Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Cover [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | OI S.A. - In Judicial Reorganization |
Entity Central Index Key | 0001160846 |
Current Fiscal Year End Date | --12-31 |
Trading Symbol | OIBR |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 5,764,447,760 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Security Exchange Name | NYSE |
Title of 12(b) Security | Common Shares |
Entity Address, Address Line One | Rua Humberto de Campos, 425 |
Entity Address, Address Line Two | 8º andar |
Entity Address, Address Line Three | Leblon |
Entity Address, City or Town | Rio de Janeiro |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 22430-190 |
Consolidated Balance Sheets
Consolidated Balance Sheets - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | R$ 2081945 | R$ 4385329 |
Short-term investments | 183,850 | 201,975 |
Accounts receivable | 6,334,526 | 6,516,555 |
Inventories | 326,934 | 317,503 |
Recoverable income taxes | 542,726 | 621,246 |
Other taxes | 1,089,391 | 803,252 |
Judicial Deposits | 1,514,464 | 1,715,934 |
Dividends and interest on capital | 426 | |
Pension plan assets | 5,430 | 4,880 |
Prepaid expenses | 670,344 | 743,953 |
Held-for-sale assets | 4,391,090 | 4,923,187 |
Other assets | 852,155 | 1,079,670 |
Total current assets | 17,993,281 | 21,313,484 |
Non-current assets | ||
Long-term investments | 33,942 | 36,987 |
Deferred tax assets | 99,175 | 23,050 |
Other taxes | 2,995,559 | 715,976 |
Judicial Deposits | 6,651,383 | 7,018,786 |
Pension plan assets | 54,615 | 64,253 |
Prepaid expenses | 583,736 | 522,550 |
Other assets | 437,667 | 250,862 |
Investments | 133,765 | 117,840 |
Property, plant and equipment, net | 38,910,834 | 28,425,563 |
Intangible assets | 3,997,865 | 6,948,446 |
Total non-current assets | 53,898,541 | 44,124,313 |
Total assets | 71,891,822 | 65,437,797 |
Current liabilities | ||
Trade payables | 4,794,309 | 5,024,260 |
Trade payables – Subject to the JRP | 799,631 | 201,602 |
Payroll, related taxes and benefits | 852,585 | 906,655 |
Derivative financial instruments | 1,152 | |
Borrowings and financing | 326,388 | 672,894 |
Income taxes payable | 66,654 | 27,026 |
Other taxes | 886,763 | 1,033,868 |
Dividends and interest on capital | 5,731 | 6,168 |
Licenses and concessions payable | 58,582 | 85,619 |
Leases payable | 1,510,097 | |
Tax financing program | 86,721 | 142,036 |
Provisions | 547,996 | 680,542 |
Liabilities associated to held-for-sale assets | 494,295 | 526,870 |
Other payables | 1,405,013 | 1,381,919 |
Total current liabilities | 11,835,917 | 10,689,459 |
Non-current liabilities | ||
Trade payables – Subject to the JRP | 3,293,427 | 3,593,008 |
Borrowings and financing | 17,900,361 | 15,777,012 |
Other taxes | 1,224,038 | 628,716 |
Leases payable | 6,639,929 | |
Tax financing program | 330,782 | 411,170 |
Provisions | 4,703,684 | 4,358,178 |
Provision for pension plans | 633,012 | 579,122 |
Other payables | 7,534,166 | 6,505,321 |
Total non-current liabilities | 42,259,399 | 31,852,527 |
Total liabilities | 54,095,316 | 42,541,986 |
Shareholders' equity | ||
Share capital | 32,538,937 | 32,038,471 |
Share issuance costs | (801,073) | (377,429) |
Capital reserves | 3,906,771 | 11,532,995 |
Treasury shares | (33,315) | (2,803,250) |
Accumulated losses | (17,727,954) | (17,530,108) |
Other comprehensive loss | (233,040) | (208,359) |
Shareholders' equity attributable to the Company and subsidiaries | 17,650,326 | 22,652,320 |
Non-controlling interest | 146,180 | 243,491 |
Total shareholders' equity | 17,796,506 | 22,895,811 |
Total liabilities and shareholders' equity | R$ 71891822 | R$ 65437797 |
Consolidated Statements of Oper
Consolidated Statements of Operations - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement [Line Items] | |||
Net operating revenue | R$ 20136183 | R$ 22060014 | R$ 23789654 |
Cost of sales and services | (15,314,814) | (16,179,100) | (15,668,653) |
Gross profit | 4,821,369 | 5,880,914 | 8,121,001 |
Operating (expenses) income | |||
Selling expenses | (3,547,684) | (3,853,002) | (4,102,556) |
General and administrative expenses | (2,782,300) | (2,738,718) | (3,136,808) |
Other operating income | 4,527,710 | 2,204,134 | 1,985,101 |
Other operating expenses | (5,996,465) | (6,761,586) | (5,227,766) |
Expenses, by nature | (7,798,739) | (11,149,172) | (10,482,029) |
Loss before financial income (expenses) and taxes | (2,977,370) | (5,268,258) | (2,361,028) |
Financial income | 2,662,463 | 30,950,461 | 7,136,459 |
Financial expenses | (8,772,181) | (4,341,595) | (10,332,971) |
Financial income (expenses) | (6,109,718) | 26,608,866 | (3,196,512) |
Profit (loss) before taxes | (9,087,088) | 21,340,608 | (5,557,540) |
Income tax expense (current and deferred) | |||
Current | (77,060) | 115,706 | (906,080) |
Deferred | 69,041 | 3,159,241 | (192,542) |
Profit (loss) for the year | (9,095,107) | 24,615,555 | (6,656,162) |
Profit (loss) attributable to owners of the Company | (9,000,434) | 24,591,140 | (6,365,019) |
Profit (loss) attributable to non-controlling interests | (94,673) | 24,415 | (291,143) |
Common shares | |||
Income tax expense (current and deferred) | |||
Profit (loss) attributable to owners of the Company | R$ 8764803 | R$ 22036074 | R$ 4896241 |
Weighted average number of outstanding shares (in thousands of shares) | |||
Weighted average number of outstanding shares | 5,788,447 | 1,344,686 | 519,752 |
Profit (loss) per share from continuing operations: | |||
Profit (loss) per share from continuing operations | R$ 1.51 | R$ 16.39 | R$ 9.42 |
Preferred shares | |||
Income tax expense (current and deferred) | |||
Profit (loss) attributable to owners of the Company | R$ 235631 | R$ 2555066 | R$ 1468778 |
Weighted average number of outstanding shares (in thousands of shares) | |||
Weighted average number of outstanding shares | 155,615 | 155,915 | 155,915 |
Profit (loss) per share from continuing operations: | |||
Profit (loss) per share from continuing operations | R$ 1.51 | R$ 16.39 | R$ 9.42 |
Consolidated Statements Compreh
Consolidated Statements Comprehensive Income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | |||
Profit (loss) for the year | R$ 9095107 | R$ 24615555 | R$ 6656162 |
Hedge accounting loss | (1,152) | ||
Actuarial gains (losses) | (9,795) | 105,515 | 30,253 |
Exchange losses on investment abroad | (16,372) | (110,098) | 163,770 |
Pre-tax comprehensive income | (9,122,426) | 24,610,972 | (6,462,139) |
Effect of taxes on other comprehensive income: | |||
Actuarial loss | (35,875) | (10,371) | |
Total comprehensive income (loss) for the year | (9,122,426) | 24,575,097 | (6,472,510) |
Comprehensive income (loss) attributable to owners of the Company | (9,025,115) | 24,625,063 | (6,203,313) |
Comprehensive loss attributable to non-controlling interests | R$ 97311 | R$ 49966 | R$ 269197 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity / (Deficit) - BRL (R$) R$ in Thousands | Total | Share capital | Share issuance costs | Capital reserves | Treasury shares | Accumulated losses | Other comprehensive loss | Total controlling interest | Non-controlling interest |
Beginning balance at Dec. 31, 2017 | R$ 13512523 | R$ 21438374 | R$ 377429 | R$ 13242374 | R$ 5531092 | R$ 42335925 | R$ 242282 | R$ 13805980 | R$ 293457 |
Effects of the first-time adoption of IFRS 9 and 15 | 282,135 | 282,135 | 282,135 | ||||||
Beginning balance at Dec. 31, 2017 | (13,230,388) | 21,438,374 | (377,429) | 13,242,374 | (5,531,092) | (42,053,790) | (242,282) | (13,523,845) | 293,457 |
Capital increase | 11,613,980 | 10,600,097 | 1,013,883 | 11,613,980 | |||||
Delivery of treasury shares as per the JRP | (2,727,842) | 2,727,842 | |||||||
Share subscription warrants | 4,580 | 4,580 | 4,580 | ||||||
Profit (loss) for the year | 24,615,555 | 24,591,140 | 24,591,140 | 24,415 | |||||
Other comprehensive income/loss | (107,916) | (67,458) | 33,923 | (33,535) | (74,381) | ||||
Ending balance at Dec. 31, 2018 | 22,895,811 | 32,038,471 | (377,429) | 11,532,995 | (2,803,250) | (17,530,108) | (208,359) | 22,652,320 | 243,491 |
Capital increase | 4,337,475 | 500,466 | 3,837,009 | 4,337,475 | |||||
Share issuance costs | (423,644) | (423,644) | (423,644) | ||||||
Share buyback | (2,572) | (2,572) | (2,572) | ||||||
Pharol Agreement | 111,862 | (2,462,799) | 2,772,507 | (197,846) | 111,862 | ||||
Profit (loss) for the year | (9,095,107) | (9,000,434) | (9,000,434) | (94,673) | |||||
Absorption of capital reserves | (9,000,434) | 9,000,434 | |||||||
Other comprehensive income/loss | (27,319) | (24,681) | (24,681) | (2,638) | |||||
Ending balance at Dec. 31, 2019 | R$ 17796506 | R$ 32538937 | R$ 801073 | R$ 3906771 | R$ 33315 | R$ 17727954 | R$ 233040 | R$ 17650326 | R$ 146180 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Profit (loss) before taxes | R$ 9087088 | R$ 21340608 | R$ 5557540 |
Non-cash items | |||
Loss (gain) on financial instruments | 3,606,618 | (2,043,357) | 5,120,203 |
Fair value adjustment to borrowings and financing | 527,465 | (13,928,659) | |
Present value adjustment to other liabilities | 59,214 | (1,167,043) | (4,873,000) |
Gain on the restructuring of third-party borrowings | (11,054,800) | ||
Transaction with derivative financial instruments | (55,025) | ||
Depreciation and amortization | 6,873,945 | 5,811,123 | 5,109,292 |
Onerous obligation | 1,230,820 | 4,883,620 | |
Expected credit losses on receivables | 489,396 | 851,271 | 784,403 |
Impairment losses (reversal) | 2,111,022 | 291,758 | (4,747,141) |
Provisions/(reversals) | 216,438 | 93,026 | 7,362,304 |
Earnings of equity investees | 5,174 | 13,492 | 433 |
Loss on disposal of capital assets | 235,535 | 215,398 | 211,735 |
Concession Agreement Extension Fee – ANATEL | 359,465 | 68,333 | 88,658 |
Employee and management profit sharing | 260,207 | 237,253 | 298,789 |
Tax Recovery | (3,617,919) | ||
Monetary correction to provisions/(reversals) | 1,620,378 | 226,870 | 674,668 |
Monetary correction to tax refinancing program | 16,159 | 28,079 | 27,294 |
Other | (538,974) | (637,251) | 450,281 |
Adjustments to reconcile profit (loss) | 4,312,830 | 5,229,721 | 4,950,379 |
Changes in assets and liabilities | |||
Accounts receivable | (306,240) | (365,771) | (253,469) |
Inventories | (21,113) | (48,280) | 173,283 |
Taxes | 1,322,267 | 121,951 | 477,164 |
Investment and redemption of financial assets | 40,141 | (87,744) | 174,256 |
Trade payables | (678,046) | (860,900) | (374,003) |
Payroll, related taxes and benefits | (313,169) | (253,902) | (42,727) |
Licenses and concessions | (127,313) | ||
Provisions | (462,299) | (434,974) | (426,649) |
Changes in assets and liabilities held for sale | (29,829) | (257,643) | 701,416 |
Other assets and liabilities | (252,683) | 525,660 | (467,067) |
Changes in assets and liabilities | (828,284) | (1,661,603) | (37,796) |
Financial charges paid - debt | (926,910) | (19,215) | (1,412) |
Financial charges paid - other | (352) | (2,884) | (2,515) |
Income tax and social contribution paid - Company | (85,680) | (495,038) | (314,162) |
Income tax and social contribution paid - third parties | (159,966) | (188,445) | (192,736) |
Change in operating assets other | (1,172,908) | (705,582) | (510,825) |
Net cash generated by operating activities | 2,311,638 | 2,862,536 | 4,401,758 |
Cash flows from investing activities | |||
Capital expenditures | (7,425,513) | (5,246,241) | (4,344,238) |
Proceeds from the sale of investments, tangibles and intangibles | 106,097 | 22,276 | 5,016 |
Dividends received from investments abroad (Note 33) | 226,525 | ||
Judicial deposits | (477,010) | (775,953) | (425,563) |
Redemption of judicial deposits | 719,223 | 1,083,043 | 343,129 |
Net cash used in investing activities | (6,850,678) | (4,916,875) | (4,421,656) |
Cash flows from financing activities | |||
Repayment of principal of borrowings, financing, and derivatives | (11,824) | (161,884) | (659) |
Proceeds from derivative financial instrument transactions | 72,113 | ||
Capital increase | 4,000,000 | ||
Commitment to investors premium | (58,489) | ||
Payments of obligation for licenses and concessions | (1,491) | (104,449) | |
Payments of obligation for tax refinancing program | (151,862) | (265,495) | (226,776) |
Payment of dividends and interest on capital | (437) | (54) | (59,462) |
Payment of Leases | (1,611,273) | ||
Exercise of warrants | 4,580 | ||
Share buyback | (2,572) | (300,429) | |
Net cash used in financing activities | 2,235,656 | (424,344) | (691,775) |
Foreign exchange differences on cash equivalents | 1,328 | 11,105 | |
Cash flows for the year | (2,303,384) | (2,477,355) | (700,568) |
Cash and cash equivalents | |||
Closing balance | 2,081,945 | 4,385,329 | 6,862,684 |
Opening balance | 4,385,329 | 6,862,684 | 7,563,252 |
Changes in the year | (2,303,384) | (2,477,355) | (700,568) |
Non-cash transactions | |||
Acquisition of Property, Plant and Equipment and Intangible assets (incurring liabilities) | 490,395 | 1,034,475 | 1,451,068 |
Offset of judicial deposits against provision for contingencies | 395,143 | 845,088 | R$ 382071 |
Shares issued to backstop investors | 337,475 | ||
Settlement of payables for own shares | R$ 46680 | ||
Conversion of debt into shares | R$ 11613980 |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
GENERAL INFORMATION | 1. GENERAL INFORMATION Oi S.A. – under Judicial Reorganization (“Company” or “Oi”), is a Switched Fixed-line Telephony Services (“STFC”) concessionaire, operating since July 1998 in Region II of the General Concession Plan (“PGO”), which covers the Brazilian states of Acre, Rondônia, Mato Grosso, Mato Grosso do Sul, Tocantins, Goiás, Paraná, Santa Catarina and Rio Grande do Sul, and the Federal District, in the provision of STFC as a local and intraregional long-distance carrier. Since January 2004, the Company also provides domestic and international long-distance services in all Regions and local services outside Region II started to be provided in January 2005. These services are provided under concessions granted by Agência Nacional de Telecomunicações—ANATEL (National Telecommunications Agency), the regulator of the Brazilian telecommunications industry (“ANATEL” or “Agency”). The Company is headquartered in Brazil, in the city of Rio de Janeiro, at Rua do Lavradio, 71 – 2º andar. The Company also holds: (i) through its wholly-owned subsidiary Telemar Norte Leste S.A. – in Judicial Reorganization (“Telemar”) a concession to provide fixed telephone services in Region I and nationwide International Long-distance services; and (ii) through its indirect subsidiary Oi Móvel S.A. – in Judicial Reorganization (“Oi Móvel”) a license to provide mobile telephony services in Region I, II and III. In Africa, the Company provides fixed and mobile telecommunications services through own subsidiaries and the subsidiaries of Africatel Holdings B.V. (“Africatel”), and in Asia the Company provides fixed, mobile, and other telecommunications services basically related through its subsidiary Timor Telecom (Note 31). The Company is registered with the Brazilian Securities and Exchange Commission (“CVM”) and the U.S. Securities and Exchange Commission (“SEC”). Its shares are traded on B3 S.A. – Brasil, Stock Exchange, OTC (“B3”) and its American Depositary Receipts (“ADRs”) representing Oi common shares and preferred shares are traded on the New York Stock Exchange (“NYSE”). Concession agreements The local and nationwide STFC long-distance concession agreements entered into by the Company and its subsidiary Telemar with ANATEL are effective until December 31, 2025. These concession agreements provide for reviews on a five-year basis and in general have a higher degree of intervention in the management of the business than the licenses to provide private services. At the end of 2018, ANATEL published Public Hearing No. 51/2018 to address the revision of the Concession Agreements for the concession’s last five-year period (2021-2025). The contribution period to the Public Hearing ended on March 26, 2019, and the draft in being analyzed by ANATEL. It is worth noting that the recently enacted Law 13879/2019 creates the legal possibility to migrate from the public utility regime to the STFC provision under private law (still subject to regulation by ANATEL), as well as the possibility of successive renewals of the Concession over a 20-year On December 21, 2018, the Government enacted Decree 9619/2018, which repeals Decree 7512/2011 and approves a New PGMU (“PGMU IV”). The highlight of the New PGMU is the fact that the New PGMU introduces a significant reduction in the plant of payphones (“TUP”) currently in use. As a replacement for the payphones no longer required, the concessionaires are required to implement wireless fixed access systems supporting broadband connections in certain locations, the deadline of which is December 2023. With the approval of the Judicial Reorganization Plan (“PRJ” or “Plan”), ANATEL initiated some procedures aiming at monitoring the Company’s financial situation, as well as to assess its Company’s ability to discharge its obligations arising from the terms of the concession agreements. In March 2019, ANATEL decided, among other issues, to maintain the special monitoring of the provision of telecommunications services of the Oi Group companies in 2019 by imposing actions related to transparency, corporate governance, and corporate control, financial and operating performance, and asset and credit management, as informed in the Notice to the Market disclosed by the Company on May 8, 2019. On February 10, 2020, as reported in the Notice to the Market released by the Company, ANATEL’s Board of Directors concluded there was no longer the need for special monitoring based on the decision issued in May 2019 as it considers that the Company’s and its subsidiaries’ short-term liquidity risk has been extinguished and revoked the obligations previously imposed on the Oi Group companies. Judicial Reorganization On June 20, 2016, the Company – under Judicial Reorganization and its direct and indirect wholly owned subsidiaries Oi Móvel, Telemar, Copart 4 Participações S.A. – under Judicial Reorganization (“Copart 4), Copart 5 Participações S.A. – under Judicial Reorganization (“Copart 5”, merged, see Nota 32), Portugal Telecom International Finance B.V.—under Judicial Reorganization, and Oi Brasil Holdings Cooperatief U.A.—under Judicial Reorganization (“Oi Holanda”) (collectively with the Company, the “Oi Companies”) filed a petition for judicial reorganization with the Court of the State of Rio de Janeiro (“Judicial Reorganization Proceeding”). On December 19, 2017, after confirming that the required quorum of classes I, II, III, and IV creditors was in attendance, the General Creditors’ Meeting was held and the Oi Companies’ judicial reorganization plan (“Plan” or “PRJ”) was approved by a vast majority of creditors on December 20, 2017. On January 8, 2018, the judicial reorganization court (“Judicial Reorganization Court”) issued a decision that ratified the JRP and granted the judicial reorganization to the Oi Companies, which was published on February 5, 2018. On July 31, 2018, the restructuring of the Oi Companies’ financial debt was completed with the implementation of the applicable terms and conditions provided for in the JRP, including the completion of the first capital increase provided for in the JRP, Capital Increase – Claim Capitalization. On January 25, 2019 the Company completed the second capital increase provided for in the JRP (“Capital Increase—New Funds”), with the issue of 3,225,806,451 book-entry, registered common shares, without par value, including new common shares represented by ADSs, pursuant to the JRP and the subscription and commitment agreement entered into by the Company, its subsidiaries, and the Backstop Investors. Capital Increase – New Funds Exercise of Subscription Warrants and American Depositary Warrants (“ADWs”) On October 28, 2018, Oi commenced the issuance and delivery of all warrants and ADWs exercised by their holders. The process was completed on January 4, 2019. All warrants that were not exercised on or prior to January 2, 2019 have been cancelled. Preferential offer and completion of the Capital Increase – New Funds, pursuant to the commitment agreement terms As contemplated by Section 6 of the JRP, on November 13, 2018 the Company commenced a preemptive offering of common shares that was registered with the SEC under the Securities Act under which holders of common shares and preferred shares, including the ADS Depositary and The Bank of New York Mellon, as depositary of the Preferred ADS program, received transferable rights for each common share or preferred share held as of November 19, 2018, which refers to as subscription rights. The subscription rights expired on January 4, 2019. On January 16, 2019, the Company issued 1,530,457,356 common shares to holders of subscription rights that had exercised those subscription rights with respect to the initial common shares. On January 21, 2019, the Company issued 91,080,933 common shares to holders of subscription rights that had requested subscriptions for excess common shares. The proceeds of these subscriptions totaled R$2,011 million. On January 25, 2019, the Company issued 1,604,268,162 common shares, representing the total number of common shares that were offered in the preemptive offering less the total number of initial common shares and excess common shares, to the Backstop Investors in a private placement under the terms of the commitment agreement for the aggregate amount of R$1,989 million (“Share Balance”). Because of the subscription and payment of the Share Balance, the Company completed, on this date, the Capital Increase – New Funds, through the subscription and payment of all 3,225,806,451 New Common Shares issued as part of the Capital Increase – New Funds, representing a contribution of new funds for the Company totaling R$4.0 billion. In addition, under the terms of the commitment agreement, on that date the Company issued, as compensation for their commitments under the commitment agreement, 272,148,705 common shares in a private placement to the Backstop Investors and paid US$13 million to the Backstop Investors. As a result of the outcome of the subscription and payment of the Capital Increase – New Funds and the Commitment Shares, the Company’s share capital increased to R$32,538,937,370.00, represented by 5,954,205,001 shares, divided into 5,796,477,760 registered common shares and 157,727,241 registered preferred shares, without par value. Litigation discontinuation settlement between the Company and Pharol On February 8, 2019, in order to discontinue any disputes that might harm the implementation of the JRP, the Company disclosed a Material Fact Notice informing that its Board of Directors approved, in accordance with CVM Instruction 567/2015, the acquisition of 1,800,000 preferred shares issued by the Company to ensure the compliance of the commitment assumed by the Company to transfer its treasury shares to Bratel, wholly-owned subsidiary of Pharol SGPS, S.A., in the context of the settlement entered into, subject matter of the Material Fact Notice of January 8, 2019 (“Settlement”), in transactions conducted in B3’s OTC to deliver the treasury shares to Bratel, which would be made within four business days from the confirmation of the settlement by the Judicial Reorganization Court. On February 18, 2019, the Court issued a decision suspending conflict of jurisdiction injunction No. 157.099 during the period requested by the parties. On April 3, 2019, the Company disclosed a notice to the market to inform on the confirmation of the settlement, referred to above, because the fifteen-day In addition, several obligations and rights of the parties described in the Material Fact Notice released by Oi and the Communication released by Pharol, both on January 9, 2019, were fully clearly established. Default Payment Method provided for by Clause 4.3.6 of the Plan—Bondholders On May 20, 2019, in strict compliance with the decision issued under Chapter 15 that determined that the cancelation of the notes regulated by New York Law should take place on June 14, 2019, the Company announced that it started the procedure so that the holders of the notes (a) Portugal Telecom International Finance B.V.’s €500,000,000 in 4.375% notes maturing in 2017 (ISIN No.: XS0215828913); (b) Portugal Telecom International Finance B.V.’s €750,000,000 in 5.875% notes maturing in 2018 (ISIN No.: XS0843939918); (c) Portugal Telecom International Finance B.V.’s €750,000,000 in 5.00% notes maturing in 2019 (ISIN No.: XS0462994343); (d) Portugal Telecom International Finance B.V.’s €1,000,000,000 in 4.625% notes maturing in 2020 (ISIN No.: XS0927581842); (e) Portugal Telecom International Finance B.V.’s €500,000,000 in 4.5% notes maturing in 2025 (ISIN No.: XS0221854200); (f) Oi Brasil Holdings Coöperatief U.A.’s €600,000,000 in 5.625% notes maturing in 2021 (ISIN No.: XS1245245045); (g) Oi Brasil Holdings Coöperatief U.A.’s US$1,500,000,000 in 5.75% notes maturing in 2022 (ISIN No.: US10553MAD39); (h) Oi S.A.’s €750,000,000 in 5.125% notes maturing in 2017 (ISIN No.: XS0569301327); (i) Oi S.A.’s US$750,000,000 9.500% maturing in 2019 (ISIN No.: 87944LAD1); (j) Oi S.A.’s BRL1,100,000,000 in 9.75% maturing in 2016 (ISIN No. US10553MAC55); and (k) Oi S.A.’s US$1,000,000,000 in 5.500% maturing in 2020 (ISIN No. 144A: US87944LAE92) (the “Legacy Notes”) are able to support their claims to receive on a future date or on the Company’s payment dates pursuant to Clause 4.3.6 of the Plan. The procedure detailed above is not applicable for the holders of the 6.25% Notes issued by Portugal Telecom International Finance B.V. – in Judicial Reorganization maturing in 2016 (ISIN No.: PTPTCYOM0008). The Company will provide at the appropriate time the information on the procedure to register the beneficiaries of the Default Payment Method provided for by Clause 4.3.6 of the Plan with regard to such series. Prepetition Financing – Clause 5.3 of the Plan On December 23, 2019, the Company disclosed a Material Fact Notice informing that its subsidiary Oi Móvel entered into a 1 st sixty-six sixty-one The Issue was approved based on the provisions of Clause 5.3 of the Plan and is part of the context of prepetition financing, in the “Debtor in Possession Financing” (“DIP Financing”) modality. Subsequently to the Material Fact Notice disclosed on December 23, 2019, the Company disclosed a Notice to the Market on February 4, 2020 informing shareholders and the general market that the subscription and payment of the Oi Móvel Issue had been completed, described above, for private placement in the amount of R$2,500,000,000.00. Extension of the Judicial Reorganization On December 6, 2019, the Company released a Material Fact Notice informing that the Oi Companies filed a petition with the Judicial Reorganization Court requesting that the court oversight of the Oi Companies not to be terminated on February 4, 2020, the date when the Plan’s homologation completes two years. The non-termination two-year Notwithstanding the good progress of the Plan implementation, which has already concluded most of the steps provided for the proceeding, which were important for the Company’s recovery, said petition presents the Judicial Reorganization Court with circumstances related to the complexity inherent to the Judicial Reorganization Proceeding’s magnitude and to the reforms underway in the legal and regulatory environment, and which require actions still to be implemented within the scope of the Judicial Reorganization Proceeding. On February 28, 2020, the Company released a Material Fact Notice informing its shareholders and the general market that on February 28, 2020 the Oi Companies filed with the Judicial Reorganization Court a petition exposing its interest in submitting for deliberation to a new general creditors’ meeting (“New GCM”) an amendment to the Plan aimed at achieving greater operating and financial flexibility to continue its investment project and the compliance with its strategic transformation plan (“Strategic Plan”), both broadly disclosed to the market. In line with the foregoing, on March 6, 2020, the Company disclosed a Material Fact Notice informing that the Judicial Reorganization Court awarded a decision, on the same date, granting the Company’s request for a New General Creditors’ Meeting to deliberate on an amendment to the Plan, prescribing that: (i) the Oi Companies file with the court, within 180 days from the decision’s issue date, the draft amendment to the JRP; and (ii) the Trustee organize the New General Creditors’ Meeting, which shall be held within 60 days from the submission of the amendment proposal to the JRP. Accordingly, taking into consideration that the decision above was issued on March 11, 2020, the Company shall submit the amendment to the JRP to the court by September 8, 2020, with the New GCM expected to occur on November 6, 2020. The purpose of the amendment proposal to the JRP will be increasing the flexibility of the JRP by creating a more efficient corporate and operating structure, aiming at maximizing the Company’s value to the benefit of all its stakeholders. This initiative is fully aligned with the Strategic Plan, which is being transparently implemented. Company subsidiaries The table below shows the equity interests held in the capital of the Company’s subsidiaries: Companies related to the continuing operations Company Core business Home country Direct 2019 Indirect 2019 Direct 2018 Indirect 2018 Oi Holanda Raising funds in the international market The Netherlands 100% 100% Portugal Telecom Internacional Finance B.V Raising funds in the international market The Netherlands 100% 100% CVTEL, BV Investment management The Netherlands 100% 100% Carrigans Finance S.à.r.l. Investment management Luxembourg 100% 100% Rio Alto Gestão de Créditos e Participações S.A. (“Rio Alto”) Receivables portfolio management and interests in other entities Brazil 100% 100% Oi Serviços Financeiros S.A. (“Oi Serviços Financeiros”) Financial services Brazil 99.87% 0.13% 99.87% 0.13% Bryophyta SP Participações Ltda. Property investments Brazil 99.80% 0.20% 99.80% 0.20% Telemar Fixed telephony – Region I Brazil 100% 100% Oi Móvel Mobile telephony – Regions I, II, and III Brazil 100% 100% Paggo Empreendimentos S.A. Payment and credit systems Brazil 100% 100% Paggo Acquirer Gestão de Meios de Pagamentos Ltda. Payment and credit systems Brazil 100% 100% Paggo Administradora Ltda. (“Paggo Administradora”) Payment and credit systems Brazil 100% 100% Serede – Serviços de Rede S.A. (“Serede”) Network services Brazil 17.51% 82.49% 17.51% 82.49% Brasil Telecom Comunicação Multimídia Ltda. (“BrT Multimídia”) Data traffic Brazil 100% 100% Dommo Empreendimentos Imobiliários Ltda. Purchase and sale of real estate Brazil 100% 100% Brasil Telecom Call Center S.A. (“BrT Call Center”) Call center and telemarketing services Brazil 100% 100% BrT Card Serviços Financeiros Ltda. (“BrT Card”) Financial services Brazil 100% 100% Pointer Networks S.A. (“Pointer”) Wi-Fi Brazil 100% 100% Pointer Peru S.A.C Wi-Fi Peru 100% 100% VEX Venezuela C.A Wi-Fi Venezuela 100% 100% VEX USA Inc. Wi-Fi United States of America 100% 100% VEX Ukraine LLC Wi-Fi Ukraine 40% 40% PT Participações, SGPS, S.A. (“PT Participações”) Management of equity investments Portugal 100% 100% Oi Investimentos Internacionais S.A. (“Oi Investimentos”) Business consulting and management Portugal 100% 100% Africatel GmbH & Co.KG. Investment management Germany 100% 100% Africatel GmbH Investment management Germany 100% 100% Africatel Holdings, BV Investment management The Netherlands 86% 86% TPT—Telecomunicações Publicas de Timor, S.A. (“TPT”) Provision of telecommunications, Portugal 76.14% 76.14% Companies classified as assets held for sale Company Core business Home country Direct 2019 Indirect 2019 Direct 2018 Indirect 2018 PT Ventures, SGPS, S.A. Management of equity interests in the context of international investments Portugal 86% 86% Directel—Listas Telefónicas Internacionais, Lda. (“Directel”) Telephone directory publishing and operation of related databases, in international operations Portugal 86% 86% Directel Cabo Verde – Serviços de Comunicação, Lda. Telephone directory publishing and operation of related databases in Cape Verde Cape Verde 51.60% 51.60% Kenya Postel Directories, Ltd. Production, publishing and distribution of telephone directories and other publications Kenya 51.60% 51.60% Elta—Empresa de Listas Telefónicas de Angola, Lda. Telephone directory publishing Angola 47.30% 47.30% Timor Telecom, S.A. Telecommunications services concessionaire in Timor Timor 44% 44% CST – Companhia Santomense de Telecomunicações, S.A. R.L. Operation of fixed and mobile telecommunication public services in São Tomé and Principe São Tomé 43.86% 43.86% LTM—Listas Telefónicas de Moçambique, Lda. Management, publishing, operation and sale of telecommunications subscriber and classified ads directories Mozambique 43% 43% The equity interests in joint arrangements and interests in associates are measured using the equity method and are as follows: Company Core business Home country Direct 2019 Indirect 2019 Direct 2018 Indirect 2018 Companhia AIX de Participações (“AIX”) Data traffic Brazil 50% 50% Paggo Soluções e Meios de Pagamento S.A. (“Paggo Soluções”) Financial company Brazil 50% 50% Gamecorp S.A. (“Gamecorp”) Pay TV service, except programmers Brazil 29.90% 29.90% Hispamar Satélites S.A. (“Hispamar”) Satellite operation Brazil 19.04% 19.04% Going concern The financial statements for the year ended December 31, 2019, has been prepared assuming that the Company will continue as a going concern and in compliance with the legal requirements applicable to a judicial reorganization. The judicial reorganization is aimed at ensuring the continuation of the Oi Companies as going concerns. This continuity was strengthen with the approval of the JRP and, as a result, the borrowings and financing were novated and the related balances were recalculated under the terms and conditions of the JRP, including the Capital Increase with Claim Capitalization and the Capital Increase with New Funds. The continuity of the Company as a going concern is ultimately depending on the successful outcome of the judicial reorganization and the realization of other forecasts of the Oi Companies. The Company has been successfully discharging the obligations set forth in the judicial reorganization proceedings and even though there are no indications in this regard, we emphasize that these conditions and circumstances indicate, by their own nature, uncertainties that may affect the success of the judicial reorganization and possibly cast doubts as to the Oi Companies’ ability to continue as going concerns. As at December 31, 2019 and after the implementation of the JRP, total shareholders’ equity was R$17,796,506, loss for the year then ended was R$9,095,107, and working capital totaled R$6,157,364. As at December 31, 2018 and after the recognition of the effects of the JRP, total shareholders’ equity was R$22,895,811, profit for the year then ended was R$24,615,555, and working capital totaled R$10,624,025. Since December 2019, a novel strain of coronavirus (“COVID-19”) has spread throughout the world. On January 3 1 As of the date of this annual report, the Company has not been able to quantify any material impacts related to COVID-19 and it is too soon to accurately determine the extent of its medium- and long-term impacts on the global and Brazilian economic scenarios. However, as it is not possible yet to predict the duration and effects of this crisis, there is a risk of material impacts on operations and sales, particularly for the fiber-to-the-home network expansion. For more details see note 33 (d). Additionally the debt instruments with BNDES contain financial covenants that require to the Company to maintain five specified financial ratios, measured on a quarterly basis. Under these debt instruments, BNDES has the right to accelerate the debt if, at the date the financial covenants are tested, the Company is not in compliance with any two of these ratios. At December 31, 2019, the Company was in compliance with these financial covenants. As a result of the depreciation of the real subsequent to December 31, 2019, partially due to the COVID-19 pandemic and the public health measures adopted to combat the pandemic in Brazil and internationally, and the related effects on our U.S. dollar-denominated indebtedness and interest expenses, the Company believed that it was probable that as of March 31, 2020, the Company would not be in compliance with more than one of these financial ratios. In anticipation of these ratio breaches, on March 30, 2020 the Company obtained a waiver from BNDES. See Notes 3 and 20 for further information. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES The accounting policies detailed below have been consistently applied in the periods presented in these Consolidated Financial Statements by the Company, as well as its subsidiaries. (a) Reporting basis The financial statements have been prepared based on the historic cost, except for certain financial instruments measured at their fair values, as described in the accounting policies in item (b) of the accounting policies below. The preparation of financial statements requires the use of certain critical accounting estimates and the exercise of judgment by the Company’s management in the application of the Group’s accounting policies. Those areas that involve a higher degree of judgment or complexity or areas where assumptions and estimates are significant are disclosed in item (c) below. Consolidated Financial Statements The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) , and the pronouncements, guidelines and interpretations issued by the International Accounting Standards Board (IASB), effective on December 31, 2019, which are the same followed for the financial statements for the year ended December 31, 2018. The Company is presenting its financial statements under IFRS for SEC reporting purposes after several years of presenting them under accounting policies generally accepted in the United States of America (“U.S. GAAP”). The accounting differences between U.S. GAAP and IFRS and the reconciliation of these accounting polices and practices are presented in Note 34. Management asserts that all relevant information related to the financial statements, which corresponds to the information it uses while managing the Company, has been disclosed in this financial information. b) Significant accounting policies Consolidation criteria of subsidiaries by the full consolidation method Full consolidation was prepared in accordance with IFRS 10—Consolidated Financial Statements and incorporates the financial statements of the Company’s direct and indirect subsidiaries. The main consolidation procedures are as follows: • the balances of assets, liabilities, income and expenses are consolidated, according to their accounting nature; • intragroup assets and liabilities and material revenue and expenses are eliminated; • investments and related interests in the equity of subsidiaries are eliminated; • non-controlling • exclusive investment funds (Note 8) are consolidated; The assets and liabilities related to the operations in Africa are consolidated and stated in a single line item of the balance sheet as held-for-sale operati o s Functional and presentation currency The Company and its subsidiaries operate mainly as telecommunications industry operators in Brazil, Africa, and Asia, and engage in activities typical of this industry. The items included in the financial statements of each group company are measured using the currency of the main economic environment where it operates (“functional currency”). The individual and consolidated financial statements are presented in Brazilian reais (R$), which is the Company’s functional and presentation currency. Transactions and balances Foreign currency-denominated transactions are translated into the functional currency using the exchange rates prevailing on the transaction dates. Foreign exchange gains and losses arising on the settlement of the transaction and the translation at the exchange rates prevailing at yearend, related foreign currency-denominated monetary assets and liabilities are recognized in the income statement, except when qualified as hedge accounting and, therefore, deferred in equity as cash flow hedges. Group companies with a different functional currency The profit or loss and the financial position of all Group entities, none of which uses a currency from a hyperinflationary economy, whose functional currency is different from the presentation currency are translated into the presentation currency as follows: • assets and liabilities are translating at the rate prevailing at the end of the reporting period; • revenue and expenses disclosed in the statement of profit or loss are translated using the average exchange rate; • all the resulting foreign exchange differences are recognized as a separate component of equity in other comprehensive income; and • goodwill and fair value adjustments, arising from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rate. As at December 31, 2019 and 2018, the foreign currency-denominated assets and liabilities were translated into Brazilian reais using mainly the following foreign exchange rates: Closing rate Average rate Currency 2019 2018 2019 2018 Euro 4.5305 4.4390 4.4159 4.3094 US dollar 4.0307 3.8748 3.9461 3.6558 Cape Verdean escudo 0.0411 0.0403 0.0401 0.0391 Sao Tomean dobra 0.000192 0.000185 0.000188 0.000177 Kenyan shilling 0.0398 0.0381 0.0387 0.0361 Namibian dollar 0.2878 0.2698 0.2732 0.2764 Mozambican metical 0.0631 0.0627 0.0627 0.0601 Angolan kwanza 0.0084 0.0126 0.0111 0.0147 Segment reporting The information about operating segments is presented consistently with the internal report provided to the Company’s main decision-making body, its Board of Directors. Management monitors and tracks performance of each of the Company’s services offerings based on the revenues of those services and the results of operations are reviewed on a consolidated basis with regard to the resources to be allocated to assess their performance and for strategic decision-making (Note 28). Business combinations The Company uses the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred, and the equity instruments issued. The consideration transferred includes the fair value of assets and liabilities resulting from a contingent consideration contract, where applicable. The identifiable assets acquired and the liabilities and contingent liabilities assumed in a business combination are measured initially measured as their fair values at the date of acquisition. The Company depreciates amounts recognized based on the appreciation of the acquired assets, according to the useful lives of the underlying assets, and tests such assets to determine any asset impairment losses when there is evidence of impairment; on the other hand, the Company tests for impairment amounts based on future profitability (goodwill) on an annual basis. Cash and cash equivalents Comprise cash and imprest cash fund, banks, and highly liquid short-term investments (usually maturing within less than three months), immediately convertible into a known cash amount, and subject to an immaterial risk of change in value, which are stated at fair value at the end of the reporting period and which do not exceed their market value, and whose classification is determined as shown below (Note 8). Financial assets Financial assets are classified according to their purpose into: (i) amortized cost; (ii) fair value through other comprehensive income; and (iii) fair value through profit or loss. The Company classifies its financial assets into the following measurement categories: (1) assets measured at amortized cost—i.e., financial assets that meet the following conditions: (i) the business model under which financial assets are held to obtain contractual cash flows; and (ii) the contractual terms of the financial asset generate, on specified dates, cash flows that are only payments of principal and interest on the outstanding principal (accounts receivables, loans and cash equivalents). Amortized cost is written down by impairment losses; (2) financial assets at fair value through other comprehensive income. Interest income is calculated using the effective interest method, foreign exchange gains and losses, and impairment are recognized in profit or loss. Other net earnings (losses) are recognized in other comprehensive income. Upon derecognition, accumulated losses in other comprehensive income are reclassified to profit or loss; and (3) financial assets at fair value through profit or loss. Net earnings (losses), including interest, are recognized directly in profit or loss. Accounts receivable Accounts receivable from telecommunications services provided are stated at the tariff or service amount on the date they are provided and do not differ from their fair values. These receivables also include receivables from services provided and not billed by the end of the reporting period and receivables related to handset, SIM cards, and accessories. The loss allowance for trade receivables is measured at an amount equal to the life-time expected credit losses as allowed for by IFRS 9 (Note 9). Non-current Non-current A discontinuing operation is a component of an entity or a business unit that can be clearly distinguished operationally from the rest of the Company. The classification of a discontinuing operation is made when the operation is sold or meets the criteria to be classified as held for sale (Note 31). Property, plant and equipment Property, plant and equipment are stated at cost of purchase or construction, less accumulated depreciation. Historical costs include expenses directly attributable to the acquisition of assets. They also include certain costs on facilities, when it is probable that the future economic benefits related to such costs will flow into the Company, and asset dismantlement, removal and restoration costs. The borrowings and financing costs directly attributable to the purchase, construction or production of a qualifying asset are capitalized in the initial cost of such asset. Qualifying assets are those that necessarily require a significant time to be ready for use. Subsequent costs are added to the carrying amount as appropriate, when, and only when, these assets generate future economic benefits and can be reliably measured. The residual balance of the replaced asset is derecognized. Maintenance and repair costs are recorded in profit or loss for the period when they are incurred, and they are capitalized when, and only when, they clearly represent an increase in installed capacity or the useful lives of assets. Assets under finance leases are recorded in property, plant and equipment at the lower of fair value or the present value of the minimum lease payments, from the initial date of the agreement. Depreciation is calculated on a straight-line basis, based on the estimated useful lives of the assets, which are annually reviewed by the Company (Note 16). Intangible assets Acquired intangible assets with finite useful lives are recognized at cost, less amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over the asset’s estimated useful life. The estimated useful life and method of amortization are reviewed at the end of each annual reporting period, and the effect of any changes in estimates is accounted for on a prospective basis. Intangible assets with indefinite useful lives are carried at cost less accumulated impairment losses. Software licenses purchased are capitalized based on the costs incurred to purchase the software and make it ready for use. Software maintenance costs are expensed as incurred. Regulatory licenses related to the merged capital gains are amortized over the STFC concession period. The other regulatory licenses for the operation of the mobile telephony services are recognized at cost of acquisition and amortized over the effective period of the related licenses (Note 17). Impairment of non-financial asset Assets are tested for impairment whenever events or changes in circumstances indicate that their carrying amounts might be impaired. Impairment losses, if any, are recognized in the amount by which the carrying amount of an asset exceeds its recoverable value. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used. For impairment test purposes, assets are grouped into the smallest identifiable group for which there is a cash-generating unit (CGU), which is identified pursuant to the operating segment (Note 28). For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company makes an estimate of recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit or loss. The following criteria are also applied in assessing impairment of specific assets. These calculations required the use of judgments and assumptions that may be influenced by different external and internal factors, such as economic trends, industry trends and interest rates, changes in business strategies, and changes in the type of services and products provided by the Company to the market. The use of different assumptions can significantly change the financial information. In July 2019, the Company disclosed its Strategic Plan, focused on improving operating and financial performance, using a sustainable business model that aims at maximizing the Company’s value in the context of judicial reorganization. Based on the Strategic Plan, the Company conducted an impairment test of its long-lived assets and identified an impairment loss of R$2,111 million driven basically by the following: (i) revision of said plan; and (ii) increased market competitiveness, mainly in the residential market, intensifying the drop in the revenues from fixed telephony and DTH services. The Company used the cash flow forecasts described in the Strategic Plan. These forecasts cover a ten-year ( Pursuant to IAS 36, an impairment loss is to be allocated to write down the carrying amount of the cash generating unit’s assets, which is allocated to the regulatory licenses (Notes 5 and 17). Adjustment to present value The Company measures its financial assets and financial liabilities to identify instances of applicability of the discount to present value which represents one of the appropriate method to calculate the fair value for some assets and liabilities transactions. For recognition purposes, the measurement of an asset/liability to present value is calculated taking into consideration the contractual cash flows and stated interest rates, and the interest rate of liabilities in certain cases. Generally, when applicable, the discount rate used is the average return rate on investments for financial assets or interest charged on Company borrowings for financial liabilities. The balancing item is the asset or liability that has originated the financial instrument, when applicable, and the deemed borrowing costs are allocated to the Company’s profits over the transaction term. Under the terms and conditions of the JRP, certain balances of debt, trade payables and contingencies involving ANATEL (Note 18) were adjusted to fair value on the date of the novation of prepetition liabilities, pursuant to the requirements of IFRS 9, equivalent to the present value at the time, calculated based on an internal valuation that took into consideration the cash flows of these liabilities and assumptions related to the discount rates, consistent with the maturity and currency of each financial liability. The present value of the lease agreements is measured by discounting fixed future payment flows, which do not take into account projected inflation, using the incremental interest rate, according to market conditions, and is estimated using the Company-specific risk spread. Additionally, assets acquired under lease agreements, as well as unrecognized revenue generated by the assignment of communication towers are adjusted to present value. Impairment of financial assets For financial assets measured at amortized cost, the Company assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or group of financial assets is considered impaired when there is objective evidence, as a result of one or more events that occurred after the initial recognition of the asset, and that loss event had an impact on the estimated future cash flows of that asset that can be estimated reliably. In the case of equity investments classified as available for sale, a significant or prolonged decline in their fair value below cost is also objective evidence of impairment. Borrowings and financing Borrowings and financing are stated at amortized cost, plus monetary correction On the restructuring/novation date of financial liabilities subject to judicial reorganization, the Company recognized loan borrowing and financing commitments at fair value pursuant to the requirements of IFRS 9. The fair value at the restructuring date of each financial liability was calculated based on an internal valuation that took into consideration the cash flows from these liabilities and assumptions related to the discount rates, consistent with the maturity and the currency of each financial liability. Transaction costs incurred are measured at amortized cost and recognized in liabilities, as a reduction to the balance of borrowings and financing, and are expensed over the relevant agreement term. Leases The Company recognizes a right-to-use right-to-use Financial liabilities and equity instruments Debt or equity instruments issued the Company and its subsidiaries are classified as financial liabilities or equity instruments, according to the contractual substance of the transaction. Provisions The amount recognized as provision is the best estimate of the disbursement required to settle the present obligation at the end of the reporting period, based on the opinion of the management and its in-house For measuring the amount of the provisions to be recognized, the Company basically adopts two methodologies: (i) the statistical measurement model and (ii) the individual measurement model. In order to choose the methodology to be used, the Company takes into consideration, among other criteria, the number of lawsuits, the lawsuit amount, the estimated amount of a possible payment, and the nature of the lawsuit. The statistical measurement model is usually used in situations where there are (i) a significant volume of administrative or judicial proceedings with similar nature; (ii) individually the proceedings have a low amounts; and (iii) it is possible to determine a statistical model based on historic information about the rates of unfavorable sentences, the amount of the payments, and the changes in the number of proceedings. Usually in this model the Company uses the calculation of the expected amount, as prescribed by paragraph 39 of IAS 37, and requests opinions from outside specialists to assess the likelihood of a loss. The main contingencies measured under this model are labor and civil (PEX and small claims) lawsuits. The individual measurement model is usually used in situations where (i) the proceeding involves a high amount; (ii) it is reasonably possible to make an individual assessment of likelihood that a disbursement will be required; and (iii) there is no similarity in the nature of the proceedings. In this model the Company uses opinions from outside specialists in the involved areas to assess the likelihood of a loss. The main contingencies measured under this model are tax and strategic civil proceedings. The increase in the obligation as a result of the passage of time is recognized as financial expenses. Onerous obligation The Company recognizes a present obligation when events render the contracting of services onerous. A contract becomes onerous when: (i) the obligations under the contract exceed the economic benefits expected to be received over the contract period; and (ii) the costs are unavoidable. The Company measures the onerous obligation according to the lower net cost of fulfilling the contract, which is determined based on the lower of: (i) the cost of fulfilling the contract or (ii) the cost of any compensation or penalties derived from the noncompliance of the contract. The base assumptions used to calculate the onerous obligation must be periodically reviewed and measured whenever there are significant changes of these assumptions. Employee benefits Pension plans: private pension plans and other postretirement benefits sponsored by the Company and its subsidiaries for the benefit of their employees are managed by two foundations. Contributions are determined based on actuarial calculations, when applicable, and charged to profit or loss on the accrual basis (Note 27). The Company and its subsidiaries have defined benefit and defined contribution plans. In the defined contribution plan, the sponsor makes fixed contributions to a fund managed by a separate entity. The contributions are recognized as employee benefit expenses as incurred. The sponsor does not have the legal or constructive obligation of making additional contributions, in the event the fund lacks sufficient assets to pay all employees the benefits related to the services provided in the current year and prior years. The defined benefit is annually calculated by independent actuaries, who use the projected unit credit method. The present value of the defined benefit is determined by discounting the estimated future cash outflows, using the projected inflation rate plus long-term interest. The obligation recognized in the balance sheet as regards the defined benefit pension plans presenting a deficit, corresponds to the present value of the benefits defined at the balance sheet date, less the fair value of the plan’s assets. The actuarial gains and losses resulting from the changes in the actuarial valuations of the pension plans, whose actuarial obligations or actuarial assets are recorded by the Company, are fully recognized in other comprehensive income, in equity (Note 26). The asset recognized in balance sheet corresponds to the present value of available economic benefits, consisting of refunds or reductions in future contributions to the plan. Employee profit sharing: the provision for the employee profit sharing plan is accounted on an accrual basis, which is paid by April of the year following the recognition of the provision, takes into consideration a set of operating and financial goals approved with the employees’ labor union, under a specific collective labor agreement. This cost is recognized annually in personnel expenses. Revenue recognition Revenues correspond basically to the amount of the payments received or receivable from sales of services in the regular course of the Company’s and its subsidiaries’ activities. Revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company applied the judgments that significantly affect the determined amount and the recognition timing of the revenue from a contract with a customer, taking into account the five-step recognition model: (i) identify the contract; (ii) identify the separate performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations; and (v) recognition da revenue when (or as) the entity satisfies a performance obligation. Residential Services are composed, basically, of local and long-distance fixed-line voice services, broadband services and Pay-TV. Local and long distance calls are charged based on time measurement according to the legislation in effect. Both of the services are recognized as revenue when the services are provided. Personal Mobility Services are composed of mobile telephony services, interconnection and handsets, SIM cards and other accessories. Post-paid plan is recognized as revenue when service is provided. Prepaid service is first recognized as unearned revenues and recognition occurs by customer’s usage. Interconnection service is provided upon request of any other telecommunication collective service provider and are charged according to the General Rules on Interconnection (Regulamento Geral de Interconexão), established by ANATEL, and recognized as revenue when the service is provided. Sales of handsets and accessories are recognized when these items are delivered and accepted by the customers. SMEs/Corporate Services are composed, basically, of fixed-line and mobile voice, data telecommunications services, broadband services and Pay-TV services, recognized as revenue when the services are provided. Products and services are sold separately or bundled packages. Revenues involving multiple elements are recognized when each performance obligation is identified and the applicable criteria is applied. Initial installation rates are not separately identifiable performance obligations and are recognized in the revenue pursuant to the period the services are used by the customers. Revenue arising from the receipt of trade receivables that had already been written off as losses but were subsequently recovered and received in the collection process, are recognized in profit or loss, in line item ‘Other operating income’. Variable consideration is estimated at contract inception and constrained to revenue recognition until it is highly probable that a significant revenue reversal will not occur (Notes 4 and 5). Expense recognition Expenses are recognized on the accrual basis, considering their relation with revenue realization. Prepaid expenses attributable to future years are deferred over the related periods. The incremental costs to obtain a contract with a customer (contract compliance costs), consisting basically of sales commissions, are recognized in profit or loss on a systematic basis, consistent with the transfer of goods and services to the customers (Note 13). Financial income and expenses Financial income is recognized on an accrual basis and comprises interest on receivables settled after the due date, gains on short-term investments and gains on derivative instruments. Financial expenses consist primarily of interest effectively incurred, adjustments to present value, and other charges on borrowings, financing, and financial derivative contracts. They also include banking fees and costs, financial intermediation costs on the collection of trade receivables, and other financial transactions (Notes 5 and 6). Current and deferred income tax and social contribution Income tax and social contribution are recorded on an accrual basis. Taxes attributed to temporary differences and tax loss carryforwards are recorded in assets or liabilities, as applicable, only under the assumption of future realization or payment. The Company prepares technical studies that consider the future generation of taxable income, based on management expectations, considering the continuity of the companies as going concerns. The Company writes down the carrying amount of deferred tax assets to the extent it is no longer probable that sufficient taxable income will be available to allow the utilization of all or part of the deferred tax assets. Any write-down of deferred tax assets is reversed when it is probable that sufficient taxable income will be available. The technical studies are updated annually, approved by the Board of Directors and reviewed by the Supervisory Board, and the tax credits are adjusted based on the results of these reviews. Deferred tax assets and liabilities are measured using the tax rates applicable for the period in which the liability is expected to be settled or the asset is expected to be realized, based on the tax rates set forth in the tax law prevailing at the end of each reporting period, or when new legislation has been substantially enacted. The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of each reporting period, to recover or settle the carrying amount of these assets and liabilities (Note 7). Earnings per share Basic earnings per share are calculated through profit or loss for the year attributable to the owners of the Company, divided by the weighted average number of common and preferred shares outstanding in the year. Diluted earnings per share are calculated using said weighted average number of outstanding shares adjusted by potentially dilutive instruments convertible into shares in the reporting years, pursuant to IAS 33. (Note 26 (f).) (c) Estimates and critical accounting judgments The Company’s management uses estimates and assumptions based on historical experience and other factors, including expected future events, which are considered reasonable and relevant, and also requires judgments related to these matters. Actual results of operations and the financial position may differ from these estimates. The estimates that represent a significant risk of causing material adjustments to the carrying amounts of assets and liabilities are as follows: Revenue recognition and accounts receivables The Company’s revenue recognition policy is significant as it is a material component of operating results. Determining the amount and the timing of revenue recognition by Management, collection ability, and the rights to receive certain network usage revenue is based on judgment related to the nature of the tariff collected for the services provided, the price of certain products, and the right to collect this revenue. If changes in conditions cause management to conclude that such criteria are not met in certain operations, the amount of trade receivables might be affected. In addition, the Company depends on guidelines to measure certain revenue set by ANATEL (Brazilian telecommunications industry regulator). Expected credit losses on trade receivables The expected credit losses on trade receivables are determined to recognize probable losses on accounts receivable taking into account the measures implemented to restrict the provision of services to and collect late payments from defaulting customers. The estimate of expected credit loss on trade receivables is recognized in an amount considered sufficient to cover possible losses on the realization of these receivables and is prepared based on historical default rates and projections of future conditions that impact collections. There are cases of agreements with certain customers to collect past-due Depreciation and amortization of assets with finite useful lives Property, plant and equipment items and intangible assets with finite useful lives are depreciated and amortized, respectively, on a straight-line basis, over the useful lives of the related asset. The depreciation and amortization rates of the most significant assets are shown in Notes 16 and 17, respectively. The useful lives of certain assets may vary as they are used in the fixed-line or mobile telephony segments. The Company reviews the useful lives of assets annually. Impairment of long-lived assets The recoverable amounts of long-lived assets are determined by comparing the calculations of their value in use and their sales prices. These calculations required the use of judgments and assumptions that may be influenced by different external and internal factors, such as economic trends, industry trends and interest rates, changes in business strategies, and changes in the type of services and products sold by the Company to the market. The use of different assumptions may significantly change our financial statements. For impairment assessment purposes of the Cash-generating Unit (CGU), the Company defined the value in use of its assets. In measuring the value in use, the Company based its cash flow projections according to th |
FINANCIAL INSTRUMENTS AND RISK
FINANCIAL INSTRUMENTS AND RISK ANALYSIS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of financial assets [abstract] | |
