Cover
Cover | 12 Months Ended |
Dec. 31, 2020shares | |
Cover [Abstract] | |
Entity Registrant Name | TIM S.A. |
Entity Central Index Key | 0001826168 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity a Well-known Seasoned Issuer | Yes |
Entity a Voluntary Filer | No |
Entity Reporting Status Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Document Transition Report | false |
Document Shell Company Report | false |
Document Annual Report | true |
Entity Interactive Data Current | Yes |
Entity Incorporation, State or Country Code | D5 |
Entity Common Stock, Shares Outstanding | 2,420,804,398 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2020 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | R$ 2575291 | R$ 2284810 |
Marketable securities | 2,070,438 | 654,479 |
Trade accounts receivable | 3,051,834 | 3,184,780 |
Inventories | 246,602 | 203,278 |
Recoverable indirect taxes, charges and contributions | 374,015 | 420,284 |
Recoverable direct taxes, charges and contributions | 1,421,112 | 1,395,193 |
Prepaid expenses | 149,796 | 175,868 |
Derivative financial instruments | 262,666 | 16,602 |
Leases | 5,357 | 4,931 |
Regulatory credits recoverable | 43,906 | 33,090 |
Other | 210,539 | 80,814 |
Total current assets | 10,411,556 | 8,454,129 |
Long-term assets | ||
Marketable securities | 7,061 | 3,849 |
Trade accounts receivable | 128,827 | 103,075 |
Recoverable indirect taxes, charges and contributions | 856,786 | 823,349 |
Recoverable direct taxes, charges and contributions | 1,277,127 | 2,367,607 |
Deferred income tax and social contribution | 550,646 | |
Judicial deposits | 794,755 | 1,006,899 |
Prepaid expenses | 73,598 | 69,656 |
Derivative financial instruments | 239,423 | 29,909 |
Leases | 156,841 | 151,447 |
Other | 30,024 | 58,514 |
Total long-term assets | 4,115,088 | 4,614,305 |
Property, plant and equipment | 18,100,698 | 17,612,164 |
Intangible assets | 9,027,075 | 9,668,326 |
Total non-current assets | 31,242,861 | 31,894,795 |
Total assets | 41,654,417 | 40,348,924 |
Current liabilities | ||
Suppliers | 3,128,732 | 3,923,035 |
Loans and financing | 1,689,385 | 1,384,180 |
Leases | 1,054,709 | 873,068 |
Derivative financial instruments | 7,273 | 858 |
Labor obligations | 272,635 | 218,421 |
Indirect taxes, charges and contributions payable | 935,778 | 463,606 |
Direct taxes, charges and contributions payable | 296,299 | 296,305 |
Dividends and interest on shareholders' equity payable | 538,576 | 577,837 |
Authorizations payable | 102,507 | 88,614 |
Deferred revenues | 266,436 | 281,930 |
Other | 9,626 | 9,625 |
Total current liabilities | 8,301,956 | 8,117,479 |
Non-current liabilities | ||
Loans and financing | 655,647 | 644,908 |
Derivative financial instruments | 28,893 | 3,547 |
Leases | 7,324,126 | 6,907,802 |
Indirect taxes, charges and contributions payable | 3,102 | 2,997 |
Direct taxes, charges and contributions payable | 212,444 | 212,310 |
Deferred income tax and social contribution | 47,734 | |
Provision for legal and administrative proceedings | 886,947 | 840,637 |
Pension plan and other post-employment benefits | 7,346 | 5,782 |
Authorizations payable | 232,940 | 237,723 |
Deferred revenues | 755,488 | 827,182 |
Other | 62,783 | 69,005 |
Total non-current liabilities | 10,169,716 | 9,799,627 |
Total liabilities | 18,471,672 | 17,917,106 |
Shareholders' equity | ||
Share capital | 13,477,891 | 9,866,298 |
Capital reserves | 397,183 | 410,650 |
Profit reserve | 9,317,356 | 12,159,162 |
Equity valuation adjustments | (4,848) | (1,088) |
Treasury shares | (4,837) | (3,204) |
Total shareholders' equity | 23,182,745 | 22,431,818 |
Total liabilities and shareholders' equity | R$ 41654417 | R$ 40348924 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit or loss [abstract] | |||
Revenue | R$ 17267812 | R$ 17377194 | R$ 16981329 |
Cost of services provided and products sold | (7,996,615) | (7,433,731) | (7,701,418) |
Gross income | 9,271,197 | 9,943,463 | 9,279,911 |
Selling expenses | (4,443,027) | (4,986,289) | (4,970,780) |
General and administrative expenses | (1,673,290) | (1,717,859) | (1,608,319) |
Other income (expenses) | (351,854) | 1,275,542 | (283,289) |
Total income expense | (6,468,171) | (5,428,606) | (6,862,388) |
Operating income | 2,803,026 | 4,514,857 | 2,417,523 |
Financial income | 438,598 | 1,430,171 | 412,733 |
Financial expenses | (1,242,255) | (1,408,053) | (951,439) |
Foreign exchange variations | (6,965) | (908) | 1,373 |
Total financial income (expenses) | (810,622) | 21,210 | (537,333) |
Income before income tax and social contribution | 1,992,404 | 4,536,067 | 1,880,190 |
Income tax and social contribution | (164,150) | (913,940) | 664,911 |
Net income for the year | R$ 1828254 | R$ 3622127 | R$ 2545101 |
Earnings per share attributable to Company's shareholders (in R$ per share) | |||
Basic earnings per share (in R$ per share) | R$ 0.76 | R$ 1.50 | R$ 1.05 |
Diluted earnings per share (in R$ per share) | R$ 0.76 | R$ 1.50 | R$ 1.05 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit or loss [abstract] | |||
Net income for the year | R$ 1828254 | R$ 3622127 | R$ 2545101 |
Item that will not be reclassified to income (loss): | |||
