses. 2. The Netherlands: a) Companies resident in the Netherlands are subject to corporate income tax at the general rate of 25%. The first EUR 200,000 of profits is taxed at a rate of 20%. Tax losses may be carried backwards for one year and carried forward for nine years. b) The Dutch participation exemption gives a full exemption from corporation tax applies to benefits such as dividends and capital gains derived from a qualifying participation. The participation exemption generally applies if the parent Company holds at least 5 percent of the shares in the participation. The requirements to meet the participation exemption are as follows: 1. The parent Company has an interest of at least 5 percent in the participation; and 2. At least one of the following three tests is met: a) The parent Company’s objective with respect to its participation is to obtain a return that is higher than a return that may be expected from normal active asset management (“Motive Test”); or b) The participation is subject to a “reasonable taxation” according to Dutch tax standards (“Subject-to-Tax Test”); or c) The direct and indirect assets of the participation generally consist of less than 50 percent of ‘low taxed free passive investments’ (“Asset Test”). d) Dividend distributions from a Netherlands company to qualifying Israeli corporate shareholders holding at least 25% of the shares of such Netherlands company is subject to withholding tax at a rate of 5% provided certain compliance related formalities have been satisfied. c. Effective tax rate: The following is reconciliation between the income tax expenses computed on the pretax income at the ordinary tax rates applicable for the Company (“the theoretical tax”) and the tax amount included in the consolidated statement of operations: Year ended December 31, 2017 2016 2015 NIS in thousands Profit (loss) before income taxes (237,534 ) (316,961 ) (366,751 ) Israeli company’s statutory tax rate (%) 24 25 26.5 The theoretical tax (57,008 ) (79,241 ) (97,189 ) Differences in tax burden in respect of: Exempt income, net of unrecognized expenses 11,139 673 9,991 Prior-year losses for which deferred taxes had not previously been recorded, including utilization (940 ) (2,873 ) (17,805 ) Losses and other timing differences for which deferred taxes had not been recorded 39,272 60,545 104,115 The effect of different measurement principles applied for the financial statements and those applied for income tax purposes (including exchange differences) 5,330 (1,493 ) 7,457 Differences in tax rates on income of foreign subsidiaries (2,034 ) 11,830 (13,916 ) The Group’s share in results of associated companies 4,849 13,579 11,620 Taxes for prior years 11,404 - - Other differences, net (768 ) - 129 11,244 3,020 4,402 d. Carry forward losses and deductions: As of December 31, 2016, the Group companies had accumulated tax losses and deductions amounting to NIS 1,207 million, which may be utilized in the coming years against taxable income at rates ranging from 12.5% to 35% depending on the country of residence. The realization of the carry-forward losses is subject to taxable income available in those periods when these losses are deductible. Tax laws in respect of certain Group subsidiaries operating outside of Israel have set a time limitation on the utilization of losses. Accordingly, the right to utilize carry-forward losses in the amount of NIS 1,207 million, against taxable income, will gradually expire over the following years: December 31 2017 (in thousand NIS) 2018 3,339 2019 26,157 2020 47,601 2021 and thereafter 805,601 882,698 e. Deferred income taxes: 1. Composition: Year ended December 31, 2017 Balance Charge to profit and loss account Deconsolidation (*) Foreign currency translation adjustments Balance December 31, 2017 NIS in thousands Differences between book value of property, plant and equipment and value for income tax purposes (92,472 ) - 92,472 - - Temporary difference associated with investment in subsidiaries (7,216 ) 7,216 - - - Timing differences - income and expenses (8,654 ) 1,880 - 291 (6,483 ) Carry forward tax losses and deductions 15,400 (8,936 ) - 19 6,483 Net deferred taxes (92,942 ) 160 92,472 310 - (*) See Note 19. Year ended December 31, 2016 Balance Charge to profit and loss account Charged to revaluation reserve Foreign currency translation adjustments Balance as of December 31, 2016 NIS in thousands Differences between book value of property, plant and equipment and value for income tax purposes (82,990 ) 1,319 (17,046 ) 6,245 (92,472 ) Temporary difference associated with investment in subsidiaries - (7,216 ) - - (7,216 ) Timing differences - income and expenses (15,969 ) 6,721 (319 ) 913 (8,654 ) Carry forward tax losses and deductions 17,900 (425 ) - (2,075 ) 15,400 Net deferred taxes (81,059 ) 399 (17,365 ) 5,083 (92,942 ) 2. The Group did not record deferred tax assets in respect of the following items: December 31, 2017 2016 NIS in thousands Timing differences - income and expenses 1,429 1,602 Carry forward tax losses and deductions 271,542 270,882 272,971 272,484 f. Final tax assessments: The Company and certain Israeli subsidiaries have received final tax assessments, through 2010. Currently the Company is discussing the tax assessments for the years 2011-2014. Certain foreign group companies have received final tax assessments while others have not been assessed since incorporation. |
Commitments, Contingencies, Lie
Commitments, Contingencies, Liens and Collaterals | 12 Months Ended |
Dec. 31, 2017 | |
Commitments, Contingencies, Liens and Collaterals [Abstract] | |
COMMITMENTS, CONTINGENCIES, LIENS AND COLLATERALS | NOTE 13 - COMMITMENTS, CONTINGENCIES, LIENS AND COLLATERALS a . Claims: Certain legal claims have been filed against the Group’s companies, including a claim that has been applied to certify as class actions suits. In the opinion of the managements of the Group, which is based, inter alia, on legal opinions as to the probability of the claims, including the applications for their approval as class action, appropriate provisions have been included in the financial statements, with respect to the exposure involved in such claims. In the opinion of the managements of the Group’s companies, the amount of the additional exposure as of December 31, 2017, in respect of claims with chances to be realized which are not remote, amounts to approximately NIS 7 million, excluding the class action and VAT assessments. Said amount does not include interest. In respect to motions to certify a claim as class actions, see items (1) below. In respect of VAT assessments see (3) below. Following are the Group’s material claims as of December 31, 2017: 1. The Company - application for 1999 class action: In November 1999, a number of institutional and other investors (the “Plaintiffs”), holding shares in Elscint Ltd.(a subsidiary of the Company which was merged into the Company (“Elscint”) instituted a claim against the Company, Elscint, the Company’s former controlling shareholders, past officers in the said companies and others. Together with the claim a motion was filed to certify the claim as a class action on behalf of everyone who was a shareholder in Elscint on September 6, 1999 and until the submission of the claim, excluding the Company and certain other shareholders. The plaintiffs argued that a continued and systematic oppression of the minority shareholders of Elscint took place, causing the minority monetary damage. According to the plaintiffs, said oppression started with the oppressive agreements made by Elscint for the realization of its main assets, continued with the sale of the control in the Company by Elron Ltd (and therefore indirectly also in Elscint) to companies held by former controlling shareholders (“Harmful Sale”),continued further with the breach of a tender offer made by Company to purchase the minority shares in Elscint (“Breach of Tender Offer”) and ended with an agreement between Elscint and companies held by the former controlling shareholder for the acquisition by Elscint of the hotels portfolio and the Arena commercial center in Israel in exchange to excessive payment from Elscint. (“Hotels and Marina Transactions”). It should be mentioned that the Harmful Sale allegation is directed first and foremost against Elron which was the controlling shareholder of the Company at that time. Due to these acts the Plaintiffs allege that the value of Elscint’s shares dropped during the period between February 24, 1999 and the date at which the claim was instituted from USD 13.25 per share to USD 7.25. The main relief sought in the original claim was an order for the Company to consummate the purchase offer for USD 14 per share, and alternatively, to purchase Elscint’s shares held by the Plaintiffs at a price to be set by the court. Further alternatively, the plaintiffs asked the court to grant injunction prohibiting the execution of Hotels and Marina Transactions and for the restitution of all money paid in connection with the above-mentioned transactions. In January 2009, the district court dismissed the Plaintiffs’ motion to certify the claim as a class action, which was appealed by them to the Israeli Supreme Court in March 2009. In May 2012, the Israeli Supreme Court upheld the plaintiff’s motion to certify the claim as a class action with regard to the Hotels and Marina Transactions. In addition, the Supreme Court has upheld the Harmful Sale allegation that related to Elron and rejected certain other claims that were included in the original proceedings. The Supreme Court noted that even though the claim was based on ‘countless’ allegations and on ‘dozens’ of legal grounds, the claim was certified as a class action based on only two causes of action: oppression of minority on the one hand and breach of fiduciary duties and recklessness on the other hand. The Supreme Court remanded the case to the District Court with instructions. On January 8, 2018, the District Court approved settlement agreement according to which the plaintiffs, their attorneys and the class members will receive NIS 50 million as a final compensation in a final court ruling. On March 15, 2018, the District Court have also ruled to approve the Additional Agreement. The Company’s share in the aforementioned compensation is NIS 4.6 million and the rest will be financed by the Company’s D&O Insurance. A motion for leave to appeal the District Court’s ruling of 27 September, 2017 was filed by Be’eri to the Supreme Court, constituting of claims that are similar in nature to the claims that Be’eri had previously raised in his objection to the Settlement Agreement (that the settlement agreement is a result of a conspiracy, and so forth). Initially, the court’s secretary refused to receive Be’eri’s motion and initiate an appeal procedure. Be’eri objected the secretary’s decision, and on December 26, 2017 a Supreme Court Registrar decided to annul the secretary’s decision and allow Be’eri to initiate a motion for leave to appeal. However, Be’eri did not initiate such an appeal procedure, and on February 13, 2018 the court was asked by some of the defendants to declare that Be’eri is barred from appealing the District Court’s decision due to his inactivity. On March 12, 2018 Be’eri declared he does not have the means to pay the fees and deposits needed in order to initiate the motion for leave to appeal, and informed the Supreme Court that he intended to ask the court to exempt him from making such payments. No such motion for exemption was filed so far, and therefore the Supreme Court has not yet decided on the issue. Subsequently, no motion for leave to appeal was opened. On April 20, 2018 The Supreme Court decided that Be’eri is exempted from paying court fees but obligated to pay a 5,000 NIS deposit until May 6, 2018. Failing to pay the deposit could lead to striking out the appeal. According to The District Court’s decision of April 20, 2018, the compensation will be held by the Plaintiff’s counsel in escrow and will not be distributed until it is clear that (a) Be’eri did not initiate an appellate procedure; or (b) an appellate procedure, if filed, would end without significantly changing the settlement agreement. The Company based on its legal advisor cannot estimate the chances of an appellate procedure that was not filed yet, but considering the nature of Be’eri’s claims the Company asses that his motion for leave to appeal, should it be filed, is more likely to be denied than successful. As for a dispute with an insurer which insured this law suit, see c7 below. 2. VAT and Customs assessments: The Company received from the respective VAT and Customs authorities assessments for the years 2006-2012 in the total amount of approximately NIS 25 million (excluding interest linkage and penalties). The Company filed appeals on the assessments it received. Discussions were held and summaries were submitted by both sides to the court. As of signing the financial statements, the Company is awaiting for the court ruling. Management, based on its tax advisor opinion, recorded an appropriate provision in the financial statement for this exposure. 3. Other legal proceedings in the ordinary course of business: As of December 31, 2017, the Company and its subsidiaries are involved in various legal proceeding relating to their ordinary course of business. Although the final outcome of these claims cannot be estimated at this time, the managements of these companies believe based on legal advice, that the claims, individually and in the aggregate, are not expected to materially impact the Company’s financial statements. b . Other contingent liabilities: 1. Indemnification to directors and officers of the Company: The General Meeting of the Company’s shareholders has approved the grant of prospective indemnification undertaking to the Company’s directors (including the controlling shareholder) and officers (including for their service as officers at the Company’s subsidiaries, where applicable). The total aggregate indemnification shall not exceed USD 40 million, and all in excess of an amount paid (if paid) by insurance companies under applicable insurance policy/ies. The Company’s Board of directors and Audit committee has also approved an exemption of officers from liability for any damage caused by breach of a duty of care towards the Company. 2. Indemnification to directors and officers of Elscint: Elscint’s shareholders have approved, at their General Meeting (on October 2000), the grant of prospective indemnification undertaking to directors and officers of Elscint (including for their service as officers of Elscint’s subsidiaries where applicable). The total indemnification shall not exceed the lower of 25% of the shareholders’ equity as set forth in Elscint’s most recent audited consolidated financial statements prior to such payment or USD 50 million, in excess of any amounts paid (if paid) by insurance companies pursuant to the insurance policy maintained by the Company from time to time. Elscint’s shareholders have also approved an exemption of directors and officers from liability in respect of any damage caused to Elscint by breach of duty of care. On March 7, 2011 Elscint was merged into Elbit and ceased to exist. Upon and as a result from the merger, all Elscint’s undertakings and liabilities were transferred to and assumed by Elbit. 3. Indemnification to directors and officers of Plaza Centers: PC has entered into an indemnity agreement with directors (including the Company’s chairman of the board and other director of the Company at their role as directors of PC) and PC’s senior management. The maximum indemnification amount to be granted by PC to its directors shall not exceed 25% of the shareholders’ equity of PC based on PC’s shareholders’ equity set forth in PC last audited consolidated financial statements prior to such payment. 4. Indemnification to directors and officers of InSightec: InSightec (an associated company) is obliged to indemnify and to hold harmless its directors and officers (including one of the Company’s directors who serves as a director in InSightec), to the fullest extent permitted by the laws of any relevant jurisdiction, against any liability. The total indemnification for all InSightec’s directors and officers, in accordance with the letter of indemnification (in addition to the amounts received from the insurers), shall not exceed the higher of USD 10 million or USD 2 million per office holder with the addition of the reimbursement of legal expenses totalling USD 1 million. Furthermore, InSightec has granted its officers and directors an exemption from all responsibility and any damage that will be caused to InSightec by them, in case of breaching their duty of care towards InSightec, other than with respect to a breach of duty of care in connection with a Distribution, as defined in the Israeli Companies Law subject to the Israeli Companies Law. 5. Indemnification to directors and officers of Gamida: Gamida has granted its directors, an indemnification undertaking letter for any monetary obligation with respect to a claim, including a compromise agreement or arbitration award, carried out in respect to actions taken by the director during the time of his/her service as Gamida’s or Gamida’s Subsidiary or Affiliate’s (as such terms defined therein) Director and in such capacity, as well as with respect to reasonable legal expenses including payments of legal fees paid by the Directors as a result of an investigation or proceeding initiated against the Director. The indemnification is limited to USD 6 million. 6. Indemnification to directors and officers of Elbit Medical Technologies: In November 2010, the shareholders’ of Elbit Medical Technologies have approved the grant of an exemption and indemnification to directors and officers of Elbit Medical Technologies (including such that serve also as officers of the Company). In the framework of the exemption and indemnification undertaking letter (as amended pursuant to the approval Elbit Medical Technologies shareholders on July 2012), Elbit Medical Technologies exempted the recipients of the indemnification undertaking letters also from liability for actions performed while serving as officers of Elbit Medical Technologies or its subsidiaries or a company in which Elbit Medical Technologies is an interested party. The total indemnification that Elbit Medical Technologies shall pay to each of the indemnified parties (in addition to amount received from the insurance companies according to the insurance policy) shall not exceed USD 40 million. The maximum indemnification amount shall not be affected by payment according to any insurance policy or its existence unless the indemnification amount claimed was already covered by the insurance companies or by any third party. 7. The Company received, in 2003, a letter from a certain insurer (“the Insurer”) of EIL, Elscint and the Company (the “Insured Companies”), which insured against, inter alia, the lawsuit as described in item b1 above, alleging against the Insured Companies, inter alia, that the Insured Companies have breached their disclosure duties under the Insurance Contract Law 1981, by failing to disclose to the Insurer material information prior to the issuance of additional cover to the policy purchased by EIL (the “Policy”), effective as of July 1999 (the “Additional Cover”), and prior to the replacement of the Policy and the Additional Cover by the issuance of a new policy effective as of August 1999 (the “Replacement Cover”). The letter states that the Policy, Additional Cover and Replacement Cover (the “Insurance Cover”) issued by the Insurer will be cancelled unless the Insured Companies indicate that circumstances as at the issuance of the Insurance Cover differ from those stated in the letter. The Company’s legal counsel replied on behalf of the Insured Companies in March 2003, rejecting all allegations. The parties conducted discussions between them pertaining to the matter referred to herein to negotiate a settlement. 8. Indemnifications relating to sale of real estate assets: In the framework of the transactions for the sale of the Group’s real estate as well other transactions, the Group has undertaken to indemnify the respective purchasers for any losses and costs incurred in connection with the sale transactions. The indemnifications usually include: (i) Indemnifications in respect of integrity of title on the assets and/or the shares sold (i.e: that the assets and/or the shares sold are owned by the Group and are free from any encumbrances and/or mortgage and the like). Such indemnifications generally survived indefinitely and are capped to the purchase price in each respective transaction and (ii) Indemnifications in respect of other representation and warranties included in the sales agreements (such as: development of the project, responsibility to defects in the development project, tax matter, environmental matters, employees and others). Such indemnifications are limited in time and are generally caped to certain percentages of the purchase price. 9. Pending lease payments to a purchaser of a commercial center: A former subsidiary of PC incorporated in Prague, Czech Rep. (“Bestes”), which was sold in June 2006 is a party to an agreement with a third party (“Lessee”), for the lease of commercial areas in a center constructed on property owned thereby, for a period of 30 years, with an option to extend the lease period by additional 30 years, in consideration for EUR 6.9 million (NIS 28 million), which as of the balance sheet date has been fully paid. According to the lease agreement, the Lessee has the right to terminate the lease subject to fulfilment of certain conditions as stipulated in the agreement. In case the Lessee leaves the mall before expiration of lease period PC will be liable to repay the remaining consideration in amount of EUR 1.9 Million (NIS 8 million) as of balance sheet date, unless the buyer finds other tenant that will pay higher annual lease payment than the Lessee. PC’s management does not expect to bear a material loss 10. Waiver and reimbursement to Gamida and/or its officers: I n November 2010, Elbit Medical Technologies irrevocably undertook towards Gamida and/or its officers, that they shall not be under liability, of any kind, directly or indirectly, towards it, its interested parties, its officers and towards any other person and/or third party, regarding the prospectus published by Elbit Medical Technologies with respect to the transaction according to which the Company acquired control over Elbit Medical Technologies (hereinafter, respectively the “Prospectus” and the “Transaction”) provided that Gamida’s will provide the information in good faith and that such information must be at all times complete and accurate. 11. During February 2018, Elbit Medical completed the issuing of convertible Notes (Series C), which are convertible to regular shares of Elbit Medical and are secured by a lien on part of Elbit Medical’s shares in Gamida Cell Ltd. ( “ As a precondition for the Amendment, Elbit Medical undertook to indemnify Insightec and each of its officers, directors, mangers, members, partners, employees and agents, shareholders and any other persons controlling Insightec or any of its affiliates (collectively: “Indemnified Persons”) to the fullest extent lawful, from and against any liabilities, losses, damage or expenses (including payment to advisors) incurred that arises out of or in connection with the Amendment, whether or not resulting from an Indemnified Person’s negligence (“Losses”), provided, however, that Elbit Medical shall not be responsible for any Losses that arise out of or are based on any action of or failure to act by Insightec to the extent such Losses are determined, by a final, non-appealable judgment by a court, to have resulted solely from Insightec’s gross negligence or willful misconduct. Likewise Elbit Medical Technologies has irrevocably undertaken, towards Gamida, its officers, Gamida’s jointly controlled subsidiary and Teva Pharmaceutical Industries Ltd that, subject to the conditions specified in the undertaking document, it shall indemnify them, for any liability and/or damage and/or expense and/or loss that is caused to any of the aforementioned with respect to the Transaction and the Prospectus, as well as any reports or other action of the Company with respect to the aforementioned information and/or to Gamida, its activities, its business etc. 12. Foreign Corrupt Practices Act (FCPA) Issues: On March 12, 2018, the Securities and Exchange Commission (“SEC”) approved an offer of settlement that was submitted to it by the Company regarding concerns of a violations of the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act of 1977 (“FCPA”), as follows: 1. In March 2016 Plaza Centers N.V. (a subsidiary of the Company) (“PC”) announced that its board of directors became aware of certain issues with respect to certain agreements that were executed in the past by PC in connection with the Casa Radio Project in Romania (see also note 4c1) that may indicate potential violation of the requirements of the FCPA, including the books and records provisions of the FCPA. 2. In addition, in April 2017 the Company’s board of directors and PC’s board of directors became aware of certain issues with respect to an agency and commission agreement from 2011 regarding the sale in 2012 of property in the U.S. jointly owned by PC and the Company. The characteristics of the said agreements could raise red flags that this agreements may be a potential violation of the requirements of the FCPA, including the books and records provisions of the FCPA. 3. Upon the discovery of each of the cases described above, the Company appointed an internal committees to examine these events and at the same time updated the SEC. 4. The internal committees has concluded their examination of these matters and submitted their recommendations to the Company’s board of directors. The Company’s board of directors fully adopted the committee’s recommendations, and is working to implement them. 5. Following discussions with the SEC regarding the potential violation of the requirements of the FCPA, the Company submitted an Offer of Settlement (“Offer”). 6. Solely for the purpose of the proceedings brought by or on behalf of the SEC and without admitting or denying the findings in the Offer (except as to the SEC’s jurisdiction over it and the subject matter of these proceedings, which are admitted) the Company consented to the entry of an order containing the SEC’s findings. -2- 15527/1403/7157186v1 7. The SEC has determined to accept the Offer and ordered that: 7.1. Pursuant to Section 21C of the Securities Exchange Act of 1934 (“Exchange Act”), the Company cease and desist from committing or causing any violations and any future violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act. 7.2. The Company paid a civil money penalty in the amount of $500,000 to the SEC for transfer to the general fund of the United States Treasury, subject to Exchange Act Section 21F(g)(3). 8. In determining to accept the Offer, the SEC considered remedial acts that the Company promptly undertook, its self-reporting, and its cooperation afforded to the SEC staff, including having conducted a thorough internal investigation, voluntarily providing detailed reports to the staff, fully responding to the staff’s requests for additional information in a timely manner, and providing translations of certain documents. 13. Contingent liability due to Tax: · In respect of PC subsidiary which holds a plot in the Europe region, certain tax aspects have been raised in respect to the past. PC management decided, following a thorough analysis and based on it tax advisor’s estimations, to record a provision in amount of EUR 1 million (NIS 4.2 million) for potential losses which are recorded in other losses in the profit or loss financial statements. In respect of a potential real estate tax claim, PC has been advised by its external advisors that notwithstanding the overall ambiguities of the applicable framework and its implementation that could result to a possible tax dispute there are good chances of success in case of litigation since the shares of the subsidiary are ultimately held by entities which shares are admitted for trading in regulated Stock Exchanges and therefore the substantial requirements for the tax exemption are met. Accordingly, no provision for any liability has been made in these financial statements. · Following analysis of certain tax aspects, a provision of approximately NIS 8 million was recorded, at amount which management believes is appropriate. c. Liens, collateral and guarantees: 1. The Company notes: Series H notes are secured by a first ranking floating charge on all the Company’s property and assets and first ranking charges over the Company’s existing and future interest and rights in and to the Company’s wholly owned subsidiaries and Elbit Ultrasound (Luxembourg) B.V./Sa.r.l (“EUL LUX”), including rights to any amount owed to the Company by EUL LUX. Series I notes has similar second ranking charges. In addition the Company has granted to both series H and series I notes) a corporate guarantee by EUL LUX and a negative pledge over the respective assets of EUL LUX. The collaterals securing the notes are subject to exceptions as set forth in the Arrangement. The Company holds through EUL LUX its shareholdings in PC. The Company and its wholly owned subsidiaries, EUL LUX have not created, nor undertook to create any pledges contrary to their obligations under the notes. In 2018, the Company mortgaged the repayments of the Vender loan (as mention in note 19), with a first-ranking lien, in favor of the trustee of holders of Series H. And in a second lien in favor of the trustee of the holders of Series I. 2. PC notes: The following provisions will apply to PC’s notes: a) Restrictions on issuance of additional notes - PC undertake not to issue any additional notes other than as expressly provided for in the Restructuring Plan. b) Restrictions on amendments to the terms of the bonds- PC shall not be entitled to amend the terms of the bonds, with the exception of purely technical changes, unless such amendment is approved under the terms of the relevant series and the applicable law and PC also obtains the approval of the holders of all other series of bonds issued by PC by ordinary majority. c ) Negative Pledge on Real Estate Asset (“REA”) of PC - PC undertakes that until the notes has been repaid in full, it shall not create any encumbrance on any of the REA, held, directly or indirectly, by PC except in the event that the encumbrance is created over PC’s interests in a subsidiary as additional security for financial indebtedness (“FI”) incurred by such subsidiary which is secured by encumbrances on assets owned by that subsidiary. d ) Negative Pledge on the REA of Subsidiaries - PC’s subsidiaries shall undertake that until the notes have been repaid in full, none of them will create any encumbrance on any of REA except in circumstances permitted under the provision of the notes. e ) Limitations on incurring new FI by PC and the subsidiaries - PC undertakes not to incur any new FI (including by way of refinancing an existing FI with new FI) until the outstanding notes debt (as of November 30, 2014,) have been repaid in full, except in circumstances permitted under the provision of the notes. f ) Limitation on distribution dividend - see note 7b5. g ) 75% mandatory early repayment - see note 11e to other sections in this note. d. PC’s notes financial covenants: a) Coverage Ratio Covenant (“CRC”): The CRC is a fraction calculated based on known Group valuations reports and consolidated financial information available at each reporting period. The CRC to be complied with by the Group is 118% (“Minimum CRC”) in each reporting period. As of December 31, 2017 calculated CRC is 103%. In the event that the CRC is lower than the Minimum CRC, then as from the first cut -off date on which a breach of the CRC has been established and for as long as the breach is continuing, PC shall not perform any of the following: (a) a sale, directly or indirectly, of a Real Estate Asset (“REA”) owned by PC or its subsidiaries, with the exception that it shall be permitted to sell the REA if it has an obligation to do so which was entered into prior to the said cut-off date, (b) investments in new REA’s; or (c) an investments that regards an existing project of the Company or of a subsidiary, unless it does not exceed a level of 20% of the construction cost of such project (as approved by the lending bank of these projects) and the certain loan to cost ratio of the projects are met. If a breach of the Minimum CRC has occurred and continued throughout a period comprising two consecutive quarterly reports following the first quarterly/year-end report on which such breach has been established, then such breach shall constitute an event of default under the trust deeds and Polish notes terms the bond holder shell be entitled to declare by written notice to PC that all or a part of their respective (remaining) claims become immediately due and payable. As a result of covenants breach, PC classified its bonds in the total amount of EUR 116,914 thousands (NIS 485,498 thousands) as current liabilities in the financial statements as of 31 December 2017. b) Minimum Cash Reserve Covenant (MCRC): cash reserve of PC has to be greater than the amount estimated by PC’s management required to pay all administrative and general expenses and interest payments to the Note holders falling due in the following six months, minus sums of proceeds from transactions that have already been signed (by PC or a subsidiary) and closed and to the expectation of the PC’s management have a high probability of being received during the following six months. As for December 31, 2017, the MCRC is maintained. c) PC is allowed to execute actual investments only if its cash reserves contain an amount equal to general and administrative expenses and interest payments for the Unsecured Debt for a six-month period (for this purpose also receivables with a high probability of being collected in the subsequent six-month period will be taken into account for the required minimal cash reserve). |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2017 | |
Share Capital [Abstract] | |
SHARE CAPITAL | NOTE 14 - SHARE CAPITAL Composition: Ordinary shares of NIS no par value each 2017 2016 2015 No nominal par value NIS 1.00 NIS 1.00 Authorized share capital 11,666,667 11,666,667 35,000,000 Issued and outstanding 9,190,808 9,190,808 27,572,426 The Ordinary Shares confer upon the holders thereof all rights accruing to a shareholder of the Company, inter alia, the right to receive notices of, and to attend meetings of shareholders; for each share held, the right to one vote at all meetings of shareholders; and to share equally, on a per share basis, in such dividend and other distributions to shareholders of the Company as may be declared by the Board of Directors in accordance with the Company’s Articles and the Israeli Companies Law, and upon liquidation or dissolution of the Company, in the distribution of assets of the Company legally available for distribution to shareholders in accordance with the terms of applicable law and the Company’s Articles. All Ordinary Shares rank pari passu in all respects with each other. |
Additional Concerning Income St
Additional Concerning Income Statement | 12 Months Ended |
Dec. 31, 2017 | |
Additional Details Concerning Income Statement [Abstract] | |
ADDITIONAL DETAILS CONCERNING INCOME STATEMENT | NOTE 16 - ADDITIONAL DETAILS CONCERNING INCOME STATEMENT Year ended December 31, 2017 2016 2015 NIS in thousands a. Cost of commercial centers Direct expenses: Cost of trading property sold 771,765 112,346 227,910 Wages and fringe benefits 396 1,503 3,341 Energy costs 1,900 3,868 6,073 Taxes and insurance 2,405 4,764 6,999 Maintenance of property and other expenses 2,442 5,351 8,286 778,908 127,832 252,609 Other operating expenses: Wages and fringe benefits 11,726 13,497 16,716 Professional services 9,224 8,458 7,638 Advertising 2,884 6,685 7,247 Other 2,759 2,932 5,363 26,593 31,572 36,964 Depreciation and amortization 122 402 787 805,623 159,806 290,360 b. General and administrative expenses Wages and fringe benefits 4,372 3,744 6,687 Stock-based compensation expenses 325 27 1,086 Depreciation and amortization 12 19 29 Expenses relating to the Company’s plan of arrangement 122 221 412 Professional expenses 5,728 2,326 2,867 Other 4,371 3,920 5,597 14,930 10,257 16,678 c. Financial expense Interest and CPI linkage on borrowings 103,360 193,116 200,169 Gain from buy back of notes and bank loan (see note 11d2) - (78,193 ) (55,475 ) Loss from foreign currency translation differences 7,273 30,018 69,003 Other financial expenses (income) 1,651 1,405 (5,976 ) Total financial expenses 112,284 146,346 207,721 Financial expenses capitalized to qualified assets 12 (21,992 ) - 112,296 124,354 207,721 Year ended 2017 2016 2015 NIS in thousands d. Financial income Interest on deposits and receivables 168 203 649 Gain (loss) from foreign currency translation differences 91 (1,259 ) 1,505 Other financial income 1,552 - - 1,811 (1,056 ) 2,154 e. Change in fair value of financial instruments measured at fair value through profit and loss Loss from change in fair value of derivatives (mainly swap and forward transactions) - (2,707 ) - Gain on marketable securities - - 2,568 - (2,707 ) 2,568 f. Write down, charges and other expenses, net Write down of trading property (i) 89,345 189,592 86,717 Realization of foreign currency translation reserve to the profit and loss - - 3,534 Initiation expenses (ii) 12,461 1,796 6,239 Other, net (iii) (686 ) (29,070 ) 2,802 101,120 162,318 99,292 (i) See note 4b regarding trading property write downs. (ii) Includes mainly cost and expenses in respect of the Group’s operations in India. (iii) In 2016 -Including gain from increase in holdings in Indian subsidiaries. Refer also to note 4d. j. Earnings per share (*) Basic and diluted earnings per share: The earnings and weighted average number of ordinary shares used in the calculation of the basic earning per share are as follows: Profit (Loss) from continuing operations (185,132 ) (202,630 ) (242,709 ) Profit (Loss) from discontinued operation (152,903 ) 7,913 56,231 Weighted average number of shares used in computing basic earnings per share (thousands) 9,191 9,191 9,191 (*) The earnings used in the calculation of all diluted earnings per share are same as those for the equivalent basic earnings per share measures. |