FINANCIAL INSTRUMENTS AND RISK ANALYSIS | 3. FINANCIAL INSTRUMENTS AND RISK ANALYSIS 3.1. Fair value measurement IFRS 13 defines fair value as the price for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties, in an arm’s length transaction on measurement date. The standard clarifies that the fair value must be based on the assumptions that market participants would consider in pricing an asset or a liability, and establishes a hierarchy that prioritizes the information used to build such assumptions. The fair value measurement hierarchy attaches more importance to available market inputs (i.e., observable data) and a less weight to inputs based on data without transparency (i.e., unobservable data). Additionally, the standard requires that an entity consider all nonperformance risk aspects, including the entity’s credit, when measuring the fair value of a liability. IFRS 7 establishes a three-level hierarchy to measure and disclose fair value. The classification of an instrument in the fair value measurement hierarchy is based on the lowest level of input significant for its measurement. We present below a description of the three-level hierarchy: Level 1—inputs consist of prices quoted (unadjusted) in active markets for identical assets or liabilities to which the entity has access on measurement date; Level 2—inputs are different from prices quoted in active markets used in Level 1 and consist of directly or indirectly observable inputs for the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in markets that are not active; or inputs that are observable for the asset or liability or that can support the observed market inputs by correlation or otherwise for substantially the entire asset or liability. Level 3—inputs used to measure an asset or liability are not based on observable market variables. These inputs represent management’s best estimates and are generally measured using pricing models, discounted cash flows, or similar methodologies that require significant judgment or estimate. The Company and its subsidiaries have measured their financial assets and financial liabilities at their market or actual realizable values (fair value) using available market inputs and valuation techniques appropriate for each situation. The interpretation of market inputs for the selection of such techniques requires considerable judgment and the preparation of estimates to obtain an amount considered appropriate for each situation. Accordingly, the estimates presented may not necessarily be indicative of the amounts that could be obtained in an active market. The use of different assumptions for the calculation of the fair value may have a material impact on the amounts obtained. As a result of the implementation of the measures approved on the Plan ratified on January 8, 2018 and the related accounting recognition in calendar year 2018, some financial liabilities classified at amortized cost were remeasured at their fair values as at the date of the novation of these financial liabilities and recognized at amortized cost in the subsequent measurement, pursuant to the accounting guidance of IFRS 9. The carrying amounts and the estimated fair values of our main financial assets and financial liabilities as at December 31, 2019 and 2018 are summarized as follows: Assets Accounting 2019 2018 Carrying Fair value Carrying Fair value Cash and banks Fair value 575,863 575,863 287,491 287,491 Cash equivalents Fair value 1,506,082 1,506,082 4,097,838 4,097,838 Cash investments Fair value 217,792 217,792 238,962 238,962 Accounts receivable (i) Amortized cost 6,334,526 6,334,526 6,516,555 6,516,555 Dividends and interest on capital Amortized cost 426 426 Financial asset at fair value Fair value 40,689 40,689 Held-for-sale Held-for-sale Fair value 1,474,699 1,474,699 1,843,778 1,843,778 Dividends receivable (Note 31) Amortized cost 2,435,014 2,435,014 2,566,935 2,566,935 Liabilities Trade payables (i) Amortized cost 8,887,367 8,887,367 8,818,870 8,818,870 Derivative financial instruments Fair value 1,152 1,152 Borrowings and financing (ii) Borrowings and financing Amortized cost 8,354,777 8,354,777 7,140,960 7,140,960 Public debentures Amortized cost 3,652,353 3,652,353 3,103,106 3,103,106 Senior Notes Amortized cost 6,219,619 6,565,782 6,205,840 6,937,764 Dividends and interest on capital Amortized cost 5,731 5,731 6,168 6,168 Licenses and concessions payable (iii) Amortized cost 58,582 58,582 85,619 85,619 Tax refinancing program (iii) Amortized cost 417,503 417,503 553,206 553,206 Leases payable (iv) Amortized cost 8,150,026 8,150,026 For the closing of the year ended December 31, 2019: (i) The balances of accounts receivables have near terms and, therefore, they are not adjusted to fair value. The balances of trade receivables, subject to the judicial reorganization, were adjusted to their fair value, at the date of the novation of the liabilities and are represented by the amounts that are expected that the obligations are discharged (Note 18). (ii) The balance of the borrowings and financing with the BNDES, Local Banks, and ECAs correspond to exclusive markets, and the fair value of these instruments is similar to their carrying amounts. The balances of borrowings and financing refers to the bonds issued in the international market, for which is there is a secondary market, and their fair values differ from their carrying amounts. (iii) The licenses and concessions payable and the tax refinancing program are stated at the amounts that these obligations are expected to be discharged and are not adjusted to fair value. (iv) The leases payable are represented by the amounts that the obligations are expected to be settled, adjusted at present value. The levels of the financial assets, cash and cash equivalents and cash investments, held-for-sale Fair value Fair value 2019 2018 Assets Cash and banks Level 1 575,863 287,491 Cash equivalents Level 1 1,506,082 4,097,838 Cash investments Level 1 217,792 238,962 Held-for-sale Level 3 1,474,699 1,843,778 Liabilities Derivative financial instruments Level 2 1,152 There were no transfers between levels in the years ended December 31, 2019 and 2018. The Company and its subsidiaries have measured their financial assets and financial liabilities at their market or actual realizable values (fair value) using available market inputs and valuation techniques appropriate for each situation, as follows: (a) Cash, cash equivalents and cash investments Foreign currency-denominated cash equivalents and cash investments are basically kept in checking deposits denominated in euro and US dollars and, to a lesser extent, in euros. The fair value of securities traded in active markets is equivalent to the amount of the last closing quotation available at the end of the year, multiplied by the number of outstanding securities. For the remaining contracts, the Company carries out an analysis comparing the current contractual terms and conditions with the terms and conditions effective for the contract when they were originated. When terms and conditions are dissimilar, fair value is calculated by discounting future cash flows at the market rates prevailing at the end of the year, and when similar, fair value is similar to the carrying amount on the reporting date. (b) Held-for-sale Represents the indirect interest held by PT Ventures in the dividends receivable and the fair value of the financial investment in Unitel, both classified as held for sale. The assets from the investment held in PT Ventures are measure d (c) Derivative financial instruments The Company conducts derivative transactions to manage certain market risks, mainly the foreign exchange risk. At the closing date of for the year ended December 31, 2019, these instruments include Non-deliverable The method used to calculate the fair value of the derivative instruments contracted throughout the year was the future cash flows method associated to each contracted instrument, discounted using the market rates prevailing at the reporting date. 3.2. Financial risk management The Company’s and its subsidiaries’ activities expose them to several financial risks, such as: market risk (including currency fluctuation risk, interest rate risk on fair value, interest rate risk on cash flows), credit risk, and liquidity risk. According to their nature, financial instruments may involve known or unknown risks, and it is important to assess to the best judgment the potential of these risks. The Company and its subsidiaries may use derivative financial instruments to mitigate certain exposures to these risks. The Company’s risk management process is a three-step process, taking into account its consolidated structure: strategic, tactical, and operational. At the strategic level, the Company’s executive committee agrees with the Board of Directors the risk guidelines to be followed. A Financial Risk Management Committee is responsible for overseeing and ensuring that Oi comply with the existing policies. At the operating level, risk management is carried out by the Company’s treasury officer, in accordance with the policies approved by the Board of Directors. The Financial Risk Management Committee meets on a monthly basis and currently consists of the Chief Finance Officer, the Regulation, Wholesale and International Affairs Officer, the Legal Tax Officer, the Chief Controller, the Investor Relations Officer, and the Treasury Officer. The Hedging and Cash Investments Policies, approved by the Board of Directors, document the management of exposures to market risk factors generated by the financial transactions of the Oi Group companies. In the aftermath of the approval of the JRP, based on the measured new risk factors, the Company approved with the Board of Directors a new strategy to the Board of Directors to mitigate the risks arising on the foreign exchange exposure of its financial liabilities, as is ready to implement it as from this point in time. In line with the Hedging Policy pillars, the strategy is focused on the preservation of the Company’s cash flows, maintaining its liquidity, and complying with the financial covenants. 3.2.1. Market risk (a) Foreign exchange risk Financial assets The Company is not exposed to any material foreign exchange risk involving foreign currency-denominated financial assets as at December 31, 2019, except with regard to the assets held for sale, for which the Company does not enter into any currency hedging transaction. Financial liabilities The Company and its subsidiaries have foreign currency-denominated or foreign currency-indexed borrowings and financing. The risk associated with these liabilities is related to the possibility of fluctuations in foreign exchange rates that could increase the balance of such liabilities. The Company’s and its subsidiaries’ borrowings and financing exposed to this risk represent approximately 52.3% of total liabilities from borrowings and financing (2018 – 53.6%), less the contracted currency hedging transactions. To minimize this type of risk, the Company entered into currency hedges with financial institutions for part of the foreign currency-denominated interest payments made in 2019. The Company hedged 67% of its total dollar-denominated debt service in 2019 through hedging transactions in the form of currency forwards and foreign currency-denominated cash investments. At the end of December 2019, approximately 32% of the US dollar-denominated debt for 2020 was hedged by cash in US dollars (natural hedge). Additionally, the Company hedged part of the Company’s US dollar-denominated operating expenses. The currency hedging percentage for purposes of covenant compliance and the financial expenses of the existing borrowings and financing, including the impacts of changes in foreign exchange rates on the fair value adjustment gain, is 50.1%. Foreign currency-denominated financial assets and financial liabilities are presented in the balance sheet as follows: 2019 2018 Carrying Fair value Carrying Fair value Financial assets Cash and banks 400,874 400,874 70,116 70,116 Cash equivalents 1,096 1,096 154,514 154,514 Held-for-sale Held-for-sale 1,474,699 1,474,699 1,843,778 1,843,778 Dividends receivable 2,435,014 2,435,014 2,566,935 2,566,935 Financial liabilities Borrowings and financing (Note 20) 9,521,291 9,521,291 8,816,766 9,548,690 Derivative financial instruments 1,152 1,152 The amounts of the derivative financial instruments are summarized as follows: Derivatives designated for hedge accounting Notional (US$) Maturity (years) Fair value Amounts 2019 USD/R$ Non-deliverable 17,000.00 < 1 year (1,152 ) At yearend, the main hedging transactions conducted with financial institutions with the objective minimizing the foreign exchange risk co cambial are as follows: Non-deliverable US$/R$: Refer to future dollar purchase transactions using NDFs to hedge against the depreciation of the Brazilian real against the US dollar. The key strategy for these contracts is to eliminate foreign exchange differences during the contract period, mitigating unfavorable changes in foreign exchange rates on dollar-denominated debts or operating expenses. As at December 31, 2019, the Company recognized as result of derivative transactions the amounts shown below: 2019 Forward currency transaction – financial results 55,025 Forward currency transaction – operating results 17,088 Total 72,113 The Table of movements in hedge accounting effects in other comprehensive income Balance at 1 2/31/ Results of designated hedges 11,901 Amortization of hedges to profit or loss (13,053 ) Balance at 12/31/ (1,152 ) Foreign exchange risk sensitivity analysis As at December 31, 2019, management estimated the depreciation scenarios of the Brazilian real in relation to other currencies, at the end of the reporting period. T Rate Description 2019 Depreciation Probable scenario U.S. dollar 4.0307 0% Euro 4.5305 0% Possible scenario U.S. dollar 5.0384 25% Euro 5.6631 25% Remote scenario U.S. dollar 6.0461 50% Euro 6.7958 50% The impacts of foreign exchange exposure on the foreign currency-denominated debt, considering offshore derivatives and cash, in the sensitivity scenarios estimated by the Company, are shown in the table below: 2019 Description Individual risk Probable Possible Remote US dollar debts Dollar appreciation 15,594,278 19,492,848 23,391,418 US dollar cash Dollar depreciation (283,409 ) (354,261 ) (425,113 ) Euro debt Euro appreciation 2,711,459 3,389,323 4,067,188 Euro cash Euro depreciation (112,796 ) (140,995 ) (169,194 ) Fair value adjustment Dollar/euro depreciation (8,772,305 ) (10,965,381 ) (13,158,458 ) Total assets/liabilities indexed to exchange fluctuation 9,137,227 11,421,534 13,705,841 Total (gain) loss 2,284,307 4,568,614 (b) Interest rate risk Financial assets Cash equivalents and cash investments in local currency are substantially maintained in financial investment funds exclusively managed for the Company and its subsidiaries, and investments in private securities issued by prime financial institutions. The interest rate risk linked to these assets arises from the possibility of decreases in these rates and consequent decrease in the return on these assets. Financial liabilities The Company and its subsidiaries have borrowings and financing subject to floating interest rates, based on the Long-term Interest Rate (TJLP), the CDI, or the Benchmark Rate in the case of real-denominated debt as at December 31, 2019. After the approval of the JRP, the Company does not have borrowings and financing subject to foreign currency-denominated floating interest rate. As at December 31, 2019, approximately 47.5% (46.0% at December 31, 2018) of the incurred debt was subject to floating interest rates. The most material exposure of Company’s and its subsidiaries’ debt after is to CDI. Therefore, a continued increase in this interest rate would have an adverse impact on future interest payments. These assets and liabilities are presented in the balance sheet as follows: 2019 2018 Carrying Market Carrying Market Financial assets Cash equivalents 1,504,986 1,504,986 3,943,324 3,943,324 Cash investments 217,792 217,792 238,962 238,962 Financial liabilities Borrowings and financing (Note 20) 8,705,458 8,705,458 7,633,140 7,633,140 Interest rate fluctuation risk sensitivity analysis The Company is exposed to interest rate risk on its cash and cash equivalents and its indebtedness. The interest rate risk on the indebtedness is from the portion of the indebtedness having a variable interest rate. Changes in the interest rates could impact the amount of interest that the Company is required to pay or receive. Management believes that the most material risk related to interest rate fluctuations arises from its liabilities pegged to the CDI and TJLP. This risk is associated to an increase in those rates. The TJLP rate remained stable at 7.0% p.a. from April 1, 2017 to December 31, 2017. Beginning January 1, 2018, the TJLP was being successively reduced: 6.75% per year up to March 2018, 6.6% per year from April to June 2018, and 6.56% from July to September 2018. In turn, from October to December 2018 this rate was increased to 6.98% per year, it was increased to 7.03%, from January to March 2019, to 7.03%, and reduced again from April to June to 6.26%, from July to September to 5.95%, and from October to December to 5.57%. At the end of the quarter the National Monetary Council decided to reduce this rate again to 5.09% per year, effective for January-March 2020. Management estimated the fluctuation scenarios of the rates CDI and TJLP as at December 31, 2019. The rates used for the probable scenario were the rates prevailing at the end of the reporting year. T 2019 Interest rate scenarios Probable scenario Possible scenario Remote scenario CDI TJLP CDI TJLP CDI TJLP 4.59% 5.57% 5.74% 6.96% 6.89% 8.36% Such sensitivity analysis considers payment outflows in future dates. Thus, the aggregate of the amounts for each scenario is not equivalent to the fair values, or even the fair values of these liabilities. The impacts of exposure to interest rates, in the sensitivity scenarios estimated by the Company, are shown in the table below: 2019 Description Individual risk Probable scenario Possible scenario Remote scenario Debt pegged to CDI CDI increase 4,601,044 5,330,277 6,583,653 Debt pegged to TJLP TJLP increase 3,221,576 4,232,356 4,972,246 Total assets/liabilities pegged to the interest rate 7,822,620 9,562,633 11,555,899 Total (gain) loss 1,740,013 3,733,279 3.2.2. Credit risk The concentration of credit risk associated to trade receivables is immaterial due to the diversification of the portfolio. Doubtful receivables are adequately covered by an allowance for doubtful accounts. Transactions with financial institutions (cash investments and borrowings and financing) are made with prime entities, avoiding the concentration risk. The credit risk of financial investments is assessed by setting caps for investment in the counterparts, taking into consideration the ratings released by the main international risk rating agencies for each one of such counterparts. As at December 31, 2019, approximately 80.92% of the consolidated cash investments were made with counterparties with an AAA, AA, A, and sovereign risk rating. 3.2.3. Liquidity risk The liquidity risk also arises from the possibility of the Company being unable to discharge its liabilities on maturity dates and obtain cash due to market liquidity restrictions. Management uses its resources mainly to fund capital expenditures incurred on the expansion and upgrading of the network, invest in new businesses. The Company’s management monitors the continual forecasts of the liquidity requirements to ensure that the company has sufficient cash to meet its operating needs and fund capital expenditure to modernize and expand its network. At the beginning of 2019, Oi completed the capital increase provided for in the JRP. With this increase, the Company received R$4.0 billion, which were allocated to the incremental CAPEX Plan, directed to the expansion of the mobile and fixed infrastructure, while focused primarily on the fiber optics project. In addition to the capital increase, to finance the incremental CAPEX associated to the Strategic Plan, the Company plans to divest unessential and release cash through non-operating Capital management The Company seeks to manage its equity structure according to best market practices. The objective of the Company’s capital management strategy is to ensure that liquidity levels and financial leverage allow the sustained growth of the Group, the compliance with the strategic investment plan, and generation of returns to our shareholders. We may change our capital structure, according to existing economic and financial conditions, to optimize our financial leverage and debt management. The indicators used to measure capital structure management are: gross debt to accumulated twelve-month EBITDA (earnings before interest (financial income and expenses), taxes, depreciation, and amortization), and the interest coverage ratio, as shown below: Goss debt-to-EBITDA between 2x and 4.0x Interest coverage ratio (*) higher than 1.75 (*) Measure the Company’s capacity to cover its future interest obligations. 3.2.4. Risk of accelerated maturity of borrowings and financing Any default event in some debt instruments of the Company and its subsidiaries might result in accelerated maturity of other borrowings and financing. The risk of accelerated maturity arising from noncompliance of financial covenants associated to the debt was mitigated through a waiver that prevents acceleration due to failure to comply with certain covenants in first quarter of 2020. For further detail, see Note 20, in the section ‘Covenants’. |
NET OPERATING REVENUE
NET OPERATING REVENUE | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
NET OPERATING REVENUE | 4. NET OPERATING REVENUE 2019 2018 2017 Gross operating revenue 27,218,787 30,426,548 36,338,432 Deductions from gross revenue (7,082,604 ) (8,366,534 ) (12,548,778 ) Taxes (5,641,876 ) (6,725,356 ) (7,707,961 ) Other deductions (1,440,728 ) (1,641,178 ) (4,840,817 ) Net operating revenue 20,136,183 22,060,014 23,789,654 |
REVENUE AND EXPENSES BY NATURE
REVENUE AND EXPENSES BY NATURE | 12 Months Ended |
Dec. 31, 2019 | |
Expenses by nature [abstract] | |
REVENUE AND EXPENSES BY NATURE | 5. REVENUE AND EXPENSES BY NATURE December 31, December 31, December 31, Operating expenses by nature Third-party services (6,030,542 ) (5,924,556 ) (6,221,058 ) Depreciation and amortization (6,873,945 ) (5,811,123 ) (5,109,292 ) Rentals and Insurance (i) (2,575,862 ) (4,200,212 ) (4,162,659 ) Personnel (2,528,823 ) (2,594,464 ) (2,791,331 ) Network maintenance service (1,014,432 ) (1,104,015 ) (1,251,511 ) Interconnection (487,413 ) (658,068 ) (778,083 ) Provision for contingencies (216,438 ) (202,268 ) (469,440 ) Expected credit losses (489,396 ) (697,324 ) (691,807 ) Advertising and marketing (497,278 ) (382,091 ) (413,580 ) Handset and other costs (170,860 ) (196,347 ) (223,335 ) Impairment gain (los s) (2,111,022 ) (291,758 ) 4,747,141 Taxes and other expenses (110,568 ) (249,688 ) (542,832 ) Other operating income (expenses), net (iii) (6,974 ) (5,016,358 ) (8,242,895 ) Total operating expenses (23,113,553 ) (27,328,272 ) (26,150,682 ) Operating expenses by function Cost of sales and/or services (15,314,814 ) (16,179,100 ) (15,668,653 ) Selling expenses (3,547,684 ) (3,853,002 ) (4,102,556 ) General and administrative expenses (2,782,300 ) (2,738,718 ) (3,136,808 ) Other operating income 4,527,710 2,204,134 1,985,101 Other operating expenses (5,996,465 ) (6,761,586 ) (5,227,766 ) Total operating expenses by function (23,113,553 ) (27,328,272 ) (26,150,682 ) (i) The semiannual comparison was impacted by the adoption of IFRS 16— Leases (ii) As required by IAS 36, the Company conducts annually an impairment test of its assets with finite useful lives and recognizes an impairment loss related to the expected future profitability of such assets. The Company took into consideration in its assumptions for the 2019 impairment test, among other aspects, the Strategic Plan disclosed in July 2019. The plan rests on transformation actions, focused on improving operational and financial performance (see Note 17). (iii) In 2019, refers primarily to: (a) the recognition of other income from PIS and COFINS credits arising on the deduction of ICMS from PIS and COFINS tax base, as well as the recovery of unduly paid amounts on that tax base, as ruled in the final and unappealable court decision issued in March and September 2019, amounting to R$1,517,919 (Note 11) and (b) the recognition of expenses on the provision related to an onerous contract for the supply of satellite capacity, amounting to R$1,230,820 (Note 25), and (c) recognition of expenses related to the derecognition arising from the reconciliation of prior periods’ tax credits and incentives, which are not expected to be realized, amounting to R$167,395. In 2018 refers basically to: (a) expenses on the provision related to the recognition of the onerous contract for the provision of submarine cable capacity, amounting to R$4,883,620; and (b) recognition of income from the reversal of the provision for the contingency, amounting to R$109,242, arising from the reprocessing of the provision estimation model taking into account the new profile and history of discontinuation of lawsuits in the context of the approval and ratification of the JRP. In 2017, R$6,482,485 refer main to the additional provision arising from the review of the calculations of the provision for contingencies related administrative proceedings and lawsuits involving ANATEL, talking into accounting the publication of the decision that grants the judicial reorganization in February 5, 2018. |
FINANCIAL INCOME (EXPENSES)
FINANCIAL INCOME (EXPENSES) | 12 Months Ended |
Dec. 31, 2019 | |
Finance Income Expenses [Abstract] | |
FINANCIAL INCOME (EXPENSES) | 6. FINANCIAL INCOME (EXPENSES) 2019 2018 2017 Financial income Fair value adjustment (i) 48,756 13,290,262 4,873,000 Monetary correction and foreign exchange differences on the fair value adjustment 334,269 1,398,594 Gain on the restructuring of third-party borrowings (ii) 11,054,800 Interest on and monetary correction to other assets (iii) 1,922,176 808,764 1,049,923 Income from cash investments 238,828 316,880 702,171 Exchange differences on translating foreign cash investments (52,013 ) 1,329 11,105 Reversal of interest and other income (iv) 170,447 4,079,832 500,260 Total 2,662,463 30,950,461 7,136,459 Financial expenses and other charges a) Borrowing and financing costs Recognition of fair value adjustment (910,491 ) (760,197 ) Monetary correction to and exchange losses on third-party borrowings (v) (640,068 ) (2,493,618 ) (2,920,455 ) Interest on borrowings from third parties (vi) (1,295,545 ) 1,299,094 (3,122,166 ) Interest on debentures (vi) (322,218 ) 493,833 (472,173 ) Subtotal: (3,168,322 ) (1,460,888 ) (6,514,794 ) b) Other charges Interest on leases (948,973 ) Gain (loss) on cash investments classified as held for sale (237,593 ) 292,700 (267,008 ) Tax on transactions and bank fees (456,579 ) (870,488 ) (512,003 ) Interest on, monetary correction to, and foreign exchange differences on other liabilities (vii) (1,854,304 ) (1,251,215 ) (1,553,746 ) Monetary correction to (provisions)/reversals (viii) (1,620,378 ) (226,870 ) (674,668 ) Interest on taxes in installments—tax financing program (16,159 ) (28,079 ) (27,294 ) Derivative transactions 55,025 Other expenses (ix) (524,898 ) (796,755 ) (783,458 ) Subtotal: (5,603,859 ) (2,880,707 ) (3,818,177 ) Total (8,772,181 ) (4,341,595 ) (10,332,971 ) Financial income (expenses) (6,109,718 ) 26,608,866 (3,196,512 ) (i) In 2018, refers to the recognition of the fair value of third-party borrowings and financing arising from the impacts of the ratification of the JRP. In 2017, refers to the adjustment to present value arising from the revision of the calculations of the provision for contingencies related to administrative proceedings and lawsuits involving ANATEL, taking into account the best estimate of future cash outflows based on the payment methods prescribed in the JRP. (ii) In 2018, refers basically to the positive impact of the novation of the debt represented by the qualified Senior Notes, calculated pursuant to the JRP. (iii) In 2019, refers to the accounting recognition amounting R$2,100 million related to the monetary correction to PIS and COFINS credits arising from the deduction of ICMS from the tax base of PIS and COFINS, as well as the recovery of unduly paid amounts as PIS and COFINS, under a final and unappealable court decision reached in March and September 2019, as described in Note 11. (iv) In 2018, represented mainly by the reversal of the interest expenses on debt included in the JRP, adjusted in the period prior to the ratification of the Plan amounting to R$3,013 million and adjustment of trade payables and default payment to fair value amounting to R$877 million. (v) In 2018, includes R$555 million related to the modification (vi) In 2018, represented mainly by the reversal of interest on the debt included in the JRP amounting to R$3,115 million and interest expenses on novated debt and debentures totaling R$167 million. (vii) This line item includes interest related to the present value adjustment associated with the liabilities of onerous contracts and trade payables subject to the Judicial Reorganization. (viii) In 2019, includes the impact arising on the review of the provision estimate calculation methodology of the labor and civil contingencies, supported by the loss risk assessment made by the Company’s legal advisors. The Company recognized new provision for labor and civil contingencies, during 2019, related to the review of the provision estimate calculation methodology, and part of the amount was recognized in financial expenses due to monetary corrections in compliance with the Law applicable for Labor and Civil proceedings. (ix) Represented mainly by financial banking fees and commissions. |
INCOME TAX AND SOCIAL CONTRIBUT
INCOME TAX AND SOCIAL CONTRIBUTION | 12 Months Ended |
Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | |
INCOME TAX AND SOCIAL CONTRIBUTION | 7. INCOME TAX AND SOCIAL CONTRIBUTION Income taxes encompass the income tax and the social contribution. The income tax rate is 25% and the social contribution rate is 9%, generating aggregate nominal tax rate of 34%. The provision for income tax and social contribution is broken down as follows: 2019 2018 2017 Income tax and social contribution Current taxes (77,060 ) 115,706 (906,080 ) Deferred taxes (Note 10) 69,041 3,159,241 (192,542 ) Total (8,019 ) 3,274,947 (1,098,622 ) 2019 2018 2017 Pre-tax (9,087,088 ) 21,340,608 (5,557,540 ) Income tax and social contribution Income tax and social contribution on taxed income 3,089,610 (7,255,807 ) 1,889,564 Equity in investees (1,759 ) (4,587 ) (147 ) Tax incentives (basically, operating profit) (i) 1,263 3,068 14,008 Permanent deductions (add-backs) (312,512 ) 13,285,260 148,424 Reversal of (Allowance for) impairment losses on deferred tax assets (iii) (2,474,232 ) (2,757,044 ) (2,717,564 ) Tax effects of deferred tax assets of foreign subsidiaries (iv) (310,389 ) 4,057 (432,907 ) Income tax and social contribution effect on profit or loss (8,019 ) 3,274,947 (1,098,622 ) (i) Refers basically to the exploration profit recognized in the profit or loss of subsidiary Oi Móvel pursuant to Law 11638/2007. (ii) In 2019, the tax effects from permanent add-backs (iii) Refers to the reversal (recognition) of the allowance for the realizable value (impairment) of deferred tax assets (Note 10). (iv) Refers to the effects of unrecognized deferred tax assets held by foreign subsidiaries that do not have a history of profitability and/or an expectation to generate taxable income. |
CASH, CASH EQUIVALENTS AND SHOR
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 8. CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Cash investments made by the Company and its subsidiaries in the years ended December 31, 2019 and 2018 are measured at their fair values. (a) Cash and cash equivalents 2019 2018 Cash and banks 575,863 287,491 Cash equivalents 1,506,082 4,097,838 Total 2,081,945 4,385,329 2019 2018 Repurchase agreements(i) 1,192,708 2,742,731 Certificated of Bank Deposit (CDB) 173,854 301,632 Private securities(ii) 134,818 895,073 Time deposits 1,096 154,514 Other 3,606 3,888 Cash equivalents 1,506,082 4,097,838 (b) Short-term and long-term 2019 2018 Private securities(iii) 196,203 213,653 Government securities 21,589 25,309 Total 217,792 238,962 Current 183,850 201,975 Non-current 33,942 36,987 (i) Represented mainly by exclusive investment funds composed by Government Securities with yield pegged to the SELIC rate. The portfolio is preferably allocated to highly liquid spot market instruments for all investments. (ii) Represented mainly by financial treasury bills from private banks with remuneration linked to CDI rate and immediate liquidity. (iii) Represented mainly by the investments with yield pegged to the SELIC and CDB rates. The Company and its subsidiaries hold cash investments in Brazil and abroad for the purpose of earning interest on cash, benchmarked to CDI in Brazil, LIBOR for the US dollar-denominated portion, and EURIBOR for the euro-denominated portion. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other current receivables [abstract] | |
ACCOUNTS RECEIVABLE | 9. ACCOUNTS RECEIVABLE 2019 2018 Billed services 5,910,643 5,699,817 Unbilled services 842,726 984,062 Handheld devices, accessories, and other assets 354,928 619,821 Subtotal 7,108,297 7,303,700 Expected losses on trade receivables (773,771 ) (787,145 ) Total 6,334,526 6,516,555 The aging list of trade receivables is as follows: 2019 2018 Current 5,118,874 5,167,408 Past-due 527,459 672,673 Past-due 104,694 131,798 Past-due 99,299 132,562 Past-due 83,083 104,628 Over 150 days past-due 1,174,888 1,094,631 Total 7,108,297 7,303,700 The movements in expected credit losses on trade receivables are as follows: Balance at Jan uary (547,485 ) Expected losses on trade receivables (843,681 ) Trade receivables written off as uncollectible 976,998 IFRS 9 adoption (*) (372,977 ) Balance at December 31, (787,145 ) Expected losses on trade receivables (488,269 ) Trade receivables written off as uncollectible 501,643 Balance at December 31, (773,771 ) (*) Impact of the first-time recognition, at January 1, 2018, of IFRS 9 as a contra entry to Accumulated losses in Shareholders’ equity. |
RECOVERABLE INCOME TAX AND DEFE
RECOVERABLE INCOME TAX AND DEFERRED TAXES ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Recoverable Income Tax And Deferred Taxes Assets [Abstract] | |
RECOVERABLE INCOME TAX AND DEFERRED TAXES ASSETS | 10. RECOVERABLE INCOME TAX AND DEFERRED TAXES ASSETS ASSETS 2019 2018 Current recoverable taxes Recoverable income tax (IRPJ) (i) 209,513 287,472 Recoverable social contribution (CSLL) (i) 81,215 91,996 IRRF/CSLL—withholding income taxes (ii) 251,998 241,778 Total current 542,726 621,246 Deferred recoverable taxes Income tax and social contribution on temporary differences1 99,175 23,050 Total non-current 99,175 23,050 LIABILITIES 2019 2018 Current taxes payable Income tax payable 54,358 21,628 Social contribution payable 12,296 5,398 Total current 66,654 27,026 See movements table below (i) Refer mainly to prepaid income tax and social contribution that will be offset against federal taxes payable in the future. (ii) Refer to withholding income tax (IRRF) credits on cash investments, derivatives, intragroup loans, government entities, and other amounts that are used as deductions from income tax payable for the years, and social contribution withheld at source on services provided to government agencies. Movements in deferred income tax and social contribution Balance at Recognized Recognized Add-backs/ Balance at Deferred tax assets arising on: Temporary differences Provisions 1,244,246 (68,999 ) 1,175,247 Provisions for suspended taxes 29,555 134,999 164,554 Provisions for pension funds and impacts of (IAS 19 R) (14,095 ) (3,341 ) 3,331 (14,105 ) Expected losses on trade receivables 478,827 (46,407 ) 432,420 Profit sharing 94,504 (13,185 ) 81,319 Foreign exchange differences 1,403,193 333,740 1,736,933 Merged goodwill (i) 1,690,508 (278,759 ) 1,411,749 Other temporary add-backs and deductions 177,085 773,610 2,557 953,252 Onerous obligation 1,527,924 449,900 1,977,824 Deferred taxes on temporary differences 6,631,747 1,281,558 5,888 7,919,193 CSLL tax loss carryforwards 13,703,529 1,033,425 25,095 38 14,762,087 Total deferred tax assets 20,335,276 2,314,983 30,983 38 22,681,280 Deferred tax liabilities Temporary differences and income tax and social contribution of goodwill (ii) (2,532,682 ) 235,338 (2,297,344 ) Allowance for impairment loss (iii) (17,779,544 ) (2,474,234 ) (30,983 ) (20,284,761 ) Total deferred tax assets (liabilities) 23,050 76,087 (* ) 38 99,175 (*) The expenses on deferred taxes disclosed in Note 6 include R$7,046 in deferred taxes of foreign operations classified as held-for-sale (i) Refer to: (i) deferred income tax and social contribution assets calculated as tax benefit originating from the goodwill paid on acquisition of the Company and recognized by the merged companies in the course of 2009. The realization of the tax credit arises from the amortization of the goodwill balance based on the STFC license and in the appreciation of property, plant and equipment, the utilization of which is estimated to occur through 2025, and (ii) deferred income tax and social contribution assets originating from the goodwill paid on the acquisition of interests in the Company in 2008-2011, recognized by the companies merged with and into Telemar Participações S.A. (“TmarPart”) and by TmarPart merged with and into the Company on September 1, 2015, which was based on the Company’s expected future profitability and the amortization of which is estimated to occur through 2025. (ii) Refers basically to the tax effects on the appreciation of property, plant and equipment and intangible assets, merged from TmarPart. (iii) The Company, based on the schedule of expected generation of future taxable income, supported by a technical feasibility study and the comparison with the estimate of the annual realization amount of asset and liability temporary differences, revised its deferred taxes recovery estimate and identified and recognized an allowance at recoverable amount. The stock of tax loss carryforwards in Brazil and foreign subsidiaries is approximately R$32,805,092 and R$14,433,424, and corresponds to R$11,153,731 and R$3,608,356 in deferred tax assets, respectively, which can be carried forward indefinitely and offset against taxes payable in the future. |
OTHER TAXES
OTHER TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Taxes Other Than Income Tax Assets And Liabilities [Abstract] | |
OTHER TAXES | 11. OTHER TAXES ASSETS 2019 2018 Recoverable State VAT (ICMS) (i) 1,301,684 1,240,353 PIS and COFINS (ii) 2,736,009 215,860 Other 47,257 63,015 Total 4,084,950 1,519,228 Current 1,089,391 803,252 Non-current 2,995,559 715,976 LIABILITIES 2019 2018 State VAT (ICMS) 526,618 556,693 ICMS Convention No. 69/1998 220,467 34,113 PIS and COFINS (iii) 574,063 235,319 FUST/FUNTTEL/broadcasting fees (iv) 669,193 655,022 Other (v) 120,460 181,437 Total 2,110,801 1,662,584 Current 886,763 1,033,868 Non-current 1,224,038 628,716 (i) Recoverable ICMS arises mostly from prepaid taxes and credits claimed on purchases of property, plant and equipment, which can be offset against ICMS payable within 48 months, pursuant to Supplementary Law 102/2000. (ii) The Company and its subsidiaries filed legal proceedings to claim the right to deduct ICMS from the PIS and COFINS tax bases and the recovery of past unduly paid amounts, within the relevant statute of limitations. In 2019, the 1 st nd non-levy These credits were cleared for offset by the Federal Revenue Service between May and October 2019 so that the Company has been using them to pay federal taxes due since June 2019. The total amount of the credit was approximately R$3 billion, added to the three lawsuits. (iii) Refers basically to the Social Integration Program Tax on Revenue (PIS) and Social Security Funding Tax on Revenue (COFINS) on revenue, financial income, and other income. (iv) The Company and its subsidiaries Telemar and Oi Móvel filed lawsuits to discuss the correct calculation of the contribution to the FUST and in the course of the lawsuits made escrow deposits to suspend its collection. These discussions are also being judged by higher courts and a possible transformation of the deposited amounts into definitive payments should not occur within two (2) years. (v) Consisting primarily of monetary corrections to suspended taxes and withholding tax on intragroup loans and interest on capital. |
JUDICIAL DEPOSITS
JUDICIAL DEPOSITS | 12 Months Ended |
Dec. 31, 2019 | |
Judicial Deposits [Abstract] | |
JUDICIAL DEPOSITS | 12. JUDICIAL DEPOSITS In some situations the Company makes, as ordered by courts or even at its own discretion to provide guarantees, judicial deposits to ensure the continuity of ongoing lawsuits. These judicial deposits can be required for lawsuits with a likelihood of loss, as assessed by the Company based on the opinion of its legal counselors, as probable, possible, or remote. The Company recognizes in current assets the expected amount to be redeemed from judicial deposits or to offset judicial deposits against the provision for contingencies in the next fiscal year. As set forth by relevant legislation, judicial deposits are adjusted for monetary correction . 2019 2018 Civil 5,027,848 5,849,978 Tax 2,301,986 2,337,508 Labor 883,125 1,197,144 Subtotal: 8,212,959 9,384,630 Estimated loss (i) (47,112 ) (649,910 ) Total 8,165,847 8,734,720 Current 1,514,464 1,715,934 Non-current 6,651,383 7,018,786 (i) This amount represents the estimated loss of balances of judicial deposits, which are in the process of reconciliation with the obtained statements. |
PREPAID EXPENSES
PREPAID EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
Prepayments and accrued income [abstract] | |
PREPAID EXPENSES | 13. PREPAID EXPENSES 2019 2018 Costs incurred on the performance of a contract (IFRS 15) 1,016,337 912,538 Advertising and publicity 55,695 135,049 Bank guarantee 31,297 40,690 Insurance 25,807 48,865 Contractual prepaid expenses 47,771 Other 124,944 81,590 Total 1,254,080 1,266,503 Current 670,344 743,953 Non-current 583,736 522,550 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
OTHER ASSETS | 14. OTHER ASSETS 2019 2018 Advances to and amounts recoverable from suppliers 767,900 621,376 Amounts receivable from the sale of property, plant and equipment items 302,947 305,155 Amounts receivable 53,406 202,834 Advances to employees 79,830 69,635 Other 85,739 131,532 Total 1,289,822 1,330,532 Current 852,155 1,079,670 Non-current 437,667 250,862 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Investments in subsidiaries, joint ventures and associates [abstract] | |
INVESTMENTS | 15. INVESTMENTS 2019 2018 Joint arrangements 28,632 31,488 Investments in associates 48,578 44,124 Tax incentives, net of allowances for losses 31,876 31,876 Other investments 24,679 10,352 Total 133,765 117,840 Summary of the movements in investment balances Balance at Jan uary 136,510 Share of results of investees (13,492 ) Share of subsidiaries’ and associates’ equity in investees (2,270 ) Reclassification of equity in investees to held-for-sale assets 5,491 Other (8,399 ) Balance at December 31, 117,840 Share of results of investees (5,174 ) Subsidiaries’ and associates’ share of other comprehensive income 2,469 Reclassification of equity in investees to held-for-sale assets 3,514 Other 15,116 Balance at December 31, 133,765 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 16. PROPERTY, PLANT AND EQUIPMENT Works in Automatic Transmission Infrastructure Buildings Right of Other Total Cost of PP&E (gross amount) Balance at January 1, 2018 3,434,113 20,008,955 59,082,061 28,341,491 4,471,481 6,217,467 121,555,568 Additions 5,117,872 487 383,088 388,988 10,721 39,471 5,940,627 Write-offs (47,465 ) (45,211 ) (601,087 ) (3,344 ) (3,403 ) (700,510 ) Transfers (5,152,907 ) 68,518 2,672,783 2,214,139 (15,168 ) 212,635 Balance at December 31, 2018 3,351,613 20,077,960 62,092,721 30,343,531 4,463,690 6,466,170 126,795,685 Initial adoption of IFRS 16 8,167,932 8,167,932 Contractual changes 520,809 520,809 Additions 6,870,257 226,022 295,795 5,054 283,494 96,435 7,777,057 Write-offs (104,781 ) (61,464 ) (1,059,118 ) (136,734 ) (421 ) (1,362,518 ) Transfers (7,958,762 ) 135,576 5,076,356 2,463,974 39,025 243,831 Transfer to held-for-sale assets (50,854 ) (271,292 ) (322,146 ) Reclassified from held-for-sale assets 781 781 Balance at December 31, 2019 2,158,327 20,213,536 67,333,635 31,993,328 4,236,477 8,835,501 6,806,796 141,577,600 Accumulated depreciation Balance at January 1, 2018 (18,648,010 ) (45,677,425 ) (22,230,047 ) (2,758,012 ) (5,253,427 ) (94,566,921 ) Depreciation expenses (292,524 ) (2,251,574 ) (1,246,471 ) (90,348 ) (407,396 ) (4,288,313 ) Write-offs 40,387 442,589 215 1,921 485,112 Transfers (36 ) (151 ) (353 ) 33,570 (33,030 ) Balance at December 31, 2018 (18,940,570 ) (47,888,763 ) (23,034,282 ) (2,814,575 ) (5,691,932 ) (98,370,122 ) Depreciation expenses (271,449 ) (2,519,706 ) (1,456,608 ) (101,432 ) (952,225 ) (247,836 ) (5,549,256 ) Write-offs 53,452 979,614 22,315 (7,514 ) 1,047,867 Transfers 85 (565 ) (787 ) 776 491 Transfer to held-for-sale assets 16,267 189,198 205,465 Reclassified from held-for-sale assets (720 ) (720 ) Balance at December 31, 2019 (19,211,934 ) (50,355,582 ) (23,495,796 ) (2,726,033 ) (929,910 ) (5,947,511 ) (102,666,766 ) PP&E, net Balance at December 31, 2018 3,351,613 1,137,390 14,203,958 7,309,249 1,649,115 774,238 28,425,563 Balance at December 31, 2019 2,158,327 1,001,602 16,978,053 8,497,532 1,510,444 7,905,591 859,285 38,910,834 Annual depreciation rate (average) 10% 12% 10% 9% 11% 15% (1) Transmission and other equipment include transmission and data communication equipment. Additional disclosures Pursuant to ANATEL’s concession agreements, the property, plant and equipment items of the Concessionaires that are indispensable for the provision of the Switched Fixed-line Telephony Services (“STFC”) provided for in said agreements are considered returnable assets. As at December 31, 2019, the residual balance of the Company’s returnable assets is R$9,048,877 (R$8,218,006 in 2018) and consists of assets and installations in progress, switching and transmission equipment, payphones, outside network equipment, power equipment, and systems and operation support equipment. In the year ended December 31, 2019, financial charges and transaction costs incurred on works in progress were capitalized at the average rate of 7% per year. Movements in the rights of use—leases Towers Physical Stores Vehicles Real Total Balance January 1, 2019 Initial adoption of IFRS 16 7,353,507 521,523 117,480 93,615 81,807 8,167,932 Contractual changes 500,690 6,614 6,680 6,825 520,809 Additions 65,559 29,008 13,555 174,455 917 283,494 Write-offs (35,836 ) (82,091 ) (8,701 ) (8,804 ) (1,302 ) (136,734 ) Balance at December 31, 2019 7,883,920 475,054 129,014 259,266 88,247 8,835,501 Accumulated depreciation Balance at January 1, 2019 Depreciation expenses (737,439 ) (92,896 ) (31,456 ) (70,787 ) (19,647 ) (952,225 ) Write-offs 13,176 3,967 1,580 3,028 564 22,315 Balance at December 31, 2019 (724,263 ) (88,929 ) (29,876 ) (67,759 ) (19,083 ) (929,910 ) Right of use, net Balance at January 1, 2019 Balance at December 31, 2019 7,159,657 386,125 99,138 191,507 69,164 7,905,591 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS | 17. INTANGIBLE ASSETS Intangibles Data Regulatory Other Total Cost of intangible assets (gross amount) Balance at January 1, 2018 17,047 8,743,013 18,602,742 1,812,090 29,174,892 Additions 263,305 4,524 73,471 341,300 Write-offs (14 ) (14 ) Transfers (253,143 ) 234,157 18,986 Balance at December 31, 2018 27,195 8,981,694 18,602,742 1,904,547 29,516,178 Additions 369,695 8,402 44,248 422,345 Transfers (384,526 ) 410,487 (25,961 ) Balance at December 31, 2019 12,364 9,400,583 18,602,742 1,922,834 29,938,523 Accumulated amortization Balance at January 1, 2018 (7,673,193 ) (11,559,717 ) (1,591,297 ) (20,824,207 ) Amortization expenses (443,268 ) (900,360 ) (108,139 ) (1,451,767 ) Impairment loss expenses (see Note 5 (iii)) (291,758 ) (291,758 ) Balance at December 31, 2018 (8,116,461 ) (12,751,835 ) (1,699,436 ) (22,567,732 ) Amortization expenses (381,874 ) (772,179 ) (107,851 ) (1,261,904 ) Transfers 8 (8 ) Impairment loss expenses (see Note 5 (iii)) (2,111,022 ) (2,111,022 ) Balance at December 31, 2019 (8,498,327 ) (15,635,036 ) (1,807,295 ) (25,940,658 ) Intangible assets, net Balance at December 31, 2018 27,195 865,233 5,850,907 205,111 6,948,446 Balance at December 31, 2019 12,364 902,256 2,967,706 115,539 3,997,865 Annual amortization rate (average) 20 % 20 % 23 % |
TRADE PAYABLES
TRADE PAYABLES | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
TRADE PAYABLES | 18. TRADE PAYABLES 2019 2018 ANATEL (*) 7,572,101 7,147,137 Services 3,423,011 3,397,413 Infrastructure, network and plant maintenance materials 2,607,888 2,861,712 Rental of polls and rights-of-way 118,966 191,723 Other 289,508 647,856 Adjustment to present value (**) (5,124,107 ) (5,426,971 ) Total 8,887,367 8,818,870 Current 5,593,940 5,225,862 Non-current 3,293,427 3,593,008 Trade payables subject to the Judicial Reorganization 4,093,058 3,794,610 Trade payables not subject to the Judicial Reorganization 4,794,309 5,024,260 Total 8,887,367 8,818,870 (*) Refers for prepetition claims of the Management Regulatory Agency of the Federal Attorney General’s Office (AGU) to be settle pursuant to the JRP (see Note 24). (**) The calculation takes into consideration the contractual flows provided for in the JRP, discounted using rate from 16.4% per year to 17,2% per year, considering the maturities of each liabilities (ANATEL and other trade payables). |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Derivative [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | 19. DERIVATIVE FINANCIAL INSTRUMENTS 2019 2018 Liabilities Non-deliverable Forward (NDF) contracts 1,152 Total 1,152 Current 1,152 |
BORROWINGS AND FINANCING
BORROWINGS AND FINANCING | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [abstract] | |
BORROWINGS AND FINANCING | 20. BORROWINGS AND FINANCING Borrowings and financing by type 2019 2018 Contractual maturity Principal Interest Foreign currency Senior Notes 6,980,817 7,068,263 Jul 2025 Semiannual Public debentures 7,110,737 6,788,519 Aug 2023 to Feb 2035 Semiannual Financial institutions Local currency BNDES 3,947,137 3,616,074 Mar 2024 to Feb 2033 Monthly Other 2,071,209 1,905,786 Jan 2020 to Feb 2035 Monthly and semiannual Foreign currency 6,725,591 6,353,322 Aug 2023 to Feb 2035 Semiannual Foreign currency multilateral financing 360,161 326,376 Aug 2024 to Feb 2030 Semiannual Default payment Local currency 207,035 207,035 Feb 2038 to Feb 2042 Single installment Foreign currency 4,239,168 4,125,317 Feb 2038 to Feb 2042 Subtotal 31,641,855 30,390,692 Incurred debt issuance cost (13,911 ) (12,126 ) Debt discount (13,401,195 ) (13,928,660 ) Total 18,226,749 16,449,906 Current 326,388 672,894 Non-current 17,900,361 15,777,012 (*) The calculation takes into consideration the contractual flows provided for in the JRP, discounted using rates that range from 12.6% per year to 16.4% per year, depending on the maturities and currency of each instrument. Debt issuance costs by type 2019 2018 Financial institutions 13,306 11,481 Public debentures 605 645 Total 13,911 12,126 Current 1,404 1,290 Non-current 12,507 10,836 Debt breakdown by currency 2019 2018 Euro 311,309 198,931 US dollar 9,209,982 8,617,835 Brazilian reais 8,705,458 7,633,140 Total 18,226,749 16,449,906 Debt breakdown by index Index/rate 2019 2018 Fixed rate 1.75% p.a. – 10.00% p.a. 9,078,998 8,562,117 CDI 80% CDI 4,694,687 3,949,639 TJLP 2.95% p.a. + TJLP 3,945,972 3,614,820 TR 0% p.a. 22,662 14,430 Other 0% p.a. 484,430 308,900 Total 18,226,749 16,449,906 Maturity schedule of the long-term debt and debt issuance costs allocation schedule Long-term debt Debt discount Debt issuance costs 2019 2021 3,953 887,351 1,811 2022 970 887,351 1,811 2023 313,181 887,351 1,811 2024 773,745 884,980 1,811 2025 and thereafter 30,222,214 9,854,162 5,263 Total 31,314,063 13,401,195 12,507 Guarantees BNDES financing facilities are originally collateralized by receivables of the Company and its subsidiaries Telemar and Oi Móvel. The Company provides guarantees to its subsidiaries Telemar and Oi Móvel for such financing facilities, totaling R$2,937 million. Covenants The Company and its subsidiaries are subject to some covenants existing in certain loan and financing agreements, based on financial ratios, including the Gross debt-to-EBITDA Failure to comply with these financial ratios might result in the accelerated maturity of the debt balance due. As a result of the COVID-19 pandemic and the high foreign exchange volatility, the Company initiated talks with its creditors and has successfully obtained a waiver on March 30, 2020, eliminating, therefore, any concern of possibly triggering consequences of a failure to comply with certain covenants in the first quarter of 2020. Changes in borrowings and financing 2018 Interest, Amortization Principal Tax and Transfers 2019 Borrowings and financing 30,390,692 2,253,793 (935,243 ) (171,962 ) 104,575 31,641,855 Debt discount (13,928,660 ) (334,269 ) 910,491 (48,757 ) (13,401,195 ) Incurred debt issuance cost (12,126 ) (1,785 ) (13,911 ) Total 16,449,906 1,919,524 910,491 (935,243 ) (171,962 ) 54,033 18,226,749 The Company made the interest payments of the Qualified Bonds, which do not have a grace period for the interest, in August 2019. |
LICENSES AND CONCESSIONS PAYABL
LICENSES AND CONCESSIONS PAYABLE | 12 Months Ended |
Dec. 31, 2019 | |
Licenses And Concessions Payable [Abstract] | |
Disclosure Of Licenses And Concessions Payable [Text Block] | 21. LICENSES AND CONCESSIONS PAYABLE 2019 2018 Personal Mobile Services (SMP) 58,582 29,530 STFC concessions 56,089 Total 58,582 85,619 Current 58,582 85,619 Correspond to the amounts payable to ANATEL for the radiofrequency concessions and the licenses to provide the SMP services, obtained at public auctions, and STFC service concessions. |
LEASES PAYABLE
LEASES PAYABLE | 12 Months Ended |
Dec. 31, 2019 | |
Lease liabilities [abstract] | |
LEASES PAYABLE | 22. LEASES PAYABLE 2019 Towers 7,373,373 Physical space 403,485 Stores 103,792 Real estate 72,719 Vehicles 196,657 Total 8,150,026 Current 1,510,097 Non-current 6,639,929 Movements in leases payable Balance at J Initial adoption of IFRS 16 8,167,932 New contracts 237,575 Cancellations (127,699 ) Interest 958,573 Payments (1,611,273 ) Contractual changes 524,918 Balance at December 31, 8,150,026 Maturity of long-term lease payments 2021 1,501,799 2022 1,414,630 2023 1,307,923 2024 1,253,069 2025 to 2029 4,882,027 2030 and thereafter 3,613,174 Total 13,972,622 Interest (7,332,693 ) Non-current 6,639,929 The present value of leases payable was calculated, based on a projection of future fixed payments, which do not take into consideration the projected monetary correction , discounted using discount rates that range from 10.79% to 12.75% p.a. Contracts not recognized as leases payable The Company elected not to recognize a leased not to recognize a lease liability for short-term leases (leases with expected period of 12 months or less) or leases of low value assets. As at December 31, 2019, the payments made under such leases were recognized in profit or loss and amounted to R$78,134. Additionally, the Company also recognized in profit or loss the amount R$7,966, related to variable lease payments. |
TAX REFINANCING PROGRAM
TAX REFINANCING PROGRAM | 12 Months Ended |
Dec. 31, 2019 | |
Tax Debt Refinancing Program [Abstract] | |
Disclosure Of Tax Debt Refinancing Program [Text Block] | 23. TAX REFINANCING PROGRAM The outstanding balance of the Tax Debt Refinancing Program is broken down as follows: 2019 2018 Law 11941/09 and Law 12865/2013 tax financing program 417,076 496,240 PRT (MP 766/2017) (i) 54,528 PERT (Law 13496/2017) (ii) 427 2,438 Total 417,503 553,206 Current 86,721 142,036 Non-current 330,782 411,170 The amounts of the tax refinancing program created under Law 11941/2009, Provisional Act (MP) 766/2017, and Law 13469/2017, divided into principal, fine and interest, which include the debt declared at the time the deadline to join the program (Law 11941/2009 installment plan) was reopened as provided for by Law 12865/2013 and Law 12996/2014, are broken down as follows: 2019 2018 Principal Fines Interest Total Total Tax on revenue (COFINS) 2,718 151,072 153,790 199,595 Income tax 1,317 36,678 37,995 44,967 Tax on revenue (PIS) 36,785 35,242 72,027 79,885 Social security (INSS – SAT) 650 371 2,018 3,039 4,774 Social contribution 580 22 10,713 11,315 12,503 Tax on banking transactions (CPMF) 18,950 2,137 29,486 50,573 50,132 PRT – Other debts—RFB 54,528 PERT – Other debts—RFB 240 187 427 2,438 Other 12,137 4,314 71,886 88,337 104,384 Total 73,377 6,844 337,282 417,503 553,206 The payment schedule is as follows: 2020 86,718 2021 86,292 2022 86,292 2023 86,292 2024 71,909 Total 417,503 The tax debts, as is the case of the debts included in tax refinancing programs, are not subject to the terms of the judicial reorganization terms. (i) Tax Compliance Program (PRT) The Company elected to include and settle under said tax refinancing program, created by the Federal Government, under Provisional Act 766/2017 (PRT), the administrative proceedings with a probable likelihood of an unfavorable outcome and those where, while attributed a possible likelihood of an unfavorable outcome, the cost effectiveness of including them provided to be highly advantageous in light of the benefits offered by the program. The Company elected the payment method that allows settling 76% of the consolidated debt utilizing tax credits arising on tax loss carryforwards amounting to R$1,035 million, and paid the remaining 24% in 24 monthly installments totaling R$327 million plus SELIC interest charged as from the adherence month. All the procedures necessary for the Company to join the PRT were completed within the statutory deadline, while MP 766/2017 was still in effect. Subsequently, on June 1, 2017 the effective period of said Provisional Act ended because it was not passed into law within the relevant constitutional deadline. However, as established by the Federal Constitution, the legal relationships established and arising from actions taken while a provisional act not passed into law was effective, as in the case of the Company’s joining the PRT, continue to be governed by the former provisional act, except where the National Congress provides for otherwise, by means of a legislative decree. Note that the PRT, governed by MP 766/2017, is not equivalent to the tax installment plan established by MP 783/2017 (PERT), of May 31, 2017, because of differences in payment terms and conditions, plan scope, and access requirements. (ii) Special Tax Compliance Program (PERT) The Company elected to include in and settle through PERT only tax debts that in aggregate do not exceed the fifteen million Brazilian reais (R$15,000,000.00) ceiling set by Article 3 of Law 13496/2017. The tax debts included in said program were those being disputed at the administrative level in proceedings classified with a low likelihood of the Company winning and which, in the event of an unfavorable outcome, would result in a lawsuit—and entail all the associated costs—, the reason why the cost effectiveness of joining the program was quite positive, because of the benefits offered by PERT (especially the payment of just 5% of the debt in cash). |
PROVISIONS
PROVISIONS | 12 Months Ended |
Dec. 31, 2019 | |
Provisions [abstract] | |
PROVISION | 24. PROVISIONS Balance breakdown Type 2019 2018 Labor (i) Overtime 855,722 602,673 (ii) Indemnities 299,096 187,499 (iii) Sundry premiums 221,743 166,963 (iv) Stability/reintegration 215,449 160,442 (v) Additional post-retirement benefits 108,827 94,691 (vi) Salary differences and related effects 101,573 61,674 (vii) Lawyer/expert fees 51,193 30,898 (viii) Severance pay 38,261 31,521 (ix) Labor fines 30,399 25,921 (x) Employment relationship 18,758 15,952 (xi) Severance Pay Fund (FGTS) 13,306 10,804 (xii) Joint liability 3,100 889 (xiii) Other claims 93,605 67,254 Total 2,051,032 1,457,181 Tax (i) State VAT (ICMS) 746,481 503,332 (ii) Tax on services (ISS) 69,208 76,389 (iii) INSS (joint liability, fees, and severance pay) 23,847 23,100 (iv) Real Estate Tax (IPTU) 150,223 (v) Other claims 61,189 47,262 Total 1,050,948 650,083 Civil (i) ANATEL 570,283 580,182 (ii) Corporate 397,946 1,124,037 (iii) Small claims courts 118,910 191,839 (iv) Other claims (1 ) 1,062,561 1,035,398 Total 2,149,700 2,931,456 Total provisions 5,251,680 5,038,720 Current 547,996 680,542 Non-current 4,703,684 4,358,178 (1) In 2018, includes R$157,809 related to the agreement entered into with Pharol, as described in Note 1 – Litigation Termination Settlement between the Company and Pharol, settled in the first quarter of 2019. In compliance with the Law applicable for Labor, Tax and Civil proceedings, the lawsuit are adjusted for monetary correction on a monthly basis, considering the monetary correction indexes applicable in court instances, composed mainly by IGPM, TR and SELIC rates. Summary of movements in provision balances Labor Tax Civil Total Balance at January 1, 2018 1,596,418 660,302 5,526,414 7,783,134 Monetary correction (i) 184,112 77,697 (34,939 ) 226,870 Additions/(reversals) (i) 99,805 (49,659 ) 42,734 92,880 Write-offs for payment/terminations (i) (423,154 ) (38,257 ) (2,602,753 ) (3,064,164 ) Balance at December 31, 2018 1,457,181 650,083 2,931,456 5,038,720 Monetary correction (ii) 485,049 60,688 1,074,641 1,620,378 Additions/(reversals) (ii) 316,182 1,002,827 (1,102,571 ) 216,438 Write-offs for payment/terminations (207,380 ) (666,563 ) (753,826 ) (1,627,769 ) Reclassified from held-for-sale assets 3,913 3,913 Balance at December 31, 2019 2,051,032 1,050,948 2,149,700 5,251,680 (i) This line item basically includes the amounts related to proceedings terminated and included in the list of the Company’s judicial reorganization creditors, which were transferred to the line item trade payables and will be paid according to the terms of the JRP. (ii) The Company continuously monitors its proceedings and revised the calculation methodology of provision estimates, taking into consideration the new profile and history of legal proceeding terminations, in the context of the JRP, as well as in the assessment of the risk of loss carried out by Management supported by its legal advisors. Summary of the main matters related to the recognized provisions and contingent liabilities Provisions Labor The Company is a party to a large number of labor lawsuits and calculates the related provision based on a statistical methodology that takes into consideration, but not limited to, the total number of existing lawsuits, the claims make in each lawsuit, the amount claimed in each lawsuit, the history of payments made, and the technical opinion of the legal counsel. (i) Overtime—refers to the claim for payment of salary and premiums by alleged overtime hours; (ii) Indemnities—refers to amounts allegedly due for occupational accidents, leased vehicles, occupational diseases, pain and suffering, and tenure; (iii) Sundry premiums—refer to claims of hazardous duty premium, based on Article 193 of the Brazilian Labor Code (CLT), due to the alleged risk from employees’ contact with the electric power grid, health hazard premium, pager pay, and transfer premium. (iv) Stability/reintegration—claim due to alleged noncompliance with an employee’s special condition which prohibited termination of the employment contract without cause; (v) Supplementary retirement benefits—differences allegedly due on the benefit salary referring to payroll amounts; (vi) Salary differences and related effects—refer mainly to claims for salary increases due to alleged noncompliance with trade union agreements. As for the effects, these refer to the impact of the salary increase allegedly due on the other amounts calculated based on the employee’s salary; (vii) Lawyers/expert fees—installments payable to the plaintiffs’ lawyers and court appointed experts, when necessary for the case investigation, to obtain expert evidence; (viii) Severance pay—claims of amounts which were allegedly unpaid or underpaid upon severance; (ix) Labor fines—amounts arising from delays or nonpayment of certain amounts provided for in the employment contract, within the deadlines set out in prevailing legislation and collective bargaining agreements; (x) Employment relationship—lawsuits filed by outsourced companies’ former employees claiming the recognition of an employment relationship with the Company or its subsidiaries by alleging an illegal outsourcing and/or the existence of elements that evidence such relationship, such as direct subordination; (xi) Supplement to FGTS fine—arising from understated inflation, refers to claims to increase the FGTS severance fine as a result of the adjustment of accounts of this fund due to inflation effects. The Company filed a lawsuit against Caixa Econômica Federal to assure the reimbursement of all amounts paid for this purpose; (xii) Joint liability—refers to the claim to assign liability to the Company, filed by outsourced personnel, due to alleged noncompliance with the latter’s labor rights by their direct employers; (xiii) Other claims—refer to different litigation including rehiring, profit sharing, qualification of certain allowances as compensation, etc. Tax The provisions for tax lawsuits are calculated individually taking into consideration Management and the legal counsel’s risk assessment. These contingencies are not included in the Judicial Reorganization Plan. (i) ICMS—Refers to the provision considered sufficient by management to cover the various tax assessments related to: (a) levy of ICMS and not ISS on certain revenue; (b) claim and offset of credits on the purchase of goods and other inputs, including those necessary for network maintenance; and (c) tax assessments related to alleged noncompliance with accessory obligations. (ii) ISS—the Company and TMAR have provisions for tax assessment notices challenged because of the levy of ISS on several value added, technical, and administrative services, and equipment leases. (iii) INSS—Provision related basically to probable losses on lawsuits discussing joint liability and indemnities. (iv) IPTU – Provision related to entries that refer to the collection of IPTU (municipal property tax) levied by several different municipalities where the Company owns properties. (v) Other claims—Refer basically to provisions to cover several tax assessments related to the collection of income tax and social contribution collection. Civil (i) ANATEL – On June 30, 2016 the Company was a party to noncompliance administrative proceedings and lawsuits filed by ANATEL and the Federal Attorney General’s Office (AGU) totaling an estimate R$14.5 billion, which were included in the JRP as electable for payment as provided for in this Plan. On this date, R$8.4 billion in liquid proceedings and R$6.1 billion in illiquid proceedings. With regard to the proceedings included in the JRP and taking into consideration the decision that granted the judicial reorganization on February 5, 2018, the Company revised the criteria used to calculate the provision for these regulatory contingencies to start considering the estimate of discounted future cash flows associated to each one of the payment methods provided for in the JRP for this type of claims. As at December 31, 2019, this provision totals R$570 million. For the contingencies not subject to the judicial reorganization, the takes into consideration the individual management of each noncompliance event, based on opinions of outside attorneys. The Company disagrees and is challenging some of the alleged noncompliance events, and is also challenging the unfairness and unreasonableness of the amount of imposed fines in light of the pinpointed noncompliance event and has kept in balance sheet the amount it deems a probable loss. The JRP prescribes in a specific clause how regulatory agencies’ claims should be addressed. It is worth mentioning that part of the amount recognized in December 2017, related to ANATEL was transferred to Trade Payables (see Note 18) as part of the recognitions resulting from the JRP. Note also that ANATEL filed bill of review No. 001068-32.2018.8.19.0000 th th (ii) Corporate – Financial Participation Agreements: these agreements were governed by Administrative Rules 415/1972, 1181/1974, 1361/1976, 881/1990, 86/1991, and 1028/1996. When they entered into a financial participation agreement to acquire a telephone line, subscribers became holders of a financial interest in the concessionaire after paying in a certain amount, initially recorded as capitalizable funds and subsequently recorded in the concessionaire’s equity, after a capital increase was approved by the shareholders’ meeting, thus generating the issuance of shares. The lawsuits filed against the former CRT—Companhia Riograndense de Telecomunicações, a company merged by the Company, and other local carriers members of the Telebrás system, challenge the way shares were granted to subscribers based on said financial participation agreements. The Company used to recognize a provision for the risk of unfavorable outcome in these lawsuits based on certain legal doctrine. In 2009 the Superior Court of Justice issued an Abstract—ruling that summarizes the majority understanding of a court on given matter—that led the Company to revise its assessment of the amount and the level of risk attributed to the lawsuits that discuss the matter. The Company, considering obviously the peculiarities of each decision and based on the assessment made by its legal department and outside legal counsel, changed its estimate on the likelihood of an unfavorable outcome from possible to probable. In 2009, the Company’s management, based on the opinions of its legal department and outside legal counsel, revised the measurement criteria of the provision for contingencies related to the financial interest agreements. Said revision contemplated additional considerations regarding the dates and the arguments of the final and unappealable decisions on ongoing lawsuits, as well as the use of statistical criteria to estimate the amount of the provision for those lawsuits. Based on a methodology prepared with the support of its in-house At the end of 2010, the Superior Court of Justice set compensation criteria to be followed by the Company to the benefit of the shareholders of the former CRT for those cases new shares, possibly due, could not be issued because of the sentence issued. The criteria must be based on (i) the definition of the number of shares that each claimant would be entitled, measuring the capital invested at the book value of the share reported in CRT’s monthly trial balance on the date it was paid-in, monetary correction Based on the new profile and history of the termination of the judicial processes, in the context of the JRP, and, using the loss risk assessment, Management adjusted the estimate of the provisioning made in 2019. In addition, there may be significant changes in the items above, mainly regarding the market price of Company shares. (iii) Small claims courts—claims filed by customers for whom the individual indemnification compensation amounts do not exceed the equivalent of forty (40) minimum wages; and The Company is a party to a large number of lawsuits filed in small claims courts and calculates the related provision based on a statistical methodology that takes into consideration, but not limited to, the total number of existing lawsuits, the claims make in each lawsuit, the amount claimed in each lawsuit, the history of payments made, and the technical opinion of the legal counsel and the impacts of the Judicial Reorganization Plan ratified on January 8, 2018. (iv) Other claims—refer to several of ongoing lawsuits discussing contract terminations, certain agencies requesting the reopening of customer service centers, compensation claimed by former suppliers and building contractors, in lawsuits filed by equipment vendors against Company subsidiaries, revision of contractual terms and conditions due to changes introduced by a plan to stabilize the economy, and litigation mainly involving discussions on the breach of contracts. The provisions for these contingencies are calculated individually taking into consideration Management and the legal counsel’s risk assessment. Breakdown of contingent liabilities, per nature The breakdown of contingent liabilities with a possible unfavorable outcome and, therefore, not recognized in accounting, is as follows: 2019 2018 Labor 797,927 770,982 Tax 28,416,097 27,586,094 Civil 1,667,900 1,723,110 Total 30,881,924 30,080,186 Contingent liabilities The Company and its subsidiaries are also parties to several lawsuits in which the likelihood of an unfavorable outcome is classified as possible, in the opinion of their legal counsel, and for which no provision for contingent liabilities has been recognized. The main contingencies classified with possible likelihood of an unfavorable outcome, according to the Company´s management’s opinion, based on its legal counsel’s assessment, are summarized below: Labor Refer to several lawsuits claiming, but not limited to, the payment of salary differences, overtime, hazardous duty and health hazard premium, and joint liability, which total approximately R$797,927 (R$770,982 in 2018). Tax The main ongoing lawsuits have the following matters: (i) ICMS—it refers to discussions concerning the levy of this tax on certain activities and/or the provision of certain services, such as, for example, the levy of ICMS on noncore activities, supplemental services, services provided to tax-exempt (ii) ISS – alleged levy of this tax on subsidiary telecommunications services and discussion regarding the classification of the services taxed by the cities listed in Supplementary Law 116/2003, amounting approximately to R$3,286,248 (R$3,505,366 in 2018); (iii) INSS – tax assessments to add amounts to the contribution salary allegedly due by the Company, amounting approximately to R$649,803 (R$695,249 in 2018); and (iv) Federal taxes—several tax assessment notifications regarding basically the disallowances made on the calculation of taxes, errors in the completion of tax returns, transfer of PIS and COFINS and FUST related to changes in the interpretation of these taxes tax bases by ANATEL. These lawsuits amount approximately to R$11,010,038 (R$10,862,077 in 2018). Civil The main ongoing lawsuits do not have any court decision which has been issued, and are mainly related, but not limited to, challenging of network expansion plans, compensation for pain and suffering and material damages, collection lawsuits, and bidding processes. These lawsuits total approximately R$1,667,900 (R$1,723,110 in 2018). Fenapas – Federação Nacional das Associações de Aposentados, Pensionistas e Participantes em Fundo de Pensão do Setor de Telecomunicações - civil actions filed with the 5 th spin-off spin-off. Guarantees The Company has bank guarantee letters and guarantee insurance granted by several financial institutions and insurers to guarantee commitments arising from lawsuits, contractual obligations, and biddings with ANATEL. The adjusted amount of contracted bonds and guarantee insurances, effective at December 31, 2019 corresponds to R$11,909,901 (R$13,750,739 in 2018). The commission charges on these contracts are based on market rates. |
OTHER PAYABLES
OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
OTHER PAYABLES | 25. OTHER PAYABLES 2019 2018 Onerous obligation (i) 5,817,130 4,493,894 Unearned revenues (ii) 1,704,420 1,916,570 Provisions for indemnities payable 640,661 676,984 Advances from customers 313,163 215,228 Consignment to third parties 41,249 56,302 Provision for asset decommissioning 18,101 17,395 Other 404,455 510,867 Total 8,939,179 7,887,240 Current 1,405,013 1,381,919 Non-current 7,534,166 6,505,321 (i) The Company and its subsidiaries are parties to a telecommunications signals transmission capacity supply agreement using submarine cables that connect North America and South America, and also hires the supply of capacity of the space segment for the provision of the DTH TV service. Since (a) the agreement obligations exceed the economic benefits that are expected to be received throughout the agreement; and (b) the costs are unavoidable, the Company and its subsidiaries recognized, pursuant to IAS 37, an onerous obligation measured at the lowest of net output cost of the agreement brought to present value, in 2019, amounting to R$1.2 billion of the satellite transmission contract (DTH TV) and in 2018, amounting to R$4.5 billion of the transmission contract via submarine cables. (ii) Refers to the amounts received a prepayment for the assignment of the commercial operation and the use of infrastructure assets that are recognized in revenue for the agreements’ effective period. Include also certification/installation rates of the service that are recognized in the revenue pursuant to the period that the services are used by the customers. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of classes of share capital [abstract] | |
SHAREHOLDERS' EQUITY | 26. SHAREHOLDERS’ EQUITY (a) Share capital The Capital Increase – Claim Capitalization amounting to R$10,600,097 with the issue of 1,514,299 new book-entry, registered common shares without par value was approved at the Company’s Extraordinary Shareholders’ Meeting held on September 17, 2018. The fair value of the shares issued was R$11,613,980. On October 28, 2018, the Company commenced the issuance and delivery of warrants and ADWs exercised by their holders and issued 115,914 common shares. The process was completed on January 4, 2019. The Subscription Warrants that had not been exercised by January 2, 2019 were cancelled. On January 25, 2019, the Company completed the capital increase provided for by the JRP (Capital Increase—New Funds), with the issue of 3,225,806,451 new common shares, and the issue of 272,148,705 new common shares for private placement aimed at the Backstop Investors, and the issue of 275,985 new common shares related to the Subscription Warrants, all registered, book-entry, and without par value. The capital increase attributed to the capital and the capital reserves was R$500,466 and R$3,837,009, respectively (Note 1). Subscribed and paid-in Number of shares (in thousands) 2019 2018 Total capital in shares Common shares 5,796,478 2,298,247 Preferred shares 157,727 157,727 Total 5,954,205 2,455,974 Treasury shares Common shares 30 32,030 Preferred shares 1,812 1,812 Total 1,842 33,842 Outstanding shares Common shares 5,796,448 2,266,217 Preferred shares 155,915 155,915 Total outstanding shares 5,952,363 2,422,132 As at December 31, 2019, the Company reported a loss for the year amounting to R$9,000,434. Pursuant to the Company’s management proposal, subject to the Annual Shareholders’ Meeting’s approval, loss for the year was fully absorbed by capital reserves. The Company is authorized to increase capital, through a Board of Directors’ decision, either in common or preferred shares, until its share capital totals R$38,038,701,741.49, within the 2/3 legal cap of nonvoting shares in the case of issue of new nonvoting preferred shares. By decision of the Shareholders’ Meeting or the Board of Directors, the Company’s share capital can be increased by capitalizing either retained earnings or prior reserves, allocated to this purpose by the Shareholders’ Meeting. Under these terms, a capitalization can be made without changing the number of shares. Issued capital is represented by common and preferred shares, without par value, and in case of capital increases there is not constraint to keep the current ratio between these two types of shares. By decision of the Shareholders’ Meeting or the Board of Directors, preemptive rights over the issue of shares, subscription warrants, or convertible debentures can be suspended in the cases provided for by Article 172 of the Brazilian Corporate Law. At the Company’s Annual Shareholders’ Meeting held on April 26, 2019, it was approved the allocation of the profit for the year 2018, amounting to R$24,591,140 to offset prior years’ accumulated losses. (b) Treasury shares On July 27, 2018, the Company delivered 116,251,405 common shares, previously held by PTIF, to the Qualified Bondholders, as part of the restructuring of the qualified bonds. The fair value related to the conversion of the Senior Notes settled with the delivery of treasury shares of R$773,072. The treasury shares delivered were written off as a contra entry to capital reserves, amounting to R$2,727,842. In February 2019, the Company bought back 1,800,000 preferred shares, in trades in the stock market, at a total cost of R$2,572 to ensure the compliance of the obligation assumed by the Company to transfer own shares held in treasury to shareholder Bratel, wholly-owned subsidiary da Pharol, in the context of the settlement entered into by both companies (Note 1). In April 2019, due to confirmation of the settlement entered into by Oi and Pharol, 32,000,000 common shares and 1,800,000 preferred shares were delivered to Bratel, totaling 33,800,000 shares as provided for by the settlement entered into by the parties (Note 1). (c) Capital reserves The capital reserves consist mainly of the reserves described below and according to the following practices: Special merger goodwill reserve Special merger reserve—net assets Other capital reserves (d) Share issuance costs As mentioned in item (a) of this Note, under the commitment agreement entered into with the backstoppers, the Company issued 272,148,705 new common shares, as compensation for the commitments assumed in said agreement, at a cost of R$337,464, recognized in share issuance cost as a contra entry to the capital increase, plus R$86,180 related to expenses incurred in the issue process. (e) Basic and diluted earnings per share On January 16, 2019, the Company issued 1,530,457,356 common shares to the holders of subscription warrants. On January 21, 2019, the Company issued 91,080,933 common shares to the holders of subscription rights that requested subscriptions of the excess common shares. On January 25, 2019, 1,604,268,162 New Common Shares were subscribed and paid in. The end of the capital increase process, through the subscription and payment of all 3,225,806,451 New Common Shares issued as part of the Capital Increase—New Funds, represented a contribution of new funds to the Company totaling R$4,000,000,000.00. This transaction had an impact on earnings per share, since the shareholders were diluted. The common and preferred shareholders have different rights in terms of dividends, voting rights, and liquidation, as prescribed by the Company’s bylaws. Accordingly, basic and diluted earnings (losses) per share were calculated based on profit (loss) for the year available to the common and preferred shareholders. Basic Basic earnings (loss) per share are calculated by dividing the profit attributable to the owners of the Company, available to common and preferred shareholders, by the weighted average number of common and preferred shares outstanding during the year. Diluted Diluted earnings (loss) per share are calculated by adjusting the weighted average number of outstanding common and preferred shares, to estimate the dilutive effect of all convertible securities. Currently the Company does not have any potentially dilutive shares. The table below shows the calculations of basic and diluted earnings per share: 2019 2018 2017 Profit (loss) attributable to owners of the Company (9,000,434 ) 24,591,140 (6,365,019 ) Profit (loss) allocated to common shares - basic and diluted (8,764,803 ) 22,036,074 (4,896,241 ) Profit (loss) allocated to preferred shares – basic and diluted (235,631 ) 2,555,066 (1,468,778 ) Weighted average number of outstanding shares (in thousands of shares) Common shares - basic and diluted 5,788,447 1,344,686 519,752 Preferred shares - basic and diluted 155,615 155,915 155,915 Profit (loss) per share (in reais): Common shares - basic and diluted (1.51 ) 16.39 (9.42 ) Preferred shares - basic and diluted (1.51 ) 16.39 (9.42 ) Preferred shares will become voting shares if the Company does not pay minimum dividends to which preferred shares are entitled under the Company’s Bylaws during three consecutive years. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of defined benefit plans [abstract] | |