Pension plans and other post-employment benefits | (1,562) | (2,932) | (215) |
Deferred taxes | 531 | 997 | 73 |
Total comprehensive income for the year | R$ 1827223 | R$ 3620192 | R$ 2544959 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - BRL (R$) R$ in Thousands | Capital stock [member] | Capital reserve [member] | Profit reserves - Legal reserve [member] | Profit reserves - Reserve for expansion [member] | Profit reserves - Tax benefit reserve [member] | Treasury shares [member] | Accumulated other comprehensive income [member] | Retained earnings [member] | Total | |
Balance at beginning at Dec. 31, 2017 | R$ 9866298 | R$ 416162 | R$ 718759 | R$ 5831941 | R$ 1271403 | R$ 16487 | R$ 989 | R$ 18089065 | ||
Total comprehensive income for the year | ||||||||||
Net income for the year | R$ 2545101 | 2,545,101 | ||||||||
Remeasurement of post-employment benefit obligation | (142) | (142) | ||||||||
Total comprehensive income for the year | (142) | 2,545,101 | 2,544,959 | |||||||
Total contribution from shareholders and distribution to shareholders | ||||||||||
Stock options (note 24b) | (4,071) | (4,071) | ||||||||
Purchase of treasury shares, net of disposals | 7,964 | 7,964 | ||||||||
Allocation of net income for the year (note 24): | ||||||||||
Legal reserve (note 24) | 119,933 | (119,933) | ||||||||
Interest on equity (note 24) | (849,994) | (849,994) | ||||||||
Tax benefit reserve (note 24) | 146,455 | (146,455) | ||||||||
Expansion reserve (note 24) | 1,428,719 | (1,428,719) | ||||||||
Unclaimed dividends (note 24) | 6,914 | 6,914 | ||||||||
Total contribution from shareholders and distribution to shareholders | (4,071) | 119,933 | 1,435,633 | 146,455 | 7,964 | (2,545,101) | (839,187) | |||
Balance at end at Dec. 31, 2018 | 9,866,298 | 412,091 | 838,692 | 7,267,574 | 1,417,858 | (8,523) | 847 | 19,794,837 | ||
Total comprehensive income for the year | ||||||||||
Net income for the year | 3,622,127 | 3,622,127 | ||||||||
Remeasurement of post-employment benefit obligation | (1,935) | (1,935) | ||||||||
Total comprehensive income for the year | (1,935) | 3,622,127 | 3,620,192 | |||||||
Total contribution from shareholders and distribution to shareholders | ||||||||||
Stock options (note 24b) | (1,441) | (1,441) | ||||||||
Purchase of treasury shares, net of disposals | 5,319 | 5,319 | ||||||||
Allocation of net income for the year (note 24): | ||||||||||
Legal reserve (note 24) | 171,398 | (171,398) | ||||||||
Interest on equity (note 24) | (995,438) | (995,438) | ||||||||
Tax benefit reserve (note 24) | 194,161 | (194,161) | ||||||||
Expansion reserve (note 24) | 2,261,130 | (2,261,130) | ||||||||
Unclaimed dividends (note 24) | 8,349 | 8,349 | ||||||||
Total contribution from shareholders and distribution to shareholders | (1,441) | 171,398 | 2,269,479 | 194,161 | 5,319 | (3,622,127) | (983,211) | |||
Balance at end at Dec. 31, 2019 | 9,866,298 | 410,650 | 1,010,090 | 9,537,053 | 1,612,019 | (3,204) | (1,088) | 22,431,818 | ||
Total comprehensive income for the year | ||||||||||
Net income for the year | 1,828,254 | 1,828,254 | ||||||||
Other comprehensive income | (1,031) | (1,031) | ||||||||
Total comprehensive income for the year | (1,031) | 1,828,254 | 1,827,223 | |||||||
Total contribution from shareholders and distribution to shareholders | ||||||||||
Corporate restructure (note 1) | 3,611,593 | (20,892) | (57,604) | (3,535,824) | 5,456 | (2,729) | ||||
Stock options (note 24b) | 7,425 | 7,425 | ||||||||
Purchase of treasury shares, net of disposals | (7,089) | (7,089) | ||||||||
Allocation of net income for the year (note 24): | ||||||||||
Legal reserve (note 24) | 83,708 | (83,708) | ||||||||
Interest on equity (note 24) | (1,083,000) | (1,083,000) | ||||||||
Tax benefit reserve (note 24) | 169,541 | (169,541) | ||||||||
Expansion reserve (note 24) | 492,005 | (492,005) | ||||||||
Unclaimed dividends (note 24) | 6,368 | 6,368 | ||||||||
Total contribution from shareholders and distribution to shareholders | 3,611,593 | (13,467) | 26,104 | (3,037,451) | 169,541 | (1,633) | (2,729) | (1,828,254) | (1,076,296) | |
Balance at end at Dec. 31, 2020 | R$ 13477891 | R$ 397183 | R$ 1036194 | R$ 6499602 | R$ 1781560 | R$ 4837 | [1] | R$ 4848 | R$ 23182745 | |
[1] | On September 28, 2020, at a meeting of the Board of directors, and the directors of the Company has become aware of the payments relating to the awards of the 2018 and 2019, based on the transfer of shares held in treasury stock to the beneficiaries as provided for in the Plans and pursuant to the terms of the share buyback Program as approved by the Board of Directors of TIM Participacoes S.A. (merged into TIM S.A.) in the meeting held on the 29th of July 2020, in the amount of 357,379 shares. |
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Income before income tax and social contribution | R$ 1992404 | R$ 4536067 | R$ 1880190 |
Adjustments to reconcile income to net cash generated by operating activities: | |||
Depreciation and amortization | 5,527,012 | 5,128,981 | 3,954,321 |
Residual value of written-off fixed and intangible assets | (88,085) | 32,411 | 9,700 |
Interest on asset retirement obligation | (284) | 226 | 648 |