Options Plans
Options Plans | 12 Months Ended |
Dec. 31, 2017 | |
Options Plans [abstract] | |
OPTIONS PLANS | NOTE 15 - OPTIONS PLANS a. Options plan adopted by the Company and its subsidiaries: 1. On October 13, 2016, the Company’s general meeting adopted option plan to the Company’s executive Chairmen of the board (“The Chairman”). According to the plan, the Chairman was granted options exercisable into 38,445 ordinary shares, no par value, of the Company, constituting approximately 0.4% of the Company’s issued and outstanding share capital on a fully diluted basis. The exercise price of the options is equal to NIS 13.426 per share. The option term is for 5 years and it will be vested equally over a period of 3 years. 2. Elbit Medical plan: Year ended December 31 2017 2016 Number of options Weighted average exercise price Number of options Weighted average exercise price (NIS) (NIS) Balance at the beginning of the year 158,592,747 0.14 140,035,935 0.14 Granted (1) 500,000 0.13 22,298,912 0.10 Forfeited (104,685,257 ) 0.13 (3,742,100 ) 0.40 Exercised (36,670,449 ) 0.13 - - Balance at the end of the year 17,737,041 0.11 158,592,747 0.11 Options exercisable at the year end 2,371,100 0.13 136,293,835 0.13 3. Includes 8,199,275 options granted to the Company’s Chairman of the Board on October 13, 2016 for a period of 5 years and an exercise price of NIS 0.106 per option. The options will be vested equally over a period of 3 years. b. Options plan adopted by PC: Over the years, the PC has adopted few option plans over its shares. The below table summarized the significant terms in respect of PC’s option plans as for December 31, 2017 Number of options Max exercisable number of shares average exercise Vested as of average contractual life Option granted to key PC’s plan 235,520 356,781 GBP 43 253,520 5.06 years 30,000 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Related Parties [Abstract] | |
RELATED PARTIES | NOTE 17 - RELATED PARTIES a. Transactions with related parties: Transactions between the Company and its subsidiaries which are related parties of the Company, have been eliminated on consolidation and therefore are not disclosed in this note. As of December 31, 2017, the Company does not have ultimate controlling party. The Company identifies the following entities, inter alia, as the Company’s related parties: York Capital Management Global Advisors, LLC (“York”) which holds approximate 19.6% of Company’s share capital and Davidson Kempner Capital Management LLC (“DK”) which holds approximate 14.3% of Company’s share capital. As for the investment agreement in InSightec by York and other investors see note 5a. b. Benefits to key management personnel: 1. a) Insurance policy for the Company’s directors and officers: The directors and officers of the Company and its subsidiaries (excluding PC and its subsidiaries which are covered under a separate policy - see b below), are covered by directors’ and officers’ liability insurance policy of up to USD 40 million per occurrence and in the aggregate during the duration of the policy. In addition, the directors and officers of the Company (excluding any subsidiary) are covered by additional directors’ and officers’ liability insurance policy of up to USD 20 million per occurrence and in the aggregate during the duration of the policy. The shareholders of the Company have approved the renewal of such policy and the purchase of another directors and officers’ liability insurance policy and the purchase of any other similar policy upon the expiration of such policies, provided that the coverage will not exceed certain premium and that the premium for the renewed policy(ies) will not exceed an amount representing an increase of 20% as compared to the previous year. The insurance policy of the Company will expire on March 1, 2019. In addition to the ongoing police, on the closing of the Company’s plan of Arrangement on February 20,2014 the Company’s then exiting on-going policy has been converted into a Run Off policy which will expired following the elapse of seven years thereafter (i.e., February 20, 2021). b) Insurance policy for PC’s directors and officers: PC maintains Directors’ and Officers’ liability insurance policy, presently at the maximum amount of USD 60 million which will expire on November 1 2017. The new policy does not exclude past public offering and covers the risk that may be incurred by the Directors through public offerings of equity up to USD 50 million. b. Benefits to key management personnel (Cont.): c) Insurance policy for InSightec’s directors and officers: InSightec’s directors and officers are covered by two insurance policies; (i) Run Off policy, which is valid for a period of 7 years commencing December 2012, covering damages that has occurred until December 2012 uo to USD 20 million, and (ii) a second policy covering damages that had occurred or might occur from December 2012 and on up to USD 60 million, and it precedes and does not have the right to participate in the policies of directors and officers held by any of the shareholders of InSightec, including a component of special coverage for risk management (up to an amount of USD 100 thousands) with worldwide coverage. InSightec’s directors and officers insurance includes a retroactive cover and contains a 7 year extended reporting period provision. d) Insurance policy for the Gamida’s directors and officers: Gamida’s directors and officers are covered by D&O liability Insurance Policy. The policy covers claim first made against the insured during the policy period and notified to the insurer during the policy period for any wrongful act in the insured’s capacity as a director or officer of the company - all in accordance with the policy terms and conditions. The policy limit of liability is USD 6 million. Total aggregate for all loss, arising out of all claims made against all insured is under all insurance covers combined. 2. As for directors’ indemnification - see note 13b1 – 13b6 3. Options issued to related parties - see note 15. c. The following table presents the components of the Group related party transactions and benefit (including bonus) granted to the Group’s key management personnel: Year ended December 31, 2017 2016 2015 NIS in thousands Benefits to key management personnel Salaries, directors’ fees and bonuses 4,655 3,373 4,798 Termination benefits of former key personnel 200 - - Post-employment benefits - 239 257 Amortization of stock based compensation expenses 399 53 866 5,254 3,665 5,921 Number of recipients (excluding directors) 7 7 7 d. Balances with related parties: December 31, 2017 2016 NIS in thousands Liabilities: The Company’s and PC’s traded notes 116,130 211,790 Benefits payable to key management personnel 3,499 2,114 119,629 213,904 |
Segments Reporting
Segments Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segments Reporting [abstract] | |
SEGMENTS REPORTING | NOTE 18 - SEGMENTS REPORTING a. General: The Group’s Chief Operating Decision-Maker (“CODM”) reviews the Group’s internal reporting to assess the performance and to allocate resources. The CODM assesses the performance of the Group’s segments based on Net Operating Income. Such Net Operating Income is excluding general and administrative expenses attributable to the Company’s headquarter, financing income (expenses) and income taxes. In addition, the CODM is assessing separately the specific financial expenses of each segment based on the borrowings which are specifically attributable to the segment. All other financing expenses (income) (i.e.: financing expenses in respect of non-specific borrowing, interest income on investments and deposits and changes in fair value of financial instruments) were considered as unallocated financing expenses (income). Investments in INSIGHTEC is reviewed by the CODM in the same manner as subsidiary companies, i.e. each investment’s income, expenses are reviewed on a separate basis. The amounts included are not adjusted to reflect the Group’s share and accordingly reviewed in its entirety (100%). Accordingly, the amounts within each segment include these components of equity method investments, and are reconciled to the consolidated statements as adjustments. For purpose of these financial statements the following business segments were identified: ● Medical Industries and devices ● Plots in India ● Plots in Eastern Europe- . The Group’s reportable segments for each of the years ended December 31 2017, 2016 and 2015 are: Medical Industries and devices, Plots in India and Commercial Centers, All other operations identified by the CODM are included as “other activities”. The assets of a reportable segment include plots in India and trading property attributable to the Commercial Centers. Unallocated assets include mainly cash and cash equivalent as well as short and long term deposits and investments. The liabilities of the reportable segments include mainly specific borrowings provided directly to the Project Companies (mainly companies which are engaged in the operation, construction and initiations of commercial centers) and which are usually secured by a mortgage on the property owned by these Project Companies. Other borrowings which were raised by the Group with no identification to certain operations (mainly notes issued by the Company and PC) were considered as unallocated liabilities. The accounting policies of all reportable segments are the same as those of the Group, as described in note 2. b. Data regarding business segments: Year ended December 31, 2017 Commercial centers Medical industries and devices Plots in India Other activities and allocations Equity method adjustments Total Revenues 814,826 117,488 - - (117,488 ) 814,826 Segment profit (loss) (36,929 ) (135,445 ) (55,422 ) - 135,445 92,450 Financial income (expenses) (5,281 ) - - - - (5,281 ) Share in losses of associates, net - (15,156 ) - - (5,047 ) (20,202 ) Adjustments: (14,930 ) Unallocated other expenses 532 Unallocated financial expenses (107,015 ) Financial income 1,811 Loss before income taxes (237,534 ) Additions to segment assets 7,895 - - - - 7,895 Unallocated 3,156 Total additions 11,051 Depreciation and amortization of segment assets 52 - - - - 52 Unallocated 28,951 Total Depreciation and amortization 29,003 Impairment of segment assets 47,700 - 43,057 - - 90,757 Unallocated - Total Impairment 90,757 Assets and Liabilities December 31, 2017: Segment assets 305,503 - 187,509 5,845 - 498,856 Equity basis investments - - - - 5,437 5,437 Unallocated 513,078 Total Assets 1,017,371 Liabilities Segment liabilities 54,792 - 38,477 - - 93,269 Unallocated liabilities 1,072,887 Total Liabilities 1,166,156 Year ended December 31, 2016 Commercial centers (i) Medical industries and devices Plots in India Other activities and allocations Equity method adjustments Total Revenues 210,014 96,333 - - (113,911 ) 192,436 Segment profit (loss) (135,061 ) (119,689 ) 9,354 - 116,361 (129,035 ) Financial income (expenses) 60,454 - - - 60,454 Share in losses of associates, net - (7,960 ) - - (46,353 ) (54,313 ) Adjustments: (10,257 ) Unallocated other expenses (652 ) Unallocated financial expenses (184,809 ) Financial income (1,056 ) Change in fair value of financial instruments measured at FVTPL 2,707 Loss before income taxes (316,961 ) Additions to segment assets 94,406 - 154,598 - - 249,004 Unallocated 2,473 Total additions 251,477 Depreciation and amortization of segment assets 306 - - - - 306 Unallocated 37,109 Total Depreciation and amortization 37,415 Impairment of segment assets 165,028 24,564 189,592 Unallocated - Total Impairment 189,592 Assets and Liabilities December 31, 2016: Segment assets 1,126,871 - 245,092 6,453 (5,702 ) 1,372,714 Equity basis investments 15,916 11,033 26,949 Unallocated 861,546 Total Assets 2,261,209 Liabilities Segment liabilities 428,386 - 3,319 - (43 ) 431,662 Unallocated liabilities 1,780,933 Total Liabilities 2,212,595 (i) Includes mainly revenues from commercial centers under operation until their sale and consideration from sales of commercial centers. Year ended December 31, 2015 Commercial centers Medical industries and devices Plots in India Other activities and allocations Equity method adjustments Total NIS in thousands Revenues 309,302 69,432 - - (88,095 ) 290,639 Segment profit (loss) (74,170 ) (95,805 ) (12,325 ) - 92,656 (89,644 ) Financial income (expenses) 29,605 1,353 - - - (30,958 ) Share in losses of associates, net - (13,465 ) - - (29,460 ) (42,925 ) Adjustments: Unallocated general and administrative expenses (16,678 ) Unallocated other expenses (9,369 ) Unallocated financial expenses (176,763 ) Financial income 2,154 Change in fair value of financial instruments measured at FVTPL (2,568 ) Loss before income taxes (366,751 ) Additions to segment assets 28,562 - - 133 - 28,695 Unallocated 23,183 Total additions 51,878 Depreciation and amortization of segment assets 863 - - 38 - 896 Unallocated 32,184 Total Depreciation and amortization 33,085 Impairment of segment assets 85,918 - - - - 85,918 Unallocated - Total Impairment 85,918 Assets and Liabilities December 31, 2015: Segment assets 1,579,921 262,183 247,383 7,081 (599,531 ) 1,497,038 Equity basis investments - 24,233 - - 267,950 292,183 Unallocated 914,331 Total Assets 2,703,552 Liabilities Segment liabilities 658,994 92,644 2,624 - (217,930 ) 536,332 Unallocated liabilities 1,863,156 Total Liabilities 2,399,488 (i) Includes mainly revenues from commercial centers under operation until their sale and consideration from sales of commercial centers. c. Data regarding geographical areas: 1. Revenues by geographical areas: Revenues information above is based, mainly, on the locations of the assets. Year ended 2017 2016 2015 NIS in thousands East and central Europe(i) 814,826 192,436 133,631 India - - 150,296 Other - - 6,712 814,826 192,436 290,639 (I) The following table provides an additional information in respect of the revenues in east and central Europe per countries: Year ended 2017 2016 2015 NIS in thousands Poland 514,291 76,724 71,219 Czech Republic - 43,519 9,240 Romania 36,538 2,898 45,217 Serbia 246,534 68,165 3,832 Other 17,463 1,130 4,123 814,826 192,436 133,631 2. Non - The Group’s non-current assets provided in the following table include also trading property and payment on account of trading property. Segment assets December 31, 2017 2016 NIS in thousands East and central Europe 300,165 1,084,749 Israel 1,599 24,189 India 193,450 245,091 495,214 1,354,029 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 19 - DISCONTINUED OPERATIONS Sale of the “Radisson complex” On November 29, 2017, the Company has announced, that its wholly owned indirect subsidiary (the “Vendor”) has signed a definitive sale and purchase agreement (the “Agreement”) for the sale of its entire shareholding (comprising approx. 98.2% of the outstanding share capital) in the company (the “SPV”) which owns the Radisson Hotel Complex in Bucharest, Romania, based on a property value of €169.2 million (the “Transaction”). The Agreement has been signed with an acquisition vehicle jointly owned by two international investment funds (the “Purchaser”). The net proceeds that was derived from the Transaction (after offsetting the SPV’s senior bank loan, working capital and other adjustments, as well as transaction expenses) was approximately €81 million. Part of the net proceeds equal to €8 million was used to finance a vendor loan which has been granted for a period of 3 years, bearing interest at the rate of 5% per annum (the “Vendor Loan”). The Vendor Loan acts as collateral for customary post-closing liabilities of the SPV, whereby the Purchaser may offset adjudicated losses which may be incurred by it as a result of a breach of warranties or in respect of certain indemnities given by the Vendor in terms of the Agreement. Additionally, the Company has granted a letter of guarantee in favor of the Purchaser pursuant to which it has undertaken to fulfill the Vendor’s undertakings and obligations under the Agreement (if and to the extent that the Vendor fails to do so). On December 18, 2017 the Company has completed the transaction. Part of the Net Proceeds were applied in order to repay the Company outstanding loan to Bank Hapoalim Ltd. in the amount of approximately Euro 11.6 million and NIS 240 million were applied to an early repayment of interest and principal to the Company (series H) noteholders Following the Closing and consummation of the transaction, the Company has ceased to operate the “Radisson Complex” hotel activity, and accordingly the said activity was classified as discontinued operation including comparative information. Sale of Elbit Fashion On January 5, 2015 Elbit Fashion has completed the sale of the operation and business of “Mango” retail stores in Israel from Elbit Fashion to Fox- Wiesel Ltd (the “Closing”) for consideration of approximately NIS 37.7 million. Following the Closing and consummation of the transaction, Elbit Fashion has ceased to operate the “Mango” retail stores activity, and accordingly the said activity was classified as discontinued operation. Results of discontinued operations: Year ended 2017 2016 2015 NIS in thousands (except for per-share data) Revenues from hotel operations and management 130,142 135,839 147,886 Revenues from fashion merchandise - - 1,857 130,142 135,839 149,743 Expenses and losses Cost of fashion merchandise - - 4,123 Cost of hotel operations and management 105,678 115,367 126,849 Financial expenses 20,103 19,634 31,444 Other income, net (669 ) (6,961 ) (70,133 ) (125,112 ) (128,040 ) (92,283 ) Profit (loss) from discontinued operations before income taxes (5,030 ) 7,799 57,460 Income tax (income) expenses 80 (114 ) 1,229 Profit (loss) from discontinued operations (5,110 ) 7,913 56,231 Gain from sale of hotels (55,835 ) - - Release of capital funds as a result of the sale of hotels 213,848 - - Total Profit from discontinued operations 152,903 7,913 56,231 Basic and diluted earnings per share (16.64 ) 0.85 6.11 Reclassification of comparative information: As previously reported Amendment As presented in these financial statements NIS in thousands Revenues Revenues from sale of commercial centers 200,078 - 200,078 Revenues from Hotels operations and management 147,886 (147,886 ) - Total revenues 347,964 (147,886 ) 200,078 Gains and other Rental income from commercial centers 83,849 - 83,849 Gain from sale of investees 6,712 - 6,712 Total gains 90,561 - 90,561 Total revenues and gains 438,525 290,639 Expenses and losses Cost of commercial centers 290,360 - 290,360 Hotels operations and management 126,849 (126,849 ) - General and administrative expenses 16,678 - 16,678 Share in losses of associates, net 42,925 - 42,925 Financial expenses 236,288 (28,567 ) 207,721 Financial income (2,154 ) - (2,154 ) Change in fair value of financial instruments measured at fair value through profit and loss 5,446 (2,878 ) 2,568 Write-down, charges and other expenses, net 38,298 60,994 99,292 754,690 (97,300 ) 657,390 Loss before income taxes (316,165 ) (50,586 ) (366,751 ) Income taxes expenses (tax benefits) 5,631 (1,229 ) 4,402 Loss from continuing operations (321,796 ) (49,357 ) (371,153 ) Profit from discontinued operations, net 6,874 49,357 56,231 Loss for the year (314,922 ) - (314,922 ) Attributable to: Equity holders of the Company (186,150 ) - (186,150 ) Non-controlling interest (128,772 ) - (128,772 ) (314,922 ) - (314,922 ) Loss from continuing operations Equity holders of the Company (193,024 ) (49,685 ) (242,709 ) Non-controlling interest (128,772 ) 309 (128,463 ) (321,796 ) (49,376 ) (371,172 ) Profit from discontinued operation, net Equity holders of the Company 6,874 49,666 56,540 Non-controlling interest - (309 ) (309 ) 6,874 49,357 56,231 Statement of Cash flows The statement of cash flows includes the following amounts relating to discontinued operations, the majority of which as of December 2015, are attributable to the discontinued fashion apparel and hotels operations: Year ended 2017 2016 2015 NIS in thousands (except for per-share data) Operating activities 49,142 26,443 (5,921 ) Other investment activities 297,875 14,082 216,957 Other financing activities (157,948 ) 118,556 (189,203 ) Net cash provided by (used in) discontinued operations 189,069 159,081 (21,833 ) |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [abstract] | |
FINANCIAL INSTRUMENTS | NOTE 20 - FINANCIAL INSTRUMENTS a. Principal accounting policies: The principal accounting policies adopted by the Group in respect of financial instruments and equity components including recognition criteria, measurement and charges to the statement of income and other comprehensive income are included in note 2. b. Balances of financial instruments by categories: 1. Composition: December 31, 2017 2016 NIS in thousands Financial assets Cash and cash equivalents 465,740 89,688 Loans and receivables 44,545 88,199 Available for sale financial instruments 4,032 4,091 514,317 181,978 Financial Liabilities Derivative financial liabilities at fair value through profit and loss - 1,832 Financial liabilities at amortized cost 1,088,479 2,051,905 1,088,479 2,053,737 2. Additional information: As for financing income and expenses resulting from the aforementioned financial instruments - see note 16e. c. Management of financial risks: The operations of the Group expose it to risks that relate to various financial instruments, such as: market risks (including currency risk, cash flow risk with respect to interest rates and other price risk), credit risk and liquidity risk. Market risk - is the risk that the fair value or future cash flow of financial instruments will fluctuate because of changes in market prices Credit risk - is the risk of financial loss to the Group if counterparty to a financial instrument fails to meet its contractual obligations. Liquidity risk - is the risk that the Group will not be able to meet its financial obligations as they fall due. The comprehensive risk management program of the Group focuses on actions to minimize the possible negative effects on the financial performance of the Group. In certain cases, the Group uses derivatives financial instruments in order to mitigate certain risk exposures. The Company’s board of directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The board is managing the risks faced by the Group, and confirms that any appropriate actions have been or are being taken to address any weaknesses. The Group has exposure to the following risks which are related to financial instruments: 1. Foreign currency risk: The Group has international activities in many countries and therefore it is exposed to foreign currency risks as a result of fluctuations in the different exchange rates. Foreign currency risks are derived from transactions executed and/or financial assets and liabilities held in currency which is different than the functional currency of the Group’s entity which executed the transaction or hold these financial assets and liabilities. In order to minimize such exposure the Group policy is to hold financial assets and liabilities in a currency which is the functional currency or the Group’s entity. The Company’s functional currency is the NIS and its investees use different functional currencies (mainly the EURO, Indian Rupee and the RON). The following tables present sensitivity analysis to a change of 10% in the Group’s main foreign currencies against their relevant functional currency and their effect on the statements of income and the shareholders’ equity (before tax and before capitalizing any exchange results to qualified assets): As of December 31, 2017: Functional currency Linkage currency Change Profit (loss) In thousand NIS Assets Cash and deposits NIS EURO +10% 368 Cash and deposits NIS USD +10% 131 Cash and deposits EURO PLN +10% 174 Cash and deposits EURO USD +10% 243 Cash and deposits EURO NIS +10% 13,305 14,221 Financial liabilities Loans at amortized cost EURO PLN +10% (2,125 ) Notes at amortized cost EURO NIS +10% (46,425 ) (48,550 ) As of December 31, 2016: Functional currency Linkage currency Change Profit (loss) In thousand NIS Assets Cash and deposits NIS EURO +10% 501 Cash and deposits NIS USD +10% 181 Cash and deposits EURO PLN +10% 947 Cash and deposits EURO USD +10% 135 Cash and deposits EURO USD +10% 260 2,024 Financial liabilities Loans at amortized cost NIS EURO +10% (5,908 ) Loans at amortized cost EURO PLN +10% (4,271 ) Notes at amortized cost EURO NIS +10% (67,859 ) Loans at amortized cost RON EURO +10% (36,992 ) (115,030 ) As of December 31, 2015: Functional currency Linkage currency Change Profit (loss) In thousand NIS Assets Cash and deposits NIS EURO +10% 1,637 Cash and deposits EURO NIS +10% 857 Cash and deposits EURO PLN +10% 883 Cash and deposits EURO RON +10% 1,163 Cash and deposits EURO USD +10% 1,005 5,545 Financial liabilities Loans at amortized cost NIS EURO +10% (15,746 ) Loans at amortized cost EURO PLN +10% (5,503 ) Notes at amortized cost EURO NIS +10% (71,615 ) Loans at amortized cost RON EURO +10% (25,344 ) (118,208 ) 2. Credit risk: The Group holds cash and cash equivalents, short term investments and other long- term investments in financial instruments in various reputable banks and financial institutions. These banks and financial institutions are located in different geographical regions, and it is the Group’s policy to disperse its investments among different banks and financial institutions. The maximum credit risk exposure of the Group is approximate to the financial assets presented in the balance sheet. Due to the nature of it activity, the company, which operate at commercial centers, are not materially exposed to credit risks stemming from dependence on a given customer. The company examine on an ongoing basis the credit amounts extended to their customers and, accordingly, record a provision for doubtful debts based on those factors they consider having an effect on specific customers. 3. Interest rate risk: Fair value risk: A significant portion of the Group’s long term loans and notes bearing a fixed interest rate and are therefore exposed to change in their fair value as a result of changes in the market interest rate. The vast majority of these loans and notes are measured at amortized cost and therefore changes in the fair value will not have any effect on the statement of income. For further information see note 11. Cash flow risk Part of the Group’s long term borrowings are bearing variable interest rate (see note 11). Cash and cash equivalent, short term deposits and short term bank credits are mainly deposited in or obtained at variable interest rate. Change in the market interest rate will affect the Group’s finance income and expenses and its cash flow. The following table presents the effect of an increase of 1% in the Libor rate with respect to financial assets and liabilities which are exposed to cash flow risk (before tax and before capitalization to qualifying assets): Profit (loss) Year ended December 31, 2017 2016 2015 NIS in thousands Loans linked to the EURO (*) - (3,918 ) (5,928 ) Notes linked to the PLN (213 ) (427 ) (550 ) (213 ) (4,345 ) (6,478 ) 4. Liquidity risk The Group’s capital resources include the following: (a) proceeds from sales of trading property and real estate assets subject to market condition (b) lines of credit obtained from banks, and others; (c) proceeded from sales of shares in the Group held companies in the medical field (d) available cash and cash equivalents. Such resources are used for the following activities: a) Interest and principal payments on the Group notes and loans; b) Payment of general and administrative expenses; As for the Company’s financial positon and PC’s going concern - see note 1c and 7 b2 respectively. The following tables present the cash flow of financial liabilities and assets (principal and interest) in accordance with the contractual repayment dates : As of December 31, 2017: 1st year (i) 2nd year 3rd year 4th year 5th year and thereafter Total NIS in thousands Financial liabilities Borrowing with fixed interest rate PC’s notes linked to the Israeli CPI (1) 238,898 236,812 55,566 - - 531,276 Notes linked to the Israeli CPI 303,564 310,222 - - - 613,786 542,462 547,034 55,566 - - 1,145,062 Borrowing with variable interest rate Notes linked to the PLN 21,949 - - - - 21,949 Suppliers, payable and other credit balances 47,999 - - - - 47,999 Total financial liabilities 612,410 547,034 55,566 - - 1,215,010 Financial assets Cash and cash equivalent 465,740 - - - - 465,740 Short term deposits 10,496 - - - - 10,496 Trade receivables and other receivables 3,210 - - - - 3,210 Long term deposits, loans and investments - - 33,221 - 1,653 34,874 Total financial assets 479,446 - 33,221 - 1,653 514,320 As of December 31, 2016: 1st year (i) 2nd year 3rd year 4th year 5th year and thereafter Total NIS in thousands Financial liabilities Borrowing with fixed interest rate Loans linked to EURO 29,376 29,719 30,495 334,890 - 424,480 PC’s notes linked to the Israeli CPI (1) 211,934 152,116 387,256 61,481 - 812,787 Notes linked to the Israeli CPI 17,770 303,564 310,486 - - 631,820 259,080 485,399 728,237 396,371 - 1,869,087 Borrowing with variable interest rate Loans linked to the EURO 261,453 9,923 10,588 89,784 53,240 424,988 Notes linked to the PLN 16,542 30,393 - - - 46,935 277,995 40,316 10,588 89,784 53,240 471,923 Suppliers, payable and other credit balances 53,532 - - 1,972 - 55,504 Total financial liabilities 590,607 525,715 738,825 488,127 53,240 2,396,514 Financial assets Cash and cash equivalent 89,688 - - - - 89,688 Short term deposits 39,527 - - - - 39,527 Trade receivables and other receivables 54,577 - - - - 54,577 Long term deposits, loans and investments - 2,827 - 13,593 - 16,420 Total financial assets 183,792 2,827 - 13,593 - 200,212 (1) This note assumes the minimum contractual payments on the debentures to achieve the Deferral see note 11 e 5. Consumer Price Index (“CPI”) risk: A significant part of the Group borrowings consists of notes raised by the Company and PC in the Tel Aviv Stock Exchange which are linked to the increase in the Israeli CPI above the base index at the date of the notes issuance. An increase of 2% in the Israeli CPI will cause an increase in the Group finance expenses for the years ended December 31, 2017, 2016 and 2015 (before tax) in the amount of NIS 20 million, NIS 23 million and NIS 25 million, respectively. 6. Collaterals: The following table presents the book value of financial assets which are used as collaterals for the Group’s liabilities: December 31, 2017 2016 NIS in thousands Long term borrowings - 38,117 Guarantees provided by the Group 1,813 2,363 1,813 40,480 3. Fair value levels: The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable: ● Level 1: fair value measurements derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; ● Level 2: fair value measurements derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and ● Level 3: fair value measurements derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The following table presents the book value and fair value of the Group’s financial assets (liabilities), which are presented in the financial statements at other than their fair value: December 31 2017 2016 Book Value Fair Book Value Fair Level NIS in thousands Long- term loans at fixed interest rate Level 3 - - (369,923 ) (369,923 ) Notes Level 1 (1,024,168 ) (911,051 ) (1,219,929 ) (1,071,436 ) (1,024,168 ) (911,051 ) (1,589,852 ) (1,441,359 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 21 - SUBSEQUENT EVENTS a. On February 19, 2018 Elbit Medical has completed a public offering of notes convertible into ordinary shares of Elbit Medical and secured by a pledge on a portion of Elbit Medical’s holdings in INSIGHTEC Ltd. and Gamida Cell Ltd. (the “Notes”). The main terms of the Notes are: (1) Total amount raised: NIS 180 million. (2) Maturity Date: March 1, 2022. (3) Interest: Annual interest of 5% in the first two years and 10% in the remaining period, payable twice a year - in March and September. (4) Conversion: Each NIS1.47 par value in Notes into convertible into one Elbit Medical ordinary share. (5) Certain Covenantsas loan to value: certain limitations including on the ability of Elbit Medical to distribute dividends or raise additional debt. (6) Collateral: The Notes are secured by a pledge on a portion of Elbit Medical’s holdings in INSIGHTEC Ltd. and Gamida Cell Ltd in a “value to loan” ratio of 200%. (7) Use of Proceeds: (a) payment of all expenses in connection with the issuance of the Notes (approximately NIS6 (approx. US$ 1.7 million)); (b) NIS18 million (approx. US$ 5 million) were deposited with the trustee for interest payments due on the Notes for the first two years; (c) NIS4 million (approx. US$ 1 million) for ongoing operational expenses; and (d) the remaining proceeds was used to repay Elbit Medical’s intercompany debt to the Company (approximately NIS 154 million (approx. US$ 43 million)). In April, 2018 the balance of Elbit Medical’s debt to the Company, in the total amount of approximately NIS2 million (approximately USD 580 thousand) was converted to approximately NIS2 million par value Notes. b. Motion to reveal and review internal documents: In March 2018, a Shareholder of the Company has filed a motion with the Financial Department of the District Court in Tel-Aviv to reveal and review internal documents of the Company and of PC., with respect to the events surrounding that certain agreements that were signed in connection with the Casa Radio Project in Romania and the sale of the US portfolio. Such events were previously announced by the Company and are detailed in notes 4.c.1.c and 13.b.12. The Company is currently examining the motion with its legal advisors and intend to respond in due course. |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
Statement of compliance: | a. Statement of compliance: The audited consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRSs”) as issued by the International Accounting Standards Board (“IASB”). |
Basis for preparation: | b. Basis for preparation: The audited consolidated financial statements have been prepared on the historical cost basis except for (i) financial instruments measured at fair value; (ii) certain trading property measured at net realizable value (see note 2w.(1)a.); and (iii) certain property, plant and equipment (hotels) were presented until their disposal at the revaluation model (based on fair value). The principal accounting policies are set out below. |
Presentation of the income statements: | c. Presentation of the income statements: The Group operations are characterized by diverse activities. Accordingly, management believes that its income statements should be presented in the “Single - step form”. According to this form, all costs and expenses (including general and administrative and financial expenses) should be considered as continuously contributing to the generation of the overall revenues and gains. Management also believes that its operating expenses should be classified by function to: (i) those directly related to each revenue (including general and administrative expenses and selling and marketing expenses relating directly to each operation); and (ii) overhead expenses which serve the business as a whole and are to be determined as general and administrative expenses. |
Convenience translation: | d. Convenience translation: The balance sheet as of December 31, 2017, and statement of income, statement of other comprehensive income, statement of changes in shareholders’ equity and statement of cash flows for the year then ended have been translated into USD using the representative exchange rate as of that date (USD 1= NIS 3.467). Such translation was made solely for the convenience of the U.S. readers. The USD amounts so presented in these financial statements should not be construed as representing amounts receivable or payable in USD or convertible into dollars but only a convenience translation of reported NIS amounts into USD, unless otherwise indicated. The convenience translation supplementary financial data is audited and is not presented in accordance with IFRSs. |
Operating cycle | e. Operating cycle: The Group is unable to clearly identify its actual operating cycle with respect to trading property. As such, the Group’s operating cycle relating to trading property and corresponding borrowings is 12 months. Trading property and borrowings associated therewith are presented as non-current assets and non-current liabilities, respectively. |
Basis for consolidation | f. Basis for consolidation: 1. Assessment of control: The audited consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (“Subsidiaries”). Control is achieved where the Company: ● Has the power over the investee; ● Is exposed, or has rights, to variable returns from its involvement with the investee; ● Has the ability to use its power to affect its returns. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. As for de facto control of the Company in PC see w (2) below. 2. Changes in the Group’s ownership interests in existing subsidiaries: Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company. |