EMPLOYEE BENEFITS | 27. EMPLOYEE BENEFITS (a) Pension plans The Company and its subsidiaries sponsor retirement benefit plans (“Pension Funds”) for their employees, provided that they elect to be part of such plan, and current beneficiaries. The table below shows the benefit plans existing at December 31, 2019. Benefit plans Sponsors Manager TCSPREV Oi, Oi Móvel and BrT Multimídia FATL TelemarPrev Oi, Telemar and Oi Móvel FATL PAMEC Oi Oi PBS-A Telemar e Oi SISTEL PBS-Telemar Telemar FATL PBS-TNC Oi Móvel FATL CELPREV Oi Móvel FATL PAMA Oi and Telemar SISTEL SISTEL – Fundação Sistel de Seguridade Social FATL – Fundação Atlântico de Seguridade Social Whenever mentioned in this Note, for purposes of the pension plans, the Company may also be referred to as the “Sponsor”. The sponsored plans are valued by independent actuaries at the end of the annual reporting period. For the year ended December 31, 2019, the actuarial valuations were performed by PREVUE Consultoria. The Bylaws provide for the approval of the supplementary pension plan policy, and the joint liability attributed to the defined benefit plans is ruled by the agreements entered into with the pension fund entities, with the agreement of the National Pension Plan Authority (PREVIC), as regards the specific plans. PREVIC is the official agency that approves and oversees said plans. The sponsored defined benefit plans are closed to new entrants because they are close-end Actuarial liabilities are recognized for the sponsored defined benefit plans that report an actuarial deficit. For the plans that report an actuarial surplus, assets are recorded when there is an express authorization for offsetting them against future employer contributions. Provisions for pension plans Refer to the recognition of the actuarial deficit of the defined benefit plans, as shown below: 2019 2018 Actuarial liabilities Financial obligations—BrTPREV plan (i) 626,748 574,725 PAMEC Plan 6,264 4,397 Total 633,012 579,122 Non-current 633,012 579,122 (i) The Company had a financial obligations agreement entered into with Fundação Atlântico intended for the payment of the mathematical provision without coverage by the plan’s assets. With the approval and ratification of the JRP, the related claim of Fundação Atlântico against Oi is subject to the new terms and conditions of the JRP. Assets recognized to be offset against future employer contributions The Company recognized TCSPREV Plan assets related to: (i) sponsor contributions which participants that left the Plan are not entitled to redeem; and (ii) part of the Plan’s surplus attributed to the sponsor. The assets recognized are used to offset future employer contributions. These assets are broken down as follows: 2019 2018 Actuarial assets TCSPREV Plan 56,559 68,934 CELPREV Plan 222 199 PBS-TNC 3,264 Total 60,045 69,133 Current 5,430 4,880 Non-current 54,615 64,253 Characteristics of the sponsored pension plans 1) FATL FATL, close-end, Plans (i) PBS-Telemar Defined contribution pension Benefit Plan, closed to new entrants, enrolled with the CNPB under No. 2000.0015-56. The contributions from Active Participants of the PBS-Telemar (ii) TelemarPrev Variable contribution pension Benefit Plan, enrolled with the CNPB under No. 2000.0065-74. A participant’s regular contribution is comprised of two portions: (i) basic—equivalent to 2% of the contribution salary; and (ii) standard—equivalent to 3% of the positive difference between the total contribution salary and the social security contribution. The additional extraordinary contributions from participants are optional and can be made in multiples of 0.5% of the Contribution Salary, for a period of not less than six (6) months. Nonrecurring extraordinary contributions from a participant are also optional and cannot be lower than 5% of the Contribution Salary ceiling. The Plan’s Charter requires the parity between participants’ and sponsors’ contributions, up to the limit of 8% of the Contribution Salary, even though a sponsor is not required to match Extraordinary Contributions made by participants. The plan is funded under the capital formation approach. (iii) TCSPREV Variable contribution pension Benefit Plan, closed to new entrants, enrolled with the CNPB under No. 2000.0028-38. On November 30, 2018, date of the actual merger, TCSPREV Benefits Plan merged the BrTPREV Benefits Plan (CNPB No. 2002.0017-74) With the recognition and registration of the merger, the Participants and Beneficiaries linked to BrTPREV automatically became Participants and Beneficiaries TCSPREV, in accordance with the categories of Beneficiaries existing on the day prior to the merger date. The monthly, mandatory Basic Contribution of the Active Participants of the TCSPREV and BrTPREV corresponds to the outcome obtained by applying a percentage that may range from 3% to 8% on the Contribution Salary, pursuant to the age and option of each Participant. The Plan’s Charter provides for contribution parity by the Participants and the Sponsors. The monthly Contribution of the Fundador/Alternativo Plan Participants, previously merged with and into BrTPREV, corresponds to the sum of: (i) 3% charged on the Contribution Salary; (ii) 2% charged on the Contribution Salary that exceeds half of the highest Official Pension Scheme Contribution Salary, and (iii) 6.3% charged on the Contribution Salary that that exceeds the highest Official Pension Scheme Contribution Salary. The Plan’s Charter provides for contribution parity by the Participants and the Sponsors. In accordance with regulatory criteria, the Sponsors’ contributions, related to TCSPREV and BrTPREV Participants are automatically cancelled on the month subsequent to the month when the same Participant reaches the age of 60 years old, 10 years of Credited Services, and 10 years of Plan membership. For participants who migrated from the PBS-TCS PBS-TCS The TCSPREV and BrTPREV Participant’s Voluntary Contribution corresponds to the product obtained, in whole numbers, by applying a percentage of up 22%, elected by the Participant, to the Participation Salary. The Sporadic Contribution is optional and both its amount and frequency are freely chosen by the Participant, as defined by the TCSPREV or BrTPREV Plan, provided it is not lower than one (1) UPTCS (TCSPREV Pension Unit) or one (1) UPBrT (BrT’s Pension Unit), respectively. The Sponsor does not make any counterpart contribution to the Participant’s Voluntary or Sporadic contribution. The plan is funded under the capital formation approach. (iv) PBS-TNC Defined contribution pension Benefit Plan, closed to new entrants, enrolled with the CNPB under No. 2000.0013-19. The contributions from Active Participants of the PBS-TNC The contribution of the Current Beneficiaries (only those who receive a retirement allowance) is equivalent to a percentage to be set on an annual basis in the Costing Plan, applied on the overall benefit, limited to the amount of the allowance. The plan is funded under the capital formation approach. (v) CELPREV Defined Contribution Pension Benefit Plan, enrolled with the CNPB under No. 2004.0009-29. On January 12, 2018, pursuant to Administrative Rule 22, published on the Federal Official Gazette of January 16, 2018, PREVIC approved the new text of the Plan’s Charter, which closes the number of CELPREV participants and prevents new entrants. The Participant’s Basic Regular Contribution corresponds to the product obtained by applying a percentage, 0%, 0.5%, 1%, 1.5% or 2%, depending on each participant’s option, to his or her Contribution Salary (SP). The Sponsors contribute with an amount equivalent to such contribution, less the monthly, mandatory contribution of each Sponsor required to fund risk costs (Sick Pay Benefit). The Additional Regular Contribution corresponds The Participant’s Basic Regular Contribution corresponds to the product obtained by applying a percentage ranging from 0% to 6%, in multiples of 0.5%, as elected by each participant, on the Contribution Salary exceeding 10 Plan Benchmark Units (URPs). The Sponsors contribute with an equivalent amount. The Participant’s Voluntary Contribution corresponds to a whole number percentage, freely elected by each participant, applied on the Contribution Salary. The Sponsor does not make any counterpart contribution to this contribution. The Sponsor’s Nonrecurring Contribution is voluntarily and corresponds to applying a percentage ranging from 50% to 150% of the aggregate Basic Regular and Additional Regular Contributions of the Sponsor, pursuant to consistent, non-discriminatory The Sponsor’s Special Contribution is specific for new Plan members who have joined the plan within 90 days starting March 18, 2004. The Sponsor’s monthly, mandatory Risk Contribution, required to fund the Sick Pay Benefit, corresponds to percentage of Non-migrating The plan is funded under the capital formation approach. 2) SISTEL SISTEL is a nonprofit, private welfare and pension entity, established in November 1977, which is engaged in creating and operating private plans to grant benefits in the form of lump sums or annuities, supplementary or similar to the government retirement pensions, to the employees and their families who are linked to SISTEL’s sponsors. Plans (i) PBS-A Defined benefit plan jointly sponsored with other sponsors associated to the provision of telecommunications services and offered to participants who held the status of beneficiaries on January 1, 2000. Contributions to the PBS-A In December 2019, the National Pension Plan Authority (PREVIC) approved the allocation of a special reserve of the PBS-A PBS-A’s (ii) PAMA PAMA is a healthcare plan for retired employees aimed at providing medical care coverage to beneficiaries, with copayments by and contributions from the latter, provided that linked to the Defined Benefit pension plans managed by SISTEL. Up to 2014, the Company did not consider the assets and liabilities of the PAMA plan because it is multi-sponsored and similar to defined contribution plans (benefits paid are limited to the amount of the contributions received by the plan), and there are no other obligations in addition to the existing balances. However, as from the issue of National Supplementary Healthcare Agency’s position that SISTEL is a sponsor of the healthcare plan as defined by Law 9656/1998 and as a result does not qualify as a Healthcare plan operator, SISTEL is liable for some plan obligations, even though it is not make entitled to revenue from the corresponding contributions. Thus, it is no longer possible to qualify this plan as a defined contribution plan. In October 2015, in compliance with a court order, SISTEL transferred the surpluses of the PBS-A 3) PAMEC-BrT—Assistance Healthcare plan intended to provide medical care to the retirees and survivor pensioners linked to the TCSPREV Benefit Plan. Benefit Plan managed by FATL. The contributions for PAMEC-BrT Statuses of the sponsored plans, revalued at the end of the reporting period Changes in the actuarial obligations, fair value of assets and amounts recognized in the balance sheet 2019 PENSION PLANS MEDICAL CARE TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMEC PAMA Present value of actuarial obligation at beginning of year 3,256,516 328,130 4,165,284 4,811,332 35,043 26 4,397 3,422,402 Interest on actuarial liabilities 283,542 28,419 367,633 415,476 3,066 2 414 308,512 Current service cost 250 34 1,613 82 2 322 Participant contributions made in the year 15 28 Benefits paid, net (262,369 ) (23,683 ) (285,160 ) (429,813 ) (2,460 ) (484 ) (229,329 ) Increase/(decrease) of assets due to changes in the Plan 183,195 Benefit obligation result allocated to other comprehensive income 500,731 32,358 729,147 660,695 4,984 1 1,937 641,713 Asset increase/(decrease) as a result of the Plan’s merger Present value of actuarial obligation at the end of the year 3,778,685 365,286 4,978,517 5,640,885 40,715 31 6,264 4,143,620 Fair value of assets at the beginning of the year 3,621,068 379,000 4,508,570 7,316,395 60,062 3,340 3,443,944 Return on plan assets 313,409 33,149 394,800 649,891 5,255 293 312,145 Amortizing contributions received from sponsor 484 Sponsor 13 65 Participants 15 28 Benefits payment (262,369 ) (23,683 ) (285,160 ) (429,813 ) (2,460 ) (484 ) (229,329 ) Benefit obligation result allocated to other comprehensive income 345,124 42,087 680,478 730,389 1,980 558 895,983 Asset increase/(decrease) as a result of the Plan’s merger Fair value of plan assets at the end of the year 4,017,260 430,646 5,298,688 8,266,862 64,837 4,191 4,422,743 (=) Net actuarial liability/(asset) amount (238,575 ) (65,360 ) (320,171 ) (2,625,977 ) (24,122 ) (4,160 ) 6,264 (279,123 ) Effect of the asset/onerous liability recognition ceiling 182,016 65,360 320,171 2,625,977 20,858 3,938 279,123 (=) Recognized net actuarial liability/(asset) (56,559 ) (3,264 ) (222 ) 6,264 2018 PENSION PLANS MEDICAL CARE BrTPREV TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMEC PAMA Present value of actuarial obligation at beginning of year 2,524,728 625,266 307,658 3,825,053 4,675,447 31,938 41 3,300 3,113,772 Interest on actuarial liabilities 218,105 78,223 29,113 362,886 439,285 3,027 4 317 299,881 Current service cost 74 196 41 1,870 55 3 273 Participant contributions made in the year 12 2 34 1 Benefits paid, net (177,215 ) (61,605 ) (23,441 ) (272,271 ) (422,312 ) 2,527 (688 ) (237,744 ) Benefit obligation result allocated to other comprehensive income 60,942 (12,212 ) 14,725 247,746 118,912 (2,505 ) (22 ) 1,468 246,220 Asset increase/(decrease) as a result of the Plan’s merger (2,626,646 ) 2,626,646 Present value of actuarial obligation at the end of the year 3,256,516 328,130 4,165,284 4,811,332 35,043 26 4,397 3,422,402 Fair value of assets at the beginning of the year 1,895,608 1,953,967 360,700 4,142,553 7,462,931 59,723 3,030 3,243,093 Return on plan assets 161,415 200,469 34,332 394,097 713,294 5,759 298 312,593 Amortizing contributions received from sponsor 11 Regular contributions received by plan 12 4 100 3 1 688 Sponsor 2 66 2 Participants 12 2 34 1 Benefits payment (177,215 ) (61,605 ) (23,441 ) (272,271 ) (422,312 ) (2,505 ) (688 ) (237,744 ) Benefit obligation result allocated to other comprehensive income 36,579 (388,177 ) 7,309 244,191 (437,518 ) (2,918 ) 11 126,002 Asset increase/(decrease) as a result of the Plan’s merger (1,916,410 ) 1,916,410 Fair value of plan assets at the end of the year 3,621,068 379,000 4,508,570 7,316,395 60,062 3,340 3,443,944 (=) Net actuarial liability/(asset) amount (364,552 ) (50,870 ) (343,286 ) (2,505,063 ) (25,019 ) (3,314 ) 4,397 (21,542 ) Effect of the asset/onerous liability recognition ceiling 295,618 50,870 343,286 2,505,063 25,019 3,115 21,542 (=) Recognized net actuarial liability/(asset) (68,934 ) (199 ) 4,397 (*) Plan merged with into TCSPREV on November 30, 2018. The Company determines the amount available to deduct from future contributions according to the applicable legal provisions and the benefit plan charter. The amount of the asset linked to the TCSPREV, PBS-TNC Expenses (revenue) components of the benefits 2019 PENSION PLANS MEDICAL CARE TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMEC PAMA Current service cost 250 34 1,613 82 2 322 Interest on actuarial liabilities 283,541 28,419 367,633 415,476 3,066 2 414 308,512 Return on plan assets (313,409 ) (33,149 ) (394,800 ) (649,891 ) (5,255 ) (293 ) (312,146 ) Interest on onerous liability 24,000 4,725 27,167 234,415 2,065 273 3,634 Effect of the unrecognized net actuarial asset Expenses (income) recognized in statement of profit or loss (5,618 ) 29 1,613 (42 ) (16 ) 414 322 Expenses (income) recognized in other comprehensive income 18,005 36 (1,613 ) (2,382 ) (7 ) 1,937 (322 ) Total expense (income) recognized 12,387 65 (2,424 ) (23 ) 2,351 2018 PENSION PLANS MEDICAL CARE BrTPREV TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMEC PAMA Current service cost 74 196 41 1,870 55 3 274 Interest on actuarial liabilities 218,103 78,222 29,114 362,887 439,285 3,027 4 317 299,881 Return on plan assets (161,415 ) (200,469 ) (34,332 ) (394,097 ) (713,295 ) (5,759 ) (298 ) (312,593 ) Interest on onerous liability 112,564 5,214 31,210 274,010 2,731 294 12,712 Effect of the unrecognized net actuarial asset (274 ) Expenses (income) recognized in statement of profit or loss 56,762 (9,487 ) 37 1,870 54 3 317 Expenses (income) recognized in other comprehensive income 24,364 42,233 30 (1,870 ) (891 ) (201 ) 1,469 Total expense (income) recognized 81,126 32,746 67 (837 ) (198 ) 1,786 2017 PENSION PLANS MEDICAL CARE BrTPREV TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMEC PAMA Current service cost 102 457 33 1,545 48 7 170,184 Interest on actuarial liabilities 260,649 64,927 32,488 397,842 499,261 3,328 15 378 286,035 Return on plan assets (210,579 ) (215,509 ) (35,817 ) (440,696 ) (781,757 ) (6,343 ) (301 ) (331,699 ) Interest on onerous liability 136,800 3,317 42,854 282,496 3,014 286 45,664 Effect of the unrecognized net actuarial asset (21 ) (1,545 ) (47 ) (7 ) (170,184 ) Expenses (income) recognized in statement of profit or loss 50,172 (13,325 ) 378 Expenses (income) recognized in other comprehensive income 78,147 28,149 (232 ) Effect of the unrecognized net actuarial asset Total expense (income) recognized 128,319 14,824 146 Main actuarial assumptions adopted on Decemb e 31, 2019 PENSION PLANS MEDICAL CARE PLANS TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMEC PAMA Nominal discount rate of actuarial liability 7.43% 7.43% 7.43% 7.43% 7.43% 7.43% 7.64% 7.64% Estimated inflation rate 3.80% 3.80% 3.80% 3.80% 3.80% 3.80% 3.80% 3.80% Estimated nominal salary increase index 4.00% 4.00% Per sponsor N.A. 8.82% 7.53% N.A. N.A. Estimated nominal benefit growth rate 3.80% 3.80% 3.80% 3.80% 3.80% 3.80% N.A. N.A. Total expected rate of return on plan assets 7.43% 7.43% 7.43% 7.43% 7.43% 7.43% 7.64% 7.64% General mortality biometric table AT-2000 Basic AT-2000 Basic AT-2000 Basic AT-2000 Basic AT-2000 Basic N.A. AT-2000 Basic AT-2000 Basic Biometric disability table Álvaro Vindas, Álvaro Vindas, Álvaro Vindas, Álvaro Vindas, Álvaro Vindas, N.A. Álvaro Vindas, Álvaro Vindas, Biometric disabled mortality table AT-49, AT-49, AT-49, AT-49, AT-49, N.A. AT-49, AT-49, Turnover rate 4.80% Nil Per sponsor, Nil Nil 2% Nil Nil Starting age of the benefits 57 years old 57 years old 55 years old N.A. 57 years old 55 years old N.A. N.A. Nominal medical costs growth rate N.A. N.A. N.A. N.A. N.A. N.A. 6.91% 6.91% N.A. = Not applicable. ADDITIONAL DISCLOSURES—2019 (a) Plans’ assets and liabilities correspond to the amounts as at December 31, 2019. (b) Master file data used for the plans managed by FATL and for the PAMEC plan are as at July 31, 2019, and for SISTEL are as at June 30, 2019, both projected for December 31, 2019. Investment policy of the plans The investment strategy of the Benefits Plans is described in their investment policy, which is annually approved by the governing board of the sponsored funds. This policy establishes that investment decision-making must take into consideration: (i) the preservation of capital; (ii) the diversification of investments; (iii) the risk appetite according to conservative assumptions; (iv) the expected return rate based on actuarial requirements; (v) the compatibility of investment liquidity with the plans’ cash flows, and (vi) reasonable management costs. The policy also defines the volume interval for different types of investment allowed for the pension funds, as follows: fixed income, variable income, structured investments, investments abroad, loans to participants, and real estate investments. The average ceilings set for the different types of investment permitted for pension funds, as at December 31, 2019 and 2018, are as follows: ASSET SEGMENT TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMA Fixed income 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Variable income 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 0.00% Structured investments 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 0.00% Investments abroad 10.00% 10.00% 10.00% 0.00% 10.00% 10.00% 0.00% Real estate 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 0.00% Loans to participants 15.00% 15.00% 15.00% 3.00% 15.00% 15.00% 0.00% The allocation of plan assets as at December 31, 2019 is as follows: ASSET SEGMENT TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMA Fixed income 86.06% 90.57% 92.46% 95.10% 85.61% 88.20% 100.00% Variable income 1.63% 0.34% 0.96% 0.00% 0.48% 3.17% 0.00% Structured investments 10.85% 7.84% 5.04% 0.00% 13.71% 7.25% 0.00% Investments abroad 0.21% 0.00% 0.11% 0.00% 0.00% 0.50% 0.00% Real estate 0.83% 0.90% 0.76% 4.10% 0.00% 0.00% 0.00% Loans to participants 0.42% 0.35% 0.67% 0.80% 0.20% 0.88% 0.00% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% The allocation of plan assets as at December 31, 2018 is as follows: ASSET SEGMENT TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMA Fixed income 86.17% 90.49% 92.51% 93.70% 83.87% 88.80% 100.00% Variable income 2.90% 1.30% 1.61% 0.77% 2.51% 4.00% Structured investments 9.23% 6.65% 4.21% 0.03% 12.84% 5.68% Investments abroad 0.85% 0.92% 0.79% Real estate 0.43% 0.38% 0.67% 4.67% 0.27% 1.15% Loans to participants 0.42% 0.26% 0.21% 0.83% 0.51% 0.37% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% (b) Employee profit sharing In the year ended December 31, 2019, the Company and its subsidiaries recognized provisions for employee profit sharing based on individual and corporate goal attainment estimates totaling R$247,178 (R$265,753 in 2018). (c) Share-based compensation A long-term incentives plan based on shares granted the Executives and the Board of Directors (Executive Committee’s Stock Option Plan and the Board of Directors’ Stock Option Plan) was submitted to and approved at the Extraordinary Shareholders’ Meeting held on April 26, 2019. However, in light of the opinion issued by the Federal Public Prosecution Office and the decision issued by the Judicial Reorganization Court on April 24, 2019 on the new long-term incentives plans, the Oi’s Board of Directors decided and communicated to the Extraordinary Shareholders’ Meeting that such plans would only be implemented after a new decision of said Court, authorizing its implementation, is issued. Beginning December 17, 2019, with the Ruling awarded by the 8 th No. 0035453-90.2019.8.19.0000, In compliance with the decision referred to above, in December 2019 the Company implemented the New Stock Option Plan for the Executive Committee, according to all the rules and conditions approved at the Extraordinary Shareholders’ Meeting held on April 26, 2019. Executives’ Stock Action Plan The purpose of this plan is to allow granting shares to Company Executives, aiming at promoting their high engagement and commitment to ensure the achievement of the strategic goals consistently with the Company’s and its shareholders’ medium- and long-term interests. The plan provides for granting annual shares over a three-year period that shall not exceed 1.5% of the Company’s share capital. The number of shares per grant is calculated individually for the purpose of maintaining the competitiveness of the executives with regard to the performance of their duties and shall be delivered to them provided that the plan’s performance condition is met. The information used in the executives’ stock option plan’s assessment is as follows: Grant date Stock Number of Vesting Vesting dates Average Estimated fair 12/30/2019 0.57 % 33,704,937 1/3 12/30/2020 0.95 34,406 1/3 12/30/2021 1/3 12/30/2022 The fair value of the granted stock options will be determined based on the vesting period and recognized as the services are provided. The estimated fair value at the acquisition date was measured taking into account the price of the shares granted on December 30, 2019, adjusted by the weighted average cost of capital of 10.98%, estimated for the three-year period of the program, brought to present value at the period’s opportunity cost of 14.67%, which corresponds to the fair value of the share. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
SEGMENT REPORTING | 28. SEGMENT REPORTING The Company’s Board of Directors uses operating segment information for decision-making. The Company identified only one operating segment that corresponds to the telecommunications business in Brazil. In addition to the telecommunications business in Brazil, the Company conducts other businesses that individually or in aggregate do not meet any of the quantitative indicators that would require their disclosure as reportable business segments. These businesses refer basically to the following companies: Companhia Santomense de Telecomunicações, Listas Telefónicas de Moçambique, ELTA – Empresa de Listas Telefónicas de Angola, and Timor Telecom, which provide fixed and mobile telecommunications services and publish telephone directories, and which have been consolidated since May 2014. The revenue generation is assessed by the Board of Directors based on a view segmented by customer, into the following categories: • Residential Services, focused on the sale of fixed telephony services, including voice services, data communication services (broadband), and pay TV; • Personal Mobility, focused on the sale of mobile telephony services to subscription and prepaid customers, and mobile broadband customers; and • SMEs/Corporate, which includes corporate solutions offered to our small, medium-sized, Telecommunications in Brazil In preparing the financial information for this reportable segment, the transactions between the companies included in the segment have been eliminated. The financial information of this reportable segment for the periods ended December 31, 2019 and 2018 is as follows: 2019 2018 2017 Residential services 7,264,262 8,401,599 9,170,835 Residential Fixed-Line 3,281,905 4,170,105 4,880,738 Broadband 2,187,015 2,423,291 2,641,836 Pay-TV 1,752,053 1,755,061 1,577,745 Interconnection 43,289 53,142 70,516 Personal mobility services 7,017,311 7,250,462 7,644,515 Mobile Telephony 6,601,729 6,607,613 6,914,862 Interconnection 257,099 447,980 500,106 Handsets, sim cards and other accessories 158,483 194,869 229,547 SMEs/Corporate (B2B) services 5,527,817 5,980,807 6,485,899 Other services and businesses 140,004 226,985 255,691 Total net operating revenue 19,949,394 21,859,853 23,556,940 Operating expenses Depreciation and amortization (6,804,870 ) (5,740,079 ) (5,031,477 ) Interconnection (484,061 ) (653,867 ) (771,212 ) Personnel (2,487,632 ) (2,554,375 ) (2,749,038 ) Third-party services (5,957,763 ) (5,833,570 ) (6,149,189 ) Grid maintenance services (1,012,857 ) (1,102,809 ) (1,235,760 ) Handset and other costs (159,442 ) (185,436 ) (214,102 ) Advertising and publicity (494,348 ) (379,676 ) (410,495 ) Rentals and insurance (2,571,245 ) (4,194,135 ) (4,152,521 ) Provisions/reversals (216,438 ) (202,122 ) (469,440 ) Expected losses on trade receivables (488,269 ) (689,735 ) (740,576 ) Impairment losses (2,111,022 ) (291,758 ) 4,747,141 Taxes and other expenses (18,396 ) (201,296 ) (475,018 ) Other operating income (expenses), net (6,974 ) (5,016,358 ) (8,196,415 ) OPERATING INCOME BEFORE FINANCIAL INCOME (EXPENSES) AND TAXES (2,863,923 ) (5,185,363 ) (2,291,162 ) FINANCIAL INCOME (EXPENSES) Financial income 2,659,074 30,850,746 6,917,975 Financial expenses (8,452,638 ) (4,339,053 ) (9,246,160 ) PRE-TAX PROFIT (LOSS) (8,657,487 ) 21,326,330 (4,619,347 ) Income tax and social contribution 57,174 3,270,890 (1,137,715 ) PROFIT (LOSS) FOR THE YEAR (8,600,313 ) 24,597,220 (5,757,062 ) Reconciliation of revenue and profit (loss) for the quarter and information per geographic market In the years ended December 31, 2019, 2018 and 2017, the reconciliation of the revenue from the segment telecommunications in Brazil and total consolidated revenue is as follows: 2019 2018 2017 Net operating revenue Revenue related to the reportable segment 19,949,394 21,859,853 23,556,940 Revenue related to other businesses 186,789 200,161 232,714 N et operating revenue (Note 5) 20,136,183 22,060,014 23,789,654 In the years ended December 31, 2019, 2018 and 2017, the reconciliation between the profit or loss before financial income (expenses) and taxes of the segment Telecommunications in Brazil and the consolidated profit (loss) before financial income (expenses) and taxes is as follows: 2019 2018 2017 Profit (loss) before financial income (expenses) and taxes Telecommunications in Brazil (2,863,923 ) (5,185,363 ) (2,291,162 ) Other businesses (113,447 ) (82,895 ) (69,866 ) I ncome before financial income (expenses) and taxes (Note 5) (2,977,370 ) (5,268,258 ) (2,361,028 ) Total assets, liabilities and tangible and intangible assets per geographic market as at December 31, 2019 are as follows: 2019 Total assets Total Tangible Intangible Investment in Brazil 67,294,245 53,525,978 38,910,834 3,997,865 7,396,983 Other, primarily Africa 4,597,577 569,338 84,122 21,327 28,530 2018 Total assets Total Tangible Intangible Investment in Brazil 60,514,610 42,015,116 28,425,563 6,948,446 5,211,774 Other, primarily Africa 4,923,187 526,870 108,768 47,601 34,467 |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
RELATED-PARTY TRANSACTIONS | 29. RELATED-PARTY TRANSACTIONS Transactions with jointly controlled entities, associates, and unconsolidated entities 2019 2018 Accounts receivable and other assets 7,216 6,359 Hispamar 426 Other entities 6,790 6,359 2019 2018 Accounts payable and other liabilities 74,254 74,210 Hispamar 71,841 66,704 Other entities 2,413 7,506 2019 2018 Revenue Revenue from services rendered 380 347 Other entities 380 347 Other income 502 Hispamar 502 Financial income 430 430 Other entities 430 430 2019 2018 Costs/expenses Operating costs and expenses (226,031 ) (236,087 ) Hispamar (203,426 ) (207,271 ) Other entities (22,605 ) (28,816 ) Financial expenses (257 ) (167 ) Hispamar (245 ) (158 ) Other entities (12 ) (9 ) Compensation of key management personnel As at December 31, 2019, the compensation of the officers responsible for the planning, management and control of the Company’s activities, including the compensation of the directors and executive officers, totaled R$63,405 (R$81,244 in 2018). |
INSURANCE
INSURANCE | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of types of insurance contracts [abstract] | |
INSURANCE | 30. INSURANCE During the concession period, the concessionary has the obligation of maintaining the following insurance coverage, over the prescribed terms: “all risks” policy that covers property damages for all insurable assets belonging to the concession, insurance and against economic losses to insure the continuity of services. All material and/or high-risk assets and liabilities in are insured. The Company and its subsidiaries maintain insurance coverage against property damages, loss of revenue arising from such damages, etc. Management understands that the amount insured is sufficient to assure the integrity of assets and the continuity of operations, and the compliance with the rules set out in the Concession Agreements. The insurance policies provide the following coverage, per risk and type of asset: 2019 2018 Insurance line Operational risks and loss of profits 800,000 700,000 Civil liability—third parties (*) 322,408 309,984 Fire—inventories 170,000 150,000 Theft—inventories 20,000 20,000 Civil liability—general 30,000 20,000 Civil liability—vehicles 2,000 2,000 (*) Based on the foreign exchange rate prevailing at December 31, 2019 (ptax): R$4.0301 = US$1.00 |
HELD-FOR-SALE ASSETS
HELD-FOR-SALE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Held For Sale Assets [Abstract] | |
HELD-FOR-SALE ASSETS | 31. HELD-FOR-SALE 2019 2018 Assets Operations in Africa (a) 4,271,348 4,923,187 Nonstrategic assets (b) 119,742 Total 4,391,090 4,923,187 2019 2018 Liabilities Operations in Africa (a) 491,225 526,870 Nonstrategic liabilities (b) 3,070 Total 494,295 526,870 (a) Operations in Africa—Approval of preparatory actions for the sale of Africatel At the Board of Directors’ meeting held on September 16, 2014, Oi’s management was authorized to take all the necessary actions to divest Oi’s stake in Africatel, representing at the time 75% of Africatel’s share capital, and/or dispose of its assets. With regard specifically to the indirect interest held by Africatel in Company, on February 27, 2019 the Company was notified of the final decision issued by the Arbitration Court under the arbitration proceeding filed by PT Ventures, an Africatel subsidiary, against the other Unitel’s shareholders. The Arbitration Court judged that the other Unitel shareholders had violated several provisions of Unitel’s Shareholders’ Agreement, which resulted in a significant decrease of PT Ventures’ stake in Unitel. The Court also judged that the other Unitel shareholders failed to ensure, after November 2012, that PT Ventures received the same amount of foreign currency-denominated dividends as the other foreign Unitel shareholder. As a result, the Court ordered the other shareholders to pay PT Ventures, jointly and severally, (i) US$339.4 million plus interest (accrued as from February 20, 2019, using the 12-month The Arbitration Award results in a reaffirmation of PT Ventures’ rights as shareholder of 25% Unitel’s capital, as prescribed by the Shareholders’ Agreement. PT Ventures retains all its rights provided for in the Shareholders’ Agreement, including the right to appoint the majority of Unitel’s Board of Directors’ members and the right to receive Unitel’s past and future dividends. Subsequently, at the General Shareholders’ Meeting of Unitel held on March 19, 2019 a new Board of Directors was elected consisting of five members, including two appointed by PT Ventures, one of whom will hold the position of Unitel’s General Director. On August 12, 2019, PT Ventures was notified on the arbitration petition filed with the International Chamber of Commerce (“ICC”) by Vidatel Ltd. (“Vidatel”), on of Unitel’s shareholders against PT Ventures. In its petition, Vidatel seeks to challenge the 2019 Arbitration Award by submitting arguments relating to the recognition, effectiveness, and feasibility of said award and arguing that the Arbitration Award would have the effect of leading to the unjust enrichment of PT Ventures. The Company believes that the arbitration proceeding initiated by Vidatel has a delaying tactic with the single goal of disrupting the enforcement of the 2019 Arbitration Award by reopening the discussion of matters that have already been discussed in the arbitration proceeding filed by PT Ventures against the other Unitel shareholders and terminated in February 2019. Additionally, the Company believes that the ICC is not the appropriate forum to file an arbitration proceeding and analyze the problems alleged by Vidatel, not only because national courts have exclusive jurisdiction on these matters and also because these matters are not within the scope of the arbitration clause greed by Unitel’s shareholders, which prescribes that arbitration shall be used to settle disputes relating only to Unitel’s shareholders’ agreement and violations of Unitel’s shareholders’ agreement. PT Ventures filed its response to the arbitration petition on September 11, 2019. As disclosed to the market in a Material Fact Notice on January 24, 2020, on that date Africatel sold and transferred all PT Ventures shares to the Angolan company Sociedade Nacional de Combustíveis de Angola, Empresa Pública—Sonangol E.P. (Note 33). As a result of this operation, the Company is no longer bound by the ongoing litigation involving PT Ventures, Unitel, and Unitel’s other shareholders. With regard to the indirect stake held by Africatel in Cabo Verde Telecom, S.A. (“CVT”), on May 21, 2019, PT Ventures sold, after the compliance with the conditions precedent, and transferred all the shares it held in CVT, representing 40% of CVT’s share capital, to the National Social Security Institute and state-owned company ASA – Empresa Nacional de Aeroportos e Segurança Aérea, S.A., both in Cabo Verde, for the total amount of US$26.3 million, as provided for in Clauses 3.1.3 and 5.1 of the JRP. This sale generated a net gain of R$67 million, recognized in profit or loss. As a result of said share sale, PT Ventures entered into with the State of Cabo Verde, on the same date, an agreement for the definite termination of the arbitration proceedings filed by PT Ventures against the latter in March 2015, with the International Centre fore for Settlement of Investment Disputes (“ICSID”) and the International Chamber of Commerce (“ICC”). The group of assets and liabilities of the African operations are stated at the lower of their carrying amounts and their fair values less costs to sell, and are consolidated in the Company’s statement of profit or loss since May 5, 2014. The main components of the assets held sale and liabilities associated to assets held for sale of the African operations are as follows: Operations in Africa 2019 (1 ) 2018 Held-for-sale assets 4,271,348 4,923,187 Cash, cash equivalents and cash investments 63,993 82,639 Accounts receivable 113,699 108,343 Dividends receivable (i) 2,435,014 2,566,935 Held-for-sale asset (i) 1,474,699 1,843,778 Other assets 74,300 145,709 Investments 4,916 19,414 Property, plant and equipment 83,400 108,768 Intangible assets 21,327 47,601 Liabilities directly associated to assets held for sale 491,225 526,870 Borrowings and financing 11,589 188 Trade payables 37,119 52,064 Other liabilities 442,517 474,618 Non-controlling interests (ii) 146,180 243,491 Total held-for-sale assets, net of the corresponding liabilities 3,633,943 4,152,826 (1) The non-operating (i) Represents the indirect interest held by PT Ventures in the dividends receivable and the fair value of the financial investment in Unitel, both classified as held for sale. The assets from the investment held in PT Ventures are measure substantially at the fair value of the investment for sale, which occurred on January 23, 2020, as referred to above, in Note 33; (ii) Represented mainly by the Samba Luxco’s 14% stake in Africatel and, consequently, in its net assets. (b) Nonstrategic assets The Company disclosed to the general market, through a material fact notice, its Strategic Plan, approved by the Board of Directors, focusing on the improvement of the operating and financial performance, using a sustainable business model, for the purpose of maximizing the Company’s value, in the context of the judicial reorganization proceeding. The plan prescribes that part of the financing of the investment strategy will be ensured by selling of the Company’s nonstrategic assets. These assets consist basically of: (i) Investment in Unitel, (ii) Towers; (iii) Datacenter; (iv) Properties; and (v) other nonstrategic assets. The Company is engaged in and focused on promoting the sale of said assets and will take all the necessary actions to implement said Plan in the coming periods. In December 2019, the assets and liabilities associated with Real Estate and mobile Towers were stated in held-for-sale Held-for-Sale |
OTHER INFORMATION
OTHER INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
OTHER INFORMATION | 32. OTHER INFORMATION (a) Agreements entered into by the Company, TmarPart, and Pharol related to the cash investments made in Rio Forte commercial papers On June 30, 2014, the Company was informed, through a market notice disclosed by Pharol, of the investment made by PTIF and PT Portugal (both, collectively, “Oi Subsidiaries”), companies contributed by Pharol to Oi in the Company’s capital increase in May 2014, in a commercial paper of Rio Forte Investments S.A. (“Securities” and “Rio Forte”, respectively), a company part of the Portuguese group Espírito Santo (“GES”), when both PTIF and PT Portugal were Pharol subsidiaries. In light of the default of the Securities by Rio Forte, on September 8, 2014, after obtaining the proper corporate approvals, the Company, the Oi Subsidiaries, TmarPart, and Pharol entered into definitive agreements related to the investments made in the Securities. The agreements provided for (i) an exchange (the “Exchange”) through which Oi Subsidiaries would transfer the Securities to Pharol in exchange for preferred and common shares of the Company held by Pharol, as well as (ii) the assignment by Oi Subsidiaries of a call option on the Company shares to the benefit of PT (“Call Option”). On March 31, 2015, the Company published a Material Fact Notice on the completion of the Exchange. The Option became vested with the completion of the Exchange, beginning March 31, 2015, exercisable at any time, over a six-year st Up to March 31, 2020, Pharol had not exercised the Option, in whole or in part, on the Shares Subject to the Option. Accordingly, the following are no longer subject to the Option: (i) beginning March 31, 2016 , 4,743,487 common shares and 9,486,974 preferred shares issued by the Company, equivalent to 10% of the Shares Subject to the Option; (ii) beginning March 31, 2017, another 8,538,277 common shares and 17,076,554, equivalent to 18% of the Shares Subject to the Option; (iii) beginning March 31, 2018, another 8,538,277 common shares and 17,076,554 preferred shares equivalent to 18% of the Shares Subject to the Option; (iv) beginning March 31, 2019, another 8,538,277 common shares and 17,076,554 preferred shares , of the Shares Subject to the Option; and (v) beginning March 31, 2020, another 17,076,554 preferred shares, equivalent to 18% of the Shares Subject to the Option. There are also 8,538,277 common shares and 17,076,554 preferred shares subject to the Option and Pharol will no longer be entitled to exercise the Option on them on March 31, 2021. As at December 31, 2019, the fair value of the Call Option is estimated at R$117 million calculated by the Company using the Black-Scholes (b) Punitive Administrative Proceedings at the CVM In December 2018, we became aware that the CVM, in the exercise of its duties, initiated two punitive administrative proceedings for acts conducted in connection with the corporate restructuring announced in October 2013 involving Oi and Pharol (former Portugal Telecom), and the capital increase through the public offer of Oi shares concluded in May 2014, for an alleged breach of the Corporate Law, to hold liable certain executives, officers and controlling shareholders at the time of the events. The Company is not a party to these proceedings. With regard to the indicted executives, if they are held liable in these Punitive Administrative Proceedings, they will be subject to a penalty, which may range from a warning to a temporary disqualification, during up to 20 years, to hold a management or member of the supervisory board position of a publicly-held company, entity of the securities distribution system, or other entities that depend of CVM authorization or registration. (c) Operation: Mapa da Mina On December 10, 2019, the Brazilian Federal Police launched the 69 th Lava Jato Mapa da Mina 5024872-64,2018.4.04.7000/PR—13 th th 5052647-8.2019.4.04.000/PR) Among the initiatives undertaken, the Company has created a Multidisciplinary Committee consisting of members from different departments, such as the legal, compliance, internal audit and accounting department, to determine the main procedures to be performed, and set a schedule of relevant activities in response to the allegations of said investigation involving the Company and its subsidiaries. In this regard, the Multidisciplinary Committee determined the following procedures: (i) retain a renowned, specialized law firm, independent from the Company and its subsidiaries, to conduct an internal investigation on the allegations made in the Federal Public Prosecution Office (MPF) and the Brazilian Federal Police (PF) investigations; (ii) request an assessment by the outside legal counsel of the results of said internal investigation to be conducted by the specialized law firm, if applicable; (iii) request an assessment by the outside legal counsel of possible legal and regulatory impacts in Brazil and in the United States, regarding all allegations made in the investigation, considering the applicable anticorruption legislation and/or illegal activities; (iv) request an assessment by the compliance department to determine whether any material weaknesses in the internal control environment existing at the time covered by the investigations still persist in the current Company governance and internal control scenario; (v) conduct periodic meetings to follow up on the status of the assessments to be carried out; and (vi) submit of the results of all assessments to be carried out to the members of the Audit, Risk and Controls Committee (“CARC”), which reports to the Company’s Board of Directors. In this context, the specialized law firm concluded its internal independent investigation in February 2020. Based on interviews, information and documentation submitted by the Company’s management, and due to the constraints imposed by the time period covered by said investigation (2003-2019), no indications of illegalities committed by the Company were identified linked to the allegations made by the MPF and the PF in Operation: “Mapa da Mina” investigation. This internal use report was extensively discussed and presented to the members of the Multidisciplinary Committee, as well as to the members of the CARC. |
EVENTS AFTER THE REPORTING PERI
EVENTS AFTER THE REPORTING PERIOD | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
EVENTS AFTER THE REPORTING PERIOD | 33. EVENTS AFTER THE REPORTING PERIOD (a) Sale of investment in PT Ventures After obtaining the proper approvals by the Company’s Board of Directors, the competent corporate bodies of Africatel and the Judicial Reorganization Court, on January 24, 2020, Africatel sold and transferred all shares issued by PT Ventures to the Angolan company Sociedade Nacional de Combustíveis de Angola, Empresa Pública—Sonangol E.P., as provided for in the Company’s Judicial Reorganization Plan and Strategic Plan (Note 31 (b)). On the transaction date, PT Ventures held stakes in the Angolan companies Unitel (25%) and Multitel—Serviços de Telecomunicações Lda. (40%), as well as credit rights of dividends declared by Unitel and already past due and a set of rights resulting from the final decision rendered by the Arbitration Court installed under the Arbitration Rules of the International Chamber of Commerce (“ICC”), within the scope of the arbitration initiated by PT Ventures at the ICC against the other Unitel shareholders, as disclosed by the Company in a Material Fact Notice on February 28, 2019. The total amount of the transaction was US$1 billion, of which (i) US$699.1 million was paid to Africatel by Sonangol on January 24, 2020; (ii) Africatel was paid US$60.9 million prior to the transfer of PT Ventures’ shares; and (iii) US$240 million, fully guaranteed by a guarantee letter issued by a prime bank, will be paid unconditionally by Sonangol to Africatel until July 31, 2020, with a minimum monthly flow of US$40 million assured to Africatel as from February 2020. The Company reiterates that the contractually assured flow was duly met in February and March 2020 by Sonangol. As at December 31, 2019, the assets from the investment held in PT Ventures are measured substantially at the fair value of the investment for sale. (b) Commitment to sell a property As disclosed to the market on January 30, 2020 and February 26, 2020, the Company sold a property it owned, located at Rua General Polidoro nº 99, Botafogo, in the city of Rio de Janeiro, to Alianza Gestão de Recursos Ltda., for the amount of R$120.5 million, on February 21, 2020, as part of its project to sell noncore assets, as set forth by the Company’s Judicial Reorganization Plan and Strategic Plan (Note 31 (b)). The operation was authorized by the Judicial Reorganization Court, after obtaining the favorable opinion of the Rio de Janeiro State Public Prosecution Office and the Judicial Administrator. Likewise, ANATEL confirmed the removal of the Property from the Company’s List of Reversible Assets. (c) Third-party expressions of interest on the Company’s Mobile business On March 10, 2020, the Company disclosed to the general market in a material fact notice, that its financial advisor, Bank of America Merrill Lynch (“BofA”) received statements from third parties expressions of interest in the Company’s mobile business. To date, however, there is no commitment from the Company or any of these third parties to proceed with such sale and no binding instrument has been entered into to this respect. Even though there may be future developments in the analysis for a potential formal negotiation process, the Company continues to analyze all the existing alternatives that may bring more efficiency to the implementation of its Strategic Plan. (d) Potential Effects of COVID-19 Since December 2019, a COVID-19 has spread throughout the world. On January 3 1 The local, national and international response to the virus is quickly developing, fluid and uncertain. During March and April of 2020, state, local and municipal authorities within Brazil promoted and enforced social isolation and quarantine measures and have enacted regulations limiting the operations of “non-essential” businesses. In mid-March 2020, Rio de Janeiro and other Brazilian states declared states of emergency. In accordance with the recommendations of the authorities, the Company transitioned a substantial majority of its employees to work from home. Although the COVID-19 pandemic has no effect on the Company historical results of operations, there are many potential effects of this pandemic on its short- and medium- term business operations and, consequently, its results of operations. In March 2020, the Company established a crisis response team to focus on ensuring the full business continuity of its operations, the health and safety of its employees, and the establishment of a formal process to monitor, analyze and respond to the potential impacts of the pandemic. As of the date of this annual report, the Company has detected few cases of COVID-19 in its employees and the human resources department monitors suspected or confirmed cases. As one a measure designed to protect its employees, the Company has instituted a “work-from-home” policy for all of its employees for whom the demands of their work permit this arrangement, constituting approximately 84% of its work force, and have been able to do so without any interruption of their activities. For its remaining employees, for example, the Company field service technicians and operators in its call centers, the Company has complied with all health care recommendations of the World Health Organization and the Brazilian Ministry of Health. The Brazilian government has determined that the telecom sector is an essential service, which allows the Company to continue its field maintenance activities without violating restrictions on movement that have generally been imposed to combat the pandemic. Although there has not been sufficient history with the Company operations under the pandemic and the related public health measures to provide significant analysis of the potential financial impact of the pandemic or the governmental and popular response to the pandemic, the Company belives that demand for telecommunications services, including services provided by the Company during the pandemic has grown significantly. In order to service this demand and to ensure continuity of its services, the Company moved quickly to activate new circuits in its backbone infrastructure and has not experienced any significant decline in the operation and reliability of its networks. Since the outbreak of the pandemic, the Company has closed its retail stores and many of its distribution channels for the Company’s mobile service have been unable to operate, although some of its physical points-of-sale, such as grocery stores, pharmacies and convenience stores, have continued to operate. As a result, the Company believes that new activations by mobile customers will be substantially reduced for the quarantine period. However, as these store closures affect all operators in the mobile business equally, the Company expects that there will be substantially reduced levels of churn during this period. In addition, the Company expects that revenue for SIM card recharges will be adversely affected for the quarantine period as the number of points-of-sale that offer these services has been substantially reduced. Since the outbreak of the pandemic, the Company has curtailed significantly its door-to-door sales channel for residential services, including broadband, but has been able to maintain its telemarketing and teleagent sales channels. The Company has experienced a significant surge in demand for its broadband services, including services delivered through its expanding FTTH network, both from residential and B2B customers as they establish remote work operations. Because its sales channels for these services depend less on physical presence in sales locations than its mobile services, the Company does not expect the reduction in new activations or upgrades in services to be affected to the same degree as in its mobile services. The Company expects that the public health measures adopted in Brazil will have significant impacts on the income and purchasing power of many of its subscribers, particularly low-income subscribers and SMEs, some of whom may cease operations, although the Company has not yet been able to gather data to analyze the extent of these impacts. In addition, the Company has begun to experience some delays in payment for its corporate and governmental customers. As a result, the Company expects an increase in late-payments, customer defaults and expected losses on trade receivables. The Company has instituted some measures to assist its customers during the pandemic, for example, providing deferrals of payment deadlines by up to 10 days upon request of its customers and entering into payment plans with some of its customers under which it will forbear the collection of interest and late charges. These measures are likely to have an adverse effect on revenue and operating cash flow during the period over which they are effective, although the Company does not have sufficient experience with the effects of these measures to reliably estimate the quantitative effects of these measures. The Company continues to monitor the effects of COVID-19 and the public health measures adopted in Brazil on its results of operations and cash flows to assess whether any of its assets have been impaired. As of the date of this annual report, the Company does not have sufficient history with its operations under the pandemic and the related public health measures to assess whether any impairment of its assets will be required. The Company does not expect significant negative effects on its ongoing maintenance activities and FTTH expansion project as a result of the pandemic and the public health measures introduced to combat the pandemic. The Company has experienced some negative effects relating to the deployment of field teams, primarily related to the difficulty of obtaining lodging and meals and, in some instances, the difficulty in arranging transportation between cities, due to the public health restrictions. However, as a result of the determination that the telecom sector is an essential service, the general public health restrictions applicable to the population have not generally applied to the Company staff of field technicians. The Company continues to have regular communications with its equipment vendors to assess the impacts of the pandemic on their production and inventories to ensure that deliveries of equipment will continue to be made on a timely basis. As of the date of this annual report, the Company has not suffered any negative impacts in its supply chain for equipment and has not been advised that any significant disruptions are expected. |
RECONCILIATION BETWEEN U.S. GAA
RECONCILIATION BETWEEN U.S. GAAP AND IFRS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of comparative information prepared under previous GAAP [abstract] | |
RECONCILIATION BETWEEN U.S. GAAP AND IFRS | 34. RECONCILIATION BETWEEN U.S. GAAP AND IFRS The Company prepares its local financial statements in accordance with IFRS, and the pronouncements, guidelines and interpretations issued by the International Accounting Standards Board (IASB). As the company is presenting its financial statements under IFRS for SEC reporting purposes after several years of presenting them under US GAAP, it is providing a reconciliation of its 2018 and 2017 US GAAP financial statements to IFRS. ACCOUNTING DIFFERENCES BETWEEN U.S. GAAP AND IFRS The financial statements of the Company were prepared in accordance with accounting policies generally accepted in the United States of America (“U.S. GAAP”). Differences between these accounting policies and practices adopted in International Financial Reporting Standard—IFRS, where applicable to Oi, are summarized below: (a) Impairment of long-lived assets In accordance with FASB ASC 360, long-lived assets, such as property, plant, and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. In accordance with IAS 36 Impairment of assets, such as property, plant, and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or group of assets to the fair value of the asset or group of assets. Therefore, regarding impairment of long-lived assets there is an accounting difference between U.S. GAAP and IFRS namely the recognition of impairment under IFRS. On December 31, 2018, under U.S. GAAP, no impairment losses were recognized and under IFRS an accumulated provision for impairment losses, amounting to R$1,226,125, were recorded in the balance sheet as a result of the difference on the impairment methodology between the two standards. The net effect on net income, as of December 31, 2018, was R$141,418, which includes the accounting differences related to the provision for impairment recorded under IFRS in amounting to R$291,807 compared no impairment losses recorded under USGAAP, and the effects of depreciation and amortization related to the acumulated effects of no recorded impairment losses under USGAAP, in amounting to R$150,389. (b) Business combinations prior to January 1, 2009 Under U.S. GAAP, for the acquisitions of interests in Pegasus, Way-TV, Since IFRS 3 Business Combinations Therefore, regarding the business combinations prior to January 1, 2009 there is an accounting difference between U.S. GAAP and IFRS namely the computation of goodwill, recognition of intangible assets and amortization of goodwill. (c) Pension plans and other post-retirement benefits The Company applies FASB ASC 715—Retirement Benefits, which requires an employer to recognize the overfunded status or funded status of a defined benefit postretirement plan as an asset or liability in its balance sheet and to recognize changes in that funded status in the year in which the changes occur through other comprehensive income. The overfunded status of the pension plans is presented as a prepaid asset. Unrecognized net gain or losses are recognized following the “10% corridor approach”. Deferred actuarial gains and losses outside the 10% corridor are amortized over the average remaining service period of active employees or, when all or almost all participants are inactive, over the average remaining life expectancy of those participants. Under IFRS, if a plan has an overfunded status, which is not expected to generate future benefits, the company does not recognize the funded status, unless in case of express authorization for offsetting with future employer contribution. Remeasurement of gains and losses, including actuarial gains and losses, must be recognized immediately in OCI and are not subsequently recognized (or recycled) into net income. Therefore, regarding pension plans and other post-retirement benefits there is an accounting difference between U.S. GAAP and IFRS namely: (i) the recognized overfunded status under U.S. GAAP, and (ii) the result from the use of the “10% corridor approach” which is not applicable under IFRS. (d) Capitalization of interest, net of amortization Under U.S. GAAP, capitalized interest is added to the individual assets and is amortized over their estimated useful lives. The Company capitalizes only interest expenses to the extent that borrowings do not exceed the balances of construction in-progress, Under IFRS, financial charges on obligations financing assets and construction works in progress are capitalized, including interest expenses and certain foreign exchange differences. Therefore, regarding capitalization of interest, net of amortization, there is an accounting difference between U.S. GAAP and IFRS namely the impact of capitalization of foreign exchange under IFRS. (e) Provision for onerous contracts Under U.S. GAAP, future losses on firmly committed executory contracts (onerous contracts) typically are not recognized. Losses are recognized only when incurred. Under IFRSs, an entity is required to recognize and measure the present obligation under an onerous contract as a provision. An onerous contract is one “in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it”. The Company is party to a telecommunications signals transmission capacity supply agreement using submarine cables that connect North America and South America. Since the agreement’s obligations exceed the economic benefits that are expected to be received throughout the agreement and the costs are unavoidable, the Company recognized in 2018, pursuant to IAS 37, an onerous obligation measured at the lowest of net output cost of the agreement brought to present value, in the amount of R$ 4,493,894. Therefore, regarding provision for onerous contracts there is an accounting difference between U.S. GAAP and IFRS namely the recognition of a provision that does not exist under U.S. GAAP. (f) Settlement of Judicial Reorganization U.S. GAAP Under U.S. GAAP, the company has applied the FASB Accounting Standards Codification (“ASC”) 852 Reorganizations in preparing its consolidated financial statements. Under ASC 852, the company adopted the following accounting procedures: • Prepetition obligations impacted by the judicial reorganization proceedings had been classified on the balance sheet as liabilities subject to compromise in 2017. These liabilities were reported as the amounts expected to be allowed by the Judicial Reorganization Court, even if they were settled for lesser amounts; • Interest accruing on unsecured debt subsequent to the date of petition is not an allowed claim and therefore has not been accrued; • Foreign currency denominated liabilities in Reais using the applicable foreign currency translation rate as of the petition date. As a result there is no foreign currency translation adjustments recorded after the petition date related to prepetition liabilities under U.S. GAAP; and Liabilities subject to compromise and other impacts from ASC 852 reorganizations As a result of the filing of the Bankruptcy Petitions, the company has applied the FASB Accounting Standards Codification (“ASC”) 852 Reorganizations The amounts initially recorded as liabilities subject to compromise were subsequently adjusted and reclassified to reflect the new legal terms and conditions established by the JRP Court and as of December 31, 2018 there are no outstanding liabilities subject to compromise. On December 31, 2018, the Company did not emerge from bankruptcy, due to certain material unsatisfied conditions, which relates to additional capital increase that occurred on January 25, 2019. As a result of the judicial reorganization proceedings in Brazil and other international jurisdictions (which are considered to be similar in all substantive respects to Chapter 11) prepetition liabilities, as shown below were classified as subject to compromise based on the assessment of these obligations following the guidance of ASC 852 Reorganizations December 31, 2018 December 31, 2017 Borrowings and financing — 49,129,547 Derivative financial instrument — 104,694 Trade payables — 2,139,312 Provision for civil contingencies—Anatel — 9,333,795 Provision for pension plan — 560,046 Other — 43,333 Provision for labor contingencies — 899,226 Provision for civil—other claims — 2,929,275 Liabilities subject to compromise (*) — 65,139,228 Reorganization items, net Transactions and events directly associated with the reorganization were required, under the guidance of ASC 852 Reorganizations, to separate disclosed and distinguished from those of the ongoing operations of the business. Under U.S. GAAP purposes the Company used the classification “Reorganization items, net” on the consolidated statements of operations to reflect expenses, gains and losses that were the direct result of the reorganization of its business. December 31, 2018 December 31, 2017 Gain on restructuring of Qualified Bonds 12,881,478 Adjustment to fair value—Borrowings and financing 13,928,661 Adjustment to present value—Anatel (AGU) and other payables 5,577,234 Anatel provision for contingencies (1,568,798 ) Other provision for contingencies (a) (347,437 ) (1,146,458 ) Income from short-term investments 174,281 713,276 Professional fees (b) (633,676 ) (369,938 ) Total reorganization items, net 31,580,541 (2,371,918 ) Recognition of the effects of the ratification of the Judicial Reorganization Plan under U.S. GAAP Under U.S. GAAP, as a result of the approval of JRP at the GCM meeting held on December 19 and 20, 2017 and its subsequent ratification by the Judicial Reorganization Court on January 8, 2018, and published on the Official Gazette on February 5, 2018, the Company’s management, based on the terms and conditions of the JRP, recorded the effects caused by the restructuring/novation of the prepetition liabilities subject to the Judicial Reorganization in the consolidated financial statements for year ended December 31, 2018. The movements in the restructured prepetition liabilities and the accounting adjustments made for initial recognition of the terms and conditions set forth by the approved and ratified JRP, including the effects on the fair value of these liabilities pursuant to the criteria of ASC 820, and applicable GAAP, are as follow: December 31, U.S. GAAP Reclassifications Mediations Haircut (i) Equity (ii) Fair value / Financial December 31, U.S. GAAP Liabilities subject to compromise Bondholders 32,314,638 (32,314,638 ) — — — — — — BNDES 3,326,952 (3,326,952 ) — — — — — — Other Borrowings and financing 13,487,957 (13,487,957 ) — — — — — — Derivative financial instrument 104,694 (104,694 ) — — — — — — Trade payables 2,139,312 (2,139,312 ) — — — — — — Provision for civil contingencies—Anatel 9,333,795 (9,333,795 ) — — — — — — Provision for pension plan 560,046 (560,046 ) — — — — — — Other 43,333 (43,333 ) — — — — — — Provision for labor contingencies 899,226 (1,036,172 ) 136,946 — — — — — Provision for civil—other claims 2,929,275 (2,218,538 ) (710,737 ) — — — — — Total—Liabilities subject to compromise 65,139,228 (64,565,437 ) (573,791 ) — — — — — Bondholders — 32,314,638 (161,600 ) (11,054,800 ) (11,613,980 ) (4,807,262 ) 2,035,699 6,712,695 BNDES – Borrowings and financing — 3,326,952 — — — — 289,122 3,616,074 Other Borrowings and financing — 13,592,651 50,375 — — (9,121,399 ) 1,599,510 6,121,137 Anatel (AGU) and other trade payables — 10,588,661 445,077 (1,826,678 ) — (5,577,234 ) 164,784 3,794,610 Provision for labor, civil and Anatel contingencies — 4,182,489 56,975 — — — 149,173 4,388,637 Provision for pension plan — 560,046 — — — — 14,679 574,725 Total—Liabilities not subject to compromise — 64,565,437 390,827 (12,881,478 ) (11,613,980 ) (19,505,895 ) 4,252,967 25,207,878 (i) Represent gains on restructuring of borrowings and financings, trade payables owing to ANATEL-AGU (ii) Represent the fair value of shares issued in partial settlement of the Senior Notes. (iii) The financial liabilities have been adjusted to fair value according to the criteria of ASC 852 as of the time at which it has reclassified each of the financial liabilities that were legally affected by the JRP from liabilities subject to compromise to borrowings and financings or trade payables. It was calculated taking into consideration the contractual flows provided for in the JRP, discounted using rates that range from 12.6% per year to 16.4% per year, depending on the maturities and currency of each instrument. (iv) Represent the contractual interest and foreign currency fluctuation calculated after completed the financial debt restructuring and other claims restructuring in the terms and conditions provided in the JRP. IFRS Under IFRS, there is no specific guidance for accounting Bankruptcy Petitions as there is under U.S. GAAP. Financial liabilities were recorded as before the Bankruptcy Petition, including the accrual of interest based on the contracts, the recognition of foreign currency translation and the recognition of provisions based on expected payment cash outflow (IAS 37 for liability provisions). Liabilities subject to compromise were classified on the balance sheet as Current Liabilities. Any differences between the settlement of the liability and its carrying amount were reorganized upon settlement of the JRP and recorded in the Consolidated Income Statement at such time. Because all liabilities subject to compromise were settled in 2018 under the conditions of the JRP, no GAAP differences compared to IFRS exist for the balances of liabilities after the settlement date. Therefore, regarding settlement of judicial reorganization the only accounting difference between U.S. GAAP and IFRS are namely: (i) the impacts of settlement and fair value of liabilities for adopting ASC 852 under U.S. GAAP that needs to be excluded under IFRS; and (ii) the gain recognition on reversal of interest and foreign currency on loans and financings under IFRS. The following is a summary of the Judicial Reorganization adjustments to net income for the year ended December 31, 2018 and 2017: Judicial reorganization December 31, December 31, Settlement for lesser amounts of prepetition obligations and fair value recognition under U.S. GAAP (6,527,238 ) 73,135 Gain on reversal of interest and foreign currency on loans and financings under IFRS 5,196,222 6,429,611 (1,331,016 ) (6,502,746 ) (g) Deferred income tax This relates to the impact of recalculation of the deferred tax assets and liabilities considering the adjusted balances of accounts and related impacts on net income and the revised valuation allowance based on the reassessed schedule of expected generation of future taxable income under IFRS. SUMARY OF ACCOUNTING DIFFERENCES BETWEEN U.S. GAAP AND IFRS The reconciliations below quantify the effect of the U.S. GAAP to IFRS on the indicated dates: Reconciliation Equity Net income December 31, December 31, December 31, December 31, Under U.S.GAAP 29,199,496 (9,684,061 ) 27,393,837 (4,027,661 ) Impairment of long-lived assets (a ) (1,226,125 ) (1,084,707 ) (141,418 ) 5,526,563 Business combinations prior to January 1, 2009 (b ) 44,981 40,859 4,122 4,313 Pension plans and other post-retirement benefits (c ) (689,574 ) (1,598,792 ) (115,080 ) (197,700 ) Capitalization of interest, net of amortization (d ) 60,928 62,711 (1,780 ) (9,322 ) Provision for onerous contracts (e ) (4,493,895 ) (4,493,895 ) Settlement of judicial reorganization (f ) 1,331,016 (1,331,016 ) (6,502,746 ) Deferred income tax (g ) (2,579,548 ) 3,300,785 (1,449,609 ) Under IFRS 22,895,811 (13,512,522 ) 24,615,555 (6,656,162 ) Reconciliation of balance sheet as at December 31, 2018 USGAAP Impairment (a) Business (b) Pension plans (c) Capitalization Provision for (e) Settlement of (f) Deferred (g) Reclassifications IFRS Cash and cash equivalents 4,385,329 4,385,329 Short-term investments 201,975 201,975 Accounts receivable 6,516,555 6,516,555 Recoverable income taxes 621,246 621,246 Other taxes 803,252 803,252 Judicial Deposits 1,715,934 1,715,934 Inventories 317,503 317,503 Prepaid expenses 743,953 743,953 Pension plan assets 4,880 4,880 Held-for-sale 4,923,187 4,923,187 Other assets 1,079,670 1,079,670 Total current assets 21,313,484 — — — — — — — 21,313,484 Long-term investments 36,987 36,987 Other taxes 715,976 715,976 Deferred tax assets 23,050 23,050 Judicial Deposits 7,018,786 7,018,786 Investments 117,840 117,840 Property, plant and equipment, net 28,468,798 (228,244 ) 124,081 60,928 28,425,563 Intangible assets 8,025,442 (997,881 ) (79,115) 6,948,446 Pension plan assets 753,827 (689,574) 64,253 Prepaid expenses 522,550 522,550 Other assets 773,411 (522,549) 250,862 Total non-current 45,934,117 (1,226,125 ) 44,966 (689,574) 60,928 — — — 1 44,124,313 Total assets 67,247,601 (1,226,125 ) 44,966 (689,574) 60,928 — — — 1 65,437,797 Trade payables 5,225,862 (201,602) 5,024,260 Trade payables – Subject to the JRP 201,602 201,602 Borrowings and financing 672,894 672,894 Payroll, related taxes and benefits 906,655 906,655 Income taxes payable 27,026 27,026 Other taxes 1,033,868 1,033,868 Tax financing program 142,036 142,036 Dividends and interest on capital 6,168 6,168 Provision 680,542 680,542 Unearned revenues 229,497 (229,497) Advances from customers 73,094 (73,094) Licenses and concessions payable 85,619 85,619 Liabilities associated to held-for-sale 526,870 526,870 Other payables 629,939 449,389 302,591 1,381,919 Total current liabilities 10,240,070 — — — — 449,389 — — 10,689,459 Trade payables – Subject to the JRP 3,593,008 3,593,008 Borrowings and financing 15,777,012 15,777,012 Other taxes 628,716 628,716 Tax financing program 411,170 411,170 Provision 4,358,178 4,358,178 Provision for pension plans 579,122 579,122 Unearned revenues 1,687,073 (1,687,073) Advances from customers 142,134 (142,134) Other payables 631,622 (13) 4,044,505 1,829,207 6,505,321 Total non-current 27,808,035 — — 13 — — 4,044,505 — — 31,852,527 Total liabilities 38,048,105 — (13) — — 4,493,894 — — 42,541,986 Shareholders’ equity attributable to the Company and subsidiaries 28,956,006 (1,226,125 ) 44,979 (689,574) 60,928 (4,493,894) — — 22,652,320 Non-controlling 243,490 1 243,491 Total shareholders’ equity 29,199,496 (1,226,125 ) 44,979 (689,574) 60,928 (4,493,894) — — 1 22,895,811 Total liabilities and shareholders’ equity 67,247,601 (1,226,125 ) 44,966 (689,574) 60,928 — — — 1 65,437,797 Reconciliation of net income for the year ended December 31, 2018 USGAAP Impairment of long-lived Business Pension Capitalization Provision Settlement of Deferred Reclassification IFRS Net operating revenue 22,060,014 22,060,014 Cost of sales and services (15,822,732 ) 150,389 4,121 (45,457 ) (12,729 ) 141,758 (594,450 ) (16,179,100 ) Gross profit 6,237,282 150,389 4,121 (45,457 ) (12,729 ) 141,758 — — (594,450 ) 5,880,914 Operating (expenses) income Selling expenses (4,478,352 ) (28,655 ) 372,977 281,028 (3,853,002 ) General and administrative expenses (2,697,865 ) (40,853 ) (2,738,718 ) Other operating income 2,204,134 2,204,134 Other operating expenses 417,159 (291,807 ) (115 ) (4,883,620 ) (112,491 ) (1,890,712 ) 6,761,586 Reorganization items, net 31,580,541 (31,580,541 ) Loss before financial income (expenses) and taxes 31,058,765 (141,418 ) 4,121 (115,080 ) (12,729 ) (4,741,862 ) (31,693,032 ) 372,977 (5,268,258 ) Financial income (expenses), net (4,012,067 ) 10,949 247,968 30,362,016 26,608,866 Profit (loss) before taxes 27,046,698 (141,418 ) 4,121 (115,080 ) (1,780 ) (4,493,894 ) (1,331,016 ) 372,977 21,340,608 Current income tax 115,706 115,706 Income tax expense (current and deferred) 347,139 2,927,808 (115,706 ) 3,159,241 Profit (loss) for the year 27,393,837 (141,418 ) 4,121 (115,080 ) (1,780 ) (4,493,894 ) (1,331,016 ) 3,300,785 24,615,555 Profit (loss) attributable to owners of the Company 27,369,422 (141,418 ) 4,121 (115,080 ) (1,780 ) (4,493,894 ) (1,331,016 ) 3,300,785 24,591,140 Profit (loss) attributable to non-controlling 24,415 24,415 Reconciliation of net income for the year ended December 31, 2017 USGAAP Impairment of long-lived Business Pension Capitalization Provision Settlement of Deferred Reclassification IFRS Net operating revenue 23,789,654 23,789,654 Cost of sales and services (15,676,216 ) 779,368 4,313 (82,045 ) (11,670 ) (682,403 ) (15,668,653 ) Gross profit 8,113,438 779,368 4,313 (82,045 ) (11,670 ) — — — (682,403 ) 8,121,001 Operating (expenses) income Selling expenses (4,399,936 ) (42,901 ) 340,281 (4,102,556 ) General and administrative expenses (3,064,252 ) (72,556 ) (3,136,808 ) Other operating income 1,985,101 1,985,101 Other operating expenses (1,043,922 ) 4,747,195 (198 ) (7,287,862 ) (1,642,979 ) (5,227,766 ) Reorganization items, net (2,371,918 ) 2,371,918 Loss before financial and taxes (2,766,590 ) 5,526,563 4,313 (197,700 ) (11,670 ) — (4,915,944 ) — (2,361,028 ) Financial expenses, net (1,612,058 ) 2,348 (1,586,802 ) (3,196,512 ) Profit (loss) before taxes (4,378,648 ) 5,526,563 4,313 (197,700 ) (9,322 ) — (6,502,746 ) — (5,557,540 ) Current income tax (906,080 ) (906,080 ) Income tax expense (current and deferred) 350,987 (1,449,609 ) 906,080 (192,542 ) Loss for the year (4,027,661 ) 5,526,563 4,313 (197,700 ) (9,322 ) — (6,502,746 ) (1,449,609 ) (6,656,162 ) Loss attributable to owners of the Company (3,736,518 ) 5,526,563 4,313 (197,700 ) (9,322 ) 0 (6,502,746 ) (1,449,609 ) (6,365,019 ) Loss attributable to non-controlling (291,143 ) (291,143 ) Reconciliation of comprehensive income for the year ended December 31, 2018 USGAAP Impairment (a) Business (b) Pension (c) Capitalization (d) Provision (e) Settlement of (f) Deferred (g) IFRS Profit (loss) for the year 27,393,837 (141,418 ) 4,121 (115,080 ) (1,780 ) (4,493,894 ) (1,331,016 ) 3,300,785 24,615,555 Other comprehensive income (loss) Foreign currency translation adjustments (110,098 ) (110,098 ) (110,098) — — — — — — — (110,098) Pension and other postretirement benefit plans: Net actuarial loss from continuing operations (918,782 ) 1,024,297 105,515 Pension and other postretirement benefit plans (918,782 ) — — 1,024,297 — — — — 105,515 — — — — — — — — — Income tax effect on other comprehensive income (loss): Pension and other postretirement benefit plans 312,386 (348,261 ) (35,875 ) 312,386 — — (348,261) — — — — (35,875) Total comprehensive income (loss) for the year 26,677,343 (141,418 ) 4,121 560,956 (1,780 ) (4,493,894 ) (1,331,016 ) 3,300,785 24,575,097 Comprehensive loss attributable to non-controlling (49,966 ) (49,966 ) Comprehensive income (loss) attributable to controlling shareholders 26,727,309 (141,418 ) 4,121 560,956 (1,780 ) (4,493,894 ) (1,331,016 ) 3,300,785 24,625,063 Reconciliation of comprehensive income for the year ended December 31, 2017 USGAAP Impairment (a) Business (b) Pension (c) Capitalization (d) Provision (e) Settlement of (f) Deferred (g) IFRS December 31, Loss for the year (4,027,661 ) 5,526,563 4,313 (197,700 ) (9,322 ) — (6,502,746 ) (1,449,609 ) (6,656,162 ) Other comprehensive income (loss) Foreign currency translation adjustments 165,713 (1,943 ) 163,770 Decrease of interest shares in subsidiary (374,130 ) 374,130 — (208,417) — — — — — — 372,187 163,770 Pension and other postretirement benefit plans: Net actuarial loss from continuing operations (130,846 ) 161,099 30,253 Pension and other postretirement benefit plans (130,846 ) — — 161,099 — — — — 30,253 Income tax effect on other comprehensive income (loss): Pension and other postretirement benefit plans 32,157 (42,528 ) (10,371 ) 32,157 — — (42,528) — — — — (10,371) Total comprehensive (loss) for the year (4,334,767 ) 5,526,563 4,313 (79,129 ) (9,322 ) — (6,502,746 ) (1,077,422 ) (6,472,510 ) Comprehensive loss attributable to non-controlling (64,153 ) (205,044 ) (269,197 ) Comprehensive loss attributable to controlling shareholders (4,270,614 ) 5,526,563 4,313 (79,129 ) (9,322 ) — (6,502,746 ) (872,378 ) (6,203,313 ) Reconciliation of cash flow for the year ended December 31, 2018 USGAAP Impairment (a) Business (b) Pension (c) Capitalization (d) Provision (e) Settlement of (f) Deferred (g) Reclassification IFRS Operating activities Profit (loss) for the year 27,393,837 (141,418 ) 4,121 (115,080 ) (1,780 ) (4,493,894 ) (1,331,016 ) 3,300,785 24,615,555 Income tax expenses (347,139 ) — — — — — — (2,927,808 ) (3,274,947 ) Profit (loss) before income taxes 27,046,698 (141,418 ) 4,121 (115,080 ) (1,780 ) (4,493,894 ) (1,331,016 ) 372,977 21,340,608 Income tax reclassification 347,139 (347,139 ) — Adjustments to reconcile net income (loss) to cash provided by operating activities Loss (gain) on financial instruments 3,415,354 (10,949 ) (389,726 ) (5,080,135 ) 22,099 (2,043,357 ) Gains of restructuring of third-party borrowings — (11,054,800 ) (11,054,800 ) Fair value adjustment to borrowings and financing — (13,928,659 ) (13,928,659 ) Present value adjustment to other liabilities — (1,167,043 ) (1,167,043 ) Depreciation and amortization 5,952,905 (150,389 ) (4,121 ) 12,729 (1 ) 5,811,123 Onerous obligation 4,883,620 4,883,620 Impairment of held-for-sale (292,799 ) 292,799 Estimated loss on doubtful debts 1,224,248 (372,977 ) 851,271 Provisions (reversals) (19,465 ) 112,491 93,026 Provision for pension plans (114,813 ) 115,080 267 Impairment losses — 291,807 (49 ) 291,758 Deferred tax expense (benefit) (231,433 ) 231,433 — Reorganization items, net (31,580,541 ) 31,580,541 — Equity in investees 13,492 13,492 Loss on disposal of capital assets 215,398 215,398 Concession Agreement Extension Fee—ANATEL 68,333 68,333 Employee and management profit sharing 237,253 237,253 Monetary correction to provisions/(reversals) 226,870 226,870 Monetary correction to tax refinancing program 28,079 28,079 Other (637,518 ) (637,518 ) Changes in assets and liabilities Accounts receivable (365,771 ) (365,771 ) Inventories (48,280 ) (48,280 ) Taxes 121,951 121,951 Held-for-trading financial assets (1,191,664 ) (1,191,664 ) Redemption of held-for-trading financial assets 1,103,920 1,103,920 Trade payables (860,900 ) (860,900 ) Payroll, related taxes and benefits (253,902 ) (253,902 ) Provisions (434,974 ) (434,974 ) Net increase in income taxes refundable and payable (799,189 ) 115,706 683,483 Employee and management profit sharing 237,253 (237,253 ) Changes in assets and liabilities held for sale (257,643 ) (257,643 ) Other assets and liabilities (183,838 ) 868,621 (159,123 ) 525,660 Financial charges paid - debt (19,215 ) (19,215 ) Financial charges paid - other (2,884 ) (2,884 ) Income tax and social contribution paid—Company (495,038 ) (495,038 ) Income tax and social contribution paid—third parties (188,445 ) (188,445 ) Net cash provided by (used in) operating activities 2,862,536 — — — — — — — — 2,862,536 Investing activities Capital expenditures (5,246,241 ) (5,246,241 ) Proceeds from the sale of investments, tangibles and intangibles 22,276 22,276 Judicial deposits (775,953 ) (775,953 ) Redemption of judicial deposits 1,083,043 1,083,043 Net cash used in by in investing activities (4,916,875 ) — — — — — — — — (4,916,875 ) Financing activities Repayment of principal of borrowings, financing and derivatives (161,884 ) (161,884 ) Payments of obligation for licenses and concessions (1,491 ) (1,491 ) Payments of obligation for tax refinancing program (265,495 ) (265,495 ) Payment of dividends and interest on capital (54 ) (54 ) Exercise of warrants 4,580 4,580 Net cash used in financing activities (424,344 ) — — — — — — — — (424,344 ) Foreign exchange differences on cash and cash equivalents 1,328 1,328 Cash flows for the year (2,477,355 ) — — — — — — — — (2,477,355 ) Cash and cash equivalents beginning of year 6,862,684 6,862,684 Cash and cash equivalents end of year 4,385,329 — — — — — — — — 4,385,329 Reconciliation of cash flow for the year ended December 31, 2017 USGAAP Impairment (a) Business (b) Pension (c) Capitalization (d) Provision (e) Settlement of (f) Deferred (g) Reclassification IFRS December 31, Operating activities Loss for the year (4,027,661 ) 5,526,563 4,313 (197,700 ) (9,322 ) — (6,502,746 ) (1,449,609 ) (6,656,162 ) Income tax (350,987 ) — — — — — — 1,449,609 1,098,622 Loss before income taxes (4,378,648 ) 5,526,563 4,313 (197,700 ) (9,322 ) — (6,502,746 ) — (5,557,540 ) Income tax reclassification 350,987 (350,987 ) — Adjustments to reconcile net income (loss) to cash provided by operating activities Loss (gain) on financial instruments (1,115,823 ) (2,348 ) 6,234,447 3,927 5,120,203 Present value adjustment to other liabilities (4,873,000 ) (4,873,000 ) Depreciation and amortization 5,881,302 (779,368 ) (4,313 ) 11,670 1 5,109,292 Impairment (reversal) of held-for-sale 267,008 (267,008 ) — Estimated loss on doubtful debts 784,403 784,403 Provisions 143,517 7,218,787 7,362,304 Provision for pension plans (197,141 ) 197,700 559 Impairment losses (reversal) 46,534 (4,747,195 ) (46,480 ) (4,747,141 ) Deferred tax expense (benefit) (1,257,068 ) 1,257,068 — Reorganization items, net 2,371,918 (2,371,918 ) Equity in investees 433 433 Loss on disposal of capital assets 211,735 211,735 Concession Agreement Extension Fee—ANATEL 88,658 88,658 Employee and management profit sharing 298,789 298,789 Monetary correction to provisions/(reversals) 674,668 674,668 Monetary correction to tax refinancing program 27,294 27,294 Other 449,722 449,722 Changes assets and liabilities Accounts receivable (253,469 ) (253,469 ) Inventories 173,283 173,283 Taxes 477,164 477,164 Held-for-trading financial assets (601,200 ) (601,200 ) Redemption of held-for-trading financial assets 775,456 775,456 Trade payables (374,003 ) (374,003 ) Payroll, related taxes and benefits (42,727 ) (42,727 ) Provision for contingencies (114,336 ) (312,313 ) (426,649 ) Net increase in income taxes refundable and payable 399,182 (906,081 ) 506,899 — Provision for pension plans 54 (54 ) — Employee and management profit sharing 298,789 (298,789 ) — Changes in assets and liabilities held for sale 701,416 701,416 Other 238,443 606,743 (1,312,253 ) (467,067 ) Financial charges paid - debt (1,412 ) (1,412 ) Financial charges paid - other (2,515 ) (2,515 ) Income tax and social contribution paid—Company (314,162 ) (314,162 ) Income tax and social contribution paid—third parties (192,736 ) (192,736 ) Net cash provided by operating activities 4,401,758 — — — — — — — — 4,401,758 — Investing activities Capital expenditures (4,344,238 ) (4,344,238 ) Proceeds from the sale of property, plant and equipment 5,016 5,016 Judicial deposits (425,563 ) (425,563 ) Redemption of judicial deposits 343,129 343,129 Other Net cash used in by in investing activities (4,421,656 ) — — — — — — — — (4,421,656 ) Financing activities Repayment of principal of borrowings, financing (659 ) (659 ) Payments of obligation for licenses and concessions (104,449 ) (104,449 ) Payments of obligation for tax refinancing program (226,776 ) (226,776 ) Share buyback (300,429 ) (300,429 ) Payment of dividends and interest on capital (59,462 ) (59,462 ) Net cash used in financing activities (691,775 ) — — — — — — — — (691,775 ) Foreign exchange differences on cash and cash equivalents 11,106 (1 ) 11,105 Cash flows for the year (700,568 ) — — — — — — — (1 ) (700,568 ) Cash and cash equivalents beginning of year 7,563,251 1 7,563,252 Cash and cash equivalents end of year 6,862,684 — — — — — — — — 6,862,684 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Reporting basis | (a) Reporting basis The financial statements have been prepared based on the historic cost, except for certain financial instruments measured at their fair values, as described in the accounting policies in item (b) of the accounting policies below. The preparation of financial statements requires the use of certain critical accounting estimates and the exercise of judgment by the Company’s management in the application of the Group’s accounting policies. Those areas that involve a higher degree of judgment or complexity or areas where assumptions and estimates are significant are disclosed in item (c) below. Consolidated Financial Statements The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) , and the pronouncements, guidelines and interpretations issued by the International Accounting Standards Board (IASB), effective on December 31, 2019, which are the same followed for the financial statements for the year ended December 31, 2018. The Company is presenting its financial statements under IFRS for SEC reporting purposes after several years of presenting them under accounting policies generally accepted in the United States of America (“U.S. GAAP”). The accounting differences between U.S. GAAP and IFRS and the reconciliation of these accounting polices and practices are presented in Note 34. Management asserts that all relevant information related to the financial statements, which corresponds to the information it uses while managing the Company, has been disclosed in this financial information. |