Provision for administrative and judicial proceedings | 333,724 | 547,691 | 551,191 |
Inflation adjustment on deposits and administrative and judicial proceedings | 138,109 | 200,469 | 297,529 |
Interest, inflation adjustment and foreign exchange variations on loans and other financial adjustments | 168,362 | (950,675) | (35,450) |
Interest on lease payable | 910,691 | 821,463 | 266,328 |
Interest on lease receivable | (10,698) | (6,422) | (25,664) |
Provision for expected credit losses | 552,817 | 748,291 | 544,881 |
Stock options | 2,588 | 3,443 | (1,424) |
Total adjustments to reconcile income with net cash from operations | 9,526,640 | 11,061,945 | 7,442,250 |
Decrease (increase) in operating assets | |||
Trade accounts receivable | (390,087) | (1,027,131) | (1,028,791) |
Recoverable taxes and contributions | 1,260,949 | (1,601,276) | 175,116 |
Inventories | (43,325) | (20,219) | (59,274) |
Prepaid expenses | 20,928 | 100,917 | 56,792 |
Judicial deposits | 203,567 | 296,486 | 30,478 |
Other assets | (111,003) | 5,059 | 133,831 |
Increase (decrease) in operating liabilities | |||
Labor obligations | 53,667 | 6,736 | (50,765) |
Suppliers | (818,989) | (401,200) | 331,736 |
Taxes, fees and contributions | (320,674) | 40,045 | 187,170 |
Authorizations payable | (10,871) | (100,182) | (104,582) |
Payments of lawsuits and administrative proceedings | (413,635) | (715,203) | (536,646) |
Deferred revenues | (87,188) | (204,355) | (193,599) |
Other liabilities | (126,530) | (215,063) | (40,373) |
Cash generated by operations | 8,743,449 | 7,226,559 | 6,343,343 |
Income tax and social contribution paid | (69,578) | (161,833) | (213,956) |
Net cash generated by operating activities | 8,673,871 | 7,064,726 | 6,129,387 |
Investing activities | |||
Marketable securities | (1,428,888) | 131,742 | (21,460) |
Cash from the merger of TIM Participacoes | 21,959 | ||
Additions to property, plant and equipment and intangible assets | (3,891,306) | (3,853,484) | (3,831,906) |
Other derivatives | (161,429) | ||
Proceeds received from leases | 4,879 | 9,100 | 22,946 |
Net cash (invested in) generated by investment activities | (5,454,785) | (3,712,642) | (3,830,420) |
Financing activities | |||
New loans | 1,800,000 | 1,000,000 | 166,548 |
Amortization of loans | (1,806,922) | (723,500) | (3,359,074) |
Interest paid on loans | (72,643) | (96,649) | (193,333) |
Leases payments | (927,903) | (800,621) | (9,898) |
Interest paid on leases | (794,391) | (785,091) | (242,512) |
Derivative financial instruments | 27,070 | 32,761 | 37,044 |
Purchases of treasury shares, net of disposals | 435 | 5,317 | |
Dividends and interest on shareholders' equity paid | (1,153,054) | (770,139) | (588,247) |
Net cash invested in financing activities | (2,927,843) | (2,142,804) | (4,184,155) |
Increase (decrease) in cash and cash equivalents | 291,243 | 1,209,280 | (1,885,188) |
Cash and cash equivalents at the beginning of the year | 2,284,810 | 1,075,530 | 2,960,718 |
Cash and cash equivalents at the end of the year | R$ 2575291 | R$ 2284810 | R$ 1075530 |
1. Operations
1. Operations | 12 Months Ended |
Dec. 31, 2020 | |
Operations | |
Operations | 1. Operations 1.a The Corporate structure TIM S.A. (“TIM” “The Company” and/or “TIM Group”) is a publicly-held corporation with Registered office in the city of Rio de Janeiro, RJ, and a subsidiary of TIM Brasil Serviços e Participações S.A. (“TIM Brasil”). TIM Brasil is a subsidiary of the Telecom Italia Group and held 66.58% of the capital of TIM S.A on December 31, 2020. On December 31, 2019 and 2018, TIM S.A. was fully controlled by TIM Participações S.A. with 100% of the capital of the Company (which TIM Brasil also held 66.58% of the capital of TIM Participações), which subsequently, on August 31, 2020, was incorporated by its subsidiary. The Company provides Landline Switched Telephone Service (“STFC”) in Local, National Long-Distance and International Long-Distance modes, as well as Personal Mobile Service (“SMP”) and Multimedia Communication Service (“SCM"), in all Brazilian states and in the Federal District. The Company's shares are traded on B3 (formerly BM&F/Bovespa). Additionally, TIM S.A. has American Depositary Receipts ( ADRs Securities and Exchange Commission In December 2020, TIM’s Board of Directors, after analyzing the studies prepared and the non-binding proposals received, approved the incorporation of FiberCo Soluções de Infraestrutura Ltda., a wholly-owned subsidiary that will be used in future segregation of assets and provision of infrastructure services for residential optical fiber of TIM S.A. (note 40). Corporate Reorganization On July 29, 2020, the Board of Directors of the Company approved the submission to the Extraordinary General Meeting of the proposed Corporate restructure of TIM Participações by TIM S.A. The Extraordinary General Meeting was held on August 31, 2020, and approved, by a majority of votes, the takeover of TIM Participações by TIM S.A., where TIM S.A. became the successor issuer to TIM Participações, in accordance with the protocol and justification of merger concluded between the administrations of the Companies on July 29, 2020. As a result of the merger, all operations of TIM Participações