Investments in associates and joint ventures | g. Investments in associates and joint ventures: An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. The results and assets and liabilities of associates or joint ventures are incorporated in these audited consolidated financial statements using the equity method of accounting. Under the equity method, an investment in an associate or a joint venture is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate or joint venture. When the Group’s share of losses of an associate or a joint venture exceeds the Group’s interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate or joint venture), the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee becomes an associate or a joint venture. On acquisition of the investment in an associate or a joint venture, any excess of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognized as goodwill, which is included within the carrying amount of the investment. In circumstances where the Group’s interest in an investee company is in the form of mixed securities (such as ordinary shares, preferred shares or other senior securities, or loans), the Group records equity losses in excess of the Group’s investment in the ordinary shares of the investee based on the priority liquidation mechanism, that is, allocating the loss to the other components in reverse order to their seniority in liquidation. Where necessary, adjustments are made to the financial statements of associates to adjust their accounting policies with those of the Company. The requirements of IAS 39 are applied to determine whether it is necessary to recognize any impairment loss with respect to the Group’s investment in an associate or a joint venture. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases. |
Foreign currency | h. Foreign currency: 1. Foreign currency transactions: The financial statements of each individual entity of the Group are presented based on its functional currency. Transactions in currencies other than each individual entity’s functional currency (foreign currency) are translated into that entity’s functional currency based on the foreign exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency using the foreign exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the historical exchange rate prevailing at the date of the transaction. Non-monetary assets and liabilities carried at fair value that are denominated at foreign currency are translated at the exchange rates prevailing at the date when the fair value was determined. Exchange rate differences as a result of the above are recognized in statement of income, except for: (i) exchange rate differences charged to foreign currency translation reserve (see (2) below); and (ii) exchange rate differences charge to revaluation of property plant and equipment carried at fair value (see l below) 2. Financial statements of foreign operations: For the purpose of the audited consolidated financial statements, the assets and liabilities of foreign operations (the functional currency of each foreign operation is the currency of the primary economic environment in which it operates) are translated to New Israeli Shekels (“NIS”) which is the functional currency and the presentation currency of the Company, based on the foreign exchange rates prevailing at the balance sheet date. The revenues and expenses of foreign operations are translated to the functional currency of the Company based on exchange rates as at the date of each transaction or for sake of practicality using average exchange rates for the period. Foreign exchange rate differences arising from translation of foreign operations are recognized directly to foreign currency translation reserve within other comprehensive income. Exchange rate differences attributable to monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur, which form part of the net investment in a foreign operation are also included in the foreign currency translation reserve. On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, a disposal involving loss of joint control over a jointly controlled entity that includes a foreign operation, or a disposal involving loss of significant influence over an associate that includes a foreign operation), all of the exchange differences accumulated in the equity reserve in respect of that operation attributable to the owners of the Company are reclassified to profit or loss. In the case of a partial disposal that does not result in loss of control by the Group over a subsidiary that includes a foreign operation, the proportionate share of accumulated exchange differences are re-attributed to or from non-controlling interests and are not recognized in profit or loss. For all other partial disposals (i.e. reductions in the Group’s ownership interest in associates or jointly controlled entities that do not result in the Group losing significant influence or joint control), the proportionate share of the accumulated exchange differences is reclassified to profit or loss. 3. Rates of exchange of NIS, in effect, in relation to foreign currency (in NIS) are as follows: December 31 2017 2016 USD ($) 3.467 3.845 EURO ( 4.153 4.044 Romanian New Lei (RON) 0.8912 0.8905 Indian Rupee (INR) 0.0544 0.0565 Scope of change in the exchange rate, in effect, of the NIS in relation to the foreign currencies (%): December 31, 2017 2016 2015 USD ($) (10 ) (1 ) - EURO ( 3 (5 ) (10 ) Romanian New Lei (RON) (3 ) (5 ) (11 ) Indian Rupee (INR) (4 ) (4 ) (5 ) |
Cash and cash equivalents | i. Cash and cash equivalents: Cash equivalents include unrestricted readily convertible to a known amount of cash, maturity period of which, as at the date of investments therein, does not exceed three months. |
Financial assets | j. Financial assets: Financial assets of the Group are classified mainly as loans and receivables. Financial assets are initially measured at fair value Loans and receivable consist of trade receivables, deposits in banks, and financial institutions, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market. Loans and receivables are measured at amortized cost using the effective interest method less any impairment. Interest income is recognized by applying the effective interest rate, except for short-term receivables where the recognition of interest is considered immaterial. |
Trading property | k. Trading property Real estate properties for future sale are classified as trading properties and are stated at the lower of cost and net realizable value. Net realizable was determined based on the residual method using the estimated selling price less cost for completion and executing the sale discounted in the applicable discount rate without taking into account the developer’s profit and assuming that marketing period is restricted to a period which is lower than the normal one Costs of commercial centers include costs directly associated with their purchase (including payments for the acquisitions of leasehold rights and borrowing cost and all subsequent direct expenditures for the development and construction of such properties. Cost of trading property is determined mainly on the basis of specific identification of their individual costs. As for borrowing costs capitalized to trading property - see s below. As for write down of trading property - see (w1a) below. As for the operating cycle of trading property - see e above. |
Property plant and equipment | l. Property plant and equipment: 1. The Group’s hotel was presented in the consolidated balance sheets according to the revaluation model. Revaluations are carried out on a regular basis (generally each half year). A change in the value of the hotel resulting from revaluation or from exchange rate differences is attributable to other comprehensive income (any revaluation reserve is net of applicable deferred taxes). The reserve derived from the revaluation of the hotel is transferred to retained earnings over the period for which the hotel is used by the Group. The transferred amounts equal the difference between the depreciation charge based on the revalued carrying amounts of the hotel and the depreciation charge based on the hotels’ original cost. When a revaluated hotel is sold, the remaining amount in the revaluation reserve with respect to the same hotel (including any tax expenses) is directly transferred to retained earnings. Other property plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Improvements and renovations are charged to cost of assets. Maintenance and repair costs are charged to the statement of income as incurred. 2. Depreciation is calculated by the straight-line method over the assets estimated useful lives. Leasehold improvements are amortized over the estimated useful period of use not exceeding the lease period (including the period of renewal options that the Group intends to exercise). Annual depreciation rates are as follows: % Hotel 5 Other buildings 2.0 - 2.5 Building operating systems 7.0 (average) Others (*) 6.0 - 33.0 (*) Consists mainly: office furniture, machinery and equipment, electronic equipment, computers and peripheral equipment. |
Income taxes | m. Income taxes: Income tax expense represents the sum of the tax currently payable and deferred tax. Current taxes: Tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are non-taxable or deductible for tax purposes. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted as of the balance sheet date. Deferred taxes: Deferred taxes are calculated in respect of all temporary differences, including (i) differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit; and (ii) tax losses and deductions that may be carried forward for future years or carried backwards for previous years. Deferred taxes are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. The calculation of deferred tax liabilities does not include taxes that would have arisen in the event of a realization of investments in certain investee companies or upon receiving their retained earnings as dividends, since it is management’s policy not to realize these investees nor to declare dividend out of their retained earnings, or other form of profit distributions, in the foreseeable future, in a manner which entails additional substantial tax burden on the Group. For certain other Group’s investee companies, which management’s intention is to realize or to distribute their retained earnings as taxable dividend, tax liabilities (current and deferred) are recorded. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is to be settled or the asset is to be realized, based on tax rates and laws that have been enacted or substantively enacted as of the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax asset is recorded to the extent that it is probable that it would be realized against future taxable profits. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered in the future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Current and deferred taxes are recognized as an expense or income in profit or loss, except when they relate to items credited or debited directly to equity or in other comprehensive income, in which case the tax effect is also recognized directly in equity or in other comprehensive income; |
Financial liabilities and equity instruments issued by the Group | n. Financial liabilities and equity instruments issued by the Group: Equity instruments: An equity instrument is any contract that represents a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issuance costs. Financial liabilities: Financial liabilities at amortized cost of the Group consist of short-term credits, current maturities of long-term borrowing suppliers and service providers, borrowings and other payables, which are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortized cost using the effective interest method, unless recognition of interest is immaterial. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating the interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability or, when appropriate, a shorter period to the net carrying amount of the financial liability. When calculating the effective interest rate, the Group estimates cash flows considering all contractual terms of the financial liability (for example, prepayment, call and similar options). The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts. When the Group revises its estimates of payments, it adjusts the carrying amount of the financial liability to reflect actual and revised estimated cash flows. The Group recalculates the carrying amount by computing the present value of estimated future cash flows at the financial liability’s original effective interest rate. The adjustment is recognised in profit or loss as a financial expense. The Company has Consumer Price Index (“CPI”)-linked financial liabilities that are not measured at fair value through profit or loss. For these liabilities, the Company determines the effective interest rate as a real rate plus linkage differences according to the actual changes in the CPI through each balance sheet date. Rate of decrease in the Israeli CPI in 2016 was 0.3% (2015- decrease of 0.9%; 2014 - increase of 0.1%). Buyback of notes and loans: The Group derecognizes a financial liability from its statement of financial position when repurchasing its notes or its loans. The difference between the carrying amount of the notes or the loans repurchased at the repurchase date and the consideration paid is recognized in profit or loss. |
Derivative financial instruments and hedge accounting | o. Derivative financial instruments and hedge accounting: The Group enters into a variety of derivative financial instruments, some of which are intended to mitigate its exposure to interest rate and foreign exchange rate risks, including interest rate swaps and cross currency swaps. Further details of derivative financial instruments are disclosed in note 20. Derivatives are initially recognized at fair value at the date the derivative contract is entered into and are subsequently re-measured at their fair value each balance sheet date. The resulting gain or loss from a derivative is immediately recognized in profit and loss. A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the derivative is more than 12 months and as a current asset or a current liability if the remaining maturity of the derivative is less than 12 months. |
Provisions | p. Provisions: Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is more likely than not (probable) that the Group will be required to settle the obligation, and a reliable estimate can be measured with respect to the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation as of the balance sheet date, taking into account the risks and uncertainties associated with the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the result of the discounted expected cash flows, as long as the effect of discounting is material. |
Share-based payments | q. Share-based payments: Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instrument at the grant date. The Fair value is measured using the Black and Scholes (“B&S”) model except for capped-Stock Appreciation Rights (“SAR”) for which the Group is using the binomial model. The expected life used in the B&S model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis for each award over the vesting period, based on the Group’s estimate of shares that will eventually vest. |
Revenue recognition | r. Revenue recognition: General - The Group recognizes revenue and gains when the amount of revenue, or gain, can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group’s activities as described below. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and specifics of each arrangement. 1. Rental income from commercial centers - Revenues from leasing of property and management fees, as well as rental income relating to the operations of commercial centers are measured at the fair value of the consideration received or receivable. The lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease. The leases generally provide for rent escalations throughout the lease term. For these leases, the rental income is recognized on a straight line basis so as to produce a constant periodic rent over the term of the lease. Accordingly, accrued rental income recognized on a straight line basis, represents unbilled rent receivables that the Group will receive only if the tenant makes all rent payments required through the expiration of the initial term of the lease. The leases may also provide for contingent rent based on a percentage of the lessee’s gross sales or contingent rent indexed to further increases in the Consumer Price Index (CPI). For contingent rentals that are based on a percentage of the lessee’s gross sales, the Group recognizes contingent rental income when the change in the factor on which the contingent lease payment is based, actually occurs. Rental income for lease escalations that are indexed to future increases in the CPI, are recognized once the changes in the index have occurred. 2. Revenues from hotel operations are recognized upon performance of service. 3. Revenues and Gains from sales of real estate assets (including hotels), property, plant and equipment and trading properties are recognized when all the following conditions are satisfied: a) the Group has transferred to the buyer the significant risks and rewards of ownership of the asset sold; b) the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the asset sold; c) the amount of income can be measured reliably; d) it is probable that the economic benefits associated with the transaction will flow to the Group (including the fact that the buyer’s initial and continuing investment is adequate to demonstrate commitment to pay); e) the costs incurred or to be incurred in respect of the transaction can be measured reliably; and f) there are no significant acts that the Group is obliged to complete according to the sale agreement. For the Group, these conditions are usually fulfilled upon the closing of a binding sale contract. |
Capitalization of borrowing costs | s. Capitalization of borrowing costs: Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized to the cost of those assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get it ready for its intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Borrowing costs qualified for capitalization include mainly: Interest expenses and amortization of cost of raising debt. Capitalization of borrowing costs to qualifying assets commences when the Group starts the activities for the preparation of the asset for its intended use or sale and continues, generally, until the completion of substantially all the activities necessary to prepare the asset for its designated use or sale (i.e. when the commercial center is ready for lease). In certain cases, the Group ceases to capitalize borrowing cost if management decides that the asset can no longer be defined as a “qualifying asset”. In other circumstances, capitalization is suspended for certain time periods, generally where the efforts to develop a project are significantly diminished due to inter-alia lack of external finance, or ongoing difficulties in obtaining permits. The conclusions whether an asset is qualified for capitalization or not, or whether capitalization is to be suspended, are also dependent on management plans with regard to the specific asset, such as the ability to raise bank loans, find anchors and local market conditions that support or postpone the construction of the project. |
Earning (loss) per share | t. Earning (loss) per share: The Company presents basic and diluted earnings (loss) per share with respect to continued and discontinued operation. Basic earnings per share is computed by dividing income (loss) attributable to holders of ordinary shares of the Company, by the weighted average number of the outstanding ordinary shares during the period. In the computation of diluted earnings per share, the Company adjusts its income (loss) attributable to its ordinary shareholders for its share in income (loss) of investees by multiplying their diluted earnings per share by the Company’s interest in the investees including its holding in dilutive potential ordinary shares of the investees. In addition, the Company adjusts the weighted average outstanding ordinary shares for the effects of all the dilutive potential ordinary shares of the Company. On June 27, 2016, the Company executed reverse share split of its ordinary shares, therefore the earnings (loss) per share for previous periods was retrospectively adjusted. See also note 14. |
Statement of cash flows | u. Statement of cash flows: Investments in, and payments on account of, trading property are included as cash flow from operating activities. Interest and dividend received from deposits and investments are included as cash flow from investing activities. Interest paid on the Group’s borrowings (including interest capitalized to qualifying assets) and cash flows arising from changes in ownership interests in a subsidiary that do not result in a loss of control are included as cash flow from financing activities. |
Discontinued operation | v. Discontinued operation: A discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly distinguished from the rest of the Group and which: (1) Represents a separate major line of business or geographical area of operations; (2) Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or (3) Is a subsidiary acquired exclusively with a view to re-sale. Classification as a discontinued operation occurs on disposal or when the operation meets the criteria to be classified as held-for-sale, if earlier. When an operation is classified as a discontinued operation, the comparative statement of comprehensive income and cash flow is re-presented as if the operation had been discontinued from the start of the comparative year. |
Critical judgment in applying accounting policies and use of estimates | w. Critical judgment in applying accounting policies and use of estimates: In the application of the Group’s accounting policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis, and revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. In addition, in the process of applying the Group’s accounting policies, management makes various judgments, apart from those involving estimations, that can significantly affect the amounts recognized in the financial statements. The followings are the critical judgments and key sources of estimation that management has made while applying the Group’s accounting policies and that have the most significant effect on the amounts recognized in these financial statements. 1. Use of estimates: a) Write down of trading properties The recognition of a write down to the Group’s trading properties is subject to a considerable degree of judgment and estimates, the results of which, when applied under different principles, conditions and assumptions, are likely to result in materially different results and could have a material adverse effect on the Group’s audited consolidated financial statements. This valuation becomes increasingly difficult as it relates to estimates and assumptions for projects in the preliminary stage of development in addition to the lack of transactions in the real estate market in the CEE and India for same or similar properties. Management is responsible for determining the net realizable value of the Group’s trading properties. In determining net realizable value of the vast majority of trading properties, management utilizes the services of an independent third party recognized as a specialist in valuation of properties. For special assumption b) Litigation and other contingent liabilities: The Group is involved in litigation, tax assessments and other contingent liabilities in substantial amounts including class actions, FCPA and potential legal acts (see also note 4c1, 13b and note 13c). The Group recognizes a provision for such litigation when it is probable that the Group will be required to settle the obligation, and the amount of the obligation can be reliably estimated. The Group evaluates the probability and outcome of these litigations based on, among other factors, legal opinion and consultation and past experience. The outcome of such contingent liabilities may differ materially from management’s estimation. The Group periodically evaluates these estimations and makes appropriate adjustments to the provisions recorded in the audited consolidated financial statements. In addition, as facts concerning contingencies become known, the Group reassesses its position and makes appropriate adjustments to the audited consolidated financial statements. In rare circumstances, when the case is unique, complicated and involves prolong and uncommon proceedings, the Group cannot reliably estimate the outcome of said case c) Accounting for income taxes: The calculation of the Group’s tax liabilities involves uncertainties in the application and/or interpretation of complex tax laws, tax regulations and tax treaties, in respect of various jurisdictions in which the Group operates and which vary from time to time. In addition, tax authorities may interpret certain tax issues in a manner other than that which the Group has adopted. Should such contrary interpretive principles be adopted upon adjudication of such cases, the tax burden of the Group may be significantly increased. In calculating its deferred taxes, the Group is required to evaluate (i) the probability of the realization of its deferred income tax assets against future taxable income and (ii) the anticipated tax rates in which its deferred taxes would be utilized. d) Potential penalties, guarantees issued and expired building permits: Penalties and guaranties are part of the on-going construction activities of the Group, and result from obligations the Group has towards third parties, such as banks and municipalities. The Group’s management is required to provide estimations regarding risks evolving from penalties that the Group may have to settle. In addition, the Group’s operations in the construction area are subject to valid authorizations and building permits from local authorities. Under certain circumstances the Group is required to determine whether the building permits it obtained have not yet expired. It may occur that building permits have expired which might impose on the Group additional costs and expenses, or delays and even abandon project under construction see also note 4c1. e) Fair value of hotel: The fair value of the Radisson Complex is determined based upon the discounted cash flows (“DCF”) approach, the assumptions underlying the model, as well as the ability to support them by means of objective and reasonable market benchmarks, so they can be viewed as assumptions that market participants may have used, are significant in determining the fair value of the hotels. The predominant assumptions that may cause substantial changes in the fair value are: the capitalization rate, exit yield rate, the expected net operating income of the hotel (which is mainly affected by the expected average room rate and the occupancy rate as well as the level of operational expenses of the hotels) the level of refurbishments reserve and the capital expenditures that need to be invested in the hotel. The fair value of the Radisson Complex is performed by and independent appraisals with a local knowledgeable in the hotels business. 2. Critical judgment in applying accounting policies: De facto Control: As for December 31, 2017 and 2016, the Company holds approximately 44.9% of PC share capital; DK holds approx. 26.3% of PC share capital and the rest is widely spread by the public. The Company’s management is of the opinion that based on the absolute size of its holdings, the relative size of the other shareholdings and due to the fact that PC’s directors are appointed by normal majority of PC’s General Meeting, it has a sufficiently dominant voting interest to meet the power criterion, therefore the Company has de facto control over PC. |
New accounting standards and interpretation issued, that are not yet effective | x. New accounting standards and interpretation issued, that are not yet effective: The following are new accounting standards, amendments to standards and clarifications which are applicable or expected to be applicable, to the Group, and which have not yet become effective: - IFRS 9 Financial Instruments ‘In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments that replaces IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. IFRS 9 brings together all three aspects of the accounting for financial instruments project: classification and measurement, impairment and hedge accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018. Except for hedge accounting, retrospective application is required but providing comparative information is not compulsory. For hedge accounting, the requirements are generally applied prospectively, with some limited exceptions. The Group plans to adopt the new standard on the required effective date and will not restate comparative information. During 2017, the Group has performed a detailed impact assessment of all three aspects of IFRS 9. This assessment is based on currently available information and may be subject to changes arising from further reasonable and supportable information being made available to the Group in 2018 when the Group will adopt IFRS 9. Overall, the Group expects no significant impact on its statement of financial position and equity except for the effect of applying the impairment requirements of IFRS 9. The Group expects an increase in the loss allowance resulting in a negative impact on equity as discussed below. In addition, the Group will implement changes in classification of certain financial instruments. Loans are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest. The Group analyzed the contractual cash flow characteristics of those instruments and concluded that they meet the criteria for amortized cost measurement under IFRS 9. Therefore, adoption of IFRS 9 will not have a material effect on the classification and measurement of financial assets. In addition, on adoption of IFRS 9, effective interest rate calculated on Company’s bonds at amortized costs, will be adjusted as necessary in order to reflect the change in accounting policy related to modification of trust deeds terms. The initial application of IFRS 9 will impact the Group’s accounting treatment for the modification of financial liabilities without this resulting in derecognition. Under IAS 39, no gain or loss was recognized at the date of modification of the loans’ terms, instead the difference between the original and modified cash flows was amortized over the remaining term of the modified liability by re-calculating the effective interest rate. Under IFRS 9, a gain or losses should be recognised in profit or loss. These gains or losses, under IFRS 9, will be calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate. In summary, the impact of IFRS 9 adoption is expected to be, as follows: Impact on equity (increase/(decrease)) as of 31 December 2017: Adjustments NIS000 Liabilities and shareholders’ equity Bonds at amortized cost (5,751 ) Total liabilities (5,751 ) Net impact on equity (5,751 ) Retained earnings (5,751 ) - IFRS 15 Revenue from Contracts with Customers IFRS 15 was issued in May 2014, and amended in April 2016, and establishes a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under IFRS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after 1 January 2018. The Group plans to adopt the new standard on the required effective date using a modified retrospective method. During 2016, the Group performed a preliminary assessment of IFRS 15, which was continued with a more detailed analysis completed in 2017. 1. Sale of goods For contracts with customers in which the sale of trading property is generally expected to be the only performance obligation, adoption of IFRS 15 is not expected to have any impact on the Group’s revenue and profit or loss. The Group expects the revenue recognition to occur at a point in time when control of the asset is transferred to the customer, generally on delivery of the trading property. In preparing to adopt IFRS 15, the Group is considering the following: a) Variable consideration One contract with a buyer provide a final agreed value depends on sustainable NOI following 12 months of operation of the mall, followed by re-examined NOI again after 24 and 36 months of operation which may lead to an upward price adjustment. Currently, the Group recognizes revenue from the sale of trading property measured at the fair value of the consideration received or receivable. If revenue cannot be reliably measured, the Group defers revenue recognition until the uncertainty is resolved. Such provisions give rise to variable consideration under IFRS 15 and will be required to be estimated at contract inception and updated thereafter. IFRS 15 requires the estimated variable consideration to be constrained to prevent over-recognition of revenue. The Group does not expect that application of the constraint will result in more revenue being deferred than undercurrent IFRS. b) Warranty obligations The Group generally provides for warranties for general repairs and does not provide extended warranties in its contracts with buyers. As such, most existing warranties will be assurance-type warranties under IFRS 15, which will continue to be accounted for under IAS 37 Provisions, Contingent Liabilities and Contingent Assets, consistent with its current practice. c) Presentation and disclosure requirements The presentation and disclosure requirements in IFRS 15 are more detailed than under current IFRS. The presentation requirements represent a significant change from current practice and significantly increases the volume of disclosures required in the Group’s financial statements. Many of the disclosure requirements in IFRS 15 are new and the Group has assessed that the impact of some of these disclosures requirements will not be significant. In particular, the Group expects that the notes to the financial statements will be expanded because of the disclosure of significant judgements made: when determining the transaction price of those contracts that include variable consideration, how the transaction price has been allocated to the performance obligations, and the assumptions made to estimate the stand-alone selling prices of each performance obligation. In addition, as required by IFRS 15, the Group will disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. In 2017 the Group continued testing of appropriate systems, internal controls, policies and procedures necessary to collect and disclose the required information. - IFRS 16, “Leases”: IFRS 16 was issued in January 2016 and it replaces IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The standard includes two recognition exemptions for lessees – leases of ‘low-value’ assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expense on the right-of-use asset. Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. Lessor accounting under IFRS 16 is substantially unchanged from today’s accounting under IAS 17. Lessors will continue to classify all leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases. IFRS 16 also requires lessees and lessors to make more extensive disclosures than under IAS 17. IFRS 16 is effective for annual periods beginning on or after 1 January 2019. Early application is permitted, but not before an entity applies IFRS 15. A lessee can choose to apply the standard using either a full retrospective or a modified retrospective approach. The standard’s transition provisions permit certain reliefs. In 2018, the Group will continue to assess the potential effect of IFRS 16 on its consolidated financial statements. Since the Company’s lease contracts are not significant, the Company estimates that the adoption of the new Standard will not have a material impact on the Company’s assets and liabilities. However, at this stage, the Company is unable to quantify the impact on the financial statements. - IFRIC Interpretation 23 Uncertainty over Income Tax Treatment The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 and does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following: ● Whether an entity considers uncertain tax treatments separately; ● The assumptions an entity makes about the examination of tax treatments by taxation authorities; ● How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates; ● How an entity considers changes in facts and circumstances. An entity must determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty should be followed. The interpretation is effective for annual reporting periods beginning on or after 1 January 2019, but certain transition reliefs are available. The Group will apply interpretation from its effective date. Since the Group operates in a complex multinational tax environment, applying the Interpretation may affect its consolidated financial statements and the required disclosures. In addition, the Group may need to establish processes and procedures to obtain information that is necessary to apply the Interpretation on a timely basis. |
Significant Accounting Polici29
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
Schedule of exchange rate to foreign currencies | December 31 2017 2016 USD ($) 3.467 3.845 EURO ( 4.153 4.044 Romanian New Lei (RON) 0.8912 0.8905 Indian Rupee (INR) 0.0544 0.0565 |
Schedule of effect of changes in foreign exchange rates | December 31, 2017 2016 2015 USD ($) (10 ) (1 ) - EURO ( 3 (5 ) (10 ) Romanian New Lei (RON) (3 ) (5 ) (11 ) Indian Rupee (INR) (4 ) (4 ) (5 ) |
Schedule of annual depreciation rates | % Hotel 5 Other buildings 2.0 - 2.5 Building operating systems 7.0 (average) Others (*) 6.0 - 33.0 (*) Consists mainly: office furniture, machinery and equipment, electronic equipment, computers and peripheral equipment. |