Consolidation criteria of subsidiaries by the full consolidation method | Consolidation criteria of subsidiaries by the full consolidation method Full consolidation was prepared in accordance with IFRS 10—Consolidated Financial Statements and incorporates the financial statements of the Company’s direct and indirect subsidiaries. The main consolidation procedures are as follows: • the balances of assets, liabilities, income and expenses are consolidated, according to their accounting nature; • intragroup assets and liabilities and material revenue and expenses are eliminated; • investments and related interests in the equity of subsidiaries are eliminated; • non-controlling • exclusive investment funds (Note 8) are consolidated; The assets and liabilities related to the operations in Africa are consolidated and stated in a single line item of the balance sheet as held-for-sale operati o s |
Functional and presentation currency | Functional and presentation currency The Company and its subsidiaries operate mainly as telecommunications industry operators in Brazil, Africa, and Asia, and engage in activities typical of this industry. The items included in the financial statements of each group company are measured using the currency of the main economic environment where it operates (“functional currency”). The individual and consolidated financial statements are presented in Brazilian reais (R$), which is the Company’s functional and presentation currency. |
Transactions and balances | Transactions and balances Foreign currency-denominated transactions are translated into the functional currency using the exchange rates prevailing on the transaction dates. Foreign exchange gains and losses arising on the settlement of the transaction and the translation at the exchange rates prevailing at yearend, related foreign currency-denominated monetary assets and liabilities are recognized in the income statement, except when qualified as hedge accounting and, therefore, deferred in equity as cash flow hedges. |
Group companies with a different functional currency | Group companies with a different functional currency The profit or loss and the financial position of all Group entities, none of which uses a currency from a hyperinflationary economy, whose functional currency is different from the presentation currency are translated into the presentation currency as follows: • assets and liabilities are translating at the rate prevailing at the end of the reporting period; • revenue and expenses disclosed in the statement of profit or loss are translated using the average exchange rate; • all the resulting foreign exchange differences are recognized as a separate component of equity in other comprehensive income; and • goodwill and fair value adjustments, arising from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rate. As at December 31, 2019 and 2018, the foreign currency-denominated assets and liabilities were translated into Brazilian reais using mainly the following foreign exchange rates: Closing rate Average rate Currency 2019 2018 2019 2018 Euro 4.5305 4.4390 4.4159 4.3094 US dollar 4.0307 3.8748 3.9461 3.6558 Cape Verdean escudo 0.0411 0.0403 0.0401 0.0391 Sao Tomean dobra 0.000192 0.000185 0.000188 0.000177 Kenyan shilling 0.0398 0.0381 0.0387 0.0361 Namibian dollar 0.2878 0.2698 0.2732 0.2764 Mozambican metical 0.0631 0.0627 0.0627 0.0601 Angolan kwanza 0.0084 0.0126 0.0111 0.0147 |
Segment reporting | Segment reporting The information about operating segments is presented consistently with the internal report provided to the Company’s main decision-making body, its Board of Directors. Management monitors and tracks performance of each of the Company’s services offerings based on the revenues of those services and the results of operations are reviewed on a consolidated basis with regard to the resources to be allocated to assess their performance and for strategic decision-making (Note 28). |
Business combinations | Business combinations The Company uses the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred, and the equity instruments issued. The consideration transferred includes the fair value of assets and liabilities resulting from a contingent consideration contract, where applicable. The identifiable assets acquired and the liabilities and contingent liabilities assumed in a business combination are measured initially measured as their fair values at the date of acquisition. The Company depreciates amounts recognized based on the appreciation of the acquired assets, according to the useful lives of the underlying assets, and tests such assets to determine any asset impairment losses when there is evidence of impairment; on the other hand, the Company tests for impairment amounts based on future profitability (goodwill) on an annual basis. |
Cash and cash equivalents | Cash and cash equivalents Comprise cash and imprest cash fund, banks, and highly liquid short-term investments (usually maturing within less than three months), immediately convertible into a known cash amount, and subject to an immaterial risk of change in value, which are stated at fair value at the end of the reporting period and which do not exceed their market value, and whose classification is determined as shown below (Note 8). |
Financial assets | Financial assets Financial assets are classified according to their purpose into: (i) amortized cost; (ii) fair value through other comprehensive income; and (iii) fair value through profit or loss. The Company classifies its financial assets into the following measurement categories: (1) assets measured at amortized cost—i.e., financial assets that meet the following conditions: (i) the business model under which financial assets are held to obtain contractual cash flows; and (ii) the contractual terms of the financial asset generate, on specified dates, cash flows that are only payments of principal and interest on the outstanding principal (accounts receivables, loans and cash equivalents). Amortized cost is written down by impairment losses; (2) financial assets at fair value through other comprehensive income. Interest income is calculated using the effective interest method, foreign exchange gains and losses, and impairment are recognized in profit or loss. Other net earnings (losses) are recognized in other comprehensive income. Upon derecognition, accumulated losses in other comprehensive income are reclassified to profit or loss; and (3) financial assets at fair value through profit or loss. Net earnings (losses), including interest, are recognized directly in profit or loss. |
Accounts receivable | Accounts receivable Accounts receivable from telecommunications services provided are stated at the tariff or service amount on the date they are provided and do not differ from their fair values. These receivables also include receivables from services provided and not billed by the end of the reporting period and receivables related to handset, SIM cards, and accessories. The loss allowance for trade receivables is measured at an amount equal to the life-time expected credit losses as allowed for by IFRS 9 (Note 9). |
Non-current assets held for sale | Non-current Non-current A discontinuing operation is a component of an entity or a business unit that can be clearly distinguished operationally from the rest of the Company. The classification of a discontinuing operation is made when the operation is sold or meets the criteria to be classified as held for sale (Note 31). |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at cost of purchase or construction, less accumulated depreciation. Historical costs include expenses directly attributable to the acquisition of assets. They also include certain costs on facilities, when it is probable that the future economic benefits related to such costs will flow into the Company, and asset dismantlement, removal and restoration costs. The borrowings and financing costs directly attributable to the purchase, construction or production of a qualifying asset are capitalized in the initial cost of such asset. Qualifying assets are those that necessarily require a significant time to be ready for use. Subsequent costs are added to the carrying amount as appropriate, when, and only when, these assets generate future economic benefits and can be reliably measured. The residual balance of the replaced asset is derecognized. Maintenance and repair costs are recorded in profit or loss for the period when they are incurred, and they are capitalized when, and only when, they clearly represent an increase in installed capacity or the useful lives of assets. Assets under finance leases are recorded in property, plant and equipment at the lower of fair value or the present value of the minimum lease payments, from the initial date of the agreement. Depreciation is calculated on a straight-line basis, based on the estimated useful lives of the assets, which are annually reviewed by the Company (Note 16). |
Intangible assets | Intangible assets Acquired intangible assets with finite useful lives are recognized at cost, less amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over the asset’s estimated useful life. The estimated useful life and method of amortization are reviewed at the end of each annual reporting period, and the effect of any changes in estimates is accounted for on a prospective basis. Intangible assets with indefinite useful lives are carried at cost less accumulated impairment losses. Software licenses purchased are capitalized based on the costs incurred to purchase the software and make it ready for use. Software maintenance costs are expensed as incurred. Regulatory licenses related to the merged capital gains are amortized over the STFC concession period. The other regulatory licenses for the operation of the mobile telephony services are recognized at cost of acquisition and amortized over the effective period of the related licenses (Note 17). |
Impairment of non-financial asset | Impairment of non-financial asset Assets are tested for impairment whenever events or changes in circumstances indicate that their carrying amounts might be impaired. Impairment losses, if any, are recognized in the amount by which the carrying amount of an asset exceeds its recoverable value. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used. For impairment test purposes, assets are grouped into the smallest identifiable group for which there is a cash-generating unit (CGU), which is identified pursuant to the operating segment (Note 28). For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company makes an estimate of recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit or loss. The following criteria are also applied in assessing impairment of specific assets. These calculations required the use of judgments and assumptions that may be influenced by different external and internal factors, such as economic trends, industry trends and interest rates, changes in business strategies, and changes in the type of services and products provided by the Company to the market. The use of different assumptions can significantly change the financial information. In July 2019, the Company disclosed its Strategic Plan, focused on improving operating and financial performance, using a sustainable business model that aims at maximizing the Company’s value in the context of judicial reorganization. Based on the Strategic Plan, the Company conducted an impairment test of its long-lived assets and identified an impairment loss of R$2,111 million driven basically by the following: (i) revision of said plan; and (ii) increased market competitiveness, mainly in the residential market, intensifying the drop in the revenues from fixed telephony and DTH services. The Company used the cash flow forecasts described in the Strategic Plan. These forecasts cover a ten-year ( Pursuant to IAS 36, an impairment loss is to be allocated to write down the carrying amount of the cash generating unit’s assets, which is allocated to the regulatory licenses (Notes 5 and 17). |
Adjustment to present value | Adjustment to present value The Company measures its financial assets and financial liabilities to identify instances of applicability of the discount to present value which represents one of the appropriate method to calculate the fair value for some assets and liabilities transactions. For recognition purposes, the measurement of an asset/liability to present value is calculated taking into consideration the contractual cash flows and stated interest rates, and the interest rate of liabilities in certain cases. Generally, when applicable, the discount rate used is the average return rate on investments for financial assets or interest charged on Company borrowings for financial liabilities. The balancing item is the asset or liability that has originated the financial instrument, when applicable, and the deemed borrowing costs are allocated to the Company’s profits over the transaction term. Under the terms and conditions of the JRP, certain balances of debt, trade payables and contingencies involving ANATEL (Note 18) were adjusted to fair value on the date of the novation of prepetition liabilities, pursuant to the requirements of IFRS 9, equivalent to the present value at the time, calculated based on an internal valuation that took into consideration the cash flows of these liabilities and assumptions related to the discount rates, consistent with the maturity and currency of each financial liability. The present value of the lease agreements is measured by discounting fixed future payment flows, which do not take into account projected inflation, using the incremental interest rate, according to market conditions, and is estimated using the Company-specific risk spread. Additionally, assets acquired under lease agreements, as well as unrecognized revenue generated by the assignment of communication towers are adjusted to present value. |
Impairment of financial assets | Impairment of financial assets For financial assets measured at amortized cost, the Company assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or group of financial assets is considered impaired when there is objective evidence, as a result of one or more events that occurred after the initial recognition of the asset, and that loss event had an impact on the estimated future cash flows of that asset that can be estimated reliably. In the case of equity investments classified as available for sale, a significant or prolonged decline in their fair value below cost is also objective evidence of impairment. |
Borrowings and financing | Borrowings and financing Borrowings and financing are stated at amortized cost, plus monetary correction On the restructuring/novation date of financial liabilities subject to judicial reorganization, the Company recognized loan borrowing and financing commitments at fair value pursuant to the requirements of IFRS 9. The fair value at the restructuring date of each financial liability was calculated based on an internal valuation that took into consideration the cash flows from these liabilities and assumptions related to the discount rates, consistent with the maturity and the currency of each financial liability. Transaction costs incurred are measured at amortized cost and recognized in liabilities, as a reduction to the balance of borrowings and financing, and are expensed over the relevant agreement term. |
Leases | Leases The Company recognizes a right-to-use right-to-use |
Financial liabilities and equity instruments | Financial liabilities and equity instruments Debt or equity instruments issued the Company and its subsidiaries are classified as financial liabilities or equity instruments, according to the contractual substance of the transaction. |
Provisions | Provisions The amount recognized as provision is the best estimate of the disbursement required to settle the present obligation at the end of the reporting period, based on the opinion of the management and its in-house For measuring the amount of the provisions to be recognized, the Company basically adopts two methodologies: (i) the statistical measurement model and (ii) the individual measurement model. In order to choose the methodology to be used, the Company takes into consideration, among other criteria, the number of lawsuits, the lawsuit amount, the estimated amount of a possible payment, and the nature of the lawsuit. The statistical measurement model is usually used in situations where there are (i) a significant volume of administrative or judicial proceedings with similar nature; (ii) individually the proceedings have a low amounts; and (iii) it is possible to determine a statistical model based on historic information about the rates of unfavorable sentences, the amount of the payments, and the changes in the number of proceedings. Usually in this model the Company uses the calculation of the expected amount, as prescribed by paragraph 39 of IAS 37, and requests opinions from outside specialists to assess the likelihood of a loss. The main contingencies measured under this model are labor and civil (PEX and small claims) lawsuits. The individual measurement model is usually used in situations where (i) the proceeding involves a high amount; (ii) it is reasonably possible to make an individual assessment of likelihood that a disbursement will be required; and (iii) there is no similarity in the nature of the proceedings. In this model the Company uses opinions from outside specialists in the involved areas to assess the likelihood of a loss. The main contingencies measured under this model are tax and strategic civil proceedings. The increase in the obligation as a result of the passage of time is recognized as financial expenses. |
Onerous obligation | Onerous obligation The Company recognizes a present obligation when events render the contracting of services onerous. A contract becomes onerous when: (i) the obligations under the contract exceed the economic benefits expected to be received over the contract period; and (ii) the costs are unavoidable. The Company measures the onerous obligation according to the lower net cost of fulfilling the contract, which is determined based on the lower of: (i) the cost of fulfilling the contract or (ii) the cost of any compensation or penalties derived from the noncompliance of the contract. The base assumptions used to calculate the onerous obligation must be periodically reviewed and measured whenever there are significant changes of these assumptions. |
Employee benefits | Employee benefits Pension plans: private pension plans and other postretirement benefits sponsored by the Company and its subsidiaries for the benefit of their employees are managed by two foundations. Contributions are determined based on actuarial calculations, when applicable, and charged to profit or loss on the accrual basis (Note 27). The Company and its subsidiaries have defined benefit and defined contribution plans. In the defined contribution plan, the sponsor makes fixed contributions to a fund managed by a separate entity. The contributions are recognized as employee benefit expenses as incurred. The sponsor does not have the legal or constructive obligation of making additional contributions, in the event the fund lacks sufficient assets to pay all employees the benefits related to the services provided in the current year and prior years. The defined benefit is annually calculated by independent actuaries, who use the projected unit credit method. The present value of the defined benefit is determined by discounting the estimated future cash outflows, using the projected inflation rate plus long-term interest. The obligation recognized in the balance sheet as regards the defined benefit pension plans presenting a deficit, corresponds to the present value of the benefits defined at the balance sheet date, less the fair value of the plan’s assets. The actuarial gains and losses resulting from the changes in the actuarial valuations of the pension plans, whose actuarial obligations or actuarial assets are recorded by the Company, are fully recognized in other comprehensive income, in equity (Note 26). The asset recognized in balance sheet corresponds to the present value of available economic benefits, consisting of refunds or reductions in future contributions to the plan. Employee profit sharing: the provision for the employee profit sharing plan is accounted on an accrual basis, which is paid by April of the year following the recognition of the provision, takes into consideration a set of operating and financial goals approved with the employees’ labor union, under a specific collective labor agreement. This cost is recognized annually in personnel expenses. |
Revenue recognition | Revenue recognition Revenues correspond basically to the amount of the payments received or receivable from sales of services in the regular course of the Company’s and its subsidiaries’ activities. Revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company applied the judgments that significantly affect the determined amount and the recognition timing of the revenue from a contract with a customer, taking into account the five-step recognition model: (i) identify the contract; (ii) identify the separate performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations; and (v) recognition da revenue when (or as) the entity satisfies a performance obligation. Residential Services are composed, basically, of local and long-distance fixed-line voice services, broadband services and Pay-TV. Local and long distance calls are charged based on time measurement according to the legislation in effect. Both of the services are recognized as revenue when the services are provided. Personal Mobility Services are composed of mobile telephony services, interconnection and handsets, SIM cards and other accessories. Post-paid plan is recognized as revenue when service is provided. Prepaid service is first recognized as unearned revenues and recognition occurs by customer’s usage. Interconnection service is provided upon request of any other telecommunication collective service provider and are charged according to the General Rules on Interconnection (Regulamento Geral de Interconexão), established by ANATEL, and recognized as revenue when the service is provided. Sales of handsets and accessories are recognized when these items are delivered and accepted by the customers. SMEs/Corporate Services are composed, basically, of fixed-line and mobile voice, data telecommunications services, broadband services and Pay-TV services, recognized as revenue when the services are provided. Products and services are sold separately or bundled packages. Revenues involving multiple elements are recognized when each performance obligation is identified and the applicable criteria is applied. Initial installation rates are not separately identifiable performance obligations and are recognized in the revenue pursuant to the period the services are used by the customers. Revenue arising from the receipt of trade receivables that had already been written off as losses but were subsequently recovered and received in the collection process, are recognized in profit or loss, in line item ‘Other operating income’. Variable consideration is estimated at contract inception and constrained to revenue recognition until it is highly probable that a significant revenue reversal will not occur (Notes 4 and 5). |
Expense recognition | Expense recognition Expenses are recognized on the accrual basis, considering their relation with revenue realization. Prepaid expenses attributable to future years are deferred over the related periods. The incremental costs to obtain a contract with a customer (contract compliance costs), consisting basically of sales commissions, are recognized in profit or loss on a systematic basis, consistent with the transfer of goods and services to the customers (Note 13). |
Financial income and expenses | Financial income and expenses Financial income is recognized on an accrual basis and comprises interest on receivables settled after the due date, gains on short-term investments and gains on derivative instruments. Financial expenses consist primarily of interest effectively incurred, adjustments to present value, and other charges on borrowings, financing, and financial derivative contracts. They also include banking fees and costs, financial intermediation costs on the collection of trade receivables, and other financial transactions (Notes 5 and 6). |
Current and deferred income tax and social contribution | Current and deferred income tax and social contribution Income tax and social contribution are recorded on an accrual basis. Taxes attributed to temporary differences and tax loss carryforwards are recorded in assets or liabilities, as applicable, only under the assumption of future realization or payment. The Company prepares technical studies that consider the future generation of taxable income, based on management expectations, considering the continuity of the companies as going concerns. The Company writes down the carrying amount of deferred tax assets to the extent it is no longer probable that sufficient taxable income will be available to allow the utilization of all or part of the deferred tax assets. Any write-down of deferred tax assets is reversed when it is probable that sufficient taxable income will be available. The technical studies are updated annually, approved by the Board of Directors and reviewed by the Supervisory Board, and the tax credits are adjusted based on the results of these reviews. Deferred tax assets and liabilities are measured using the tax rates applicable for the period in which the liability is expected to be settled or the asset is expected to be realized, based on the tax rates set forth in the tax law prevailing at the end of each reporting period, or when new legislation has been substantially enacted. The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of each reporting period, to recover or settle the carrying amount of these assets and liabilities (Note 7). |
Earnings per share | Earnings per share Basic earnings per share are calculated through profit or loss for the year attributable to the owners of the Company, divided by the weighted average number of common and preferred shares outstanding in the year. Diluted earnings per share are calculated using said weighted average number of outstanding shares adjusted by potentially dilutive instruments convertible into shares in the reporting years, pursuant to IAS 33. (Note 26 (f).) |
Estimates and critical accounting judgments | (c) Estimates and critical accounting judgments The Company’s management uses estimates and assumptions based on historical experience and other factors, including expected future events, which are considered reasonable and relevant, and also requires judgments related to these matters. Actual results of operations and the financial position may differ from these estimates. The estimates that represent a significant risk of causing material adjustments to the carrying amounts of assets and liabilities are as follows: Revenue recognition and accounts receivables The Company’s revenue recognition policy is significant as it is a material component of operating results. Determining the amount and the timing of revenue recognition by Management, collection ability, and the rights to receive certain network usage revenue is based on judgment related to the nature of the tariff collected for the services provided, the price of certain products, and the right to collect this revenue. If changes in conditions cause management to conclude that such criteria are not met in certain operations, the amount of trade receivables might be affected. In addition, the Company depends on guidelines to measure certain revenue set by ANATEL (Brazilian telecommunications industry regulator). Expected credit losses on trade receivables The expected credit losses on trade receivables are determined to recognize probable losses on accounts receivable taking into account the measures implemented to restrict the provision of services to and collect late payments from defaulting customers. The estimate of expected credit loss on trade receivables is recognized in an amount considered sufficient to cover possible losses on the realization of these receivables and is prepared based on historical default rates and projections of future conditions that impact collections. There are cases of agreements with certain customers to collect past-due Depreciation and amortization of assets with finite useful lives Property, plant and equipment items and intangible assets with finite useful lives are depreciated and amortized, respectively, on a straight-line basis, over the useful lives of the related asset. The depreciation and amortization rates of the most significant assets are shown in Notes 16 and 17, respectively. The useful lives of certain assets may vary as they are used in the fixed-line or mobile telephony segments. The Company reviews the useful lives of assets annually. Impairment of long-lived assets The recoverable amounts of long-lived assets are determined by comparing the calculations of their value in use and their sales prices. These calculations required the use of judgments and assumptions that may be influenced by different external and internal factors, such as economic trends, industry trends and interest rates, changes in business strategies, and changes in the type of services and products sold by the Company to the market. The use of different assumptions may significantly change our financial statements. For impairment assessment purposes of the Cash-generating Unit (CGU), the Company defined the value in use of its assets. In measuring the value in use, the Company based its cash flow projections according to the aforementioned Strategic Plan, approved by Management and already disclosed to the market in a material fact notice. These forecasts cover a ten-year Pursuant to IAS 36, an impairment loss is allocated to reduce the carrying amount of the assets of a cash-generating unit, firstly to reduce the carrying amount of any goodwill based on expected future profitability and, subsequently, the other assets of the cash-generating unit proportionately to the carrying amount of asset of the cash-generating units. The impairment loss was fully allocated to the carrying val ue Leases The assumptions related to the appropriated discount rates used in the fair value calculation of the present value of the lease payments are subject to significant fluctuations due to different external and internal factors, including economic trends and the Company’s financial performance. The use of different assumptions to measure the present value of our leases may have a material impact on the estimated present value of the right-of-use Fair value of financial liabilities The assumptions on the discount rates used in the fair value calculation of our financial liabilities are subject to significant fluctuations due to different external and internal factors, including economic trends and the Company’s financial performance. The use of different assumptions to measure the fair value of the financial liabilities can have a material impact on the estimated fair value of these financial liabilities and the amounts recognized as borrowings and financing in the balance sheet, as well as the amounts recognized in profit or loss. Provisions Pursuant IAS 37, the Company recognized provisions for contingencies basically originated at the juridical and administrative levels, with labor, tax, and civil nature, as detailed in Note 24. Depending on the nature of the contingency, the Company’s management uses the statistical measurement or the individual measurement methodology to calculate provisions for contingencies. In any of these methodologies, the Company uses a set of assumptions, information, an internal and external risk assessment, and statistical models that management considers to be appropriate, including the successful implementation of the Judicial Reorganization Plan; however, it is possible that these change in the future, which could result in change in the future provisions for losses. Deferred income tax and social contribution The Company recognizes and settles taxes on income based on the results of operations determined in accordance with the Brazilian corporate law, taking into consideration the provisions of the tax law, which are materially different from the amounts calculated for IFRS purposes. Pursuant to IAS 12, the Company recognizes deferred tax assets and liabilities based on the differences between the carrying amounts and the taxable bases of the assets and liabilities. The Company regularly tests deferred tax assets for impairment and recognizes an allowance for impairment losses when it is probable that these assets may not be realized, based on the history of taxable income, the projection of future taxable income, and the time estimated for the reversal of existing temporary differences. These calculations require the use of estimates and assumptions. The use of different estimates and assumptions could result in the recognition of an allowance for impairment losses for the entire or a significant portion of the deferred tax assets. Employee benefits The actuarial valuation is based on assumptions and estimates related to interest rates, return on investments, inflation rates for future periods, mortality indices, and an employment level projection related the pension fund benefit liabilities. The accuracy of these assumptions and estimates will determine the creation of sufficient reserves for the costs of accumulated pensions and healthcare plans, and the amount to be disbursed annually on pension benefits. These assumptions and estimates are subject to significant fluctuations due to different internal and external factors, such as economic trends, social indicators, and our capacity to create new jobs and retain our employees. All assumptions are reviewed at the end of the reporting period. If these assumptions and estimates are not accurate, there may be the need to revise the reserves for pension benefits, which could significantly impact Company results. |
New and revised standards and interpretations | (d) New and revised standards and interpretations (d.1) New standards adopted as at January 1, 2019 New and revised standards Effective beginning on or after: Annual improvements to IFRSs 2015-2017 Cycle January 1, 2019 IFRS 16 Leases January 1, 2019 IFRIC 23 Uncertainty over Income Tax Treatments January 1, 2019 Amendment to IAS 19 Change, reduction, or settlement of defined benefit plans January 1, 2019 Amendment to IFRS 9 Prepayment Features with Negative Compensation January 1, 2019 Amendment to IAS 28 Long-term Interests in Associates and Joint Ventures January 1, 2019 Among the standards, changes, and interpretations referred to above, on IFRS 16 had an impact on the Company and subsidiaries’ financial position as from January 1, 2018, as detailed below. IFRS 16— Leases IFRS 16— Leases right-of-use right-of-use right-of-use Transition The Company adopted IFRS 16 pursuant to the modified retrospective approach (i.e., beginning January 1, 2019, taking into account the right-of-use right-of-use. Expedients The Company elected to use the exemptions proposed by the standard on short-term agreements (i.e., that will be end within 12 months from the commencement date), lease agreements for which there is an underlying low value asset. Furthermore, as part of the initial application of the standard, the Group has chosen to apply the following expedients: (a) retain the definition and/or assessment of whether an arrangement is a lease in accordance with current guidance with respect to agreements that exist at the date of initial implementation; (b) apply a single discount rate to a portfolio of leases with reasonably similar characteristics; (c) exclude initial direct costs from measurement of the right-of-use asset at the date of initial application; (d) use hindsight when determining the lease term if the contract includes an extension or termination option; and (e) assess whether a contract is onerous in accordance with IAS 37 immediately before the date of initial implementation instead of assessing impairment of right-of-use assets. Impacts The impacts refer basically to the lease agreements of towers, properties, stores, vehicles, and sites (physical spaces) and as described in Notes 16 and 22. Upon the initial adoption of IFRS 16, the Company recognized a right-of-use right-of-use The Company depreciates the right-of-use The Company also assesses impairment when such indicators exist, taking into account the concept of forming asset groups for impairment purposes. At the commencement date, the Company measured the lease liability at the present value of the consideration paid or payable, discounted using the Company’s incremental lending rate. The lease payments included in the lease liability measurement consist of fixed payments and variable payments based on either an index or a rate. After the initial measurement, the liability will be written down by the payments made and increased by the interest incurred. If necessary, the liability is recalculated to reflect any remeasurement or change, or if there are changes in the substance of the fixed payments. When there is a significant contractual change, a lease liability is remeasured and the corresponding adjustment is reflected in the right-of-use right-of-use The Company elected to use the ex p e right-of-use The Company individually measured any new agreement entered into after January 1, 2019 if such agreement contained a lease. A lease is defined as an “a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration.” To apply this definition the Company assessed whether a contract meets the three key characteristics: • The agreement contains an identified asset, which is explicitly identified in the agreement or implicitly specified to be identified at the time that the asset is made available to the Company; • The Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use, considering its rights within the scope set out in the agreement; and • The Company has the right to direct the use of the identified asset throughout the period of use the and right to direct “how and for what purpose” the asset is used throughout the period of use. The Company recognizes the impacts of temporary differences in deferred income tax and social contribution arising from the new standard IFRS 16. The Company adopted IFRS 16, taking into account the modified retrospective application permitted by the standards. Accordingly, we present below the results for the years period ended December 31, 2019 and 2018, less the effects recognized as a result of this application. Balance at (with IFRS 16) IFRS 16 Balance at (w/o IFRS 16) Balance at Net operating revenue 20,136,183 20,136,183 22,060,014 Cost of sales and/or services (15,314,814 ) (589,861 ) (15,904,675 ) (16,179,100 ) Gross profit (loss) 4,821,369 (589,861 ) 4,231,508 5,880,914 Operating income (expenses) Share of results of investees (5,174 ) (5,174 ) (13,492 ) Selling expenses (3,547,684 ) (7,516 ) (3,555,200 ) (3,853,002 ) General and administrative expenses (2,782,300 ) (5,810 ) (2,788,110 ) (2,738,718 ) Other operating income 4,527,710 4,527,710 2,204,134 Other operating expenses (5,991,291 ) (5,991,291 ) (6,748,094 ) (7,798,739 ) (13,326 ) (7,812,065 ) (11,149,172 ) Profit (loss) before financial income (expenses) and taxes (2,977,370 ) (603,187 ) (3,580,557 ) (5,268,258 ) Financial income 2,662,463 2,662,463 30,950,461 Financial expenses (8,772,181 ) 948,973 (7,823,208 ) (4,341,595 ) Financial income (expenses) (6,109,718 ) 948,973 (5,160,745 ) 26,608,866 Pre-tax (9,087,088 ) 345,786 (8,741,302 ) 21,340,608 Income tax and social contribution Current (77,060 ) (77,060 ) 115,706 Deferred 69,041 69,041 3,159,241 Profit (loss) for the year (9,095,107 ) 345,786 (8,749,321 ) 24,615,555 IFRIC 23— Uncertainty over Income Tax Treatments Applies to taxes within the scope of IAS 12, which governs situations when there is uncertainty over the tax treatment adopted by the Company with respect to: (i) whether an entity should assess uncertain tax treatments separately; (ii) what estimates an entity should make about the examination of tax treatments by tax authorities, (iii) how an entity determines taxable income or tax loss, tax bases, unutilized tax loss carryforwards, and untimely tax credits; and (iv) how an entity considers changes in facts and circumstances. The Company, together with its legal advisors, reviewed this matter and concluded that there is no significant impact to the Company’s financial statements. |
New standards and interpretations not yet adopted | (d.2) New standards and interpretations not yet adopted The new and revised standards and interpretations issued by the IASB that are effective in future reporting periods and that the Company decided not to early adopt are the following, effective for periods beginning on or after January 1, 2020: New and revised standards Effective beginning on or after: IAS 1 Presentation of Financial Statements January 1, 2020 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors January 1, 2020 IFRS 3 Business Combinations Conceptual framework revised for financial reports January 1, 2020 The Company is assessing the impact of these changes on the accounting standards. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [Line Items] | |
Disclosure of subsidiaries | The table below shows the equity interests held in the capital of the Company’s subsidiaries: Companies related to the continuing operations Company Core business Home country Direct 2019 Indirect 2019 Direct 2018 Indirect 2018 Oi Holanda Raising funds in the international market The Netherlands 100% 100% Portugal Telecom Internacional Finance B.V Raising funds in the international market The Netherlands 100% 100% CVTEL, BV Investment management The Netherlands 100% 100% Carrigans Finance S.à.r.l. Investment management Luxembourg 100% 100% Rio Alto Gestão de Créditos e Participações S.A. (“Rio Alto”) Receivables portfolio management and interests in other entities Brazil 100% 100% Oi Serviços Financeiros S.A. (“Oi Serviços Financeiros”) Financial services Brazil 99.87% 0.13% 99.87% 0.13% Bryophyta SP Participações Ltda. Property investments Brazil 99.80% 0.20% 99.80% 0.20% Telemar Fixed telephony – Region I Brazil 100% 100% Oi Móvel Mobile telephony – Regions I, II, and III Brazil 100% 100% Paggo Empreendimentos S.A. Payment and credit systems Brazil 100% 100% Paggo Acquirer Gestão de Meios de Pagamentos Ltda. Payment and credit systems Brazil 100% 100% Paggo Administradora Ltda. (“Paggo Administradora”) Payment and credit systems Brazil 100% 100% Serede – Serviços de Rede S.A. (“Serede”) Network services Brazil 17.51% 82.49% 17.51% 82.49% Brasil Telecom Comunicação Multimídia Ltda. (“BrT Multimídia”) Data traffic Brazil 100% 100% Dommo Empreendimentos Imobiliários Ltda. Purchase and sale of real estate Brazil 100% 100% Brasil Telecom Call Center S.A. (“BrT Call Center”) Call center and telemarketing services Brazil 100% 100% BrT Card Serviços Financeiros Ltda. (“BrT Card”) Financial services Brazil 100% 100% Pointer Networks S.A. (“Pointer”) Wi-Fi Brazil 100% 100% Pointer Peru S.A.C Wi-Fi Peru 100% 100% VEX Venezuela C.A Wi-Fi Venezuela 100% 100% VEX USA Inc. Wi-Fi United States of America 100% 100% VEX Ukraine LLC Wi-Fi Ukraine 40% 40% PT Participações, SGPS, S.A. (“PT Participações”) Management of equity investments Portugal 100% 100% Oi Investimentos Internacionais S.A. (“Oi Investimentos”) Business consulting and management Portugal 100% 100% Africatel GmbH & Co.KG. Investment management Germany 100% 100% Africatel GmbH Investment management Germany 100% 100% Africatel Holdings, BV Investment management The Netherlands 86% 86% TPT—Telecomunicações Publicas de Timor, S.A. (“TPT”) Provision of telecommunications, Portugal 76.14% 76.14% Companies classified as assets held for sale Company Core business Home country Direct 2019 Indirect 2019 Direct 2018 Indirect 2018 PT Ventures, SGPS, S.A. Management of equity interests in the context of international investments Portugal 86% 86% Directel—Listas Telefónicas Internacionais, Lda. (“Directel”) Telephone directory publishing and operation of related databases, in international operations Portugal 86% 86% Directel Cabo Verde – Serviços de Comunicação, Lda. Telephone directory publishing and operation of related databases in Cape Verde Cape Verde 51.60% 51.60% Kenya Postel Directories, Ltd. Production, publishing and distribution of telephone directories and other publications Kenya 51.60% 51.60% Elta—Empresa de Listas Telefónicas de Angola, Lda. Telephone directory publishing Angola 47.30% 47.30% Timor Telecom, S.A. Telecommunications services concessionaire in Timor Timor 44% 44% CST – Companhia Santomense de Telecomunicações, S.A. R.L. Operation of fixed and mobile telecommunication public services in São Tomé and Principe São Tomé 43.86% 43.86% LTM—Listas Telefónicas de Moçambique, Lda. Management, publishing, operation and sale of telecommunications subscriber and classified ads directories Mozambique 43% 43% The equity interests in joint arrangements and interests in associates are measured using the equity method and are as follows: Company Core business Home country Direct 2019 Indirect 2019 Direct 2018 Indirect 2018 Companhia AIX de Participações (“AIX”) Data traffic Brazil 50% 50% Paggo Soluções e Meios de Pagamento S.A. (“Paggo Soluções”) Financial company Brazil 50% 50% Gamecorp S.A. (“Gamecorp”) Pay TV service, except programmers Brazil 29.90% 29.90% Hispamar Satélites S.A. (“Hispamar”) Satellite operation Brazil 19.04% 19.04% |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Disclosure of expected impact of initial application of new standards or interpretations | New standards adopted as at January 1, 2019 New and revised standards Effective beginning on or after: Annual improvements to IFRSs 2015-2017 Cycle January 1, 2019 IFRS 16 Leases January 1, 2019 IFRIC 23 Uncertainty over Income Tax Treatments January 1, 2019 Amendment to IAS 19 Change, reduction, or settlement of defined benefit plans January 1, 2019 Amendment to IFRS 9 Prepayment Features with Negative Compensation January 1, 2019 Amendment to IAS 28 Long-term Interests in Associates and Joint Ventures January 1, 2019 The new and revised standards and interpretations issued by the IASB that are effective in future reporting periods and that the Company decided not to early adopt are the following, effective for periods beginning on or after January 1, 2020: New and revised standards Effective beginning on or after: IAS 1 Presentation of Financial Statements January 1, 2020 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors January 1, 2020 IFRS 3 Business Combinations Conceptual framework revised for financial reports January 1, 2020 |
Foreign Exchange Rates | As at December 31, 2019 and 2018, the foreign currency-denominated assets and liabilities were translated into Brazilian reais using mainly the following foreign exchange rates: Closing rate Average rate Currency 2019 2018 2019 2018 Euro 4.5305 4.4390 4.4159 4.3094 US dollar 4.0307 3.8748 3.9461 3.6558 Cape Verdean escudo 0.0411 0.0403 0.0401 0.0391 Sao Tomean dobra 0.000192 0.000185 0.000188 0.000177 Kenyan shilling 0.0398 0.0381 0.0387 0.0361 Namibian dollar 0.2878 0.2698 0.2732 0.2764 Mozambican metical 0.0631 0.0627 0.0627 0.0601 Angolan kwanza 0.0084 0.0126 0.0111 0.0147 |
Restatement on Previously Reported Financial Statements | The Company adopted IFRS 16, taking into account the modified retrospective application permitted by the standards. Accordingly, we present below the results for the years period ended December 31, 2019 and 2018, less the effects recognized as a result of this application. Balance at (with IFRS 16) IFRS 16 Balance at (w/o IFRS 16) Balance at Net operating revenue 20,136,183 20,136,183 22,060,014 Cost of sales and/or services (15,314,814 ) (589,861 ) (15,904,675 ) (16,179,100 ) Gross profit (loss) 4,821,369 (589,861 ) 4,231,508 5,880,914 Operating income (expenses) Share of results of investees (5,174 ) (5,174 ) (13,492 ) Selling expenses (3,547,684 ) (7,516 ) (3,555,200 ) (3,853,002 ) General and administrative expenses (2,782,300 ) (5,810 ) (2,788,110 ) (2,738,718 ) Other operating income 4,527,710 4,527,710 2,204,134 Other operating expenses (5,991,291 ) (5,991,291 ) (6,748,094 ) (7,798,739 ) (13,326 ) (7,812,065 ) (11,149,172 ) Profit (loss) before financial income (expenses) and taxes (2,977,370 ) (603,187 ) (3,580,557 ) (5,268,258 ) Financial income 2,662,463 2,662,463 30,950,461 Financial expenses (8,772,181 ) 948,973 (7,823,208 ) (4,341,595 ) Financial income (expenses) (6,109,718 ) 948,973 (5,160,745 ) 26,608,866 Pre-tax (9,087,088 ) 345,786 (8,741,302 ) 21,340,608 Income tax and social contribution Current (77,060 ) (77,060 ) 115,706 Deferred 69,041 69,041 3,159,241 Profit (loss) for the year (9,095,107 ) 345,786 (8,749,321 ) 24,615,555 |
FINANCIAL INSTRUMENTS AND RIS_2
FINANCIAL INSTRUMENTS AND RISK ANALYSIS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of financial assets [abstract] | |
Schedule of derivative transactions | As at December 31, 2019, the Company recognized as result of derivative transactions the amounts shown below: 2019 Forward currency transaction – financial results 55,025 Forward currency transaction – operating results 17,088 Total 72,113 |
Schedule of movement in foreign exchange hedges | The Table of movements in hedge accounting effects in other comprehensive income Balance at 1 2/31/ Results of designated hedges 11,901 Amortization of hedges to profit or loss (13,053 ) Balance at 12/31/ (1,152 ) |
Disclosure of financial assets and financial liabilities and its market value explanatory | These assets and liabilities are presented in the balance sheet as follows: 2019 2018 Carrying Market Carrying Market Financial assets Cash equivalents 1,504,986 1,504,986 3,943,324 3,943,324 Cash investments 217,792 217,792 238,962 238,962 Financial liabilities Borrowings and financing (Note 20) 8,705,458 8,705,458 7,633,140 7,633,140 |
Financial Assets and Financial Liabilities Carried At Fair Value Excluding Liabilities Subjected to Compromise | The carrying amounts and the estimated fair values of our main financial assets and financial liabilities as at December 31, 2019 and 2018 are summarized as follows: Assets Accounting 2019 2018 Carrying Fair value Carrying Fair value Cash and banks Fair value 575,863 575,863 287,491 287,491 Cash equivalents Fair value 1,506,082 1,506,082 4,097,838 4,097,838 Cash investments Fair value 217,792 217,792 238,962 238,962 Accounts receivable (i) Amortized cost 6,334,526 6,334,526 6,516,555 6,516,555 Dividends and interest on capital Amortized cost 426 426 Financial asset at fair value Fair value 40,689 40,689 Held-for-sale Held-for-sale Fair value 1,474,699 1,474,699 1,843,778 1,843,778 Dividends receivable (Note 31) Amortized cost 2,435,014 2,435,014 2,566,935 2,566,935 Liabilities Trade payables (i) Amortized cost 8,887,367 8,887,367 8,818,870 8,818,870 Derivative financial instruments Fair value 1,152 1,152 Borrowings and financing (ii) Borrowings and financing Amortized cost 8,354,777 8,354,777 7,140,960 7,140,960 Public debentures Amortized cost 3,652,353 3,652,353 3,103,106 3,103,106 Senior Notes Amortized cost 6,219,619 6,565,782 6,205,840 6,937,764 Dividends and interest on capital Amortized cost 5,731 5,731 6,168 6,168 Licenses and concessions payable (iii) Amortized cost 58,582 58,582 85,619 85,619 Tax refinancing program (iii) Amortized cost 417,503 417,503 553,206 553,206 Leases payable (iv) Amortized cost 8,150,026 8,150,026 For the closing of the year ended December 31, 2019: (i) The balances of accounts receivables have near terms and, therefore, they are not adjusted to fair value. The balances of trade receivables, subject to the judicial reorganization, were adjusted to their fair value, at the date of the novation of the liabilities and are represented by the amounts that are expected that the obligations are discharged (Note 18). (ii) The balance of the borrowings and financing with the BNDES, Local Banks, and ECAs correspond to exclusive markets, and the fair value of these instruments is similar to their carrying amounts. The balances of borrowings and financing refers to the bonds issued in the international market, for which is there is a secondary market, and their fair values differ from their carrying amounts. (iii) The licenses and concessions payable and the tax refinancing program are stated at the amounts that these obligations are expected to be discharged and are not adjusted to fair value. (iv) The leases payable are represented by the amounts that the obligations are expected to be settled, adjusted at present value. |
Schedule of Fair Value Measurement Hierachy | The levels of the financial assets, cash and cash equivalents and cash investments, held-for-sale Fair value Fair value 2019 2018 Assets Cash and banks Level 1 575,863 287,491 Cash equivalents Level 1 1,506,082 4,097,838 Cash investments Level 1 217,792 238,962 Held-for-sale Level 3 1,474,699 1,843,778 Liabilities Derivative financial instruments Level 2 1,152 |
Schedule of Financial Assets | Foreign currency-denominated financial assets and financial liabilities are presented in the balance sheet as follows: 2019 2018 Carrying Fair value Carrying Fair value Financial assets Cash and banks 400,874 400,874 70,116 70,116 Cash equivalents 1,096 1,096 154,514 154,514 Held-for-sale Held-for-sale 1,474,699 1,474,699 1,843,778 1,843,778 Dividends receivable 2,435,014 2,435,014 2,566,935 2,566,935 Financial liabilities Borrowings and financing (Note 20) 9,521,291 9,521,291 8,816,766 9,548,690 Derivative financial instruments 1,152 1,152 |
Schedule of Exchange Rates Used for Foreign Currency Translation | The probable rates were then depreciated by 25% and 50% and used as benchmark for the possible and remote scenarios, respectively. Rate Description 2019 Depreciation Probable scenario U.S. dollar 4.0307 0% Euro 4.5305 0% Possible scenario U.S. dollar 5.0384 25% Euro 5.6631 25% Remote scenario U.S. dollar 6.0461 50% Euro 6.7958 50% |
Impact of Foreign Exchange Exposure | The impacts of foreign exchange exposure on the foreign currency-denominated debt, considering offshore derivatives and cash, in the sensitivity scenarios estimated by the Company, are shown in the table below: 2019 Description Individual risk Probable Possible Remote US dollar debts Dollar appreciation 15,594,278 19,492,848 23,391,418 US dollar cash Dollar depreciation (283,409 ) (354,261 ) (425,113 ) Euro debt Euro appreciation 2,711,459 3,389,323 4,067,188 Euro cash Euro depreciation (112,796 ) (140,995 ) (169,194 ) Fair value adjustment Dollar/euro depreciation (8,772,305 ) (10,965,381 ) (13,158,458 ) Total assets/liabilities indexed to exchange fluctuation 9,137,227 11,421,534 13,705,841 Total (gain) loss 2,284,307 4,568,614 |
Schedule of Exchange Rates Used for Interest Rate Contracts | Interest rate fluctuation risk sensitivity analysis The Company is exposed to interest rate risk on its cash and cash equivalents and its indebtedness. The interest rate risk on the indebtedness is from the portion of the indebtedness having a variable interest rate. Changes in the interest rates could impact the amount of interest that the Company is required to pay or receive. Management believes that the most material risk related to interest rate fluctuations arises from its liabilities pegged to the CDI and TJLP. This risk is associated to an increase in those rates. The TJLP rate remained stable at 7.0% p.a. from April 1, 2017 to December 31, 2017. Beginning January 1, 2018, the TJLP was being successively reduced: 6.75% per year up to March 2018, 6.6% per year from April to June 2018, and 6.56% from July to September 2018. In turn, from October to December 2018 this rate was increased to 6.98% per year, it was increased to 7.03%, from January to March 2019, to 7.03%, and reduced again from April to June to 6.26%, from July to September to 5.95%, and from October to December to 5.57%. At the end of the quarter the National Monetary Council decided to reduce this rate again to 5.09% per year, effective for January-March 2020. Management estimated the fluctuation scenarios of the rates CDI and TJLP as at December 31, 2019. The rates used for the probable scenario were the rates prevailing at the end of the reporting year. T 2019 Interest rate scenarios Probable scenario Possible scenario Remote scenario CDI TJLP CDI TJLP CDI TJLP 4.59% 5.57% 5.74% 6.96% 6.89% 8.36% |
Impact of Interest Rate Exposure | The impacts of exposure to interest rates, in the sensitivity scenarios estimated by the Company, are shown in the table below: 2019 Description Individual risk Probable scenario Possible scenario Remote scenario Debt pegged to CDI CDI increase 4,601,044 5,330,277 6,583,653 Debt pegged to TJLP TJLP increase 3,221,576 4,232,356 4,972,246 Total assets/liabilities pegged to the interest rate 7,822,620 9,562,633 11,555,899 Total (gain) loss 1,740,013 3,733,279 |
Summary of indicators used to measure capital structure management | The indicators used to measure capital structure management are: gross debt to accumulated twelve-month EBITDA (earnings before interest (financial income and expenses), taxes, depreciation, and amortization), and the interest coverage ratio, as shown below: Goss debt-to-EBITDA between 2x and 4.0x Interest coverage ratio (*) higher than 1.75 (*) Measure the Company’s capacity to cover its future interest obligations. |
Derivative financial instrument | The amounts of the derivative financial instruments are summarized as follows: Derivatives designated for hedge accounting Notional (US$) Maturity (years) Fair value Amounts 2019 USD/R$ Non-deliverable 17,000.00 < 1 year (1,152 ) |
NET OPERATING REVENUE (Tables)
NET OPERATING REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
Schedule of Net Operating Revenue | 2019 2018 2017 Gross operating revenue 27,218,787 30,426,548 36,338,432 Deductions from gross revenue (7,082,604 ) (8,366,534 ) (12,548,778 ) Taxes (5,641,876 ) (6,725,356 ) (7,707,961 ) Other deductions (1,440,728 ) (1,641,178 ) (4,840,817 ) Net operating revenue 20,136,183 22,060,014 23,789,654 |
REVENUE AND EXPENSES BY NATURE
REVENUE AND EXPENSES BY NATURE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Expenses by nature [abstract] | |
Summary of Revenue and Expenses by Nature | December 31, December 31, December 31, Operating expenses by nature Third-party services (6,030,542 ) (5,924,556 ) (6,221,058 ) Depreciation and amortization (6,873,945 ) (5,811,123 ) (5,109,292 ) Rentals and Insurance (i) (2,575,862 ) (4,200,212 ) (4,162,659 ) Personnel (2,528,823 ) (2,594,464 ) (2,791,331 ) Network maintenance service (1,014,432 ) (1,104,015 ) (1,251,511 ) Interconnection (487,413 ) (658,068 ) (778,083 ) Provision for contingencies (216,438 ) (202,268 ) (469,440 ) Expected credit losses (489,396 ) (697,324 ) (691,807 ) Advertising and marketing (497,278 ) (382,091 ) (413,580 ) Handset and other costs (170,860 ) (196,347 ) (223,335 ) Impairment gain (los s) (2,111,022 ) (291,758 ) 4,747,141 Taxes and other expenses (110,568 ) (249,688 ) (542,832 ) Other operating income (expenses), net (iii) (6,974 ) (5,016,358 ) (8,242,895 ) Total operating expenses (23,113,553 ) (27,328,272 ) (26,150,682 ) Operating expenses by function Cost of sales and/or services (15,314,814 ) (16,179,100 ) (15,668,653 ) Selling expenses (3,547,684 ) (3,853,002 ) (4,102,556 ) General and administrative expenses (2,782,300 ) (2,738,718 ) (3,136,808 ) Other operating income 4,527,710 2,204,134 1,985,101 Other operating expenses (5,996,465 ) (6,761,586 ) (5,227,766 ) Total operating expenses by function (23,113,553 ) (27,328,272 ) (26,150,682 ) (i) The semiannual comparison was impacted by the adoption of IFRS 16— Leases (ii) As required by IAS 36, the Company conducts annually an impairment test of its assets with finite useful lives and recognizes an impairment loss related to the expected future profitability of such assets. The Company took into consideration in its assumptions for the 2019 impairment test, among other aspects, the Strategic Plan disclosed in July 2019. The plan rests on transformation actions, focused on improving operational and financial performance (see Note 17). (iii) In 2019, refers primarily to: (a) the recognition of other income from PIS and COFINS credits arising on the deduction of ICMS from PIS and COFINS tax base, as well as the recovery of unduly paid amounts on that tax base, as ruled in the final and unappealable court decision issued in March and September 2019, amounting to R$1,517,919 (Note 11) and (b) the recognition of expenses on the provision related to an onerous contract for the supply of satellite capacity, amounting to R$1,230,820 (Note 25), and (c) recognition of expenses related to the derecognition arising from the reconciliation of prior periods’ tax credits and incentives, which are not expected to be realized, amounting to R$167,395. In 2018 refers basically to: (a) expenses on the provision related to the recognition of the onerous contract for the provision of submarine cable capacity, amounting to R$4,883,620; and (b) recognition of income from the reversal of the provision for the contingency, amounting to R$109,242, arising from the reprocessing of the provision estimation model taking into account the new profile and history of discontinuation of lawsuits in the context of the approval and ratification of the JRP. In 2017, R$6,482,485 refer main to the additional provision arising from the review of the calculations of the provision for contingencies related administrative proceedings and lawsuits involving ANATEL, talking into accounting the publication of the decision that grants the judicial reorganization in February 5, 2018. |
FINANCIAL INCOME (EXPENSES) (Ta
FINANCIAL INCOME (EXPENSES) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Finance Income Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | 2019 2018 2017 Financial income Fair value adjustment (i) 48,756 13,290,262 4,873,000 Monetary correction and foreign exchange differences on the fair value adjustment 334,269 1,398,594 Gain on the restructuring of third-party borrowings (ii) 11,054,800 Interest on and monetary correction to other assets (iii) 1,922,176 808,764 1,049,923 Income from cash investments 238,828 316,880 702,171 Exchange differences on translating foreign cash investments (52,013 ) 1,329 11,105 Reversal of interest and other income (iv) 170,447 4,079,832 500,260 Total 2,662,463 30,950,461 7,136,459 Financial expenses and other charges a) Borrowing and financing costs Recognition of fair value adjustment (910,491 ) (760,197 ) Monetary correction to and exchange losses on third-party borrowings (v) (640,068 ) (2,493,618 ) (2,920,455 ) Interest on borrowings from third parties (vi) (1,295,545 ) 1,299,094 (3,122,166 ) Interest on debentures (vi) (322,218 ) 493,833 (472,173 ) Subtotal: (3,168,322 ) (1,460,888 ) (6,514,794 ) b) Other charges Interest on leases (948,973 ) Gain (loss) on cash investments classified as held for sale (237,593 ) 292,700 (267,008 ) Tax on transactions and bank fees (456,579 ) (870,488 ) (512,003 ) Interest on, monetary correction to, and foreign exchange differences on other liabilities (vii) (1,854,304 ) (1,251,215 ) (1,553,746 ) Monetary correction to (provisions)/reversals (viii) (1,620,378 ) (226,870 ) (674,668 ) Interest on taxes in installments—tax financing program (16,159 ) (28,079 ) (27,294 ) Derivative transactions 55,025 Other expenses (ix) (524,898 ) (796,755 ) (783,458 ) Subtotal: (5,603,859 ) (2,880,707 ) (3,818,177 ) Total (8,772,181 ) (4,341,595 ) (10,332,971 ) Financial income (expenses) (6,109,718 ) 26,608,866 (3,196,512 ) (i) In 2018, refers to the recognition of the fair value of third-party borrowings and financing arising from the impacts of the ratification of the JRP. In 2017, refers to the adjustment to present value arising from the revision of the calculations of the provision for contingencies related to administrative proceedings and lawsuits involving ANATEL, taking into account the best estimate of future cash outflows based on the payment methods prescribed in the JRP. (ii) In 2018, refers basically to the positive impact of the novation of the debt represented by the qualified Senior Notes, calculated pursuant to the JRP. (iii) In 2019, refers to the accounting recognition amounting R$2,100 million related to the monetary correction to PIS and COFINS credits arising from the deduction of ICMS from the tax base of PIS and COFINS, as well as the recovery of unduly paid amounts as PIS and COFINS, under a final and unappealable court decision reached in March and September 2019, as described in Note 11. (iv) In 2018, represented mainly by the reversal of the interest expenses on debt included in the JRP, adjusted in the period prior to the ratification of the Plan amounting to R$3,013 million and adjustment of trade payables and default payment to fair value amounting to R$877 million. (v) In 2018, includes R$555 million related to the modification (vi) In 2018, represented mainly by the reversal of interest on the debt included in the JRP amounting to R$3,115 million and interest expenses on novated debt and debentures totaling R$167 million. (vii) This line item includes interest related to the present value adjustment associated with the liabilities of onerous contracts and trade payables subject to the Judicial Reorganization. (viii) In 2019, includes the impact arising on the review of the provision estimate calculation methodology of the labor and civil contingencies, supported by the loss risk assessment made by the Company’s legal advisors. The Company recognized new provision for labor and civil contingencies, during 2019, related to the review of the provision estimate calculation methodology, and part of the amount was recognized in financial expenses due to monetary corrections in compliance with the Law applicable for Labor and Civil proceedings. (ix) Represented mainly by financial banking fees and commissions. |
INCOME TAX AND SOCIAL CONTRIB_2
INCOME TAX AND SOCIAL CONTRIBUTION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | |
Summary of Income Tax Expense Attributable to Income From Continuing Operation | The provision for income tax and social contribution is broken down as follows: 2019 2018 2017 Income tax and social contribution Current taxes (77,060 ) 115,706 (906,080 ) Deferred taxes (Note 10) 69,041 3,159,241 (192,542 ) Total (8,019 ) 3,274,947 (1,098,622 ) |
Summary of Tax Rate Reconciliation From Continuing Operation | 2019 2018 2017 Pre-tax (9,087,088 ) 21,340,608 (5,557,540 ) Income tax and social contribution Income tax and social contribution on taxed income 3,089,610 (7,255,807 ) 1,889,564 Equity in investees (1,759 ) (4,587 ) (147 ) Tax incentives (basically, operating profit) (i) 1,263 3,068 14,008 Permanent deductions (add-backs) (312,512 ) 13,285,260 148,424 Reversal of (Allowance for) impairment losses on deferred tax assets (iii) (2,474,232 ) (2,757,044 ) (2,717,564 ) Tax effects of deferred tax assets of foreign subsidiaries (iv) (310,389 ) 4,057 (432,907 ) Income tax and social contribution effect on profit or loss (8,019 ) 3,274,947 (1,098,622 ) (i) Refers basically to the exploration profit recognized in the profit or loss of subsidiary Oi Móvel pursuant to Law 11638/2007. (ii) In 2019, the tax effects from permanent add-backs (iii) Refers to the reversal (recognition) of the allowance for the realizable value (impairment) of deferred tax assets (Note 10). (iv) Refers to the effects of unrecognized deferred tax assets held by foreign subsidiaries that do not have a history of profitability and/or an expectation to generate taxable income. |