were transferred to TIM S.A. which was a whole owned subsidiary of Tim Participações, which succeeded it in all its assets, rights and obligations, universally and for all purposes of law. This transaction had no economic or tax impact and the incorporated goodwill from the extinguished company was not and will not be used for the purposes of any tax offsets. This corporate reorganization aimed to provide greater efficiency and simplification of the organizational structure of the TIM Group, making the structure of internal controls more efficient. In addition, the corporate reorganization provides a better tax efficiency in future distributions of Interest on shareholders’ equity, and also, greater integration of administrative and financial unities allowing a cut-off in operational costs and expenses, as well as improvement of synergies, which shall result in a more efficient operation. As a result from this transaction, there was no impact on the controlling and non-controlling shareholders. After the Merger, TIM S.A. became a company listed in the special segment of listing Novo Mercado of B3 S.A. – Brazil, Bolsa, Balcão (“B3”) and with American Depositary Receipts (“ADRs”) traded on the New York Stock Exchange - New York Stock Exchange (“NYSE”). Starting to be traded with the codes TIMS3 on B3 and TIMB on the NYSE. |
2. Management statement and bas
2. Management statement and basis of preparation of the consolidated financial statements | 12 Months Ended |
Dec. 31, 2020 | |
Basis For Preparation And Disclosure Of The Consolidated Financial Statements [Abstract] | |
Management statement and basis of preparation of the consolidated financial statements | 2. Management statement and basis of preparation of the consolidated financial statements The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”), and disclose all (and only) the applicable significant information related to the consolidated financial statements, which is consistent with the information utilized by management in the performance of its duties. The significant accounting policies applied to the preparation of this financial statements are described below and/or presented in the respective notes. These policies were consistently applied to the years presented, unless otherwise indicated. a. Basis of presentation of Company’s consolidated financial statements – Predecessor method As previously described with completion of the merger, TIM S.A. became the surviving entity, and the new SEC registrant. Further, since the merger effective date, TIM S.A. shares replaced TIM Participações S.A. shares and are currently listed in the Brazilian Stock Exchange (“B3”) as well as in the New York Stock Exchange (“NYSE”). Upon the completion of the Corporate restructure, the historical consolidated financial statements of TIM Participações S.A. became the historical consolidated financial statements of TIM S.A. The transaction was recorded at book value since it was a transaction under common control. The consolidated financial statements for the prior periods are presented for TIM Participações S.A. as the predecessor of the Company as the historical operations of TIM Participações S.A. are deemed to be those of the Company. The comparative figures of the consolidated balance sheet of December 31, 2019, and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for each of the two years in the period ended December 31, 2019 are those of TIM Participações. The number of shares of TIM S.A. prior to the Corporate reorganization was 2,420,447,019, an equivalent number of common shares of the extinguished entity TIM Participações as of the date of the merger. Consequently, basic and diluted earnings per share presented in note 33 were not impacted by the corporate reorganization. The impact of the reverse merger of TIM Participações by TIM S.A. was limited to reclassifications among certain accounts within the current year statement of changes in shareholders’ equity as follows: Equity accounts The Company’s equity reserves Impact on TIM S.A. statement of changes in equity TIM Participações Capital Stock 13,477,891 3,611,593 9,866,298 Capital reserve 397,183 (20,892) 418,075 Legal reserve 1,036,194 (57,603) 1,093,797 Tax benefit reserve 1,781,560 - 1,781,560 Reserve for expansion 6,499,602 (3,535,824) 10,035,426 Treasury shares (4,837) 5,456 (10,293) Accumulated other comprehensive income (4,848) (2,730) (2,118) Total 23,182,745 - 23,182,745 b. General criteria for preparation and disclosure The financial statements were prepared taking into account the historical cost as the base value as well as financial assets and liabilities (including derivative financial instruments) measured at fair value. Assets and liabilities are reported according to their degree of liquidity and collectability. They are reported as current when they are likely to be realized or settled over the next 12 months. Otherwise, they are recorded as non-current. The exception to this procedure involves deferred income tax and social contribution balances (assets and liabilities) and contingent liabilities that are fully classified as long-term. Interests paid are classified as financing cash flow in