Schedule of Impact on equity increase/(decrease) | Adjustments NIS000 Liabilities and shareholders’ equity Bonds at amortized cost (5,751 ) Total liabilities (5,751 ) Net impact on equity (5,751 ) Retained earnings (5,751 ) |
Deposits, Receivables and Oth30
Deposits, Receivables and Other Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits Receivables And Other Investments [Abstract] | |
Schedule of short-term deposits and investments | December 31 2017 2016 NIS in thousands Deposits at banks: EURO (1) - 26,795 NIS (2) 6,463 6,426 Other restricted deposits (3) - 2,215 6,463 35,436 Available for sale financial assets 4,032 4,091 10,495 39,527 (1) As of December 31, 2016, EUR 4 million (NIS 16 million) and EUR 2.5 million (NIS 10 million) is restricted mainly in respect of bank facilities agreements signed to finance Projects in Poland and Serbia, respectively. During 2017 the project’s companies have been sold. (2) As of December 31, 2017 and December 31, 2016 NIS 4.6 million and NIS 4 million respectively is restricted due to the Company’s settlement agreement as described in note 13a1 (3) As of December 31, 2016 Euro 0.5 million (NIS 2 million) is secured tenants deposit in respect of Suwalki and Torun malls that were sold during 2017. |
Schedule of trade account receivable | December 31, 2017 2016 Trade receivables (1) - 38,210 Less - Allowance for doubtful debts - (4,042 ) - 34,168 (1) In December 31, 2016 Includes EUR 5.6 million (NIS 23 million) from sale of plots see also note 4c3. |
Schedule of other receivables | December 31 2017 2016 NIS in thousands Income taxes 1,258 1,298 Governmental institutions 936 6,362 Advance to suppliers - 525 Prepaid expenses 1,818 3,510 Interest to receive 46 514 Other 3,164 1,135 7,222 13,344 |
Schedule of deposits and other long-term balances | December 31, 2017 2016 NIS in thousands Deposits at banks (1) - 11,453 Available for sale financial assets 1,596 1,596 Vendor loan (see note 19) 33,221 - Prepaid expenses - 7,064 Other 57 3,371 34,874 23,484 (1) Was deducted in 2017 due to the sale of the Company’s subsidiary that holds the Radisson Complex (see note 19). |
Trading Property (Tables)
Trading Property (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trading Proprerty [Abstract] | |
Schedule of composition | December 31, 2017 2016 NIS in thousands Balance as of January, 1 1,310,549 1,467,760 Construction costs (1) 7,895 108,511 Disposal during the year (2) (736,484 ) (158,786 ) Write-down to net realizable value (see b below ) (92,398 ) (196,333 ) Firstly consolidated entity (see note 4d2 ) - 154,598 Foreign currency translation adjustments 3,057 (65,201 ) Balance as of December, 31 492,619 1,310,549 (1) 2017 and 2016 - mainly due to construction activities in Serbia. (2) As for disposition of trading properties in 2017 see c2- c10 below. |
Summary of composition of trading property per stages of development | December 31, 2017 2016 NIS in thousands Projects designated for development - 226,449 Other trading properties 492,619 1,084,100 Total 492,619 1,310,549 |
Summary of composition of trading property distinguished between freehold and leasehold rights: | December 31, 2017 2016 NIS in thousands Freehold 212,075 973,217 Leasehold 280,544 337,332 492,619 1,310,549 |
Summary of write down trading properties per project | Year ended 2017 2016 NIS in thousands Project name (City, Country) Chennai (Kadavantara, India) (see d1 below) 7,879 24,564 Bangalore (Aayas, India) (see d2 below) 35,178 - Helios Plaza (Athens, Greece) - 2,992 Lodz Plaza (Lodz, Poland) 4,983 1,618 Krusevac (Krusevac, Serbia) 1,661 809 Casa radio (Bucharest, Romania) (See c1 below) 41,946 137,117 Constanta (Constanta, Romania) - 3,445 Ciuc (Ciuc, Romania) - 3,842 Timisoara (Timisoara, Romania) - 10,514 Lodz residential (Lodz, Poland) 415 - Kielce (Kielce, Poland) - 4,448 BAS (Romania) - 3,235 Arena Plaza extention (Budapest, Hungary) 336 3,749 92,398 196,333 Change in provision in respect to PAB (1,641 ) (6,741 ) 90,757 189,592 |
Summary of the following changes in key inputs used in the valuations: | Plots Exit Yield Rental income for all phases Construction Cost Delay in construction commencement date (months) 0 +15bps +25bps +40bps +50bps -10% -5% 0 +5% +10% -10% -5% 0 +5% +10% 0 6 12 18 24 Casa Radio 209.7 193.2 182.7 167.3 157.6 111.3 160.5 209.7 258.6 307.6 285.6 248.1 209.7 171 132.4 209.7 204.3 198.9 194 189 |
Summary of general information regarding the Group's significant trading property projects | Purchase/ Rate of ownership As of December 31, As of December 31, transaction by the 2017 2017 2016 Project Location date group (%) Nature of rights Carrying Amount (MNIS) Operational Suwalki Plaza Poland Jun-06 100 Ownership Sold 163.5 Torun Plaza Poland Feb-07 100 Ownership Sold 281.8 Undeveloped lands designated for development Sport-Star Plaza Serbia Dec-07 100 Ownership Sold 226.2 Undeveloped lands not designated for development Casa Radio (see c1 above) Romania Feb-07 75 Leasing for 37 years (*)262.5 (*)296.4 Lodz residential Poland Sep-01 100 Ownership/ Perpetual usufruct 1.7 2.0 Timisoara Plaza Romania Mar-07 100 Ownership Sold 28.3 Lodz - plaza Poland Sep-09 100 Perpetual usufruct 16.2 20.6 Kielce Plaza Poland Jan-08 100 Perpetual usufruct Sold 8.9 Lesnzo Plaza Poland Jun-08 100 Perpetual usufruct Sold 3.2 Miercurea Csiki Plaza Romania Jul-07 100 Ownership 4.2 4.0 Constanta Plaza Romania July-09 100 Ownership Sold 5.3 Shumen Plaza Bulgaria Nov-07 100 Ownership Sold 3.2 Arena Plaza Extension Hungary Nov-05 100 Land use rights Sold 6.1 Helios Plaza Greece May-02 100 Ownership 13.7 13.3 Bangalore (see d below ) India Mar-08 100 Ownership 113.7 154.6 Chennai (see d below) India Dec-07 100 Ownership 73.4 84.5 Other small plots, grouped 7.2 8.6 492.6 1,310.5 (*) Represents gross value including commitment for PAB construction, which is presented as non-current provision in amount of NIS 53 million as of December 31, 2017, (in 2016 – NIS 54 million). |
Schedule of net realizable value measurement of chennai project | Parameter Premium (Discount) Accessibility -12.5 % Discount for shape and contiguity -20 % Location and Neighborhood profile -5 % Size -10 % Negotiation -5 % Conversion 5 % Topography -5 % Additional cost to be incurred at the site due to illegal excavation -5 % Total -58 % |
Schedule of net realizable value measurement of bangalore project | Parameter Premium (Discount) Accessibility 10 % FSI permissible 10 % Location and Neighborhood profile 5 % Contiguous Land Parcel -15 % Size -10 % Negotiation (Trans/Quote) -15 % Total Premium/Discount -15 % Discount on account of NGT order and presence of Drain -20 % Presence of minority shareholder -20 % Discount on account of possible change in zoning (open space/parks) -25 % |
Investments in Associates (Tabl
Investments in Associates (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments in Associates [abstract] | |
Schedule of aggregate information of associates | Year ended December 31 2017 2016 NIS in thousands The Group’s share of loss from continuing operations (20,202 ) (57,630 ) The Group’s share of total comprehensive income (20,202 ) (57,630 ) Aggregate carrying amount of the Group’s interests in these associates - 21,215 |
Investments in Joint Ventures (
Investments in Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments in Joint Ventures [Abstract] | |
Schedule of aggregate information of joint ventures | December 31 2017 2016 NIS in thousands The Group’s share of profit (loss) from continuing operations - 3,317 The Group’s share of total comprehensive income (loss) - 3,317 Aggregate carrying amount of the Group’s interests in these joint ventures 5,592 5,750 |
Additional Information as to 34
Additional Information as to Investments in Material Subsidiaries and Changes Thereof (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Additional Information As To Investments In Material Subsidiaries And Changes Thereof [Abstract] | |
Schedule of going concern and liquidity position of pc | Total Payment Due by period (in TEUR) Total Payment Due by period (in TNIS) Liquidity Requirements Within 1 year Within 1-1.25 years Within 1 year Within 1-1.25 years Debentures including current portion and interest (*) 23,700 36,700 (*) 98,426 152,415 General & administrative 3,100 600 12,874 2,492 Total liquidity requirements 26,800 37,300 111,300 154,907 Total Sources (**) 16,300 4,400 67,694 18,273 Total deficit (10,500 ) (32,900 ) (43,606 ) (136,634 ) (*) An amount of circa EUR 37.45 million (NIS 155.5 million) was repaid (excluding interest) following the balance sheet date. (**) The Company expects to increase the amount of its liquid balances during the 15 months starting April 1, 2018, by sale of plots of lands (including India) and others. |
Schedule of pc's non-controlling interest | Place of incorporation Proportion of ownership interests and voting rights held by non-controlling interests Loss allocated to non-controlling interests Accumulated non-controlling interests December 31 2017 2016 2017 2016 2017 2016 NIS’000 NIS’000 NIS’000 NIS’000 Netherland 55 % 55 % (51,986 ) (109,934 ) 60,617 121,615 |
Schedule of PC's summarized financial information of balance sheet | December 31 2017 2016 NIS in thousands Current assets 189,546 94,721 Non-current assets 394,622 1,207,882 Current liabilities (496,081 ) (1,098,525 ) Non-current liabilities (53,353 ) (55,990 ) Equity attributable to owners of the Company 25,884 (26,473 ) Non-controlling interests (60,617 ) (121,615 ) |
Schedule of PC's summarized financial information of income statement, and statement of cash flows | Year ended December 31, 2017 2016 2015 NIS in thousands Revenue 814,826 192,435 283,926 Expenses (923,646 ) (394,085 ) (500,262 ) Loss for the year from continuing operations (108,820 ) (201,650 ) (216,336 ) Loss for the year (108,820 ) (201,650 ) (216,336 ) Loss attributable to owners of the Company (48,833 ) (91,080 ) (97,122 ) Loss attributable to the non-controlling interests (59,987 ) (110,570 ) (119,214 ) Loss for the year (108,820 ) (201,650 ) (216,336 ) Other comprehensive income attributable to owners of the Company (3,095 ) 519 5,452 Other comprehensive income attributable to the non-controlling interests (3,798 ) 636 6,690 Other comprehensive income for the year (6,893 ) 1,155 12,142 Total comprehensive (loss) attributable to owners of the Company (51,928 ) (90,561 ) (91,670 ) Total comprehensive (loss) attributable to the non-controlling interests (63,785 ) (109,934 ) (112,524 ) Total comprehensive (loss) for the year (115,771 ) (200,495 ) (204,194 ) Net cash inflow (outflow) from operating activities (1,637 ) (260,148 ) (10,481 ) Net cash inflow (outflow) from investing activities 400,812 165,014 92,273 Net cash (outflow) from financing activities (239,979 ) (144,980 ) (159,363 ) Net cash inflow (outflow) 159,196 (240,114 ) (77,571 ) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | December 31, 2017 Real estate Hotels at At cost model Operating Land and Other Total NIS in thousands Cost: Balance as of January, 1 711,906 15,236 31,516 758,658 Adjustment of Depreciation and amortization balance as of December 31, 2017 (28,880 ) - - (28,880 ) Additions during the year 3,156 - - 3,156 Revaluation of hotels during the year 11,637 - - 11,637 Disposals during the year (*) (696,072 ) (15,288 ) (3,685 ) (715,045 ) Foreign currency translation adjustments (1,748 ) 72 463 (1,213 ) Balance as of December, 31 - 20 28,294 28,314 Accumulated depreciation: Balance as of January 1, - 7,482 25,051 32,533 Adjustment of Depreciation and amortization balance as of December 31, 2017 (28,880 ) - - (28,880 ) Additions during the year 28,880 52 71 29,003 Disposals during the year - (7,514 ) (2,528 ) (10,042 ) Foreign currency translation adjustments - - 380 380 Balance as of December, 31 - 20 22,974 22,994 Provision for impairment: Balance as of January, 1 - - 4,490 4,490 Balance as of December, 31 - - 4,490 4,490 Net book value - - 830 830 (*) See also Note 19. December 31, 2016 Real estate Hotels at At cost model Operating plot designated for hotel Land and buildings Other fixed assets Total NIS in thousands Cost: Balance as of January, 1 678,516 18,700 16,049 38,078 751,343 Adjustment of Depreciation and amortization balance as of December 31, 2016 (37,017 ) - - - (37,017 ) Additions during the year 2,473 - 68 2,541 Revaluation of hotels during the year 106,842 - - - 106,842 Disposals during the year - (18,700 ) - (5,712 ) (24,412 ) Foreign currency translation adjustments (38,908 ) - (813 ) (918 ) (40,639 ) Balance as of December, 31 711,906 - 15,236 31,516 758,658 Accumulated depreciation: Balance as of January 1, - - 7,858 31,129 38,987 Adjustment of Depreciation and amortization balance as of December 31, 2016 (37,032 ) - - - (37,032 ) Additions during the year 37,032 - 307 37,339 Disposals during the year - - (5,513 ) (5,513 ) Foreign currency translation adjustments - - (376 ) (872 ) (1,247 ) Balance as of December, 31 - - 7,482 25,051 32,533 Provision for impairment: Balance as of January, 1 - 3,700 - 4,490 8,190 Balance as of December, 31 - - - 4,490 4,490 Net book value 711,906 - 7,754 1,975 721,635 (*) Had the Group continued to present the hotel based on the cost model, their net book value as of December 31, 2016, would have been NIS 284 million . |
Schedule of real estate assets included in property plant and equipment | Year ended December 31, 2017 2016 NIS in thousands Freehold rights - 711,906 Leasehold rights - - Net book value - 711,906 |
Current Maturities of Long Te36
Current Maturities of Long Term Borrowing and Short-Term Credits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Current Maturities of Long Term Borrowing and Short-Term Credits [Abstract] | |
Schedule of current maturities of long term borrowing and short-term credits | December 31, 2017 2016 NIS in thousands Current maturities and short term credits (*) (**) 780,861 1,128,768 (*) The Balance as of December 31, 2017, is comprised mainly: (I) PC’s notes in the total amount of NIS 486 million which was reclassified as current liabilities due to the breach of covenants set in trust deeds (see note 7 b 2) (II) The Company notes in the amount of NIS 295 which are due on May 2018 ( see note 11d (**) During December 2017, the Company repaid the entire loan to Bank Hapoalim in amount of approximately NIS 59 million. |
Payables and Other Credit Bal37
Payables and Other Credit Balances (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Other Credit Balances [Abstract] | |
Schedule of payables and other credit balances | December 31, 2017 2016 NIS in thousands Income taxes 437 3,070 Other governmental institutions 14 1,235 Wages and fringe benefits 6,488 2,235 Derivative (i) - 1,831 Provision for real estate tax (see also note 13.c.12) 4,213 - Income in advance 136 6,429 Provision in respect of plots in India (see also note 4.d.) 16,308 5,646 Provision (see also note 13) 29,167 15,354 Accrued expenses, and others 6,530 10,899 63,293 46,699 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Borrowings [Abstract] | |
Composition of borrowings | December 31, 2017 2016 NIS in thousands At amortized cost: Loans from banks and financial institutions (see c below) - 761,710 Notes issued by the Company (see d below) 538,668 498,637 Notes issued by PC (see e below) 485,504 721,292 1,024,172 1,981,639 Less - current maturities (see note 9) (780,861 ) (1,128,769 ) 243,311 852,870 |
Summary of linkage basis and interest rates | December 31, 2017 Interest rates NIS in thousands % NIS Israeli CPI + 6 - 6.9 1,002,913 PLN 6m Wibor + 6 21,259 |
Schedule of table provides breakdown of the group's loans from banks and financial institutions | December 31, 2017 2016 NIS in thousands Loans provided to the Company (*) - 59,082 Loans provided to PC (mainly with respect to trading property) (**) - 332,705 Loans provided to SPV holding the Radisson Complex (see note 19) - 369,923 - 761,710 (*) During December 2017, the Company repaid the entire loan to Bank Hapoalim in amount of approximately NIS 59 million. (**) Following the sale of PC subsidiaries, all PC bank loan were derecognized in amount of approximately NIS 333 million. |
Schedule of present the terms of the company's notes | Effective interest rate interest rate Principal final maturity Adjusted par value Carrying amounts % % NIS in thousands Series H notes 9.47 CPI+6 2018 296,160 295,363 Series I notes 12.8 CPI+6 2019 217,279 184,955 Accumulated interest on Series I notes 58,350 58,350 571,789 538,668 Effective interest rate interest rate Principal final maturity Adjusted par value Carrying amounts % % NIS in thousands Series H notes 9.47 CPI+6 2018 296,160 282,935 Series I notes 12.8 CPI+6 2019 217,279 172,954 Accumulated interest on Series I notes 42,748 42,748 556,187 498,637 |
Schedule of following table present PC's notes | The following table present PC’s notes as of December 31, 2017: Effective interest rate Contractual interest rate Principal final maturity(*) Adjusted par value Carrying amounts % % NIS in thousands Series A Notes 9.47 % CPI+6 2020 198,974 190,865 Series B Notes 13.48 % CPI+6.9 2019 291,333 273,380 Polish Notes 10.46 % 6%+ 6M WIBOR 2018 21,176 21,259 511,483 485,504 The following table present PC’s notes as of December 31, 2016: Effective interest rate Contractual interest rate Principal final maturity(*) Adjusted par value Carrying amounts % % NIS in thousands Series A Notes 9.47 % CPI+6 2020 257,772 248,716 Series B Notes 13.48 % CPI+6.9 2019 453,264 429,871 Polish Notes 10.46 % 6%+ 6M WIBOR 2018 42,988 42,705 754,024 721,292 (*) (*) The Debentures are classified as current liabilities (see note 7 b2). |
Summary of the non-substantial modifications of terms regarding the approved amendment | EUR NIS 2018 24,175 100,398 2019 84,568 351,210 2020 14,417 59,874 123,160 511,482 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Schedule of composition | Year ended December 31, 2017 2016 2015 NIS in thousands Current - 804 2,166 For previous year 11,404 - - Deferred (160 ) 2,216 2,236 11,244 3,020 4,402 |
Schedule of reconciliation between the income tax expenses computed on the pretax income at the ordinary tax rates applicable for the theoretical tax and the tax amount | Year ended December 31, 2017 2016 2015 NIS in thousands Profit (loss) before income taxes (237,534 ) (316,961 ) (366,751 ) Israeli company’s statutory tax rate (%) 24 25 26.5 The theoretical tax (57,008 ) (79,241 ) (97,189 ) Differences in tax burden in respect of: Exempt income, net of unrecognized expenses 11,139 673 9,991 Prior-year losses for which deferred taxes had not previously been recorded, including utilization (940 ) (2,873 ) (17,805 ) Losses and other timing differences for which deferred taxes had not been recorded 39,272 60,545 104,115 The effect of different measurement principles applied for the financial statements and those applied for income tax purposes (including exchange differences) 5,330 (1,493 ) 7,457 Differences in tax rates on income of foreign subsidiaries (2,034 ) 11,830 (13,916 ) The Group’s share in results of associated companies 4,849 13,579 11,620 Taxes for prior years 11,404 - - Other differences, net (768 ) - 129 11,244 3,020 4,402 |
Schedule of carry forward losses and deductions | December 31 2017 (in thousand NIS) 2018 3,339 2019 26,157 2020 47,601 2021 and thereafter 805,601 882,698 |
Schedule of deferred income taxes | Year ended December 31, 2017 Balance Charge to profit and loss account Deconsolidation (*) Foreign currency translation adjustments Balance December 31, 2017 NIS in thousands Differences between book value of property, plant and equipment and value for income tax purposes (92,472 ) - 92,472 - - Temporary difference associated with investment in subsidiaries (7,216 ) 7,216 - - - Timing differences - income and expenses (8,654 ) 1,880 - 291 (6,483 ) Carry forward tax losses and deductions 15,400 (8,936 ) - 19 6,483 Net deferred taxes (92,942 ) 160 92,472 310 - (*) See Note 19. Year ended December 31, 2016 Balance Charge to profit and loss account Charged to revaluation reserve Foreign currency translation adjustments Balance as of December 31, 2016 NIS in thousands Differences between book value of property, plant and equipment and value for income tax purposes (82,990 ) 1,319 (17,046 ) 6,245 (92,472 ) Temporary difference associated with investment in subsidiaries - (7,216 ) - - (7,216 ) Timing differences - income and expenses (15,969 ) 6,721 (319 ) 913 (8,654 ) Carry forward tax losses and deductions 17,900 (425 ) - (2,075 ) 15,400 Net deferred taxes (81,059 ) 399 (17,365 ) 5,083 (92,942 ) |
Schedule of deferred tax assets | December 31, 2017 2016 NIS in thousands Timing differences - income and expenses 1,429 1,602 Carry forward tax losses and deductions 271,542 270,882 272,971 272,484 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share Capital [Abstract] | |
Schedule of share capital | Ordinary shares of NIS no par value each 2017 2016 2015 No nominal par value NIS 1.00 NIS 1.00 Authorized share capital 11,666,667 11,666,667 35,000,000 Issued and outstanding 9,190,808 9,190,808 27,572,426 |
Options Plans (Tables)
Options Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Options Plans [abstract] | |
Schedule of Elbit Medical plan | Year ended December 31 2017 2016 Number of options Weighted average exercise price Number of options Weighted average exercise price (NIS) (NIS) Balance at the beginning of the year 158,592,747 0.14 140,035,935 0.14 Granted (1) 500,000 0.13 22,298,912 0.10 Forfeited (104,685,257 ) 0.13 (3,742,100 ) 0.40 Exercised (36,670,449 ) 0.13 - - Balance at the end of the year 17,737,041 0.11 158,592,747 0.11 Options exercisable at the year end 2,371,100 0.13 136,293,835 0.13 |
Schedule of options plan adopted by PC | Number of options Max exercisable number of shares average exercise price Vested as of average contractual life Option granted to key personnel PC’s plan 235,520 356,781 GBP 43 253,520 5.06 years 30,000 |
Additional Details Concerning I
Additional Details Concerning Income Statement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Additional Details Concerning Income Statement [Abstract] | |
Schedule of additional details concerning income statement | Year ended December 31, 2017 2016 2015 NIS in thousands a. Cost of commercial centers Direct expenses: Cost of trading property sold 771,765 112,346 227,910 Wages and fringe benefits 396 1,503 3,341 Energy costs 1,900 3,868 6,073 Taxes and insurance 2,405 4,764 6,999 Maintenance of property and other expenses 2,442 5,351 8,286 778,908 127,832 252,609 Other operating expenses: Wages and fringe benefits 11,726 13,497 16,716 Professional services 9,224 8,458 7,638 Advertising 2,884 6,685 7,247 Other 2,759 2,932 5,363 26,593 31,572 36,964 Depreciation and amortization 122 402 787 805,623 159,806 290,360 b. General and administrative expenses Wages and fringe benefits 4,372 3,744 6,687 Stock-based compensation expenses 325 27 1,086 Depreciation and amortization 12 19 29 Expenses relating to the Company’s plan of arrangement 122 221 412 Professional expenses 5,728 2,326 2,867 Other 4,371 3,920 5,597 14,930 10,257 16,678 c. Financial expense Interest and CPI linkage on borrowings 103,360 193,116 200,169 Gain from buy back of notes and bank loan (see note 11d2) - (78,193 ) (55,475 ) Loss from foreign currency translation differences 7,273 30,018 69,003 Other financial expenses (income) 1,651 1,405 (5,976 ) Total financial expenses 112,284 146,346 207,721 Financial expenses capitalized to qualified assets 12 (21,992 ) - 112,296 124,354 207,721 Year ended 2017 2016 2015 NIS in thousands d. Financial income Interest on deposits and receivables 168 203 649 Gain (loss) from foreign currency translation differences 91 (1,259 ) 1,505 Other financial income 1,552 - - 1,811 (1,056 ) 2,154 e. Change in fair value of financial instruments measured at fair value through profit and loss Loss from change in fair value of derivatives (mainly swap and forward transactions) - (2,707 ) - Gain on marketable securities - - 2,568 - (2,707 ) 2,568 f. Write down, charges and other expenses, net Write down of trading property (i) 89,345 189,592 86,717 Realization of foreign currency translation reserve to the profit and loss - - 3,534 Initiation expenses (ii) 12,461 1,796 6,239 Other, net (iii) (686 ) (29,070 ) 2,802 101,120 162,318 99,292 (i) See note 4b regarding trading property write downs. (ii) Includes mainly cost and expenses in respect of the Group’s operations in India. (iii) In 2016 -Including gain from increase in holdings in Indian subsidiaries. Refer also to note 4d. j. Earnings per share (*) Basic and diluted earnings per share: The earnings and weighted average number of ordinary shares used in the calculation of the basic earning per share are as follows: Profit (Loss) from continuing operations (185,132 ) (202,630 ) (242,709 ) Profit (Loss) from discontinued operation (152,903 ) 7,913 56,231 Weighted average number of shares used in computing basic earnings per share (thousands) 9,191 9,191 9,191 (*) The earnings used in the calculation of all diluted earnings per share are same as those for the equivalent basic earnings per share measures. |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Parties [Abstract] | |
Schedule of benefits to key management personnel | Year ended December 31, 2017 2016 2015 NIS in thousands Benefits to key management personnel Salaries, directors’ fees and bonuses 4,655 3,373 4,798 Termination benefits of former key personnel 200 - - Post-employment benefits - 239 257 Amortization of stock based compensation expenses 399 53 866 5,254 3,665 5,921 Number of recipients (excluding directors) 2 2 2 |
Schedule of balances with related parties | December 31, 2017 2016 NIS in thousands Liabilities: The Company’s and PC’s traded notes 116,130 211,790 Benefits payable to key management personnel 3,499 2,114 119,628 213,904 |
Segments Reporting (Tables)
Segments Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segments Reporting [abstract] | |
Summary of data regarding business segments | Year ended December 31, 2017 Commercial centers Medical industries and devices Plots in India Other activities and allocations Equity method adjustments Total Revenues 814,826 117,488 - - (117,488 ) 814,826 Segment profit (loss) (36,929 ) (135,445 ) (55,422 ) - 135,445 92,450 Financial income (expenses) (5,281 ) - - - - (5,281 ) Share in losses of associates, net - (15,156 ) - - (5,047 ) (20,202 ) Adjustments: (14,930 ) Unallocated other expenses 532 Unallocated financial expenses (107,015 ) Financial income 1,811 Loss before income taxes (237,534 ) Additions to segment assets 7,895 - - - - 7,895 Unallocated 3,156 Total additions 11,051 Depreciation and amortization of segment assets 52 - - - - 52 Unallocated 28,951 Total Depreciation and amortization 29,003 Impairment of segment assets 47,700 - 43,057 - - 90,757 Unallocated - Total Impairment 90,757 Assets and Liabilities December 31, 2017: Segment assets 305,503 - 187,509 5,845 - 498,856 Equity basis investments - - - - 5,437 5,437 Unallocated 513,078 Total Assets 1,017,371 Liabilities Segment liabilities 54,792 - 38,477 - - 93,269 Unallocated liabilities 1,072,887 Total Liabilities 1,166,156 Year ended December 31, 2016 Commercial centers (i) Medical industries and devices Plots in India Other activities and allocations Equity method adjustments Total Revenues 210,014 96,333 - - (113,911 ) 192,436 Segment profit (loss) (135,061 ) (119,689 ) 9,354 - 116,361 (129,035 ) Financial income (expenses) 60,454 - - - 60,454 Share in losses of associates, net - (7,960 ) - - (46,353 ) (54,313 ) Adjustments: (10,257 ) Unallocated other expenses (652 ) Unallocated financial expenses (184,809 ) Financial income (1,056 ) Change in fair value of financial instruments measured at FVTPL 2,707 Loss before income taxes (316,961 ) Additions to segment assets 94,406 - 154,598 - - 249,004 Unallocated 2,473 Total additions 251,477 Depreciation and amortization of segment assets 306 - - - - 306 Unallocated 37,109 Total Depreciation and amortization 37,415 Impairment of segment assets 165,028 24,564 189,592 Unallocated - Total Impairment 189,592 Assets and Liabilities December 31, 2016: Segment assets 1,126,871 - 245,092 6,453 (5,702 ) 1,372,714 Equity basis investments 15,916 11,033 26,949 Unallocated 861,546 Total Assets 2,261,209 Liabilities Segment liabilities 428,386 - 3,319 - (43 ) 431,662 Unallocated liabilities 1,780,933 Total Liabilities 2,212,595 (i) Includes mainly revenues from commercial centers under operation until their sale and consideration from sales of commercial centers. Year ended December 31, 2015 Commercial centers Medical industries and devices Plots in India Other activities and allocations Equity method adjustments Total NIS in thousands Revenues 309,302 69,432 - - (88,095 ) 290,639 Segment profit (loss) (74,170 ) (95,805 ) (12,325 ) - 92,656 (89,644 ) Financial income (expenses) 29,605 1,353 - - - (30,958 ) Share in losses of associates, net - (13,465 ) - - (29,460 ) (42,925 ) Adjustments: Unallocated general and administrative expenses (16,678 ) Unallocated other expenses (9,369 ) Unallocated financial expenses (176,763 ) Financial income 2,154 Change in fair value of financial instruments measured at FVTPL (2,568 ) Loss before income taxes (366,751 ) Additions to segment assets 28,562 - - 133 - 28,695 Unallocated 23,183 Total additions 51,878 Depreciation and amortization of segment assets 863 - - 38 - 896 Unallocated 32,184 Total Depreciation and amortization 33,085 Impairment of segment assets 85,918 - - - - 85,918 Unallocated - Total Impairment 85,918 Assets and Liabilities December 31, 2015: Segment assets 1,579,921 262,183 247,383 7,081 (599,531 ) 1,497,038 Equity basis investments - 24,233 - - 267,950 292,183 Unallocated 914,331 Total Assets 2,703,552 Liabilities Segment liabilities 658,994 92,644 2,624 - (217,930 ) 536,332 Unallocated liabilities 1,863,156 Total Liabilities 2,399,488 (i) Includes mainly revenues from commercial centers under operation until their sale and consideration from sales of commercial centers. |
Summary of revenues by geographical areas | Year ended December 31, 2017 2016 2015 NIS in thousands East and central Europe(i) 814,826 192,436 133,631 India - - 150,296 Other - - 6,712 814,826 192,436 290,639 (I) The following table provides an additional information in respect of the revenues in east and central Europe per countries: Year ended December 31, 2017 2016 2015 NIS in thousands Poland 514,291 76,724 71,219 Czech Republic - 43,519 9,240 Romania 36,538 2,898 45,217 Serbia 246,534 68,165 3,832 Other 17,463 1,130 4,123 814,826 192,436 133,631 |
Summary of non-current assets by geographical areas | Segment assets December 31, 2017 2016 NIS in thousands East and central Europe 300,165 1,084,749 Israel 1,599 24,189 India 193,450 245,091 495,214 1,354,029 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations [Abstract] | |
Schedule of statement of discontinued operations | Year ended 2017 2016 2015 NIS in thousands (except for per-share data) Revenues from hotel operations and management 130,142 135,839 147,886 Revenues from fashion merchandise - - 1,857 130,142 135,839 149,743 Expenses and losses Cost of fashion merchandise - - 4,123 Cost of hotel operations and management 105,678 115,367 126,849 Financial expenses 20,103 19,634 31,444 Other income, net (669 ) (6,961 ) (70,133 ) (125,112 ) (128,040 ) (92,283 ) Profit (loss) from discontinued operations before income taxes (5,030 ) 7,799 57,460 Income tax (income) expenses 80 (114 ) 1,229 Profit (loss) from discontinued operations (5,110 ) 7,913 56,231 Gain from sale of hotels (55,835 ) - - Release of capital funds as a result of the sale of hotels 213,848 - - Total Profit from discontinued operations 152,903 7,913 56,231 Basic and diluted earnings per share (16.64 ) 0.85 6.11 As previously reported Amendment As presented in these financial statements NIS in thousands Revenues Revenues from sale of commercial centers 200,078 - 200,078 Revenues from Hotels operations and management 147,886 (147,886 ) - Total revenues 347,964 (147,886 ) 200,078 Gains and other Rental income from commercial centers 83,849 - 83,849 Gain from sale of investees 6,712 - 6,712 Total gains 90,561 - 90,561 Total revenues and gains 438,525 290,639 Expenses and losses Cost of commercial centers 290,360 - 290,360 Hotels operations and management 126,849 (126,849 ) - General and administrative expenses 16,678 - 16,678 Share in losses of associates, net 42,925 - 42,925 Financial expenses 236,288 (28,567 ) 207,721 Financial income (2,154 ) - (2,154 ) Change in fair value of financial instruments measured at fair value through profit and loss 5,446 (2,878 ) 2,568 Write-down, charges and other expenses, net 38,298 60,994 99,292 754,690 (97,300 ) 657,390 Loss before income taxes (316,165 ) (50,586 ) (366,751 ) Income taxes expenses (tax benefits) 5,631 (1,229 ) 4,402 Loss from continuing operations (321,796 ) (49,357 ) (371,153 ) Profit from discontinued operations, net 6,874 49,357 56,231 Loss for the year (314,922 ) - (314,922 ) Attributable to: Equity holders of the Company (186,150 ) - (186,150 ) Non-controlling interest (128,772 ) - (128,772 ) (314,922 ) - (314,922 ) Loss from continuing operations Equity holders of the Company (193,024 ) (49,685 ) (242,709 ) Non-controlling interest (128,772 ) 309 (128,463 ) (321,796 ) (49,376 ) (371,172 ) Profit from discontinued operation, net Equity holders of the Company 6,874 49,666 56,540 Non-controlling interest - (309 ) (309 ) 6,874 49,357 56,231 Year ended 2017 2016 2015 NIS in thousands (except for per-share data) Operating activities 49,142 26,443 (5,921 ) Other investment activities 297,875 14,082 216,957 Other financing activities (157,948 ) 118,556 (189,203 ) Net cash provided by (used in) discontinued operations 189,069 159,081 (21,833 ) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [abstract] | |
Schedule of balances of financial instruments | December 31, 2017 2016 NIS in thousands Financial assets Cash and cash equivalents 465,740 89,688 Loans and receivables 44,545 88,199 Available for sale financial instruments 4,032 4,091 514,317 181,978 Financial Liabilities Derivative financial liabilities at fair value through profit and loss - 1,832 Financial liabilities at amortized cost 1,088,479 2,051,905 1,088,479 2,053,737 |
Schedule of foreign currency risk in sensitivity analysis | As of December 31, 2017: Functional currency Linkage currency Change Profit (loss) In thousand NIS Assets Cash and deposits NIS EURO +10% 368 Cash and deposits NIS USD +10% 131 Cash and deposits EURO PLN +10% 174 Cash and deposits EURO USD +10% 243 Cash and deposits EURO NIS +10% 13,305 14,221 Financial liabilities Loans at amortized cost EURO PLN +10% (2,125 ) Notes at amortized cost EURO NIS +10% (46,425 ) (48,550 ) As of December 31, 2016: Functional currency Linkage currency Change Profit (loss) In thousand NIS Assets Cash and deposits NIS EURO +10% 501 Cash and deposits NIS USD +10% 181 Cash and deposits EURO PLN +10% 947 Cash and deposits EURO USD +10% 135 Cash and deposits EURO USD +10% 260 2,024 Financial liabilities Loans at amortized cost NIS EURO +10% (5,908 ) Loans at amortized cost EURO PLN +10% (4,271 ) Notes at amortized cost EURO NIS +10% (67,859 ) Loans at amortized cost RON EURO +10% (36,992 ) (115,030 ) As of December 31, 2015: Functional currency Linkage currency Change Profit (loss) In thousand NIS Assets Cash and deposits NIS EURO +10% 1,637 Cash and deposits EURO NIS +10% 857 Cash and deposits EURO PLN +10% 883 Cash and deposits EURO RON +10% 1,163 Cash and deposits EURO USD +10% 1,005 5,545 Financial liabilities Loans at amortized cost NIS EURO +10% (15,746 ) Loans at amortized cost EURO PLN +10% (5,503 ) Notes at amortized cost EURO NIS +10% (71,615 ) Loans at amortized cost RON EURO +10% (25,344 ) (118,208 ) |
Schedule of financial assets and liabilities | Profit (loss) Year ended December 31, 2017 2016 2015 NIS in thousands Loans linked to the EURO (*) - (3,918 ) (5,928 ) Notes linked to the PLN (213 ) (427 ) (550 ) (213 ) (4,345 ) (6,478 ) |
Schedule of contractual repayment dates | As of December 31, 2017: 1st year (i) 2nd year 3rd year 4th year 5th year and thereafter Total NIS in thousands Financial liabilities Borrowing with fixed interest rate PC’s notes linked to the Israeli CPI (1) 238,898 236,812 55,566 - - 531,276 Notes linked to the Israeli CPI 303,564 310,222 - - - 613,786 542,462 547,034 55,566 - - 1,145,062 Borrowing with variable interest rate Notes linked to the PLN 21,949 - - - - 21,949 Suppliers, payable and other credit balances 47,999 - - - - 47,999 Total financial liabilities 612,410 547,034 55,566 - - 1,215,010 Financial assets Cash and cash equivalent 465,740 - - - - 465,740 Short term deposits 10,496 - - - - 10,496 Trade receivables and other receivables 3,210 - - - - 3,210 Long term deposits, loans and investments - - 33,221 - 1,653 34,874 Total financial assets 479,446 - 33,221 - 1,653 514,320 As of December 31, 2016: 1st year (i) 2nd year 3rd year 4th year 5th year and thereafter Total NIS in thousands Financial liabilities Borrowing with fixed interest rate Loans linked to EURO 29,376 29,719 30,495 334,890 - 424,480 PC’s notes linked to the Israeli CPI (1) 211,934 152,116 387,256 61,481 - 812,787 Notes linked to the Israeli CPI 17,770 303,564 310,486 - - 631,820 259,080 485,399 728,237 396,371 - 1,869,087 Borrowing with variable interest rate Loans linked to the EURO 261,453 9,923 10,588 89,784 53,240 424,988 Notes linked to the PLN 16,542 30,393 - - - 46,935 277,995 40,316 10,588 89,784 53,240 471,923 Suppliers, payable and other credit balances 53,532 - - 1,972 - 55,504 Total financial liabilities 590,607 525,715 738,825 488,127 53,240 2,396,514 Financial assets Cash and cash equivalent 89,688 - - - - 89,688 Short term deposits 39,527 - - - - 39,527 Trade receivables and other receivables 54,577 - - - - 54,577 Long term deposits, loans and investments - 2,827 - 13,593 - 16,420 Total financial assets 183,792 2,827 - 13,593 - 200,212 (1) This note assumes the minimum contractual payments on the debentures to achieve the Deferral see note 11 e |