CASH, CASH EQUIVALENTS AND SH_2
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
Schedule of Cash and Cash Equivalents | (a) Cash and cash equivalents 2019 2018 Cash and banks 575,863 287,491 Cash equivalents 1,506,082 4,097,838 Total 2,081,945 4,385,329 2019 2018 Repurchase agreements(i) 1,192,708 2,742,731 Certificated of Bank Deposit (CDB) 173,854 301,632 Private securities(ii) 134,818 895,073 Time deposits 1,096 154,514 Other 3,606 3,888 Cash equivalents 1,506,082 4,097,838 (i) Represented mainly by exclusive investment funds composed by Government Securities with yield pegged to the SELIC rate. The portfolio is preferably allocated to highly liquid spot market instruments for all investments. (ii) Represented mainly by financial treasury bills from private banks with remuneration linked to CDI rate and immediate liquidity. |
Schedule of Short-term and long-term investments | (b) Short-term and long-term 2019 2018 Private securities(iii) 196,203 213,653 Government securities 21,589 25,309 Total 217,792 238,962 Current 183,850 201,975 Non-current 33,942 36,987 (i) Represented mainly by exclusive investment funds composed by Government Securities with yield pegged to the SELIC rate. The portfolio is preferably allocated to highly liquid spot market instruments for all investments. (ii) Represented mainly by financial treasury bills from private banks with remuneration linked to CDI rate and immediate liquidity. (iii) Represented mainly by the investments with yield pegged to the SELIC and CDB rates. |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other current receivables [abstract] | |
Schedule of Accounts Receivable | 2019 2018 Billed services 5,910,643 5,699,817 Unbilled services 842,726 984,062 Handheld devices, accessories, and other assets 354,928 619,821 Subtotal 7,108,297 7,303,700 Expected losses on trade receivables (773,771 ) (787,145 ) Total 6,334,526 6,516,555 |
Schedule of Aging List of Trade Receivables | The aging list of trade receivables is as follows: 2019 2018 Current 5,118,874 5,167,408 Past-due 527,459 672,673 Past-due 104,694 131,798 Past-due 99,299 132,562 Past-due 83,083 104,628 Over 150 days past-due 1,174,888 1,094,631 Total 7,108,297 7,303,700 |
Schedule of Movements In the Allowance for Doubtful Accounts | The movements in expected credit losses on trade receivables are as follows: Balance at Jan uary (547,485 ) Expected losses on trade receivables (843,681 ) Trade receivables written off as uncollectible 976,998 IFRS 9 adoption (*) (372,977 ) Balance at December 31, (787,145 ) Expected losses on trade receivables (488,269 ) Trade receivables written off as uncollectible 501,643 Balance at December 31, (773,771 ) (*) Impact of the first-time recognition, at January 1, 2018, of IFRS 9 as a contra entry to Accumulated losses in Shareholders’ equity. |
RECOVERABLE INCOME TAX AND DE_2
RECOVERABLE INCOME TAX AND DEFERRED TAXES ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Recoverable Income Tax And Deferred Taxes Assets [Abstract] | |
Schedule of Recoverable Income Tax and Deferred Taxes Assets | ASSETS 2019 2018 Current recoverable taxes Recoverable income tax (IRPJ) (i) 209,513 287,472 Recoverable social contribution (CSLL) (i) 81,215 91,996 IRRF/CSLL—withholding income taxes (ii) 251,998 241,778 Total current 542,726 621,246 Deferred recoverable taxes Income tax and social contribution on temporary differences1 99,175 23,050 Total non-current 99,175 23,050 LIABILITIES 2019 2018 Current taxes payable Income tax payable 54,358 21,628 Social contribution payable 12,296 5,398 Total current 66,654 27,026 See movements table below (i) Refer mainly to prepaid income tax and social contribution that will be offset against federal taxes payable in the future. (ii) Refer to withholding income tax (IRRF) credits on cash investments, derivatives, intragroup loans, government entities, and other amounts that are used as deductions from income tax payable for the years, and social contribution withheld at source on services provided to government agencies. |
Schedule of Movements in Deferred Income Tax and Social Contribution | Movements in deferred income tax and social contribution Balance at Recognized Recognized Add-backs/ Balance at Deferred tax assets arising on: Temporary differences Provisions 1,244,246 (68,999 ) 1,175,247 Provisions for suspended taxes 29,555 134,999 164,554 Provisions for pension funds and impacts of (IAS 19 R) (14,095 ) (3,341 ) 3,331 (14,105 ) Expected losses on trade receivables 478,827 (46,407 ) 432,420 Profit sharing 94,504 (13,185 ) 81,319 Foreign exchange differences 1,403,193 333,740 1,736,933 Merged goodwill (i) 1,690,508 (278,759 ) 1,411,749 Other temporary add-backs and deductions 177,085 773,610 2,557 953,252 Onerous obligation 1,527,924 449,900 1,977,824 Deferred taxes on temporary differences 6,631,747 1,281,558 5,888 7,919,193 CSLL tax loss carryforwards 13,703,529 1,033,425 25,095 38 14,762,087 Total deferred tax assets 20,335,276 2,314,983 30,983 38 22,681,280 Deferred tax liabilities Temporary differences and income tax and social contribution of goodwill (ii) (2,532,682 ) 235,338 (2,297,344 ) Allowance for impairment loss (iii) (17,779,544 ) (2,474,234 ) (30,983 ) (20,284,761 ) Total deferred tax assets (liabilities) 23,050 76,087 (* ) 38 99,175 (*) The expenses on deferred taxes disclosed in Note 6 include R$7,046 in deferred taxes of foreign operations classified as held-for-sale (i) Refer to: (i) deferred income tax and social contribution assets calculated as tax benefit originating from the goodwill paid on acquisition of the Company and recognized by the merged companies in the course of 2009. The realization of the tax credit arises from the amortization of the goodwill balance based on the STFC license and in the appreciation of property, plant and equipment, the utilization of which is estimated to occur through 2025, and (ii) deferred income tax and social contribution assets originating from the goodwill paid on the acquisition of interests in the Company in 2008-2011, recognized by the companies merged with and into Telemar Participações S.A. (“TmarPart”) and by TmarPart merged with and into the Company on September 1, 2015, which was based on the Company’s expected future profitability and the amortization of which is estimated to occur through 2025. (ii) Refers basically to the tax effects on the appreciation of property, plant and equipment and intangible assets, merged from TmarPart. (iii) The Company, based on the schedule of expected generation of future taxable income, supported by a technical feasibility study and the comparison with the estimate of the annual realization amount of asset and liability temporary differences, revised its deferred taxes recovery estimate and identified and recognized an allowance at recoverable amount. The stock of tax loss carryforwards in Brazil and foreign subsidiaries is approximately R$32,805,092 and R$14,433,424, and corresponds to R$11,153,731 and R$3,608,356 in deferred tax assets, respectively, which can be carried forward indefinitely and offset against taxes payable in the future. |
OTHER TAXES (Tables)
OTHER TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxes Other Than Income Tax Assets And Liabilities [Abstract] | |
Schedule of other taxes | ASSETS 2019 2018 Recoverable State VAT (ICMS) (i) 1,301,684 1,240,353 PIS and COFINS (ii) 2,736,009 215,860 Other 47,257 63,015 Total 4,084,950 1,519,228 Current 1,089,391 803,252 Non-current 2,995,559 715,976 LIABILITIES 2019 2018 State VAT (ICMS) 526,618 556,693 ICMS Convention No. 69/1998 220,467 34,113 PIS and COFINS (iii) 574,063 235,319 FUST/FUNTTEL/broadcasting fees (iv) 669,193 655,022 Other (v) 120,460 181,437 Total 2,110,801 1,662,584 Current 886,763 1,033,868 Non-current 1,224,038 628,716 (i) Recoverable ICMS arises mostly from prepaid taxes and credits claimed on purchases of property, plant and equipment, which can be offset against ICMS payable within 48 months, pursuant to Supplementary Law 102/2000. (ii) The Company and its subsidiaries filed legal proceedings to claim the right to deduct ICMS from the PIS and COFINS tax bases and the recovery of past unduly paid amounts, within the relevant statute of limitations. In 2019, the 1 st nd non-levy These credits were cleared for offset by the Federal Revenue Service between May and October 2019 so that the Company has been using them to pay federal taxes due since June 2019. The total amount of the credit was approximately R$3 billion, added to the three lawsuits. (iii) Refers basically to the Social Integration Program Tax on Revenue (PIS) and Social Security Funding Tax on Revenue (COFINS) on revenue, financial income, and other income. (iv) The Company and its subsidiaries Telemar and Oi Móvel filed lawsuits to discuss the correct calculation of the contribution to the FUST and in the course of the lawsuits made escrow deposits to suspend its collection. These discussions are also being judged by higher courts and a possible transformation of the deposited amounts into definitive payments should not occur within two (2) years. (v) Consisting primarily of monetary corrections to suspended taxes and withholding tax on intragroup loans and interest on capital. |
JUDICIAL DEPOSITS (Tables)
JUDICIAL DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Judicial Deposits [Abstract] | |
Schedule of judicial deposits | As set forth by relevant legislation, judicial deposits are adjusted for monetary correction . 2019 2018 Civil 5,027,848 5,849,978 Tax 2,301,986 2,337,508 Labor 883,125 1,197,144 Subtotal: 8,212,959 9,384,630 Estimated loss (i) (47,112 ) (649,910 ) Total 8,165,847 8,734,720 Current 1,514,464 1,715,934 Non-current 6,651,383 7,018,786 (i) This amount represents the estimated loss of balances of judicial deposits, which are in the process of reconciliation with the obtained statements. |
PREPAID EXPENSES (Tables)
PREPAID EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepayments and accrued income [abstract] | |
Schedule of prepaid expenses | 2019 2018 Costs incurred on the performance of a contract (IFRS 15) 1,016,337 912,538 Advertising and publicity 55,695 135,049 Bank guarantee 31,297 40,690 Insurance 25,807 48,865 Contractual prepaid expenses 47,771 Other 124,944 81,590 Total 1,254,080 1,266,503 Current 670,344 743,953 Non-current 583,736 522,550 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Schedule of other assets | 2019 2018 Advances to and amounts recoverable from suppliers 767,900 621,376 Amounts receivable from the sale of property, plant and equipment items 302,947 305,155 Amounts receivable 53,406 202,834 Advances to employees 79,830 69,635 Other 85,739 131,532 Total 1,289,822 1,330,532 Current 852,155 1,079,670 Non-current 437,667 250,862 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments accounted for using equity method [abstract] | |
Schedule of investments | 2019 2018 Joint arrangements 28,632 31,488 Investments in associates 48,578 44,124 Tax incentives, net of allowances for losses 31,876 31,876 Other investments 24,679 10,352 Total 133,765 117,840 |
Schedule of movements in investment balances | Summary of the movements in investment balances Balance at Jan uary 136,510 Share of results of investees (13,492 ) Share of subsidiaries’ and associates’ equity in investees (2,270 ) Reclassification of equity in investees to held-for-sale assets 5,491 Other (8,399 ) Balance at December 31, 117,840 Share of results of investees (5,174 ) Subsidiaries’ and associates’ share of other comprehensive income 2,469 Reclassification of equity in investees to held-for-sale assets 3,514 Other 15,116 Balance at December 31, 133,765 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Schedule of property plant and equipment | Works in Automatic Transmission Infrastructure Buildings Right of Other Total Cost of PP&E (gross amount) Balance at January 1, 2018 3,434,113 20,008,955 59,082,061 28,341,491 4,471,481 6,217,467 121,555,568 Additions 5,117,872 487 383,088 388,988 10,721 39,471 5,940,627 Write-offs (47,465 ) (45,211 ) (601,087 ) (3,344 ) (3,403 ) (700,510 ) Transfers (5,152,907 ) 68,518 2,672,783 2,214,139 (15,168 ) 212,635 Balance at December 31, 2018 3,351,613 20,077,960 62,092,721 30,343,531 4,463,690 6,466,170 126,795,685 Initial adoption of IFRS 16 8,167,932 8,167,932 Contractual changes 520,809 520,809 Additions 6,870,257 226,022 295,795 5,054 283,494 96,435 7,777,057 Write-offs (104,781 ) (61,464 ) (1,059,118 ) (136,734 ) (421 ) (1,362,518 ) Transfers (7,958,762 ) 135,576 5,076,356 2,463,974 39,025 243,831 Transfer to held-for-sale assets (50,854 ) (271,292 ) (322,146 ) Reclassified from held-for-sale assets 781 781 Balance at December 31, 2019 2,158,327 20,213,536 67,333,635 31,993,328 4,236,477 8,835,501 6,806,796 141,577,600 Accumulated depreciation Balance at January 1, 2018 (18,648,010 ) (45,677,425 ) (22,230,047 ) (2,758,012 ) (5,253,427 ) (94,566,921 ) Depreciation expenses (292,524 ) (2,251,574 ) (1,246,471 ) (90,348 ) (407,396 ) (4,288,313 ) Write-offs 40,387 442,589 215 1,921 485,112 Transfers (36 ) (151 ) (353 ) 33,570 (33,030 ) Balance at December 31, 2018 (18,940,570 ) (47,888,763 ) (23,034,282 ) (2,814,575 ) (5,691,932 ) (98,370,122 ) Depreciation expenses (271,449 ) (2,519,706 ) (1,456,608 ) (101,432 ) (952,225 ) (247,836 ) (5,549,256 ) Write-offs 53,452 979,614 22,315 (7,514 ) 1,047,867 Transfers 85 (565 ) (787 ) 776 491 Transfer to held-for-sale assets 16,267 189,198 205,465 Reclassified from held-for-sale assets (720 ) (720 ) Balance at December 31, 2019 (19,211,934 ) (50,355,582 ) (23,495,796 ) (2,726,033 ) (929,910 ) (5,947,511 ) (102,666,766 ) PP&E, net Balance at December 31, 2018 3,351,613 1,137,390 14,203,958 7,309,249 1,649,115 774,238 28,425,563 Balance at December 31, 2019 2,158,327 1,001,602 16,978,053 8,497,532 1,510,444 7,905,591 859,285 38,910,834 Annual depreciation rate (average) 10% 12% 10% 9% 11% 15% (1) Transmission and other equipment include transmission and data communication equipment. |
Disclosure of quantitative information about right-of-use assets | Movements in the rights of use—leases Towers Physical Stores Vehicles Real Total Balance January 1, 2019 Initial adoption of IFRS 16 7,353,507 521,523 117,480 93,615 81,807 8,167,932 Contractual changes 500,690 6,614 6,680 6,825 520,809 Additions 65,559 29,008 13,555 174,455 917 283,494 Write-offs (35,836 ) (82,091 ) (8,701 ) (8,804 ) (1,302 ) (136,734 ) Balance at December 31, 2019 7,883,920 475,054 129,014 259,266 88,247 8,835,501 Accumulated depreciation Balance at January 1, 2019 Depreciation expenses (737,439 ) (92,896 ) (31,456 ) (70,787 ) (19,647 ) (952,225 ) Write-offs 13,176 3,967 1,580 3,028 564 22,315 Balance at December 31, 2019 (724,263 ) (88,929 ) (29,876 ) (67,759 ) (19,083 ) (929,910 ) Right of use, net Balance at January 1, 2019 Balance at December 31, 2019 7,159,657 386,125 99,138 191,507 69,164 7,905,591 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of intangible assets | Intangibles Data Regulatory Other Total Cost of intangible assets (gross amount) Balance at January 1, 2018 17,047 8,743,013 18,602,742 1,812,090 29,174,892 Additions 263,305 4,524 73,471 341,300 Write-offs (14 ) (14 ) Transfers (253,143 ) 234,157 18,986 Balance at December 31, 2018 27,195 8,981,694 18,602,742 1,904,547 29,516,178 Additions 369,695 8,402 44,248 422,345 Transfers (384,526 ) 410,487 (25,961 ) Balance at December 31, 2019 12,364 9,400,583 18,602,742 1,922,834 29,938,523 Accumulated amortization Balance at January 1, 2018 (7,673,193 ) (11,559,717 ) (1,591,297 ) (20,824,207 ) Amortization expenses (443,268 ) (900,360 ) (108,139 ) (1,451,767 ) Impairment loss expenses (see Note 5 (iii)) (291,758 ) (291,758 ) Balance at December 31, 2018 (8,116,461 ) (12,751,835 ) (1,699,436 ) (22,567,732 ) Amortization expenses (381,874 ) (772,179 ) (107,851 ) (1,261,904 ) Transfers 8 (8 ) Impairment loss expenses (see Note 5 (iii)) (2,111,022 ) (2,111,022 ) Balance at December 31, 2019 (8,498,327 ) (15,635,036 ) (1,807,295 ) (25,940,658 ) Intangible assets, net Balance at December 31, 2018 27,195 865,233 5,850,907 205,111 6,948,446 Balance at December 31, 2019 12,364 902,256 2,967,706 115,539 3,997,865 Annual amortization rate (average) 20 % 20 % 23 % |
TRADE PAYABLES (Tables)
TRADE PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
Schedule of Trade Payables | 2019 2018 ANATEL (*) 7,572,101 7,147,137 Services 3,423,011 3,397,413 Infrastructure, network and plant maintenance materials 2,607,888 2,861,712 Rental of polls and rights-of-way 118,966 191,723 Other 289,508 647,856 Adjustment to present value (**) (5,124,107 ) (5,426,971 ) Total 8,887,367 8,818,870 Current 5,593,940 5,225,862 Non-current 3,293,427 3,593,008 Trade payables subject to the Judicial Reorganization 4,093,058 3,794,610 Trade payables not subject to the Judicial Reorganization 4,794,309 5,024,260 Total 8,887,367 8,818,870 (*) Refers for prepetition claims of the Management Regulatory Agency of the Federal Attorney General’s Office (AGU) to be settle pursuant to the JRP (see Note 24). (**) The calculation takes into consideration the contractual flows provided for in the JRP, discounted using rate from 16.4% per year to 17,2% per year, considering the maturities of each liabilities (ANATEL and other trade payables). |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative [Abstract] | |
Summary of detailed information on derivative financial instruments | 2019 2018 Liabilities Non-deliverable Forward (NDF) contracts 1,152 Total 1,152 Current 1,152 |
BORROWINGS AND FINANCING (Table
BORROWINGS AND FINANCING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [abstract] | |
Schedule of borrowings and financing | Borrowings and financing by type 2019 2018 Contractual maturity Principal Interest Foreign currency Senior Notes 6,980,817 7,068,263 Jul 2025 Semiannual Public debentures 7,110,737 6,788,519 Aug 2023 to Feb 2035 Semiannual Financial institutions Local currency BNDES 3,947,137 3,616,074 Mar 2024 to Feb 2033 Monthly Other 2,071,209 1,905,786 Jan 2020 to Feb 2035 Monthly and semiannual Foreign currency 6,725,591 6,353,322 Aug 2023 to Feb 2035 Semiannual Foreign currency multilateral financing 360,161 326,376 Aug 2024 to Feb 2030 Semiannual Default payment Local currency 207,035 207,035 Feb 2038 to Feb 2042 Single installment Foreign currency 4,239,168 4,125,317 Feb 2038 to Feb 2042 Subtotal 31,641,855 30,390,692 Incurred debt issuance cost (13,911 ) (12,126 ) Debt discount (13,401,195 ) (13,928,660 ) Total 18,226,749 16,449,906 Current 326,388 672,894 Non-current 17,900,361 15,777,012 (*) The calculation takes into consideration the contractual flows provided for in the JRP, discounted using rates that range from 12.6% per year to 16.4% per year, depending on the maturities and currency of each instrument. |
Schedule of debt issuance costs by type | Debt issuance costs by type 2019 2018 Financial institutions 13,306 11,481 Public debentures 605 645 Total 13,911 12,126 Current 1,404 1,290 Non-current 12,507 10,836 |
Schedule of debt breakdown per currency | Debt breakdown by currency 2019 2018 Euro 311,309 198,931 US dollar 9,209,982 8,617,835 Brazilian reais 8,705,458 7,633,140 Total 18,226,749 16,449,906 |
Schedule of debt breakdown per index | Debt breakdown by index Index/rate 2019 2018 Fixed rate 1.75% p.a. – 10.00% p.a. 9,078,998 8,562,117 CDI 80% CDI 4,694,687 3,949,639 TJLP 2.95% p.a. + TJLP 3,945,972 3,614,820 TR 0% p.a. 22,662 14,430 Other 0% p.a. 484,430 308,900 Total 18,226,749 16,449,906 |
Schedule of maturity analysis of long term debt | Maturity schedule of the long-term debt and debt issuance costs allocation schedule Long-term debt Debt discount Debt issuance costs 2019 2021 3,953 887,351 1,811 2022 970 887,351 1,811 2023 313,181 887,351 1,811 2024 773,745 884,980 1,811 2025 and thereafter 30,222,214 9,854,162 5,263 Total 31,314,063 13,401,195 12,507 |
Schedule of changes in borrowings and financing | Changes in borrowings and financing 2018 Interest, Amortization Principal Tax and Transfers 2019 Borrowings and financing 30,390,692 2,253,793 (935,243 ) (171,962 ) 104,575 31,641,855 Debt discount (13,928,660 ) (334,269 ) 910,491 (48,757 ) (13,401,195 ) Incurred debt issuance cost (12,126 ) (1,785 ) (13,911 ) Total 16,449,906 1,919,524 910,491 (935,243 ) (171,962 ) 54,033 18,226,749 |
LICENSES AND CONCESSIONS PAYA_2
LICENSES AND CONCESSIONS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Licenses And Concessions Payable [Abstract] | |
Schedule of licenses and concessions payable | 2019 2018 Personal Mobile Services (SMP) 58,582 29,530 STFC concessions 56,089 Total 58,582 85,619 Current 58,582 85,619 |
LEASES PAYABLE (Tables)
LEASES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lease liabilities [abstract] | |
Lease Payables | 2019 Towers 7,373,373 Physical space 403,485 Stores 103,792 Real estate 72,719 Vehicles 196,657 Total 8,150,026 Current 1,510,097 Non-current 6,639,929 |
Movements in leases payable | Movements in leases payable Balance at J Initial adoption of IFRS 16 8,167,932 New contracts 237,575 Cancellations (127,699 ) Interest 958,573 Payments (1,611,273 ) Contractual changes 524,918 Balance at December 31, 8,150,026 |
Aging list of long-term lease payments | Maturity of long-term lease payments 2021 1,501,799 2022 1,414,630 2023 1,307,923 2024 1,253,069 2025 to 2029 4,882,027 2030 and thereafter 3,613,174 Total 13,972,622 Interest (7,332,693 ) Non-current 6,639,929 |
TAX REFINANCING PROGRAM (Tables
TAX REFINANCING PROGRAM (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tax Debt Refinancing Program [Abstract] | |
Summary of Outstanding Balance of Tax Debt Refinancing Program | The outstanding balance of the Tax Debt Refinancing Program is broken down as follows: 2019 2018 Law 11941/09 and Law 12865/2013 tax financing program 417,076 496,240 PRT (MP 766/2017) (i) 54,528 PERT (Law 13496/2017) (ii) 427 2,438 Total 417,503 553,206 Current 86,721 142,036 Non-current 330,782 411,170 |
Schedule of Components of Tax Debt Refinancing Program | The amounts of the tax refinancing program created under Law 11941/2009, Provisional Act (MP) 766/2017, and Law 13469/2017, divided into principal, fine and interest, which include the debt declared at the time the deadline to join the program (Law 11941/2009 installment plan) was reopened as provided for by Law 12865/2013 and Law 12996/2014, are broken down as follows: 2019 2018 Principal Fines Interest Total Total Tax on revenue (COFINS) 2,718 151,072 153,790 199,595 Income tax 1,317 36,678 37,995 44,967 Tax on revenue (PIS) 36,785 35,242 72,027 79,885 Social security (INSS – SAT) 650 371 2,018 3,039 4,774 Social contribution 580 22 10,713 11,315 12,503 Tax on banking transactions (CPMF) 18,950 2,137 29,486 50,573 50,132 PRT – Other debts—RFB 54,528 PERT – Other debts—RFB 240 187 427 2,438 Other 12,137 4,314 71,886 88,337 104,384 Total 73,377 6,844 337,282 417,503 553,206 |
Schedule of Future Payment of Tax Financing Program | The payment schedule is as follows: 2020 86,718 2021 86,292 2022 86,292 2023 86,292 2024 71,909 Total 417,503 |
PROVISION (Tables)
PROVISION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of other provisions contingent liabilities and contingent assets [Abstract] | |
Schedule of Provision For Contingencies | Type 2019 2018 Labor (i) Overtime 855,722 602,673 (ii) Indemnities 299,096 187,499 (iii) Sundry premiums 221,743 166,963 (iv) Stability/reintegration 215,449 160,442 (v) Additional post-retirement benefits 108,827 94,691 (vi) Salary differences and related effects 101,573 61,674 (vii) Lawyer/expert fees 51,193 30,898 (viii) Severance pay 38,261 31,521 (ix) Labor fines 30,399 25,921 (x) Employment relationship 18,758 15,952 (xi) Severance Pay Fund (FGTS) 13,306 10,804 (xii) Joint liability 3,100 889 (xiii) Other claims 93,605 67,254 Total 2,051,032 1,457,181 Tax (i) State VAT (ICMS) 746,481 503,332 (ii) Tax on services (ISS) 69,208 76,389 (iii) INSS (joint liability, fees, and severance pay) 23,847 23,100 (iv) Real Estate Tax (IPTU) 150,223 (v) Other claims 61,189 47,262 Total 1,050,948 650,083 Civil (i) ANATEL 570,283 580,182 (ii) Corporate 397,946 1,124,037 (iii) Small claims courts 118,910 191,839 (iv) Other claims (1 ) 1,062,561 1,035,398 Total 2,149,700 2,931,456 Total provisions 5,251,680 5,038,720 Current 547,996 680,542 Non-current 4,703,684 4,358,178 (1) In 2018, includes R$157,809 related to the agreement entered into with Pharol, as described in Note 1 – Litigation Termination Settlement between the Company and Pharol, settled in the first quarter of 2019. |
Schedule of Activities In Provision For Contingencies | Summary of movements in provision balances Labor Tax Civil Total Balance at January 1, 2018 1,596,418 660,302 5,526,414 7,783,134 Monetary correction (i) 184,112 77,697 (34,939 ) 226,870 Additions/(reversals) (i) 99,805 (49,659 ) 42,734 92,880 Write-offs for payment/terminations (i) (423,154 ) (38,257 ) (2,602,753 ) (3,064,164 ) Balance at December 31, 2018 1,457,181 650,083 2,931,456 5,038,720 Monetary correction (ii) 485,049 60,688 1,074,641 1,620,378 Additions/(reversals) (ii) 316,182 1,002,827 (1,102,571 ) 216,438 Write-offs for payment/terminations (207,380 ) (666,563 ) (753,826 ) (1,627,769 ) Reclassified from held-for-sale assets 3,913 3,913 Balance at December 31, 2019 2,051,032 1,050,948 2,149,700 5,251,680 (i) This line item basically includes the amounts related to proceedings terminated and included in the list of the Company’s judicial reorganization creditors, which were transferred to the line item trade payables and will be paid according to the terms of the JRP. (ii) The Company continuously monitors its proceedings and revised the calculation methodology of provision estimates, taking into consideration the new profile and history of legal proceeding terminations, in the context of the JRP, as well as in the assessment of the risk of loss carried out by Management supported by its legal advisors. |
Schedule of Carrying Amounts of the Main Legal Matters With Possible Risk of Loss | The breakdown of contingent liabilities with a possible unfavorable outcome and, therefore, not recognized in accounting, is as follows: 2019 2018 Labor 797,927 770,982 Tax 28,416,097 27,586,094 Civil 1,667,900 1,723,110 Total 30,881,924 30,080,186 |
OTHER PAYABLES (Tables)
OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
Schedule of Other Payables | 2019 2018 Onerous obligation (i) 5,817,130 4,493,894 Unearned revenues (ii) 1,704,420 1,916,570 Provisions for indemnities payable 640,661 676,984 Advances from customers 313,163 215,228 Consignment to third parties 41,249 56,302 Provision for asset decommissioning 18,101 17,395 Other 404,455 510,867 Total 8,939,179 7,887,240 Current 1,405,013 1,381,919 Non-current 7,534,166 6,505,321 (i) The Company and its subsidiaries are parties to a telecommunications signals transmission capacity supply agreement using submarine cables that connect North America and South America, and also hires the supply of capacity of the space segment for the provision of the DTH TV service. Since (a) the agreement obligations exceed the economic benefits that are expected to be received throughout the agreement; and (b) the costs are unavoidable, the Company and its subsidiaries recognized, pursuant to IAS 37, an onerous obligation measured at the lowest of net output cost of the agreement brought to present value, in 2019, amounting to R$1.2 billion of the satellite transmission contract (DTH TV) and in 2018, amounting to R$4.5 billion of the transmission contract via submarine cables. (ii) Refers to the amounts received a prepayment for the assignment of the commercial operation and the use of infrastructure assets that are recognized in revenue for the agreements’ effective period. Include also certification/installation rates of the service that are recognized in the revenue pursuant to the period that the services are used by the customers. |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of classes of share capital [abstract] | |
Share Capital | Subscribed and paid-in Number of shares (in thousands) 2019 2018 Total capital in shares Common shares 5,796,478 2,298,247 Preferred shares 157,727 157,727 Total 5,954,205 2,455,974 Treasury shares Common shares 30 32,030 Preferred shares 1,812 1,812 Total 1,842 33,842 Outstanding shares Common shares 5,796,448 2,266,217 Preferred shares 155,915 155,915 Total outstanding shares 5,952,363 2,422,132 |
Summary of Calculations of Basic and Diluted Loss Per Share | The table below shows the calculations of basic and diluted earnings per share: 2019 2018 2017 Profit (loss) attributable to owners of the Company (9,000,434 ) 24,591,140 (6,365,019 ) Profit (loss) allocated to common shares - basic and diluted (8,764,803 ) 22,036,074 (4,896,241 ) Profit (loss) allocated to preferred shares – basic and diluted (235,631 ) 2,555,066 (1,468,778 ) Weighted average number of outstanding shares (in thousands of shares) Common shares - basic and diluted 5,788,447 1,344,686 519,752 Preferred shares - basic and diluted 155,615 155,915 155,915 Profit (loss) per share (in reais): Common shares - basic and diluted (1.51 ) 16.39 (9.42 ) Preferred shares - basic and diluted (1.51 ) 16.39 (9.42 ) |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of defined benefit plans [abstract] | |
Summary of Existing Pension Plans | The Company and its subsidiaries sponsor retirement benefit plans (“Pension Funds”) for their employees, provided that they elect to be part of such plan, and current beneficiaries. The table below shows the benefit plans existing at December 31, 2019. Benefit plans Sponsors Manager TCSPREV Oi, Oi Móvel and BrT Multimídia FATL TelemarPrev Oi, Telemar and Oi Móvel FATL PAMEC Oi Oi PBS-A Telemar e Oi SISTEL PBS-Telemar Telemar FATL PBS-TNC Oi Móvel FATL CELPREV Oi Móvel FATL PAMA Oi and Telemar SISTEL SISTEL – Fundação Sistel de Seguridade Social FATL – Fundação Atlântico de Seguridade Social |
Disclosure of detailed information about provision for employee benefits explanatory | Refer to the recognition of the actuarial deficit of the defined benefit plans, as shown below: 2019 2018 Actuarial liabilities Financial obligations—BrTPREV plan (i) 626,748 574,725 PAMEC Plan 6,264 4,397 Total 633,012 579,122 Non-current 633,012 579,122 (i) The Company had a financial obligations agreement entered into with Fundação Atlântico intended for the payment of the mathematical provision without coverage by the plan’s assets. With the approval and ratification of the JRP, the related claim of Fundação Atlântico against Oi is subject to the new terms and conditions of the JRP. |
Disclosure of defined benefit plans | The assets recognized are used to offset future employer contributions. These assets are broken down as follows: 2019 2018 Actuarial assets TCSPREV Plan 56,559 68,934 CELPREV Plan 222 199 PBS-TNC 3,264 Total 60,045 69,133 Current 5,430 4,880 Non-current 54,615 64,253 |
Disclosure of net defined benefit liability (asset) | Changes in the actuarial obligations, fair value of assets and amounts recognized in the balance sheet 2019 PENSION PLANS MEDICAL CARE TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMEC PAMA Present value of actuarial obligation at beginning of year 3,256,516 328,130 4,165,284 4,811,332 35,043 26 4,397 3,422,402 Interest on actuarial liabilities 283,542 28,419 367,633 415,476 3,066 2 414 308,512 Current service cost 250 34 1,613 82 2 322 Participant contributions made in the year 15 28 Benefits paid, net (262,369 ) (23,683 ) (285,160 ) (429,813 ) (2,460 ) (484 ) (229,329 ) Increase/(decrease) of assets due to changes in the Plan 183,195 Benefit obligation result allocated to other comprehensive income 500,731 32,358 729,147 660,695 4,984 1 1,937 641,713 Asset increase/(decrease) as a result of the Plan’s merger Present value of actuarial obligation at the end of the year 3,778,685 365,286 4,978,517 5,640,885 40,715 31 6,264 4,143,620 Fair value of assets at the beginning of the year 3,621,068 379,000 4,508,570 7,316,395 60,062 3,340 3,443,944 Return on plan assets 313,409 33,149 394,800 649,891 5,255 293 312,145 Amortizing contributions received from sponsor 484 Sponsor 13 65 Participants 15 28 Benefits payment (262,369 ) (23,683 ) (285,160 ) (429,813 ) (2,460 ) (484 ) (229,329 ) Benefit obligation result allocated to other comprehensive income 345,124 42,087 680,478 730,389 1,980 558 895,983 Asset increase/(decrease) as a result of the Plan’s merger Fair value of plan assets at the end of the year 4,017,260 430,646 5,298,688 8,266,862 64,837 4,191 4,422,743 (=) Net actuarial liability/(asset) amount (238,575 ) (65,360 ) (320,171 ) (2,625,977 ) (24,122 ) (4,160 ) 6,264 (279,123 ) Effect of the asset/onerous liability recognition ceiling 182,016 65,360 320,171 2,625,977 20,858 3,938 279,123 (=) Recognized net actuarial liability/(asset) (56,559 ) (3,264 ) (222 ) 6,264 2018 PENSION PLANS MEDICAL CARE BrTPREV TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMEC PAMA Present value of actuarial obligation at beginning of year 2,524,728 625,266 307,658 3,825,053 4,675,447 31,938 41 3,300 3,113,772 Interest on actuarial liabilities 218,105 78,223 29,113 362,886 439,285 3,027 4 317 299,881 Current service cost 74 196 41 1,870 55 3 273 Participant contributions made in the year 12 2 34 1 Benefits paid, net (177,215 ) (61,605 ) (23,441 ) (272,271 ) (422,312 ) 2,527 (688 ) (237,744 ) Benefit obligation result allocated to other comprehensive income 60,942 (12,212 ) 14,725 247,746 118,912 (2,505 ) (22 ) 1,468 246,220 Asset increase/(decrease) as a result of the Plan’s merger (2,626,646 ) 2,626,646 Present value of actuarial obligation at the end of the year 3,256,516 328,130 4,165,284 4,811,332 35,043 26 4,397 3,422,402 Fair value of assets at the beginning of the year 1,895,608 1,953,967 360,700 4,142,553 7,462,931 59,723 3,030 3,243,093 Return on plan assets 161,415 200,469 34,332 394,097 713,294 5,759 298 312,593 Amortizing contributions received from sponsor 11 Regular contributions received by plan 12 4 100 3 1 688 Sponsor 2 66 2 Participants 12 2 34 1 Benefits payment (177,215 ) (61,605 ) (23,441 ) (272,271 ) (422,312 ) (2,505 ) (688 ) (237,744 ) Benefit obligation result allocated to other comprehensive income 36,579 (388,177 ) 7,309 244,191 (437,518 ) (2,918 ) 11 126,002 Asset increase/(decrease) as a result of the Plan’s merger (1,916,410 ) 1,916,410 Fair value of plan assets at the end of the year 3,621,068 379,000 4,508,570 7,316,395 60,062 3,340 3,443,944 (=) Net actuarial liability/(asset) amount (364,552 ) (50,870 ) (343,286 ) (2,505,063 ) (25,019 ) (3,314 ) 4,397 (21,542 ) Effect of the asset/onerous liability recognition ceiling 295,618 50,870 343,286 2,505,063 25,019 3,115 21,542 (=) Recognized net actuarial liability/(asset) (68,934 ) (199 ) 4,397 (*) Plan merged with into TCSPREV on November 30, 2018. |
Disclosure of detailed information about expenses related to defined benefit plans explanatory | Expenses (revenue) components of the benefits 2019 PENSION PLANS MEDICAL CARE TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMEC PAMA Current service cost 250 34 1,613 82 2 322 Interest on actuarial liabilities 283,541 28,419 367,633 415,476 3,066 2 414 308,512 Return on plan assets (313,409 ) (33,149 ) (394,800 ) (649,891 ) (5,255 ) (293 ) (312,146 ) Interest on onerous liability 24,000 4,725 27,167 234,415 2,065 273 3,634 Effect of the unrecognized net actuarial asset Expenses (income) recognized in statement of profit or loss (5,618 ) 29 1,613 (42 ) (16 ) 414 322 Expenses (income) recognized in other comprehensive income 18,005 36 (1,613 ) (2,382 ) (7 ) 1,937 (322 ) Total expense (income) recognized 12,387 65 (2,424 ) (23 ) 2,351 2018 PENSION PLANS MEDICAL CARE BrTPREV TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMEC PAMA Current service cost 74 196 41 1,870 55 3 274 Interest on actuarial liabilities 218,103 78,222 29,114 362,887 439,285 3,027 4 317 299,881 Return on plan assets (161,415 ) (200,469 ) (34,332 ) (394,097 ) (713,295 ) (5,759 ) (298 ) (312,593 ) Interest on onerous liability 112,564 5,214 31,210 274,010 2,731 294 12,712 Effect of the unrecognized net actuarial asset (274 ) Expenses (income) recognized in statement of profit or loss 56,762 (9,487 ) 37 1,870 54 3 317 Expenses (income) recognized in other comprehensive income 24,364 42,233 30 (1,870 ) (891 ) (201 ) 1,469 Total expense (income) recognized 81,126 32,746 67 (837 ) (198 ) 1,786 2017 PENSION PLANS MEDICAL CARE BrTPREV TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMEC PAMA Current service cost 102 457 33 1,545 48 7 170,184 Interest on actuarial liabilities 260,649 64,927 32,488 397,842 499,261 3,328 15 378 286,035 Return on plan assets (210,579 ) (215,509 ) (35,817 ) (440,696 ) (781,757 ) (6,343 ) (301 ) (331,699 ) Interest on onerous liability 136,800 3,317 42,854 282,496 3,014 286 45,664 Effect of the unrecognized net actuarial asset (21 ) (1,545 ) (47 ) (7 ) (170,184 ) Expenses (income) recognized in statement of profit or loss 50,172 (13,325 ) 378 Expenses (income) recognized in other comprehensive income 78,147 28,149 (232 ) Effect of the unrecognized net actuarial asset Total expense (income) recognized 128,319 14,824 146 |
Disclosure of sensitivity analysis for actuarial assumptions | Main actuarial assumptions adopted on Decemb e 31, 2019 PENSION PLANS MEDICAL CARE PLANS TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMEC PAMA Nominal discount rate of actuarial liability 7.43% 7.43% 7.43% 7.43% 7.43% 7.43% 7.64% 7.64% Estimated inflation rate 3.80% 3.80% 3.80% 3.80% 3.80% 3.80% 3.80% 3.80% Estimated nominal salary increase index 4.00% 4.00% Per sponsor N.A. 8.82% 7.53% N.A. N.A. Estimated nominal benefit growth rate 3.80% 3.80% 3.80% 3.80% 3.80% 3.80% N.A. N.A. Total expected rate of return on plan assets 7.43% 7.43% 7.43% 7.43% 7.43% 7.43% 7.64% 7.64% General mortality biometric table AT-2000 Basic AT-2000 Basic AT-2000 Basic AT-2000 Basic AT-2000 Basic N.A. AT-2000 Basic AT-2000 Basic Biometric disability table Álvaro Vindas, Álvaro Vindas, Álvaro Vindas, Álvaro Vindas, Álvaro Vindas, N.A. Álvaro Vindas, Álvaro Vindas, Biometric disabled mortality table AT-49, AT-49, AT-49, AT-49, AT-49, N.A. AT-49, AT-49, Turnover rate 4.80% Nil Per sponsor, Nil Nil 2% Nil Nil Starting age of the benefits 57 years old 57 years old 55 years old N.A. 57 years old 55 years old N.A. N.A. Nominal medical costs growth rate N.A. N.A. N.A. N.A. N.A. N.A. 6.91% 6.91% N.A. = Not applicable. ADDITIONAL DISCLOSURES—2019 (a) Plans’ assets and liabilities correspond to the amounts as at December 31, 2019. (b) Master file data used for the plans managed by FATL and for the PAMEC plan are as at July 31, 2019, and for SISTEL are as at June 30, 2019, both projected for December 31, 2019. |
Disclosure of detailed information about average ceilings for investments of pension funds explanatory | The average ceilings set for the different types of investment permitted for pension funds, as at December 31, 2019 and 2018, are as follows: ASSET SEGMENT TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMA Fixed income 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Variable income 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 0.00% Structured investments 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 0.00% Investments abroad 10.00% 10.00% 10.00% 0.00% 10.00% 10.00% 0.00% Real estate 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 0.00% Loans to participants 15.00% 15.00% 15.00% 3.00% 15.00% 15.00% 0.00% The allocation of plan assets as at December 31, 2019 is as follows: ASSET SEGMENT TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMA Fixed income 86.06% 90.57% 92.46% 95.10% 85.61% 88.20% 100.00% Variable income 1.63% 0.34% 0.96% 0.00% 0.48% 3.17% 0.00% Structured investments 10.85% 7.84% 5.04% 0.00% 13.71% 7.25% 0.00% Investments abroad 0.21% 0.00% 0.11% 0.00% 0.00% 0.50% 0.00% Real estate 0.83% 0.90% 0.76% 4.10% 0.00% 0.00% 0.00% Loans to participants 0.42% 0.35% 0.67% 0.80% 0.20% 0.88% 0.00% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% The allocation of plan assets as at December 31, 2018 is as follows: ASSET SEGMENT TCSPREV PBS-Telemar TelemarPrev PBS-A PBS-TNC CELPREV PAMA Fixed income 86.17% 90.49% 92.51% 93.70% 83.87% 88.80% 100.00% Variable income 2.90% 1.30% 1.61% 0.77% 2.51% 4.00% Structured investments 9.23% 6.65% 4.21% 0.03% 12.84% 5.68% Investments abroad 0.85% 0.92% 0.79% Real estate 0.43% 0.38% 0.67% 4.67% 0.27% 1.15% Loans to participants 0.42% 0.26% 0.21% 0.83% 0.51% 0.37% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% |
Disclosure of indirect measurement of fair value of goods or services received | The information used in the executives’ stock option plan’s assessment is as follows: Grant date Stock Number of Vesting Vesting dates Average Estimated fair 12/30/2019 0.57 % 33,704,937 1/3 12/30/2020 0.95 34,406 1/3 12/30/2021 1/3 12/30/2022 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
Schedule of Segment Report Information | In preparing the financial information for this reportable segment, the transactions between the companies included in the segment have been eliminated. The financial information of this reportable segment for the periods ended December 31, 2019 and 2018 is as follows: 2019 2018 2017 Residential services 7,264,262 8,401,599 9,170,835 Residential Fixed-Line 3,281,905 4,170,105 4,880,738 Broadband 2,187,015 2,423,291 2,641,836 Pay-TV 1,752,053 1,755,061 1,577,745 Interconnection 43,289 53,142 70,516 Personal mobility services 7,017,311 7,250,462 7,644,515 Mobile Telephony 6,601,729 6,607,613 6,914,862 Interconnection 257,099 447,980 500,106 Handsets, sim cards and other accessories 158,483 194,869 229,547 SMEs/Corporate (B2B) services 5,527,817 5,980,807 6,485,899 Other services and businesses 140,004 226,985 255,691 Total net operating revenue 19,949,394 21,859,853 23,556,940 Operating expenses Depreciation and amortization (6,804,870 ) (5,740,079 ) (5,031,477 ) Interconnection (484,061 ) (653,867 ) (771,212 ) Personnel (2,487,632 ) (2,554,375 ) (2,749,038 ) Third-party services (5,957,763 ) (5,833,570 ) (6,149,189 ) Grid maintenance services (1,012,857 ) (1,102,809 ) (1,235,760 ) Handset and other costs (159,442 ) (185,436 ) (214,102 ) Advertising and publicity (494,348 ) (379,676 ) (410,495 ) Rentals and insurance (2,571,245 ) (4,194,135 ) (4,152,521 ) Provisions/reversals (216,438 ) (202,122 ) (469,440 ) Expected losses on trade receivables (488,269 ) (689,735 ) (740,576 ) Impairment losses (2,111,022 ) (291,758 ) 4,747,141 Taxes and other expenses (18,396 ) (201,296 ) (475,018 ) Other operating income (expenses), net (6,974 ) (5,016,358 ) (8,196,415 ) OPERATING INCOME BEFORE FINANCIAL INCOME (EXPENSES) AND TAXES (2,863,923 ) (5,185,363 ) (2,291,162 ) FINANCIAL INCOME (EXPENSES) Financial income 2,659,074 30,850,746 6,917,975 Financial expenses (8,452,638 ) (4,339,053 ) (9,246,160 ) PRE-TAX PROFIT (LOSS) (8,657,487 ) 21,326,330 (4,619,347 ) Income tax and social contribution 57,174 3,270,890 (1,137,715 ) PROFIT (LOSS) FOR THE YEAR (8,600,313 ) 24,597,220 (5,757,062 ) |
Reconciliation Schedule Of Revenue Reportable Segments And Other Segments Explanatory | In the years ended December 31, 2019, 2018 and 2017, the reconciliation of the revenue from the segment telecommunications in Brazil and total consolidated revenue is as follows: 2019 2018 2017 Net operating revenue Revenue related to the reportable segment 19,949,394 21,859,853 23,556,940 Revenue related to other businesses 186,789 200,161 232,714 N et operating revenue (Note 5) 20,136,183 22,060,014 23,789,654 |
Reconciliation Between the Profit (loss) Before Financial Income (expenses) and Taxes of the segment Telecommunications in Brazil and Consolidated Profit (loss) Before Financial Income (expenses) and Taxes Information | In the years ended December 31, 2019, 2018 and 2017, the reconciliation between the profit or loss before financial income (expenses) and taxes of the segment Telecommunications in Brazil and the consolidated profit (loss) before financial income (expenses) and taxes is as follows: 2019 2018 2017 Profit (loss) before financial income (expenses) and taxes Telecommunications in Brazil (2,863,923 ) (5,185,363 ) (2,291,162 ) Other businesses (113,447 ) (82,895 ) (69,866 ) I ncome before financial income (expenses) and taxes (Note 5) (2,977,370 ) (5,268,258 ) (2,361,028 ) |
Total Assets, Liabilities and Property, Plant and Equipment and Intangible Assets Per Geographic Market | Total assets, liabilities and tangible and intangible assets per geographic market as at December 31, 2019 are as follows: 2019 Total assets Total Tangible Intangible Investment in Brazil 67,294,245 53,525,978 38,910,834 3,997,865 7,396,983 Other, primarily Africa 4,597,577 569,338 84,122 21,327 28,530 2018 Total assets Total Tangible Intangible Investment in Brazil 60,514,610 42,015,116 28,425,563 6,948,446 5,211,774 Other, primarily Africa 4,923,187 526,870 108,768 47,601 34,467 |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
Disclosure of transactions between related parties | Transactions with jointly controlled entities, associates, and unconsolidated entities 2019 2018 Accounts receivable and other assets 7,216 6,359 Hispamar 426 Other entities 6,790 6,359 2019 2018 Accounts payable and other liabilities 74,254 74,210 Hispamar 71,841 66,704 Other entities 2,413 7,506 2019 2018 Revenue Revenue from services rendered 380 347 Other entities 380 347 Other income 502 Hispamar 502 Financial income 430 430 Other entities 430 430 2019 2018 Costs/expenses Operating costs and expenses (226,031 ) (236,087 ) Hispamar (203,426 ) (207,271 ) Other entities (22,605 ) (28,816 ) Financial expenses (257 ) (167 ) Hispamar (245 ) (158 ) Other entities (12 ) (9 ) |
INSURANCE (Tables)
INSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of types of insurance contracts [abstract] | |
Disclosure of types of insurance contracts | The insurance policies provide the following coverage, per risk and type of asset: 2019 2018 Insurance line Operational risks and loss of profits 800,000 700,000 Civil liability—third parties (*) 322,408 309,984 Fire—inventories 170,000 150,000 Theft—inventories 20,000 20,000 Civil liability—general 30,000 20,000 Civil liability—vehicles 2,000 2,000 (*) Based on the foreign exchange rate prevailing at December 31, 2019 (ptax): R$4.0301 = US$1.00 |
HELD-FOR-SALE ASSETS (Tables)
HELD-FOR-SALE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Held For Sale Assets [Abstract] | |
Disclosure Of Non Current Assets And Liabilities Or Disposal Groups Classified As Held For Sale Explanatory | 2019 2018 Assets Operations in Africa (a) 4,271,348 4,923,187 Nonstrategic assets (b) 119,742 Total 4,391,090 4,923,187 2019 2018 Liabilities Operations in Africa (a) 491,225 526,870 Nonstrategic liabilities (b) 3,070 Total 494,295 526,870 |
Disclosure Of Detailed Information About Assets And Liabilities Held For Sale Explanatory | The main components of the assets held sale and liabilities associated to assets held for sale of the African operations are as follows: Operations in Africa 2019 (1 ) 2018 Held-for-sale assets 4,271,348 4,923,187 Cash, cash equivalents and cash investments 63,993 82,639 Accounts receivable 113,699 108,343 Dividends receivable (i) 2,435,014 2,566,935 Held-for-sale asset (i) 1,474,699 1,843,778 Other assets 74,300 145,709 Investments 4,916 19,414 Property, plant and equipment 83,400 108,768 Intangible assets 21,327 47,601 Liabilities directly associated to assets held for sale 491,225 526,870 Borrowings and financing 11,589 188 Trade payables 37,119 52,064 Other liabilities 442,517 474,618 Non-controlling interests (ii) 146,180 243,491 Total held-for-sale assets, net of the corresponding liabilities 3,633,943 4,152,826 (1) The non-operating (i) Represents the indirect interest held by PT Ventures in the dividends receivable and the fair value of the financial investment in Unitel, both classified as held for sale. The assets from the investment held in PT Ventures are measure substantially at the fair value of the investment for sale, which occurred on January 23, 2020, as referred to above, in Note 33; (ii) Represented mainly by the Samba Luxco’s 14% stake in Africatel and, consequently, in its net assets. |
RECONCILIATION BETWEEN U.S. G_2
RECONCILIATION BETWEEN U.S. GAAP AND IFRS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of comparative information prepared under previous GAAP [line items] | |
Schedule of Prepetition Liabilities as Reclassified | The movements in the restructured prepetition liabilities and the accounting adjustments made for initial recognition of the terms and conditions set forth by the approved and ratified JRP, including the effects on the fair value of these liabilities pursuant to the criteria of ASC 820, and applicable GAAP, are as follow: December 31, U.S. GAAP Reclassifications Mediations Haircut (i) Equity (ii) Fair value / Financial December 31, U.S. GAAP Liabilities subject to compromise Bondholders 32,314,638 (32,314,638 ) — — — — — — BNDES 3,326,952 (3,326,952 ) — — — — — — Other Borrowings and financing 13,487,957 (13,487,957 ) — — — — — — Derivative financial instrument 104,694 (104,694 ) — — — — — — Trade payables 2,139,312 (2,139,312 ) — — — — — — Provision for civil contingencies—Anatel 9,333,795 (9,333,795 ) — — — — — — Provision for pension plan 560,046 (560,046 ) — — — — — — Other 43,333 (43,333 ) — — — — — — Provision for labor contingencies 899,226 (1,036,172 ) 136,946 — — — — — Provision for civil—other claims 2,929,275 (2,218,538 ) (710,737 ) — — — — — Total—Liabilities subject to compromise 65,139,228 (64,565,437 ) (573,791 ) — — — — — Bondholders — 32,314,638 (161,600 ) (11,054,800 ) (11,613,980 ) (4,807,262 ) 2,035,699 6,712,695 BNDES – Borrowings and financing — 3,326,952 — — — — 289,122 3,616,074 Other Borrowings and financing — 13,592,651 50,375 — — (9,121,399 ) 1,599,510 6,121,137 Anatel (AGU) and other trade payables — 10,588,661 445,077 (1,826,678 ) — (5,577,234 ) 164,784 3,794,610 Provision for labor, civil and Anatel contingencies — 4,182,489 56,975 — — — 149,173 4,388,637 Provision for pension plan — 560,046 — — — — 14,679 574,725 Total—Liabilities not subject to compromise — 64,565,437 390,827 (12,881,478 ) (11,613,980 ) (19,505,895 ) 4,252,967 25,207,878 (i) Represent gains on restructuring of borrowings and financings, trade payables owing to ANATEL-AGU (ii) Represent the fair value of shares issued in partial settlement of the Senior Notes. (iii) The financial liabilities have been adjusted to fair value according to the criteria of ASC 852 as of the time at which it has reclassified each of the financial liabilities that were legally affected by the JRP from liabilities subject to compromise to borrowings and financings or trade payables. It was calculated taking into consideration the contractual flows provided for in the JRP, discounted using rates that range from 12.6% per year to 16.4% per year, depending on the maturities and currency of each instrument. (iv) Represent the contractual interest and foreign currency fluctuation calculated after completed the financial debt restructuring and other claims restructuring in the terms and conditions provided in the JRP. |
Schedule of Judicial Reorganization Adjustments to Net Income | The following is a summary of the Judicial Reorganization adjustments to net income for the year ended December 31, 2018 and 2017: Judicial reorganization December 31, December 31, Settlement for lesser amounts of prepetition obligations and fair value recognition under U.S. GAAP (6,527,238 ) 73,135 Gain on reversal of interest and foreign currency on loans and financings under IFRS 5,196,222 6,429,611 (1,331,016 ) (6,502,746 ) |
Schedule of Quantification Of Certain Amounts Reconciled Between Previous GAAP And IFRS | The reconciliations below quantify the effect of the U.S. GAAP to IFRS on the indicated dates: Reconciliation Equity Net income December 31, December 31, December 31, December 31, Under U.S.GAAP 29,199,496 (9,684,061 ) 27,393,837 (4,027,661 ) Impairment of long-lived assets (a ) (1,226,125 ) (1,084,707 ) (141,418 ) 5,526,563 Business combinations prior to January 1, 2009 (b ) 44,981 40,859 4,122 4,313 Pension plans and other post-retirement benefits (c ) (689,574 ) (1,598,792 ) (115,080 ) (197,700 ) Capitalization of interest, net of amortization (d ) 60,928 62,711 (1,780 ) (9,322 ) Provision for onerous contracts (e ) (4,493,895 ) (4,493,895 ) Settlement of judicial reorganization (f ) 1,331,016 (1,331,016 ) (6,502,746 ) Deferred income tax (g ) (2,579,548 ) 3,300,785 (1,449,609 ) Under IFRS 22,895,811 (13,512,522 ) 24,615,555 (6,656,162 ) |
Schedule of Detailed Reconciliation of Balance Sheet Statement Between US GAAP And IFRS | Reconciliation of balance sheet as at December 31, 2018 USGAAP Impairment (a) Business (b) Pension plans (c) Capitalization Provision for (e) Settlement of (f) Deferred (g) Reclassifications IFRS Cash and cash equivalents 4,385,329 4,385,329 Short-term investments 201,975 201,975 Accounts receivable 6,516,555 6,516,555 Recoverable income taxes 621,246 621,246 Other taxes 803,252 803,252 Judicial Deposits 1,715,934 1,715,934 Inventories 317,503 317,503 Prepaid expenses 743,953 743,953 Pension plan assets 4,880 4,880 Held-for-sale 4,923,187 4,923,187 Other assets 1,079,670 1,079,670 Total current assets 21,313,484 — — — — — — — 21,313,484 Long-term investments 36,987 36,987 Other taxes 715,976 715,976 Deferred tax assets 23,050 23,050 Judicial Deposits 7,018,786 7,018,786 Investments 117,840 117,840 Property, plant and equipment, net 28,468,798 (228,244 ) 124,081 60,928 28,425,563 Intangible assets 8,025,442 (997,881 ) (79,115) 6,948,446 Pension plan assets 753,827 (689,574) 64,253 Prepaid expenses 522,550 522,550 Other assets 773,411 (522,549) 250,862 Total non-current 45,934,117 (1,226,125 ) 44,966 (689,574) 60,928 — — — 1 44,124,313 Total assets 67,247,601 (1,226,125 ) 44,966 (689,574) 60,928 — — — 1 65,437,797 Trade payables 5,225,862 (201,602) 5,024,260 Trade payables – Subject to the JRP 201,602 201,602 Borrowings and financing 672,894 672,894 Payroll, related taxes and benefits 906,655 906,655 Income taxes payable 27,026 27,026 Other taxes 1,033,868 1,033,868 Tax financing program 142,036 142,036 Dividends and interest on capital 6,168 6,168 Provision 680,542 680,542 Unearned revenues 229,497 (229,497) Advances from customers 73,094 (73,094) Licenses and concessions payable 85,619 85,619 Liabilities associated to held-for-sale 526,870 526,870 Other payables 629,939 449,389 302,591 1,381,919 Total current liabilities 10,240,070 — — — — 449,389 — — 10,689,459 Trade payables – Subject to the JRP 3,593,008 3,593,008 Borrowings and financing 15,777,012 15,777,012 Other taxes 628,716 628,716 Tax financing program 411,170 411,170 Provision 4,358,178 4,358,178 Provision for pension plans 579,122 579,122 Unearned revenues 1,687,073 (1,687,073) Advances from customers 142,134 (142,134) Other payables 631,622 (13) 4,044,505 1,829,207 6,505,321 Total non-current 27,808,035 — — 13 — — 4,044,505 — — 31,852,527 Total liabilities 38,048,105 — (13) — — 4,493,894 — — 42,541,986 Shareholders’ equity attributable to the Company and subsidiaries 28,956,006 (1,226,125 ) 44,979 (689,574) 60,928 (4,493,894) — — 22,652,320 Non-controlling 243,490 1 243,491 Total shareholders’ equity 29,199,496 (1,226,125 ) 44,979 (689,574) 60,928 (4,493,894) — — 1 22,895,811 Total liabilities and shareholders’ equity 67,247,601 (1,226,125 ) 44,966 (689,574) 60,928 — — — 1 65,437,797 |
Schedule of Detailed Reconciliation of Income Statement Between US GAAP And IFRS | Reconciliation of net income for the year ended December 31, 2018 USGAAP Impairment of long-lived Business Pension Capitalization Provision Settlement of Deferred Reclassification IFRS Net operating revenue 22,060,014 22,060,014 Cost of sales and services (15,822,732 ) 150,389 4,121 (45,457 ) (12,729 ) 141,758 (594,450 ) (16,179,100 ) Gross profit 6,237,282 150,389 4,121 (45,457 ) (12,729 ) 141,758 — — (594,450 ) 5,880,914 Operating (expenses) income Selling expenses (4,478,352 ) (28,655 ) 372,977 281,028 (3,853,002 ) General and administrative expenses (2,697,865 ) (40,853 ) (2,738,718 ) Other operating income 2,204,134 2,204,134 Other operating expenses 417,159 (291,807 ) (115 ) (4,883,620 ) (112,491 ) (1,890,712 ) 6,761,586 Reorganization items, net 31,580,541 (31,580,541 ) Loss before financial income (expenses) and taxes 31,058,765 (141,418 ) 4,121 (115,080 ) (12,729 ) (4,741,862 ) (31,693,032 ) 372,977 (5,268,258 ) Financial income (expenses), net (4,012,067 ) 10,949 247,968 30,362,016 26,608,866 Profit (loss) before taxes 27,046,698 (141,418 ) 4,121 (115,080 ) (1,780 ) (4,493,894 ) (1,331,016 ) 372,977 21,340,608 Current income tax 115,706 115,706 Income tax expense (current and deferred) 347,139 2,927,808 (115,706 ) 3,159,241 Profit (loss) for the year 27,393,837 (141,418 ) 4,121 (115,080 ) (1,780 ) (4,493,894 ) (1,331,016 ) 3,300,785 24,615,555 Profit (loss) attributable to owners of the Company 27,369,422 (141,418 ) 4,121 (115,080 ) (1,780 ) (4,493,894 ) (1,331,016 ) 3,300,785 24,591,140 Profit (loss) attributable to non-controlling 24,415 24,415 Reconciliation of net income for the year ended December 31, 2017 USGAAP Impairment of long-lived Business Pension Capitalization Provision Settlement of Deferred Reclassification IFRS Net operating revenue 23,789,654 23,789,654 Cost of sales and services (15,676,216 ) 779,368 4,313 (82,045 ) (11,670 ) (682,403 ) (15,668,653 ) Gross profit 8,113,438 779,368 4,313 (82,045 ) (11,670 ) — — — (682,403 ) 8,121,001 Operating (expenses) income Selling expenses (4,399,936 ) (42,901 ) 340,281 (4,102,556 ) General and administrative expenses (3,064,252 ) (72,556 ) (3,136,808 ) Other operating income 1,985,101 1,985,101 Other operating expenses (1,043,922 ) 4,747,195 (198 ) (7,287,862 ) (1,642,979 ) (5,227,766 ) Reorganization items, net (2,371,918 ) 2,371,918 Loss before financial and taxes (2,766,590 ) 5,526,563 4,313 (197,700 ) (11,670 ) — (4,915,944 ) — (2,361,028 ) Financial expenses, net (1,612,058 ) 2,348 (1,586,802 ) (3,196,512 ) Profit (loss) before taxes (4,378,648 ) 5,526,563 4,313 (197,700 ) (9,322 ) — (6,502,746 ) — (5,557,540 ) Current income tax (906,080 ) (906,080 ) Income tax expense (current and deferred) 350,987 (1,449,609 ) 906,080 (192,542 ) Loss for the year (4,027,661 ) 5,526,563 4,313 (197,700 ) (9,322 ) — (6,502,746 ) (1,449,609 ) (6,656,162 ) Loss attributable to owners of the Company (3,736,518 ) 5,526,563 4,313 (197,700 ) (9,322 ) 0 (6,502,746 ) (1,449,609 ) (6,365,019 ) Loss attributable to non-controlling (291,143 ) (291,143 ) |
Schedule of Detailed Reconciliation of Comprehensive Income Between US GAAP And IFRS | Reconciliation of comprehensive income for the year ended December 31, 2018 USGAAP Impairment (a) Business (b) Pension (c) Capitalization (d) Provision (e) Settlement of (f) Deferred (g) IFRS Profit (loss) for the year 27,393,837 (141,418 ) 4,121 (115,080 ) (1,780 ) (4,493,894 ) (1,331,016 ) 3,300,785 24,615,555 Other comprehensive income (loss) Foreign currency translation adjustments (110,098 ) (110,098 ) (110,098) — — — — — — — (110,098) Pension and other postretirement benefit plans: Net actuarial loss from continuing operations (918,782 ) 1,024,297 105,515 Pension and other postretirement benefit plans (918,782 ) — — 1,024,297 — — — — 105,515 — — — — — — — — — Income tax effect on other comprehensive income (loss): Pension and other postretirement benefit plans 312,386 (348,261 ) (35,875 ) 312,386 — — (348,261) — — — — (35,875) Total comprehensive income (loss) for the year 26,677,343 (141,418 ) 4,121 560,956 (1,780 ) (4,493,894 ) (1,331,016 ) 3,300,785 24,575,097 Comprehensive loss attributable to non-controlling (49,966 ) (49,966 ) Comprehensive income (loss) attributable to controlling shareholders 26,727,309 (141,418 ) 4,121 560,956 (1,780 ) (4,493,894 ) (1,331,016 ) 3,300,785 24,625,063 Reconciliation of comprehensive income for the year ended December 31, 2017 USGAAP Impairment (a) Business (b) Pension (c) Capitalization (d) Provision (e) Settlement of (f) Deferred (g) IFRS December 31, Loss for the year (4,027,661 ) 5,526,563 4,313 (197,700 ) (9,322 ) — (6,502,746 ) (1,449,609 ) (6,656,162 ) Other comprehensive income (loss) Foreign currency translation adjustments 165,713 (1,943 ) 163,770 Decrease of interest shares in subsidiary (374,130 ) 374,130 — (208,417) — — — — — — 372,187 163,770 Pension and other postretirement benefit plans: Net actuarial loss from continuing operations (130,846 ) 161,099 30,253 Pension and other postretirement benefit plans (130,846 ) — — 161,099 — — — — 30,253 Income tax effect on other comprehensive income (loss): Pension and other postretirement benefit plans 32,157 (42,528 ) (10,371 ) 32,157 — — (42,528) — — — — (10,371) Total comprehensive (loss) for the year (4,334,767 ) 5,526,563 4,313 (79,129 ) (9,322 ) — (6,502,746 ) (1,077,422 ) (6,472,510 ) Comprehensive loss attributable to non-controlling (64,153 ) (205,044 ) (269,197 ) Comprehensive loss attributable to controlling shareholders (4,270,614 ) 5,526,563 4,313 (79,129 ) (9,322 ) — (6,502,746 ) (872,378 ) (6,203,313 ) |
Schedule of Detailed Information of Cash Flow Reconciliation Between US GAAP And IFRS | Reconciliation of cash flow for the year ended December 31, 2018 USGAAP Impairment (a) Business (b) Pension (c) Capitalization (d) Provision (e) Settlement of (f) Deferred (g) Reclassification IFRS Operating activities Profit (loss) for the year 27,393,837 (141,418 ) 4,121 (115,080 ) (1,780 ) (4,493,894 ) (1,331,016 ) 3,300,785 24,615,555 Income tax expenses (347,139 ) — — — — — — (2,927,808 ) (3,274,947 ) Profit (loss) before income taxes 27,046,698 (141,418 ) 4,121 (115,080 ) (1,780 ) (4,493,894 ) (1,331,016 ) 372,977 21,340,608 Income tax reclassification 347,139 (347,139 ) — Adjustments to reconcile net income (loss) to cash provided by operating activities Loss (gain) on financial instruments 3,415,354 (10,949 ) (389,726 ) (5,080,135 ) 22,099 (2,043,357 ) Gains of restructuring of third-party borrowings — (11,054,800 ) (11,054,800 ) Fair value adjustment to borrowings and financing — (13,928,659 ) (13,928,659 ) Present value adjustment to other liabilities — (1,167,043 ) (1,167,043 ) Depreciation and amortization 5,952,905 (150,389 ) (4,121 ) 12,729 (1 ) 5,811,123 Onerous obligation 4,883,620 4,883,620 Impairment of held-for-sale (292,799 ) 292,799 Estimated loss on doubtful debts 1,224,248 (372,977 ) 851,271 Provisions (reversals) (19,465 ) 112,491 93,026 Provision for pension plans (114,813 ) 115,080 267 Impairment losses — 291,807 (49 ) 291,758 Deferred tax expense (benefit) (231,433 ) 231,433 — Reorganization items, net (31,580,541 ) 31,580,541 — Equity in investees 13,492 13,492 Loss on disposal of capital assets 215,398 215,398 Concession Agreement Extension Fee—ANATEL 68,333 68,333 Employee and management profit sharing 237,253 237,253 Monetary correction to provisions/(reversals) 226,870 226,870 Monetary correction to tax refinancing program 28,079 28,079 Other (637,518 ) (637,518 ) Changes in assets and liabilities Accounts receivable (365,771 ) (365,771 ) Inventories (48,280 ) (48,280 ) Taxes 121,951 121,951 Held-for-trading financial assets (1,191,664 ) (1,191,664 ) Redemption of held-for-trading financial assets 1,103,920 1,103,920 Trade payables (860,900 ) (860,900 ) Payroll, related taxes and benefits (253,902 ) (253,902 ) Provisions (434,974 ) (434,974 ) Net increase in income taxes refundable and payable (799,189 ) 115,706 683,483 Employee and management profit sharing 237,253 (237,253 ) Changes in assets and liabilities held for sale (257,643 ) (257,643 ) Other assets and liabilities (183,838 ) 868,621 (159,123 ) 525,660 Financial charges paid - debt (19,215 ) (19,215 ) Financial charges paid - other (2,884 ) (2,884 ) Income tax and social contribution paid—Company (495,038 ) (495,038 ) Income tax and social contribution paid—third parties (188,445 ) (188,445 ) Net cash provided by (used in) operating activities 2,862,536 — — — — — — — — 2,862,536 Investing activities Capital expenditures (5,246,241 ) (5,246,241 ) Proceeds from the sale of investments, tangibles and intangibles 22,276 22,276 Judicial deposits (775,953 ) (775,953 ) Redemption of judicial deposits 1,083,043 1,083,043 Net cash used in by in investing activities (4,916,875 ) — — — — — — — — (4,916,875 ) Financing activities Repayment of principal of borrowings, financing and derivatives (161,884 ) (161,884 ) Payments of obligation for licenses and concessions (1,491 ) (1,491 ) Payments of obligation for tax refinancing program (265,495 ) (265,495 ) Payment of dividends and interest on capital (54 ) (54 ) Exercise of warrants 4,580 4,580 Net cash used in financing activities (424,344 ) — — — — — — — — (424,344 ) Foreign exchange differences on cash and cash equivalents 1,328 1,328 Cash flows for the year (2,477,355 ) — — — — — — — — (2,477,355 ) Cash and cash equivalents beginning of year 6,862,684 6,862,684 Cash and cash equivalents end of year 4,385,329 — — — — — — — — 4,385,329 Reconciliation of cash flow for the year ended December 31, 2017 USGAAP Impairment (a) Business (b) Pension (c) Capitalization (d) Provision (e) Settlement of (f) Deferred (g) Reclassification IFRS December 31, Operating activities Loss for the year (4,027,661 ) 5,526,563 4,313 (197,700 ) (9,322 ) — (6,502,746 ) (1,449,609 ) (6,656,162 ) Income tax (350,987 ) — — — — — — 1,449,609 1,098,622 Loss before income taxes (4,378,648 ) 5,526,563 4,313 (197,700 ) (9,322 ) — (6,502,746 ) — (5,557,540 ) Income tax reclassification 350,987 (350,987 ) — Adjustments to reconcile net income (loss) to cash provided by operating activities Loss (gain) on financial instruments (1,115,823 ) (2,348 ) 6,234,447 3,927 5,120,203 Present value adjustment to other liabilities (4,873,000 ) (4,873,000 ) Depreciation and amortization 5,881,302 (779,368 ) (4,313 ) 11,670 1 5,109,292 Impairment (reversal) of held-for-sale 267,008 (267,008 ) — Estimated loss on doubtful debts 784,403 784,403 Provisions 143,517 7,218,787 7,362,304 Provision for pension plans (197,141 ) 197,700 559 Impairment losses (reversal) 46,534 (4,747,195 ) (46,480 ) (4,747,141 ) Deferred tax expense (benefit) (1,257,068 ) 1,257,068 — Reorganization items, net 2,371,918 (2,371,918 ) Equity in investees 433 433 Loss on disposal of capital assets 211,735 211,735 Concession Agreement Extension Fee—ANATEL 88,658 88,658 Employee and management profit sharing 298,789 298,789 Monetary correction to provisions/(reversals) 674,668 674,668 Monetary correction to tax refinancing program 27,294 27,294 Other 449,722 449,722 Changes assets and liabilities Accounts receivable (253,469 ) (253,469 ) Inventories 173,283 173,283 Taxes 477,164 477,164 Held-for-trading financial assets (601,200 ) (601,200 ) Redemption of held-for-trading financial assets 775,456 775,456 Trade payables (374,003 ) (374,003 ) Payroll, related taxes and benefits (42,727 ) (42,727 ) Provision for contingencies (114,336 ) (312,313 ) (426,649 ) Net increase in income taxes refundable and payable 399,182 (906,081 ) 506,899 — Provision for pension plans 54 (54 ) — Employee and management profit sharing 298,789 (298,789 ) — Changes in assets and liabilities held for sale 701,416 701,416 Other 238,443 606,743 (1,312,253 ) (467,067 ) Financial charges paid - debt (1,412 ) (1,412 ) Financial charges paid - other (2,515 ) (2,515 ) Income tax and social contribution paid—Company (314,162 ) (314,162 ) Income tax and social contribution paid—third parties (192,736 ) (192,736 ) Net cash provided by operating activities 4,401,758 — — — — — — — — 4,401,758 — Investing activities Capital expenditures (4,344,238 ) (4,344,238 ) Proceeds from the sale of property, plant and equipment 5,016 5,016 Judicial deposits (425,563 ) (425,563 ) Redemption of judicial deposits 343,129 343,129 Other Net cash used in by in investing activities (4,421,656 ) — — — — — — — — (4,421,656 ) Financing activities Repayment of principal of borrowings, financing (659 ) (659 ) Payments of obligation for licenses and concessions (104,449 ) (104,449 ) Payments of obligation for tax refinancing program (226,776 ) (226,776 ) Share buyback (300,429 ) (300,429 ) Payment of dividends and interest on capital (59,462 ) (59,462 ) Net cash used in financing activities (691,775 ) — — — — — — — — (691,775 ) Foreign exchange differences on cash and cash equivalents 11,106 (1 ) 11,105 Cash flows for the year (700,568 ) — — — — — — — (1 ) (700,568 ) Cash and cash equivalents beginning of year 7,563,251 1 7,563,252 Cash and cash equivalents end of year 6,862,684 — — — — — — — — 6,862,684 |
Accounting Standard Codification Eight Hundred And Fifty Two [Member] | |
Disclosure of comparative information prepared under previous GAAP [line items] | |
Schedule of Liabilities Subject to Compromise Recorded Under U.S GAAP | The following table reflects prepetition liabilities subject to compromise recorded under U.S. GAAP purpose as at December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Borrowings and financing — 49,129,547 Derivative financial instrument — 104,694 Trade payables — 2,139,312 Provision for civil contingencies—Anatel — 9,333,795 Provision for pension plan — 560,046 Other — 43,333 Provision for labor contingencies — 899,226 Provision for civil—other claims — 2,929,275 Liabilities subject to compromise (*) — 65,139,228 |
Schedule of Reorganization Incomes Expenses Net | December 31, 2018 December 31, 2017 Gain on restructuring of Qualified Bonds 12,881,478 Adjustment to fair value—Borrowings and financing 13,928,661 Adjustment to present value—Anatel (AGU) and other payables 5,577,234 Anatel provision for contingencies (1,568,798 ) Other provision for contingencies (a) (347,437 ) (1,146,458 ) Income from short-term investments 174,281 713,276 Professional fees (b) (633,676 ) (369,938 ) Total reorganization items, net 31,580,541 (2,371,918 ) |
General Information - Additiona
General Information - Additional information (Detail) | Dec. 23, 2019USD ($) | May 20, 2019EUR (€) | Jan. 25, 2019BRL (R$)shares | Jan. 21, 2019BRL (R$)shares | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | Jan. 16, 2019shares | Jul. 20, 2018shares |
Statement [Line Items] | |||||||||
Nature of business | Switched Fixed-line Telephony Services (“STFC”) concessionaire, operating since July 1998 in Region II of the General Concession Plan (“PGO”), which covers the Brazilian states of Acre, Rondônia, Mato Grosso, Mato Grosso do Sul, Tocantins, Goiás, Paraná, Santa Catarina and Rio Grande do Sul, and the Federal District, in the provision of STFC as a local and intraregional long-distance carrier. Since January 2004, the Company also provides domestic and international long-distance services in all Regions and local services outside Region II | ||||||||
Common stock issued during the period,shares | shares | 1,514,299 | ||||||||
Proceeds from share issue | R$ | R$ 4000000000 | ||||||||
Total shareholders equity | R$ | 17,796,506,000 | R$ 22895811000 | R$ 13512523000 | ||||||
Profit loss | R$ | (9,095,107,000) | 24,615,555,000 | R$ 6656162000 | ||||||
Nonconvertible Debentures [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes notional amount | $ | $ 2,500,000,000 | ||||||||
Notes interest rate | 13.61% | ||||||||
Notes year of maturity | (24) months | ||||||||
Nonconvertible debentures, interest rate term | U.S. dollar foreign exchange fluctuation plus interest of (i) twelve point sixty-six percent (12.66%) per year | ||||||||
Nonconvertible debentures, interest rate | 12.66% | ||||||||
Ordinary shares [member] | |||||||||
Statement [Line Items] | |||||||||
Proceeds of shares subscriptions | R$ | R$ 2011000000 | ||||||||
Common stock issued during the period,shares | shares | 91,080,933 | 1,530,457,356 | |||||||
Capital Increase Scheme [Member] | |||||||||
Statement [Line Items] | |||||||||
Common stock issued during the period,shares | shares | 1,604,268,162 | ||||||||
Common shares stock excess issued during the year | shares | 3,225,806,451 | ||||||||
Proceeds from share issue | R$ | R$ 4.0 | ||||||||
Capital Increase Scheme [Member] | New Funds And Commitment Shares American Depository Receipts [Member] | |||||||||
Statement [Line Items] | |||||||||
Common stock issued during the period,shares | shares | 5,954,205,001 | ||||||||
Capital Increase Scheme [Member] | Ordinary shares [member] | New Funds And Commitment Shares American Depository Receipts [Member] | |||||||||
Statement [Line Items] | |||||||||
Common stock issued during the period,shares | shares | 5,796,477,760 | ||||||||
Capital Increase Scheme [Member] | Preference shares [member] | New Funds And Commitment Shares American Depository Receipts [Member] | |||||||||
Statement [Line Items] | |||||||||
Common stock issued during the period,shares | shares | 157,727,241 | ||||||||
Capital Increase Scheme [Member] | Backstop Investors [Member] | New Funds And Commitment Shares American Depository Receipts [Member] | |||||||||
Statement [Line Items] | |||||||||
Paid in capital | R$ | R$ 32538937 | ||||||||
Judicial Reorganisation [Member] | |||||||||
Statement [Line Items] | |||||||||
Common stock issued during the period,shares | shares | 3,225,806,451 | ||||||||
Total shareholders equity | R$ | 17,796,506 | 22,895,811 | |||||||
Profit loss | R$ | 9,095,107 | 24,615,555 | |||||||
Working capital | R$ | R$ 6157364 | R$ 10624025 | |||||||
Judicial Reorganisation [Member] | Portugal Telecom International Finance BVs [Member] | ISIN One [Member] | Default Payment Plan By Clause Four Point Three Point Six [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes notional amount | € 500,000,000 | ||||||||
Notes interest rate | 4.375% | ||||||||
Notes year of maturity | 2017 | ||||||||
Judicial Reorganisation [Member] | Portugal Telecom International Finance BVs [Member] | ISIN Two [Member] | Default Payment Plan By Clause Four Point Three Point Six [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes notional amount | € 750,000,000 | ||||||||
Notes interest rate | 5.875% | ||||||||
Notes year of maturity | 2018 | ||||||||
Judicial Reorganisation [Member] | Portugal Telecom International Finance BVs [Member] | ISIN Three [Member] | Default Payment Plan By Clause Four Point Three Point Six [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes notional amount | € 750,000,000 | ||||||||
Notes interest rate | 5.00% | ||||||||
Notes year of maturity | 2019 | ||||||||
Judicial Reorganisation [Member] | Portugal Telecom International Finance BVs [Member] | ISIN Four [Member] | Default Payment Plan By Clause Four Point Three Point Six [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes notional amount | € 1,000,000,000 | ||||||||
Notes interest rate | 4.625% | ||||||||
Notes year of maturity | 2020 | ||||||||
Judicial Reorganisation [Member] | Portugal Telecom International Finance BVs [Member] | ISIN Five [Member] | Default Payment Plan By Clause Four Point Three Point Six [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes notional amount | € 500,000,000 | ||||||||
Notes interest rate | 4.50% | ||||||||
Notes year of maturity | 2025 | ||||||||
Judicial Reorganisation [Member] | Oi Brasil Holdings Coperatief UA [Member] | ISIN Six [Member] | Default Payment Plan By Clause Four Point Three Point Six [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes notional amount | € 600,000,000 | ||||||||
Notes interest rate | 5.625% | ||||||||
Notes year of maturity | 2021 | ||||||||
Judicial Reorganisation [Member] | Oi Brasil Holdings Coperatief UA [Member] | ISIN Seven [Member] | Default Payment Plan By Clause Four Point Three Point Six [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes notional amount | € 1,500,000,000 | ||||||||
Notes interest rate | 5.75% | ||||||||
Notes year of maturity | 2022 | ||||||||
Judicial Reorganisation [Member] | Oi SAs [Member] | ISIN Eight [Member] | Default Payment Plan By Clause Four Point Three Point Six [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes notional amount | € 750,000,000 | ||||||||
Notes interest rate | 5.125% | ||||||||
Notes year of maturity | 2017 | ||||||||
Judicial Reorganisation [Member] | Oi SAs [Member] | ISIN Nine [Member] | Default Payment Plan By Clause Four Point Three Point Six [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes notional amount | € 750,000,000 | ||||||||
Notes interest rate | 9.50% | ||||||||
Notes year of maturity | 2019 | ||||||||
Judicial Reorganisation [Member] | Oi SAs [Member] | ISIN Ten [Member] | Default Payment Plan By Clause Four Point Three Point Six [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes interest rate | 9.75% | ||||||||
Notes year of maturity | 2016 | ||||||||
Judicial Reorganisation [Member] | Oi SAs [Member] | ISIN Eleven [Member] | Default Payment Plan By Clause Four Point Three Point Six [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes interest rate | 5.50% | ||||||||
Judicial Reorganisation [Member] | Oi SAs BRL [Member] | ISIN Ten [Member] | Default Payment Plan By Clause Four Point Three Point Six [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes notional amount | € 1,100,000,000 | ||||||||