the statement of cash flows as it represents costs of obtaining financial resources. c. Functional currency and presentation currency The presentation currency of the financial statements is the Real (R$), which is also the Company´s functional currency. Transactions in foreign currency are recognized by the exchange rate on the date of transaction. Monetary items in foreign currency are converted into Brazilian reais at the foreign exchange rate prevailing on the balance sheet date, published by the Central Bank of Brazil. Foreign exchange gains and losses linked to these items are recorded in the statement of income. d. Segment information Operating segments are components of the entity that carry out business activities from which revenues can be obtained and expenses incurred. Its operating results are regularly reviewed by the entity's main operations manager, who makes decisions on resource allocation and evaluates segment performance. For a segment to exist, it must have separate financial information available. The main operational decision maker in the Company, responsible for the allocation of resources and periodically evaluating performance, is the Executive Board, which, along with the Board of Directors, are responsible for making the strategic decisions of the company and its management. The Group's strategy is focused on optimizing results, and from the corporate reorganization mentioned in note 1, all the operating activities of the group are concentrated exclusively in TIM S.A. Although there are diverse activities, decision makers understand that the company represents only one business segment and do not contemplate specific strategies focused only on one service line. All decisions regarding strategic, financial planning, purchases, investments and investment of resources are made on a consolidated basis. The aim is to maximize the consolidated result obtained by operating the SMP, STFC and SCM licenses. e. Consolidation procedures Subsidiaries are all the entities in which the Group retains control. The Group controls an entity when it is exposed to, or has a right over the variable returns arising from its involvement with the entity and has the ability to interfere in those returns due to its power over the entity. The subsidiaries are fully consolidated as of the date control is transferred to the Group. Consolidation is interrupted beginning as of the date in which the Group no longer holds control. The purchase accounting method is used to record the acquisition of subsidiaries by the Group. The acquisition cost is measured as the fair value of the assets acquired, equity instruments (i.e..: shares) and liabilities incurred or assumed by the acquirer on the date of the change of control. Identifiable assets acquired, contingencies and liabilities assumed in a business combination are initially measured at fair value on the date of acquisition, regardless of the proportion of any minority interest. The portion exceeding the acquisition cost of the Group's interest in the acquired identifiable net assets, is recorded as goodwill. Should the acquisition cost be less than the fair value of the net assets of the acquired subsidiary, the difference is recognized directly in the statement of income as a revenue, once concepts and calculations applied are reviewed. Intercompany transactions, as well as the balances and unrealized gains and losses in those transactions, are eliminated. The accounting policies of the subsidiary were adjusted to ensure consistency with the accounting policies adopted by TIM S.A. The base date of the financial information used for consolidation purposes is the same for all the companies in the Group. f. Approval of financial statements These financial statements were approved by the Board of Directors of the Company on April 29, 2021. g. New standards, amendments and interpretations of standards The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after January 1, 2020. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective IFRS 3: Definition of business The amendments to IFRS 3 clarify that, to be considered a business, an integrated set of activities and assets must include, at least, an inflow of funds and a substantive process that together contribute significantly to the capacity to generate the outflow of funds. Moreover, it clarified that a business can exist without including all the inflows of funds and processes necessary to create outflows of funds. These amendments had no impact on the Company’s consolidated financial statements, but may impact future periods if the Group enters into any business combination. Changes in IAS 39, IFRS 7 and IFRS 9: Benchmark Interest Rate Reform The amendments to Pronouncements IAS 39 and IFRS 9 provide exemptions that apply to all hedge relationships directly affected by the benchmark interest rate reform. A hedge relationship is directly affected if the reform raises uncertainties about the period or the value of cash flows based on the benchmark interest rate of the hedged item or hedging instrument. These changes have no impact on the Company’s individual and consolidated financial statements, as it does not have