Schedule of financial assets used as collaterals | December 31, 2017 2016 NIS in thousands Long term borrowings - 38,117 Guarantees provided by the Group 1,813 2,363 1,813 40,480 |
Schedule of financial assets (liabilities) measure at fair value | December 31 2017 2016 Book Value Fair Book Value Fair Level NIS in thousands Long- term loans at fixed interest rate Level 3 - - (369,923 ) (369,923 ) Notes Level 1 (1,024,168 ) (911,051 ) (1,219,929 ) (1,071,436 ) (1,024,168 ) (911,051 ) (1,589,852 ) (1,441,359 ) |
General (Details)
General (Details) ₪ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | Dec. 31, 2015ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014ILS (₪) | |
General [Abstract] | |||||||
Aggregate principal amount | ₪ | ₪ 271,000 | ||||||
Description of principal amount | An amount of approximately NIS 50 million (principal plus future accrued interest) is due to Series H notes until May 30, 2018. The remaining amount of approximately NIS 250 million (principal plus future accrued interest) will become due until November 2019. In addition, until November 2019 the Company has certain operational expenses and other current liabilities for its ongoing operations in the amount of approximately NIS 28 million. | An amount of approximately NIS 50 million (principal plus future accrued interest) is due to Series H notes until May 30, 2018. The remaining amount of approximately NIS 250 million (principal plus future accrued interest) will become due until November 2019. In addition, until November 2019 the Company has certain operational expenses and other current liabilities for its ongoing operations in the amount of approximately NIS 28 million. | |||||
Cash and cash equivalents | ₪ 465,739 | ₪ 89,688 | ₪ 157,851 | $ 134,335 | $ 25,869 | ₪ 323,182 | |
Proceeds from sales of property, plant and equipment, classified as investing activities | $ | $ 28,000 | ||||||
Purchase of property, plant and equipment, classified as investing activities | ₪ 4,095 | $ 1,181 | ₪ 2,872 | ₪ 23,630 | |||
Percentage of voting equity interests acquired | 44.90% | 44.90% | |||||
Description of rights, preferences and restrictions attaching to category of equity interest by entity without share capital | The Company holds approximately 89% of Elbit Medical share capital (88.7% on a fully diluted basis). | The Company holds approximately 89% of Elbit Medical share capital (88.7% on a fully diluted basis). | |||||
Description on relevant resources | (i) cash and cash equivalents (on a standalone basis) of approximately NIS 113 million; (ii) proceeds from payments on account of the sale of the Company’s plot in Bangalore (India) in the amount of approximately NIS 51 million based on the current valuation which is lower than the sale agreement signed on March 2018 as mentioned in note 4 d.; (iii) proceeds from the Company’s plot in Chennai in the amount of NIS 28 million based on the current valuation of the plot (iv) proceeds from sale of the Company’s shares in Elbit Medical | (i) cash and cash equivalents (on a standalone basis) of approximately NIS 113 million; (ii) proceeds from payments on account of the sale of the Company’s plot in Bangalore (India) in the amount of approximately NIS 51 million based on the current valuation which is lower than the sale agreement signed on March 2018 as mentioned in note 4 d.; (iii) proceeds from the Company’s plot in Chennai in the amount of NIS 28 million based on the current valuation of the plot (iv) proceeds from sale of the Company’s shares in Elbit Medical |
Significant Accounting Polici48
Significant Accounting Policies (Details) - ILS (₪) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
USD ($) [member] | ||
Statements [Line Items] | ||
Exchange to foreign rates | ₪ 3.467 | ₪ 3.845 |
EURO (EUR) [member] | ||
Statements [Line Items] | ||
Exchange to foreign rates | 4.153 | 4.044 |
Romanian New Lei (RON) [member] | ||
Statements [Line Items] | ||
Exchange to foreign rates | 0.8912 | 0.8905 |
Indian Rupee (INR) [member] | ||
Statements [Line Items] | ||
Exchange to foreign rates | ₪ 0.0544 | ₪ 0.0565 |
Significant Accounting Polici49
Significant Accounting Policies (Details 1) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
USD ($) [member] | |||
Statements [Line Items] | |||
Change in exchange rate to foreign currencies | (10.00%) | (1.00%) | |
EURO (EUR) [member] | |||
Statements [Line Items] | |||
Change in exchange rate to foreign currencies | 3.00% | (5.00%) | (10.00%) |
Romanian New Lei (RON) [member] | |||
Statements [Line Items] | |||
Change in exchange rate to foreign currencies | (3.00%) | (5.00%) | (11.00%) |
Indian Rupee (INR) [member] | |||
Statements [Line Items] | |||
Change in exchange rate to foreign currencies | (4.00%) | (4.00%) | (5.00%) |
Significant Accounting Polici50
Significant Accounting Policies (Details 2) | 12 Months Ended | |
Dec. 31, 2017 | ||
Hotel [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual depreciation rates | 5.00% | |
Other buildings [Member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual depreciation rates | 2.00% | |
Other buildings [Member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual depreciation rates | 2.50% | |
Building operating systems [Member] | Average [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual depreciation rates | 7.00% | |
Others [Member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual depreciation rates | 6.00% | [1] |
Others [Member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual depreciation rates | 33.00% | [1] |
[1] | Consists mainly: office furniture, machinery and equipment, electronic equipment, computers and peripheral equipment. |
Significant Accounting Polici51
Significant Accounting Policies (Details 3) ₪ in Thousands | 12 Months Ended |
Dec. 31, 2017ILS (₪) | |
Liabilities and shareholders' equity | |
Bonds at amortized cost | ₪ (5,751) |
Total liabilities | (5,751) |
Net impact on equity | (5,751) |
Retained earnings | ₪ (5,751) |
Significant Accounting Polici52
Significant Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Accounting Policies [Abstract] | |||||
Exchange rate translation | ₪ 3,467 | $ 1 | |||
Rate of decrease in CPI | 0.30% | 0.90% | 0.10% | ||
Derivative financial instruments, description | A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the derivative is more than 12 months and as a current asset or a current liability if the remaining maturity of the derivative is less than 12 months. | A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the derivative is more than 12 months and as a current asset or a current liability if the remaining maturity of the derivative is less than 12 months. | |||
Ownership interests, description | Company holds approximately 44.9% of PC share capital; DK holds approx. 26.3% of PC share capital and the rest is widely spread by the public. | Company holds approximately 44.9% of PC share capital; DK holds approx. 26.3% of PC share capital and the rest is widely spread by the public. |
Deposits, Receivables and Oth53
Deposits, Receivables and Other Investments (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Deposits Receivables And Other Investments [Line Items] | |||
Deposits at banks | ₪ 6,463 | ₪ 35,436 | |
Other restricted deposits | [1] | 2,215 | |
Available for sale financial assets | 4,032 | 4,091 | |
Short-term deposits and investments | 10,495 | 39,527 | |
EURO [Member] | |||
Deposits Receivables And Other Investments [Line Items] | |||
Deposits at banks | [2] | 26,795 | |
NIS [Member] | |||
Deposits Receivables And Other Investments [Line Items] | |||
Deposits at banks | [3] | ₪ 6,463 | ₪ 6,426 |
[1] | As of December 31, 2016 Euro 0.5 million (NIS 2 million) is secured tenants deposit in respect of Suwalki and Torun malls that were sold during 2017. | ||
[2] | As of December 31, 2016, EUR 4 million (NIS 16 million) and EUR 2.5 million (NIS 10 million) is restricted mainly in respect of bank facilities agreements signed to finance Projects in Poland and Serbia, respectively. During 2017 the project's companies have been sold. | ||
[3] | As of December 31, 2017 and December 31, 2016 NIS 4.6 million and NIS 4 million respectively is restricted due to the Company's settlement agreement as described in note 13a1. |
Deposits, Receivables and Oth54
Deposits, Receivables and Other Investments (Details 1) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Deposits Receivables And Other Investments [Abstract] | |||
Trade receivables | [1] | ₪ 38,210 | |
Less - Allowance for doubtful debts | (4,042) | ||
Trade receivables, net | ₪ 34,168 | ||
[1] | In December 31, 2016 Includes EUR 5.6 million (NIS 23 million) from sale of plots see also note 4c3. |
Deposits, Receivables and Oth55
Deposits, Receivables and Other Investments (Details 2) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits Receivables And Other Investments [Abstract] | ||
Income taxes | ₪ 1,258 | ₪ 1,298 |
Governmental institutions | 936 | 6,362 |
Advance to suppliers | 525 | |
Prepaid expenses | 1,818 | 3,510 |
Interest to receive | 46 | 514 |
Other | 3,164 | 1,135 |
Other receivables | ₪ 7,222 | ₪ 13,344 |
Deposits, Receivables and Oth56
Deposits, Receivables and Other Investments (Details 3) ₪ in Thousands, $ in Thousands | Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | |
Deposits Receivables And Other Investments [Abstract] | ||||
Deposits at banks | [1] | ₪ 11,453 | ||
Available for sale financial assets | 1,596 | 1,596 | ||
Vendor loan (see note 19) | 33,221 | |||
Prepaid expenses | 7,064 | |||
Other | 57 | 3,371 | ||
Deposits and other long-term balances | ₪ 34,874 | $ 10,058 | ₪ 23,484 | |
[1] | Was deducted in 2017 due to the sale of the Company's subsidiary that holds the Radisson Complex (see note 19). |
Deposits, Receivables and Oth57
Deposits, Receivables and Other Investments (Details Textual) € in Millions, ₪ in Millions | Dec. 31, 2017ILS (₪) | Dec. 31, 2016ILS (₪) | Dec. 31, 2016EUR (€) |
Deposits Receivables And Other Investments [Line Items] | |||
Restricted deposits | ₪ 4.6 | ₪ 4 | |
Secured tenants deposit | 2 | € 0.5 | |
Receivables from sale of plots | 23 | 5.6 | |
Poland [Member] | |||
Deposits Receivables And Other Investments [Line Items] | |||
Restricted deposits | 16 | 4 | |
Serbia [Member] | |||
Deposits Receivables And Other Investments [Line Items] | |||
Restricted deposits | ₪ 10 | € 2.5 |
Trading Property (Details)
Trading Property (Details) ₪ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | ||
Trading Proprerty [Abstract] | ||||
Balance as of January, 1 | ₪ 1,310,549 | ₪ 1,467,760 | ||
Construction costs | [1] | 7,895 | 108,511 | |
Disposal during the year | [2] | (736,484) | (158,786) | |
Write-down to net realizable value (see b below ) | (92,398) | (196,333) | ||
Firstly consolidated entity (see note 4d2) | 154,598 | |||
Foreign currency translation adjustments | 3,057 | (65,201) | ||
Balance as of December, 31 | ₪ 492,619 | $ 142,088 | ₪ 1,310,549 | |
[1] | 2017 and 2016 - mainly due to construction activities in Serbia. | |||
[2] | As for disposition of trading properties in 2017 see c2-c10 below. |
Trading Property (Details 1)
Trading Property (Details 1) ₪ in Thousands, $ in Thousands | Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | Dec. 31, 2015ILS (₪) |
Disclosure of Trading Property [Line Items] | ||||
Total | ₪ 492,619 | $ 142,088 | ₪ 1,310,549 | ₪ 1,467,760 |
Projects designated for development [Member] | ||||
Disclosure of Trading Property [Line Items] | ||||
Total | 226,449 | |||
Other trading properties [Member] | ||||
Disclosure of Trading Property [Line Items] | ||||
Total | ₪ 492,619 | ₪ 1,084,100 |
Trading Property (Details 2)
Trading Property (Details 2) ₪ in Thousands, $ in Thousands | Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | Dec. 31, 2015ILS (₪) |
Disclosure of Trading Property [Line Items] | ||||
Total | ₪ 492,619 | $ 142,088 | ₪ 1,310,549 | ₪ 1,467,760 |
Freehold [Member] | ||||
Disclosure of Trading Property [Line Items] | ||||
Total | 212,075 | 973,217 | ||
Leasehold [Member] | ||||
Disclosure of Trading Property [Line Items] | ||||
Total | ₪ 280,544 | ₪ 337,332 |
Trading Property (Details 3)
Trading Property (Details 3) - ILS (₪) ₪ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | ₪ 92,398 | ₪ 196,333 |
Change in provision in respect to PAB | (1,641) | (6,741) |
Trading property, Net | 90,757 | 189,592 |
Chennai (Kadavantara, India) [Member] | ||
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | 7,879 | 24,564 |
Bangalore (Aayas, India) [Member] | ||
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | 35,178 | |
Helios Plaza (Athens, Greece) [Member] | ||
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | 2,992 | |
Lodz Plaza (Lodz, Poland) [Member] | ||
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | 4,983 | 1,618 |
Krusevac (Krusevac, Serbia) [Member] | ||
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | 1,661 | 809 |
Casa radio (Bucharest, Romania) [Member] | ||
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | 41,946 | 137,117 |
Constanta (Constanta, Romania) [Member] | ||
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | 3,445 | |
Ciuc (Ciuc, Romania) [Member] | ||
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | 3,842 | |
Timisoara (Timisoara, Romania) [Member] | ||
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | 10,514 | |
Lodz residential (Lodz, Poland) [Member] | ||
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | 415 | |
Kielce (Kielce, Poland) [Member] | ||
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | 4,448 | |
BAS (Romania) [Member] | ||
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | 3,235 | |
Arena Plaza extention (Budapest, Hungary) [Member] | ||
Disclosure of Trading Property [Line Items] | ||
Trading property, Gross | ₪ 336 | ₪ 3,749 |
Trading Property (Details 4)
Trading Property (Details 4) ₪ in Millions | 12 Months Ended |
Dec. 31, 2017ILS (₪) | |
Delay in construction commencement date (months) 0 [Member] | |
Disclosure of Trading Property [Line Items] | |
Delay in construction commencement date (months) | ₪ 209.7 |
Delay in construction commencement date (months) 6 [Member] | |
Disclosure of Trading Property [Line Items] | |
Delay in construction commencement date (months) | 204.3 |
Delay in construction commencement date (months) 12 [Member] | |
Disclosure of Trading Property [Line Items] | |
Delay in construction commencement date (months) | 198.9 |
Delay in construction commencement date (months) 18 [Member] | |
Disclosure of Trading Property [Line Items] | |
Delay in construction commencement date (months) | 194 |
Delay in construction commencement date (months) 24 [Member] | |
Disclosure of Trading Property [Line Items] | |
Delay in construction commencement date (months) | 189 |
Construction Cost -10% [Member] | |
Disclosure of Trading Property [Line Items] | |
Construction Cost | 285.6 |
Construction Cost -5% [Member] | |
Disclosure of Trading Property [Line Items] | |
Construction Cost | 248.1 |
Construction Cost 0% [Member] | |
Disclosure of Trading Property [Line Items] | |
Construction Cost | 209.7 |
Construction Cost +5% [Member] | |
Disclosure of Trading Property [Line Items] | |
Construction Cost | 171 |
Construction Cost +10% [Member] | |
Disclosure of Trading Property [Line Items] | |
Construction Cost | 132.4 |
Rental income for all phases -10% [Member] | |
Disclosure of Trading Property [Line Items] | |
Rental income for all phases | 111.3 |
Rental income for all phases -5% [Member] | |
Disclosure of Trading Property [Line Items] | |
Rental income for all phases | 160.5 |
Rental income for all phases 0% [Member] | |
Disclosure of Trading Property [Line Items] | |
Rental income for all phases | 209.7 |
Rental income for all phases +5% [Member] | |
Disclosure of Trading Property [Line Items] | |
Rental income for all phases | 258.6 |
Rental income for all phases +10% [Member] | |
Disclosure of Trading Property [Line Items] | |
Rental income for all phases | 307.6 |
Exit Yield 0 [Member] | |
Disclosure of Trading Property [Line Items] | |
Exit Yield | 209.7 |
Exit Yield +15bps [Member] | |
Disclosure of Trading Property [Line Items] | |
Exit Yield | 193.2 |
Exit Yield +25bps [Member] | |
Disclosure of Trading Property [Line Items] | |
Exit Yield | 182.7 |
Exit Yield +40bps [Member] | |
Disclosure of Trading Property [Line Items] | |
Exit Yield | 167.3 |
Exit Yield +50bps [Member] | |
Disclosure of Trading Property [Line Items] | |
Exit Yield | ₪ 157.6 |
Trading Property (Details 5)
Trading Property (Details 5) | 12 Months Ended | ||
Dec. 31, 2017ILS (₪) | Dec. 31, 2016ILS (₪) | ||
Disclosure of Trading Property [Line Items] | |||
Carrying Amount (MNIS) | ₪ 492,600 | ₪ 1,310,500 | |
Suwalki Plaza [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Poland | ||
Purchase/ transaction date | --06-06 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Ownership | ||
Carrying Amount (MNIS) | 163,500 | ||
Torun Plaza [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Poland | ||
Purchase/ transaction date | --02-07 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Ownership | ||
Carrying Amount (MNIS) | 281,800 | ||
Sport-Star Plaza [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Serbia | ||
Purchase/ transaction date | --12-07 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Ownership | ||
Carrying Amount (MNIS) | 226,200 | ||
Casa Radio [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Romania | ||
Purchase/ transaction date | --02-07 | ||
Rate of ownership by the group (%) | 75 | ||
Nature of rights | Leasing for 37 years | ||
Carrying Amount (MNIS) | [1] | ₪ 262,500 | 296,400 |
Lodz residential [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Poland | ||
Purchase/ transaction date | --09-01 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Ownership/ Perpetual usufruct | ||
Carrying Amount (MNIS) | ₪ 1,700 | 2,000 | |
Timisoara Plaza [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Romania | ||
Purchase/ transaction date | --03-07 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Ownership | ||
Carrying Amount (MNIS) | 28,300 | ||
Lodz - plaza [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Poland | ||
Purchase/ transaction date | --09-09 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Perpetual usufruct | ||
Carrying Amount (MNIS) | ₪ 16,200 | 20,600 | |
Kielce Plaza [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Poland | ||
Purchase/ transaction date | --01-08 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Perpetual usufruct | ||
Carrying Amount (MNIS) | 8,900 | ||
Lesnzo Plaza [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Poland | ||
Purchase/ transaction date | --06-08 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Perpetual usufruct | ||
Carrying Amount (MNIS) | 3,200 | ||
Miercurea Csiki Plaza [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Romania | ||
Purchase/ transaction date | --07-07 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Ownership | ||
Carrying Amount (MNIS) | ₪ 4,200 | 4,000 | |
Constanta Plaza [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Romania | ||
Purchase/ transaction date | --07-09 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Ownership | ||
Carrying Amount (MNIS) | 5,300 | ||
Shumen Plaza [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Bulgaria | ||
Purchase/ transaction date | --11-07 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Ownership | ||
Carrying Amount (MNIS) | 3,200 | ||
Arena Plaza Extension [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Hungary | ||
Purchase/ transaction date | --11-05 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Land use rights | ||
Carrying Amount (MNIS) | 6,100 | ||
Helios Plaza [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | Greece | ||
Purchase/ transaction date | --05-02 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Ownership | ||
Carrying Amount (MNIS) | ₪ 13,700 | 13,300 | |
Bangalore [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | India | ||
Purchase/ transaction date | --03-08 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Ownership | ||
Carrying Amount (MNIS) | ₪ 113,700 | 154,600 | |
Chennai [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Location | India | ||
Purchase/ transaction date | --12-07 | ||
Rate of ownership by the group (%) | 100 | ||
Nature of rights | Ownership | ||
Carrying Amount (MNIS) | ₪ 73,400 | 84,500 | |
Other small plots, grouped [Member] | |||
Disclosure of Trading Property [Line Items] | |||
Rate of ownership by the group (%) | 100 | ||
Carrying Amount (MNIS) | ₪ 7,200 | ₪ 8,600 | |
[1] | Represents gross value including commitment for PAB construction, which is presented as non-current provision in amount of NIS 53 million as of December 31, 2017, (in 2016 NIS 54 million). |
Trading Property (Details 6)
Trading Property (Details 6) | 12 Months Ended |
Dec. 31, 2017 | |
Chennai Project [Member] | Accessibility [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (12.50%) |
Chennai Project [Member] | Discount for shape and contiguity [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (20.00%) |
Chennai Project [Member] | Location and Neighborhood profile [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (5.00%) |
Chennai Project [Member] | Size [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (10.00%) |
Chennai Project [Member] | Negotiation (Trans/Quote) [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (5.00%) |
Chennai Project [Member] | Conversion [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | 5.00% |
Chennai Project [Member] | Topography [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (5.00%) |
Chennai Project [Member] | Additional cost to be incurred at the site due to illegal excavation[Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (5.00%) |
Chennai Project [Member] | Total [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (58.00%) |
Bangalore Project [Member] | Accessibility [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | 10.00% |
Bangalore Project [Member] | Location and Neighborhood profile [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | 5.00% |
Bangalore Project [Member] | Size [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (10.00%) |
Bangalore Project [Member] | Negotiation (Trans/Quote) [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (15.00%) |
Bangalore Project [Member] | FSI permissible [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | 10.00% |
Bangalore Project [Member] | Contiguous Land Parcel [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (15.00%) |
Bangalore Project [Member] | Total Premium/Discount | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (15.00%) |
Bangalore Project [Member] | Discount on account of NGT order and presence of Drain [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (20.00%) |
Bangalore Project [Member] | Presence of minority shareholder [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (20.00%) |
Bangalore Project [Member] | Discount on account of possible change in zoning (open space/parks) [Member] | |
Disclosure of Trading Property [Line Items] | |
Premium discount percentage | (25.00%) |
Trading Property (Details Textu
Trading Property (Details Textual) ₪ in Millions, $ in Millions | Nov. 21, 2017ILS (₪) | Nov. 21, 2017EUR (€) | Oct. 02, 2017ILS (₪) | Oct. 02, 2017EUR (€) | Aug. 07, 2017 | Jun. 19, 2017ILS (₪) | Jun. 19, 2017EUR (€) | Mar. 02, 2017ILS (₪)m² | Mar. 02, 2017EUR (€) | Feb. 01, 2017ILS (₪) | Feb. 01, 2017EUR (€) | Jul. 31, 2017ILS (₪) | Jul. 31, 2017EUR (€) | Feb. 23, 2017ILS (₪)m² | Feb. 23, 2017EUR (€) | Dec. 31, 2006 | Dec. 31, 2017ILS (₪)m² | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Oct. 02, 2017EUR (€) | Mar. 02, 2017EUR (€)m² | Feb. 23, 2017EUR (€)m² | Feb. 01, 2017EUR (€) | Dec. 31, 2016ILS (₪) | Dec. 31, 2016EUR (€) |
Trading Property (Textual) | |||||||||||||||||||||||||||
Cash received from sale of properties | ₪ 23 | € 5,600,000 | |||||||||||||||||||||||||
Non-current provision amount | ₪ | ₪ 53 | ₪ 54 | |||||||||||||||||||||||||
Lodz Plaza Project [Member] | |||||||||||||||||||||||||||
Trading Property (Textual) | |||||||||||||||||||||||||||
Write-down amount | ₪ 5 | € 1,200,000 | |||||||||||||||||||||||||
Discount rate, percenatge | 30.00% | ||||||||||||||||||||||||||
Marketing period ,description | Marketing period is limited to 12-15 months. | Marketing period is limited to 12-15 months. | Marketing period is limited to 12-15 months. | ||||||||||||||||||||||||
Casa Radio Project [Member] | |||||||||||||||||||||||||||
Trading Property (Textual) | |||||||||||||||||||||||||||
Write-down amount | ₪ 40 | € 9,700,000 | |||||||||||||||||||||||||
Casa radio project cost | $ | $ 263 | $ 296 | |||||||||||||||||||||||||
Casa radio description | An agreement according to which it acquired 75% interest in a company ("Project SPV") which is under a PPP agreement with the Government of Romania to develop the Casa radio site in the center of Bucharest ("Project"). After signing the PPP agreement, PC holds indirectly 75% of the shares in the Project SPV, the remaining 25% are held by the Romanian authorities (15%) and a third party private investor (10%). | ||||||||||||||||||||||||||
Area of land | 11 | ||||||||||||||||||||||||||
Asset carrying value | ₪ | ₪ 209.7 | ||||||||||||||||||||||||||
Construction of acquire interest, percentage | 75.00% | 75.00% | 75.00% | ||||||||||||||||||||||||
Provision of building construction | ₪ 53 | € 12,800,000 | € 13,200,000 | ||||||||||||||||||||||||
Change in PAB provision of trading properties | € | € 400,000 | € 1,700 | |||||||||||||||||||||||||
Project SPV, terms | The Project SPV was granted with development and exploitation rights in relation to the site for a period of 49 years, starting December 2006 (37 years remaining at the end of the reporting period). | The Project SPV was granted with development and exploitation rights in relation to the site for a period of 49 years, starting December 2006 (37 years remaining at the end of the reporting period). | The Project SPV was granted with development and exploitation rights in relation to the site for a period of 49 years, starting December 2006 (37 years remaining at the end of the reporting period). | ||||||||||||||||||||||||
Casa Radio Project [Member] | Bottom of range [member] | |||||||||||||||||||||||||||
Trading Property (Textual) | |||||||||||||||||||||||||||
Discount rate, percenatge | 25.00% | ||||||||||||||||||||||||||
Casa Radio Project [Member] | Top of range [member] | |||||||||||||||||||||||||||
Trading Property (Textual) | |||||||||||||||||||||||||||
Discount rate, percenatge | 35.00% | ||||||||||||||||||||||||||
Suwalki Plaza [Member] | |||||||||||||||||||||||||||
Trading Property (Textual) | |||||||||||||||||||||||||||
Cash received from sale of properties | ₪ 69 | € 16,700,000 | |||||||||||||||||||||||||
Gain on disposal property | 3.3 | € 800,000 | |||||||||||||||||||||||||
Revenue from disposal property | ₪ 174.7 | € 43,100,000 | |||||||||||||||||||||||||
Shumen [Member] | |||||||||||||||||||||||||||
Trading Property (Textual) | |||||||||||||||||||||||||||
Area of land | 26,057 | 26,057 | |||||||||||||||||||||||||
Gain on disposal property | ₪ 0.8 | € 200,000 | |||||||||||||||||||||||||
Revenue from disposal property | 3.9 | € 1,000,000 | |||||||||||||||||||||||||
Value of land | ₪ 4 | € 1,000,000 | |||||||||||||||||||||||||
Belgrade Plaza Commercial Center [Member] | |||||||||||||||||||||||||||
Trading Property (Textual) | |||||||||||||||||||||||||||
Area of land | 32,300 | 32,300 | |||||||||||||||||||||||||
Gain on disposal property | ₪ 13 | € 3,200,000 | |||||||||||||||||||||||||
Revenue from disposal property | 246 | € 62,500,000 | |||||||||||||||||||||||||
Initial payment received from purchaser | ₪ 125 | € 31,700,000 | |||||||||||||||||||||||||
Cash received from purchaser, description | Upon completion of the transaction, PC has received an initial payment of EUR 31.7 million (NIS 125 million) from the purchaser, further EUR 2 million (NIS 8 million) has been received following the opening, further payment of EUR 13.35 million (NIS 53 million) has been received during September 2017 and additional payments are contingent upon certain operational targets and milestones being met. The Purchaser has provided a guarantee to secure these future payments. The received consideration is after the deduction of the bank loan (circa EUR 15.4 million) (NIS 60 million). | Upon completion of the transaction, PC has received an initial payment of EUR 31.7 million (NIS 125 million) from the purchaser, further EUR 2 million (NIS 8 million) has been received following the opening, further payment of EUR 13.35 million (NIS 53 million) has been received during September 2017 and additional payments are contingent upon certain operational targets and milestones being met. The Purchaser has provided a guarantee to secure these future payments. The received consideration is after the deduction of the bank loan (circa EUR 15.4 million) (NIS 60 million). | |||||||||||||||||||||||||
Description of calculated general cap rate | The final agreed value of Belgrade Plaza, which will comprise circa 32,300 sqm of GLA, will be calculated based on a general cap rate of 8.25% as well as the sustainable NOI after 12 months of operation, which PC estimates will be approximately EUR 6.2-6.5 million per annum. | The final agreed value of Belgrade Plaza, which will comprise circa 32,300 sqm of GLA, will be calculated based on a general cap rate of 8.25% as well as the sustainable NOI after 12 months of operation, which PC estimates will be approximately EUR 6.2-6.5 million per annum. | |||||||||||||||||||||||||
Kielce Plaza, Poland [Member] | |||||||||||||||||||||||||||
Trading Property (Textual) | |||||||||||||||||||||||||||
Revenue from disposal property | ₪ 9 | € 2,200,000 | |||||||||||||||||||||||||
Cash received from purchaser, description | PC received a down payment of EUR 0.465 million (NIS 1.8 million) when the preliminary sale agreement was signed at 2016 and the remaining EUR 1.815 million (NIS 7.2 million) has been paid to PC during June 2017. | PC received a down payment of EUR 0.465 million (NIS 1.8 million) when the preliminary sale agreement was signed at 2016 and the remaining EUR 1.815 million (NIS 7.2 million) has been paid to PC during June 2017. | |||||||||||||||||||||||||
Description of final sale agreement | PC has signed the final sale agreement for the disposal of its 2.47-hectare plot in the center of Kielce, Poland, for EUR 2.28 million (NIS 9 million). | PC has signed the final sale agreement for the disposal of its 2.47-hectare plot in the center of Kielce, Poland, for EUR 2.28 million (NIS 9 million). | |||||||||||||||||||||||||
Leszno, Poland [Member] | |||||||||||||||||||||||||||
Trading Property (Textual) | |||||||||||||||||||||||||||
Revenue from disposal property | ₪ 3 | € 810,000 | |||||||||||||||||||||||||
Description of final sale agreement | PC has signed the final sale agreement for the disposal of a 1.8-hectare plot in the city of Leszno for EUR 0.81 million (NIS 3 million). | PC has signed the final sale agreement for the disposal of a 1.8-hectare plot in the city of Leszno for EUR 0.81 million (NIS 3 million). | |||||||||||||||||||||||||
Timisoara and Constanta, Romania [Member] | |||||||||||||||||||||||||||
Trading Property (Textual) | |||||||||||||||||||||||||||
Description of final sale agreement | PC has completed the sale of a plot totaling approximately 32,000 sqm in Timisoara, Romania, for Euro 7.25 million (NIS 30.9 million) and a plot totaling approximately 30,000 sqm in Constanta, Romania, for Euro 1.3 million. (NIS 5.5 million) | ||||||||||||||||||||||||||
Budapest, Hungary [Member] | |||||||||||||||||||||||||||
Trading Property (Textual) | |||||||||||||||||||||||||||
Revenue from disposal property | ₪ 10.4 | € 2,500,000 | |||||||||||||||||||||||||
Subsidiary received the net sum amount | ₪ 10.4 | € 2,500,000 | |||||||||||||||||||||||||
Torun Plaza Shopping and Entertainment Center in Poland [Member] | |||||||||||||||||||||||||||
Trading Property (Textual) | |||||||||||||||||||||||||||
Revenue from disposal property | ₪ 296.4 | € 71,600,000 | |||||||||||||||||||||||||
Description of final sale agreement | PC has completed the sale of shares with an investment fund (the “Purchaser”) regarding the sale of SPV holding of the Torun Plaza shopping and entertainment center in Poland. PC has received a net cash of approximately Euro 28.3 million, (NIS 117.1 million). This net cash is after the deduction of the bank loan (circa EUR 43.3 million) (NIS 179.3). The above-mentioned sums do not include the earn out payments in an amount of EUR 0.35 million (NIS 1.4 million), reduced by NAV adjustment of EUR 0.2 million (NIS 0.8 million). | PC has completed the sale of shares with an investment fund (the “Purchaser”) regarding the sale of SPV holding of the Torun Plaza shopping and entertainment center in Poland. PC has received a net cash of approximately Euro 28.3 million, (NIS 117.1 million). This net cash is after the deduction of the bank loan (circa EUR 43.3 million) (NIS 179.3). The above-mentioned sums do not include the earn out payments in an amount of EUR 0.35 million (NIS 1.4 million), reduced by NAV adjustment of EUR 0.2 million (NIS 0.8 million). | |||||||||||||||||||||||||
Loss from disposal sale | ₪ 6.4 | € 1,500,000 | |||||||||||||||||||||||||
Belgrade Serbia [Member] | |||||||||||||||||||||||||||
Trading Property (Textual) | |||||||||||||||||||||||||||
Description of final sale agreement | Following the sale of "MUP" plot in Belgrade, Serbia, PC was entitled to an additional contingent consideration of EUR 0.6 million (NIS 2.5 million) once the purchaser successfully develops at least 69,000 sqm above ground. The consideration was received in September 2017 and is recorded as revenue from disposal of trading properties. | Following the sale of "MUP" plot in Belgrade, Serbia, PC was entitled to an additional contingent consideration of EUR 0.6 million (NIS 2.5 million) once the purchaser successfully develops at least 69,000 sqm above ground. The consideration was received in September 2017 and is recorded as revenue from disposal of trading properties. | Following the sale of "MUP" plot in Belgrade, Serbia, PC was entitled to an additional contingent consideration of EUR 0.6 million (NIS 2.5 million) once the purchaser successfully develops at least 69,000 sqm above ground. The consideration was received in September 2017 and is recorded as revenue from disposal of trading properties. |
Trading Property (Details Tex66
Trading Property (Details Textual 1) ₪ in Thousands, $ in Thousands, ₨ in Millions | Dec. 02, 2015Acresofland | Sep. 16, 2015 | Jun. 30, 2017 | Mar. 31, 2008 | Dec. 31, 2007Acresofland | Dec. 31, 2017ILS (₪) | Dec. 31, 2017INR (₨) | Dec. 31, 2016ILS (₪) | Dec. 31, 2016INR (₨) | Dec. 31, 2017USD ($) | Dec. 31, 2016INR (₨) |
Trading Property (Textual) | |||||||||||
Percentage of partner holds plot | 10.00% | 10.00% | |||||||||
Other non-current liabilities | ₪ 75,970 | ₪ 57,155 | $ 21,913 | ||||||||
Casa Radio Project [Member] | |||||||||||
Trading Property (Textual) | |||||||||||
Significant unobservable inputs,description | ● Estimated weighted average monthly rental prices per sqm is EUR 26 for the mall, EUR 16 for offices and 14.2 for Hotel/Conference Center (2016: EUR 26.3 for the mall, EUR 15.8 for offices, EUR 14.2 for Hotel/Conference Center); ● The Estimated Exit Yield is 8.75% for the mall, 9.25 % for the office component and 10.25% for Hotel/Conference center including additional 1.5% yield to cover for several risks related to the complexity and large scale of the project (2016 - the same) ● The construction hard costs of the project are 760 EUR/sqm for the mall; 1,098 EUR/sqm for Hotel; 751 EUR/sqm for the offices; 370 EUR/sqm for parking (2016: 780 EUR/sqm for the mall; 740 EUR/sqm for the offices; 1,010 EUR/sqm for Hotel, 370 EUR/sqm for parking); ● The development finance rate is 5.25% (2016:5.5%); ● The scheme would compose the following components: (i) retail; (ii) offices; (iii) hotel & conference center; ● Developers profit -15% (2016: 15%); ● Discount to Market Value - 35% (2016: 25%); ● Start of construction in 3.5 years (2016: 3 years). | ● Estimated weighted average monthly rental prices per sqm is EUR 26 for the mall, EUR 16 for offices and 14.2 for Hotel/Conference Center (2016: EUR 26.3 for the mall, EUR 15.8 for offices, EUR 14.2 for Hotel/Conference Center); ● The Estimated Exit Yield is 8.75% for the mall, 9.25 % for the office component and 10.25% for Hotel/Conference center including additional 1.5% yield to cover for several risks related to the complexity and large scale of the project (2016 - the same) ● The construction hard costs of the project are 760 EUR/sqm for the mall; 1,098 EUR/sqm for Hotel; 751 EUR/sqm for the offices; 370 EUR/sqm for parking (2016: 780 EUR/sqm for the mall; 740 EUR/sqm for the offices; 1,010 EUR/sqm for Hotel, 370 EUR/sqm for parking); ● The development finance rate is 5.25% (2016:5.5%); ● The scheme would compose the following components: (i) retail; (ii) offices; (iii) hotel & conference center; ● Developers profit -15% (2016: 15%); ● Discount to Market Value - 35% (2016: 25%); ● Start of construction in 3.5 years (2016: 3 years). | |||||||||
Joint Development Agreement [Member] | |||||||||||
Trading Property (Textual) | |||||||||||
Developer paid total refundable deposit | ₪ 5,500 | ₨ 100 | |||||||||
Chennai Project SPV [Member] | |||||||||||
Trading Property (Textual) | |||||||||||
Percentage of revenues from the plotted development | 73.00% | 73.00% | |||||||||
Percentage of revenues from sale of fully constructed residential units | 40.00% | 40.00% | |||||||||
Provision from property development | ₨ 300 | ||||||||||
Advanced payment received | ₨ 100 | ||||||||||
Chennai Project SPV [Member] | Joint Development Agreement [Member] | |||||||||||
Trading Property (Textual) | |||||||||||
Percentage of property allocated for sale | 67.00% | 67.00% | |||||||||
Elbit-Plaza India Real Estate Holding Limited [Member] | |||||||||||