Judicial Reorganisation [Member] | Oi SAs Legacy Notes [Member] | ISIN Eleven [Member] | Default Payment Plan By Clause Four Point Three Point Six [Member] | |||||||||
Statement [Line Items] | |||||||||
Notes notional amount | € 1,000,000,000 | ||||||||
Notes year of maturity | 2020 | ||||||||
General Payment Method [Member] | |||||||||
Statement [Line Items] | |||||||||
Grace period | 20 years |
General Information - Companies
General Information - Companies related to the continuing operations (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Oi Holanda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Oi Holanda | |
Core business | Raising funds in the international market | |
Home country | The Netherlands | |
Portugal Telecom International Finance B.V [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Portugal Telecom Internacional Finance B.V | |
Core business | Raising funds in the international market | |
Home country | The Netherlands | |
CVTEL, BV [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | CVTEL, BV | |
Core business | Investment management | |
Home country | The Netherlands | |
Carrigans Finance S.à.r.l. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Carrigans Finance S.à.r.l. | |
Core business | Investment management | |
Home country | Luxembourg | |
Rio Alto Gestão de Créditos e Participações S.A. ("Rio Alto") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Rio Alto Gestão de Créditos e Participações S.A. (“Rio Alto”) | |
Core business | Receivables portfolio management and interests in other entities | |
Home country | Brazil | |
Oi Serviços Financeiros S.A. ("Oi Serviços Financeiros") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Oi Serviços Financeiros S.A. (“Oi Serviços Financeiros”) | |
Core business | Financial services | |
Home country | Brazil | |
Bryophyta SP Participações Ltda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Bryophyta SP Participações Ltda. | |
Core business | Property investments | |
Home country | Brazil | |
Telemar [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Telemar | |
Core business | Fixed telephony – Region I | |
Home country | Brazil | |
Oi Móvel [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Oi Móvel | |
Core business | Mobile telephony – Regions I, II, and III | |
Home country | Brazil | |
Paggo Empreendimentos S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Paggo Empreendimentos S.A. | |
Core business | Payment and credit systems | |
Home country | Brazil | |
Paggo Acquirer Gestão de Meios de Pagamentos Ltda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Paggo Acquirer Gestão de Meios de Pagamentos Ltda. | |
Core business | Payment and credit systems | |
Home country | Brazil | |
Paggo Administradora Ltda. ("Paggo Administradora") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Paggo Administradora Ltda. (“Paggo Administradora”) | |
Core business | Payment and credit systems | |
Home country | Brazil | |
Serede – Serviços de Rede S.A. ("Serede") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Serede – Serviços de Rede S.A. (“Serede”) | |
Core business | Network services | |
Home country | Brazil | |
Brasil Telecom Comunicação Multimídia Ltda. ("BrT Multimídia") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Brasil Telecom Comunicação Multimídia Ltda. (“BrT Multimídia”) | |
Core business | Data traffic | |
Home country | Brazil | |
Dommo Empreendimentos Imobiliários Ltda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Dommo Empreendimentos Imobiliários Ltda. | |
Core business | Purchase and sale of real estate | |
Home country | Brazil | |
Brasil Telecom Call Center S.A. ("BrT Call Center") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Brasil Telecom Call Center S.A. (“BrT Call Center”) | |
Core business | Call center and telemarketing services | |
Home country | Brazil | |
BrT Card Serviços Financeiros Ltda. ("BrT Card") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | BrT Card Serviços Financeiros Ltda. (“BrT Card”) | |
Core business | Financial services | |
Home country | Brazil | |
Pointer Networks S.A. ("Pointer") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Pointer Networks S.A. (“Pointer”) | |
Core business | Wi-Fi | |
Home country | Brazil | |
Pointer Peru S.A.C [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Pointer Peru S.A.C | |
Core business | Wi-Fi | |
Home country | Peru | |
VEX Venezuela C.A [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | VEX Venezuela C.A | |
Core business | Wi-Fi | |
Home country | Venezuela | |
VEX USA Inc [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | VEX USA Inc. | |
Core business | Wi-Fi | |
Home country | United States of America | |
VEX Ukraine LLC [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | VEX Ukraine LLC | |
Core business | Wi-Fi | |
Home country | Ukraine | |
PT Participações, SGPS, S.A. ("PT Participações") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | PT Participações, SGPS, S.A. (“PT Participações”) | |
Core business | Management of equity investments | |
Home country | Portugal | |
Oi Investimentos Internacionais S.A. ("Oi Investimentos") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Oi Investimentos Internacionais S.A. (“Oi Investimentos”) | |
Core business | Business consulting and management services, preparation of projects and economic studies, and investment management | |
Home country | Portugal | |
Africatel GmbH & Co.KG. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Africatel GmbH & Co.KG. | |
Core business | Investment management | |
Home country | Germany | |
Africatel GmbH [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Africatel GmbH | |
Core business | Investment management | |
Home country | Germany | |
Africatel Holdings, BV [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Africatel Holdings, BV | |
Core business | Investment management | |
Home country | The Netherlands | |
TPT—Telecomunicações Publicas de Timor, S.A. ("TPT") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | TPT—Telecomunicações Publicas de Timor, S.A. (“TPT”) | |
Core business | Provision of telecommunications, multimedia and IT services, and purchase and sale of related products in Timor | |
Home country | Portugal | |
Direct Subsidary [Member] | Oi Holanda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Direct Subsidary [Member] | Portugal Telecom International Finance B.V [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Direct Subsidary [Member] | CVTEL, BV [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Direct Subsidary [Member] | Carrigans Finance S.à.r.l. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Direct Subsidary [Member] | Rio Alto Gestão de Créditos e Participações S.A. ("Rio Alto") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Direct Subsidary [Member] | Oi Serviços Financeiros S.A. ("Oi Serviços Financeiros") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 99.87% | 99.87% |
Direct Subsidary [Member] | Bryophyta SP Participações Ltda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 99.80% | 99.80% |
Direct Subsidary [Member] | Telemar [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Direct Subsidary [Member] | Serede – Serviços de Rede S.A. ("Serede") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 17.51% | 17.51% |
Direct Subsidary [Member] | PT Participações, SGPS, S.A. ("PT Participações") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | Oi Serviços Financeiros S.A. ("Oi Serviços Financeiros") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 0.13% | 0.13% |
Indirect Subsidary [Member] | Bryophyta SP Participações Ltda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 0.20% | 0.20% |
Indirect Subsidary [Member] | Oi Móvel [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | Paggo Empreendimentos S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | Paggo Acquirer Gestão de Meios de Pagamentos Ltda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | Paggo Administradora Ltda. ("Paggo Administradora") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | Serede – Serviços de Rede S.A. ("Serede") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 82.49% | 82.49% |
Indirect Subsidary [Member] | Brasil Telecom Comunicação Multimídia Ltda. ("BrT Multimídia") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | Dommo Empreendimentos Imobiliários Ltda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | Brasil Telecom Call Center S.A. ("BrT Call Center") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | BrT Card Serviços Financeiros Ltda. ("BrT Card") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | Pointer Networks S.A. ("Pointer") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | Pointer Peru S.A.C [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | VEX Venezuela C.A [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | VEX USA Inc [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | VEX Ukraine LLC [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 40.00% | |
Indirect Subsidary [Member] | Oi Investimentos Internacionais S.A. ("Oi Investimentos") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | Africatel GmbH & Co.KG. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | Africatel GmbH [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 100.00% | 100.00% |
Indirect Subsidary [Member] | Africatel Holdings, BV [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 86.00% | 86.00% |
Indirect Subsidary [Member] | TPT—Telecomunicações Publicas de Timor, S.A. ("TPT") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 76.14% | 76.14% |
General Information - Compani_2
General Information - Companies classified as assets held for sale (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
PT Ventures, SGPS, S.A [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | PT Ventures, SGPS, S.A. | |
Core business | Management of equity interests in the context of international investments | |
Home country | Portugal | |
Directel - Listas Telefónicas Internacionais, Lda. ("Directel") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Directel—Listas Telefónicas Internacionais, Lda. (“Directel”) | |
Core business | Telephone directory publishing and operation of related databases, in international operations | |
Home country | Portugal | |
Directel Cabo Verde Communication Services Lda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Directel Cabo Verde – Serviços de Comunicação, Lda. | |
Core business | Telephone directory publishing and operation of related databases in Cape Verde | |
Home country | Cape Verde | |
Kenya Postel Directories Ltd [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Kenya Postel Directories, Ltd. | |
Core business | Production, publishing and distribution of telephone directories and other publications | |
Home country | Kenya | |
Elta Empresa de Listas Telephone de Angola Lda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Elta—Empresa de Listas Telefónicas de Angola, Lda. | |
Core business | Telephone directory publishing | |
Home country | Angola | |
Timor Telecom SA [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | Timor Telecom, S.A. | |
Core business | Telecommunications services concessionaire in Timor | |
Home country | Timor | |
CST Companhia Santomense de Telecommunications SARL [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | CST – Companhia Santomense de Telecomunicações, S.A. R.L. | |
Core business | Operation of fixed and mobile telecommunication public services in São Tomé and Principe | |
Home country | São Tomé | |
LTM Listas Telephone deMozambique Lda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Company | LTM—Listas Telefónicas de Moçambique, Lda. | |
Core business | Management, publishing, operation and sale of telecommunications subscriber and classified ads directories | |
Home country | Mozambique | |
Indirect Subsidary [Member] | PT Ventures, SGPS, S.A [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 86.00% | 86.00% |
Indirect Subsidary [Member] | Directel - Listas Telefónicas Internacionais, Lda. ("Directel") [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 86.00% | 86.00% |
Indirect Subsidary [Member] | Directel Cabo Verde Communication Services Lda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 51.60% | 51.60% |
Indirect Subsidary [Member] | Kenya Postel Directories Ltd [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 51.60% | 51.60% |
Indirect Subsidary [Member] | Elta Empresa de Listas Telephone de Angola Lda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 47.30% | 47.30% |
Indirect Subsidary [Member] | Timor Telecom SA [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 44.00% | 44.00% |
Indirect Subsidary [Member] | CST Companhia Santomense de Telecommunications SARL [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 43.86% | 43.86% |
Indirect Subsidary [Member] | LTM Listas Telephone deMozambique Lda [Member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership Interest in indirect and direct subsidiary | 43.00% | 43.00% |
General Information - Equity in
General Information - Equity interests in Joint arrangements (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Companhia AIX de Participações ("AIX") [Member] | ||
Disclosure of associates [line items] | ||
Company | Companhia AIX de Participações (“AIX”) | |
Core business | Data traffic | |
Home country | Brazil | |
Paggo Soluções e Meios de Pagamento S.A. ("Paggo Soluções") [Member] | ||
Disclosure of associates [line items] | ||
Company | Paggo Soluções e Meios de Pagamento S.A. (“Paggo Soluções”) | |
Core business | Financial company | |
Home country | Brazil | |
Gamecorp S.A. ("Gamecorp") [Member] | ||
Disclosure of associates [line items] | ||
Company | Gamecorp S.A. (“Gamecorp”) | |
Core business | Pay TV service, except programmers | |
Home country | Brazil | |
Hispamar Satélites S.A. ("Hispamar") [Member] | ||
Disclosure of associates [line items] | ||
Company | Hispamar Satélites S.A. (“Hispamar”) | |
Core business | Satellite operation | |
Home country | Brazil | |
Indirect Subsidary [Member] | Companhia AIX de Participações ("AIX") [Member] | ||
Disclosure of associates [line items] | ||
Proportion of ownership interest in associate | 50.00% | 50.00% |
Indirect Subsidary [Member] | Paggo Soluções e Meios de Pagamento S.A. ("Paggo Soluções") [Member] | ||
Disclosure of associates [line items] | ||
Proportion of ownership interest in associate | 50.00% | 50.00% |
Indirect Subsidary [Member] | Gamecorp S.A. ("Gamecorp") [Member] | ||
Disclosure of associates [line items] | ||
Proportion of ownership interest in associate | 29.90% | 29.90% |
Indirect Subsidary [Member] | Hispamar Satélites S.A. ("Hispamar") [Member] | ||
Disclosure of associates [line items] | ||
Proportion of ownership interest in associate | 19.04% | 19.04% |
Significant Accounting Polici_4
Significant Accounting Policies - Foreign Exchange Rates (Detail) | 12 Months Ended | |
Dec. 31, 2019Creditors | Dec. 31, 2018 | |
Foreign exchange rates [abstract] | ||
Closing foreign exchange rate | 4.0301 | |
Euro [Member] | ||
Foreign exchange rates [abstract] | ||
Closing foreign exchange rate | 4.5305 | 4.4390 |
Average foreign exchange rate | 4.4159 | 4.3094 |
US dollar [Member] | ||
Foreign exchange rates [abstract] | ||
Closing foreign exchange rate | 4.0307 | 3.8748 |
Average foreign exchange rate | 3.9461 | 3.6558 |
Cape Verdean escudo [Member] | ||
Foreign exchange rates [abstract] | ||
Closing foreign exchange rate | 0.0411 | 0.0403 |
Average foreign exchange rate | 0.0401 | 0.0391 |
Sao Tomean dobra [Member] | ||
Foreign exchange rates [abstract] | ||
Closing foreign exchange rate | 0.000192 | 0.000185 |
Average foreign exchange rate | 0.000188 | 0.000177 |
Kenyan shilling [Member] | ||
Foreign exchange rates [abstract] | ||
Closing foreign exchange rate | 0.0398 | 0.0381 |
Average foreign exchange rate | 0.0387 | 0.0361 |
Namibian dollar [Member] | ||
Foreign exchange rates [abstract] | ||
Closing foreign exchange rate | 0.2878 | 0.2698 |
Average foreign exchange rate | 0.2732 | 0.2764 |
Mozambican metical [Member] | ||
Foreign exchange rates [abstract] | ||
Closing foreign exchange rate | 0.0631 | 0.0627 |
Average foreign exchange rate | 0.0627 | 0.0601 |
Angolan kwanza [Member] | ||
Foreign exchange rates [abstract] | ||
Closing foreign exchange rate | 0.0084 | 0.0126 |
Average foreign exchange rate | 0.0111 | 0.0147 |
Significant Accounting Polici_5
Significant Accounting Policies - Retrospective Application Permitted by respective Standards (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement [Line Items] | |||
Net operating revenue | R$ 20136183 | R$ 22060014 | R$ 23789654 |
Cost of sales and/or services | (15,314,814) | (16,179,100) | (15,668,653) |
Gross profit | 4,821,369 | 5,880,914 | 8,121,001 |
Operating income (expenses) | |||
Share of profit (loss) of investees | (5,174) | (2,270) | |
Selling expenses | (3,547,684) | (3,853,002) | (4,102,556) |
General and administrative expenses | (2,782,300) | (2,738,718) | (3,136,808) |
Other operating income | 4,527,710 | 2,204,134 | 1,985,101 |
Other operating expenses | (5,991,291) | ||
Expenses, by nature | (7,798,739) | (11,149,172) | (10,482,029) |
Profit (loss) before financial income (expenses) and taxes | (2,977,370) | (5,268,258) | (2,361,028) |
Financial income | 2,662,463 | 30,950,461 | 7,136,459 |
Financial expenses | (8,772,181) | (4,341,595) | (10,332,971) |
Financial income (expenses) | (6,109,718) | 26,608,866 | (3,196,512) |
Profit (loss) before taxes | (9,087,088) | 21,340,608 | (5,557,540) |
Income tax and social contribution | |||
Current | (77,060) | 115,706 | (906,080) |
Deferred | 69,041 | 3,159,241 | (192,542) |
Profit (loss) for the year | (9,095,107) | 24,615,555 | R$ 6656162 |
Increase (decrease) due to application of IFRS 16 [Member] | |||
Statement [Line Items] | |||
Cost of sales and/or services | (589,861) | ||
Gross profit | (589,861) | ||
Operating income (expenses) | |||
Selling expenses | (7,516) | ||
General and administrative expenses | (5,810) | ||
Expenses, by nature | (13,326) | ||
Profit (loss) before financial income (expenses) and taxes | (603,187) | ||
Financial expenses | 948,973 | ||
Financial income (expenses) | 948,973 | ||
Profit (loss) before taxes | 345,786 | ||
Income tax and social contribution | |||
Profit (loss) for the year | 345,786 | ||
Previously stated [Member] | |||
Statement [Line Items] | |||
Net operating revenue | 20,136,183 | 22,060,014 | |
Cost of sales and/or services | (15,904,675) | (16,179,100) | |
Gross profit | 4,231,508 | 5,880,914 | |
Operating income (expenses) | |||
Share of profit (loss) of investees | (5,174) | (13,492) | |
Selling expenses | (3,555,200) | (3,853,002) | |
General and administrative expenses | (2,788,110) | (2,738,718) | |
Other operating income | 4,527,710 | 2,204,134 | |
Other operating expenses | (5,991,291) | (6,748,094) | |
Expenses, by nature | (7,812,065) | (11,149,172) | |
Profit (loss) before financial income (expenses) and taxes | (3,580,557) | (5,268,258) | |
Financial income | 2,662,463 | 30,950,461 | |
Financial expenses | (7,823,208) | (4,341,595) | |
Financial income (expenses) | (5,160,745) | 26,608,866 | |
Profit (loss) before taxes | (8,741,302) | 21,340,608 | |
Income tax and social contribution | |||
Current | (77,060) | 115,706 | |
Deferred | 69,041 | 3,159,241 | |
Profit (loss) for the year | R$ 8749321 | R$ 24615555 |
Significant Accounting Polici_6
Significant Accounting Policies - Other New Standards and Interpretations (Detail) | Jan. 01, 2020 | Jan. 01, 2019 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Date by which application of new IFRS is required | Jan. 1, 2019 | |
Annual improvements to IFRSs | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Discussion of impact that initial application of new IFRS is expected to have on financial statements | 2015-2017 Cycle | |
IFRS 16 | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Discussion of impact that initial application of new IFRS is expected to have on financial statements | Leases | |
IFRIC 23 | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Discussion of impact that initial application of new IFRS is expected to have on financial statements | Uncertainty over Income Tax Treatments | |
Amendment to IAS 19 | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Discussion of impact that initial application of new IFRS is expected to have on financial statements | Change, reduction, or settlement of defined benefit plans | |
Amendment to IFRS 9 | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Discussion of impact that initial application of new IFRS is expected to have on financial statements | Prepayment Features with Negative Compensation | |
Amendment to IAS 28 | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Discussion of impact that initial application of new IFRS is expected to have on financial statements | Long-term Interests in Associates and Joint Ventures | |
IAS 1 | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Discussion of impact that initial application of new IFRS is expected to have on financial statements | Presentation of Financial Statements | |
Date by which application of new IFRS is required | Jan. 1, 2020 | |
IAS 8 | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Discussion of impact that initial application of new IFRS is expected to have on financial statements | Accounting Policies, Changes in Accounting Estimates and Errors | |
Date by which application of new IFRS is required | Jan. 1, 2020 | |
IFRS 3 | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Discussion of impact that initial application of new IFRS is expected to have on financial statements | Business Combinations (Revised—definition of business) Conceptual framework revised for financial reports | |
Date by which application of new IFRS is required | Jan. 1, 2020 |
Significant Accounting Polici_7
Significant Accounting Policies - Additional information (Detail) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Judicial Reorganisation | ||
Statement [Line Items] | ||
Discount rate to measure impairment | 10.94% | 11.55% |
Property, plant and equipment [member] | ||
Statement [Line Items] | ||
Impairment of finite and long lived assets | R$ 2111 |
Financial Instruments And Ris_3
Financial Instruments And Risk Analysis - Financial Assets and Financial Liabilities Carried At Fair Value Excluding Liabilities Subjected to Compromise (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | ||
Cash equivalents | R$ 1506082 | R$ 4097838 |
Cash Investment | 183,850 | 201,975 |
Accounts receivable | 6,334,526 | 6,516,555 |
Liabilities | ||
Trade payables | 8,887,367 | 8,818,870 |
Derivative financial instruments | 1,152 | |
Borrowings and financing | 17,900,361 | 15,777,012 |
Senior notes | 18,226,749 | 16,449,906 |
Dividends and interest on capital | 5,731 | 6,168 |
Licenses and concessions payable | 58,582 | 85,619 |
Tax refinancing program | 417,503 | 553,206 |
Leases payable | R$ 8150026 | |
Cash and Due from Banks | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Fair value | |
Cash and Cash Equivalent | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Fair value | |
Cash and Cash Investment | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Fair value | |
Accounts receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Amortized cost | |
Dividends and interest on capital | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Amortized cost | |
Financial asset at fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Fair value | |
Held for sale financial asset | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Fair value | |
Dividend received | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Amortized cost | |
Trade payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Amortized cost | |
Derivative Financial Instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Fair value | |
Borrowings and financing | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Amortized cost | |
Public debentures | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Amortized cost | |
Senior notes | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Amortized cost | |
Dividends and interest on capital | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Amortized cost | |
Licenses and concessions payable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Amortized cost | |
Tax refinancing program | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Amortized cost | |
Leases payable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounting measurement | Amortized cost | |
Carrying amount | ||
Assets | ||
Cash equivalents | R$ 1504986 | 3,943,324 |
Cash Investment | 217,792 | 238,962 |
Liabilities | ||
Borrowings and financing | 8,705,458 | 7,633,140 |
Carrying amount | Financial assets at amortised cost | ||
Assets | ||
Accounts receivable | 6,334,526 | 6,516,555 |
Dividends and interest on capital | 426 | |
Dividends receivable | 2,435,014 | 2,566,935 |
Liabilities | ||
Trade payables | 8,887,367 | 8,818,870 |
Borrowings and financing | 8,354,777 | 7,140,960 |
Public debentures | 3,652,353 | 3,103,106 |
Senior notes | 6,219,619 | 6,205,840 |
Dividends and interest on capital | 5,731 | 6,168 |
Licenses and concessions payable | 58,582 | 85,619 |
Tax refinancing program | 417,503 | 553,206 |
Leases payable | 8,150,026 | |
Carrying amount | Fair value through profit or loss | ||
Assets | ||
Cash and banks | 575,863 | 287,491 |
Cash equivalents | 1,506,082 | 4,097,838 |
Cash Investment | 217,792 | 238,962 |
Financial asset at fair value | 40,689 | |
Held for sale financial asset | 1,474,699 | 1,843,778 |
Liabilities | ||
Derivative financial instruments | 1,152 | |
Fair value | Financial assets at amortised cost | ||
Assets | ||
Accounts receivable | 6,334,526 | 6,516,555 |
Dividends and interest on capital | 426 | |
Dividends receivable | 2,435,014 | 2,566,935 |
Liabilities | ||
Trade payables | 8,887,367 | 8,818,870 |
Borrowings and financing | 8,354,777 | 7,140,960 |
Public debentures | 3,652,353 | 3,103,106 |
Senior notes | 6,565,782 | 6,937,764 |
Dividends and interest on capital | 5,731 | 6,168 |
Licenses and concessions payable | 58,582 | 85,619 |
Tax refinancing program | 417,503 | 553,206 |
Leases payable | 8,150,026 | |
Fair value | Fair value through profit or loss | ||
Assets | ||
Cash and banks | 575,863 | 287,491 |
Cash equivalents | 1,506,082 | 4,097,838 |
Cash Investment | 217,792 | 238,962 |
Financial asset at fair value | 40,689 | |
Held for sale financial asset | 1,474,699 | R$ 1843778 |
Liabilities | ||
Derivative financial instruments | R$ 1152 |
Financial Instruments And Ris_4
Financial Instruments And Risk Analysis - Schedule of Fair Value Measurement hierarchy (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value measurement of assets [line items] | ||
Cash and banks | R$ 575863 | R$ 287491 |
Cash equivalents | 1,506,082 | 4,097,838 |
Cash Investment | 183,850 | 201,975 |
Derivative financial instruments | 1,152 | |
Level 1 | Fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Cash and banks | 575,863 | 287,491 |
Cash equivalents | 1,506,082 | 4,097,838 |
Cash Investment | 217,792 | 238,962 |
Level 2 | Fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Derivative financial instruments | 1,152 | |
Level 3 | Fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Held-for-sale financial asset | R$ 1474699 | R$ 1843778 |
Financial Instruments And Ris_5
Financial Instruments And Risk Analysis - Schedule of Financial Assets (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Cash and banks | R$ 575863 | R$ 287491 |
Cash equivalents | 1,506,082 | 4,097,838 |
Financial liabilities | ||
Borrowings and financing | 17,900,361 | 15,777,012 |
Derivative financial instruments | 1,152 | |
Carrying amount | ||
Financial assets | ||
Cash equivalents | 1,504,986 | 3,943,324 |
Financial liabilities | ||
Borrowings and financing | 8,705,458 | 7,633,140 |
Financial Assets Designated In Foreign Currency | Carrying amount | ||
Financial assets | ||
Cash and banks | 400,874 | 70,116 |
Cash equivalents | 1,096 | 154,514 |
Held-for-sale financial asset | 1,474,699 | 1,843,778 |
Dividends receivable | 2,435,014 | 2,566,935 |
Financial Assets Designated In Foreign Currency | Fair value | ||
Financial assets | ||
Cash and banks | 400,874 | 70,116 |
Cash equivalents | 1,096 | 154,514 |
Held-for-sale financial asset | 1,474,699 | 1,843,778 |
Dividends receivable | 2,435,014 | 2,566,935 |
Financial Liabilities Designated In Foreign Currency | Carrying amount | ||
Financial liabilities | ||
Borrowings and financing | 9,521,291 | 8,816,766 |
Derivative financial instruments | 1,152 | |
Financial Liabilities Designated In Foreign Currency | Fair value | ||
Financial liabilities | ||
Borrowings and financing | 9,521,291 | R$ 9548690 |
Derivative financial instruments | R$ 1152 |
Financial Instruments And Ris_6
Financial Instruments And Risk Analysis - Schedule of derivative transactions (Detail) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of financial assets [line items] | |
Total | R$ 72113 |
Forward contract [member] | |
Disclosure of financial assets [line items] | |
Forward currency transactions – financial income (expenses) | 55,025 |
Forward currency transactions – operating revenues (expenses) | R$ 17088 |
Financial Instruments And Ris_7
Financial Instruments And Risk Analysis - Schedule of movement in foreign exchange hedges (Detail) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Statement [Line Items] | |
Beginning balance | R$ 208359 |
Ending balance | (233,040) |
Foreign Exchange Hedges | |
Statement [Line Items] | |
Beginning balance | |
Gain on designated hedges | 11,901 |
Expensed hedge amortization | (13,053) |
Ending balance | R$ 1152 |
Financial Instruments And Ris_8
Financial Instruments And Risk Analysis - Impact of Potential Depreciation of Euro and US Dollar (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
US Dollar | Probable Scenario | |
Disclosure Of Finanacial Instruments Exchange Rate [Line Items] | |
Percentage of fluctuation in foreign exchange rate | 0.00% |
Fluctuation in foreign exchange rate amount | 4.0307 |
US Dollar | Possible Scenario | |
Disclosure Of Finanacial Instruments Exchange Rate [Line Items] | |
Percentage of fluctuation in foreign exchange rate | 25.00% |
Fluctuation in foreign exchange rate amount | 5.0384 |
US Dollar | Remote Scenario | |
Disclosure Of Finanacial Instruments Exchange Rate [Line Items] | |
Percentage of fluctuation in foreign exchange rate | 50.00% |
Fluctuation in foreign exchange rate amount | 6.0461 |
Euro | Probable Scenario | |
Disclosure Of Finanacial Instruments Exchange Rate [Line Items] | |
Percentage of fluctuation in foreign exchange rate | 0.00% |
Fluctuation in foreign exchange rate amount | 4.5305 |
Euro | Possible Scenario | |
Disclosure Of Finanacial Instruments Exchange Rate [Line Items] | |
Percentage of fluctuation in foreign exchange rate | 25.00% |
Fluctuation in foreign exchange rate amount | 5.6631 |
Euro | Remote Scenario | |
Disclosure Of Finanacial Instruments Exchange Rate [Line Items] | |
Percentage of fluctuation in foreign exchange rate | 50.00% |
Fluctuation in foreign exchange rate amount | 6.7958 |
Financial Instruments And Ris_9
Financial Instruments And Risk Analysis - Impact of Foreign Exchange Exposure (Detail) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Probable Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | R$ 9137227 |
Possible Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | 11,421,534 |
Increase (decrease) through foreign exchange, financial assets | 2,284,307 |
Remote Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | 13,705,841 |
Increase (decrease) through foreign exchange, financial assets | R$ 4568614 |
Dollar appreciation | US dollar debt | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Description of changes in exposure to risk | Dollar appreciation |
Dollar appreciation | US dollar debt | Probable Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | R$ 15594278 |
Dollar appreciation | US dollar debt | Possible Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | 19,492,848 |
Dollar appreciation | US dollar debt | Remote Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | R$ 23391418 |
Dollar depreciation | US dollar cash | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Description of changes in exposure to risk | Dollar depreciation |
Dollar depreciation | US dollar cash | Probable Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | R$ 283409 |
Dollar depreciation | US dollar cash | Possible Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | (354,261) |
Dollar depreciation | US dollar cash | Remote Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | R$ 425113 |
Euro appreciation | Euro debt | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Description of changes in exposure to risk | Euro appreciation |
Euro appreciation | Euro debt | Probable Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | R$ 2711459 |
Euro appreciation | Euro debt | Possible Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | 3,389,323 |
Euro appreciation | Euro debt | Remote Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | R$ 4067188 |
Euro depreciation | Euro cash | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Description of changes in exposure to risk | Euro depreciation |
Euro depreciation | Euro cash | Probable Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | R$ 112796 |
Euro depreciation | Euro cash | Possible Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | (140,995) |
Euro depreciation | Euro cash | Remote Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | R$ 169194 |
Dollar Or euro depreciation | Fair value adjustment | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Description of changes in exposure to risk | Dollar/euro depreciation |
Dollar Or euro depreciation | Fair value adjustment | Probable Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | R$ 8772305 |
Dollar Or euro depreciation | Fair value adjustment | Possible Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | (10,965,381) |
Dollar Or euro depreciation | Fair value adjustment | Remote Scenario | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Total assets liabilities indexed to foreign exchange fluctuation | R$ 13158458 |
Financial Instruments And Ri_10
Financial Instruments And Risk Analysis - Summary of assets and liabilities are presented in the balance sheet (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Cash equivalents | R$ 1506082 | R$ 4097838 |
Cash Investment | 183,850 | 201,975 |
Financial liabilities | ||
Borrowings and financing | 17,900,361 | 15,777,012 |
Carrying amount [member] | ||
Financial assets | ||
Cash equivalents | 1,504,986 | 3,943,324 |
Cash Investment | 217,792 | 238,962 |
Financial liabilities | ||
Borrowings and financing | 8,705,458 | 7,633,140 |
Market approach [member] | ||
Financial assets | ||
Cash equivalents | 1,504,986 | 3,943,324 |
Cash Investment | 217,792 | 238,962 |
Financial liabilities | ||
Borrowings and financing | R$ 8705458 | R$ 7633140 |
Financial Instruments And Ri_11
Financial Instruments And Risk Analysis - Schedule of Interest Rates Used for Interest Rate Contracts (Detail) | Dec. 31, 2019 |
CDI [Member] | Probable Scenario | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate | 4.59% |
CDI [Member] | Possible Scenario | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate | 5.74% |
CDI [Member] | Remote Scenario | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate | 6.89% |
TJLP [Member] | Probable Scenario | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate | 5.57% |
TJLP [Member] | Possible Scenario | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate | 6.96% |
TJLP [Member] | Remote Scenario | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate | 8.36% |
Financial Instruments And Ri_12
Financial Instruments And Risk Analysis - Impact of Interest Rate Exposure (Detail) - Interest rate risk [member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
CDI [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Description of changes in exposure to risk | CDI increase |
TJLP [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Description of changes in exposure to risk | TJLP increase |
Probable Scenario | |
Disclosure of financial instruments by type of interest rate [line items] | |
Assets and liabilities exposed to risk | R$ 7822620 |
Probable Scenario | CDI [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Assets and liabilities exposed to risk | 4,601,044 |
Probable Scenario | TJLP [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Assets and liabilities exposed to risk | 3,221,576 |
Possible Scenario | |
Disclosure of financial instruments by type of interest rate [line items] | |
Assets and liabilities exposed to risk | 9,562,633 |
Gain loss on change in interest rates | 1,740,013 |
Possible Scenario | CDI [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Assets and liabilities exposed to risk | 5,330,277 |
Possible Scenario | TJLP [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Assets and liabilities exposed to risk | 4,232,356 |
Remote Scenario | |
Disclosure of financial instruments by type of interest rate [line items] | |
Assets and liabilities exposed to risk | 11,555,899 |
Gain loss on change in interest rates | 3,733,279 |
Remote Scenario | CDI [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Assets and liabilities exposed to risk | 6,583,653 |
Remote Scenario | TJLP [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Assets and liabilities exposed to risk | R$ 4972246 |
Financial Instruments And Ri_13
Financial Instruments And Risk Analysis - Additional Information (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Percentage financial liabilities exposed to foreign exchange | 52.30% | 53.60% | ||||||||
Percentage of cash investments made with counter parties | 80.92% | |||||||||
Proceeds from capital increase | R$ 4000000 | |||||||||
Percentage of US dollar-denominated debt hedged by cash | 32.00% | |||||||||
Debt issue | R$ 2500000 | |||||||||
Capital Expenditure [Member] | Judicial Reorganisation [Member] | ||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Proceeds from capital increase | R$ 4000000 | |||||||||
Hedging Instrument [Member] | ||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Dollar-denominated debt service hedging percentage | 67.00% | |||||||||
Currency hedging percentage | 50.10% | |||||||||
Floating interest rate [member] | ||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Percentage of incurred debt subject to floating interest rates | 47.50% | 46.00% | ||||||||
TJLP [Member] | Interest rate risk [member] | ||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Borrowings interest rate | 5.57% | 6.98% | 5.95% | 6.26% | 7.03% | 6.56% | 6.60% | 6.75% | 7.00% | |
Possible Scenario | ||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Foreign exchange rate sensitivity | 50.00% | |||||||||
Remote Scenario | ||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Foreign exchange rate sensitivity | 25.00% | |||||||||
Scenario Forcast | TJLP [Member] | Interest rate risk [member] | ||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Foreign exchange rate sensitivity | 5.09% |
Financial Instruments And Ri_14
Financial Instruments And Risk Analysis - Derivative financial instrument (Details) - 12 months ended Dec. 31, 2019 R$ in Thousands, $ in Thousands | BRL (R$) | USD ($) |
Disclosure of financial assets [line items] | ||
Fair value Amounts (payable)/receivable | R$ 1152 | |
USDR Nondeliverable forwards NDF | ||
Disclosure of financial assets [line items] | ||
Notional | $ | $ 17,000 | |
Fair value Amounts (payable)/receivable | R$ 1152 | |
USDR Nondeliverable forwards NDF | Top of range | ||
Disclosure of financial assets [line items] | ||
Maturity | 1 year |
Financial Instruments And Ri_15
Financial Instruments And Risk Analysis - Summary of indicators used to measure capital structure management (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of financial assets [line items] | |
Goss debt-to-EBITDA | between 2x and 4.0x |
Interest Coverage Ratio | higher than 1.75 |
Schedule of Net Operating Reven
Schedule of Net Operating Revenue (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue [abstract] | |||
Gross operating revenue | R$ 27218787 | R$ 30426548 | R$ 36338432 |
Deductions from gross revenue | (7,082,604) | (8,366,534) | (12,548,778) |
Taxes | (5,641,876) | (6,725,356) | (7,707,961) |
Other deductions | (1,440,728) | (1,641,178) | (4,840,817) |
Net operating revenue | R$ 20136183 | R$ 22060014 | R$ 23789654 |
Summary of Revenue and Expenses
Summary of Revenue and Expenses by Nature (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating expenses by nature | |||
Third-party services | R$ 6030542 | R$ 5924556 | R$ 6221058 |
Depreciation and amortization | (6,873,945) | (5,811,123) | (5,109,292) |
Rentals and Insurance | (2,575,862) | (4,200,212) | (4,162,659) |
Personnel | (2,528,823) | (2,594,464) | (2,791,331) |
Network maintenance service | (1,014,432) | (1,104,015) | (1,251,511) |
Interconnection | (487,413) | (658,068) | (778,083) |
Provision for contingencies | (216,438) | (202,268) | (469,440) |
Expected credit losses | (489,396) | (697,324) | (691,807) |
Advertising and marketing | (497,278) | (382,091) | (413,580) |
Handset and other costs | (170,860) | (196,347) | (223,335) |
Impairment gain (loss) | (2,111,022) | (291,758) | 4,747,141 |
Taxes and other expenses | (110,568) | (249,688) | (542,832) |
Other operating income (expenses), net | (6,974) | (5,016,358) | (8,242,895) |
Expenses, by nature | (23,113,553) | (27,328,272) | (26,150,682) |
Operating expenses by function | |||
Cost of sales and/or services | (15,314,814) | (16,179,100) | (15,668,653) |
Selling expenses | (3,547,684) | (3,853,002) | (4,102,556) |
General and administrative expenses | (2,782,300) | (2,738,718) | (3,136,808) |
Other operating income | 4,527,710 | 2,204,134 | 1,985,101 |
Other operating expenses | (5,996,465) | (6,761,586) | (5,227,766) |
Total operating expenses by function | R$ 23113553 | R$ 27328272 | R$ 26150682 |
Summary of Revenue and Expens_2
Summary of Revenue and Expenses by Nature (Parenthetical) (Detail) - BRL (R$) R$ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement [Line Items] | |||||
Onerous obligation | R$ 1230820 | R$ 4883620 | |||
Additional provision | 216,438 | 202,268 | R$ 469440 | ||
Derecognition of tax credits | [1] | (2,474,232) | (2,757,044) | (2,717,564) | |
Consolidated Basis [Member] | |||||
Statement [Line Items] | |||||
Derecognition of tax credits | R$ 167395 | ||||
Taxes On Revenue Pis And Cofins [Member] | Consolidated Basis [Member] | |||||
Statement [Line Items] | |||||
Tax Credit | R$ 1517919 | ||||
Judicial Reorganisation [Member] | |||||
Statement [Line Items] | |||||
Provision contingency reversal | R$ 109242 | ||||
Judicial Reorganisation [Member] | Anatel [Member] | |||||
Statement [Line Items] | |||||
Additional provision | R$ 6482485 | ||||
[1] | Refers to the reversal (recognition) of the allowance for the realizable value (impairment) of deferred tax assets (Note 10). |
Financial Income (Expenses) (De
Financial Income (Expenses) (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financial income | ||||
Fair value adjustment | [1] | R$ 48756 | R$ 13290262 | R$ 4873000 |
Monetary correction and foreign exchange differences on the fair value adjustment | 334,269 | 1,398,594 | ||
Gain on the restructuring of third-party borrowings | [2] | 11,054,800 | ||
Interest on and monetary correction to other assets | [3] | 1,922,176 | 808,764 | 1,049,923 |
Income from cash investments | 238,828 | 316,880 | 702,171 | |
Exchange differences on translating foreign cash investments | (52,013) | 1,329 | 11,105 | |
Reversal of interest and other income | [4] | 170,447 | 4,079,832 | 500,260 |
Total | 2,662,463 | 30,950,461 | 7,136,459 | |
a) Borrowing and financing costs | ||||
Recognition of fair value adjustment | (910,491) | (760,197) | ||
Monetary correction to and exchange losses on third-party borrowings | [5] | (640,068) | (2,493,618) | (2,920,455) |
Interest on borrowings payable to third parties | [6] | (1,295,545) | 1,299,094 | (3,122,166) |
Interest on debentures | [6] | (322,218) | 493,833 | (472,173) |
Subtotal: | (3,168,322) | (1,460,888) | (6,514,794) | |
b) Other charges | ||||
Interest on leases | (948,973) | |||
Gain (loss) on cash investments classified as held- for- sale | (237,593) | 292,700 | (267,008) | |
Tax on transactions and bank fees | (456,579) | (870,488) | (512,003) | |
Interest on, monetary correction to, and foreign exchange differences on other liabilities | [7] | (1,854,304) | (1,251,215) | (1,553,746) |
Monetary correction to (provisions)/reversals | [8] | (1,620,378) | (226,870) | (674,668) |
Interest on taxes in installments—tax financing program | (16,159) | (28,079) | (27,294) | |
Derivatives | 55,025 | |||
Other expenses | (524,898) | (796,755) | (783,458) | |
Subtotal: | [9] | (5,603,859) | (2,880,707) | (3,818,177) |
Total | (8,772,181) | (4,341,595) | (10,332,971) | |
Financial income (expenses) | R$ 6109718 | R$ 26608866 | R$ 3196512 | |
[1] | In 2018, refers to the recognition of the fair value of third-party borrowings and financing arising from the impacts of the ratification of the JRP. In 2017, refers to the adjustment to present value arising from the revision of the calculations of the provision for contingencies related to administrative proceedings and lawsuits involving ANATEL, taking into account the best estimate of future cash outflows based on the payment methods prescribed in the JRP. | |||
[2] | In 2018, refers basically to the positive impact of the novation of the debt represented by the qualified Senior Notes, calculated pursuant to the JRP. | |||
[3] | In 2019, refers to the accounting recognition amounting R$2,100 million related to the monetary correction to PIS and COFINS credits arising from the deduction of ICMS from the tax base of PIS and COFINS, as well as the recovery of unduly paid amounts as PIS and COFINS, under a final and unappealable court decision reached in March and September 2019, as described in Note 11. | |||
[4] | In 2018, represented mainly by the reversal of the interest expenses on debt included in the JRP, adjusted in the period prior to the ratification of the Plan amounting to R$3,013 million and adjustment of trade payables and default payment to fair value amounting to R$877 million. | |||
[5] | In 2018, includes R$555 million related to the modification gain associated to the novation of debts arising on the Senior Notes. | |||
[6] | In 2018, represented mainly by the reversal of interest on the debt included in the JRP amounting to R$3,115 million and interest expenses on novated debt and debentures totaling R$167 million. | |||
[7] | This line item includes interest related to the present value adjustment associated with the liabilities of onerous contracts and trade payables subject to the Judicial Reorganization. | |||
[8] | In 2019, includes the impact arising on the review of the provision estimate calculation methodology of the labor and civil contingencies, supported by the loss risk assessment made by the Company’s legal advisors. The Company recognized new provision for labor and civil contingencies, during 2019, related to the review of the provision estimate calculation methodology, and part of the amount was recognized in financial expenses due to monetary corrections in compliance with the Law applicable for Labor and Civil proceedings. | |||
[9] | Represented mainly by financial banking fees and commissions. |
Financial Income (Expenses) (Pa
Financial Income (Expenses) (Parenthetical) (Detail) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement [Line Items] | ||
Capital gain on novation of debt | R$ 555 | |
Taxes On Revenue Pis And Cofins [Member] | Separate [member] | ||
Statement [Line Items] | ||
inflation adjustment | R$ 2100 | |
Judicial Reorganisation [Member] | ||
Statement [Line Items] | ||
Other income | 3,013 | |
Adjustments of trade payables to present value | 877 | |
Reversal of interest expenses | 3,115 | |
Interest expenses on novated debt | R$ 167 |
Income Taxes And Social Contrib
Income Taxes And Social Contribution - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | |
Income tax rate | 25.00% |
Social Contribution Rate | 9.00% |
Aggregate Nominal Tax Rate | 34.00% |
Summary of Income Tax Expense A
Summary of Income Tax Expense Attributable to Income From Continuing Operation (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax and social contribution | |||
Current taxes | R$ 77060 | R$ 115706 | R$ 906080 |
Deferred taxes (Note 10) | 69,041 | 3,159,241 | (192,542) |
Total | R$ 8019 | R$ 3274947 | R$ 1098622 |
Summary of Tax Rate Reconciliat
Summary of Tax Rate Reconciliation From Continuing Operation (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement [Line Items] | ||||
Profit (loss) before taxes | R$ 9087088 | R$ 21340608 | R$ 5557540 | |
Income tax and social contribution | ||||
Income tax and social contribution on taxed income | 3,089,610 | (7,255,807) | 1,889,564 | |
Equity in investees | (1,759) | (4,587) | (147) | |
Tax incentives (basically, operating profit) | [1] | 1,263 | 3,068 | 14,008 |
Permanent deductions (add-backs) | [2] | (312,512) | 13,285,260 | 148,424 |
Reversal of (Allowance for) impairment losses on deferred tax assets | [3] | (2,474,232) | (2,757,044) | (2,717,564) |
Tax effects of deferred tax assets of foreign subsidiaries | [4] | (310,389) | 4,057 | (432,907) |
Income tax and social contribution effect on profit or loss | R$ 8019 | R$ 3274947 | R$ 1098622 | |
[1] | Refers basically to the exploration profit recognized in the profit or loss of subsidiary Oi Móvel pursuant to Law 11638/2007. | |||
[2] | In 2019, the tax effects from permanent add-backs are represented mainly by the recognition of the fair value adjustment to the restructured liabilities included in the JRP. In 2018 the main tax effects from permanent deductions arising from the recognition of the restructuring of the liabilities included in the JRP. | |||
[3] | Refers to the reversal (recognition) of the allowance for the realizable value (impairment) of deferred tax assets (Note 10). | |||
[4] | Refers to the effects of unrecognized deferred tax assets held by foreign subsidiaries that do not have a history of profitability and/or an expectation to generate taxable income. |
Cash, Cash Equivalents And Sh_3
Cash, Cash Equivalents And Short-Term Investments - Schedule of Cash and Cash Equivalents (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement [Line Items] | |||||
Cash and banks | R$ 575863 | R$ 287491 | |||
Cash equivalents | 1,506,082 | 4,097,838 | |||
Total | 2,081,945 | 4,385,329 | R$ 6862684 | R$ 7563252 | |
Other | 3,606 | 3,888 | |||
Cash equivalents | 1,506,082 | 4,097,838 | |||
Repurchase agreements | |||||
Statement [Line Items] | |||||
Short-term investments, classified as cash equivalents | [1] | 1,192,708 | 2,742,731 | ||
Private securities | |||||
Statement [Line Items] | |||||
Short-term investments, classified as cash equivalents | [2] | 134,818 | 895,073 | ||
Bank certificates of deposit (CDBs) | |||||
Statement [Line Items] | |||||
Short-term deposits, classified as cash equivalents | 173,854 | 301,632 | |||
Time deposits | |||||
Statement [Line Items] | |||||
Short-term deposits, classified as cash equivalents | R$ 1096 | R$ 154514 | |||
[1] | Represented mainly by exclusive investment funds composed by Government Securities with yield pegged to the SELIC rate. The portfolio is preferably allocated to highly liquid spot market instruments for all investments. | ||||
[2] | Represented mainly by financial treasury bills from private banks with remuneration linked to CDI rate and immediate liquidity. |
Cash, Cash Equivalents And Sh_4
Cash, Cash Equivalents And Short-Term Investments - Schedule of Short-term and long-term investments (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement [Line Items] | |||
Investments | R$ 217792 | R$ 238962 | |
Current | 183,850 | 201,975 | |
Non-current | 33,942 | 36,987 | |
Private securities | |||
Statement [Line Items] | |||
Investments | [1],[2] | 196,203 | 213,653 |
Government securities | |||
Statement [Line Items] | |||
Investments | R$ 21589 | R$ 25309 | |
[1] | Represented mainly by the investments with yield pegged to the SELIC and CDB rates. | ||
[2] | Represents the indirect interest held by PT Ventures in the dividends receivable and the fair value of the financial investment in Unitel, both classified as held for sale. The assets from the investment held in PT Ventures are measure substantially at the fair value of the investment for sale, which occurred on January 23, 2020, as referred to above, in Note 33; |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement [Line Items] | |||
Trade receivables Current | R$ 7108297 | R$ 7303700 | |
Expected Losses On Trade Receivables | (773,771) | (787,145) | R$ 547485 |
Total | 6,334,526 | 6,516,555 | |
Billed services | |||
Statement [Line Items] | |||
Trade receivables Current | 5,910,643 | 5,699,817 | |
Unbilled services | |||
Statement [Line Items] | |||
Trade receivables Current | 842,726 | 984,062 | |
Mobile handsets and accessories sold | |||
Statement [Line Items] | |||
Trade receivables Current | R$ 354928 | R$ 619821 |
Schedule of aging list of trade
Schedule of aging list of trade receivables (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement [Line Items] | ||
Trade receivable | R$ 7108297 | R$ 7303700 |
Current | ||
Statement [Line Items] | ||
Trade receivable | 5,118,874 | 5,167,408 |
Past-due up to 60 days | ||
Statement [Line Items] | ||
Trade receivable | 527,459 | 672,673 |
Past-due from 61 to 90 days | ||
Statement [Line Items] | ||
Trade receivable | 104,694 | 131,798 |
Past-due from 91 to 120 days | ||
Statement [Line Items] | ||
Trade receivable | 99,299 | 132,562 |
Past-due from 121 to 150 days | ||
Statement [Line Items] | ||
Trade receivable | 83,083 | 104,628 |
Over 150 days past-due | ||
Statement [Line Items] | ||
Trade receivable | R$ 1174888 | R$ 1094631 |
Schedule of movements in the al
Schedule of movements in the allowance for doubtful accounts (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Trade and other current receivables [abstract] | |||
Beginning balance | R$ 787145 | R$ 547485 | |
Expected losses on trade receivables | (488,269) | (843,681) | |
Trade receivables written off as uncollectible | 501,643 | 976,998 | |
Adoption of IFRS 9 | [1] | (372,977) | |
Ending balance | R$ 773771 | R$ 787145 | |
[1] | Impact of the first-time recognition, at January 1, 2018, of IFRS 9 as a contra entry to Accumulated losses in Shareholders’ equity. |
Recoverable Income Tax And De_3
Recoverable Income Tax And Deferred Taxes Assets - Schedule of recoverable income tax and deferred taxes assets (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Current recoverable taxes [Abstract] | |||
Current recoverable taxes | R$ 542726 | R$ 621246 | |
Deferred recoverable taxes | 99,175 | 23,050 | |
Current taxes payable [Abstract] | |||
Current taxes payable | 66,654 | 27,026 | |
Income tax payable [Member] | |||
Current taxes payable [Abstract] | |||
Current taxes payable | 54,358 | 21,628 | |
Social contribution payable [Member] | |||
Current taxes payable [Abstract] | |||
Current taxes payable | 12,296 | 5,398 | |
Income Tax And Social Contribution On Temporary Differences [Member] | |||
Current recoverable taxes [Abstract] | |||
Deferred recoverable taxes | 99,175 | 23,050 | |
Recoverable income tax (IRPJ) [Member] | |||
Current recoverable taxes [Abstract] | |||
Current recoverable taxes | [1] | 209,513 | 287,472 |
Recoverable social contribution (CSLL) [Member] | |||
Current recoverable taxes [Abstract] | |||
Current recoverable taxes | [1] | 81,215 | 91,996 |
IRRF/CSLL - withholding income taxes [Member] | |||
Current recoverable taxes [Abstract] | |||
Current recoverable taxes | [2] | R$ 251998 | R$ 241778 |
[1] | Refer mainly to prepaid income tax and social contribution that will be offset against federal taxes payable in the future. | ||
[2] | Refer to withholding income tax (IRRF) credits on cash investments, derivatives, intragroup loans, government entities, and other amounts that are used as deductions from income tax payable for the years, and social contribution withheld at source on services provided to government agencies. |
Recoverable Income Tax And De_4
Recoverable Income Tax And Deferred Taxes Assets - Schedule of Movements in deferred income tax and social contribution (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement [Line Items] | ||||
Recognised in deferred tax benefit (Expenses) | R$ 69041 | R$ 3159241 | R$ 192542 | |
Temporary differences [member] | ||||
Statement [Line Items] | ||||
Beginning balance | 6,631,747 | |||
Recognised in deferred tax benefit (Expenses) | 1,281,558 | |||
Recognised directly in equity | 5,888 | |||
Ending balance | 7,919,193 | 6,631,747 | ||
Deferred tax assets [Member] | ||||
Statement [Line Items] | ||||
Beginning balance | 20,335,276 | |||
Recognised in deferred tax benefit (Expenses) | 2,314,983 | |||
Add-backs/off sets | 38 | |||
Recognised directly in equity | 30,983 | |||
Ending balance | 22,681,280 | 20,335,276 | ||
Deferred tax assets [Member] | Provisions [Member] | ||||
Statement [Line Items] | ||||
Beginning balance | 1,244,246 | |||
Recognised in deferred tax benefit (Expenses) | (68,999) | |||
Ending balance | 1,175,247 | 1,244,246 | ||
Deferred tax assets [Member] | Provisions for suspended taxes [Member] | ||||
Statement [Line Items] | ||||
Beginning balance | 29,555 | |||
Recognised in deferred tax benefit (Expenses) | 134,999 | |||
Ending balance | 164,554 | 29,555 | ||
Deferred tax assets [Member] | Provisions for pension funds And impacts of IAS 19 R [Member] | ||||
Statement [Line Items] | ||||
Beginning balance | (14,095) | |||
Recognised in deferred tax benefit (Expenses) | (3,341) | |||
Recognised directly in equity | 3,331 | |||
Ending balance | (14,105) | (14,095) | ||
Deferred tax assets [Member] | Estimated losses on doubtful accounts [Member] | ||||
Statement [Line Items] | ||||
Beginning balance | 478,827 | |||
Recognised in deferred tax benefit (Expenses) | (46,407) | |||
Ending balance | 432,420 | 478,827 | ||
Deferred tax assets [Member] | Profit sharing [Member] | ||||
Statement [Line Items] | ||||
Beginning balance | 94,504 | |||
Recognised in deferred tax benefit (Expenses) | (13,185) | |||
Ending balance | 81,319 | 94,504 | ||
Deferred tax assets [Member] | Foreign exchange differences [Member] | ||||
Statement [Line Items] | ||||
Beginning balance | 1,403,193 | |||
Recognised in deferred tax benefit (Expenses) | 333,740 | |||
Ending balance | 1,736,933 | 1,403,193 | ||
Deferred tax assets [Member] | Merged goodwill [Member] | ||||
Statement [Line Items] | ||||
Beginning balance | [1] | 1,690,508 | ||
Recognised in deferred tax benefit (Expenses) | [1] | (278,759) | ||
Ending balance | [1] | 1,411,749 | 1,690,508 | |
Deferred tax assets [Member] | Other temporary add backs and deductions [Member] | ||||
Statement [Line Items] | ||||
Beginning balance | 177,085 | |||
Recognised in deferred tax benefit (Expenses) | 773,610 | |||
Recognised directly in equity | 2,557 | |||
Ending balance | 953,252 | 177,085 | ||
Deferred tax assets [Member] | Onerous obligation [Member] | ||||
Statement [Line Items] | ||||
Beginning balance | 1,527,924 | |||
Recognised in deferred tax benefit (Expenses) | 449,900 | |||
Ending balance | 1,977,824 | 1,527,924 | ||
Deferred tax assets [Member] | Unused tax losses [member] | ||||
Statement [Line Items] | ||||
Beginning balance | 13,703,529 | |||
Recognised in deferred tax benefit (Expenses) | 1,033,425 | |||
Add-backs/off sets | 38 | |||
Recognised directly in equity | 25,095 | |||
Ending balance | 14,762,087 | 13,703,529 | ||
Deferred tax liabilities [Member] | ||||
Statement [Line Items] | ||||
Beginning balance | 23,050 | |||
Recognised in deferred tax benefit (Expenses) | [2] | 76,087 | ||
Add-backs/off sets | 38 | |||
Ending balance | 99,175 | 23,050 | ||
Deferred tax liabilities [Member] | Income tax and social contribution loss carryforwards deferred tax liability [Member] | ||||
Statement [Line Items] | ||||
Beginning balance | [3] | (2,532,682) | ||
Recognised in deferred tax benefit (Expenses) | [3] | 235,338 | ||
Ending balance | [3] | (2,297,344) | (2,532,682) | |
Deferred tax liabilities [Member] | Provisions at recoverable amount [Member] | ||||
Statement [Line Items] | ||||
Beginning balance | [4] | (17,779,544) | ||
Recognised in deferred tax benefit (Expenses) | [4] | (2,474,234) | ||
Recognised directly in equity | [4] | (30,983) | ||
Ending balance | [4] | R$ 20284761 | R$ 17779544 | |
[1] | Refer to: (i) deferred income tax and social contribution assets calculated as tax benefit originating from the goodwill paid on acquisition of the Company and recognized by the merged companies in the course of 2009. The realization of the tax credit arises from the amortization of the goodwill balance based on the STFC license and in the appreciation of property, plant and equipment, the utilization of which is estimated to occur through 2025, and (ii) deferred income tax and social contribution assets originating from the goodwill paid on the acquisition of interests in the Company in 2008-2011, recognized by the companies merged with and into Telemar Participações S.A. (“TmarPart”) and by TmarPart merged with and into the Company on September 1, 2015, which was based on the Company’s expected future profitability and the amortization of which is estimated to occur through 2025. | |||
[2] | The expenses on deferred taxes disclosed in Note 6 include R$7,046 in deferred taxes of foreign operations classified as held-for-sale assets. | |||
[3] | Refers basically to the tax effects on the appreciation of property, plant and equipment and intangible assets, merged from TmarPart. | |||
[4] | The Company, based on the schedule of expected generation of future taxable income, supported by a technical feasibility study and the comparison with the estimate of the annual realization amount of asset and liability temporary differences, revised its deferred taxes recovery estimate and identified and recognized an allowance at recoverable amount. The stock of tax loss carryforwards in Brazil and foreign subsidiaries is approximately R$32,805,092 and R$14,433,424, and corresponds to R$11,153,731 and R$3,608,356 in deferred tax assets, respectively, which can be carried forward indefinitely and offset against taxes payable in the future. |
Recoverable Income Tax And De_5
Recoverable Income Tax And Deferred Taxes Assets - Schedule of Movements in deferred income tax and social contribution (Parenthetical) (Detail) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Statement [Line Items] | |
Deferred taxes related to foreign operations held for sale assets | R$ 7046 |
Domestic Tax Authority | |
Statement [Line Items] | |
Tax loss carry forwards | 32,805,092 |
Deferred tax assets, tax loss carry forwards | 11,153,731 |
Foreign Tax Authority | |
Statement [Line Items] | |
Tax loss carry forwards | 14,433,424 |
Deferred tax assets, tax loss carry forwards | R$ 3608356 |
Other Taxes (Detail)
Other Taxes (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Taxes Other Than Income Tax Assets And Liabilities [Abstract] | |||
Asset, Recoverable State VAT (ICMS) | [1] | R$ 1301684 | R$ 1240353 |
Asset, Taxes on revenue (PIS and COFINS) | [2] | 2,736,009 | 215,860 |
Asset, Other | 47,257 | 63,015 | |
Asset, Total | 4,084,950 | 1,519,228 | |
Asset, Current | 1,089,391 | 803,252 | |
Asset, Non-current | 2,995,559 | 715,976 | |
Liability, State VAT (ICMS) | 526,618 | 556,693 | |
Liability, ICMS Agreement | 220,467 | 34,113 | |
Liability, Taxes on revenue (PIS and COFINS) | [3] | 574,063 | 235,319 |
Liability, FUST/FUNTTEL/broadcasting fees | [4] | 669,193 | 655,022 |
Liability, Other | [5] | 120,460 | 181,437 |
Liability, Total | 2,110,801 | 1,662,584 | |
Liability, Current | 886,763 | 1,033,868 | |
Liability, Non-current | R$ 1224038 | R$ 628716 | |
[1] | Recoverable ICMS arises mostly from prepaid taxes and credits claimed on purchases of property, plant and equipment, which can be offset against ICMS payable within 48 months, pursuant to Supplementary Law 102/2000. | ||
[2] | The Company and its subsidiaries filed legal proceedings to claim the right to deduct ICMS from the PIS and COFINS tax bases and the recovery of past unduly paid amounts, within the relevant statute of limitations. In 2019, the 1st and 2nd Region Federal Courts (Brasília and Rio de Janeiro) issued final and unappealable decisions favorable to the Company on two of the three main lawsuits of the Company relating to the discussion about the non-levy of PIS and COFINS on ICMS. | ||
[3] | Refers basically to the Social Integration Program Tax on Revenue (PIS) and Social Security Funding Tax on Revenue (COFINS) on revenue, financial income, and other income. | ||
[4] | The Company and its subsidiaries Telemar and Oi Móvel filed lawsuits to discuss the correct calculation of the contribution to the FUST and in the course of the lawsuits made escrow deposits to suspend its collection. These discussions are also being judged by higher courts and a possible transformation of the deposited amounts into definitive payments should not occur within two (2) years. | ||
[5] | Consisting primarily of monetary corrections to suspended taxes and withholding tax on intragroup loans and interest on capital. |
Other Taxes - Additional Inform
Other Taxes - Additional Information (Detail) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Taxes Other Than Income Tax Assets And Liabilities [Abstract] | |
Deferred tax credits on lawsuits | R$ 3 |
Judicial Deposits Transactions
Judicial Deposits Transactions (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement [Line Items] | |||
Deposit assets, gross | R$ 8212959 | R$ 9384630 | |
Estimated loss | [1] | (47,112) | (649,910) |
Deposit Assets | 8,165,847 | 8,734,720 | |
Current | 1,514,464 | 1,715,934 | |
Non-current | 6,651,383 | 7,018,786 | |
Civil [Member] | |||
Statement [Line Items] | |||
Deposit assets, gross | 5,027,848 | 5,849,978 | |
Tax [Member] | |||
Statement [Line Items] | |||
Deposit assets, gross | 2,301,986 | 2,337,508 | |
Labour [Member] | |||
Statement [Line Items] | |||
Deposit assets, gross | R$ 883125 | R$ 1197144 | |
[1] | This amount represents the estimated loss of balances of judicial deposits, which are in the process of reconciliation with the obtained statements. |
Prepaid Expenses - Schedule of
Prepaid Expenses - Schedule of prepaid expenses (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Prepayments and accrued income [abstract] | ||
Costs incurred on the performance of a contract (IFRS 15) | R$ 1016337 | R$ 912538 |
Advertising and publicity | 55,695 | 135,049 |
Contractual prepaid expenses | 47,771 | |
Insurance | 25,807 | 48,865 |
Bank guarantee | 31,297 | 40,690 |
Other | 124,944 | 81,590 |
Total | 1,254,080 | 1,266,503 |
Current | 670,344 | 743,953 |
Non-current | R$ 583736 | R$ 522550 |
Other Assets - Schedule of othe
Other Assets - Schedule of other assets (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Advances and amounts recoverable from suppliers | R$ 767900 | R$ 621376 |
Amounts receivable from the sale of property, plant and equipment items | 302,947 | 305,155 |
Amounts receivable | 53,406 | 202,834 |
Advances to employees | 79,830 | 69,635 |
Other | 85,739 | 131,532 |
Total | 1,289,822 | 1,330,532 |
Current | 852,155 | 1,079,670 |
Non-current | R$ 437667 | R$ 250862 |
Investments - Schedule of inves
Investments - Schedule of investments (Detail)) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Investments accounted for using equity method [abstract] | |||
Joint arrangements | R$ 28632 | R$ 31488 | |
Investments in associates | 48,578 | 44,124 | |
Tax incentives, net of allowances for losses | 31,876 | 31,876 | |
Other investments | 24,679 | 10,352 | |
Total | R$ 133765 | R$ 117840 | R$ 136510 |
Investments - Schedule of movem
Investments - Schedule of movements in investment balances (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments accounted for using equity method [abstract] | |||
Beginning balance | R$ 117840 | R$ 136510 | |
Share of results of investees | (5,174) | (13,492) | R$ 433 |
Share of subsidiaries' and associates' equity in investees | (5,174) | (2,270) | |
Subsidiaries' and associates' share of other comprehensive income | 2,469 | ||
Reclassification of equity in investees to held-for-sale assets | 3,514 | 5,491 | |
Other | 15,116 | (8,399) | |
Ending balance | R$ 133765 | R$ 117840 | R$ 136510 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement [Line Items] | |||
Property,plant and equipment assets | R$ 28425563 | ||
Property,plant and equipment assets, ending balance | 38,910,834 | R$ 28425563 | |
Works in progress | |||
Statement [Line Items] | |||
Property,plant and equipment assets | 3,351,613 | ||
Property,plant and equipment assets, ending balance | 2,158,327 | 3,351,613 | |
Automatic switching equipment | |||
Statement [Line Items] | |||
Property,plant and equipment assets | R$ 1137390 | ||
Annual depreciation rate (average) | 10.00% | ||
Property,plant and equipment assets, ending balance | R$ 1001602 | 1,137,390 | |
Transmission and other equipment | |||
Statement [Line Items] | |||
Property,plant and equipment assets | [1] | R$ 14203958 | |
Annual depreciation rate (average) | [1] | 12.00% | |
Property,plant and equipment assets, ending balance | [1] | R$ 16978053 | 14,203,958 |
Infrastructure | |||
Statement [Line Items] | |||
Property,plant and equipment assets | R$ 7309249 | ||
Annual depreciation rate (average) | 10.00% | ||
Property,plant and equipment assets, ending balance | R$ 8497532 | 7,309,249 | |
Buildings | |||
Statement [Line Items] | |||
Property,plant and equipment assets | R$ 1649115 | ||
Annual depreciation rate (average) | 9.00% | ||
Property,plant and equipment assets, ending balance | R$ 1510444 | 1,649,115 | |
Right of use - leases | |||
Statement [Line Items] | |||
Annual depreciation rate (average) | 11.00% | ||
Property,plant and equipment assets, ending balance | R$ 7905591 | ||
Other assets | |||
Statement [Line Items] | |||
Property,plant and equipment assets | R$ 774238 | ||
Annual depreciation rate (average) | 15.00% | ||
Property,plant and equipment assets, ending balance | R$ 859285 | 774,238 | |
Gross carrying amount [member] | |||
Statement [Line Items] | |||
Property,plant and equipment assets | 126,795,685 | 121,555,568 | |
Initial adoption of IFRS 16 | 8,167,932 | ||
Contractual changes | 520,809 | ||
Additions | 7,777,057 | 5,940,627 | |
Write-offs | (1,362,518) | (700,510) | |
Transfer to held-for-sale assets | (322,146) | ||
Reclassified from held-for-sale assets | 781 | ||
Property,plant and equipment assets, ending balance | 141,577,600 | 126,795,685 | |
Gross carrying amount [member] | Works in progress | |||
Statement [Line Items] | |||
Property,plant and equipment assets | 3,351,613 | 3,434,113 | |
Additions | 6,870,257 | 5,117,872 | |
Write-offs | (104,781) | (47,465) | |
Transfers | (7,958,762) | (5,152,907) | |
Property,plant and equipment assets, ending balance | 2,158,327 | 3,351,613 | |
Gross carrying amount [member] | Automatic switching equipment | |||
Statement [Line Items] | |||
Property,plant and equipment assets | 20,077,960 | 20,008,955 | |
Additions | 487 | ||
Transfers | 135,576 | 68,518 | |
Property,plant and equipment assets, ending balance | 20,213,536 | 20,077,960 | |
Gross carrying amount [member] | Transmission and other equipment | |||
Statement [Line Items] | |||
Property,plant and equipment assets | [1] | 62,092,721 | 59,082,061 |
Additions | [1] | 226,022 | 383,088 |
Write-offs | [1] | (61,464) | (45,211) |
Transfers | [1] | 5,076,356 | 2,672,783 |
Property,plant and equipment assets, ending balance | [1] | 67,333,635 | 62,092,721 |
Gross carrying amount [member] | Infrastructure | |||
Statement [Line Items] | |||
Property,plant and equipment assets | 30,343,531 | 28,341,491 | |
Additions | 295,795 | 388,988 | |
Write-offs | (1,059,118) | (601,087) | |
Transfers | 2,463,974 | 2,214,139 | |
Transfer to held-for-sale assets | (50,854) | ||
Property,plant and equipment assets, ending balance | 31,993,328 | 30,343,531 | |
Gross carrying amount [member] | Buildings | |||
Statement [Line Items] | |||
Property,plant and equipment assets | 4,463,690 | 4,471,481 | |
Additions | 5,054 | 10,721 | |
Write-offs | (3,344) | ||
Transfers | 39,025 | (15,168) | |
Transfer to held-for-sale assets | (271,292) | ||
Property,plant and equipment assets, ending balance | 4,236,477 | 4,463,690 | |
Gross carrying amount [member] | Right of use - leases | |||
Statement [Line Items] | |||
Initial adoption of IFRS 16 | 8,167,932 | ||
Contractual changes | 520,809 | ||
Additions | 283,494 | ||
Write-offs | (136,734) | ||
Property,plant and equipment assets, ending balance | 8,835,501 | ||
Gross carrying amount [member] | Other assets | |||
Statement [Line Items] | |||
Property,plant and equipment assets | 6,466,170 | 6,217,467 | |
Additions | 96,435 | 39,471 | |
Write-offs | (421) | (3,403) | |
Transfers | 243,831 | 212,635 | |
Reclassified from held-for-sale assets | 781 | ||
Property,plant and equipment assets, ending balance | 6,806,796 | 6,466,170 | |
Accumulated depreciation and amortisation [member] | |||
Statement [Line Items] | |||
Property,plant and equipment assets | (98,370,122) | (94,566,921) | |
Depreciation expenses | (5,549,256) | (4,288,313) | |
Write-offs | 1,047,867 | 485,112 | |
Transfer to held-for-sale assets | 205,465 | ||
Reclassified from held-for-sale assets | (720) | ||
Property,plant and equipment assets, ending balance | (102,666,766) | (98,370,122) | |
Accumulated depreciation and amortisation [member] | Automatic switching equipment | |||
Statement [Line Items] | |||
Property,plant and equipment assets | (18,940,570) | (18,648,010) | |
Depreciation expenses | (271,449) | (292,524) | |
Transfers | 85 | (36) | |
Property,plant and equipment assets, ending balance | (19,211,934) | (18,940,570) | |
Accumulated depreciation and amortisation [member] | Transmission and other equipment | |||
Statement [Line Items] | |||
Property,plant and equipment assets | [1] | (47,888,763) | (45,677,425) |
Depreciation expenses | [1] | (2,519,706) | (2,251,574) |
Write-offs | [1] | 53,452 | 40,387 |
Transfers | [1] | (565) | (151) |
Property,plant and equipment assets, ending balance | [1] | (50,355,582) | (47,888,763) |
Accumulated depreciation and amortisation [member] | Infrastructure | |||
Statement [Line Items] | |||
Property,plant and equipment assets | (23,034,282) | (22,230,047) | |
Depreciation expenses | (1,456,608) | (1,246,471) | |
Write-offs | 979,614 | 442,589 | |
Transfers | (787) | (353) | |
Transfer to held-for-sale assets | 16,267 | ||
Property,plant and equipment assets, ending balance | (23,495,796) | (23,034,282) | |
Accumulated depreciation and amortisation [member] | Buildings | |||
Statement [Line Items] | |||
Property,plant and equipment assets | (2,814,575) | (2,758,012) | |
Depreciation expenses | (101,432) | (90,348) | |
Write-offs | 215 | ||
Transfers | 776 | 33,570 | |
Transfer to held-for-sale assets | 189,198 | ||
Property,plant and equipment assets, ending balance | (2,726,033) | (2,814,575) | |
Accumulated depreciation and amortisation [member] | Right of use - leases | |||
Statement [Line Items] | |||
Depreciation expenses | (952,225) | ||
Write-offs | 22,315 | ||
Property,plant and equipment assets, ending balance | (929,910) | ||
Accumulated depreciation and amortisation [member] | Other assets | |||
Statement [Line Items] | |||
Property,plant and equipment assets | (5,691,932) | (5,253,427) | |
Depreciation expenses | (247,836) | (407,396) | |
Write-offs | (7,514) | 1,921 | |
Transfers | 491 | (33,030) | |
Reclassified from held-for-sale assets | (720) | ||
Property,plant and equipment assets, ending balance | R$ 5947511 | R$ 5691932 | |
[1] | Transmission and other equipment include transmission and data communication equipment. |
Property Plant And Equipment -
Property Plant And Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement [Line Items] | ||
Returnable assets, residual value | $ 9,048,877 | $ 8,218,006 |
Finance and transaction cost capitalisation percentage | 7.00% |
Property, Plant and Equipment -
Property, Plant and Equipment - Movements in right-of-use assets (Detail) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Statement [Line Items] | |
Right-of-use assets | R$ 7905591 |
Towers [member] | |
Statement [Line Items] | |
Right-of-use assets | 7,159,657 |
Site [member] | |
Statement [Line Items] | |
Right-of-use assets | 386,125 |
Stores [member] | |
Statement [Line Items] | |
Right-of-use assets | 99,138 |
Vehicles [member] | |
Statement [Line Items] | |
Right-of-use assets | 191,507 |
Real estate [member] | |
Statement [Line Items] | |
Right-of-use assets | 69,164 |
Gross carrying amount [member] | |
Statement [Line Items] | |
Initial adoption of IFRS 16 | 8,167,932 |
Contractual changes | 520,809 |
Additions | 283,494 |
Write-offs | (136,734) |