interest rate hedging relationships. Changes in IAS 1 and IAS 8: Definition of material The amendments provide a new definition of material, stating that: “information is material if its omission, distortion or obfuscation can reasonably influence decisions that the main users of the general purpose quarterly information make based on this quarterly information, which provide financial information on entity’s specific report”. The amendments clarify that the materiality will depend on the nature or magnitude of the information, individually or combined with other information, in the context of the financial statements. A distorted information is material if it could reasonably be expected to influence decisions made by primary users. These amendments had no impact on the individual and consolidated financial statements, nor is it expected that there will be any future impact for the Company. Changes in IFRS 16 Covid-19 related benefits granted to leaseholders in lease agreements. The amendments provide for the granting of benefits to lessees upon adoption of the guidelines of IFRS 16 on the modification of the lease agreement, when accounting for the related benefits as a direct consequence of the Covid-19 pandemic. As a practical expedient, a lessee may choose not to assess whether a benefit related to Covid-19 granted by the lessor is a modification of the lease agreement. The lessee who makes this option must account for any change in the lease payment resulting from the benefit granted in the lease agreement related to Covid-19 in the same way that it would account for the change by adopting IFRS 16 if the change was not a modification of the lease agreement. This amendment had no material impact on the consolidated financial statements of the Company. IFRS 17 - Insurance Contracts In May 2017, the IASB issued IFRS 17 - Insurance Contracts, a new comprehensive accounting standard for insurance contracts that includes recognition and measurement, presentation and disclosure. As soon as it comes into force, IFRS 17 will replace IFRS 4 - Insurance Contracts, issued in 2005. IFRS 17 applies to all types of insurance contracts (such as life, non-life, direct insurance and reinsurance), regardless of the type of entity that issues them, as well as certain guarantees and financial instruments with discretionary participation characteristics. Some scope exceptions apply. The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. In contrast to the requirements of IFRS 4, which are largely based on local accounting policies in force in previous periods, IFRS 17 provides for a comprehensive model for insurance contracts, covering all relevant accounting aspects. The focus of IFRS 17 is the general model, covering the following: • A specific adaptation for contracts with direct participation characteristics (variable rate approach). • A simplified approach (premium allocation approach), mainly for short-term contracts. IFRS 17 is effective for periods beginning on or after January 1, 2023, requiring the presentation of comparative amounts. Early adoption is allowed if the entity also adopts IFRS 9 and IFRS 15 on the same date or before the first-time adoption of IFRS 17. This standard does not apply to the Company Amendments to IAS 1: Classification of liabilities as current or non-current In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1, aiming to specify the requirements for classifying the liabilities as current or non-current. The amendments clarify the following: • What a right to postpone settlement means; • That the right to postpone settlement must exist on the base date of the report; • That this classification is not affected by the likelihood that an entity will exercise its right to postpone settlement; • That only if a derivative embedded in a convertible liability is itself an equity instrument would the terms of a liability not affect its classification. Amendments are valid for periods started on January 1, 2023 and must be applied on a retrospective basis. The Company currently assesses the impact that the changes will have on current practice and whether existing loan agreements may require renegotiation. Impact of COVID-19 In December 2019, an outbreak of a contagious disease, Coronavirus 2019 (COVID-19), began in mainland China, and since early 2020, the virus has spread to Europe, the United States and several other countries, including Brazil. The World Health Organization (WHO) has declared the Coronavirus (COVID-19) as a pandemic on March 11, 2020. The COVID-19 outbreak developed rapidly in 2020 and measures taken to contain the virus affected economic activity, which in turn had implications for the Company’s operating results and cash flows. The lockdown was declared in several States in Brazil in March 2020. Since then, the Company’s management has been monitoring the impacts and any material uncertainties related to events or conditions that may cast significant doubt on the entity’s ability to continue as an ongoing company. However, in 2020, the Company has a robust infrastructure and is part of an extremely important segment in this period of crisis, essential for the population, government