Trading Property (Textual) | |||||||||||
Trading property | ₪ | ₪ 187,100 | ||||||||||
Description of backstop commitment | EPI has obtained a backstop commitment from the Local Partner for the purchase of its 80% shareholding in the Chennai SPV by January 15, 2016, for a net consideration of approximately INR 161.7 Crores (NIS 87 million). Since the Local Partner had breached its commitment, EPI exercised its rights and forfeited the Local Partner's 20% holdings in the Chennai Project SPV. Accordingly, as of the balance sheet date EPI has 100% of the equity and voting rights in the Chennai Project SPV. | ||||||||||
Elbit-Plaza India Real Estate Holding Limited [Member] | Share Subscription and Framework Agreement [Member] | |||||||||||
Trading Property (Textual) | |||||||||||
Trading property, description | EPI entered into a share subscription and framework agreement (the "Agreement"), with a third party local developer (the "Partner"), and a wholly owned Indian subsidiary of EPI which was designated for this purpose ("SPV"), to acquire together with the Partner, through the SPV, up to 440 acres of land in Bangalore, India (the "Project") in certain phases as set forth in the Agreement. As of December 31, 2017, the Partner has surrendered sale deeds to the SPV for approximately 54 acres (the "Plot"). In addition, under the Agreement the Partner has also been granted with 10% undivided interest in the Plot and have also signed a Joint Development Agreement with the SPV in respect of the Plot. | ||||||||||
Elbit-Plaza India Real Estate Holding Limited [Member] | 2015 Agreement [Member] | |||||||||||
Trading Property (Textual) | |||||||||||
Number of acres land acquired | Acresofland | 8.3 | ||||||||||
Trading property, description | EPI has signed an agreement to sell 100% of its interest in the SPV to the Partner (the "Sale Agreement"). The total consideration upon completion of the transaction was INR 3,210 million (approximately EUR 42 million) which should have been paid no later than September 30, 2016 ("Long Stop Date"). On November 15, 2016, the Partner informed EPI that it will not be able to execute the advance payments. | ||||||||||
Percentage of undivided interest | 10.00% | ||||||||||
Description of failure of partner to complete transaction | As a result of the failure of the Partner to complete the transaction under the Sale Agreement and in accordance with the provisions thereto, EPI has 100% control over the SPV and the partner is no longer entitled to receive the 50% shareholding. | ||||||||||
Elbit-Plaza India Real Estate Holding Limited [Member] | 2017 Agreement [Member] | |||||||||||
Trading Property (Textual) | |||||||||||
Trading property, description | The Purchaser and EPI have agreed that the purchase price will be amended to INR 338 Crores (approximately Euro 44.2 million) instead of the INR 321 Crores (approximately Euro 42 million) agreed in the previous agreement. As part of the agreement, INR 110 Crores (approximately Euro 14.4 million) will be paid by the Purchaser in instalments until the Final Closing. The Final Closing will take place on September 1, 2018, when the final instalment of INR 228 Crores (approximately Euro 29.8 million) will be paid to EPI. | ||||||||||
Elbit-Plaza India Real Estate Holding Limited [Member] | 2018 Agreement [Member] | |||||||||||
Trading Property (Textual) | |||||||||||
Advanced payment received | ₪ 30,000 | ₨ 550 | |||||||||
Trading property, description | In March 2018, the Company signed an amended revised agreement as follows: The Purchaser and EPI have agreed that the total purchase price shall be increased to INR 350 Crores (approximately NIS 190 million). Following the signing of the revised agreement the Purchaser paid EPI additional INR 10 Crores (approximately NIS 5 million) further to the INR 45 Crores (approximately NIS 25 million) that were already paid during the recent year. Additional INR 83 Crores (approximately NIS 45 million) will be paid by the Purchaser in unequal monthly installments until the Final Closing. The Final Closing will take place on 31 August 2019 when the final installment of INR 212 Crores (approximately NIS 115 million) will be paid to EPI against the transfer of the outstanding share capital of the SPV. | In March 2018, the Company signed an amended revised agreement as follows: The Purchaser and EPI have agreed that the total purchase price shall be increased to INR 350 Crores (approximately NIS 190 million). Following the signing of the revised agreement the Purchaser paid EPI additional INR 10 Crores (approximately NIS 5 million) further to the INR 45 Crores (approximately NIS 25 million) that were already paid during the recent year. Additional INR 83 Crores (approximately NIS 45 million) will be paid by the Purchaser in unequal monthly installments until the Final Closing. The Final Closing will take place on 31 August 2019 when the final installment of INR 212 Crores (approximately NIS 115 million) will be paid to EPI against the transfer of the outstanding share capital of the SPV. | |||||||||
Other non-current liabilities | ₪ | ₪ 21,800 | ||||||||||
Elbit-Plaza India Real Estate Holding Limited [Member] | Chennai Project SPV [Member] | |||||||||||
Trading Property (Textual) | |||||||||||
Number of acres land acquired | Acresofland | 74.73 |
Investments in Associates (Deta
Investments in Associates (Details) ₪ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | Dec. 31, 2015ILS (₪) | |||
Disclosure of associates [line items] | ||||||
The Group's share of loss from continuing operations | ₪ (248,778) | $ (71,756) | ₪ (319,981) | [1] | ₪ (371,153) | [1] |
The Group's share of total comprehensive income | (191,667) | $ (55,287) | (253,921) | ₪ (353,032) | ||
Associates [Member] | ||||||
Disclosure of associates [line items] | ||||||
The Group's share of loss from continuing operations | (20,202) | (57,630) | ||||
The Group's share of total comprehensive income | (20,202) | (57,630) | ||||
Aggregate carrying amount of the Group's interests in these associates | ₪ 21,215 | |||||
[1] | Reclassified (discontinued operations). Refer to Note 19. |
Investments in Associates (De68
Investments in Associates (Details Textual) ₪ in Thousands | Dec. 14, 2017USD ($) | Jul. 09, 2017USD ($) | Dec. 28, 2017USD ($) | Nov. 16, 2016USD ($) | Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | Aug. 15, 2016 | Dec. 31, 2015ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Disclosure of associates [line items] | ||||||||||||
Percentage of voting and equity rights | 44.90% | 44.90% | ||||||||||
Other investors will invest a total amount | $ 5,437,000 | $ 26,949,000 | $ 292,183,000 | |||||||||
Accumulated deficit | ₪ (430,366) | ₪ (406,698) | $ (124,131,000) | |||||||||
Negative cash flows from operating activities | ₪ 433,812 | $ 125,126,000 | ₪ 77,030 | ₪ 191,353 | ||||||||
Koch Disruptive Technologies [Member] | ||||||||||||
Disclosure of associates [line items] | ||||||||||||
Initial closing of the transaction raised and invested | $ 75,000,000 | |||||||||||
Elbit Medical Technologies Ltd [Member] | ||||||||||||
Disclosure of associates [line items] | ||||||||||||
Percentage of voting and equity rights | 42.70% | 42.70% | ||||||||||
InSightec [Member] | ||||||||||||
Disclosure of associates [line items] | ||||||||||||
Percentage of voting and equity rights | 22.50% | 22.50% | ||||||||||
Percentage of voting and equity rights diluted basis | 18.60% | 18.60% | ||||||||||
Investment loss of shares granted, percentage | 41.50% | 41.50% | ||||||||||
Transaction reflects a pre money valuation amount | $ 460,000,000 | |||||||||||
Initial closing of the transaction raised and invested | 90,000,000 | |||||||||||
Series E investment round in total amount | $ 60,000,000 | |||||||||||
Reimbursement code with a payment level amount | $ 9,751,000 | |||||||||||
Amount paid for medicare beneficiaries | $ 17,500,500 | |||||||||||
Agreement terms, description | The term of the Agreement is five (5) years from the first commercial sale of the combined system and shall automatically renew for additional 1-year periods, unless either Party has provided a notice for its non-renewal or of its termination, it in accordance with the terms of the Agreement. | |||||||||||
InSightec [Member] | Preferred E Share [Member] | ||||||||||||
Disclosure of associates [line items] | ||||||||||||
Issuance of a new series of preferred stock | $ 150,000,000 | |||||||||||
Percentage of issued and outstanding share capital | 29.10% | |||||||||||
Percentage of fully-diluted basis | 24.70% | |||||||||||
InSightec [Member] | Koch Disruptive Technologies [Member] | ||||||||||||
Disclosure of associates [line items] | ||||||||||||
Total investment | $ 100,000,000 | |||||||||||
Description of transaction document rights | Insightec's board of directors shall consist of a maximum of nine (9) board members. Each of the four major shareholders in Insightec (including Elbit Medical) will be entitled to appoint one director for as long as each of them holds at least 5% of the outstanding share capital of Insightec. The directors appointed by three of the major shareholders (including the one appointed by Elbit Medical) may together appoint up to four (4) additional directors. | |||||||||||
InSightec [Member] | York [Member] | ||||||||||||
Disclosure of associates [line items] | ||||||||||||
Total investment | $ 6,000,000 | |||||||||||
Percentage of issued and outstanding share capital | 22.60% | |||||||||||
Percentage of fully-diluted basis | 19.10% | |||||||||||
InSightec [Member] | Elbit Medical Technologies Ltd [Member] | ||||||||||||
Disclosure of associates [line items] | ||||||||||||
Percentage of issued and outstanding share capital | 19.80% | |||||||||||
Percentage of fully-diluted basis | 16.70% | |||||||||||
Gamida Cell Ltd [Member] | ||||||||||||
Disclosure of associates [line items] | ||||||||||||
Accumulated deficit | $ 116,282,000 | |||||||||||
Negative cash flows from operating activities | $ 17,760,000 | |||||||||||
Private financing investment amount | $ 40,000,000 | |||||||||||
Investors pre-money valuation amount | $ 120,000,000 | |||||||||||
Percentage of investors received options to preferred shares | 60.00% | |||||||||||
Percentage of option exercise price | 120.00% | |||||||||||
Investment options will expires period | 5 years | |||||||||||
Gamida Cell Ltd [Member] | Elbit Medical Technologies Ltd [Member] | ||||||||||||
Disclosure of associates [line items] | ||||||||||||
Percentage of issued and outstanding share capital | 16.00% | 16.00% | ||||||||||
Percentage of fully-diluted basis | 12.00% | 12.00% |
Investments in Joint Ventures69
Investments in Joint Ventures (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investments in Joint Ventures [Abstract] | ||
The Group's share of profit (loss) from continuing operations | ₪ 3,317 | |
The Group's share of total comprehensive income (loss) | 3,317 | |
Aggregate carrying amount of the Group's interests in these joint ventures | ₪ 5,592 | ₪ 5,750 |
Investments in Joint Ventures70
Investments in Joint Ventures (Details Textual) ₪ in Millions, $ in Millions | Jan. 14, 2016ILS (₪) | Jan. 14, 2016USD ($) | Jan. 05, 2015ILS (₪) | Dec. 31, 2017ILS (₪)Acres | Dec. 31, 2017USD ($)Acres |
Disclosure of joint ventures [line items] | |||||
Subsection agreement percentage | 44.90% | 44.90% | |||
Total consideration | ₪ 37.7 | ||||
Acquisition amount | ₪ 20 | ||||
Project SPV [Member] | |||||
Disclosure of joint ventures [line items] | |||||
Subsection agreement percentage | 50.00% | 50.00% | |||
Total consideration | ₪ 5 | $ 100 | ₪ 40 | $ 720 | |
Property A [Member] | |||||
Disclosure of joint ventures [line items] | |||||
Total consideration | ₪ 84 | $ 1,495 | |||
Purchase of land acquired | Acres | 13 | 13 |
Additional Information as to 71
Additional Information as to Investments in Material Subsidiaries and Changes Thereof (Details) € in Thousands, ₪ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016ILS (₪) | [1] | Dec. 31, 2015ILS (₪) | [1] | ||
Liquidity Requirements [Abstract] | ||||||||
General & administrative | ₪ 14,930 | $ 4,306 | ₪ 10,257 | ₪ 16,678 | ||||
Total Payment Due by period (in TEUR) [member] | Within 1 year | ||||||||
Liquidity Requirements [Abstract] | ||||||||
Debentures including current portion and interest | € | [2] | € 23,700 | ||||||
General & administrative | € | 3,100 | |||||||
Total liquidity requirements | € | 26,800 | |||||||
Total Sources | € | [3] | 16,300 | ||||||
Total deficit | € | (10,500) | |||||||
Total Payment Due by period (in TEUR) [member] | Within 1-1.25 years | ||||||||
Liquidity Requirements [Abstract] | ||||||||
Debentures including current portion and interest | € | 36,700 | |||||||
General & administrative | € | 600 | |||||||
Total liquidity requirements | € | 37,300 | |||||||
Total Sources | € | [3] | 4,400 | ||||||
Total deficit | € | € (32,900) | |||||||
Total Payment Due by period (in TNIS) [member] | Within 1 year | ||||||||
Liquidity Requirements [Abstract] | ||||||||
Debentures including current portion and interest | ₪ | [2] | 98,426 | ||||||
General & administrative | ₪ | 12,874 | |||||||
Total liquidity requirements | ₪ | 111,300 | |||||||
Total Sources | ₪ | [3] | 67,694 | ||||||
Total deficit | ₪ | (43,606) | |||||||
Total Payment Due by period (in TNIS) [member] | Within 1-1.25 years | ||||||||
Liquidity Requirements [Abstract] | ||||||||
Debentures including current portion and interest | ₪ | 152,415 | |||||||
General & administrative | ₪ | 2,492 | |||||||
Total liquidity requirements | ₪ | 154,907 | |||||||
Total Sources | ₪ | [3] | 18,273 | ||||||
Total deficit | ₪ | ₪ 136,634 | |||||||
[1] | Reclassified (discontinued operations). Refer to Note 19. | |||||||
[2] | An amount of circa EUR 37.45 million (NIS 155.5 million) was repaid (excluding interest) following the balance sheet date | |||||||
[3] | The Company expects to increase the amount of its liquid balances during the 15 months starting April 1, 2018, by sale of plots of lands (including India) and others. |
Additional Information as to 72
Additional Information as to Investments in Material Subsidiaries and Changes Thereof (Details 1) ₪ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | Dec. 31, 2015ILS (₪) | [1] | Dec. 31, 2017USD ($) | ||
Disclosure of subsidiaries [line items] | |||||||
Loss allocated to non-controlling interests | ₪ (63,647) | $ (18,358) | ₪ (117,238) | [1] | ₪ (128,772) | ||
Accumulated non-controlling interests | ₪ 45,651 | ₪ 137,103 | $ 13,167 | ||||
PC's non-controlling interest [Member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Place of incorporation | Netherland | Netherland | |||||
Proportion of ownership interests and voting rights held by non-controlling interests | 55.00% | 55.00% | 55.00% | ||||
Loss allocated to non-controlling interests | ₪ (51,986) | ₪ (109,934) | |||||
Accumulated non-controlling interests | ₪ 60,617 | ₪ 121,615 | |||||
[1] | Reclassified (discontinued operations). Refer to Note 19. |
Additional Information as to 73
Additional Information as to Investments in Material Subsidiaries and Changes Thereof (Details 2) ₪ in Thousands, $ in Thousands | Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) |
Disclosure of subsidiaries [line items] | |||
Current assets | ₪ 483,456 | $ 139,445 | ₪ 178,592 |
Non-current assets | 533,915 | 153,998 | 2,082,617 |
Current liabilities | 846,874 | 244,266 | 1,209,627 |
Non-current liabilities | 319,281 | 92,092 | 1,002,967 |
Equity attributable to owners of the Company | (194,435) | (56,082) | (88,489) |
Non-controlling interests | 45,651 | $ 13,167 | 137,103 |
Plaza Center N.V. ("PC") [Member] | |||
Disclosure of subsidiaries [line items] | |||
Current assets | 189,546 | 94,721 | |
Non-current assets | 394,622 | 1,207,882 | |
Current liabilities | (496,081) | (1,098,525) | |
Non-current liabilities | (53,353) | (55,990) | |
Equity attributable to owners of the Company | 25,884 | (26,473) | |
Non-controlling interests | ₪ (60,617) | ₪ (121,615) |
Additional Information as to 74
Additional Information as to Investments in Material Subsidiaries and Changes Thereof (Details 3) ₪ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | Dec. 31, 2015ILS (₪) | |||
Disclosure of subsidiaries [line items] | ||||||
Revenue | ₪ 782,829 | $ 225,794 | ₪ 126,019 | [1] | ₪ 200,078 | [1] |
Expenses | 1,052,360 | 303,536 | 509,397 | [1] | 657,390 | [1] |
Loss for the year from continuing operations | (248,778) | (71,756) | (319,981) | [1] | (371,153) | [1] |
Loss for the year | (401,681) | (115,858) | (312,068) | [1] | (314,922) | [1] |
Loss attributable to owners of the Company | (338,034) | (97,500) | (194,830) | [1] | (186,150) | [1] |
Loss attributable to the non-controlling interests | (63,647) | (18,358) | (117,238) | [1] | (128,772) | [1] |
Other comprehensive income for the year | 210,014 | 60,571 | 58,147 | (38,110) | ||
Total comprehensive (loss) attributable to owners of the Company | (127,918) | (36,896) | (128,114) | (206,504) | ||
Total comprehensive (loss) attributable to the non-controlling interests | (63,749) | (18,387) | (125,807) | (146,528) | ||
Total comprehensive (loss) for the year | (191,667) | (55,287) | (253,921) | (353,032) | ||
Net cash inflow (outflow) from operating activities | 433,812 | 125,126 | 77,030 | 191,353 | ||
Net cash inflow (outflow) from investing activities | 459,206 | 132,451 | 89,886 | 235,796 | ||
Net cash (outflow) from financing activities | (519,743) | $ (149,911) | (233,259) | (579,557) | ||
Plaza Center N.V. ("PC") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Revenue | 814,826 | 192,435 | 283,926 | |||
Expenses | (923,646) | (394,085) | (500,262) | |||
Loss for the year from continuing operations | (108,820) | (201,650) | (216,336) | |||
Loss for the year | (108,820) | (201,650) | (216,336) | |||
Loss attributable to owners of the Company | (48,833) | (91,080) | (97,122) | |||
Loss attributable to the non-controlling interests | (59,987) | (110,570) | (119,214) | |||
Loss for the year | (108,820) | (201,650) | (216,336) | |||
Other comprehensive income attributable to owners of the Company | (3,095) | 519 | 5,452 | |||
Other comprehensive income attributable to the non-controlling interests | (3,798) | 636 | 6,690 | |||
Other comprehensive income for the year | (6,893) | 1,155 | 12,142 | |||
Total comprehensive (loss) attributable to owners of the Company | (51,928) | (90,561) | (91,670) | |||
Total comprehensive (loss) attributable to the non-controlling interests | (63,785) | (109,934) | (112,524) | |||
Total comprehensive (loss) for the year | (115,771) | (200,495) | (204,194) | |||
Net cash inflow (outflow) from operating activities | (1,637) | (260,148) | (10,481) | |||
Net cash inflow (outflow) from investing activities | 400,812 | 165,014 | 92,273 | |||
Net cash (outflow) from financing activities | (239,979) | (144,980) | (159,363) | |||
Net cash inflow (outflow) | ₪ 159,196 | ₪ (240,114) | ₪ (77,571) | |||
[1] | Reclassified (discontinued operations). Refer to Note 19. |
Additional Information as to 75
Additional Information as to Investments in Material Subsidiaries and Changes Thereof (Details Textual) € in Thousands, ₪ in Thousands | 12 Months Ended | |
Dec. 31, 2017ILS (₪) | Dec. 31, 2017EUR (€) | |
Disclosure of subsidiaries [line items] | ||
Percentage of holding diluted | 88.70% | 88.70% |
Percentage of voting and equity rights | 44.90% | 44.90% |
Percentage of dividend distributions | 150.00% | |
Percentage of unsecured debt | 75.00% | |
Elbit Medical Technologies Ltd [Member] | ||
Disclosure of subsidiaries [line items] | ||
Percentage of holding diluted | 89.00% | 89.00% |
Description of holding percentage | InSightec (approximately 19% holding on a fully diluted basis) and Gamida (approximately 13% holding on a fully diluted basis). | |
Percentage of voting and equity rights | 42.70% | 42.70% |
EPI [Member] | ||
Disclosure of subsidiaries [line items] | ||
Description of distributions or payment | The Company and PC each holds 47.5% of the shares of of Elbit Plaza India Real Estate Holdings Limited ("EPI") which holds plots in Bangalore and Chennai, India (see note 4d). The remaining 5% equity rights are held by the Company's former Executive Vice Chairman (VC) of the Board. The VC Shares shall not be entitled to receive any distributions or payment from the EPI until the Group's investments (principal and interest calculated in accordance with a mechanism provided for in the agreement) in EPI have been fully repaid. The Company and PC each have the right to appoint 50% of the board members of EPI. | |
Plaza Center N.V. ("PC") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Percentage of holding diluted | 42.70% | 42.70% |
Outstanding obligations to bondholders | ₪ 512,000 | € 123,200 |
Percentage of voting and equity rights | 44.90% | 44.90% |
Percentage of dividend distributions | 75.00% | |
Additional capital injection | ₪ 85 | |
Percentage of additional capital injection | 50.00% | |
Percentage of unsecured debt | 75.00% | |
Amount of circa repaid | ₪ 155,500 | € 37,450 |
Property, Plant and Equipment76
Property, Plant and Equipment (Details) ₪ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2016ILS (₪) | Dec. 31, 2017USD ($) | ||||
Cost [Abstract] | ||||||
Balance as of January, 1 | ₪ 758,658 | ₪ 751,343 | ||||
Adjustment of Depreciation and amortization | (28,880) | (37,017) | ||||
Additions during the year | 3,156 | 2,541 | ||||
Revaluation of hotels during the year | 11,637 | 106,842 | ||||
Disposals during the year | (715,045) | [1] | (24,412) | |||
Foreign currency translation adjustments | (1,213) | (40,639) | ||||
Balance as of December, 31 | 28,314 | 758,658 | ||||
Accumulated Depreciation Abstract [Abstract] | ||||||
Balance as of January 1, | 32,533 | 38,987 | ||||
Adjustment of Depreciation and amortization balance as of December 31, 2017 | (28,880) | (37,032) | ||||
Additions during the year | 29,003 | 37,339 | ||||
Disposals during the year | (10,042) | (5,513) | ||||
Foreign currency translation adjustments | 380 | (1,247) | ||||
Balance as of December, 31 | 22,994 | 32,533 | ||||
Provision For Impairment [Abstract] | ||||||
Balance as of January, 1 | 4,490 | 8,190 | ||||
Balance as of December, 31 | 4,490 | 4,490 | ||||
Net book value | 830 | 721,635 | $ 239 | |||
Hotels At Revaluation Model [Member] | Operating [Member] | ||||||
Cost [Abstract] | ||||||
Balance as of January, 1 | 711,906 | 678,516 | [2] | |||
Adjustment of Depreciation and amortization | (28,880) | (37,017) | [2] | |||
Additions during the year | 3,156 | 2,473 | [2] | |||
Revaluation of hotels during the year | 11,637 | 106,842 | [2] | |||
Disposals during the year | (696,072) | [1] | [2] | |||
Foreign currency translation adjustments | (1,748) | (38,908) | [2] | |||
Balance as of December, 31 | 711,906 | |||||
Accumulated Depreciation Abstract [Abstract] | ||||||
Balance as of January 1, | [2] | |||||
Adjustment of Depreciation and amortization balance as of December 31, 2017 | (28,880) | (37,032) | [2] | |||
Additions during the year | 28,880 | 37,032 | [2] | |||
Disposals during the year | [2] | |||||
Foreign currency translation adjustments | [2] | |||||
Balance as of December, 31 | ||||||
Provision For Impairment [Abstract] | ||||||
Balance as of January, 1 | [2] | |||||
Balance as of December, 31 | ||||||
Net book value | 711,906 | [2] | ||||
Hotels At Revaluation Model [Member] | Plot designated for hotel [Member] | ||||||
Cost [Abstract] | ||||||
Balance as of January, 1 | [2] | 18,700 | ||||
Adjustment of Depreciation and amortization | [2] | |||||
Additions during the year | [2] | |||||
Revaluation of hotels during the year | [2] | |||||
Disposals during the year | [2] | (18,700) | ||||
Foreign currency translation adjustments | [2] | |||||
Balance as of December, 31 | [2] | |||||
Accumulated Depreciation Abstract [Abstract] | ||||||
Balance as of January 1, | [2] | |||||
Adjustment of Depreciation and amortization balance as of December 31, 2017 | [2] | |||||
Additions during the year | [2] | |||||
Disposals during the year | [2] | |||||
Foreign currency translation adjustments | [2] | |||||
Balance as of December, 31 | [2] | |||||
Provision For Impairment [Abstract] | ||||||
Balance as of January, 1 | [2] | 3,700 | ||||
Balance as of December, 31 | [2] | |||||
Net book value | [2] | |||||
At Cost Model [Member] | Land and buildings [Member] | ||||||
Cost [Abstract] | ||||||
Balance as of January, 1 | 15,236 | 16,049 | ||||
Adjustment of Depreciation and amortization | ||||||
Additions during the year | ||||||
Revaluation of hotels during the year | ||||||
Disposals during the year | (15,288) | [1] | ||||
Foreign currency translation adjustments | 72 | (813) | ||||
Balance as of December, 31 | 20 | 15,236 | ||||
Accumulated Depreciation Abstract [Abstract] | ||||||
Balance as of January 1, | 7,482 | 7,858 | ||||
Adjustment of Depreciation and amortization balance as of December 31, 2017 | ||||||
Additions during the year | 52 | |||||
Disposals during the year | (7,514) | |||||
Foreign currency translation adjustments | (376) | |||||
Balance as of December, 31 | 20 | 7,482 | ||||
Provision For Impairment [Abstract] | ||||||
Balance as of January, 1 | ||||||
Balance as of December, 31 | ||||||
Net book value | 7,754 | |||||
At Cost Model [Member] | Other fixed assets [Member] | ||||||
Cost [Abstract] | ||||||
Balance as of January, 1 | 31,516 | 38,078 | ||||
Adjustment of Depreciation and amortization | ||||||
Additions during the year | 68 | |||||
Revaluation of hotels during the year | ||||||
Disposals during the year | (3,685) | [1] | (5,712) | |||
Foreign currency translation adjustments | 463 | (918) | ||||
Balance as of December, 31 | 28,294 | 31,516 | ||||
Accumulated Depreciation Abstract [Abstract] | ||||||
Balance as of January 1, | 25,051 | 31,129 | ||||
Adjustment of Depreciation and amortization balance as of December 31, 2017 | ||||||
Additions during the year | 71 | 307 | ||||
Disposals during the year | (2,528) | (5,513) | ||||
Foreign currency translation adjustments | 380 | (872) | ||||
Balance as of December, 31 | 22,974 | 25,051 | ||||
Provision For Impairment [Abstract] | ||||||
Balance as of January, 1 | 4,490 | 4,490 | ||||
Balance as of December, 31 | 4,490 | 4,490 | ||||
Net book value | ₪ 830 | ₪ 1,975 | ||||
[1] | See also Note 19. | |||||
[2] | Had the Group continued to present the hotel based on the cost model, their net book value as of December 31, 2016, would have been NIS 284 million. |
Property, Plant and Equipment77
Property, Plant and Equipment (Details 1) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | ₪ 711,906 | |
Freehold Rights [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 711,906 | |
Leasehold Rights [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value |
Property, Plant and Equipment78
Property, Plant and Equipment (Details Textual) - ILS (₪) ₪ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Additional amount | ₪ 3,156 | ₪ 2,541 |
Israel Land Administration (ILA) [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Aggregated amount | 13,000 | |
Additional amount | 27,000 | |
Gains on property, plant and equipment | ₪ 3,000 | ₪ 8,000 |
Current Maturities of Long Te79
Current Maturities of Long Term Borrowing and Short-Term Credits (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Current Maturities of Long Term Borrowing and Short-Term Credits [Abstract] | |||
Current maturities and short term credits | [1],[2] | ₪ 780,861 | ₪ 1,128,768 |
[1] | During December 2017, the Company repaid the entire loan to Bank Hapoalim in amount of approximately NIS 59 million. | ||
[2] | The Balance as of December 31, 2017, is comprised mainly: |
Current Maturities of Long Te80
Current Maturities of Long Term Borrowing and Short-Term Credits (Details Textual) ₪ in Thousands | 12 Months Ended |
Dec. 31, 2017ILS (₪) | |
Disclosure of transactions between related parties [line items] | |
Short-term credits due date | May 31, 2018 |
Short-term credits | ₪ 295 |
PC subsidiaries [Member] | |
Disclosure of transactions between related parties [line items] | |
Short-term credits | 333,000 |
Pc's Notes [Member] | |
Disclosure of transactions between related parties [line items] | |
Short-term credits | 486,000 |
Bank Hapoalim [Member] | |
Disclosure of transactions between related parties [line items] | |
Short-term credits | ₪ 59,000 |
Payables and Other Credit Bal81
Payables and Other Credit Balances (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Other Credit Balances [Abstract] | ||
Income taxes | ₪ 437 | ₪ 3,070 |
Other governmental institutions | 14 | 1,235 |
Wages and fringe benefits | 6,488 | 2,235 |
Derivative | 1,831 | |
Provision for real estate tax (see also note 13.c.13) | 4,213 | |
Income in advance | 136 | 6,429 |
Provision in respect of plots in India (see also note 4.d.) | 16,308 | |
Provision (see also note 13) | 29,167 | 15,354 |
Accrued expenses, and others | 6,530 | 10,899 |
Payables and other credit balances | ₪ 63,293 | ₪ 46,699 |
Payables and Other Credit Bal82
Payables and Other Credit Balances (Details Textual) | 12 Months Ended |
Dec. 31, 2017 | |
Fixed interest rate [member] | |
Payables and Other Credit Balances (Textual) | |
Loan interest rate | 1.00% |
Borrowings (Details)
Borrowings (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
At amortized cost: | ||
Amortized cost gross | ₪ 1,024,172 | ₪ 1,981,639 |
Less - current maturities (see note 9) | (780,861) | (1,128,769) |
Amortized cost net | 243,311 | 852,870 |
Loans from banks and financial institutions [Member] | ||
At amortized cost: | ||
Amortized cost gross | 761,710 | |
Notes issued by the Company [Member] | ||
At amortized cost: | ||
Amortized cost gross | 538,668 | 498,637 |
Notes issued by PC [Member] | ||
At amortized cost: | ||
Amortized cost gross | ₪ 485,504 | ₪ 721,292 |
Borrowings (Details 1)
Borrowings (Details 1) ₪ in Thousands | 12 Months Ended |
Dec. 31, 2017ILS (₪) | |
NIS [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Interest rates | Israeli CPI + 6 - 6.9 |
Borrowings | ₪ 1,002,913 |
PLN [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Interest rates | 6m Wibor + 6 |
Borrowings | ₪ 21,259 |
Borrowings (Details 2)
Borrowings (Details 2) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about borrowings [line items] | |||
Loans from banks and financial institutions | ₪ 761,710 | ||
Loans provided to the Company [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans from banks and financial institutions | [1] | 59,082 | |
Loans provided to PC [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans from banks and financial institutions | [2] | 332,705 | |
Loans provided to SPV holding the Radisson Complex [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans from banks and financial institutions | ₪ 369,923 | ||
[1] | During December 2017, the Company repaid the entire loan to Bank Hapoalim in amount of approximately NIS 59 million. | ||
[2] | Following the sale of PC subsidiaries, all PC bank loan were derecognized in amount of approximately NIS 333 million. |
Borrowings (Details 3)
Borrowings (Details 3) - ILS (₪) ₪ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of detailed information about borrowings [line items] | ||||
Carrying amounts | ₪ 1,024,172 | ₪ 1,981,639 | ||
Notes issued by the Company [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Adjusted par value | 571,789 | 556,187 | ||
Carrying amounts | ₪ 538,668 | ₪ 498,637 | ||
Notes issued by the Company [Member] | Series H Notes [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Effective interest rate | 9.47% | 9.47% | ||
interest rate | CPI+6 | CPI+6 | ||
Principal final maturity | 2,018 | 2,018 | ||
Adjusted par value | ₪ 296,160 | ₪ 296,160 | ||
Carrying amounts | ₪ 295,363 | ₪ 282,935 | ||
Notes issued by the Company [Member] | Series I Notes [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Effective interest rate | 12.80% | 12.80% | ||
interest rate | CPI+6 | CPI+6 | ||
Principal final maturity | 2,019 | 2,019 | ||
Adjusted par value | ₪ 217,279 | ₪ 217,279 | ||
Carrying amounts | 184,955 | 172,954 | ||
Notes issued by the Company [Member] | Accumulated Interest On Series I Notes [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Adjusted par value | 58,350 | 42,748 | ||
Carrying amounts | 58,350 | 42,748 | ||
Notes issued by PC [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Adjusted par value | 511,483 | 754,024 | ||
Carrying amounts | ₪ 485,504 | ₪ 721,292 | [1] | |
Notes issued by PC [Member] | Series A Notes [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Effective interest rate | 9.47% | 9.47% | ||
interest rate | CPI+6 | CPI+6 | ||
Principal final maturity | [1] | 2,020 | 2,020 | |
Adjusted par value | ₪ 198,974 | ₪ 257,772 | ||
Carrying amounts | ₪ 190,865 | ₪ 248,716 | ||
Notes issued by PC [Member] | Series B Notes [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Effective interest rate | 13.48% | 13.48% | ||
interest rate | CPI+6.9 | CPI+6.9 | ||
Principal final maturity | [1] | 2,019 | 2,019 | |
Adjusted par value | ₪ 291,333 | ₪ 453,264 | ||
Carrying amounts | ₪ 273,380 | ₪ 429,871 | ||
Notes issued by PC [Member] | Polish Notes [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Effective interest rate | 10.46% | 10.46% | ||
interest rate | 6%+ 6M WIBOR | 6%+ 6M WIBOR | ||
Principal final maturity | [1] | 2,018 | 2,018 | |
Adjusted par value | ₪ 21,176 | ₪ 42,988 | ||
Carrying amounts | ₪ 21,259 | ₪ 42,705 | ||
[1] | The Debentures are classified as current liabilities (see note 7 b2). |
Borrowings (Details 4)
Borrowings (Details 4) - Dec. 31, 2017 € in Thousands, ₪ in Thousands | ILS (₪) | EUR (€) |
Disclosure of detailed information about borrowings [line items] | ||
2,018 | ₪ 100,398 | € 24,175 |
2,019 | 351,210 | 84,568 |
2,020 | 59,874 | 14,417 |
Total | ₪ 511,482 | € 123,160 |
Borrowings (Details Textual)
Borrowings (Details Textual) € in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Nov. 29, 2016ILS (₪) | Feb. 20, 2014ILS (₪) | Mar. 31, 2017 | Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016ILS (₪) | Dec. 31, 2015ILS (₪) | Jul. 09, 2014ILS (₪) | |||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Unpaid amount, description | (i) first, towards all unpaid amounts under the Series H, and (ii) secondly, towards all unpaid amounts under Series I. | ||||||||||
Repayments of borrowings | ₪ 460,523,000 | $ 132,830 | ₪ 332,553,000 | ₪ 377,406,000 | |||||||
Percentage of unsecured debt | 75.00% | 75.00% | 75.00% | ||||||||
Principal payments due description | Principal payments originally due in 2016 and 2017 were deferred for a period of one year (the "Extended Repayment Schedule"). | Principal payments originally due in 2016 and 2017 were deferred for a period of one year (the "Extended Repayment Schedule"). | Principal payments originally due in 2016 and 2017 were deferred for a period of one year (the "Extended Repayment Schedule"). | ||||||||
Early Prepayments | ₪ 382,000,000 | ||||||||||
Early prepayments reducing prcentage | 12.00% | ||||||||||
Repayment of debentures | € | € 45 | ||||||||||
Description of bond holders | PC paid to its bondholders a total amount of NIS 191.7 million as an early redemption. Upon such payments, the PC complied with the Early Prepayment Term (early redemption at the total sum of at least NIS 382,000,000) and thus obtained a deferral of one year for the remaining contractual obligations of the bonds. | ||||||||||
Profit and loss | ₪ (401,681,000) | $ (115,858) | (312,068,000) | [1] | (314,922,000) | [1] | |||||
Loan to Bank Hapoalim [Member] | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Repayments of borrowings | 59,000,000 | ||||||||||
PC bank loan [Member] | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Bank loan were derecognized in amount | ₪ 333,000,000 | ||||||||||
January 2018 [Member] | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Description of bond holders | ● New repayment ratios between the two Israeli Series of Bonds (new ratio: Bond A- 39% Bond B- 61%); ● An increase in the level of the mandatory early repayments from 75% to 78% of the relevant net income; ● New repayment schedule; ● An increase in the compensation to be paid to the Bondholders in the event of successful disposal of Casa Radio Project; ● A waiver of claims to the PC and its directors and officers; and ● To waive the request for publication of quarterly financial reports by the Company. | ● New repayment ratios between the two Israeli Series of Bonds (new ratio: Bond A- 39% Bond B- 61%); ● An increase in the level of the mandatory early repayments from 75% to 78% of the relevant net income; ● New repayment schedule; ● An increase in the compensation to be paid to the Bondholders in the event of successful disposal of Casa Radio Project; ● A waiver of claims to the PC and its directors and officers; and ● To waive the request for publication of quarterly financial reports by the Company. | ● New repayment ratios between the two Israeli Series of Bonds (new ratio: Bond A- 39% Bond B- 61%); ● An increase in the level of the mandatory early repayments from 75% to 78% of the relevant net income; ● New repayment schedule; ● An increase in the compensation to be paid to the Bondholders in the event of successful disposal of Casa Radio Project; ● A waiver of claims to the PC and its directors and officers; and ● To waive the request for publication of quarterly financial reports by the Company. | ||||||||
Bondholders principal and interestc | € | € 38,487 | ||||||||||