Right-of-use assets | 8,835,501 |
Gross carrying amount [member] | Towers [member] | |
Statement [Line Items] | |
Initial adoption of IFRS 16 | 7,353,507 |
Contractual changes | 500,690 |
Additions | 65,559 |
Write-offs | (35,836) |
Right-of-use assets | 7,883,920 |
Gross carrying amount [member] | Site [member] | |
Statement [Line Items] | |
Initial adoption of IFRS 16 | 521,523 |
Contractual changes | 6,614 |
Additions | 29,008 |
Write-offs | (82,091) |
Right-of-use assets | 475,054 |
Gross carrying amount [member] | Stores [member] | |
Statement [Line Items] | |
Initial adoption of IFRS 16 | 117,480 |
Contractual changes | 6,680 |
Additions | 13,555 |
Write-offs | (8,701) |
Right-of-use assets | 129,014 |
Gross carrying amount [member] | Vehicles [member] | |
Statement [Line Items] | |
Initial adoption of IFRS 16 | 93,615 |
Additions | 174,455 |
Write-offs | (8,804) |
Right-of-use assets | 259,266 |
Gross carrying amount [member] | Real estate [member] | |
Statement [Line Items] | |
Initial adoption of IFRS 16 | 81,807 |
Contractual changes | 6,825 |
Additions | 917 |
Write-offs | (1,302) |
Right-of-use assets | 88,247 |
Accumulated depreciation and amortisation [member] | |
Statement [Line Items] | |
Depreciation expenses | (952,225) |
Write-offs | 22,315 |
Right-of-use assets | (929,910) |
Accumulated depreciation and amortisation [member] | Towers [member] | |
Statement [Line Items] | |
Depreciation expenses | (737,439) |
Write-offs | 13,176 |
Right-of-use assets | (724,263) |
Accumulated depreciation and amortisation [member] | Site [member] | |
Statement [Line Items] | |
Depreciation expenses | (92,896) |
Write-offs | 3,967 |
Right-of-use assets | (88,929) |
Accumulated depreciation and amortisation [member] | Stores [member] | |
Statement [Line Items] | |
Depreciation expenses | (31,456) |
Write-offs | 1,580 |
Right-of-use assets | (29,876) |
Accumulated depreciation and amortisation [member] | Vehicles [member] | |
Statement [Line Items] | |
Depreciation expenses | (70,787) |
Write-offs | 3,028 |
Right-of-use assets | (67,759) |
Accumulated depreciation and amortisation [member] | Real estate [member] | |
Statement [Line Items] | |
Depreciation expenses | (19,647) |
Write-offs | 564 |
Right-of-use assets | R$ 19083 |
Intangible Assets (Detail)
Intangible Assets (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement [Line Items] | ||
Balance | R$ 6948446 | |
Balance | 3,997,865 | R$ 6948446 |
Gross carrying amount [member] | ||
Statement [Line Items] | ||
Balance | 29,516,178 | 29,174,892 |
Additions | 422,345 | 341,300 |
Write-offs | (14) | |
Balance | 29,938,523 | 29,516,178 |
Accumulated depreciation and amortisation [member] | ||
Statement [Line Items] | ||
Balance | (22,567,732) | (20,824,207) |
Amortization expenses | (1,261,904) | (1,451,767) |
Expenses on impairment losses | (2,111,022) | (291,758) |
Balance | (25,940,658) | (22,567,732) |
Intangibles in progress | ||
Statement [Line Items] | ||
Balance | 27,195 | |
Balance | 12,364 | 27,195 |
Intangibles in progress | Gross carrying amount [member] | ||
Statement [Line Items] | ||
Balance | 27,195 | 17,047 |
Additions | 369,695 | 263,305 |
Transfers | (384,526) | (253,143) |
Write-offs | (14) | |
Balance | 12,364 | 27,195 |
Data processing systems | ||
Statement [Line Items] | ||
Balance | 865,233 | |
Balance | R$ 902256 | 865,233 |
Annual amortization rate (average) | 20.00% | |
Data processing systems | Gross carrying amount [member] | ||
Statement [Line Items] | ||
Balance | R$ 8981694 | 8,743,013 |
Additions | 8,402 | 4,524 |
Transfers | 410,487 | 234,157 |
Balance | 9,400,583 | 8,981,694 |
Data processing systems | Accumulated depreciation and amortisation [member] | ||
Statement [Line Items] | ||
Balance | (8,116,461) | (7,673,193) |
Amortization expenses | (381,874) | (443,268) |
Transfers | 8 | |
Balance | (8,498,327) | (8,116,461) |
Regulatory licenses | ||
Statement [Line Items] | ||
Balance | 5,850,907 | |
Balance | R$ 2967706 | 5,850,907 |
Annual amortization rate (average) | 20.00% | |
Regulatory licenses | Gross carrying amount [member] | ||
Statement [Line Items] | ||
Balance | R$ 18602742 | 18,602,742 |
Balance | 18,602,742 | 18,602,742 |
Regulatory licenses | Accumulated depreciation and amortisation [member] | ||
Statement [Line Items] | ||
Balance | (12,751,835) | (11,559,717) |
Amortization expenses | (772,179) | (900,360) |
Expenses on impairment losses | (2,111,022) | (291,758) |
Balance | (15,635,036) | (12,751,835) |
Other | ||
Statement [Line Items] | ||
Balance | 205,111 | |
Balance | R$ 115539 | 205,111 |
Annual amortization rate (average) | 23.00% | |
Other | Gross carrying amount [member] | ||
Statement [Line Items] | ||
Balance | R$ 1904547 | 1,812,090 |
Additions | 44,248 | 73,471 |
Transfers | (25,961) | 18,986 |
Balance | 1,922,834 | 1,904,547 |
Other | Accumulated depreciation and amortisation [member] | ||
Statement [Line Items] | ||
Balance | (1,699,436) | (1,591,297) |
Amortization expenses | (107,851) | (108,139) |
Transfers | (8) | |
Balance | R$ 1807295 | R$ 1699436 |
Trade Payables - Schedule of Tr
Trade Payables - Schedule of Trade Payables (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Trade and other payables [abstract] | |||
ANATEL | [1] | R$ 7572101 | R$ 7147137 |
Services | 3,423,011 | 3,397,413 | |
Infrastructure, network and plant maintenance materials | 2,607,888 | 2,861,712 | |
Rental of polls and rights-of-way | 118,966 | 191,723 | |
Other | 289,508 | 647,856 | |
Adjustment to present value | [2] | (5,124,107) | (5,426,971) |
Total | 8,887,367 | 8,818,870 | |
Current | 5,593,940 | 5,225,862 | |
Non-current | 3,293,427 | 3,593,008 | |
Trade payables subject to the Judicial Reorganization | 4,093,058 | 3,794,610 | |
Trade payables not subject to the Judicial Reorganization | 4,794,309 | 5,024,260 | |
Total | R$ 8887367 | R$ 8818870 | |
[1] | Refers for prepetition claims of the Management Regulatory Agency of the Federal Attorney General’s Office (AGU) to be settle pursuant to the JRP (see Note 24). | ||
[2] | The calculation takes into consideration the contractual flows provided for in the JRP, discounted using rate from 16.4% per year to 17,2% per year, considering the maturities of each liabilities (ANATEL and other trade payables). |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of detailed information on derivative financial instruments (Detail) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Disclosure of detailed information about hedges [line items] | |
Derivative financial instruments | R$ 1152 |
Current derivative financial liabilities | 1,152 |
Non-deliverable forwards (NDF) [member] | |
Disclosure of detailed information about hedges [line items] | |
Derivative financial instruments | R$ 1152 |
Borrowing And Financing - Sched
Borrowing And Financing - Schedule of Non current Liabilities (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 31641855 | R$ 30390692 |
Incurred debt issuance cost | (13,911) | (12,126) |
Debt discount | (13,401,195) | (13,928,660) |
Borrowings | 18,226,749 | 16,449,906 |
Current | 326,388 | 672,894 |
Non-current | 17,900,361 | 15,777,012 |
Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 6725591 | 6,353,322 |
Principal Maturity | Aug 2023 to Feb 2035 | |
Terms Of Interest Payment | Semiannual | |
BNDES | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 3947137 | 3,616,074 |
Principal Maturity | Mar 2024 to Feb 2033 | |
Terms Of Interest Payment | Monthly | |
Other | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 2071209 | 1,905,786 |
Principal Maturity | Jan 2020 to Feb 2035 | |
Terms Of Interest Payment | Monthly and semiannual | |
Default payment | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 207035 | 207,035 |
Principal Maturity | Feb 2038 to Feb 2042 | |
Terms Of Interest Payment | Single installment | |
Default payment | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 4239168 | 4,125,317 |
Principal Maturity | Feb 2038 to Feb 2042 | |
Senior notes | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 6980817 | 7,068,263 |
Principal Maturity | Jul 2025 | |
Terms Of Interest Payment | Semiannual | |
Public debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 7110737 | 6,788,519 |
Incurred debt issuance cost | R$ 605 | (645) |
Principal Maturity | Aug 2023 to Feb 2035 | |
Terms Of Interest Payment | Semiannual | |
Foreign currency multilateral financing | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 360161 | R$ 326376 |
Principal Maturity | Aug 2024 to Feb 2030 | |
Terms Of Interest Payment | Semiannual |
Borrowing And Financing - Sch_2
Borrowing And Financing - Schedule of Non current Liabilities (Parenthetical) (Detail) | Dec. 31, 2019 |
Bottom of range [member] | |
Statement [Line Items] | |
Debt instrument discount rate | 12.60% |
Bottom of range [member] | Long-term borrowings [member] | |
Statement [Line Items] | |
Debt instrument discount rate | 12.60% |
Top of range [member] | |
Statement [Line Items] | |
Debt instrument discount rate | 16.40% |
Top of range [member] | Long-term borrowings [member] | |
Statement [Line Items] | |
Debt instrument discount rate | 16.40% |
Borrowing And Financing - Sch_3
Borrowing And Financing - Schedule of Debt issuance costs by type (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Debt issuance costs | R$ 13911 | R$ 12126 |
Current | 1,404 | 1,290 |
Non-current | 12,507 | 10,836 |
Financial institutions | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt issuance costs | 13,306 | 11,481 |
Public debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt issuance costs | R$ 605 | R$ 645 |
Borrowing And Financing - Sch_4
Borrowing And Financing - Schedule of Debt Breakdown Per Currency (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 18226749 | R$ 16449906 |
Euro | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 311,309 | 198,931 |
US dollar | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 9,209,982 | 8,617,835 |
Brazilian reais | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 8705458 | R$ 7633140 |
Borrowing And Financing - Sch_5
Borrowing And Financing - Schedule of Debt Breakdown Per Index (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 18226749 | R$ 16449906 |
Fixed rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 9078998 | 8,562,117 |
Fixed rate | Bottom of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.75% | |
Fixed rate | Top of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 10.00% | |
CDI | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest Rate Description | 80% CDI | |
Borrowings | R$ 4694687 | 3,949,639 |
TJLP | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest Rate Description | 2.95% p.a. + TJLP | |
Borrowings | R$ 3945972 | 3,614,820 |
TR | ||
Disclosure of detailed information about borrowings [line items] | ||
Index/Rate | 0.00% | |
Borrowings | R$ 22662 | 14,430 |
Other | ||
Disclosure of detailed information about borrowings [line items] | ||
Index/Rate | 0.00% | |
Borrowings | R$ 484430 | R$ 308900 |
Borrowing And Financing - Long-
Borrowing And Financing - Long-term Debt Maturity (Detail) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Long-term debt | R$ 31314063 |
Discount debt | 13,401,195 |
Debt issuance costs | 12,507 |
2021 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Long-term debt | 3,953 |
Discount debt | 887,351 |
Debt issuance costs | 1,811 |
2022 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Long-term debt | 970 |
Discount debt | 887,351 |
Debt issuance costs | 1,811 |
2023 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Long-term debt | 313,181 |
Discount debt | 887,351 |
Debt issuance costs | 1,811 |
2024 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Long-term debt | 773,745 |
Discount debt | 884,980 |
Debt issuance costs | 1,811 |
2025 and thereafter | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Long-term debt | 30,222,214 |
Discount debt | 9,854,162 |
Debt issuance costs | R$ 5263 |
Borrowing And Financing - Chang
Borrowing And Financing - Changes in borrowings and financing (Detail) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of detailed information about borrowings [line items] | |
Beginning balance | R$ 16449906 |
Interest, monetary corrections, and exchange differences | 1,919,524 |
Amortization of debt discount | 910,491 |
Principle and interest payment | (935,243) |
Tax other payments | (171,962) |
Transfer and other | 54,033 |
Ending balance | 18,226,749 |
Borrowings and financing [member] | |
Disclosure of detailed information about borrowings [line items] | |
Beginning balance | 30,390,692 |
Interest, monetary corrections, and exchange differences | 2,253,793 |
Principle and interest payment | (935,243) |
Tax other payments | (171,962) |
Transfer and other | 104,575 |
Ending balance | 31,641,855 |
Debt discount [member] | |
Disclosure of detailed information about borrowings [line items] | |
Beginning balance | (13,928,660) |
Interest, monetary corrections, and exchange differences | (334,269) |
Amortization of debt discount | 910,491 |
Transfer and other | (48,757) |
Ending balance | (13,401,195) |
Incurred debt issuance cost [member] | |
Disclosure of detailed information about borrowings [line items] | |
Beginning balance | (12,126) |
Transfer and other | (1,785) |
Ending balance | R$ 13911 |
Borrowing And Financing - Addit
Borrowing And Financing - Additional Information (Detail) R$ in Millions | Dec. 31, 2019BRL (R$) |
Financial guarantee contracts | Long-term borrowings | Telemar oi Movel | |
Statement [Line Items] | |
Financial liability, guarantee obligations | R$ 2937 |
Licenses And Concessions Paya_3
Licenses And Concessions Payable - Schedule of licenses and concessions payable (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Licenses And Concessions Payable [Abstract] | ||
Personal Mobile Services - SMP | R$ 58582 | R$ 29530 |
STFC concessions | 56,089 | |
Total | 58,582 | 85,619 |
Current | R$ 58582 | R$ 85619 |
Leases Payable - Summary of Lea
Leases Payable - Summary of Leases Payable (Detail) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Disclosure Of Quantitative Information About Lease Liabilities [Line Items] | |
Lease liabilities | R$ 8150026 |
Current | 1,510,097 |
Non-current | 6,639,929 |
Towers | |
Disclosure Of Quantitative Information About Lease Liabilities [Line Items] | |
Lease liabilities | 7,373,373 |
Site | |
Disclosure Of Quantitative Information About Lease Liabilities [Line Items] | |
Lease liabilities | 403,485 |
Stores | |
Disclosure Of Quantitative Information About Lease Liabilities [Line Items] | |
Lease liabilities | 103,792 |
Land and buildings | |
Disclosure Of Quantitative Information About Lease Liabilities [Line Items] | |
Lease liabilities | 72,719 |
Vehicles | |
Disclosure Of Quantitative Information About Lease Liabilities [Line Items] | |
Lease liabilities | R$ 196657 |
Leases Payable - Summary of Mov
Leases Payable - Summary of Movements in leases payable (Detail) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Lease liabilities [abstract] | |
Initial adoption of IFRS 16 | R$ 8167932 |
New contracts | 237,575 |
Cancellations | (127,699) |
Interest | 958,573 |
Payments | (1,611,273) |
Contractual changes | 524,918 |
Lease liabilities | R$ 8150026 |
Leases Payable - Summary of Mat
Leases Payable - Summary of Maturity of long-term lease payments (Detail) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
lease liabilities | R$ 13972622 |
Interest | (7,332,693) |
Non-current | 6,639,929 |
2021 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
lease liabilities | 1,501,799 |
2022 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
lease liabilities | 1,414,630 |
2023 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
lease liabilities | 1,307,923 |
2024 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
lease liabilities | 1,253,069 |
2025 to 2029 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
lease liabilities | 4,882,027 |
2030 and thereafter | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
lease liabilities | R$ 3613174 |
Leases Payable - Additional Inf
Leases Payable - Additional Information (Detail) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure Of Quantitative Information About Lease Liabilities [Line Items] | |
Lease payments recognised in the income statement | R$ 78134 |
Variable lease payments recognised in the income statement | R$ 7966 |
Bottom of range | |
Disclosure Of Quantitative Information About Lease Liabilities [Line Items] | |
Lease payables discount rate | 10.79% |
Top of range | |
Disclosure Of Quantitative Information About Lease Liabilities [Line Items] | |
Lease payables discount rate | 12.75% |
Tax Refinancing Program - Summa
Tax Refinancing Program - Summary of Outstanding Balance of Tax Debt Refinancing Program (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Tax Debt Refinancing Program [Line Items] | ||
Tax debt refinancing program payable | R$ 417503 | R$ 553206 |
Tax debt refinancing program payable, Current | 86,721 | 142,036 |
Tax debt refinancing program payable, Non-current | 330,782 | 411,170 |
Law 11941/09 and Law 12865/2013 tax financing program | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax debt refinancing program payable | 417,076 | 496,240 |
PRT (MP 766/2017) | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax debt refinancing program payable | 54,528 | |
PERT (Law 13496/2017) | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax debt refinancing program payable | R$ 427 | R$ 2438 |
Tax Refinancing Program - Sched
Tax Refinancing Program - Schedule of Components of Tax Debt Refinancing Program (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | R$ 417503 | R$ 553206 |
Principal | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 73,377 | |
Fines | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 6,844 | |
Interest | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 337,282 | |
Tax on revenue (COFINS) | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 153,790 | 199,595 |
Tax on revenue (COFINS) | Principal | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 2,718 | |
Tax on revenue (COFINS) | Interest | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 151,072 | |
Income tax | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 37,995 | 44,967 |
Income tax | Principal | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 1,317 | |
Income tax | Interest | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 36,678 | |
Tax on revenue (PIS) | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 72,027 | 79,885 |
Tax on revenue (PIS) | Principal | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 36,785 | |
Tax on revenue (PIS) | Interest | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 35,242 | |
Social security (INSS – SAT) | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 3,039 | 4,774 |
Social security (INSS – SAT) | Principal | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 650 | |
Social security (INSS – SAT) | Fines | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 371 | |
Social security (INSS – SAT) | Interest | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 2,018 | |
Social contribution | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 11,315 | 12,503 |
Social contribution | Principal | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 580 | |
Social contribution | Fines | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 22 | |
Social contribution | Interest | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 10,713 | |
Tax on banking transactions (CPMF) | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 50,573 | 50,132 |
Tax on banking transactions (CPMF) | Principal | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 18,950 | |
Tax on banking transactions (CPMF) | Fines | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 2,137 | |
Tax on banking transactions (CPMF) | Interest | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 29,486 | |
PRT – Other debts - RFB | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 54,528 | |
PERT – Other debts - RFB | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 427 | 2,438 |
PERT – Other debts - RFB | Principal | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 240 | |
PERT – Other debts - RFB | Interest | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 187 | |
Other | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 88,337 | R$ 104384 |
Other | Principal | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 12,137 | |
Other | Fines | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | 4,314 | |
Other | Interest | ||
Tax Debt Refinancing Program [Line Items] | ||
Tax refinancing program | R$ 71886 |
Tax Refinancing Program - Sch_2
Tax Refinancing Program - Schedule of Future Payment of Tax Financing Program (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Tax Debt Refinancing Program [Line Items] | ||
2020 | R$ 86718 | |
2021 | 86,292 | |
2022 | 86,292 | |
2023 | 86,292 | |
2024 | 71,909 | |
Tax debt refinanced amount | R$ 417503 | R$ 553206 |
Tax Refinancing Program - Addi
Tax Refinancing Program - Additional Information (Detail) R$ in Millions | 12 Months Ended |
Dec. 31, 2019BRL (R$)Installment | |
PERT (LAW 13496/2017) | |
Tax Debt Refinancing Program [Line Items] | |
Tax debts settled in cash | R$ 15 |
Tax Compliance Program [Member] | |
Tax Debt Refinancing Program [Line Items] | |
Percentage of tax debts that can be offset against own tax carry forwards | 76.00% |
Tax debts offset by loss carry forwards | R$ 1035 |
Percentage of remaining tax debts that can be offset against own tax carry forwards | 24.00% |
Tax debts settled in cash | R$ 327 |
Number of installments | Installment | 24 |
Provisions - Schedule of Provis
Provisions - Schedule of Provision For Contingencies (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of other provisions [line items] | |||
Other provisions | R$ 5251680 | R$ 5038720 | R$ 7783134 |
Current | 547,996 | 680,542 | |
Non-current | 4,703,684 | 4,358,178 | |
Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 2,051,032 | 1,457,181 | 1,596,418 |
Tax | |||
Disclosure of other provisions [line items] | |||
Other provisions | 1,050,948 | 650,083 | 660,302 |
Civil | |||
Disclosure of other provisions [line items] | |||
Other provisions | 2,149,700 | 2,931,456 | R$ 5526414 |
Overtime | Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 855,722 | 602,673 | |
Sundry premiums | Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 299,096 | 187,499 | |
Indemnities | Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 221,743 | 166,963 | |
Stability/reintegration | Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 215,449 | 160,442 | |
Additional post-retirement benefits | Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 108,827 | 94,691 | |
Salary differences | Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 101,573 | 61,674 | |
Lawyer/expert fees | Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 51,193 | 30,898 | |
Severance pay | Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 38,261 | 31,521 | |
Labor fines | Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 30,399 | 25,921 | |
Employment relationship | Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 18,758 | 15,952 | |
Severance Pay Fund (FGTS) | Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 13,306 | 10,804 | |
Joint liability | Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 3,100 | 889 | |
State VAT (ICMS) | Tax | |||
Disclosure of other provisions [line items] | |||
Other provisions | 746,481 | 503,332 | |
Tax on services (ISS) | Tax | |||
Disclosure of other provisions [line items] | |||
Other provisions | 69,208 | 76,389 | |
INSS (joint liability, fees, and severance pay) | Tax | |||
Disclosure of other provisions [line items] | |||
Other provisions | 23,847 | 23,100 | |
Real Estate Tax (IPTU) | Tax | |||
Disclosure of other provisions [line items] | |||
Other provisions | 150,223 | ||
Other claims | Labour | |||
Disclosure of other provisions [line items] | |||
Other provisions | 93,605 | 67,254 | |
Other claims | Tax | |||
Disclosure of other provisions [line items] | |||
Other provisions | 61,189 | 47,262 | |
Other claims | Civil | |||
Disclosure of other provisions [line items] | |||
Other provisions | 1,062,561 | 1,035,398 | |
ANATEL | Civil | |||
Disclosure of other provisions [line items] | |||
Other provisions | 570,283 | 580,182 | |
Corporate | Civil | |||
Disclosure of other provisions [line items] | |||
Other provisions | 397,946 | 1,124,037 | |
Small claims courts | Civil | |||
Disclosure of other provisions [line items] | |||
Other provisions | 118,910 | 191,839 | |
Total Provision | Civil | |||
Disclosure of other provisions [line items] | |||
Other provisions | R$ 2149700 | R$ 2931456 |
Provisions - Schedule of Prov_2
Provisions - Schedule of Provision For Contingencies (Detail) (Parenthetical) R$ in Thousands | Dec. 31, 2018BRL (R$) |
Pharol [Member] | |
Disclosure of other provisions [line items] | |
Provisions for civil contingencies | R$ 157809 |
Provisions - Schedule of Activi
Provisions - Schedule of Activities In Provision For Contingencies (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure of other provisions [line items] | ||||
Beginning Balance | R$ 5038720 | R$ 7783134 | ||
Monetary correction | 1,620,378 | [1] | 226,870 | [2] |
Additions/(reversals) | 216,438 | [1] | 92,880 | [2] |
Write-offs for payment/terminations | (1,627,769) | (3,064,164) | [2] | |
Reclassified from held-for-sale assets | 3,913 | |||
Ending Balance | 5,251,680 | 5,038,720 | ||
Labour [Member] | ||||
Disclosure of other provisions [line items] | ||||
Beginning Balance | 1,457,181 | 1,596,418 | ||
Monetary correction | 485,049 | [1] | 184,112 | [2] |
Additions/(reversals) | 316,182 | [1] | 99,805 | [2] |
Write-offs for payment/terminations | (207,380) | (423,154) | [2] | |
Ending Balance | 2,051,032 | 1,457,181 | ||
Tax [Member] | ||||
Disclosure of other provisions [line items] | ||||
Beginning Balance | 650,083 | 660,302 | ||
Monetary correction | 60,688 | [1] | 77,697 | [2] |
Additions/(reversals) | 1,002,827 | [1] | (49,659) | [2] |
Write-offs for payment/terminations | (666,563) | (38,257) | [2] | |
Reclassified from held-for-sale assets | 3,913 | |||
Ending Balance | 1,050,948 | 650,083 | ||
Civil [Member] | ||||
Disclosure of other provisions [line items] | ||||
Beginning Balance | 2,931,456 | 5,526,414 | ||
Monetary correction | 1,074,641 | [1] | (34,939) | [2] |
Additions/(reversals) | (1,102,571) | [1] | 42,734 | [2] |
Write-offs for payment/terminations | (753,826) | (2,602,753) | [2] | |
Ending Balance | R$ 2149700 | R$ 2931456 | ||
[1] | The Company continuously monitors its proceedings and revised the calculation methodology of provision estimates, taking into consideration the new profile and history of legal proceeding terminations, in the context of the JRP, as well as in the assessment of the risk of loss carried out by Management supported by its legal advisors. | |||
[2] | This line item basically includes the amounts related to proceedings terminated and included in the list of the Company’s judicial reorganization creditors, which were transferred to the line item trade payables and will be paid according to the terms of the JRP. |
Provision for Contingencies - A
Provision for Contingencies - Additional Information (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2016 |
Disclosure of other provisions [line items] | ||||
Provision for contingencies | R$ 5251680 | R$ 5038720 | R$ 7783134 | |
Contingent liabilities | 30,881,924 | 30,080,186 | ||
Contingent liability for guarantees [member] | ||||
Disclosure of other provisions [line items] | ||||
Contingent liabilities | 11,909,901 | 13,750,739 | ||
Labour [Member] | ||||
Disclosure of other provisions [line items] | ||||
Provision for contingencies | 2,051,032 | 1,457,181 | 1,596,418 | |
Contingent liabilities | 797,927 | 770,982 | ||
Tax [Member] | ||||
Disclosure of other provisions [line items] | ||||
Provision for contingencies | 1,050,948 | 650,083 | 660,302 | |
Contingent liabilities | 28,416,097 | 27,586,094 | ||
Tax [Member] | ICMS [Member] | ||||
Disclosure of other provisions [line items] | ||||
Contingent liabilities | 13,470,008 | 12,523,402 | ||
Tax [Member] | ISS [Member] | ||||
Disclosure of other provisions [line items] | ||||
Contingent liabilities | 3,286,248 | 3,505,366 | ||
Tax [Member] | INSS [Member] | ||||
Disclosure of other provisions [line items] | ||||
Contingent liabilities | 649,803 | 695,249 | ||
Tax [Member] | Federal taxes [Member] | ||||
Disclosure of other provisions [line items] | ||||
Contingent liabilities | 11,010,038 | 10,862,077 | ||
Civil [Member] | ||||
Disclosure of other provisions [line items] | ||||
Provision for contingencies | 2,149,700 | 2,931,456 | R$ 5526414 | |
Contingent liabilities | 1,667,900 | R$ 1723110 | ||
ANATEL | ||||
Disclosure of other provisions [line items] | ||||
Provision for contingencies | R$ 570000 | R$ 14500000 | ||
ANATEL | Eligible Claims [Member] | ||||
Disclosure of other provisions [line items] | ||||
Provision for contingencies | 8,400,000 | |||
ANATEL | Non liquid Claims [Member] | ||||
Disclosure of other provisions [line items] | ||||
Provision for contingencies | R$ 6100000 |
Provision for Contingencies - S
Provision for Contingencies - Schedule of Carrying Amounts of the Main Legal Matters With Possible Risk of Loss (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of contingent liabilities [line items] | ||
Possible risk of loss | R$ 30881924 | R$ 30080186 |
Labour [Member] | ||
Disclosure of contingent liabilities [line items] | ||
Possible risk of loss | 797,927 | 770,982 |
Tax [Member] | ||
Disclosure of contingent liabilities [line items] | ||
Possible risk of loss | 28,416,097 | 27,586,094 |
Civil [Member] | ||
Disclosure of contingent liabilities [line items] | ||
Possible risk of loss | R$ 1667900 | R$ 1723110 |
Other Payables - Schedule of Ot
Other Payables - Schedule of Other Payables (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Trade and other payables [abstract] | |||
Onerous obligation | [1] | R$ 5817130 | R$ 4493894 |
Unearned revenues | [2] | 1,704,420 | 1,916,570 |
Provisions for indemnities payable | 640,661 | 676,984 | |
Advances from customers | 313,163 | 215,228 | |
Consignment to third parties | 41,249 | 56,302 | |
Provision for asset decommissioning | 18,101 | 17,395 | |
Other | 404,455 | 510,867 | |
Total | 8,939,179 | 7,887,240 | |
Current | 1,405,013 | 1,381,919 | |
Non-current | R$ 7534166 | R$ 6505321 | |
[1] | The Company and its subsidiaries are parties to a telecommunications signals transmission capacity supply agreement using submarine cables that connect North America and South America, and also hires the supply of capacity of the space segment for the provision of the DTH TV service. Since (a) the agreement obligations exceed the economic benefits that are expected to be received throughout the agreement; and (b) the costs are unavoidable, the Company and its subsidiaries recognized, pursuant to IAS 37, an onerous obligation measured at the lowest of net output cost of the agreement brought to present value, in 2019, amounting to R$1.2 billion of the satellite transmission contract (DTH TV) and in 2018, amounting to R$4.5 billion of the transmission contract via submarine cables. | ||
[2] | Refers to the amounts received a prepayment for the assignment of the commercial operation and the use of infrastructure assets that are recognized in revenue for the agreements’ effective period. Include also certification/installation rates of the service that are recognized in the revenue pursuant to the period that the services are used by the customers. |
Other Payables - Schedule of _2
Other Payables - Schedule of Other Payables (Parenthetical) (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Onerous contracts provision | [1] | R$ 5817130 | R$ 4493894 |
IAS 37 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Onerous contracts provision | R$ 1200 | R$ 4500 | |
[1] | The Company and its subsidiaries are parties to a telecommunications signals transmission capacity supply agreement using submarine cables that connect North America and South America, and also hires the supply of capacity of the space segment for the provision of the DTH TV service. Since (a) the agreement obligations exceed the economic benefits that are expected to be received throughout the agreement; and (b) the costs are unavoidable, the Company and its subsidiaries recognized, pursuant to IAS 37, an onerous obligation measured at the lowest of net output cost of the agreement brought to present value, in 2019, amounting to R$1.2 billion of the satellite transmission contract (DTH TV) and in 2018, amounting to R$4.5 billion of the transmission contract via submarine cables. |
Shareholders' Equity - Share Ca
Shareholders' Equity - Share Capital (Detail) - shares | Dec. 31, 2019 | Jan. 25, 2019 | Dec. 31, 2018 |
Total capital in shares | |||
Number of shares issued and fully paid | 5,954,205,000 | 2,455,974,000 | |
Treasury shares | |||
Number of treasury shares | 1,842,000 | 33,842,000 | |
Outstanding shares | |||
Number of shares outstanding | 5,952,363,000 | 2,422,132,000 | |
Common shares | |||
Total capital in shares | |||
Number of shares issued and fully paid | 5,796,478,000 | 1,604,268,162 | 2,298,247,000 |
Treasury shares | |||
Number of treasury shares | 30,000 | 32,030,000 | |
Outstanding shares | |||
Number of shares outstanding | 5,796,448,000 | 2,266,217,000 | |
Preferred shares | |||
Total capital in shares | |||
Number of shares issued and fully paid | 157,727,000 | 157,727,000 | |
Treasury shares | |||
Number of treasury shares | 1,812,000 | 1,812,000 | |
Outstanding shares | |||
Number of shares outstanding | 155,915,000 | 155,915,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Calculations of Basic and Diluted Loss Per Share (Detail) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement [Line Items] | |||
Profit (loss), attributable to owners of parent | R$ 9000434 | R$ 24591140 | R$ 6365019 |
Common shares | |||
Statement [Line Items] | |||
Profit (loss), attributable to owners of parent | R$ 8764803 | R$ 22036074 | R$ 4896241 |
Weighted average number of outstanding shares | |||
Weighted average number of shares outstanding | 5,788,447 | 1,344,686 | 519,752 |
Net income (loss) per share | |||
Basic and diluted earnings (loss) per share | R$ 1.51 | R$ 16.39 | R$ 9.42 |
Preferred shares | |||
Statement [Line Items] | |||
Profit (loss), attributable to owners of parent | R$ 235631 | R$ 2555066 | R$ 1468778 |
Weighted average number of outstanding shares | |||
Weighted average number of shares outstanding | 155,615 | 155,915 | 155,915 |
Net income (loss) per share | |||
Basic and diluted earnings (loss) per share | R$ 1.51 | R$ 16.39 | R$ 9.42 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional information (Detail) $ in Thousands | Jan. 25, 2019BRL (R$)shares | Jul. 27, 2018BRL (R$)shares | Dec. 31, 2019BRL (R$)shares | Dec. 31, 2018BRL (R$)shares | Dec. 31, 2017BRL (R$) | Dec. 31, 2019USD ($)shares | Apr. 30, 2019shares | Jan. 21, 2019shares | Jan. 16, 2019shares | Oct. 28, 2018shares | Jul. 20, 2018BRL (R$)shares |
Statement [Line Items] | |||||||||||
Increase in equity | R$ 32538937000 | R$ 32038471000 | R$ 10600097000 | ||||||||
Number of shares issued | shares | 1,514,299 | ||||||||||
shares issued on warrant and ADW exercise | shares | 115,914 | ||||||||||
Share capital | 4,337,475,000 | R$ 11613980000 | |||||||||
Share issuance costs | R$ 423644000 | ||||||||||
Number of shares issued and fully paid | shares | 5,954,205,000 | 2,455,974,000 | 5,954,205,000 | ||||||||
Share capital authorized | R$ 38038701741490 | ||||||||||
Allocation of the profit offset prior years' accumulated losses | (9,000,434,000) | R$ 24591140000 | R$ 6365019000 | ||||||||
Delivery of treasury shares | 111,862,000 | ||||||||||
Capital reserves | R$ 3906771000 | R$ 11532995000 | |||||||||
Private Placement | |||||||||||
Statement [Line Items] | |||||||||||
Number of shares issued | shares | 272,148,705 | 272,148,705 | |||||||||
Bratel [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Number of shares issued | shares | 33,800,000 | ||||||||||
Judicial Reorganisation | |||||||||||
Statement [Line Items] | |||||||||||
Number of shares issued | shares | 3,225,806,451 | ||||||||||
Judicial Reorganisation | Backstop Investors [Member] | Private Placement | |||||||||||
Statement [Line Items] | |||||||||||
Number of shares issued | shares | 272,148,705 | ||||||||||
Commitment Agreement | |||||||||||
Statement [Line Items] | |||||||||||
Commitement fees | R$ 337464000 | ||||||||||
Share issuance costs | 86,180,000 | ||||||||||
Treasury shares | |||||||||||
Statement [Line Items] | |||||||||||
Increase in equity | R$ 2727842000 | ||||||||||
Number of shares issued | shares | 116,251,405 | ||||||||||
Delivery of treasury shares | R$ 773072000 | 2,772,507,000 | |||||||||
Other capital reserves | |||||||||||
Statement [Line Items] | |||||||||||
Delivery of treasury shares | 2,462,799,000 | ||||||||||
Capital reserves | R$ 3837009000 | $ 1,933,200 | |||||||||
Capital Increases New Funds One [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Increase in equity | R$ 4000000000 | ||||||||||
Number of shares issued | shares | 3,225,806,451 | 3,225,806,451 | |||||||||
Capital Increase Scheme [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Number of shares issued | shares | 1,604,268,162 | ||||||||||
shares issued on warrant exercise | shares | 275,985 | ||||||||||
Share capital | R$ 500466000 | ||||||||||
Common shares | |||||||||||
Statement [Line Items] | |||||||||||
Number of shares issued | shares | 91,080,933 | 1,530,457,356 | |||||||||
Number of shares issued and fully paid | shares | 1,604,268,162 | 5,796,478,000 | 2,298,247,000 | 5,796,478,000 | |||||||
Allocation of the profit offset prior years' accumulated losses | R$ 8764803000 | R$ 22036074000 | (4,896,241,000) | ||||||||
Common shares | Bratel [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Number of shares issued | shares | 32,000,000 | ||||||||||
Preferred shares | |||||||||||
Statement [Line Items] | |||||||||||
Number of shares issued and fully paid | shares | 157,727,000 | 157,727,000 | 157,727,000 | ||||||||
Allocation of the profit offset prior years' accumulated losses | R$ 235631000 | R$ 2555066000 | R$ 1468778000 | ||||||||
Preferred shares | Bratel [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Number of shares issued | shares | 1,800,000 | ||||||||||
Shares Repurchased ,Value During The Period | R$ 2572000 | ||||||||||
Purchase of treasury sharesshares | shares | 1,800,000 | ||||||||||
Fair value | |||||||||||
Statement [Line Items] | |||||||||||
Increase in equity | R$ 11613980000 |
Employee Benefits - Disclosure
Employee Benefits - Disclosure of detailed information about provision for employee benefits explanatory (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Provisions for employee benefits | R$ 633012 | R$ 579122 | |
Non-current | 633,012 | 579,122 | |
Financial obligations - BrTPREV plan | |||
Disclosure of defined benefit plans [line items] | |||
Provisions for employee benefits | [1] | 626,748 | 574,725 |
PAMEC Plan | |||
Disclosure of defined benefit plans [line items] | |||
Provisions for employee benefits | R$ 6264 | R$ 4397 | |
[1] | The Company had a financial obligations agreement entered into with Fundação Atlântico intended for the payment of the mathematical provision without coverage by the plan’s assets. With the approval and ratification of the JRP, the related claim of Fundação Atlântico against Oi is subject to the new terms and conditions of the JRP. |
Employee Benefits - Disclosur_2
Employee Benefits - Disclosure of defined benefit plans (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of defined benefit plans [line items] | ||
Net defined benefit asset | R$ 60045 | R$ 69133 |
Current | 5,430 | 4,880 |
Non-current | 54,615 | 64,253 |
TCSPREV Plan | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit asset | 56,559 | 68,934 |
CELPREV Plan | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit asset | 222 | R$ 199 |
PBS TNC Plan [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit asset | R$ 3264 |
Employee Benefits - Disclosur_3
Employee Benefits - Disclosure of net defined benefit liability (asset) (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
PAMEC Plan | ||||
Disclosure of defined benefit plans [line items] | ||||
Interest on actuarial liabilities | R$ 414 | R$ 317 | R$ 378 | |
Return on plan assets | ||||
PAMEC Plan | Present value of defined benefit obligation [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 4,397 | 3,300 | ||
Interest on actuarial liabilities | 414 | 317 | ||
Benefits paid, net | (484) | (688) | ||
Benefit obligation result allocated to other comprehensive income | 1,937 | 1,468 | ||
Present value of actuarial obligation at the end of the year | 6,264 | 4,397 | 3,300 | |
Amortizing contributions received from sponsor | 484 | |||
Payment of benefits | (484) | (688) | ||
(=) Net actuarial liability/(asset) amount | 6,264 | 4,397 | ||
(=) Recognized net actuarial liability/(asset)(1) | 6,264 | 4,397 | ||
PAMEC Plan | Plan assets [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Benefits paid, net | (688) | |||
Regular contributions received by plan | 688 | |||
Payment of benefits | (688) | |||
PAMA Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Interest on actuarial liabilities | 308,512 | 299,881 | 286,035 | |
Current service cost | 322 | 274 | 170,184 | |
Return on plan assets | (312,146) | (312,593) | (331,699) | |
(=) Net actuarial liability/(asset) amount | (21,542) | |||
Effect of the asset/onerous liability recognition ceiling | 21,542 | |||
PAMA Plan [Member] | Present value of defined benefit obligation [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 3,422,402 | 3,113,772 | ||
Interest on actuarial liabilities | 308,512 | 299,881 | ||
Current service cost | 322 | 273 | ||
Participant contributions made in the year | ||||
Benefits paid, net | (229,329) | (237,744) | ||
Benefit obligation result allocated to other comprehensive income | 641,713 | 246,220 | ||
Present value of actuarial obligation at the end of the year | 4,143,620 | 3,422,402 | 3,113,772 | |
Fair value of assets at the beginning of the year | 3,443,944 | |||
Return on plan assets | 312,145 | |||
Participants | ||||
Payment of benefits | (229,329) | (237,744) | ||
Benefit obligation result allocated to other comprehensive income | 895,983 | |||
Fair value of plan assets at the end of the year | 4,422,743 | 3,443,944 | ||
(=) Net actuarial liability/(asset) amount | (279,123) | |||
Effect of the asset/onerous liability recognition ceiling | 279,123 | |||
PAMA Plan [Member] | Plan assets [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Benefits paid, net | (237,744) | |||
Fair value of assets at the beginning of the year | 3,443,944 | 3,243,093 | ||
Return on plan assets | 312,593 | |||
Payment of benefits | (237,744) | |||
Benefit obligation result allocated to other comprehensive income | 126,002 | |||
Fair value of plan assets at the end of the year | 3,443,944 | 3,243,093 | ||
BrTPREV Plans | ||||
Disclosure of defined benefit plans [line items] | ||||
Interest on actuarial liabilities | 218,103 | 260,649 | ||
Current service cost | 74 | 102 | ||
Return on plan assets | (161,415) | (210,579) | ||
BrTPREV Plans | Present value of defined benefit obligation [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | [1] | 2,524,728 | ||
Interest on actuarial liabilities | [1] | 218,105 | ||
Current service cost | [1] | 74 | ||
Participant contributions made in the year | [1] | 12 | ||
Benefits paid, net | [1] | (177,215) | ||
Benefit obligation result allocated to other comprehensive income | [1] | 60,942 | ||
Asset increase/(decrease) as a result of the Plan's merger | [1] | (2,626,646) | ||
Present value of actuarial obligation at the end of the year | [1] | 2,524,728 | ||
Participants | [1] | 12 | ||
Payment of benefits | [1] | (177,215) | ||
Asset increase/(decrease) as a result of the Plan's merger | [1] | (2,626,646) | ||
BrTPREV Plans | Plan assets [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Participant contributions made in the year | [1] | 12 | ||
Benefits paid, net | [1] | (177,215) | ||
Asset increase/(decrease) as a result of the Plan's merger | [1] | (1,916,410) | ||
Fair value of assets at the beginning of the year | [1] | 1,895,608 | ||
Return on plan assets | [1] | 161,415 | ||
Amortizing contributions received from sponsor | [1] | 11 | ||
Regular contributions received by plan | [1] | 12 | ||
Participants | [1] | 12 | ||
Payment of benefits | [1] | (177,215) | ||
Benefit obligation result allocated to other comprehensive income | [1] | 36,579 | ||
Asset increase/(decrease) as a result of the Plan's merger | [1] | (1,916,410) | ||
Fair value of plan assets at the end of the year | [1] | 1,895,608 | ||
TCSPREV Plan | ||||
Disclosure of defined benefit plans [line items] | ||||
Interest on actuarial liabilities | 283,541 | 78,222 | 64,927 | |
Current service cost | 250 | 196 | 457 | |
Return on plan assets | (313,409) | (200,469) | (215,509) | |
(=) Net actuarial liability/(asset) amount | (364,552) | |||
Effect of the asset/onerous liability recognition ceiling | 295,618 | |||
(=) Recognized net actuarial liability/(asset)(1) | (68,934) | |||
TCSPREV Plan | Present value of defined benefit obligation [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 3,256,516 | 625,266 | ||
Interest on actuarial liabilities | 78,223 | |||
Current service cost | 196 | |||
Participant contributions made in the year | 2 | |||
Benefits paid, net | (61,605) | |||
Benefit obligation result allocated to other comprehensive income | (12,212) | |||
Asset increase/(decrease) as a result of the Plan's merger | 2,626,646 | |||
Present value of actuarial obligation at the end of the year | 3,256,516 | 625,266 | ||
Participants | 2 | |||
Payment of benefits | (61,605) | |||
Asset increase/(decrease) as a result of the Plan's merger | 2,626,646 | |||
(=) Net actuarial liability/(asset) amount | (238,575) | |||
Effect of the asset/onerous liability recognition ceiling | 182,016 | |||
(=) Recognized net actuarial liability/(asset)(1) | (56,559) | |||
TCSPREV Plan | Plan assets [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 3,256,516 | |||
Interest on actuarial liabilities | 283,542 | |||
Current service cost | 250 | |||
Participant contributions made in the year | 15 | 2 | ||
Benefits paid, net | (262,369) | (61,605) | ||
Benefit obligation result allocated to other comprehensive income | 500,731 | |||
Asset increase/(decrease) as a result of the Plan's merger | 1,916,410 | |||
Present value of actuarial obligation at the end of the year | 3,778,685 | 3,256,516 | ||
Fair value of assets at the beginning of the year | 3,621,068 | 1,953,967 | ||
Return on plan assets | 313,409 | 200,469 | ||
Regular contributions received by plan | 4 | |||
Sponsor | 13 | 2 | ||
Participants | 15 | 2 | ||
Payment of benefits | (262,369) | (61,605) | ||
Benefit obligation result allocated to other comprehensive income | 345,124 | (388,177) | ||
Asset increase/(decrease) as a result of the Plan's merger | 1,916,410 | |||
Fair value of plan assets at the end of the year | 4,017,260 | 3,621,068 | 1,953,967 | |
PBS-Telemar Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Interest on actuarial liabilities | 28,419 | 29,114 | 32,488 | |
Current service cost | 34 | 41 | 33 | |
Return on plan assets | (33,149) | (34,332) | (35,817) | |
(=) Net actuarial liability/(asset) amount | (50,870) | |||
Effect of the asset/onerous liability recognition ceiling | 50,870 | |||
PBS-Telemar Plan [Member] | Present value of defined benefit obligation [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 328,130 | 307,658 | ||
Interest on actuarial liabilities | 29,113 | |||
Current service cost | 41 | |||
Participant contributions made in the year | 34 | |||
Benefits paid, net | (23,441) | |||
Benefit obligation result allocated to other comprehensive income | 14,725 | |||
Present value of actuarial obligation at the end of the year | 328,130 | 307,658 | ||
Participants | 34 | |||
Payment of benefits | (23,441) | |||
(=) Net actuarial liability/(asset) amount | (65,360) | |||
Effect of the asset/onerous liability recognition ceiling | 65,360 | |||
PBS-Telemar Plan [Member] | Plan assets [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 328,130 | |||
Interest on actuarial liabilities | 28,419 | |||
Current service cost | 34 | |||
Participant contributions made in the year | 28 | 34 | ||
Benefits paid, net | (23,683) | (23,441) | ||
Benefit obligation result allocated to other comprehensive income | 32,358 | |||
Present value of actuarial obligation at the end of the year | 365,286 | 328,130 | ||
Fair value of assets at the beginning of the year | 379,000 | 360,700 | ||
Return on plan assets | 33,149 | 34,332 | ||
Regular contributions received by plan | 100 | |||
Sponsor | 65 | 66 | ||
Participants | 28 | 34 | ||
Payment of benefits | (23,683) | (23,441) | ||
Benefit obligation result allocated to other comprehensive income | 42,087 | 7,309 | ||
Fair value of plan assets at the end of the year | 430,646 | 379,000 | 360,700 | |
Telemar Prev Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Interest on actuarial liabilities | 367,633 | 362,887 | 397,842 | |
Current service cost | 1,613 | 1,870 | 1,545 | |
Return on plan assets | (394,800) | (394,097) | (440,696) | |
(=) Net actuarial liability/(asset) amount | (343,286) | |||
Effect of the asset/onerous liability recognition ceiling | 343,286 | |||
Telemar Prev Plan [Member] | Present value of defined benefit obligation [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 4,165,284 | 3,825,053 | ||
Interest on actuarial liabilities | 362,886 | |||
Current service cost | 1,870 | |||
Benefits paid, net | (272,271) | |||
Benefit obligation result allocated to other comprehensive income | 247,746 | |||
Present value of actuarial obligation at the end of the year | 4,165,284 | 3,825,053 | ||
Payment of benefits | (272,271) | |||
(=) Net actuarial liability/(asset) amount | (320,171) | |||
Effect of the asset/onerous liability recognition ceiling | 320,171 | |||
Telemar Prev Plan [Member] | Plan assets [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 4,165,284 | |||
Interest on actuarial liabilities | 367,633 | |||
Current service cost | 1,613 | |||
Participant contributions made in the year | ||||
Benefits paid, net | (285,160) | (272,271) | ||
Benefit obligation result allocated to other comprehensive income | 729,147 | |||
Present value of actuarial obligation at the end of the year | 4,978,517 | 4,165,284 | ||
Fair value of assets at the beginning of the year | 4,508,570 | 4,142,553 | ||
Return on plan assets | 394,800 | 394,097 | ||
Participants | ||||
Payment of benefits | (285,160) | (272,271) | ||
Benefit obligation result allocated to other comprehensive income | 680,478 | 244,191 | ||
Fair value of plan assets at the end of the year | 5,298,688 | 4,508,570 | 4,142,553 | |
PBS-A Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Interest on actuarial liabilities | 415,476 | 439,285 | 499,261 | |
Return on plan assets | (649,891) | (713,295) | (781,757) | |
(=) Net actuarial liability/(asset) amount | (2,505,063) | |||
Effect of the asset/onerous liability recognition ceiling | 2,505,063 | |||
PBS-A Plan [Member] | Present value of defined benefit obligation [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 4,811,332 | 4,675,447 | ||
Interest on actuarial liabilities | 439,285 | |||
Benefits paid, net | (422,312) | |||
Benefit obligation result allocated to other comprehensive income | 118,912 | |||
Present value of actuarial obligation at the end of the year | 4,811,332 | 4,675,447 | ||
Payment of benefits | (422,312) | |||
(=) Net actuarial liability/(asset) amount | (2,625,977) | |||
Effect of the asset/onerous liability recognition ceiling | 2,625,977 | |||
PBS-A Plan [Member] | Plan assets [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 4,811,332 | |||
Interest on actuarial liabilities | 415,476 | |||
Participant contributions made in the year | ||||
Benefits paid, net | (429,813) | (422,312) | ||
Increase/(decrease) of assets due to changes in the Plan | 183,195 | |||
Benefit obligation result allocated to other comprehensive income | 660,695 | |||
Present value of actuarial obligation at the end of the year | 5,640,885 | 4,811,332 | ||
Fair value of assets at the beginning of the year | 7,316,395 | 7,462,931 | ||
Return on plan assets | 649,891 | 713,294 | ||
Participants | ||||
Payment of benefits | (429,813) | (422,312) | ||
Benefit obligation result allocated to other comprehensive income | 730,389 | (437,518) | ||
Fair value of plan assets at the end of the year | 8,266,862 | 7,316,395 | 7,462,931 | |
PBS-TNC Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Interest on actuarial liabilities | 3,066 | 3,027 | 3,328 | |
Current service cost | 82 | 55 | 48 | |
Return on plan assets | (5,255) | (5,759) | (6,343) | |
(=) Net actuarial liability/(asset) amount | (25,019) | |||
Effect of the asset/onerous liability recognition ceiling | 25,019 | |||
PBS-TNC Plan [Member] | Present value of defined benefit obligation [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 35,043 | 31,938 | ||
Interest on actuarial liabilities | 3,027 | |||
Current service cost | 55 | |||
Participant contributions made in the year | 1 | |||
Benefits paid, net | 2,527 | |||
Benefit obligation result allocated to other comprehensive income | (2,505) | |||
Present value of actuarial obligation at the end of the year | 35,043 | 31,938 | ||
Participants | 1 | |||
Payment of benefits | 2,527 | |||
(=) Net actuarial liability/(asset) amount | (24,122) | |||
Effect of the asset/onerous liability recognition ceiling | 20,858 | |||
(=) Recognized net actuarial liability/(asset)(1) | (3,264) | |||
PBS-TNC Plan [Member] | Plan assets [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 35,043 | |||
Interest on actuarial liabilities | 3,066 | |||
Current service cost | 82 | |||
Participant contributions made in the year | 1 | |||
Benefits paid, net | (2,460) | (2,505) | ||
Benefit obligation result allocated to other comprehensive income | 4,984 | |||
Present value of actuarial obligation at the end of the year | 40,715 | 35,043 | ||
Fair value of assets at the beginning of the year | 60,062 | 59,723 | ||
Return on plan assets | 5,255 | 5,759 | ||
Regular contributions received by plan | 3 | |||
Sponsor | 2 | |||
Participants | 1 | |||
Payment of benefits | (2,460) | (2,505) | ||
Benefit obligation result allocated to other comprehensive income | 1,980 | (2,918) | ||
Fair value of plan assets at the end of the year | 64,837 | 60,062 | 59,723 | |
CELPREV Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Interest on actuarial liabilities | 2 | 4 | 15 | |
Current service cost | 2 | 3 | 7 | |
Return on plan assets | (293) | (298) | (301) | |
(=) Net actuarial liability/(asset) amount | (3,314) | |||
Effect of the asset/onerous liability recognition ceiling | 3,115 | |||
(=) Recognized net actuarial liability/(asset)(1) | (199) | |||
CELPREV Plan [Member] | Present value of defined benefit obligation [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 26 | 41 | ||
Interest on actuarial liabilities | 4 | |||
Current service cost | 3 | |||
Benefit obligation result allocated to other comprehensive income | (22) | |||
Present value of actuarial obligation at the end of the year | 26 | 41 | ||
(=) Net actuarial liability/(asset) amount | (4,160) | |||
Effect of the asset/onerous liability recognition ceiling | 3,938 | |||
(=) Recognized net actuarial liability/(asset)(1) | (222) | |||
CELPREV Plan [Member] | Plan assets [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of actuarial obligation at beginning of year | 26 | |||
Interest on actuarial liabilities | 2 | |||
Current service cost | 2 | |||
Participant contributions made in the year | ||||
Benefit obligation result allocated to other comprehensive income | 1 | |||
Present value of actuarial obligation at the end of the year | 31 | 26 | ||
Fair value of assets at the beginning of the year | 3,340 | 3,030 | ||
Return on plan assets | 293 | 298 | ||
Regular contributions received by plan | 1 | |||
Participants | ||||
Benefit obligation result allocated to other comprehensive income | 558 | 11 | ||
Fair value of plan assets at the end of the year | R$ 4191 | R$ 3340 | R$ 3030 | |
[1] | Plan merged with into TCSPREV on November 30, 2018. |
Employee Benefits - Disclosur_4
Employee Benefits - Disclosure of detailed information about expenses related to defined benefit plans explanatory (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PAMEC Plan | |||
Disclosure of defined benefit plans [line items] | |||
Interest on actuarial liabilities | R$ 414 | R$ 317 | R$ 378 |
Return on plan assets | |||
Expenses (income) recognized in statement of profit or loss | 414 | 317 | 378 |
Expenses (income) recognized in other comprehensive income | 1,937 | 1,469 | (232) |
Total expense (income) recognized | 2,351 | 1,786 | 146 |
PAMA Plan [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 322 | 274 | 170,184 |
Interest on actuarial liabilities | 308,512 | 299,881 | 286,035 |
Return on plan assets | (312,146) | (312,593) | (331,699) |
Interest on onerous liability | 3,634 | 12,712 | 45,664 |
Effect of the unrecognized net actuarial asset | (274) | (170,184) | |
Expenses (income) recognized in statement of profit or loss | 322 | ||
Expenses (income) recognized in other comprehensive income | (322) | ||
Total expense (income) recognized | |||
BrTPREV Plans | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 74 | 102 | |
Interest on actuarial liabilities | 218,103 | 260,649 | |
Return on plan assets | (161,415) | (210,579) | |
Expenses (income) recognized in statement of profit or loss | 56,762 | 50,172 | |
Expenses (income) recognized in other comprehensive income | 24,364 | 78,147 | |
Total expense (income) recognized | 81,126 | 128,319 | |
TCSPREV Plan | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 250 | 196 | 457 |
Interest on actuarial liabilities | 283,541 | 78,222 | 64,927 |
Return on plan assets | (313,409) | (200,469) | (215,509) |
Interest on onerous liability | 24,000 | 112,564 | 136,800 |
Expenses (income) recognized in statement of profit or loss | (5,618) | (9,487) | (13,325) |
Expenses (income) recognized in other comprehensive income | 18,005 | 42,233 | 28,149 |
Total expense (income) recognized | 12,387 | 32,746 | 14,824 |
PBS Telemar Plan [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 34 | 41 | 33 |
Interest on actuarial liabilities | 28,419 | 29,114 | 32,488 |
Return on plan assets | (33,149) | (34,332) | (35,817) |
Interest on onerous liability | 4,725 | 5,214 | 3,317 |
Effect of the unrecognized net actuarial asset | (21) | ||
Expenses (income) recognized in statement of profit or loss | 29 | 37 | |
Expenses (income) recognized in other comprehensive income | 36 | 30 | |
Total expense (income) recognized | 65 | 67 | |
Telemar Prev Plan [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 1,613 | 1,870 | 1,545 |
Interest on actuarial liabilities | 367,633 | 362,887 | 397,842 |
Return on plan assets | (394,800) | (394,097) | (440,696) |
Interest on onerous liability | 27,167 | 31,210 | 42,854 |
Effect of the unrecognized net actuarial asset | (1,545) | ||
Expenses (income) recognized in statement of profit or loss | 1,613 | 1,870 | |
Expenses (income) recognized in other comprehensive income | (1,613) | (1,870) | |
Total expense (income) recognized | |||
PBS A Plan [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Interest on actuarial liabilities | 415,476 | 439,285 | 499,261 |
Return on plan assets | (649,891) | (713,295) | (781,757) |
Interest on onerous liability | 234,415 | 274,010 | 282,496 |
Expenses (income) recognized in statement of profit or loss | |||
Expenses (income) recognized in other comprehensive income | |||
Total expense (income) recognized | |||
PBS TNC Plan [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 82 | 55 | 48 |
Interest on actuarial liabilities | 3,066 | 3,027 | 3,328 |
Return on plan assets | (5,255) | (5,759) | (6,343) |
Interest on onerous liability | 2,065 | 2,731 | 3,014 |
Effect of the unrecognized net actuarial asset | (47) | ||
Expenses (income) recognized in statement of profit or loss | (42) | 54 | |
Expenses (income) recognized in other comprehensive income | (2,382) | (891) | |
Total expense (income) recognized | (2,424) | (837) | |
CELPREV Plan [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 2 | 3 | 7 |
Interest on actuarial liabilities | 2 | 4 | 15 |
Return on plan assets | (293) | (298) | (301) |
Interest on onerous liability | 273 | 294 | 286 |
Effect of the unrecognized net actuarial asset | R$ 7 | ||
Expenses (income) recognized in statement of profit or loss | (16) | 3 | |
Expenses (income) recognized in other comprehensive income | (7) | (201) | |
Total expense (income) recognized | R$ 23 | R$ 198 |
Employee Benefits - Disclosur_5
Employee Benefits - Disclosure of sensitivity analysis for actuarial assumptions (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
PAMEC Plan | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.64% |
Nominal medical costs growth rate | 7.64% |
PAMEC Plan | Actuarial assumption of expected rates of inflation [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
PAMEC Plan | Actuarial Assumption Of Expected Rate on Plan Assets [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.64% |
Nominal medical costs growth rate | 7.64% |
PAMEC Plan | Actuarial Assumption Of General Mortality Bio metric Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-2000 Basic eased by 15%, segregated by gender |
PAMEC Plan | Actuarial Assumption Of Bio metric Disability [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | Alvaro Vindas, increased by100% |
PAMEC Plan | Actuarial Assumption Of Bio metric Disabled Mortality [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-49, segregated by gender |
PAMEC Plan | Actuarial assumption of medical cost trend rates [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 6.91% |
Nominal medical costs growth rate | 6.91% |
PAMA Plan [Member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.64% |
Nominal medical costs growth rate | 7.64% |
PAMA Plan [Member] | Actuarial assumption of expected rates of inflation [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
PAMA Plan [Member] | Actuarial Assumption Of Expected Rate on Plan Assets [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.64% |
Nominal medical costs growth rate | 7.64% |
PAMA Plan [Member] | Actuarial Assumption Of General Mortality Bio metric Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-2000 Basic eased by 15%, segregated by gender |
PAMA Plan [Member] | Actuarial Assumption Of Bio metric Disability [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | Alvaro Vindas, increased by100% |
PAMA Plan [Member] | Actuarial Assumption Of Bio metric Disabled Mortality [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-49, segregated by gender |
PAMA Plan [Member] | Actuarial assumption of medical cost trend rates [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 6.91% |
Nominal medical costs growth rate | 6.91% |
TCSPREV Plan | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.43% |
Nominal medical costs growth rate | 7.43% |
TCSPREV Plan | Actuarial assumption of expected rates of inflation [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
TCSPREV Plan | Actuarial assumption of expected rates of salary increases [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 4.00% |
Nominal medical costs growth rate | 4.00% |
TCSPREV Plan | Actuarial Assumption Of Estimated Nominal Benefit Growth Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
TCSPREV Plan | Actuarial Assumption Of Expected Rate on Plan Assets [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.43% |
Nominal medical costs growth rate | 7.43% |
TCSPREV Plan | Actuarial Assumption Of General Mortality Bio metric Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-2000 Basic eased by 15%, segregated by gender |
TCSPREV Plan | Actuarial Assumption Of Bio metric Disability [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | Alvaro Vindas, increased by100% |
TCSPREV Plan | Actuarial Assumption Of Bio metric Disabled Mortality [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-49, segregated by gender |
TCSPREV Plan | Actuarial Assumption Of Turnover Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Turnover rate | 4.80% |
TCSPREV Plan | Actuarial Assumption Of Starting Age Of The Benefits [Member] | |
Disclosure of defined benefit plans [line items] | |
Starting age of the benefits | 57 years |
PBS Telemar Plan [Member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.43% |
Nominal medical costs growth rate | 7.43% |
PBS Telemar Plan [Member] | Actuarial assumption of expected rates of inflation [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
PBS Telemar Plan [Member] | Actuarial assumption of expected rates of salary increases [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 4.00% |
Nominal medical costs growth rate | 4.00% |
PBS Telemar Plan [Member] | Actuarial Assumption Of Estimated Nominal Benefit Growth Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
PBS Telemar Plan [Member] | Actuarial Assumption Of Expected Rate on Plan Assets [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.43% |
Nominal medical costs growth rate | 7.43% |
PBS Telemar Plan [Member] | Actuarial Assumption Of General Mortality Bio metric Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-2000 Basic eased by 15%, segregated by gender |
PBS Telemar Plan [Member] | Actuarial Assumption Of Bio metric Disability [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | Alvaro Vindas, increased by100% |
PBS Telemar Plan [Member] | Actuarial Assumption Of Bio metric Disabled Mortality [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-49, segregated by gender |
PBS Telemar Plan [Member] | Actuarial Assumption Of Starting Age Of The Benefits [Member] | |
Disclosure of defined benefit plans [line items] | |
Starting age of the benefits | 57 years |
Telemar Prev Plan [Member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.43% |
Nominal medical costs growth rate | 7.43% |
Telemar Prev Plan [Member] | Actuarial assumption of expected rates of inflation [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
Telemar Prev Plan [Member] | Actuarial Assumption Of Estimated Nominal Benefit Growth Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
Telemar Prev Plan [Member] | Actuarial Assumption Of Expected Rate on Plan Assets [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.43% |
Nominal medical costs growth rate | 7.43% |
Telemar Prev Plan [Member] | Actuarial Assumption Of General Mortality Bio metric Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-2000 Basic eased by 15%, segregated by gender |
Telemar Prev Plan [Member] | Actuarial Assumption Of Bio metric Disability [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | Alvaro Vindas, increased by100% |
Telemar Prev Plan [Member] | Actuarial Assumption Of Bio metric Disabled Mortality [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-49, segregated by gender |
Telemar Prev Plan [Member] | Actuarial Assumption Of Turnover Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Turnover rate | Per sponsor null starting at 50 years old and null for Settled Benefit |
Telemar Prev Plan [Member] | Actuarial Assumption Of Starting Age Of The Benefits [Member] | |
Disclosure of defined benefit plans [line items] | |
Starting age of the benefits | 55 years |
PBS A Plan [Member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.43% |
Nominal medical costs growth rate | 7.43% |
PBS A Plan [Member] | Actuarial assumption of expected rates of inflation [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
PBS A Plan [Member] | Actuarial Assumption Of Estimated Nominal Benefit Growth Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
PBS A Plan [Member] | Actuarial Assumption Of Expected Rate on Plan Assets [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.43% |
Nominal medical costs growth rate | 7.43% |
PBS A Plan [Member] | Actuarial Assumption Of General Mortality Bio metric Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-2000 Basic eased by 15%, segregated by gender |
PBS A Plan [Member] | Actuarial Assumption Of Bio metric Disability [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | Alvaro Vindas, increased by100% |
PBS A Plan [Member] | Actuarial Assumption Of Bio metric Disabled Mortality [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-49, segregated by gender |
PBS TNC Plan [Member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.43% |
Nominal medical costs growth rate | 7.43% |
PBS TNC Plan [Member] | Actuarial assumption of expected rates of inflation [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
PBS TNC Plan [Member] | Actuarial assumption of expected rates of salary increases [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 8.82% |
Nominal medical costs growth rate | 8.82% |
PBS TNC Plan [Member] | Actuarial Assumption Of Estimated Nominal Benefit Growth Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
PBS TNC Plan [Member] | Actuarial Assumption Of Expected Rate on Plan Assets [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.43% |
Nominal medical costs growth rate | 7.43% |
PBS TNC Plan [Member] | Actuarial Assumption Of General Mortality Bio metric Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-2000 Basic eased by 15%, segregated by gender |
PBS TNC Plan [Member] | Actuarial Assumption Of Bio metric Disability [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | Alvaro Vindas, increased by100% |
PBS TNC Plan [Member] | Actuarial Assumption Of Bio metric Disabled Mortality [Member] | |
Disclosure of defined benefit plans [line items] | |
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | AT-49, segregated by gender |
PBS TNC Plan [Member] | Actuarial Assumption Of Starting Age Of The Benefits [Member] | |
Disclosure of defined benefit plans [line items] | |
Starting age of the benefits | 57 years |
CELPREV Plan [Member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.43% |
Nominal medical costs growth rate | 7.43% |
CELPREV Plan [Member] | Actuarial assumption of expected rates of inflation [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
CELPREV Plan [Member] | Actuarial assumption of expected rates of salary increases [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.53% |
Nominal medical costs growth rate | 7.53% |
CELPREV Plan [Member] | Actuarial Assumption Of Estimated Nominal Benefit Growth Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 3.80% |
Nominal medical costs growth rate | 3.80% |
CELPREV Plan [Member] | Actuarial Assumption Of Expected Rate on Plan Assets [Member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial Assumptions Used In Measurement Of Defined Benefit Plan Assets Liability | 7.43% |
Nominal medical costs growth rate | 7.43% |
CELPREV Plan [Member] | Actuarial Assumption Of Turnover Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Turnover rate | 2% |
CELPREV Plan [Member] | Actuarial Assumption Of Starting Age Of The Benefits [Member] | |
Disclosure of defined benefit plans [line items] | |
Starting age of the benefits | 55 years |
Employee Benefits - Disclosur_6
Employee Benefits - Disclosure of detailed information about average ceilings for investments of pension funds explanatory (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
TCSPREV Plan | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets | 100.00% | 100.00% |
TCSPREV Plan | Fixed income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 100.00% | |
Allocation of plan assets | 86.06% | 86.17% |
TCSPREV Plan | Variable Income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 70.00% | |
Allocation of plan assets | 1.63% | 2.90% |
TCSPREV Plan | Structured Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 20.00% | |
Allocation of plan assets | 10.85% | 9.23% |
TCSPREV Plan | Investments Abroad [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 10.00% | |
Allocation of plan assets | 0.21% | 0.85% |
TCSPREV Plan | Real Estate Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 20.00% | |
Allocation of plan assets | 0.83% | 0.43% |
TCSPREV Plan | Loans to Participants [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 15.00% | |
Allocation of plan assets | 0.42% | 0.42% |
PBS Telemar Plan [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets | 100.00% | 100.00% |
PBS Telemar Plan [Member] | Fixed income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 100.00% | |
Allocation of plan assets | 90.57% | 90.49% |
PBS Telemar Plan [Member] | Variable Income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 70.00% | |
Allocation of plan assets | 0.34% | 1.30% |
PBS Telemar Plan [Member] | Structured Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 20.00% | |
Allocation of plan assets | 7.84% | 6.65% |
PBS Telemar Plan [Member] | Investments Abroad [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 10.00% | |
Allocation of plan assets | 0.00% | 0.92% |
PBS Telemar Plan [Member] | Real Estate Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 20.00% | |
Allocation of plan assets | 0.90% | 0.38% |
PBS Telemar Plan [Member] | Loans to Participants [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 15.00% | |
Allocation of plan assets | 0.35% | 0.26% |
Telemar Prev Plan [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets | 100.00% | 100.00% |
Telemar Prev Plan [Member] | Fixed income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 100.00% | |
Allocation of plan assets | 92.46% | 92.51% |
Telemar Prev Plan [Member] | Variable Income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 70.00% | |
Allocation of plan assets | 0.96% | 1.61% |
Telemar Prev Plan [Member] | Structured Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 20.00% | |
Allocation of plan assets | 5.04% | 4.21% |
Telemar Prev Plan [Member] | Investments Abroad [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 10.00% | |
Allocation of plan assets | 0.11% | 0.79% |
Telemar Prev Plan [Member] | Real Estate Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 20.00% | |
Allocation of plan assets | 0.76% | 0.67% |
Telemar Prev Plan [Member] | Loans to Participants [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 15.00% | |
Allocation of plan assets | 0.67% | 0.21% |
PBS A Plan [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets | 100.00% | 100.00% |
PBS A Plan [Member] | Fixed income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 100.00% | |
Allocation of plan assets | 95.10% | 93.70% |
PBS A Plan [Member] | Variable Income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 70.00% | |
Allocation of plan assets | 0.00% | 0.77% |
PBS A Plan [Member] | Structured Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 20.00% | |
Allocation of plan assets | 0.00% | 0.03% |
PBS A Plan [Member] | Investments Abroad [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 0.00% | |
Allocation of plan assets | 0.00% | |
PBS A Plan [Member] | Real Estate Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 20.00% | |
Allocation of plan assets | 4.10% | 4.67% |
PBS A Plan [Member] | Loans to Participants [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 3.00% | |
Allocation of plan assets | 0.80% | 0.83% |
PBS TNC Plan [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets | 100.00% | 100.00% |
PBS TNC Plan [Member] | Fixed income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 100.00% | |
Allocation of plan assets | 85.61% | 83.87% |
PBS TNC Plan [Member] | Variable Income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 70.00% | |
Allocation of plan assets | 0.48% | 2.51% |
PBS TNC Plan [Member] | Structured Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 20.00% | |
Allocation of plan assets | 13.71% | 12.84% |
PBS TNC Plan [Member] | Investments Abroad [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 10.00% | |
Allocation of plan assets | 0.00% | |
PBS TNC Plan [Member] | Real Estate Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 20.00% | |
Allocation of plan assets | 0.00% | 0.27% |
PBS TNC Plan [Member] | Loans to Participants [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 15.00% | |
Allocation of plan assets | 0.20% | 0.51% |
CELPREV Plan [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets | 100.00% | 100.00% |
CELPREV Plan [Member] | Fixed income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 100.00% | |
Allocation of plan assets | 88.20% | 88.80% |
CELPREV Plan [Member] | Variable Income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 70.00% | |
Allocation of plan assets | 3.17% | 4.00% |
CELPREV Plan [Member] | Structured Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 20.00% | |
Allocation of plan assets | 7.25% | 5.68% |
CELPREV Plan [Member] | Investments Abroad [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 10.00% | |
Allocation of plan assets | 0.50% | |
CELPREV Plan [Member] | Real Estate Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 20.00% | |