and health system. After an internal analysis, there was no indication of impairment of assets or risks associated with the fulfilment of obligations, since the Company is not highly leveraged and still has credit lines available to be used in the event of a significant reduction in cash volumes. The Company is monitoring the evolution of the situation and closely assessing the impact of COVID-19 on its business. In 2020 and so far, we have not suffered any material impact on our operations. In June 2020, stores resumed their activities with a positive impact on handset sales and the impacts on our businesses or our financial targets due to the pandemic were not material. However, we are still continuously monitoring government responses and economic performance and we believe that a prolonged slowdown in local, regional or global economic conditions may affect the Company’s businesses. |
3. Critical estimates and judgm
3. Critical estimates and judgments in applying the Company's accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Estimates And Areas Where Judgment Is Significant In The Application Of The Company'S Accounting Policies [Abstract] | |
Critical estimates and judgments in applying the Company's accounting policies | 3. Critical estimates and judgments in applying the Company’s accounting policies Accounting estimates and judgments are continuously assessed. They are based on the Company's historical experience and on other factors, such as expectations of future events, considering the circumstances present in the base date of the financial statements. By definition, resulting accounting estimates are seldom equal to the respective actual incomes. The estimates and assumptions that present a significant risk, with the probability of causing a material adjustment to the book values of assets and liabilities for the fiscal period, are covered below. (a) Impairment loss on non-financial assets Impairment losses occur when book value of an asset or cash generating unit exceeds its recoverable value, which is the highest of fair value less selling costs and value in use. The calculation of fair value less selling costs is based on information available on similar assets’ selling transactions or market prices less additional costs to dispose of the asset. The main non-financial assets for which this assessment was made are goodwill recorded by the Company (note 14) and its tangible assets. (b) (Current and deferred) income tax and social contribution Income tax and social contribution (current and deferred) are calculated according to interpretations of current legislation and IAS 12. This process typically involves complex estimates to determine taxable income and temporary differences. In particular, the deferred assets on tax losses, negative basis of social contribution and temporary differences are recognized to extent that it is probable that future taxable income is available and can be used. The measurement of the recoverability of deferred income tax on tax losses, negative basis of social contribution and temporary differences takes the history of taxable income into account, as well as the estimate of future taxable income (note 10). (c) Provision for legal and administrative proceedings The legal and administrative proceedings are analyzed by the Management along with its legal advisors (internal and external). The Company considers factors in its analysis such as hierarchy of laws, precedents available, recent court judgments, their relevance in the legal system and payment history. These assessments involve Management’s judgment (note 23). (d) Fair value of derivatives and other financial instruments The financial instruments presented in the balance sheet at fair value are measured using valuation techniques that consider observable data or observable data derived from market (note 36). (e) Unbilled revenues Since some cut dates for billing occur at intermediate dates within the months of the year, as the end of each month there are revenues earned by the Company, but not actually invoiced to its customers. These unbilled revenues are recorded based on estimate that takes into consideration historical consumption data, number of days elapsed since the last billing date, among others (note 26). (f) Leases The new standard establishes the principles for the recognition, measurement, reporting and disclosure of leases, and requires the recognition by lessees of assets and liabilities arising from lease agreements, except for short-term contracts, that is, with a term of 12 months or less, or contracts in which the value of the underlying assets is low. The Company decided to adopt IFRS16 retrospectively, while the cumulative effect of the initial application is recognized on the date of initial application, that is, January 1, 2019 in total amount of R$5.256.114. Additionally, the Company decided to take practical steps in its initial adoption of the standard, such as: (i) non-revaluation of financial lease agreements previously recognized according to IAS 17 upon initial measurement of financial lease liabilities, according to the new accounting pronouncement, and IFRIC 4; (ii) exclusion