Interest rate on cash flow | The accumulated interest till that date in all of the series (in case of an exit which is not one of the four shopping centers only 50% of the interest) and 78% of the remaining cash (following the interest payment) will be used for an early repayment of the close principal payments for each of the series (A, B, Polish) each in accordance with its relative share in the deferred debt. Such prepayment will be real repayment and not in bond purchase. | The accumulated interest till that date in all of the series (in case of an exit which is not one of the four shopping centers only 50% of the interest) and 78% of the remaining cash (following the interest payment) will be used for an early repayment of the close principal payments for each of the series (A, B, Polish) each in accordance with its relative share in the deferred debt. Such prepayment will be real repayment and not in bond purchase. | The accumulated interest till that date in all of the series (in case of an exit which is not one of the four shopping centers only 50% of the interest) and 78% of the remaining cash (following the interest payment) will be used for an early repayment of the close principal payments for each of the series (A, B, Polish) each in accordance with its relative share in the deferred debt. Such prepayment will be real repayment and not in bond purchase. | ||||||||
March 2018 [Member] | Noteholders [Member] | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
One-time consent fee | ₪ 2,000 | € 488 | |||||||||
Restructuring Plans [Member] | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings aggregate principal amount | ₪ 434,000,000 | ||||||||||
Principal payments due description | Principal payments under the notes that originally due in the years 2013 to 2015 were deferred for a period of four and a half years. | Principal payments under the notes that originally due in the years 2013 to 2015 were deferred for a period of four and a half years. | Principal payments under the notes that originally due in the years 2013 to 2015 were deferred for a period of four and a half years. | ||||||||
Series I [Member] | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings aggregate principal amount | ₪ 218,000,000 | ||||||||||
Interest rate percentage | 6.00% | ||||||||||
Borrowings payment date, description | Repayable in a single payment at December 1, 2019. | ||||||||||
Series I [Member] | March 2018 [Member] | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings payment date, description | November 2,019 | November 2,019 | November 2,019 | ||||||||
Purchase of borrowings | ₪ 42,200,000 | ||||||||||
Total consideration | 49,200,000 | ||||||||||
Due from borrowings | 226,000,000 | ||||||||||
Profit and loss | $ | $ 2,000 | ||||||||||
Series H [Member] | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings aggregate principal amount | ₪ 448,000,000 | ||||||||||
Interest rate percentage | 6.00% | ||||||||||
Borrowings payment date, description | Repayable in a single payment at May 31, 2018. | ||||||||||
Purchase of borrowings | 150,000 | ||||||||||
Total consideration | 138,000 | ||||||||||
Gain of borrowings | ₪ 2,300 | ₪ 3,400 | |||||||||
Series H [Member] | January 5, 2018 [Member] | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Repayments of borrowings | ₪ 240,000,000 | ||||||||||
Series H [Member] | March 2018 [Member] | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings payment date, description | May 2,018 | May 2,018 | May 2,018 | ||||||||
Purchase of borrowings | ₪ 7,100,000 | ||||||||||
Total consideration | 7,200,000 | ||||||||||
Due from borrowings | ₪ 50,000,000 | ||||||||||
[1] | Reclassified (discontinued operations). Refer to Note 19. |
Income Taxes (Details)
Income Taxes (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Current | ₪ 804 | ₪ 2,166 | |
For previous year | 11,404 | ||
Deferred | (160) | 2,216 | 2,236 |
Total | ₪ 11,244 | ₪ 3,020 | ₪ 4,402 |
Income Taxes (Details 1)
Income Taxes (Details 1) ₪ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | Dec. 31, 2015ILS (₪) | |||
Income Taxes [Abstract] | ||||||
Profit (loss) before income taxes | ₪ (237,534) | $ (68,513) | ₪ (316,961) | [1] | ₪ (366,751) | [1] |
Israeli company's statutory tax rate | 24.00% | 24.00% | 25.00% | 26.50% | ||
The theoretical tax | ₪ (57,008) | ₪ (79,241) | ₪ (97,189) | |||
Differences in tax burden in respect of: | ||||||
Exempt income, net of unrecognized expenses | 11,139 | 673 | 9,991 | |||
Prior-year losses for which deferred taxes had not previously been recorded, including utilization | (940) | (2,873) | (17,805) | |||
Losses and other timing differences for which deferred taxes had not been recorded | 39,272 | 60,545 | 104,115 | |||
The effect of different measurement principles applied for the financial statements and those applied for income tax purposes (including exchange differences) | 5,330 | (1,493) | 7,457 | |||
Differences in tax rates on income of foreign subsidiaries | (2,034) | 11,830 | (13,916) | |||
The Group's share in results of associated companies | 4,849 | 13,579 | 11,620 | |||
Taxes for prior years | 11,404 | |||||
Other differences, net | (768) | 129 | ||||
Income tax expense | ₪ 11,244 | $ 3,243 | ₪ 3,020 | [1] | ₪ 4,402 | [1] |
[1] | Reclassified (discontinued operations). Refer to Note 19. |
Income Taxes (Details 2)
Income Taxes (Details 2) ₪ in Thousands | Dec. 31, 2017ILS (₪) |
Operating Losses Carryforwards [Line Items] | |
Carry-forward losses | ₪ 882,698 |
2018 [Member] | |
Operating Losses Carryforwards [Line Items] | |
Carry-forward losses | 3,339 |
2019 [Member] | |
Operating Losses Carryforwards [Line Items] | |
Carry-forward losses | 26,157 |
2020 [Member] | |
Operating Losses Carryforwards [Line Items] | |
Carry-forward losses | 47,601 |
2021 and thereafter[Member] | |
Operating Losses Carryforwards [Line Items] | |
Carry-forward losses | ₪ 805,601 |
Income Taxes (Details 3)
Income Taxes (Details 3) - ILS (₪) ₪ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | ₪ (92,942) | ₪ (81,059) |
Charge to profit and loss account | 160 | 399 |
Deconsolidation | 92,472 | (17,365) |
Foreign currency translation adjustments | 310 | 5,083 |
Ending balance | (92,942) | |
Differences between book value of property, plant and equipment and value for income tax purposes[Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | (92,472) | (82,990) |
Charge to profit and loss account | 1,319 | |
Deconsolidation | 92,472 | (17,046) |
Foreign currency translation adjustments | 6,245 | |
Ending balance | (92,472) | |
Temporary difference associated with investment in subsidiaries [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | (7,216) | |
Charge to profit and loss account | 7,216 | (7,216) |
Deconsolidation | ||
Foreign currency translation adjustments | ||
Ending balance | (7,216) | |
Timing differences - income and expenses [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | (8,654) | (15,969) |
Charge to profit and loss account | 1,880 | 6,721 |
Deconsolidation | (319) | |
Foreign currency translation adjustments | 291 | 913 |
Ending balance | (6,483) | (8,654) |
Carry forward tax losses and deductions [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 15,400 | 17,900 |
Charge to profit and loss account | (8,936) | (425) |
Deconsolidation | ||
Foreign currency translation adjustments | 19 | (2,075) |
Ending balance | ₪ 6,483 | ₪ 15,400 |
Income Taxes (Details 4)
Income Taxes (Details 4) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | ₪ 272,971 | ₪ 272,484 |
Timing differences - income and expenses [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 1,429 | 1,602 |
Carry forward tax losses and deductions [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | ₪ 271,542 | ₪ 270,882 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) ₪ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016ILS (₪) | Dec. 31, 2015ILS (₪) | |
Income Taxes (Textual) | |||||
Corporate tax rate | 24.00% | 24.00% | 24.00% | 25.00% | 26.50% |
Description of taxation of profits | (i) its shares or its rights on it are not listed in a stock exchange, however if they are partly listed, then less than 30% of the shares or of the rights of the company were offered to the public (ii) majority of revenues thereof are passive, as same is defined by law, or majority of profits thereof derive from passive revenues; (iii) the tax rate applying to the passive profits thereof in their country of residence does not exceed 20%; and (iv) more than 50% of the means of control therein are held, directly or indirectly, by Israeli residents. | (i) its shares or its rights on it are not listed in a stock exchange, however if they are partly listed, then less than 30% of the shares or of the rights of the company were offered to the public (ii) majority of revenues thereof are passive, as same is defined by law, or majority of profits thereof derive from passive revenues; (iii) the tax rate applying to the passive profits thereof in their country of residence does not exceed 20%; and (iv) more than 50% of the means of control therein are held, directly or indirectly, by Israeli residents. | (i) its shares or its rights on it are not listed in a stock exchange, however if they are partly listed, then less than 30% of the shares or of the rights of the company were offered to the public (ii) majority of revenues thereof are passive, as same is defined by law, or majority of profits thereof derive from passive revenues; (iii) the tax rate applying to the passive profits thereof in their country of residence does not exceed 20%; and (iv) more than 50% of the means of control therein are held, directly or indirectly, by Israeli residents. | ||
Distribution of dividends, percentage | 25 | 25 | 25 | ||
Capital gain from the realization of assets acquisition, description | The realization of assets which were acquired subsequent to January 1, 2003 will be taxed at a rate of 25%. Capital gain for assets which were acquired before January 1, 2003, will be taxed at a rate of 25% for the portion of the gain relating to the period subsequent to this date up to the realization date and corporate tax rate for the portion of the gain relating to the period from the acquisition date up to January 1, 2003. | The realization of assets which were acquired subsequent to January 1, 2003 will be taxed at a rate of 25%. Capital gain for assets which were acquired before January 1, 2003, will be taxed at a rate of 25% for the portion of the gain relating to the period subsequent to this date up to the realization date and corporate tax rate for the portion of the gain relating to the period from the acquisition date up to January 1, 2003. | The realization of assets which were acquired subsequent to January 1, 2003 will be taxed at a rate of 25%. Capital gain for assets which were acquired before January 1, 2003, will be taxed at a rate of 25% for the portion of the gain relating to the period subsequent to this date up to the realization date and corporate tax rate for the portion of the gain relating to the period from the acquisition date up to January 1, 2003. | ||
Tax profits | ₪ 1,207 | ||||
Effective rate, description | b) The Dutch participation exemption gives a full exemption from corporation tax applies to benefits such as dividends and capital gains derived from a qualifying participation. The participation exemption generally applies if the parent Company holds at least 5 percent of the shares in the participation. The requirements to meet the participation exemption are as follows: 1. The parent Company has an interest of at least 5 percent in the participation; and 2. At least one of the following three tests is met: a) The parent Company’s objective with respect to its participation is to obtain a return that is higher than a return that may be expected from normal active asset management (“Motive Test”); or b) The participation is subject to a “reasonable taxation” according to Dutch tax standards (“Subject-to-Tax Test”); or c) The direct and indirect assets of the participation generally consist of less than 50 percent of ‘low taxed free passive investments’ (“Asset Test”). d) Dividend distributions from a Netherlands company to qualifying Israeli corporate shareholders holding at least 25% of the shares of such Netherlands company is subject to withholding tax at a rate of 5% provided certain compliance related formalities have been satisfied. | b) The Dutch participation exemption gives a full exemption from corporation tax applies to benefits such as dividends and capital gains derived from a qualifying participation. The participation exemption generally applies if the parent Company holds at least 5 percent of the shares in the participation. The requirements to meet the participation exemption are as follows: 1. The parent Company has an interest of at least 5 percent in the participation; and 2. At least one of the following three tests is met: a) The parent Company’s objective with respect to its participation is to obtain a return that is higher than a return that may be expected from normal active asset management (“Motive Test”); or b) The participation is subject to a “reasonable taxation” according to Dutch tax standards (“Subject-to-Tax Test”); or c) The direct and indirect assets of the participation generally consist of less than 50 percent of ‘low taxed free passive investments’ (“Asset Test”). d) Dividend distributions from a Netherlands company to qualifying Israeli corporate shareholders holding at least 25% of the shares of such Netherlands company is subject to withholding tax at a rate of 5% provided certain compliance related formalities have been satisfied. | b) The Dutch participation exemption gives a full exemption from corporation tax applies to benefits such as dividends and capital gains derived from a qualifying participation. The participation exemption generally applies if the parent Company holds at least 5 percent of the shares in the participation. The requirements to meet the participation exemption are as follows: 1. The parent Company has an interest of at least 5 percent in the participation; and 2. At least one of the following three tests is met: a) The parent Company’s objective with respect to its participation is to obtain a return that is higher than a return that may be expected from normal active asset management (“Motive Test”); or b) The participation is subject to a “reasonable taxation” according to Dutch tax standards (“Subject-to-Tax Test”); or c) The direct and indirect assets of the participation generally consist of less than 50 percent of ‘low taxed free passive investments’ (“Asset Test”). d) Dividend distributions from a Netherlands company to qualifying Israeli corporate shareholders holding at least 25% of the shares of such Netherlands company is subject to withholding tax at a rate of 5% provided certain compliance related formalities have been satisfied. | ||
Accumulated tax losses and deductions | ₪ 1,207 | ||||
VAT assessments | ₪ 11 | ||||
Plaintiffs, description | The claim was instituted from USD 13.25 per share to USD 7.25. The main relief sought in the original claim was an order for the Company to consummate the purchase offer for USD 14 per share, and alternatively, to purchase Elscint's shares held by the Plaintiffs at a price to be set by the court. | The claim was instituted from USD 13.25 per share to USD 7.25. The main relief sought in the original claim was an order for the Company to consummate the purchase offer for USD 14 per share, and alternatively, to purchase Elscint's shares held by the Plaintiffs at a price to be set by the court. | The claim was instituted from USD 13.25 per share to USD 7.25. The main relief sought in the original claim was an order for the Company to consummate the purchase offer for USD 14 per share, and alternatively, to purchase Elscint's shares held by the Plaintiffs at a price to be set by the court. | ||
Aforementioned compensation | ₪ 719 | $ 207 | ₪ 189 | ₪ 1,047 | |
VAT and customs | ₪ 25 | ||||
Bottom of range [member] | |||||
Income Taxes (Textual) | |||||
Corporate tax rate | 12.50% | ||||
Top of range [member] | |||||
Income Taxes (Textual) | |||||
Corporate tax rate | 35.00% | ||||
Israel Tax Authorities [Member] | 2018 [Member] | |||||
Income Taxes (Textual) | |||||
Corporate tax rate | 23.00% | 23.00% | 23.00% | ||
Netherlands Tax Authorities [Member] | |||||
Income Taxes (Textual) | |||||
Corporate tax rate | 20.00% | 20.00% | 20.00% | ||
Tax profits | € | € 200,000 | ||||
Dividend distributions, description | Dividend distributions from a Netherlands company to qualifying Israeli corporate shareholders holding at least 25% of the shares of such Netherlands company is subject to withholding tax at a rate of 5% provided certain compliance related formalities have been satisfied. | Dividend distributions from a Netherlands company to qualifying Israeli corporate shareholders holding at least 25% of the shares of such Netherlands company is subject to withholding tax at a rate of 5% provided certain compliance related formalities have been satisfied. | Dividend distributions from a Netherlands company to qualifying Israeli corporate shareholders holding at least 25% of the shares of such Netherlands company is subject to withholding tax at a rate of 5% provided certain compliance related formalities have been satisfied. |
Commitments, Contingencies, L95
Commitments, Contingencies, Liens and Collaterals (Details) - 12 months ended Dec. 31, 2017 € in Thousands, ₪ in Thousands, $ in Millions | ILS (₪) | USD ($) | EUR (€) | EUR (€) |
Commitments, Contingencies, Liens and Collaterals (Textual) | ||||
Claims realized | ₪ 7,000 | |||
Compensation | ₪ 4,600 | |||
Damage sought value, description | The Plaintiffs allege that the value of Elscint's shares dropped during the period between February 24, 1999 and the date at which the claim was instituted from USD 13.25 per share to USD 7.25. The main relief sought in the original claim was an order for the Company to consummate the purchase offer for USD 14 per share, and alternatively, to purchase Elscint's shares held by the Plaintiffs at a price to be set by the court. | The Plaintiffs allege that the value of Elscint's shares dropped during the period between February 24, 1999 and the date at which the claim was instituted from USD 13.25 per share to USD 7.25. The main relief sought in the original claim was an order for the Company to consummate the purchase offer for USD 14 per share, and alternatively, to purchase Elscint's shares held by the Plaintiffs at a price to be set by the court. | The Plaintiffs allege that the value of Elscint's shares dropped during the period between February 24, 1999 and the date at which the claim was instituted from USD 13.25 per share to USD 7.25. The main relief sought in the original claim was an order for the Company to consummate the purchase offer for USD 14 per share, and alternatively, to purchase Elscint's shares held by the Plaintiffs at a price to be set by the court. | |
VAT and customs asessments amount | ₪ 25,000 | |||
Bail mortgage | € | € 5,000 | |||
Coverage ratio covenant, description | The CRC is a fraction calculated based on known Group valuations reports and consolidated financial information available at each reporting period. The CRC to be complied with by the Group is 118% ("Minimum CRC") in each reporting period. as of December 31, 2017 calculated CRC is 103%. In the event that the CRC is lower than the Minimum CRC, then as from the first cut -off date on which a breach of the CRC has been established and for as long as the breach is continuing, PC shall not perform any of the following: (a) a sale, directly or indirectly, of a Real Estate Asset ("REA") owned by PC or its subsidiaries, with the exception that it shall be permitted to sell the REA if it has an obligation to do so which was entered into prior to the said cut-off date, (b) investments in new REA's; or (c) an investments that regards an existing project of the Company or of a subsidiary, unless it does not exceed a level of 20% of the construction cost of such project (as approved by the lending bank of these projects) and the certain loan to cost ratio of the projects are met. | The CRC is a fraction calculated based on known Group valuations reports and consolidated financial information available at each reporting period. The CRC to be complied with by the Group is 118% ("Minimum CRC") in each reporting period. as of December 31, 2017 calculated CRC is 103%. In the event that the CRC is lower than the Minimum CRC, then as from the first cut -off date on which a breach of the CRC has been established and for as long as the breach is continuing, PC shall not perform any of the following: (a) a sale, directly or indirectly, of a Real Estate Asset ("REA") owned by PC or its subsidiaries, with the exception that it shall be permitted to sell the REA if it has an obligation to do so which was entered into prior to the said cut-off date, (b) investments in new REA's; or (c) an investments that regards an existing project of the Company or of a subsidiary, unless it does not exceed a level of 20% of the construction cost of such project (as approved by the lending bank of these projects) and the certain loan to cost ratio of the projects are met. | The CRC is a fraction calculated based on known Group valuations reports and consolidated financial information available at each reporting period. The CRC to be complied with by the Group is 118% ("Minimum CRC") in each reporting period. as of December 31, 2017 calculated CRC is 103%. In the event that the CRC is lower than the Minimum CRC, then as from the first cut -off date on which a breach of the CRC has been established and for as long as the breach is continuing, PC shall not perform any of the following: (a) a sale, directly or indirectly, of a Real Estate Asset ("REA") owned by PC or its subsidiaries, with the exception that it shall be permitted to sell the REA if it has an obligation to do so which was entered into prior to the said cut-off date, (b) investments in new REA's; or (c) an investments that regards an existing project of the Company or of a subsidiary, unless it does not exceed a level of 20% of the construction cost of such project (as approved by the lending bank of these projects) and the certain loan to cost ratio of the projects are met. | |
Bonds issued | ₪ 485,498 | € 116,914 | ||
Civil money penalty | $ | $ 0.5 | |||
Contingent liability due to tax provision | ₪ 4,200 | € 1,000 | ||
Percentage of mandatory early repayment | 75.00% | 75.00% | 75.00% | |
Current provisions | ₪ 8 | |||
January 8, 2018 [Member] | ||||
Commitments, Contingencies, Liens and Collaterals (Textual) | ||||
Compensation | 50,000 | |||
April 20, 2018 [Member] | ||||
Commitments, Contingencies, Liens and Collaterals (Textual) | ||||
Obligated to pay deposit amount | ₪ 5,000 | |||
Indemnification to directors and officers of the Company [Member] | ||||
Commitments, Contingencies, Liens and Collaterals (Textual) | ||||
Other contingent liabilities, description | The General Meeting of the Company's shareholders has approved the grant of prospective indemnification undertaking to the Company's directors (including the controlling shareholder) and officers (including for their service as officers at the Company's subsidiaries, where applicable). The total aggregate indemnification shall not exceed USD 40 million, and all in excess of an amount paid (if paid) by insurance companies under applicable insurance policy/ies. The Company's Board of directors and Audit committee has also approved an exemption of officers from liability for any damage caused by breach of a duty of care towards the Company. | The General Meeting of the Company's shareholders has approved the grant of prospective indemnification undertaking to the Company's directors (including the controlling shareholder) and officers (including for their service as officers at the Company's subsidiaries, where applicable). The total aggregate indemnification shall not exceed USD 40 million, and all in excess of an amount paid (if paid) by insurance companies under applicable insurance policy/ies. The Company's Board of directors and Audit committee has also approved an exemption of officers from liability for any damage caused by breach of a duty of care towards the Company. | The General Meeting of the Company's shareholders has approved the grant of prospective indemnification undertaking to the Company's directors (including the controlling shareholder) and officers (including for their service as officers at the Company's subsidiaries, where applicable). The total aggregate indemnification shall not exceed USD 40 million, and all in excess of an amount paid (if paid) by insurance companies under applicable insurance policy/ies. The Company's Board of directors and Audit committee has also approved an exemption of officers from liability for any damage caused by breach of a duty of care towards the Company. | |
Indemnification to directors and officers of Elscint [Member] | ||||
Commitments, Contingencies, Liens and Collaterals (Textual) | ||||
Other contingent liabilities, description | Elscint's shareholders have approved, at their General Meeting (on October 2000), the grant of prospective indemnification undertaking to directors and officers of Elscint (including for their service as officers of Elscint's subsidiaries where applicable). The total indemnification shall not exceed the lower of 25% of the shareholders' equity as set forth in Elscint's most recent audited consolidated financial statements prior to such payment or USD 50 million, in excess of any amounts paid (if paid) by insurance companies pursuant to the insurance policy maintained by the Company from time to time. | Elscint's shareholders have approved, at their General Meeting (on October 2000), the grant of prospective indemnification undertaking to directors and officers of Elscint (including for their service as officers of Elscint's subsidiaries where applicable). The total indemnification shall not exceed the lower of 25% of the shareholders' equity as set forth in Elscint's most recent audited consolidated financial statements prior to such payment or USD 50 million, in excess of any amounts paid (if paid) by insurance companies pursuant to the insurance policy maintained by the Company from time to time. | Elscint's shareholders have approved, at their General Meeting (on October 2000), the grant of prospective indemnification undertaking to directors and officers of Elscint (including for their service as officers of Elscint's subsidiaries where applicable). The total indemnification shall not exceed the lower of 25% of the shareholders' equity as set forth in Elscint's most recent audited consolidated financial statements prior to such payment or USD 50 million, in excess of any amounts paid (if paid) by insurance companies pursuant to the insurance policy maintained by the Company from time to time. | |
Indemnification to directors and officers of Plaza Centers [Member] | ||||
Commitments, Contingencies, Liens and Collaterals (Textual) | ||||
Other contingent liabilities, description | PC has entered into an indemnity agreement with directors (including the Company's chairman of the board and other director of the Company at their role as directors of PC) and PC's senior management. the maximum indemnification amount to be granted by PC to its directors shall not exceed 25% of the shareholders' equity of PC based on PC's shareholders' equity set forth in PC last audited consolidated financial statements prior to such payment. | PC has entered into an indemnity agreement with directors (including the Company's chairman of the board and other director of the Company at their role as directors of PC) and PC's senior management. the maximum indemnification amount to be granted by PC to its directors shall not exceed 25% of the shareholders' equity of PC based on PC's shareholders' equity set forth in PC last audited consolidated financial statements prior to such payment. | PC has entered into an indemnity agreement with directors (including the Company's chairman of the board and other director of the Company at their role as directors of PC) and PC's senior management. the maximum indemnification amount to be granted by PC to its directors shall not exceed 25% of the shareholders' equity of PC based on PC's shareholders' equity set forth in PC last audited consolidated financial statements prior to such payment. | |
Indemnification to directors and officers of InSightec [Member] | ||||
Commitments, Contingencies, Liens and Collaterals (Textual) | ||||
Other contingent liabilities, description | InSightec (an associated company) is obliged to indemnify and to hold harmless its directors and officers (including one of the Company's directors who serves as a director in InSightec), to the fullest extent permitted by the laws of any relevant jurisdiction, against any liability. The total indemnification for all InSightec's directors and officers, in accordance with the letter of indemnification (in addition to the amounts received from the insurers), shall not exceed the higher of USD 10 million or USD 2 million per office holder with the addition of the reimbursement of legal expenses totalling USD 1 million. | InSightec (an associated company) is obliged to indemnify and to hold harmless its directors and officers (including one of the Company's directors who serves as a director in InSightec), to the fullest extent permitted by the laws of any relevant jurisdiction, against any liability. The total indemnification for all InSightec's directors and officers, in accordance with the letter of indemnification (in addition to the amounts received from the insurers), shall not exceed the higher of USD 10 million or USD 2 million per office holder with the addition of the reimbursement of legal expenses totalling USD 1 million. | InSightec (an associated company) is obliged to indemnify and to hold harmless its directors and officers (including one of the Company's directors who serves as a director in InSightec), to the fullest extent permitted by the laws of any relevant jurisdiction, against any liability. The total indemnification for all InSightec's directors and officers, in accordance with the letter of indemnification (in addition to the amounts received from the insurers), shall not exceed the higher of USD 10 million or USD 2 million per office holder with the addition of the reimbursement of legal expenses totalling USD 1 million. | |
Indemnification to directors and officers of Gamida [Member] | ||||
Commitments, Contingencies, Liens and Collaterals (Textual) | ||||
Other contingent liabilities, description | Gamida has granted its directors, an indemnification undertaking letter for any monetary obligation with respect to a claim, including a compromise agreement or arbitration award, carried out in respect to actions taken by the director during the time of his/her service as Gamida's or Gamida's Subsidiary or Affiliate's (as such terms defined therein) Director and in such capacity, as well as with respect to reasonable legal expenses including payments of legal fees paid by the Directors as a result of an investigation or proceeding initiated against the Director. The indemnification is limited to USD 6 million. | Gamida has granted its directors, an indemnification undertaking letter for any monetary obligation with respect to a claim, including a compromise agreement or arbitration award, carried out in respect to actions taken by the director during the time of his/her service as Gamida's or Gamida's Subsidiary or Affiliate's (as such terms defined therein) Director and in such capacity, as well as with respect to reasonable legal expenses including payments of legal fees paid by the Directors as a result of an investigation or proceeding initiated against the Director. The indemnification is limited to USD 6 million. | Gamida has granted its directors, an indemnification undertaking letter for any monetary obligation with respect to a claim, including a compromise agreement or arbitration award, carried out in respect to actions taken by the director during the time of his/her service as Gamida's or Gamida's Subsidiary or Affiliate's (as such terms defined therein) Director and in such capacity, as well as with respect to reasonable legal expenses including payments of legal fees paid by the Directors as a result of an investigation or proceeding initiated against the Director. The indemnification is limited to USD 6 million. | |
Indemnification to directors and officers of Elbit Medical Technologies [Member] | ||||
Commitments, Contingencies, Liens and Collaterals (Textual) | ||||
Other contingent liabilities, description | The total indemnification that Elbit Medical Technologies shall pay to each of the indemnified parties (in addition to amount received from the insurance companies according to the insurance policy) shall not exceed USD 40 million. The maximum indemnification amount shall not be affected by payment according to any insurance policy or its existence unless the indemnification amount claimed was already covered by the insurance companies or by any third party. | The total indemnification that Elbit Medical Technologies shall pay to each of the indemnified parties (in addition to amount received from the insurance companies according to the insurance policy) shall not exceed USD 40 million. The maximum indemnification amount shall not be affected by payment according to any insurance policy or its existence unless the indemnification amount claimed was already covered by the insurance companies or by any third party. | The total indemnification that Elbit Medical Technologies shall pay to each of the indemnified parties (in addition to amount received from the insurance companies according to the insurance policy) shall not exceed USD 40 million. The maximum indemnification amount shall not be affected by payment according to any insurance policy or its existence unless the indemnification amount claimed was already covered by the insurance companies or by any third party. | |
Pending lease payments to a purchaser of a commercial center [Member] | ||||
Commitments, Contingencies, Liens and Collaterals (Textual) | ||||
Other contingent liabilities, description | A former subsidiary of PC incorporated in Prague, Czech Rep. (“Bestes”), which was sold in June 2006 is a party to an agreement with a third party (“Lessee”), for the lease of commercial areas in a center constructed on property owned thereby, for a period of 30 years, with an option to extend the lease period by additional 30 years, in consideration for EUR 6.9 million (NIS 28 million), which as of the balance sheet date has been fully paid. According to the lease agreement, the Lessee has the right to terminate the lease subject to fulfilment of certain conditions as stipulated in the agreement. In case the Lessee leaves the mall before expiration of lease period PC will be liable to repay the remaining consideration in amount of EUR 1.9 Million (NIS 8 million) as of balance sheet date, unless the buyer finds other tenant that will pay higher annual lease payment than the Lessee. PC’s management does not expect to bear a material loss. | A former subsidiary of PC incorporated in Prague, Czech Rep. (“Bestes”), which was sold in June 2006 is a party to an agreement with a third party (“Lessee”), for the lease of commercial areas in a center constructed on property owned thereby, for a period of 30 years, with an option to extend the lease period by additional 30 years, in consideration for EUR 6.9 million (NIS 28 million), which as of the balance sheet date has been fully paid. According to the lease agreement, the Lessee has the right to terminate the lease subject to fulfilment of certain conditions as stipulated in the agreement. In case the Lessee leaves the mall before expiration of lease period PC will be liable to repay the remaining consideration in amount of EUR 1.9 Million (NIS 8 million) as of balance sheet date, unless the buyer finds other tenant that will pay higher annual lease payment than the Lessee. PC’s management does not expect to bear a material loss. | A former subsidiary of PC incorporated in Prague, Czech Rep. (“Bestes”), which was sold in June 2006 is a party to an agreement with a third party (“Lessee”), for the lease of commercial areas in a center constructed on property owned thereby, for a period of 30 years, with an option to extend the lease period by additional 30 years, in consideration for EUR 6.9 million (NIS 28 million), which as of the balance sheet date has been fully paid. According to the lease agreement, the Lessee has the right to terminate the lease subject to fulfilment of certain conditions as stipulated in the agreement. In case the Lessee leaves the mall before expiration of lease period PC will be liable to repay the remaining consideration in amount of EUR 1.9 Million (NIS 8 million) as of balance sheet date, unless the buyer finds other tenant that will pay higher annual lease payment than the Lessee. PC’s management does not expect to bear a material loss. |
Share Capital (Details)
Share Capital (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share Capital [Abstract] | |||
Authorized share capital | 11,666,667 | 11,666,667 | 35,000,000 |
Issued and outstanding | 9,190,808 | 9,190,808 | 27,572,426 |
Options Plans (Details)
Options Plans (Details) - Elbit Medical plan [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of options, Balance at the beginning of the year | 158,592,747 | 140,035,935 |
Number of options, Granted | 500,000 | 22,298,912 |
Number of options, Forfeited | (104,685,257) | (3,742,100) |
Number of options, Exercised | (36,670,449) | |
Number of options, Balance at the end of the year | 17,737,041 | 158,592,747 |
Number of options, Options exercisable at the year end | 2,371,100 | 136,293,835 |
Weighted average exercise price, Balance at the beginning of the year | $ 0.14 | $ 0.14 |
Weighted average exercise price, Granted | 0.13 | 0.10 |
Weighted average exercise price, Forfeited | 0.13 | 0.40 |
Weighted average exercise price, Exercised | 0.13 | |
Weighted average exercise price, Balance at the end of the year | 0.11 | 0.14 |
Weighted average exercise price, Options exercisable at the year end | $ 0.13 | $ 0.13 |
Options Plans (Details 1)
Options Plans (Details 1) - PC's plan [Member] | 12 Months Ended |
Dec. 31, 2017£ / sharesshares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of options | 235,520 |