Allocation of plan assets | 0.00% | 1.15% |
CELPREV Plan [Member] | Loans to Participants [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 15.00% | |
Allocation of plan assets | 0.88% | 0.37% |
PAMA Plan [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets | 100.00% | 100.00% |
PAMA Plan [Member] | Fixed income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 100.00% | |
Allocation of plan assets | 100.00% | 100.00% |
PAMA Plan [Member] | Variable Income Investment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 0.00% | |
Allocation of plan assets | 0.00% | |
PAMA Plan [Member] | Structured Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 0.00% | |
Allocation of plan assets | 0.00% | |
PAMA Plan [Member] | Investments Abroad [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 0.00% | |
Allocation of plan assets | 0.00% | |
PAMA Plan [Member] | Real Estate Investments [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 0.00% | |
Allocation of plan assets | 0.00% | |
PAMA Plan [Member] | Loans to Participants [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Allocation of plan assets, average ceilings | 0.00% | |
Allocation of plan assets | 0.00% |
Employee Benefit - Disclosure o
Employee Benefit - Disclosure of indirect measurement of fair value of goods or services received (Details) R$ / shares in Units, R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$)sharesR$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Grant date | 12/30/2019 |
Stock dilution percentage | 0.57% |
Number of shares granted | shares | 33,704,937 |
Average share value at the grant date | R$ / shares | R$ 0.95 |
Estimated fair value at the vesting date | R$ | R$ 34406 |
Not later than one year [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting portions | 1/3 |
Vesting dates | Dec. 30, 2020 |
Later than one year and not later than two years [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting portions | 1/3 |
Vesting dates | Dec. 30, 2021 |
Later than two years and not later than three years [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting portions | 1/3 |
Vesting dates | Dec. 30, 2022 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) R$ in Thousands | Mar. 31, 2015yr | Oct. 31, 2015BRL (R$) | Dec. 31, 2019BRL (R$)yrAge | Dec. 31, 2018BRL (R$) |
Disclosure of defined benefit plans [line items] | ||||
provisions recognised | R$ 633012 | R$ 579122 | ||
Weighted average cost of capital | 10.98% | |||
Estimated period | 6 | 3 | ||
Opportunity cost | 14.67% | |||
Stock Action Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Maximum Percentage of shares that can be granted | 1.50% | |||
Share grants, expiration period | three-year | |||
PBS Telemar Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Percentage of salary contributed by participant exceeds half of one standard unit | 1.00% | |||
Percentage of salary contributed by participant exceeds one standard unit | 11.00% | |||
Equivalent salary contribution of payroll active participants | 8.00% | |||
PBS Telemar Plan [Member] | Bottom of range [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Percentage of salary contributed | 0.50% | |||
PBS Telemar Plan [Member] | Top of range [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Percentage of salary contributed | 1.50% | |||
Telemar Prev Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Percentage of salary contributed | 2.00% | |||
Percentage of positive difference of salary and social security contribution | 3.00% | |||
Additional contributions multiple. | 0.50% | |||
Minimum percentage of salary for additional contributions | 5.00% | |||
Percentage of parity | 8.00% | |||
TCSPREV Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Percentage of salary contributed | 3.00% | |||
Percentage of salary contributed by participant exceeds half of one standard unit | 2.00% | |||
Percentage of salary contributed by participant exceeds one standard unit | 6.30% | |||
Percentage of salary contributed mandatory | 22.00% | |||
Plan surplus | (68,934) | |||
TCSPREV Plan [Member] | Bottom of range [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Percentage of salary contributed mandatory | 3.00% | |||
TCSPREV Plan [Member] | Top of range [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Percentage of salary contributed mandatory | 8.00% | |||
PBS TNC Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Percentage of salary contributed by participant exceeds half of one standard unit | 0.57% | |||
Percentage of salary contributed by participant exceeds one standard unit | 6.25% | |||
PBS TNC Plan [Member] | Bottom of range [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Percentage of salary contributed | 0.28% | |||
PBS TNC Plan [Member] | Top of range [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Percentage of salary contributed | 0.85% | |||
CELPREV Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Additional contributions multiple. | 0.50% | |||
Percentage of salary contributed one | 0.00% | |||
Percentage of salary contributed two | 0.50% | |||
Percentage of salary contributed three | 1.00% | |||
Percentage of salary contributed four | 1.50% | |||
Percentage of salary contributed five | 2.00% | |||
Plan surplus | (199) | |||
CELPREV Plan [Member] | Bottom of range [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
percentage of salary for additional contributions | 0.00% | |||
Percentage of voluntry contribution on basic and additional contribution | 50.00% | |||
CELPREV Plan [Member] | Top of range [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
percentage of salary for additional contributions | 6.00% | |||
Percentage of voluntry contribution on basic and additional contribution | 150.00% | |||
PAMA Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Surplus transferred | R$ 3042000 | |||
Solvency Related To Company Sponsor | R$ 2127000 | |||
Employee Profit Sharing Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
provisions recognised | R$ 247178 | R$ 265753 | ||
PBSA Benefit Plan [Member] | National Pension Plan Authority [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Plan surplus | 669,054 | |||
PBSA Benefit Plan [Member] | Oi SAs [Member] | National Pension Plan Authority [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Plan surplus | R$ 140274 | |||
Participants Who Migrated From Pbs To Tcs [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Age of contributions cancellation | Age | 57 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Report Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Net operating revenue | R$ 20136183 | R$ 22060014 | R$ 23789654 |
Operating expenses | |||
Depreciation and amortization | 6,873,945 | 5,811,123 | 5,109,292 |
Grid maintenance services | 487,413 | 658,068 | 778,083 |
Handset and other costs | 170,860 | 196,347 | 223,335 |
Advertising and publicity | 497,278 | 382,091 | 413,580 |
Other operating income (expenses), net | (6,974) | (5,016,358) | (8,242,895) |
OPERATING INCOME (LOSS) BEFORE FINANCIAL INCOME (EXPENSES) AND TAXES | (2,977,370) | (5,268,258) | (2,361,028) |
FINANCIAL INCOME (EXPENSES) | |||
Financial income | 2,662,463 | 30,950,461 | 7,136,459 |
Financial expenses | (8,772,181) | (4,341,595) | (10,332,971) |
PRE-TAX PROFIT (LOSS) | (9,087,088) | 21,340,608 | (5,557,540) |
PROFIT (LOSS) FOR THE YEAR | (9,095,107) | 24,615,555 | (6,656,162) |
Reportable segments | |||
Disclosure of operating segments [line items] | |||
Net operating revenue | 19,949,394 | 21,859,853 | 23,556,940 |
Operating expenses | |||
Depreciation and amortization | (6,804,870) | (5,740,079) | (5,031,477) |
Interconnection | (484,061) | (653,867) | (771,212) |
Personnel | (2,487,632) | (2,554,375) | (2,749,038) |
Third-party services | (5,957,763) | (5,833,570) | (6,149,189) |
Grid maintenance services | (1,012,857) | (1,102,809) | (1,235,760) |
Handset and other costs | (159,442) | (185,436) | (214,102) |
Advertising and publicity | (494,348) | (379,676) | (410,495) |
Rentals and Insurance | (2,571,245) | (4,194,135) | (4,152,521) |
Provisions/reversals | (216,438) | (202,122) | (469,440) |
Expected losses on trade receivables | (488,269) | (689,735) | (740,576) |
Impairment losses | (2,111,022) | (291,758) | 4,747,141 |
Taxes and other expenses | (18,396) | (201,296) | (475,018) |
Other operating income (expenses), net | (6,974) | (5,016,358) | (8,196,415) |
OPERATING INCOME (LOSS) BEFORE FINANCIAL INCOME (EXPENSES) AND TAXES | (2,863,923) | (5,185,363) | (2,291,162) |
FINANCIAL INCOME (EXPENSES) | |||
Financial income | 2,659,074 | 30,850,746 | 6,917,975 |
Financial expenses | (8,452,638) | (4,339,053) | (9,246,160) |
PRE-TAX PROFIT (LOSS) | (8,657,487) | 21,326,330 | (4,619,347) |
Income tax and social contribution | 57,174 | 3,270,890 | (1,137,715) |
PROFIT (LOSS) FOR THE YEAR | (8,600,313) | 24,597,220 | (5,757,062) |
Residential services | Reportable segments | |||
Disclosure of operating segments [line items] | |||
Residential Fixed-Line | 3,281,905 | 4,170,105 | 4,880,738 |
Pay-TV Handsets, sim cards and other accessories | 1,752,053 | 1,755,061 | 1,577,745 |
Broadband | 2,187,015 | 2,423,291 | 2,641,836 |
Interconnection | 43,289 | 53,142 | 70,516 |
Net operating revenue | 7,264,262 | 8,401,599 | 9,170,835 |
Personal mobility services | Reportable segments | |||
Disclosure of operating segments [line items] | |||
Mobile Telephony | 6,601,729 | 6,607,613 | 6,914,862 |
Pay-TV Handsets, sim cards and other accessories | 158,483 | 194,869 | 229,547 |
Interconnection | 257,099 | 447,980 | 500,106 |
Net operating revenue | 7,017,311 | 7,250,462 | 7,644,515 |
SMEs/Corporate (B2B) services | Reportable segments | |||
Disclosure of operating segments [line items] | |||
Net operating revenue | 5,527,817 | 5,980,807 | 6,485,899 |
Other services and businesses | Reportable segments | |||
Disclosure of operating segments [line items] | |||
Net operating revenue | R$ 140004 | R$ 226985 | R$ 255691 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Revenue of the Segment and Total Consolidated Revenue Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue [abstract] | |||
Net operating revenue | R$ 20136183 | R$ 22060014 | R$ 23789654 |
Revenue related to the reportable segment | |||
Revenue [abstract] | |||
Net operating revenue | 19,949,394 | 21,859,853 | 23,556,940 |
Revenue related to other businesses | |||
Revenue [abstract] | |||
Net operating revenue | R$ 186789 | R$ 200161 | R$ 232714 |
Segment Reporting - Reconcili_2
Segment Reporting - Reconciliation Between the Profit (loss) Before Financial Income (expenses) and Taxes of the segment Telecommunications in Brazil and Consolidated Profit (loss) Before Financial Income (expenses) and Taxes Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Profit (loss) before financial income (expenses) and taxes | R$ 2977370 | R$ 5268258 | R$ 2361028 |
Telecommunications in Brazil | |||
Disclosure of operating segments [line items] | |||
Profit (loss) before financial income (expenses) and taxes | (2,863,923) | (5,185,363) | (2,291,162) |
Other businesses | |||
Disclosure of operating segments [line items] | |||
Profit (loss) before financial income (expenses) and taxes | R$ 113447 | R$ 82895 | R$ 69866 |
Segment Reporting - Total Asset
Segment Reporting - Total Assets, Liabilities and Property, Plant and Equipment and Intangible Assets per Geographic Market (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of operating segments [line items] | ||
Total assets | R$ 71891822 | R$ 65437797 |
Total liabilities | 54,095,316 | 42,541,986 |
Property,plant and equipment assets | 38,910,834 | 28,425,563 |
Intangible assets | 3,997,865 | 6,948,446 |
Brazil | ||
Disclosure of operating segments [line items] | ||
Total assets | 67,294,245 | 60,514,610 |
Total liabilities | 53,525,978 | 42,015,116 |
Property,plant and equipment assets | 38,910,834 | 28,425,563 |
Intangible assets | 3,997,865 | 6,948,446 |
Capital expenditure on plant property equipment and intangible assets | 7,396,983 | 5,211,774 |
Other Primarily Africa | ||
Disclosure of operating segments [line items] | ||
Total assets | 4,597,577 | 4,923,187 |
Total liabilities | 569,338 | 526,870 |
Property,plant and equipment assets | 84,122 | 108,768 |
Intangible assets | 21,327 | 47,601 |
Capital expenditure on plant property equipment and intangible assets | R$ 28530 | R$ 34467 |
Related- Party Transaction - Ad
Related- Party Transaction - Additional Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Officers | ||
Disclosure of transactions between related parties [line items] | ||
Compensation expense | R$ 63405 | R$ 81244 |
Related- Party Transaction - Di
Related- Party Transaction - Disclosure of transactions between related parties (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | ||
Accounts receivable and other assets | R$ 7216 | R$ 6359 |
Accounts payable and other liabilities | 74,254 | 74,210 |
Revenue | ||
Revenue from services rendered | 380 | 347 |
Other income | 502 | |
Financial Income | 430 | 430 |
Costs/expenses | ||
Operating costs and expenses | (226,031) | (236,087) |
Financial expenses | (257) | (167) |
Other entities | ||
Disclosure of transactions between related parties [line items] | ||
Accounts receivable and other assets | 6,790 | 6,359 |
Accounts payable and other liabilities | 2,413 | 7,506 |
Revenue | ||
Revenue from services rendered | 380 | 347 |
Financial Income | 430 | 430 |
Costs/expenses | ||
Operating costs and expenses | (22,605) | (28,816) |
Financial expenses | (12) | (9) |
Hispamar | ||
Disclosure of transactions between related parties [line items] | ||
Accounts receivable and other assets | 426 | |
Accounts payable and other liabilities | 71,841 | 66,704 |
Revenue | ||
Other income | 502 | |
Costs/expenses | ||
Operating costs and expenses | (203,426) | (207,271) |
Financial expenses | R$ 245 | R$ 158 |
Insuranse - Disclosure of types
Insuranse - Disclosure of types of insurance contracts (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operational risks and loss of profits | ||
Disclosure of types of insurance contracts [line items] | ||
Assets under insurance contracts and reinsurance contracts issued | R$ 800000 | R$ 700000 |
Civil liability - third parties | ||
Disclosure of types of insurance contracts [line items] | ||
Assets under insurance contracts and reinsurance contracts issued | 322,408 | 309,984 |
Fire - inventories | ||
Disclosure of types of insurance contracts [line items] | ||
Assets under insurance contracts and reinsurance contracts issued | 170,000 | 150,000 |
Theft - inventories | ||
Disclosure of types of insurance contracts [line items] | ||
Assets under insurance contracts and reinsurance contracts issued | 20,000 | 20,000 |
Civil liability - general | ||
Disclosure of types of insurance contracts [line items] | ||
Assets under insurance contracts and reinsurance contracts issued | 30,000 | 20,000 |
Civil liability - vehicles | ||
Disclosure of types of insurance contracts [line items] | ||
Assets under insurance contracts and reinsurance contracts issued | R$ 2000 | R$ 2000 |
Insuranse - Disclosure of typ_2
Insuranse - Disclosure of types of insurance contracts (Parenthetical) (Detail) | Dec. 31, 2019Creditors |
Disclosure of types of insurance contracts [abstract] | |
Foreign exchange rate | 4.0301 |
Held-For-Sale Assets - Held For
Held-For-Sale Assets - Held For Sale Assets And Liabilities Segment Wise Explanatory (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Held For Sale Assets [Line Items] | ||
Held-for-sale assets | R$ 4391090 | R$ 4923187 |
Held-for-sale Liabilities | 494,295 | 526,870 |
Operations in Africa [member] | ||
Held For Sale Assets [Line Items] | ||
Held-for-sale assets | 4,271,348 | 4,923,187 |
Held-for-sale Liabilities | 491,225 | R$ 526870 |
Nonstrategic assets [member] | ||
Held For Sale Assets [Line Items] | ||
Held-for-sale assets | 119,742 | |
Held-for-sale Liabilities | R$ 3070 |
Held-For-Sale Assets - Disclosu
Held-For-Sale Assets - Disclosure Of Detailed Information About Assets And Liabilities Held For Sale Explanatory (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | ||
Held For Sale Assets [Line Items] | ||||
Investments | R$ 183850 | R$ 201975 | ||
Property, plant and equipment | 38,910,834 | 28,425,563 | ||
Intangible assets | 3,997,865 | 6,948,446 | ||
Borrowings and financing | 17,900,361 | 15,777,012 | ||
Trade payables | 8,887,367 | 8,818,870 | ||
Non-controlling interests | 146,180 | 243,491 | ||
Assets and liabilities classified as held for sale | ||||
Held For Sale Assets [Line Items] | ||||
Held-for-sale assets | 4,271,348 | [1] | 4,923,187 | |
Cash, cash equivalents and cash investments | 63,993 | [1] | 82,639 | |
Accounts receivable | 113,699 | [1] | 108,343 | |
Dividends receivable | [2] | 2,435,014 | [1] | 2,566,935 |
Held-for-sale asset | [2] | 1,474,699 | [1] | 1,843,778 |
Other assets | 74,300 | [1] | 145,709 | |
Investments | 4,916 | [1] | 19,414 | |
Property, plant and equipment | 83,400 | [1] | 108,768 | |
Intangible assets | 21,327 | [1] | 47,601 | |
Liabilities directly associated to assets held for sale | 491,225 | [1] | 526,870 | |
Borrowings and financing | 11,589 | [1] | 188 | |
Trade payables | 37,119 | [1] | 52,064 | |
Other liabilities | 442,517 | [1] | 474,618 | |
Non-controlling interests | [3] | 146,180 | [1] | 243,491 |
Total held-for-sale assets, net of the corresponding liabilities | R$ 3633943 | [1] | R$ 4152826 | |
[1] | The non-operating companies started to consolidated in the balance sheet beginning December 31, 2019, whose assets and liabilities total R$326,229 and R$78,113, respectively (see Note 1 – Company subsidiaries). | |||
[2] | Represents the indirect interest held by PT Ventures in the dividends receivable and the fair value of the financial investment in Unitel, both classified as held for sale. The assets from the investment held in PT Ventures are measure substantially at the fair value of the investment for sale, which occurred on January 23, 2020, as referred to above, in Note 33; | |||
[3] | Represented mainly by the Samba Luxco’s 14% stake in Africatel and, consequently, in its net assets. |
Held-For-Sale Assets - Disclo_2
Held-For-Sale Assets - Disclosure Of Detailed Information About Assets And Liabilities Held For Sale Explanatory (Parenthetical) (Detail) R$ in Millions | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Held For Sale Assets [Line Items] | |
Assets, non-operating companies | R$ 326229 |
Liabilities, non-operating companies | R$ 78113 |
Samba Luxco | Africatel Holding B V | |
Held For Sale Assets [Line Items] | |
Percentage of ownership interest | 14.00% |
Held-For-Sale Assets - Addition
Held-For-Sale Assets - Additional Information (Detail) R$ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |
May 21, 2019BRL (R$) | Feb. 27, 2019USD ($) | Dec. 31, 2019 | |
PT Ventures, SGPS, S.A | Carbo Verde Telcom SA | National Social Security Institute and stateowned company ASA | Judicial Reorganisation | Classification of assets as held for sale | |||
Held For Sale Assets [Line Items] | |||
Investment percentage disposed off | 40.00% | ||
Proceeds from the sale of investments | R$ | R$ 26.3 | ||
Gain or loss on investment disposal | R$ | R$ 67.0 | ||
AfricatelHoldings BV | |||
Held For Sale Assets [Line Items] | |||
Voting interest divested | 75.00% | ||
Unitel | AfricatelHoldings BV | |||
Held For Sale Assets [Line Items] | |||
Voting interest divested | 25.00% | ||
Unitel | PT Ventures | |||
Held For Sale Assets [Line Items] | |||
Damages awarded | $ 339.4 | ||
Interest Rate Description | LIBOR plus two percentage points | ||
Actual Damages paid | $ 307 | ||
Interest rate | 7.00% | ||
Proceedings cost | $ 13 |
Other Information - Additional
Other Information - Additional information (Detail) R$ in Thousands | Mar. 31, 2015yr | Dec. 31, 2019BRL (R$)yrshares | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) |
Disclosure Of Call Options Status [Line Items] | ||||
Option life, share options granted | 6 | 3 | ||
Fair value of call options | R$ | R$ 17796506 | R$ 22895811 | R$ 13512523 | |
At fair value [member] | Call Options [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Fair value of call options | R$ | R$ 117000 | |||
Thirty First March Two Thousand And Sixteen To Thirty First December Two Thousand And Nineteen [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Percentage of shares no longer subject to call option | 10.00% | |||
Thirty First March Two Thousand And Seventeen To Thirty First December Two Thousand And Nineteen [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Percentage of shares no longer subject to call option | 18.00% | |||
Thirty First March Two Thousand And Eighteen To Thirty First December Two Thousand And Nineteen [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Percentage of shares no longer subject to call option | 18.00% | |||
Thirty First March Two Thousand And Nineteen To Thirty First December Two Thousand And Nineteen [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Percentage of shares no longer subject to call option | 18.00% | |||
Thirty First December Two Thousand And Twenty [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Percentage of shares no longer subject to call option | 18.00% | |||
Ordinary shares [member] | Thirty First March Two Thousand And Sixteen To Thirty First December Two Thousand And Nineteen [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Shares no longer subject to call option | 4,743,487 | |||
Ordinary shares [member] | Thirty First March Two Thousand And Seventeen To Thirty First December Two Thousand And Nineteen [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Shares no longer subject to call option | 8,538,277 | |||
Ordinary shares [member] | Thirty First March Two Thousand And Eighteen To Thirty First December Two Thousand And Nineteen [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Shares no longer subject to call option | 8,538,277 | |||
Ordinary shares [member] | Thirty First March Two Thousand And Nineteen To Thirty First December Two Thousand And Nineteen [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Shares no longer subject to call option | 8,538,277 | |||
Ordinary shares [member] | Thirty First December Two Thousand And Twenty [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Shares no longer subject to call option | 8,538,277 | |||
Ordinary shares [member] | Thirty First December Two Thousand And Twenty One [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Stock options not entitled to exercise | 8,538,277 | |||
Preference shares [member] | Thirty First March Two Thousand And Sixteen To Thirty First December Two Thousand And Nineteen [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Shares no longer subject to call option | 9,486,974 | |||
Preference shares [member] | Thirty First March Two Thousand And Seventeen To Thirty First December Two Thousand And Nineteen [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Shares no longer subject to call option | 17,076,554 | |||
Preference shares [member] | Thirty First March Two Thousand And Eighteen To Thirty First December Two Thousand And Nineteen [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Shares no longer subject to call option | 17,076,554 | |||
Preference shares [member] | Thirty First March Two Thousand And Nineteen To Thirty First December Two Thousand And Nineteen [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Shares no longer subject to call option | 17,076,554 | |||
Preference shares [member] | Thirty First December Two Thousand And Twenty [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Shares no longer subject to call option | 17,076,554 | |||
Preference shares [member] | Thirty First December Two Thousand And Twenty One [Member] | ||||
Disclosure Of Call Options Status [Line Items] | ||||
Preferred shares not entitled to exercise | 17,076,554 |
Events After The Reporting Pe_2
Events After The Reporting Period - Additional Information (Detail) - USD ($) $ in Millions | Feb. 21, 2020 | Jan. 24, 2020 | Feb. 29, 2020 |
Disclosure of non-adjusting events after reporting period [line items] | |||
Minimum monthly flow assured on sale of joint venture | $ 40 | ||
Non Adjusted Events [Member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Disposal consideration | $ 1,000 | ||
Cash received on disposal | 699.1 | ||
Consideration Received as Shares | 60.9 | ||
Consideration Received as Gurantee Letter | $ 240 | ||
Non Adjusted Events [Member] | Unitel [Member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Percentage of stake owned | 25.00% | ||
Non Adjusted Events [Member] | MultitelServicos de Telecomunicacoes Lda [Member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Percentage of stake owned | 40.00% | ||
Other disposals of assets [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Proceeds from sale of property | $ 120.5 |
Reconciliation Between U.S. G_3
Reconciliation Between U.S. Gaap And Ifrs - Schedule of liabilities subject to compromise (Detail) - U.S. GAAP - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of comparative information prepared under previous GAAP [line items] | ||
Borrowings and financing | R$ 0 | R$ 49129547 |
Derivative financial instrument | 0 | 104,694 |
Trade payables | 0 | 2,139,312 |
Provision for civil contingencies—Anatel | 0 | 9,333,795 |
Provision for pension plan | 0 | 560,046 |
Other | 0 | 43,333 |
Provision for labor contingencies | 0 | 899,226 |
Provision for civil—other claims | 0 | 2,929,275 |
Liabilities subject to compromise | R$ 0 | R$ 65139228 |
Reconciliation Between U.S. G_4
Reconciliation Between U.S. Gaap And Ifrs - Schedule of Reorganization Items (Detail) - U.S. GAAP - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of comparative information prepared under previous GAAP [line items] | ||
Gain on restructuring of Qualified Bonds | R$ 12881478 | |
Adjustment to fair value—Borrowings and financing | 13,928,661 | |
Adjustment to present value—Anatel (AGU) and other payables | 5,577,234 | |
Anatel provision for contingencies | R$ 1568798 | |
Other provision for contingencies | (347,437) | (1,146,458) |
Income from short-term investments | 174,281 | 713,276 |
Professional fees | (633,676) | (369,938) |
Total reorganization items, net | R$ 31580541 | R$ 2371918 |
Reconciliation Between U.S. G_5
Reconciliation Between U.S. Gaap And Ifrs - Schedule of movements in the restructured prepetition liabilities (Detail) - U.S. GAAP - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of comparative information prepared under previous GAAP [line items] | ||
Bondholders | R$ 0 | R$ 32314638 |
BNDES | 0 | 3,326,952 |
Other Borrowings and financing | 0 | 13,487,957 |
Derivative financial instrument | 0 | 104,694 |
Trade payables | 0 | 2,139,312 |
Provision for civil contingencies—Anatel | 0 | 9,333,795 |
Provision for pension plan | 0 | 560,046 |
Other | 0 | 43,333 |
Provision for labor contingencies | 0 | 899,226 |
Provision for civil—other claims | 0 | 2,929,275 |
Liabilities subject to compromise | 0 | 65,139,228 |
Bondholders | 6,712,695 | 0 |
BNDES – Borrowings and financing | 3,616,074 | 0 |
Other Borrowings and financing | 6,121,137 | 0 |
Anatel (AGU) and other trade payables | 3,794,610 | 0 |
Provision for labor, civil and Anatel contingencies | 4,388,637 | 0 |
Provision for pension plan | 574,725 | 0 |
Liabilities not subject to compromise | 25,207,878 | R$ 0 |
Reclassification [Member] | ||
Disclosure of comparative information prepared under previous GAAP [line items] | ||
Bondholders | (32,314,638) | |
BNDES | (3,326,952) | |
Other Borrowings and financing | (13,487,957) | |
Derivative financial instrument | (104,694) | |
Trade payables | (2,139,312) | |
Provision for civil contingencies—Anatel | (9,333,795) | |
Provision for pension plan | (560,046) | |
Other | (43,333) | |
Provision for labor contingencies | (1,036,172) | |
Provision for civil—other claims | (2,218,538) | |
Liabilities subject to compromise | (64,565,437) | |
Bondholders | 32,314,638 | |
BNDES – Borrowings and financing | 3,326,952 | |
Other Borrowings and financing | 13,592,651 | |
Anatel (AGU) and other trade payables | 10,588,661 | |
Provision for labor, civil and Anatel contingencies | 4,182,489 | |
Provision for pension plan | 560,046 | |
Liabilities not subject to compromise | 64,565,437 | |
Mediations And Other [Member] | ||
Disclosure of comparative information prepared under previous GAAP [line items] | ||
Bondholders | 0 | |
BNDES | 0 | |
Other Borrowings and financing | 0 | |
Derivative financial instrument | 0 | |
Trade payables | 0 | |
Provision for civil contingencies—Anatel | 0 | |
Provision for pension plan | 0 | |
Other | 0 | |
Provision for labor contingencies | 136,946 | |
Provision for civil—other claims | (710,737) | |
Liabilities subject to compromise | (573,791) | |
Bondholders | (161,600) | |
BNDES – Borrowings and financing | 0 | |
Other Borrowings and financing | 50,375 | |
Anatel (AGU) and other trade payables | 445,077 | |
Provision for labor, civil and Anatel contingencies | 56,975 | |
Provision for pension plan | 0 | |
Liabilities not subject to compromise | 390,827 | |
Haircut [Member] | ||
Disclosure of comparative information prepared under previous GAAP [line items] | ||
Bondholders | 0 | |
BNDES | 0 | |
Other Borrowings and financing | 0 | |
Derivative financial instrument | 0 | |
Trade payables | 0 | |
Provision for civil contingencies—Anatel | 0 | |
Provision for pension plan | 0 | |
Other | 0 | |
Provision for labor contingencies | 0 | |
Provision for civil—other claims | 0 | |
Liabilities subject to compromise | 0 | |
Bondholders | (11,054,800) | |
BNDES – Borrowings and financing | 0 | |
Other Borrowings and financing | 0 | |
Anatel (AGU) and other trade payables | (1,826,678) | |
Provision for labor, civil and Anatel contingencies | 0 | |
Provision for pension plan | 0 | |
Liabilities not subject to compromise | (12,881,478) | |
Equity [member] | ||
Disclosure of comparative information prepared under previous GAAP [line items] | ||
Bondholders | 0 | |
BNDES | 0 | |
Other Borrowings and financing | 0 | |
Derivative financial instrument | 0 | |
Trade payables | 0 | |
Provision for civil contingencies—Anatel | 0 | |
Provision for pension plan | 0 | |
Other | 0 | |
Provision for labor contingencies | 0 | |
Provision for civil—other claims | 0 | |
Liabilities subject to compromise | 0 | |
Bondholders | (11,613,980) | |
BNDES – Borrowings and financing | 0 | |
Other Borrowings and financing | 0 | |
Anatel (AGU) and other trade payables | 0 | |
Provision for labor, civil and Anatel contingencies | 0 | |
Provision for pension plan | 0 | |
Liabilities not subject to compromise | (11,613,980) | |
Fair Value [Member] | ||
Disclosure of comparative information prepared under previous GAAP [line items] | ||
Bondholders | 0 | |
BNDES | 0 | |
Other Borrowings and financing | 0 | |
Derivative financial instrument | 0 | |
Trade payables | 0 | |
Provision for civil contingencies—Anatel | 0 | |
Provision for pension plan | 0 | |
Other | 0 | |
Provision for labor contingencies | 0 | |
Provision for civil—other claims | 0 | |
Liabilities subject to compromise | 0 | |
Bondholders | (4,807,262) | |
BNDES – Borrowings and financing | 0 | |
Other Borrowings and financing | (9,121,399) | |
Anatel (AGU) and other trade payables | (5,577,234) | |
Provision for labor, civil and Anatel contingencies | 0 | |
Provision for pension plan | 0 | |
Liabilities not subject to compromise | (19,505,895) | |
Financial Charges [Member] | ||
Disclosure of comparative information prepared under previous GAAP [line items] | ||
Bondholders | 0 | |
BNDES | 0 | |
Other Borrowings and financing | 0 | |
Derivative financial instrument | 0 | |
Trade payables | 0 | |
Provision for civil contingencies—Anatel | 0 | |
Provision for pension plan | 0 | |
Other | 0 | |
Provision for labor contingencies | 0 | |
Provision for civil—other claims | 0 | |
Liabilities subject to compromise | 0 | |
Bondholders | 2,035,699 | |
BNDES – Borrowings and financing | 289,122 | |
Other Borrowings and financing | 1,599,510 | |
Anatel (AGU) and other trade payables | 164,784 | |
Provision for labor, civil and Anatel contingencies | 149,173 | |
Provision for pension plan | 14,679 | |
Liabilities not subject to compromise | R$ 4252967 |
Reconciliation Between U.S. G_6
Reconciliation Between U.S. Gaap And Ifrs - Schedule of movements in the restructured prepetition liabilities (Parenthetical) (Detail) | Dec. 31, 2019 |
Bottom of range | |
Disclosure of comparative information prepared under previous GAAP [line items] | |
Debt instrument discount rate | 12.60% |
Top of range | |
Disclosure of comparative information prepared under previous GAAP [line items] | |
Debt instrument discount rate | 16.40% |
Reconciliation Between U.S. G_7
Reconciliation Between U.S. Gaap And Ifrs - Schedule of judicial reorganization adjustments (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of comparative information prepared under previous GAAP [line items] | ||
Total | R$ 1331016 | R$ 6502746 |
U.S. GAAP | ||
Disclosure of comparative information prepared under previous GAAP [line items] | ||
Settlement for lesser amounts of prepetition obligations and fair value recognition under U.S. GAAP | (6,527,238) | 73,135 |
IFRS | ||
Disclosure of comparative information prepared under previous GAAP [line items] | ||
Gain on reversal of interest and foreign currency on loans and financings under IFRS | R$ 5196222 | R$ 6429611 |
Reconciliation Between U.S. G_8
Reconciliation Between U.S. Gaap And Ifrs - Schedule of quantify the effect of the U.S. GAAP to IFRS (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Equity | R$ 17796506 | R$ 22895811 | R$ 13512523 |
Net income (loss) for the year | (9,095,107) | 24,615,555 | (6,656,162) |
Deferred income tax | R$ 69041 | (3,159,241) | 192,542 |
Previous GAAP [member] | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Equity | 29,199,496 | (9,684,061) | |
Impairment of long-lived assets | 0 | ||
Net income (loss) for the year | 27,393,837 | (4,027,661) | |
As Per IFRS [Member] | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Equity | 22,895,811 | (13,512,522) | |
Impairment of long-lived assets | (1,226,125) | (1,084,707) | |
Business combinations prior to January 1, 2009 | 44,981 | 40,859 | |
Pension plans and other post-retirement benefits | (689,574) | (1,598,792) | |
Capitalization of interest, net of amortization | 60,928 | 62,711 | |
Provision for onerous contracts | (4,493,895) | ||
Settlement of judicial reorganization | 1,331,016 | ||
Deferred income tax | (2,579,548) | ||
Net income (loss) for the year | 24,615,555 | (6,656,162) | |
Impairment of long-lived assets | (141,418) | 5,526,563 | |
Business combinations prior to January 1, 2009 | 4,122 | 4,313 | |
Pension plans and other post-retirement benefits | (115,080) | (197,700) | |
Capitalization of interest, net of amortization | (1,780) | (9,322) | |
Provision for onerous contracts | (4,493,895) | ||
Settlement of judicial reorganization | (1,331,016) | (6,502,746) | |
Deferred income tax | R$ 3300785 | R$ 1449609 |
Reconciliation Between U.S. G_9
Reconciliation Between U.S. Gaap And Ifrs - Schedule of reconciliation of balance sheet (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Cash and cash equivalents | R$ 2081945 | R$ 4385329 | R$ 6862684 | R$ 7563252 |
Short-term investments | 183,850 | 201,975 | ||
Accounts receivable | 6,334,526 | 6,516,555 | ||
Recoverable income taxes | 542,726 | 621,246 | ||
Other taxes | 1,089,391 | 803,252 | ||
Judicial Deposits | 1,514,464 | 1,715,934 | ||
Inventories | 326,934 | 317,503 | ||
Prepaid expenses | 670,344 | 743,953 | ||
Pension plan assets | 5,430 | 4,880 | ||
Held-for-sale assets | 4,391,090 | 4,923,187 | ||
Other assets | 852,155 | 1,079,670 | ||
Total current assets | 17,993,281 | 21,313,484 | ||
Long-term investments | 33,942 | 36,987 | ||
Other taxes | 2,995,559 | 715,976 | ||
Deferred tax assets | 99,175 | 23,050 | ||
Judicial Deposits | 6,651,383 | 7,018,786 | ||
Investments | 133,765 | 117,840 | 136,510 | |
Property, plant and equipment, net | 38,910,834 | 28,425,563 | ||
Pension plan assets | 54,615 | 64,253 | ||
Prepaid expenses | 583,736 | 522,550 | ||
Other assets | 437,667 | 250,862 | ||
Trade payables | 4,794,309 | 5,024,260 | ||
Trade payables – Subject to the JRP | 3,293,427 | 3,593,008 | ||
Borrowings and financing | 326,388 | 672,894 | ||
Payroll, related taxes and benefits | 852,585 | 906,655 | ||
Income taxes payable | 66,654 | 27,026 | ||
Other taxes | 886,763 | 1,033,868 | ||
Tax financing program | 86,721 | 142,036 | ||
Dividends and interest on capital | 5,731 | 6,168 | ||
Provisions | 547,996 | 680,542 | ||
Licenses and concessions payable | 58,582 | 85,619 | ||
Liabilities associated to held-for-sale assets | 494,295 | 526,870 | ||
Other payables | 1,405,013 | 1,381,919 | ||
Total current liabilities | 11,835,917 | 10,689,459 | ||
Trade payables – Subject to the JRP | 799,631 | 201,602 | ||
Borrowings and financing | 17,900,361 | 15,777,012 | ||
Other taxes | 1,224,038 | 628,716 | ||
Tax financing program | 330,782 | 411,170 | ||
Provision | 4,703,684 | 4,358,178 | ||
Provision for pension plans | 633,012 | 579,122 | ||
Total non-current liabilities | 42,259,399 | 31,852,527 | ||
Shareholders' equity attributable to the Company and subsidiaries | 17,650,326 | 22,652,320 | ||
Non-controlling interest | 146,180 | 243,491 | ||
Total shareholders' equity | R$ 17796506 | 22,895,811 | (13,512,523) | |
U.S. GAAP | ||||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Cash and cash equivalents | 4,385,329 | 6,862,684 | 7,563,251 | |
Short-term investments | 201,975 | |||
Accounts receivable | 6,516,555 | |||
Recoverable income taxes | 621,246 | |||
Other taxes | 803,252 | |||
Judicial Deposits | 1,715,934 | |||
Inventories | 317,503 | |||
Prepaid expenses | 743,953 | |||
Pension plan assets | 4,880 | |||
Held-for-sale assets | 4,923,187 | |||
Other assets | 1,079,670 | |||
Total current assets | 21,313,484 | |||
Long-term investments | 36,987 | |||
Other taxes | 715,976 | |||
Deferred tax assets | 23,050 | |||
Judicial Deposits | 7,018,786 | |||
Investments | 117,840 | |||
Property, plant and equipment, net | 28,468,798 | |||
Intangible assets | 8,025,442 | |||
Pension plan assets | 753,827 | |||
Other assets | 773,411 | |||
Total non-current assets | 45,934,117 | |||
Total assets | 67,247,601 | |||
Trade payables | 5,225,862 | |||
Borrowings and financing | 672,894 | |||
Payroll, related taxes and benefits | 906,655 | |||
Income taxes payable | 27,026 | |||
Other taxes | 1,033,868 | |||
Tax financing program | 142,036 | |||
Dividends and interest on capital | 6,168 | |||
Provisions | 680,542 | |||
Unearned revenues | 229,497 | |||
Advances from customers | 73,094 | |||
Licenses and concessions payable | 85,619 | |||
Liabilities associated to held-for-sale assets | 526,870 | |||
Other payables | 629,939 | |||
Total current liabilities | 10,240,070 | |||
Trade payables – Subject to the JRP | 3,593,008 | |||
Borrowings and financing | 15,777,012 | |||
Other taxes | 628,716 | |||
Tax financing program | 411,170 | |||
Provision | 4,358,178 | |||
Provision for pension plans | 579,122 | |||
Unearned revenues | 1,687,073 | |||
Advances from customers | 142,134 | |||
Other payables | 631,622 | |||
Total non-current liabilities | 27,808,035 | |||
Total liabilities | 38,048,105 | |||
Shareholders' equity attributable to the Company and subsidiaries | 28,956,006 | |||
Non-controlling interest | 243,490 | |||
Total shareholders' equity | 29,199,496 | (9,684,061) | ||
Total liabilities and shareholders' equity | 67,247,601 | |||
Impairment of long-lived assets | ||||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Total current assets | 0 | |||
Property, plant and equipment, net | (228,244) | |||
Intangible assets | (997,881) | |||
Total non-current assets | (1,226,125) | |||
Total assets | (1,226,125) | |||
Total current liabilities | 0 | |||
Total non-current liabilities | 0 | |||
Total liabilities | 0 | |||
Shareholders' equity attributable to the Company and subsidiaries | (1,226,125) | |||
Total shareholders' equity | (1,226,125) | |||
Total liabilities and shareholders' equity | (1,226,125) | |||
Business combinations | ||||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Total current assets | 0 | |||
Property, plant and equipment, net | 124,081 | |||
Intangible assets | (79,115) | |||
Total non-current assets | 44,966 | |||
Total assets | 44,966 | |||
Total current liabilities | 0 | |||
Other payables | (13) | |||
Total non-current liabilities | 13 | |||
Total liabilities | (13) | |||
Shareholders' equity attributable to the Company and subsidiaries | 44,979 | |||
Total shareholders' equity | 44,979 | |||
Total liabilities and shareholders' equity | 44,966 | |||
Pension plans and other post- retirement benefits | ||||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Total current assets | 0 | |||
Pension plan assets | (689,574) | |||
Total non-current assets | (689,574) | |||
Total assets | (689,574) | |||
Total current liabilities | 0 | |||
Total non-current liabilities | 0 | |||
Total liabilities | 0 | |||
Shareholders' equity attributable to the Company and subsidiaries | (689,574) | |||
Total shareholders' equity | (689,574) | |||
Total liabilities and shareholders' equity | (689,574) | |||
Capitalization of interest, net of amortization | ||||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Total current assets | 0 | |||
Property, plant and equipment, net | 60,928 | |||
Total non-current assets | 60,928 | |||
Total assets | 60,928 | |||
Total current liabilities | 0 | |||
Total non-current liabilities | 0 | |||
Total liabilities | 0 | |||
Shareholders' equity attributable to the Company and subsidiaries | 60,928 | |||
Total shareholders' equity | 60,928 | |||
Total liabilities and shareholders' equity | 60,928 | |||
Provision for onerous contracts | ||||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Total current assets | 0 | |||
Total non-current assets | 0 | |||
Total assets | 0 | |||
Other payables | 449,389 | |||
Total current liabilities | 449,389 | |||
Other payables | 4,044,505 | |||
Total non-current liabilities | 4,044,505 | |||
Total liabilities | 4,493,894 | |||
Shareholders' equity attributable to the Company and subsidiaries | (4,493,894) | |||
Total shareholders' equity | (4,493,894) | |||
Total liabilities and shareholders' equity | 0 | |||
Deferred income tax | ||||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Total current assets | 0 | |||
Total non-current assets | 0 | |||
Total assets | 0 | |||
Total current liabilities | 0 | |||
Total non-current liabilities | 0 | |||
Total liabilities | 0 | |||
Shareholders' equity attributable to the Company and subsidiaries | 0 | |||
Total shareholders' equity | 0 | |||
Total liabilities and shareholders' equity | 0 | |||
Reclassifications | ||||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Prepaid expenses | 522,550 | |||
Other assets | (522,549) | |||
Total non-current assets | 1 | |||
Total assets | 1 | |||
Trade payables | (201,602) | |||
Trade payables – Subject to the JRP | 201,602 | |||
Unearned revenues | (229,497) | |||
Advances from customers | (73,094) | |||
Other payables | 302,591 | |||
Unearned revenues | (1,687,073) | |||
Advances from customers | (142,134) | |||
Other payables | 1,829,207 | |||
Non-controlling interest | 1 | |||
Total shareholders' equity | 1 | |||
Total liabilities and shareholders' equity | 1 | |||
IFRS | ||||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Cash and cash equivalents | 4,385,329 | 6,862,684 | R$ 7563252 | |
Short-term investments | 201,975 | |||
Accounts receivable | 6,516,555 | |||
Recoverable income taxes | 621,246 | |||
Other taxes | 803,252 | |||
Judicial Deposits | 1,715,934 | |||
Inventories | 317,503 | |||
Prepaid expenses | 743,953 | |||
Pension plan assets | 4,880 | |||
Held-for-sale assets | 4,923,187 | |||
Other assets | 1,079,670 | |||
Total current assets | 21,313,484 | |||
Long-term investments | 36,987 | |||
Other taxes | 715,976 | |||
Deferred tax assets | 23,050 | |||
Judicial Deposits | 7,018,786 | |||
Investments | 117,840 | |||
Property, plant and equipment, net | 28,425,563 | |||
Intangible assets | 6,948,446 | |||
Pension plan assets | 64,253 | |||
Prepaid expenses | 522,550 | |||
Other assets | 250,862 | |||
Total non-current assets | 44,124,313 | |||
Total assets | 65,437,797 | |||
Trade payables | 5,024,260 | |||
Trade payables – Subject to the JRP | 201,602 | |||
Borrowings and financing | 672,894 | |||
Payroll, related taxes and benefits | 906,655 | |||
Income taxes payable | 27,026 | |||
Other taxes | 1,033,868 | |||
Tax financing program | 142,036 | |||
Dividends and interest on capital | 6,168 | |||
Provisions | 680,542 | |||
Licenses and concessions payable | 85,619 | |||
Liabilities associated to held-for-sale assets | 526,870 | |||
Other payables | 1,381,919 | |||
Total current liabilities | 10,689,459 | |||
Trade payables – Subject to the JRP | 3,593,008 | |||
Borrowings and financing | 15,777,012 | |||
Other taxes | 628,716 | |||
Tax financing program | 411,170 | |||
Provision | 4,358,178 | |||
Provision for pension plans | 579,122 | |||
Other payables | 6,505,321 | |||
Total non-current liabilities | 31,852,527 | |||
Total liabilities | 42,541,986 | |||
Shareholders' equity attributable to the Company and subsidiaries | 22,652,320 | |||
Non-controlling interest | 243,491 | |||
Total shareholders' equity | 22,895,811 | R$ 13512522 | ||
Total liabilities and shareholders' equity | R$ 65437797 |
Reconciliation Between U.S. _10
Reconciliation Between U.S. Gaap And Ifrs - Schedule of reconciliation of net income (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Net operating revenue | R$ 20136183 | R$ 22060014 | R$ 23789654 |
Cost of sales and services | (15,314,814) | (16,179,100) | (15,668,653) |
Gross profit | 4,821,369 | 5,880,914 | 8,121,001 |
Operating (expenses) income | |||
Selling expenses | 3,547,684 | 3,853,002 | 4,102,556 |
General and administrative expenses | 2,782,300 | 2,738,718 | 3,136,808 |
Other operating expenses | (5,991,291) | ||
Income (loss) before financial income (expenses) and taxes | (2,977,370) | (5,268,258) | (2,361,028) |
Financial income (expenses), net | (6,109,718) | 26,608,866 | (3,196,512) |
Profit (loss) before taxes | (9,087,088) | 21,340,608 | (5,557,540) |
Current income tax | 77,060 | (115,706) | 906,080 |
Profit (loss) for the year | (9,095,107) | 24,615,555 | (6,656,162) |
Profit (loss) attributable to owners of the Company | (9,000,434) | 24,591,140 | (6,365,019) |
Profit (loss) attributable to non-controlling interests | R$ 94673 | 24,415 | (291,143) |
U.S. GAAP | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Net operating revenue | 22,060,014 | 23,789,654 | |
Cost of sales and services | (15,822,732) | (15,676,216) | |
Gross profit | 6,237,282 | 8,113,438 | |
Operating (expenses) income | |||
Selling expenses | (4,478,352) | (4,399,936) | |
General and administrative expenses | (2,697,865) | (3,064,252) | |
Other operating expenses | 417,159 | (1,043,922) | |
Reorganization items, net | 31,580,541 | (2,371,918) | |
Income (loss) before financial income (expenses) and taxes | 31,058,765 | (2,766,590) | |
Financial income (expenses), net | (4,012,067) | (1,612,058) | |
Profit (loss) before taxes | 27,046,698 | (4,378,648) | |
Income tax expense (current and deferred) | 347,139 | 350,987 | |
Profit (loss) for the year | 27,393,837 | (4,027,661) | |
Profit (loss) attributable to owners of the Company | 27,369,422 | (3,736,518) | |
Profit (loss) attributable to non-controlling interests | 24,415 | (291,143) | |
Impairment of long-lived assets | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Increase Decrease In Cost Of Sales | 150,389 | 779,368 | |
Gross profit | 150,389 | 779,368 | |
Operating (expenses) income | |||
Other operating expenses | (291,807) | 4,747,195 | |
Income (loss) before financial income (expenses) and taxes | (141,418) | 5,526,563 | |
Profit (loss) before taxes | (141,418) | 5,526,563 | |
Profit (loss) for the year | (141,418) | 5,526,563 | |
Profit (loss) attributable to owners of the Company | (141,418) | 5,526,563 | |
Business combinations | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Increase Decrease In Cost Of Sales | 4,121 | 4,313 | |
Gross profit | 4,121 | 4,313 | |
Operating (expenses) income | |||
Income (loss) before financial income (expenses) and taxes | 4,121 | 4,313 | |
Profit (loss) before taxes | 4,121 | 4,313 | |
Profit (loss) for the year | 4,121 | 4,313 | |
Profit (loss) attributable to owners of the Company | 4,121 | 4,313 | |
Pension plans and other post- retirement benefits | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Increase Decrease In Cost Of Sales | (45,457) | (82,045) | |
Gross profit | (45,457) | (82,045) | |
Operating (expenses) income | |||
Selling expenses | (28,655) | (42,901) | |
General and administrative expenses | (40,853) | (72,556) | |
Other operating expenses | (115) | (198) | |
Income (loss) before financial income (expenses) and taxes | (115,080) | (197,700) | |
Profit (loss) before taxes | (115,080) | (197,700) | |
Profit (loss) for the year | (115,080) | (197,700) | |
Profit (loss) attributable to owners of the Company | (115,080) | (197,700) | |
Capitalization of interest, net of amortization | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Increase Decrease In Cost Of Sales | (12,729) | (11,670) | |
Gross profit | (12,729) | (11,670) | |
Operating (expenses) income | |||
Income (loss) before financial income (expenses) and taxes | (12,729) | (11,670) | |
Financial income (expenses), net | 10,949 | 2,348 | |
Profit (loss) before taxes | (1,780) | (9,322) | |
Profit (loss) for the year | (1,780) | (9,322) | |
Profit (loss) attributable to owners of the Company | (1,780) | (9,322) | |
Provision for onerous contracts | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Increase Decrease In Cost Of Sales | 141,758 | ||
Gross profit | 141,758 | 0 | |
Operating (expenses) income | |||
Other operating expenses | (4,883,620) | ||
Income (loss) before financial income (expenses) and taxes | (4,741,862) | 0 | |
Financial income (expenses), net | 247,968 | ||
Profit (loss) before taxes | (4,493,894) | 0 | |
Profit (loss) for the year | (4,493,894) | 0 | |
Profit (loss) attributable to owners of the Company | (4,493,894) | 0 | |
Settlement of judicial reorganization | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Gross profit | 0 | 0 | |
Operating (expenses) income | |||
Other operating expenses | (112,491) | (7,287,862) | |
Reorganization items, net | (31,580,541) | 2,371,918 | |
Income (loss) before financial income (expenses) and taxes | (31,693,032) | (4,915,944) | |
Financial income (expenses), net | 30,362,016 | (1,586,802) | |
Profit (loss) before taxes | (1,331,016) | (6,502,746) | |
Profit (loss) for the year | (1,331,016) | (6,502,746) | |
Profit (loss) attributable to owners of the Company | (1,331,016) | (6,502,746) | |
Deferred income tax | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Gross profit | 0 | 0 | |
Operating (expenses) income | |||
Selling expenses | 372,977 | ||
Income (loss) before financial income (expenses) and taxes | 372,977 | 0 | |
Profit (loss) before taxes | 372,977 | 0 | |
Income tax expense (current and deferred) | 2,927,808 | (1,449,609) | |
Profit (loss) for the year | 3,300,785 | (1,449,609) | |
Profit (loss) attributable to owners of the Company | 3,300,785 | (1,449,609) | |
Reclassification | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Cost of sales and services | (594,450) | (682,403) | |
Gross profit | (594,450) | (682,403) | |
Operating (expenses) income | |||
Selling expenses | 281,028 | 340,281 | |
Other operating income | 2,204,134 | 1,985,101 | |
Other operating expenses | (1,890,712) | (1,642,979) | |
Current income tax | 115,706 | (906,080) | |
Income tax expense (current and deferred) | (115,706) | 906,080 | |
IFRS | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Net operating revenue | 22,060,014 | 23,789,654 | |
Cost of sales and services | (16,179,100) | (15,668,653) | |
Gross profit | 5,880,914 | 8,121,001 | |
Operating (expenses) income | |||
Selling expenses | (3,853,002) | (4,102,556) | |
General and administrative expenses | (2,738,718) | (3,136,808) | |
Other operating income | 2,204,134 | 1,985,101 | |
Other operating expenses | 6,761,586 | (5,227,766) | |
Reorganization items, net | 0 | ||
Income (loss) before financial income (expenses) and taxes | (5,268,258) | (2,361,028) | |
Financial income (expenses), net | 26,608,866 | (3,196,512) | |
Profit (loss) before taxes | 21,340,608 | (5,557,540) | |
Current income tax | 115,706 | (906,080) | |
Income tax expense (current and deferred) | 3,159,241 | (192,542) | |
Profit (loss) for the year | 24,615,555 | (6,656,162) | |
Profit (loss) attributable to owners of the Company | 24,591,140 | (6,365,019) | |
Profit (loss) attributable to non-controlling interests | R$ 24415 | R$ 291143 |
Reconciliation Between U.S. _11
Reconciliation Between U.S. Gaap And Ifrs - Schedule of reconciliation of comprehensive income (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Profit (loss) for the year | R$ 9095107 | R$ 24615555 | R$ 6656162 |
Income tax effect on other comprehensive income (loss): | |||
Total comprehensive income (loss) for the year | (9,122,426) | 24,575,097 | (6,472,510) |
Less comprehensive income (loss) attributable to non-controlling interest | (97,311) | (49,966) | (269,197) |
Net comprehensive income (loss) attributable to controlling shareholders | R$ 9025115 | 24,625,063 | (6,203,313) |
U.S. GAAP | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Profit (loss) for the year | 27,393,837 | (4,027,661) | |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | (110,098) | 165,713 | |
Decrease of interest shares in subsidiary | (374,130) | ||
Foreign currency translation adjustments, net | (110,098) | (208,417) | |
Pension and other postretirement benefit plans: | |||
Net actuarial loss from continuing operations | (918,782) | (130,846) | |
Pension and other postretirement benefit plans | (918,782) | (130,846) | |
Income tax effect on other comprehensive income (loss): | |||
Pension and other postretirement benefit plans | 312,386 | 32,157 | |
Income tax effect on other comprehensive income (loss) | 312,386 | 32,157 | |
Total comprehensive income (loss) for the year | 26,677,343 | (4,334,767) | |
Less comprehensive income (loss) attributable to non-controlling interest | (49,966) | (64,153) | |
Net comprehensive income (loss) attributable to controlling shareholders | 26,727,309 | (4,270,614) | |
Impairment of long-lived assets | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Profit (loss) for the year | (141,418) | 5,526,563 | |
Pension and other postretirement benefit plans: | |||
Pension and other postretirement benefit plans | 0 | 0 | |
Income tax effect on other comprehensive income (loss): | |||
Total comprehensive income (loss) for the year | (141,418) | 5,526,563 | |
Net comprehensive income (loss) attributable to controlling shareholders | (141,418) | 5,526,563 | |
Business combinations | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Profit (loss) for the year | 4,121 | 4,313 | |
Pension and other postretirement benefit plans: | |||
Pension and other postretirement benefit plans | 0 | 0 | |
Income tax effect on other comprehensive income (loss): | |||
Total comprehensive income (loss) for the year | 4,121 | 4,313 | |
Net comprehensive income (loss) attributable to controlling shareholders | 4,121 | 4,313 | |
Pension plans and other post- retirement benefits | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Profit (loss) for the year | (115,080) | (197,700) | |
Pension and other postretirement benefit plans: | |||
Net actuarial loss from continuing operations | 1,024,297 | 161,099 | |
Pension and other postretirement benefit plans | 1,024,297 | 161,099 | |
Income tax effect on other comprehensive income (loss): | |||
Pension and other postretirement benefit plans | (348,261) | (42,528) | |
Income tax effect on other comprehensive income (loss) | (348,261) | (42,528) | |
Total comprehensive income (loss) for the year | 560,956 | (79,129) | |
Net comprehensive income (loss) attributable to controlling shareholders | 560,956 | (79,129) | |
Capitalization of interest, net of amortization | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Profit (loss) for the year | (1,780) | (9,322) | |
Pension and other postretirement benefit plans: | |||
Pension and other postretirement benefit plans | 0 | 0 | |
Income tax effect on other comprehensive income (loss): | |||
Total comprehensive income (loss) for the year | (1,780) | (9,322) | |
Net comprehensive income (loss) attributable to controlling shareholders | (1,780) | (9,322) | |
Provision for onerous contracts | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Profit (loss) for the year | (4,493,894) | 0 | |
Pension and other postretirement benefit plans: | |||
Pension and other postretirement benefit plans | 0 | 0 | |
Income tax effect on other comprehensive income (loss): | |||
Income tax effect on other comprehensive income (loss) | 0 | ||
Total comprehensive income (loss) for the year | (4,493,894) | 0 | |
Net comprehensive income (loss) attributable to controlling shareholders | (4,493,894) | ||
Settlement of judicial reorganization | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Profit (loss) for the year | (1,331,016) | (6,502,746) | |
Pension and other postretirement benefit plans: | |||
Pension and other postretirement benefit plans | 0 | 0 | |
Income tax effect on other comprehensive income (loss): | |||
Total comprehensive income (loss) for the year | (1,331,016) | (6,502,746) | |
Net comprehensive income (loss) attributable to controlling shareholders | (1,331,016) | (6,502,746) | |
Deferred income tax | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Profit (loss) for the year | 3,300,785 | (1,449,609) | |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | (1,943) | ||
Decrease of interest shares in subsidiary | 374,130 | ||
Foreign currency translation adjustments, net | 372,187 | ||
Pension and other postretirement benefit plans: | |||
Pension and other postretirement benefit plans | 0 | 0 | |
Income tax effect on other comprehensive income (loss): | |||
Total comprehensive income (loss) for the year | 3,300,785 | (1,077,422) | |
Less comprehensive income (loss) attributable to non-controlling interest | (205,044) | ||
Net comprehensive income (loss) attributable to controlling shareholders | 3,300,785 | (872,378) | |
IFRS | |||
Disclosure of comparative information prepared under previous GAAP [line items] | |||
Profit (loss) for the year | 24,615,555 | (6,656,162) | |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | (110,098) | 163,770 | |
Decrease of interest shares in subsidiary | 0 | ||
Foreign currency translation adjustments, net | (110,098) | 163,770 | |
Pension and other postretirement benefit plans: | |||
Net actuarial loss from continuing operations | 105,515 | 30,253 | |
Pension and other postretirement benefit plans | 105,515 | 30,253 | |
Income tax effect on other comprehensive income (loss): | |||
Pension and other postretirement benefit plans | (35,875) | (10,371) | |
Income tax effect on other comprehensive income (loss) | (35,875) | (10,371) | |
Total comprehensive income (loss) for the year | 24,575,097 | (6,472,510) | |
Less comprehensive income (loss) attributable to non-controlling interest | (49,966) | (269,197) | |
Net comprehensive income (loss) attributable to controlling shareholders | R$ 24625063 | R$ 6203313 |
Reconciliation Between U.S. _12
Reconciliation Between U.S. Gaap And Ifrs - Schedule of reconciliation of cash flow (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Profit (loss) for the year | R$ 9095107 | R$ 24615555 | R$ 6656162 |
Income tax expenses | 8,019 | (3,274,947) | 1,098,622 |
Profit (loss) before income taxes | (9,087,088) | 21,340,608 | (5,557,540) |
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||
Gains of restructuring of third-party borrowings | (11,054,800) | ||
Present value adjustment to other liabilities | 59,214 | (1,167,043) | (4,873,000) |
Depreciation and amortization | 6,873,945 | 5,811,123 | 5,109,292 |
Onerous obligation | 1,230,820 | 4,883,620 | |
Impairment losses (reversal) | 2,111,022 | 291,758 | (4,747,141) |
Equity in investees | (5,174) | (13,492) | (433) |
Loss on disposal of capital assets | (235,535) | (215,398) | (211,735) |
Concession Agreement Extension Fee—ANATEL | 359,465 | 68,333 | 88,658 |
Employee and management profit sharing | 260,207 | 237,253 | 298,789 |
Other | (538,974) | (637,251) | 450,281 |
Changes in assets and liabilities | |||
Accounts receivable | (306,240) | (365,771) | (253,469) |
Inventories | (21,113) | (48,280) | 173,283 |
Taxes | 1,322,267 | 121,951 | 477,164 |
Trade payables | (678,046) | (860,900) | (374,003) |
Payroll, related taxes and benefits | (313,169) | (253,902) | (42,727) |
Changes in assets and liabilities held for sale | (29,829) | (257,643) | 701,416 |
Financial charges paid - debt | 926,910 | 19,215 | 1,412 |
Financial charges paid - other | (352) | (2,884) | (2,515) |
Income tax and social contribution paid—Company | (85,680) | (495,038) | (314,162) |
Income tax and social contribution paid—third parties | (159,966) | (188,445) | (192,736) |
Net cash generated by operating activities | 2,311,638 | 2,862,536 | 4,401,758 |
Investing activities | |||
Net cash used in investing activities | (6,850,678) | (4,916,875) | (4,421,656) |
Financing activities | |||
Repayment of principal of borrowings, financing and derivatives | (935,243) | ||
Payments of obligation for licenses and concessions | 1,491 | 104,449 | |
Payments of obligation for tax refinancing program | 151,862 | 265,495 | 226,776 |
Share buyback | (2,572) | (300,429) | |
Net cash used in financing activities | 2,235,656 | (424,344) | (691,775) |
Foreign exchange differences on cash and cash equivalents | 1,328 | 11,105 | |
Cash flows for the year | (2,303,384) | (2,477,355) | (700,568) |
Opening balance | 4,385,329 | 6,862,684 | 7,563,252 |
Closing balance | 2,081,945 | 4,385,329 | 6,862,684 |
U.S. GAAP | |||
Operating activities | |||
Profit (loss) for the year | 27,393,837 | (4,027,661) | |
Income tax expenses | (347,139) | (350,987) | |
Profit (loss) before income taxes | 27,046,698 | (4,378,648) | |
Income tax reclassification | 347,139 | 350,987 | |
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||
Loss (gain) on financial instruments | 3,415,354 | (1,115,823) | |
Gains of restructuring of third-party borrowings | 0 | ||
Fair value adjustment to borrowings and financing | 0 | ||
Present value adjustment to other liabilities | 0 | ||
Depreciation and amortization | 5,952,905 | 5,881,302 | |
Impairment of held-for-sale securities | (292,799) | 267,008 | |
Estimated loss on doubtful debts | 1,224,248 | 784,403 | |
Provisions (reversals) | (19,465) | 143,517 | |
Provision for pension plans | (114,813) | (197,141) | |
Impairment losses (reversal) | 0 | 46,534 | |
Deferred tax expense (benefit) | (231,433) | (1,257,068) | |
Reorganization items, net | (31,580,541) | 2,371,918 | |
Changes in assets and liabilities | |||
Accounts receivable | (365,771) | (253,469) | |
Taxes | 121,951 | 477,164 | |
Held-for-trading financial assets | (1,191,664) | (601,200) | |
Redemption of held-for-trading financial assets | 1,103,920 | 775,456 | |
Trade payables | (860,900) | (374,003) | |
Payroll, related taxes and benefits | (253,902) | (42,727) | |
Provision for contingencies | (434,974) | (114,336) | |
Net increase in income taxes refundable and payable | (799,189) | 399,182 | |
Pension plans | 54 | ||
Employee and management profit sharing | 237,253 | 298,789 | |
Changes in assets and liabilities held for sale | (257,643) | 701,416 | |
Other assets and liabilities | (183,838) | 238,443 | |
Net cash generated by operating activities | 2,862,536 | 4,401,758 | |
Investing activities | |||
Capital expenditures | (5,246,241) | (4,344,238) | |
Proceeds from the sale of investments, tangibles and intangibles | 22,276 | 5,016 | |
Judicial deposits | (775,953) | (425,563) | |
Redemption of judicial deposits | 1,083,043 | 343,129 | |
Net cash used in investing activities | (4,916,875) | (4,421,656) | |
Financing activities | |||
Repayment of principal of borrowings, financing and derivatives | (161,884) | (659) | |
Payments of obligation for licenses and concessions | (1,491) | (104,449) | |
Payments of obligation for tax refinancing program | (265,495) | (226,776) | |
Share buyback | (300,429) | ||
Payment of dividends and interest on capital | (54) | (59,462) | |
Exercise of warrants | 4,580 | ||
Net cash used in financing activities | (424,344) | (691,775) | |
Foreign exchange differences on cash and cash equivalents | 1,328 | 11,106 | |
Cash flows for the year | (2,477,355) | (700,568) | |
Opening balance | 4,385,329 | 6,862,684 | 7,563,251 |
Closing balance | 4,385,329 | 6,862,684 | |
Impairment of long-lived assets | |||
Operating activities | |||
Profit (loss) for the year | (141,418) | 5,526,563 | |
Income tax expenses | 0 | 0 | |
Profit (loss) before income taxes | (141,418) | 5,526,563 | |
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||
Depreciation and amortization | (150,389) | (779,368) | |
Impairment losses (reversal) | 291,807 | (4,747,195) | |
Changes in assets and liabilities | |||
Net cash generated by operating activities | 0 | 0 | |
Investing activities | |||
Net cash used in investing activities | 0 | 0 | |
Financing activities | |||
Net cash used in financing activities | 0 | 0 | |
Cash flows for the year | 0 | ||
Opening balance | 0 | 0 | |
Closing balance | 0 | 0 | |
Business combinations | |||
Operating activities | |||
Profit (loss) for the year | 4,121 | 4,313 | |
Income tax expenses | 0 | 0 | |
Profit (loss) before income taxes | 4,121 | 4,313 | |
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||
Depreciation and amortization | (4,121) | (4,313) | |
Changes in assets and liabilities | |||
Net cash generated by operating activities | 0 | 0 | |
Investing activities | |||
Net cash used in investing activities | 0 | 0 | |
Financing activities | |||
Net cash used in financing activities | 0 | 0 | |
Cash flows for the year | 0 | ||
Opening balance | 0 | 0 | |
Closing balance | 0 | 0 | |
Pension plans and other post- retirement benefits | |||
Operating activities | |||
Profit (loss) for the year | (115,080) | (197,700) | |
Income tax expenses | 0 | 0 | |
Profit (loss) before income taxes | (115,080) | (197,700) | |
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||
Provision for pension plans | 115,080 | 197,700 | |
Changes in assets and liabilities | |||
Net cash generated by operating activities | 0 | 0 | |
Investing activities | |||
Net cash used in investing activities | 0 | 0 | |
Financing activities | |||
Net cash used in financing activities | 0 | 0 | |
Cash flows for the year | 0 | ||
Opening balance | 0 | 0 | |
Closing balance | 0 | 0 | |
Capitalization of interest, net of amortization | |||
Operating activities | |||
Profit (loss) for the year | (1,780) | (9,322) | |
Income tax expenses | 0 | 0 | |
Profit (loss) before income taxes | (1,780) | (9,322) | |
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||
Loss (gain) on financial instruments | (10,949) | (2,348) | |
Depreciation and amortization | 12,729 | 11,670 | |
Changes in assets and liabilities | |||
Net cash generated by operating activities | 0 | 0 | |
Investing activities | |||
Net cash used in investing activities | 0 | 0 | |
Financing activities | |||
Net cash used in financing activities | 0 | 0 | |
Cash flows for the year | 0 | ||
Opening balance | 0 | 0 | |
Closing balance | 0 | 0 | |
Provision for onerous contracts | |||
Operating activities | |||
Profit (loss) for the year | (4,493,894) | 0 | |
Income tax expenses | 0 | 0 | |
Profit (loss) before income taxes | (4,493,894) | 0 | |
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||
Loss (gain) on financial instruments | (389,726) | ||
Onerous obligation | 4,883,620 | ||
Changes in assets and liabilities | |||
Net cash generated by operating activities | 0 | 0 | |
Investing activities | |||
Net cash used in investing activities | 0 | 0 | |
Financing activities | |||
Net cash used in financing activities | 0 | 0 | |
Cash flows for the year | 0 | ||
Opening balance | 0 | 0 | |
Closing balance | 0 | 0 | |
Settlement of judicial reorganization | |||
Operating activities | |||
Profit (loss) for the year | (1,331,016) | (6,502,746) | |
Income tax expenses | 0 | 0 | |
Profit (loss) before income taxes | (1,331,016) | (6,502,746) | |
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||
Loss (gain) on financial instruments | (5,080,135) | 6,234,447 | |
Gains of restructuring of third-party borrowings | (11,054,800) | ||
Fair value adjustment to borrowings and financing | (13,928,659) | ||
Present value adjustment to other liabilities | (1,167,043) | (4,873,000) | |
Provisions (reversals) | 112,491 | 7,218,787 | |
Reorganization items, net | 31,580,541 | (2,371,918) | |
Changes in assets and liabilities | |||
Provision for contingencies | (312,313) | ||
Other assets and liabilities | 868,621 | 606,743 | |
Net cash generated by operating activities | 0 | 0 | |
Investing activities | |||
Net cash used in investing activities | 0 | 0 | |
Financing activities | |||
Net cash used in financing activities | 0 | 0 | |
Cash flows for the year | 0 | ||
Opening balance | 0 | 0 | |
Closing balance | 0 | 0 | |
Deferred income tax and other adjustments | |||
Operating activities | |||
Profit (loss) for the year | 3,300,785 | (1,449,609) | |
Income tax expenses | (2,927,808) | 1,449,609 | |
Profit (loss) before income taxes | 372,977 | 0 | |
Income tax reclassification | (347,139) | (350,987) | |
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||
Estimated loss on doubtful debts | (372,977) | ||
Deferred tax expense (benefit) | 231,433 | 1,257,068 | |
Changes in assets and liabilities | |||
Net increase in income taxes refundable and payable | 115,706 | (906,081) | |
Net cash generated by operating activities | 0 | 0 | |
Investing activities | |||
Net cash used in investing activities | 0 | 0 | |
Financing activities | |||
Net cash used in financing activities | 0 | 0 | |
Cash flows for the year | 0 | ||
Opening balance | 0 | 0 | |
Closing balance | 0 | 0 | |
Reclassification [Member] | |||
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||
Loss (gain) on financial instruments | 22,099 | 3,927 | |
Depreciation and amortization | (1) | 1 | |
Impairment of held-for-sale securities | 292,799 | (267,008) | |
Impairment losses (reversal) | (49) | (46,480) | |
Equity in investees | 13,492 | 433 | |
Loss on disposal of capital assets | 215,398 | 211,735 | |
Concession Agreement Extension Fee—ANATEL | 68,333 | 88,658 | |
Employee and management profit sharing | 237,253 | 298,789 | |
Monetary correction to provisions/(reversals) | 226,870 | 674,668 | |
Monetary correction to tax refinancing program | 28,079 | 27,294 | |
Other | (637,518) | 449,722 | |
Changes in assets and liabilities | |||
Inventories | (48,280) | 173,283 | |
Net increase in income taxes refundable and payable | 683,483 | 506,899 | |
Pension plans | (54) | ||
Employee and management profit sharing | (237,253) | (298,789) | |
Other assets and liabilities | (159,123) | (1,312,253) | |
Financial charges paid - debt | (19,215) | (1,412) | |
Financial charges paid - other | (2,884) | (2,515) | |
Income tax and social contribution paid—Company | (495,038) | (314,162) | |
Income tax and social contribution paid—third parties | (188,445) | (192,736) | |
Net cash generated by operating activities | 0 | 0 | |
Investing activities | |||
Net cash used in investing activities | 0 | 0 | |
Financing activities | |||
Net cash used in financing activities | 0 | 0 | |
Foreign exchange differences on cash and cash equivalents | (1) | ||
Cash flows for the year | (1) | ||
Opening balance | 0 | 0 | 1 |
Closing balance | 0 | 0 | |
IFRS | |||
Operating activities | |||
Profit (loss) for the year | 24,615,555 | (6,656,162) | |
Income tax expenses | (3,274,947) | 1,098,622 | |
Profit (loss) before income taxes | 21,340,608 | (5,557,540) | |
Income tax reclassification | 0 | 0 | |
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||
Loss (gain) on financial instruments | (2,043,357) | 5,120,203 | |
Gains of restructuring of third-party borrowings | (11,054,800) | ||
Fair value adjustment to borrowings and financing | (13,928,659) | ||
Present value adjustment to other liabilities | (1,167,043) | (4,873,000) | |
Depreciation and amortization | 5,811,123 | 5,109,292 | |
Onerous obligation | 4,883,620 | ||
Impairment of held-for-sale securities | 0 | ||
Estimated loss on doubtful debts | 851,271 | 784,403 | |
Provisions (reversals) | 93,026 | 7,362,304 | |
Provision for pension plans | 267 | 559 | |
Impairment losses (reversal) | 291,758 | (4,747,141) | |
Deferred tax expense (benefit) | 0 | 0 | |
Reorganization items, net | 0 | ||
Equity in investees | 13,492 | 433 | |
Loss on disposal of capital assets | 215,398 | 211,735 | |
Concession Agreement Extension Fee—ANATEL | 68,333 | 88,658 | |
Employee and management profit sharing | 237,253 | 298,789 | |
Monetary correction to provisions/(reversals) | 226,870 | 674,668 | |
Monetary correction to tax refinancing program | 28,079 | 27,294 | |
Other | (637,518) | 449,722 | |
Changes in assets and liabilities | |||
Accounts receivable | (365,771) | (253,469) | |
Inventories | (48,280) | 173,283 | |
Taxes | 121,951 | 477,164 | |
Held-for-trading financial assets | (1,191,664) | (601,200) | |
Redemption of held-for-trading financial assets | 1,103,920 | 775,456 | |
Trade payables | (860,900) | (374,003) | |
Payroll, related taxes and benefits | (253,902) | (42,727) | |
Provision for contingencies | (434,974) | (426,649) | |
Net increase in income taxes refundable and payable | 0 | ||
Pension plans | 0 | ||
Employee and management profit sharing | 0 | ||
Changes in assets and liabilities held for sale | (257,643) | 701,416 | |
Other assets and liabilities | 525,660 | (467,067) | |
Financial charges paid - debt | (19,215) | (1,412) | |
Financial charges paid - other | (2,884) | (2,515) | |
Income tax and social contribution paid—Company | (495,038) | (314,162) | |
Income tax and social contribution paid—third parties | (188,445) | (192,736) | |
Net cash generated by operating activities | 2,862,536 | 4,401,758 | |
Investing activities | |||
Capital expenditures | (5,246,241) | (4,344,238) | |
Proceeds from the sale of investments, tangibles and intangibles | 22,276 | 5,016 | |
Judicial deposits | (775,953) | (425,563) | |
Redemption of judicial deposits | 1,083,043 | 343,129 | |
Net cash used in investing activities | (4,916,875) | (4,421,656) | |
Financing activities | |||
Repayment of principal of borrowings, financing and derivatives | (161,884) | (659) | |
Payments of obligation for licenses and concessions | (1,491) | (104,449) | |
Payments of obligation for tax refinancing program | (265,495) | (226,776) | |
Share buyback | (300,429) | ||
Payment of dividends and interest on capital | (54) | (59,462) | |
Exercise of warrants | 4,580 | ||
Net cash used in financing activities | (424,344) | (691,775) | |
Foreign exchange differences on cash and cash equivalents | 1,328 | 11,105 | |
Cash flows for the year | (2,477,355) | (700,568) | |
Opening balance | R$ 4385329 | 6,862,684 | 7,563,252 |
Closing balance | R$ 4385329 | R$ 6862684 |
Reconciliation Between U.S. _13
Reconciliation Between U.S. Gaap And Ifrs - Additional information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Depreciation and amortization | R$ 6873945 | R$ 5811123 | R$ 5109292 | |
Corridor approach percent | 10.00% | |||
Provision for lossses pursuant to onerous obligation | [1] | R$ 5817130 | 4,493,894 | |
Profit (loss) | R$ 9095107 | 24,615,555 | (6,656,162) | |
U.S. GAAP | ||||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Allowances for impairment | 0 | |||
Profit (loss) | 27,393,837 | (4,027,661) | ||
IFRS | ||||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Allowances for impairment | 1,226,125 | 1,084,707 | ||
Provision for impairment losses | 291,807 | |||
Depreciation and amortization | 150,389 | |||
Profit (loss) | 24,615,555 | R$ 6656162 | ||
IFRS | Telecommunication Signal Transmission Capacity Agreement | ||||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Provision for lossses pursuant to onerous obligation | 4,493,894 | |||
Effect of transition to IFRSs | ||||
Disclosure of comparative information prepared under previous GAAP [line items] | ||||
Profit (loss) | R$ 141418 | |||
[1] | The Company and its subsidiaries are parties to a telecommunications signals transmission capacity supply agreement using submarine cables that connect North America and South America, and also hires the supply of capacity of the space segment for the provision of the DTH TV service. Since (a) the agreement obligations exceed the economic benefits that are expected to be received throughout the agreement; and (b) the costs are unavoidable, the Company and its subsidiaries recognized, pursuant to IAS 37, an onerous obligation measured at the lowest of net output cost of the agreement brought to present value, in 2019, amounting to R$1.2 billion of the satellite transmission contract (DTH TV) and in 2018, amounting to R$4.5 billion of the transmission contract via submarine cables. |