Max exercisable number of shares | 356,781 |
Average exercise price | £ / shares | £ 43 |
Vested | 253,520 |
Average contractual life | 5 years 22 days |
Option granted to key personnel | 30,000 |
Options Plans (Details Textual)
Options Plans (Details Textual) - Options plan [Member] | Oct. 13, 2016$ / sharesshares |
Chairman [Member] | |
Options Plans (Textual) | |
Options exercisable | shares | 38,445 |
Percentage of issued and outstanding share capital | 0.40% |
Options exercise price | $ / shares | $ 13.426 |
Option term | 5 years |
Options vested equally over period | 3 years |
Chairman 1 [Member] | |
Options Plans (Textual) | |
Options exercise price | $ / shares | $ 0.106 |
Option term | 5 years |
Options vested equally over period | 3 years |
Options granted | shares | 8,199,275 |
Additional Details Concernin100
Additional Details Concerning Income Statement (Details) ₪ in Thousands, shares in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2017ILS (₪)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016ILS (₪)shares | Dec. 31, 2015ILS (₪)shares | ||||
Direct expenses: | |||||||
Cost of trading property sold | ₪ 771,765 | ₪ 112,346 | ₪ 227,910 | ||||
Wages and fringe benefits | 396 | 1,503 | 3,341 | ||||
Energy costs | 1,900 | 3,868 | 6,073 | ||||
Taxes and insurance | 2,405 | 4,764 | 6,999 | ||||
Maintenance of property and other expenses | 2,442 | 5,351 | 8,286 | ||||
Total | 778,908 | 127,832 | 252,609 | ||||
Other operating expenses: | |||||||
Wages and fringe benefits | 11,726 | 13,497 | 16,716 | ||||
Professional services | 9,224 | 8,458 | 7,638 | ||||
Advertising | 2,884 | 6,685 | 7,247 | ||||
Other | 2,759 | 2,932 | 5,363 | ||||
Other operating expenses | 26,593 | 31,572 | 36,964 | ||||
Depreciation and amortization | 122 | 402 | 787 | ||||
Total | 805,623 | 159,806 | 290,360 | ||||
General and administrative expense | |||||||
Wages and fringe benefits | 4,372 | 3,744 | 6,687 | ||||
Stock-based compensation expenses | 325 | 27 | 1,086 | ||||
Depreciation and amortization | 12 | 19 | 29 | ||||
Expenses relating to the Company's plan of arrangement | 122 | 221 | 412 | ||||
Professional expenses | 5,728 | 2,326 | 2,867 | ||||
Other | 4,371 | 3,920 | 5,597 | ||||
Total | 14,930 | $ 4,306 | 10,257 | [1] | 16,678 | [1] | |
Financial expense | |||||||
Interest and CPI linkage on borrowings | 103,360 | 193,116 | 200,169 | ||||
Gain from buy back of notes and bank loan (see note 11d2) | (78,193) | (55,475) | |||||
Loss from foreign currency translation differences | 7,273 | 30,018 | 69,003 | ||||
Other financial expenses (income) | 1,651 | 1,405 | (5,976) | ||||
Total financial expenses | 112,284 | 146,346 | 207,721 | ||||
Financial expenses capitalized to qualified assets | 12 | (21,992) | |||||
Total | 112,296 | 32,390 | 124,354 | [1] | 207,721 | [1] | |
Financial income | |||||||
Interest on deposits and receivables | 168 | 203 | 649 | ||||
Gain (loss) from foreign currency translation differences | 91 | (1,259) | 1,505 | ||||
Other financial income | 1,552 | ||||||
Total | 1,811 | (1,056) | 2,154 | ||||
Change in fair value of financial instruments measured at fair value through profit and loss | |||||||
Loss from change in fair value of derivatives (mainly swap and forward transactions) | (2,707) | ||||||
Gain on marketable securities | 2,568 | ||||||
Total | 2,707 | [1] | (2,568) | [1] | |||
Write down, charges and other expenses, net | |||||||
Write down of trading property | [2] | 89,345 | 189,592 | 86,717 | |||
Realization of foreign currency translation reserve to the profit and loss | 3,534 | ||||||
Initiation expenses | 12,461 | 1,796 | 6,239 | ||||
Other, net | [3] | (686) | (29,070) | 2,802 | |||
Total | 101,120 | 162,318 | 99,292 | ||||
The earnings and weighted average number of ordinary shares used in the calculation of the basic earning per share are as follows: | |||||||
Profit (Loss) from continuing operations | (185,132) | (53,398) | (202,724) | [1] | (242,709) | [1] | |
Profit (Loss) from discontinued operation | ₪ (152,903) | $ (44,102) | ₪ 7,913 | [1] | ₪ 56,231 | [1] | |
Weighted average number of shares used in computing basic earnings per share (thousands) | shares | [4] | 9,191 | 9,191 | 9,191 | 9,191 | ||
[1] | Reclassified (discontinued operations). Refer to Note 19. | ||||||
[2] | See note 4b regarding trading property write downs. | ||||||
[3] | In 2016 -Including gain from increase in holdings in Indian subsidiaries. Refer also to note 4d. | ||||||
[4] | The earnings used in the calculation of all diluted earnings per share are same as those for the equivalent basic earnings per share measures. |
Related Parties (Details)
Related Parties (Details) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2017ILS (₪)Recipients | Dec. 31, 2016ILS (₪)Recipients | Dec. 31, 2015ILS (₪)Recipients | |
Related Parties [Abstract] | |||
Salaries, directors' fees and bonuses | ₪ 4,655 | ₪ 3,373 | ₪ 4,798 |
Termination benefits of former key personnel | 200 | ||
Post-employment benefits | 239 | 257 | |
Amortization of stock based compensation expenses | 399 | 53 | 866 |
Benefits to key management personnel | ₪ 5,254 | ₪ 3,665 | ₪ 5,921 |
Number of recipients (excluding directors) | Recipients | 7 | 7 | 7 |
Related Parties (Details 1)
Related Parties (Details 1) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Liabilities: | ||
The Company's and PC's traded notes | ₪ 116,130 | ₪ 211,790 |
Benefits payable to key management personnel | 3,499 | 2,114 |
Balances with related parties | ₪ 119,629 | ₪ 213,904 |
Related Parties (Details Textua
Related Parties (Details Textual) | 12 Months Ended |
Dec. 31, 2017 | |
York Capital Management Global Advisors, LLC [Member] | |
Related Parties (Textual) | |
Share capital, percentage | 19.60% |
Davidson Kempner Capital Management LLC [Member] | |
Related Parties (Textual) | |
Share capital, percentage | 14.30% |
Directors and officers [Member] | |
Related Parties (Textual) | |
Insurance policy liability, description | The directors and officers of the Company and its subsidiaries (excluding PC and its subsidiaries which are covered under a separate policy - see b below), are covered by directors’ and officers’ liability insurance policy of up to USD 40 million per occurrence and in the aggregate during the duration of the policy. In addition, the directors and officers of the Company (excluding any subsidiary) are covered by additional directors’ and officers’ liability insurance policy of up to USD 20 million per occurrence and in the aggregate during the duration of the policy. |
Increase of premium, percentage | 20.00% |
Insurance policy expire, date | Mar. 1, 2019 |
PC's directors and officers [Member] | |
Related Parties (Textual) | |
Insurance policy liability, description | PC maintains Directors' and Officers' liability insurance policy, presently at the maximum amount of USD 60 million which will expire on November 1 2017. The new policy does not exclude past public offering and covers the risk that may be incurred by the Directors through public offerings of equity up to USD 50 million. |
Insurance policy expire, date | Nov. 1, 2017 |
InSightec's directors and officers [Member] | |
Related Parties (Textual) | |
Insurance policy liability, description | InSightec's directors and officers are covered by two insurance policies; (i) Run Off policy, which is valid for a period of 7 years commencing December 2012, covering damages that has occurred until December 2012 uo to USD 20 million, and (ii) a second policy covering damages that had occurred or might occur from December 2012 and on up to USD 60 million, and it precedes and does not have the right to participate in the policies of directors and officers held by any of the shareholders of InSightec, including a component of special coverage for risk management (up to an amount of USD 100 thousands) with worldwide coverage. InSightec's directors and officers insurance includes a retroactive cover and contains a 7 year extended reporting period provision. |
Gamida's directors and officers [Member] | |
Related Parties (Textual) | |
Insurance policy liability, description | Gamida's directors and officers are covered by D&O liability Insurance Policy. The policy covers claim first made against the insured during the policy period and notified to the insurer during the policy period for any wrongful act in the insured's capacity as a director or officer of the company - all in accordance with the policy terms and conditions. The policy limit of liability is USD 6 million. Total aggregate for all loss, arising out of all claims made against all insured is under all insurance covers combined. |
Segments Reporting (Details)
Segments Reporting (Details) ₪ in Thousands, $ in Thousands | 12 Months Ended | ||||||||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | Dec. 31, 2016USD ($) | Dec. 31, 2015ILS (₪) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||||
Disclosure of operating segments [line items] | |||||||||||
Revenues | ₪ 782,829 | $ 225,794 | ₪ 126,019 | [1] | ₪ 200,078 | [1] | |||||
Segment profit (loss) | $ | 92,450 | $ (129,035) | $ (89,644) | ||||||||
Financial income (expenses) | $ | (5,281) | 60,454 | (30,958) | ||||||||
Share in losses of associates, net | (20,202) | (54,313) | (42,925) | ||||||||
Adjustments: | |||||||||||
Unallocated general and administrative expenses | 14,930 | 4,306 | 10,257 | [1] | 16,678 | [1] | |||||
Unallocated financial expenses | 112,296 | 32,390 | 124,354 | [1] | 207,721 | [1] | |||||
Financial income | 1,811 | 522 | (1,056) | [1] | 2,154 | [1] | |||||
Change in fair value of financial instruments measured at FVTPL | 2,707 | [1] | (2,568) | [1] | |||||||
Loss before income taxes | (237,534) | (68,513) | (316,961) | [1] | (366,751) | [1] | |||||
Additions to segment assets | $ | 7,895 | 249,004 | 28,695 | ||||||||
Unallocated | $ | 3,156 | ||||||||||
Total additions | $ | 11,051 | 251,477 | 51,878 | ||||||||
Depreciation and amortization of segment assets | 122 | 402 | 787 | ||||||||
Unallocated | $ | 28,951 | ||||||||||
Total Depreciation and amortization | $ | 29,003 | 33,085 | |||||||||
Impairment of segment assets | $ | 90,757 | 189,592 | 85,918 | ||||||||
Unallocated | $ | |||||||||||
Total Impairment | $ | 90,757 | $ 189,592 | $ 85,918 | ||||||||
Assets and Liabilities | |||||||||||
Segment assets | $ | 498,856 | $ 1,372,714 | $ 1,497,038 | ||||||||
Equity basis investments | $ | 5,437 | 26,949 | 292,183 | ||||||||
Unallocated | $ | 513,078 | ||||||||||
Total Assets | $ | 1,017,371 | 2,261,209 | 2,703,552 | ||||||||
Liabilities | |||||||||||
Segment liabilities | $ | 93,269 | 431,662 | 536,332 | ||||||||
Unallocated liabilities | $ | 1,072,887 | ||||||||||
Total Liabilities | $ | 1,166,156 | $ 2,212,595 | $ 2,399,488 | ||||||||
Unallocated amounts [member] | |||||||||||
Adjustments: | |||||||||||
Unallocated general and administrative expenses | (14,930) | (10,257) | (16,678) | ||||||||
Unallocated other expenses | 532 | (652) | (9,369) | ||||||||
Unallocated financial expenses | (107,015) | (184,809) | (176,763) | ||||||||
Financial income | 1,811 | ||||||||||
Loss before income taxes | (237,534) | ||||||||||
Additions to segment assets | 2,473 | 23,183 | |||||||||
Depreciation and amortization of segment assets | 37,109 | 32,184 | |||||||||
Total Depreciation and amortization | 37,415 | ||||||||||
Impairment of segment assets | |||||||||||
Assets and Liabilities | |||||||||||
Equity basis investments | 861,546 | 914,331 | |||||||||
Liabilities | |||||||||||
Segment liabilities | 1,780,933 | 1,863,156 | |||||||||
Commercial centers [Member] | |||||||||||
Disclosure of operating segments [line items] | |||||||||||
Revenues | 814,826 | 210,014 | [2] | 309,302 | [2] | ||||||
Segment profit (loss) | (36,929) | (135,061) | [2] | (74,170) | [2] | ||||||
Financial income (expenses) | (5,281) | 60,454 | [2] | 29,605 | [2] | ||||||
Share in losses of associates, net | [2] | [2] | |||||||||
Adjustments: | |||||||||||
Additions to segment assets | 7,895 | 94,406 | [2] | 28,562 | [2] | ||||||
Depreciation and amortization of segment assets | 52 | 306 | [2] | 863 | [2] | ||||||
Total Depreciation and amortization | [2] | 85,918 | |||||||||
Impairment of segment assets | 47,700 | 165,028 | [2] | ||||||||
Assets and Liabilities | |||||||||||
Segment assets | 305,503 | 1,126,871 | [2] | 1,579,921 | [2] | ||||||
Equity basis investments | [2] | ||||||||||
Liabilities | |||||||||||
Segment liabilities | 54,792 | 428,386 | [2] | 658,994 | [2] | ||||||
Medical industries and devices [Member] | |||||||||||
Disclosure of operating segments [line items] | |||||||||||
Revenues | 117,488 | 96,333 | 69,432 | ||||||||
Segment profit (loss) | (135,445) | (119,689) | (95,805) | ||||||||
Financial income (expenses) | 1,353 | ||||||||||
Share in losses of associates, net | (15,156) | (7,960) | (13,465) | ||||||||
Adjustments: | |||||||||||
Additions to segment assets | |||||||||||
Depreciation and amortization of segment assets | |||||||||||
Total Depreciation and amortization | |||||||||||
Assets and Liabilities | |||||||||||
Segment assets | 262,183 | ||||||||||
Equity basis investments | 15,916 | 24,233 | |||||||||
Liabilities | |||||||||||
Segment liabilities | 92,644 | ||||||||||
Plots in India [Member] | |||||||||||
Disclosure of operating segments [line items] | |||||||||||
Revenues | |||||||||||
Segment profit (loss) | (55,422) | 9,354 | (12,325) | ||||||||
Financial income (expenses) | |||||||||||
Share in losses of associates, net | |||||||||||
Adjustments: | |||||||||||
Additions to segment assets | 7,895 | 154,598 | |||||||||
Depreciation and amortization of segment assets | 52 | ||||||||||
Total Depreciation and amortization | |||||||||||
Impairment of segment assets | 47,700 | 24,564 | |||||||||
Assets and Liabilities | |||||||||||
Segment assets | 187,509 | 245,092 | 247,383 | ||||||||
Equity basis investments | |||||||||||
Liabilities | |||||||||||
Segment liabilities | 38,477 | 3,319 | 2,624 | ||||||||
Other activities and allocations [member] | |||||||||||
Disclosure of operating segments [line items] | |||||||||||
Revenues | |||||||||||
Segment profit (loss) | |||||||||||
Financial income (expenses) | |||||||||||
Share in losses of associates, net | |||||||||||
Adjustments: | |||||||||||
Additions to segment assets | 133 | ||||||||||
Depreciation and amortization of segment assets | 38 | ||||||||||
Total Depreciation and amortization | |||||||||||
Impairment of segment assets | $ | 43,057 | ||||||||||
Assets and Liabilities | |||||||||||
Segment assets | 5,845 | 6,453 | 7,081 | ||||||||
Equity basis investments | |||||||||||
Liabilities | |||||||||||
Segment liabilities | |||||||||||
Equity method adjustments [Member] | |||||||||||
Disclosure of operating segments [line items] | |||||||||||
Revenues | (117,488) | (113,911) | (88,095) | ||||||||
Segment profit (loss) | 135,445 | 116,361 | 92,656 | ||||||||
Financial income (expenses) | |||||||||||
Share in losses of associates, net | ₪ (5,047) | (46,353) | (29,460) | ||||||||
Adjustments: | |||||||||||
Additions to segment assets | |||||||||||
Depreciation and amortization of segment assets | |||||||||||
Total Depreciation and amortization | |||||||||||
Assets and Liabilities | |||||||||||
Segment assets | (5,702) | (599,531) | |||||||||
Equity basis investments | $ 5,437 | 11,033 | 267,950 | ||||||||
Liabilities | |||||||||||
Segment liabilities | ₪ (43) | ₪ (217,930) | |||||||||
[1] | Reclassified (discontinued operations). Refer to Note 19. | ||||||||||
[2] | Includes mainly revenues from commercial centers under operation until their sale and consideration from sales of commercial centers. |
Segments Reporting (Details 1)
Segments Reporting (Details 1) ₪ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | Dec. 31, 2015ILS (₪) | |||
Disclosure of geographical areas [line items] | ||||||
Revenues | ₪ 782,829 | $ 225,794 | ₪ 126,019 | [1] | ₪ 200,078 | [1] |
Other [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenues | 6,712 | |||||
East and central Europe [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenues | 814,826 | 192,436 | 133,631 | |||
East and central Europe [Member] | Poland [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenues | 514,291 | 76,724 | 71,219 | |||
East and central Europe [Member] | Czech Republic [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenues | 43,519 | 9,240 | ||||
East and central Europe [Member] | Romania [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenues | 36,538 | 2,898 | 45,217 | |||
East and central Europe [Member] | Serbia [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenues | 246,534 | 68,165 | 3,832 | |||
East and central Europe [Member] | Other [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenues | 17,463 | 1,130 | 4,123 | |||
India [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenues | ₪ 150,296 | |||||
[1] | Reclassified (discontinued operations). Refer to Note 19. |
Segments Reporting (Details 2)
Segments Reporting (Details 2) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of geographical areas [line items] | ||
Non-current assets by geographical areas | ₪ 495,214 | ₪ 1,354,029 |
East and central Europe [Member] | ||
Disclosure of geographical areas [line items] | ||
Non-current assets by geographical areas | 300,165 | 1,084,749 |
India [Member] | ||
Disclosure of geographical areas [line items] | ||
Non-current assets by geographical areas | 193,450 | 245,091 |
Israel [Member] | ||
Disclosure of geographical areas [line items] | ||
Non-current assets by geographical areas | ₪ 1,599 | ₪ 24,189 |
Discontinued Operations (Detail
Discontinued Operations (Details) - ILS (₪) ₪ / shares in Units, ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |||
Revenues from hotel operations and management | ₪ 130,142 | ₪ 135,839 | ₪ 147,886 |
Revenues from fashion merchandise | 1,857 | ||
Total | 130,142 | 135,839 | 149,743 |
Expenses and losses | |||
Cost of fashion merchandise | 4,123 | ||
Cost of hotel operations and management | 105,678 | 115,367 | 126,849 |
Financial expenses | 20,103 | 19,634 | 31,444 |
Other income, net | (669) | (6,961) | (70,133) |
Total expenses and losses | (125,112) | (128,040) | (92,283) |
Profit (loss) from discontinued operations before income taxes | (5,030) | 7,799 | 57,460 |
Income tax (income) expenses | 80 | (114) | 1,229 |
Profit (loss) from discontinued operations | (5,110) | 7,913 | 56,231 |
Gain from sale of hotels | (55,835) | ||
Release of capital funds as a result of the sale of hotels | 213,848 | ||
Total Profit from discontinued operations | ₪ 152,903 | ₪ 56,231 | |
Basic and diluted earnings per share | ₪ (16.64) | ₪ 0.85 | ₪ 6.11 |
Discontinued Operations (Det108
Discontinued Operations (Details 1) ₪ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | [1] | Dec. 31, 2016USD ($) | [1] | Dec. 31, 2015ILS (₪) | ||
Revenues | ||||||||
Revenues from sale of commercial centers | ₪ 782,829 | $ 225,794 | ₪ 126,019 | ₪ 200,078 | [1] | |||
Revenues from Hotels operations and management | ||||||||
Total revenues | 782,829 | 225,794 | 126,019 | 200,078 | [1] | |||
Gains and other | ||||||||
Rental income from commercial centers | 31,997 | 9,229 | 66,417 | 83,849 | [1] | |||
Gain from sale of investees | 6,712 | [1] | ||||||
Total gains | 31,997 | 9,229 | 66,417 | 90,561 | [1] | |||
Total revenues and gains | 814,826 | 235,023 | 192,436 | 290,639 | [1] | |||
Expenses and losses | ||||||||
Cost of commercial centers | 805,623 | 232,369 | 159,806 | 290,360 | [1] | |||
Hotels operations and management | ||||||||
General and administrative expenses | 14,930 | 4,306 | 10,257 | 16,678 | [1] | |||
Share in losses of associates, net | 20,202 | 5,827 | 54,313 | 42,925 | [1] | |||
Financial expenses | 112,296 | 32,390 | 124,354 | 207,721 | [1] | |||
Financial income | 1,811 | 522 | (1,056) | 2,154 | [1] | |||
Change in fair value of financial instruments measured at fair value through profit and loss | (2,707) | 2,568 | [1] | |||||
Write-down, charges and other expenses, net | 101,120 | 29,166 | 162,318 | 99,292 | [1] | |||
Total expenses and losses | 1,052,360 | 303,536 | 509,397 | 657,390 | [1] | |||
Loss before income taxes | (237,534) | (68,513) | (316,961) | (366,751) | [1] | |||
Income taxes expenses (tax benefits) | 11,244 | 3,243 | 3,020 | 4,402 | [1] | |||
Loss from continuing operations | (248,778) | (71,756) | (319,981) | (371,153) | [1] | |||
Profit from discontinued operations, net | (152,903) | (44,102) | 7,913 | 56,231 | [1] | |||
Loss for the year | (401,681) | (115,858) | (312,068) | (314,922) | [1] | |||
Attributable to: | ||||||||
Equity holders of the Company | (338,034) | (97,500) | (194,830) | (186,150) | [1] | |||
Non-controlling interest | (63,647) | (18,358) | (117,238) | (128,772) | [1] | |||
Total Attributable | (401,681) | (115,858) | (312,068) | (314,922) | [1] | |||
Loss from continuing operations | ||||||||
Equity holders of the Company | (185,132) | (53,398) | (202,724) | (242,709) | [1] | |||
Non-controlling interest | (63,647) | (18,358) | (117,257) | (128,463) | [1] | |||
Profit (loss) from continuing operations | (248,778) | (71,756) | (319,981) | (371,153) | [1] | |||
Profit from discontinued operation, net | ||||||||
Equity holders of the Company | (152,903) | (44,102) | 7,893 | 56,540 | [1] | |||
Non-controlling interest | 20 | (309) | [1] | |||||
Profit (loss) from discontinued operations, net | ₪ (152,903) | $ (44,102) | ₪ 7,913 | 56,231 | [1] | |||
As previously reported [Member] | ||||||||
Revenues | ||||||||
Revenues from sale of commercial centers | 200,078 | |||||||
Revenues from Hotels operations and management | 147,886 | |||||||
Total revenues | 347,964 | |||||||
Gains and other | ||||||||
Rental income from commercial centers | 83,849 | |||||||
Gain from sale of investees | 6,712 | |||||||
Total gains | 90,561 | |||||||
Total revenues and gains | 438,525 | |||||||
Expenses and losses | ||||||||
Cost of commercial centers | 290,360 | |||||||
Hotels operations and management | 126,849 | |||||||
General and administrative expenses | 16,678 | |||||||
Share in losses of associates, net | 42,925 | |||||||
Financial expenses | 236,288 | |||||||
Financial income | (2,154) | |||||||
Change in fair value of financial instruments measured at fair value through profit and loss | 5,446 | |||||||
Write-down, charges and other expenses, net | 38,298 | |||||||
Total expenses and losses | 754,690 | |||||||
Loss before income taxes | (316,165) | |||||||
Income taxes expenses (tax benefits) | 5,631 | |||||||
Loss from continuing operations | (321,796) | |||||||
Profit from discontinued operations, net | 6,874 | |||||||
Loss for the year | (314,922) | |||||||
Attributable to: | ||||||||
Equity holders of the Company | (186,150) | |||||||
Non-controlling interest | (128,772) | |||||||
Total Attributable | (314,922) | |||||||
Loss from continuing operations | ||||||||
Equity holders of the Company | (193,024) | |||||||
Non-controlling interest | (128,772) | |||||||
Profit (loss) from continuing operations | (321,796) | |||||||
Profit from discontinued operation, net | ||||||||
Equity holders of the Company | 6,874 | |||||||
Non-controlling interest | ||||||||
Profit (loss) from discontinued operations, net | 6,874 | |||||||
Amendment [Member] | ||||||||
Revenues | ||||||||
Revenues from sale of commercial centers | ||||||||
Revenues from Hotels operations and management | (147,886) | |||||||
Total revenues | (147,886) | |||||||
Gains and other | ||||||||
Rental income from commercial centers | ||||||||
Gain from sale of investees | ||||||||
Total gains | ||||||||
Total revenues and gains | ||||||||
Expenses and losses | ||||||||
Cost of commercial centers | ||||||||
Hotels operations and management | (126,849) | |||||||
General and administrative expenses | ||||||||
Share in losses of associates, net | ||||||||
Financial expenses | (28,567) | |||||||
Financial income | ||||||||
Change in fair value of financial instruments measured at fair value through profit and loss | (2,878) | |||||||
Write-down, charges and other expenses, net | 60,994 | |||||||
Total expenses and losses | (97,300) | |||||||
Loss before income taxes | (50,586) | |||||||
Income taxes expenses (tax benefits) | (1,229) | |||||||
Loss from continuing operations | (49,357) | |||||||
Profit from discontinued operations, net | 49,357 | |||||||
Loss for the year | ||||||||
Attributable to: | ||||||||
Equity holders of the Company | ||||||||
Non-controlling interest | ||||||||
Total Attributable | ||||||||
Loss from continuing operations | ||||||||
Equity holders of the Company | (49,685) | |||||||
Non-controlling interest | 309 | |||||||
Profit (loss) from continuing operations | (49,357) | |||||||
Profit from discontinued operation, net | ||||||||
Equity holders of the Company | 49,666 | |||||||
Non-controlling interest | (309) | |||||||
Profit (loss) from discontinued operations, net | ₪ 49,357 | |||||||
[1] | Reclassified (discontinued operations). Refer to Note 19. |
Discontinued Operations (Det109
Discontinued Operations (Details 2) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Discontinued Operations And Disposal Group [Line Items] | |||
Net cash provided by (used in) discontinued operations | ₪ 189,069 | ₪ 159,081 | ₪ (21,833) |
Operating activities [Member] | |||
Discontinued Operations And Disposal Group [Line Items] | |||
Net cash provided by (used in) discontinued operations | 49,142 | 26,443 | (5,921) |
Other investment activities [Member] | |||
Discontinued Operations And Disposal Group [Line Items] | |||
Net cash provided by (used in) discontinued operations | 297,875 | 14,082 | 216,957 |
Other financing activities [Member] | |||
Discontinued Operations And Disposal Group [Line Items] | |||
Net cash provided by (used in) discontinued operations | ₪ (157,948) | ₪ 118,556 | ₪ (189,203) |
Discontinued Operations (Det110
Discontinued Operations (Details Textual) € in Millions, ₪ in Millions | Jan. 05, 2015ILS (₪) | Nov. 29, 2017EUR (€) | Dec. 31, 2017ILS (₪) | Dec. 31, 2017EUR (€) |
Discontinued Operations [Abstract] | ||||
Property value | € | € 169.2 | |||
Percentage of outstanding share capital | 98.20% | |||
Net Proceeds outstanding loan | ₪ 240 | € 11.6 | ||
Consideration | ₪ | ₪ 37.7 |
Financial Instruments (Details)
Financial Instruments (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | ₪ 514,317 | ₪ 181,978 |
Financial Liabilities | 1,088,479 | 2,053,737 |
Derivative financial liabilities at fair value through profit and loss [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Liabilities | 1,832 | |
Financial liabilities at amortized cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Liabilities | 1,088,479 | 2,051,905 |
Cash and cash equivalents [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 465,740 | 89,688 |
Loans and receivables [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 44,545 | 88,199 |
Available for sale financial instruments [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | ₪ 4,032 | ₪ 4,091 |
Financial Instruments (Details
Financial Instruments (Details 1) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2017ILS (₪)ExcahngeRate | Dec. 31, 2016ILS (₪)ExcahngeRate | Dec. 31, 2015ILS (₪)ExcahngeRate | |
Financial liabilities [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Profit (loss) | ₪ (48,550) | ₪ (115,030) | ₪ (118,208) |
Assets - Cash and deposits [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Profit (loss) | ₪ 14,221 | ₪ 2,024 | ₪ 5,545 |
Foreign currency (NIS) and Linkage currency (EURO) [Member] | Financial liabilities - Loans at amortized cost [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Change in the exchange rate (%) | ExcahngeRate | 10 | 10 | |
Profit (loss) | ₪ (5,908) | ₪ (15,746) | |
Foreign currency (NIS) and Linkage currency (EURO) [Member] | Assets - Cash and deposits [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Change in the exchange rate (%) | ExcahngeRate | 10 | 10 | 10 |
Profit (loss) | ₪ 368 | ₪ 501 | ₪ 1,637 |
Foreign currency (NIS) and Linkage currency (USD) [Member] | Assets - Cash and deposits [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Change in the exchange rate (%) | ExcahngeRate | 10 | 10 | |
Profit (loss) | ₪ 131 | ₪ 181 | |
Functional currency (EURO) and Linkage currency (PLN) [Member] | Financial liabilities - Loans at amortized cost [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Change in the exchange rate (%) | ExcahngeRate | 10 | 10 | 10 |
Profit (loss) | ₪ (2,125) | ₪ (4,271) | ₪ (5,503) |
Functional currency (EURO) and Linkage currency (PLN) [Member] | Assets - Cash and deposits [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Change in the exchange rate (%) | ExcahngeRate | 10 | 10 | 10 |
Profit (loss) | ₪ 174 | ₪ 947 | ₪ 883 |
Functional currency (EURO) and Linkage currency (USD) [Member] | Assets - Cash and deposits [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Change in the exchange rate (%) | ExcahngeRate | 10 | 10 | 10 |
Profit (loss) | ₪ 243 | ₪ 135 | ₪ 1,005 |
Functional currency (EURO) and Linkage currency (NIS) [Member] | Financial liabilities - Notes at amortized cost [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Change in the exchange rate (%) | ExcahngeRate | 10 | 10 | 10 |
Profit (loss) | ₪ (46,425) | ₪ (67,859) | ₪ (71,615) |
Functional currency (EURO) and Linkage currency (NIS) [Member] | Assets - Cash and deposits [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Change in the exchange rate (%) | ExcahngeRate | 10 | 10 | 10 |
Profit (loss) | ₪ 13,305 | ₪ 260 | ₪ 857 |
Functional currency (RON) and Linkage currency (EURO) [Member] | Financial liabilities - Loans at amortized cost [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Change in the exchange rate (%) | ExcahngeRate | 10 | 10 | |
Profit (loss) | ₪ (36,992) | ₪ (25,344) | |
Functional currency (EURO) and Linkage currency (RON) [Member] | Assets - Cash and deposits [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Change in the exchange rate (%) | ExcahngeRate | 10 | ||
Profit (loss) | ₪ 1,163 |
Financial Instruments (Detai113
Financial Instruments (Details 2) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about financial instruments [line items] | |||
Cash flow risk | ₪ (213) | ₪ (4,345) | ₪ (6,478) |
Loans linked to the EURO [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash flow risk | (3,918) | (5,928) | |
Notes linked to the PLN [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash flow risk | ₪ (213) | ₪ (427) | ₪ (550) |
Financial Instruments (Detai114
Financial Instruments (Details 3) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Borrowing with fixed interest rate | |||
Loans linked to EURO | ₪ 424,480 | ||
PC's notes linked to the Israeli CPI | [1] | ₪ 531,276 | 812,787 |
Notes linked to the Israeli CPI | 613,786 | 631,820 | |
Total | 1,145,062 | 1,869,087 | |
Borrowing with variable interest rate | |||
Loans linked to the EURO | 424,988 | ||
Notes linked to the PLN | 21,949 | 46,935 | |
Total | 471,923 | ||
Suppliers, payable and other credit balances | 47,999 | 55,504 | |
Total financial liabilities | 1,215,010 | 2,396,514 | |
Financial assets | |||
Cash and cash equivalent | 465,740 | 89,688 | |
Short term deposits | 10,496 | 39,527 | |
Trade receivables and other receivables | 3,210 | 54,577 | |
Long term deposits, loans and investments | 34,874 | 16,420 | |
Total financial assets | 514,320 | 200,212 | |
1st year [Member] | |||
Borrowing with fixed interest rate | |||
Loans linked to EURO | 29,376 | ||
PC's notes linked to the Israeli CPI | [1] | 238,898 | 211,934 |
Notes linked to the Israeli CPI | 303,564 | 17,770 | |
Total | 542,462 | 259,080 | |
Borrowing with variable interest rate | |||
Loans linked to the EURO | 261,453 | ||
Notes linked to the PLN | 21,949 | 16,542 | |
Total | 277,995 | ||
Suppliers, payable and other credit balances | 47,999 | 53,532 | |
Total financial liabilities | 612,410 | 590,607 | |
Financial assets | |||
Cash and cash equivalent | 465,740 | 89,688 | |
Short term deposits | 10,496 | 39,527 | |
Trade receivables and other receivables | 3,210 | 54,577 | |
Long term deposits, loans and investments | |||
Total financial assets | 479,446 | 183,792 | |
2nd year [Member] | |||
Borrowing with fixed interest rate | |||
Loans linked to EURO | 29,719 | ||
PC's notes linked to the Israeli CPI | [1] | 236,812 | 152,116 |
Notes linked to the Israeli CPI | 310,222 | 303,564 | |
Total | 547,034 | 485,399 | |
Borrowing with variable interest rate | |||
Loans linked to the EURO | 9,923 | ||
Notes linked to the PLN | 30,393 | ||
Total | 40,316 | ||
Suppliers, payable and other credit balances | |||
Total financial liabilities | 547,034 | 525,715 | |
Financial assets | |||
Cash and cash equivalent | |||
Short term deposits | |||
Trade receivables and other receivables | |||
Long term deposits, loans and investments | 2,827 | ||
Total financial assets | 2,827 | ||
3rd year [Member] | |||
Borrowing with fixed interest rate | |||
Loans linked to EURO | 30,495 | ||
PC's notes linked to the Israeli CPI | [1] | 55,566 | 387,256 |
Notes linked to the Israeli CPI | 310,486 | ||
Total | 55,566 | 728,237 | |
Borrowing with variable interest rate | |||
Loans linked to the EURO | 10,588 | ||
Notes linked to the PLN | |||
Total | 10,588 | ||
Suppliers, payable and other credit balances | |||
Total financial liabilities | 55,566 | 738,825 | |
Financial assets | |||
Cash and cash equivalent | |||
Short term deposits | |||
Trade receivables and other receivables | |||
Long term deposits, loans and investments | 33,221 | ||
Total financial assets | 33,221 | ||
4th year [Member] | |||
Borrowing with fixed interest rate | |||
Loans linked to EURO | 334,890 | ||
PC's notes linked to the Israeli CPI | [1] | 61,481 | |
Notes linked to the Israeli CPI | |||
Total | 396,371 | ||
Borrowing with variable interest rate | |||
Loans linked to the EURO | 89,784 | ||
Notes linked to the PLN | |||
Total | 89,784 | ||
Suppliers, payable and other credit balances | 1,972 | ||
Total financial liabilities | 488,127 | ||
Financial assets | |||
Cash and cash equivalent | |||
Short term deposits | |||
Trade receivables and other receivables | |||
Long term deposits, loans and investments | 13,593 | ||
Total financial assets | 13,593 | ||
5th year and thereafter [Member] | |||
Borrowing with fixed interest rate | |||
Loans linked to EURO | |||
PC's notes linked to the Israeli CPI | [1] | ||
Notes linked to the Israeli CPI | |||
Total | |||
Borrowing with variable interest rate | |||
Loans linked to the EURO | 53,240 | ||
Notes linked to the PLN | |||
Total | 53,240 | ||
Suppliers, payable and other credit balances | |||
Total financial liabilities | 53,240 | ||
Financial assets | |||
Cash and cash equivalent | |||
Short term deposits | |||
Trade receivables and other receivables | |||
Long term deposits, loans and investments | 1,653 | ||
Total financial assets | ₪ 1,653 | ||
[1] | This note assumes the minimum contractual payments on the debentures to achieve the Deferral see note 11e. |
Financial Instruments (Detai115
Financial Instruments (Details 4) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Total | ₪ 1,813 | ₪ 40,480 |
Long term borrowings [Member] | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Total | 38,117 | |
Guarantees provided by the Group [Member] | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Total | ₪ 1,813 | ₪ 2,363 |
Financial Instruments (Detai116
Financial Instruments (Details 5) - ILS (₪) ₪ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Total | ₪ (911,051) | ₪ (1,441,359) |
Book Value [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Total | (1,024,168) | (1,589,852) |
Level 3 [Member] | Fair Value [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Long- term loans at fixed interest rate | (369,923) | |
Level 3 [Member] | Book Value [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Long- term loans at fixed interest rate | (369,923) | |
Level 1 [Member] | Fair Value [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Notes | (911,051) | (1,071,436) |
Level 1 [Member] | Book Value [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Notes | ₪ (1,024,168) | ₪ (1,219,929) |
Financial Instruments (Detai117
Financial Instruments (Details Textual) - ILS (₪) ₪ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial Instruments [abstract] | |||
Percentage of changes foreign currency | 10.00% | ||
Increase in the Group finance expenses | ₪ 20 | ₪ 23 | ₪ 25 |
Percentage of increase of israeli CPI | 2.00% |
Subsequent Events (Details)
Subsequent Events (Details) ₪ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017ILS (₪) | Dec. 31, 2017USD ($) | Dec. 31, 2016ILS (₪) | |
Subsequent Events (Textual) | |||
Total amount of debt | ₪ 3,499 | ₪ 2,114 | |
February 19, 2018 [Member] | |||
Subsequent Events (Textual) | |||
Terms of Notes, description | The main terms of the Notes are: (1) Total amount raised: NIS 180 million. (2) Maturity Date: March 1, 2022. (3) Interest: Annual interest of 5% in the first two years and 10% in the remaining period, payable twice a year - in March and September. (4) Conversion: Each NIS1.47 par value in Notes into convertible into one Elbit Medical ordinary share. (5) Certain Covenants: The trust agreement of the Notes includes certain limitations including on the ability of Elbit Medical to distribute dividends or raise additional debt. (6) Collateral: The Notes are secured by a pledge on a portion of Elbit Medical's holdings in INSIGHTEC Ltd. and Gamida Cell Ltd in a "value to loan" ratio of 200%. (7) Use of Proceeds: (a) payment of all expenses in connection with the issuance of the Notes (approximately NIS6 (approx. US$ 1.7 million)); (b) NIS18 million (approx. US$ 5 million) to be deposited with the trustee and for interest payments due on the Notes for the first two years; (c) NIS4 million (approx. US$ 1 million) for ongoing operational expenses; and (d) the remaining proceeds will be used to repay Elbit Medical's intercompany debt to the Company (approximately NIS 154 million (approx. US$ 43 million)). | ||
Total amount of debt | ₪ 2,000 | $ 580 | |
Value of Notes | ₪ 2,000 |