of lease agreements expiring in the next 12 months and unlikely to be renewed by the Company and the exclusion of leasing contracts considered of low value; (iii) non-application of this new standard to agreements not previously identified as leases, using IAS 17 and IFRIC 4; and (iv) application of a single discount rate to the leasing portfolio with reasonably similar characteristics (such as leasing with a similar remaining leasing period for a similar class of underlying assets in a similar economic setting). The Company has a significant number of the lease contracts in which it acts a lessee, and certain judgments were exercised by Company´s management in measuring lease liabilities and right-of-use assets, such as: (i) estimate of the lease term, considering non-cancellable period and the period covered by options to extend the contract term, when the exercise depends only from the Company, and this exercise is reasonably certain; (ii) using certain assumptions to calculate the discount rate. The Company is not able to readily determine the interest rate implicit on the lease and, therefore, considers its incremental rate on loans to measure lease liabilities. Incremental rate on the lessee´s borrowing is the interest rate that the lessee would have to pay when borrowing, for a similar term and with a similar guarantee, the resources necessary to obtain the asset with a value similar to the right of use asset in a similar economic environment. Thus, this assessment of lease, considering non-cancellable period and the period covered by options to extend the contract term. The Company estimates the incremental rate using observable data (such as market interest rates) when available and considers aspects that are specific to the Company (such as the cost of debt) in this estimate. |
4. Cash and cash equivalents
4. Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | 4. Cash and cash equivalents They are financial assets measured at amortized cost using the effective interest rate method. Company’s Management classifies its financial assets upon initial recognition. 2020 2019 Cash and banks 100,008 101,928 Unrestrictedly available financial investments: Bank Deposit Certificates (CDB)/Repurchase and resale agreements 2,475,282 2,182,882 2,575,290 2,284,810 Bank certificates of deposit (“CDBs”) and committed transactions are nominative securities issued by banks and sold to the public as a form of fund raising. Such securities may be traded during the contracted term, at any time, without significant loss in their value and are used for the fulfilment of short-term obligations by the company. The annual average return of the Company's investments related to CBD's and Repurchases and Resale Agreements is 101.24% (99.95% on December 31, 2019) of the variation of the Interbank Deposit Certificate – CDI. |
5. Marketable securities
5. Marketable securities | 12 Months Ended |
Dec. 31, 2020 | |
Marketable Securities [Abstract] | |
Marketable securities | 5. Marketable securities 2020 2019 FUNCINE (1) 7,061 3,849 Fundo Soberano (2) 5,220 7,329 FIC: (3) Government bonds (3) 1,345,797 179,390 CDB (4) 17,370 216,196 Financial bills (5) 292,500 105,857 Other (6) 409,551 145,707 2,077,499 658,328 Current portion (2,070,438) (654,479) Non-current 7,061 3,849 (1) On December 2017, the Company, with the aim of using tax deductibility benefit for income tax and social contribution purposes, started investing in the National Film Industry Financing Fund (FUNCINE). The average remuneration in 2020 is negative by 0.34% (9.18% on December 31, 2019). The position on December 31, 2020 in the amount of R$ 7,061 (R$ 3,849 million in 2019). ( 2) “Fundo Soberano” is composed only of federal government bonds. The average remuneration in 2020 is 87.71% (97.62% on December 31, 2019) of the variation of the Interbank Deposit Certificate (CDI). (3) In August 2017, the Company invested in open FIC's (Quota Investment Fund). Funds are mostly made up of government bonds and papers from top-tier financial institutions. The average remuneration in 2020 of Investment Fund in Quotas was 112.72% (99.67 on December 31, 2019) of the variation of the Interbank Deposit Certificate (CDI). Government bonds are fixed income financial instruments issued by the National Treasury to finance the activities of the Federal Government. (4) The CDB operations are issued by the banks with the commitment of stock buyback by the bank itself and with predetermined taxes. (5) The Financial bills is a fix income tittle emitted by financial institutions with the objective of a long-term fund raising (6) Is represented by: Debentures, FIDC, commercial notes, promissory notes, bank credit note. |
6. Trade accounts receivable
6. Trade accounts receivable | 12 Months Ended |
Dec. 31, 2020 | |
Trade Accounts Receivable [Abstract] | |
Trade accounts receivable | 6. Trade accounts receivable These are financial assets measured at amortized cost, and refer to accounts receivable from users of telecommunications services, from network use (interconnection) and from sales of handsets and accessories. Accounts receivable are recorded at the price charged at the time of the transaction. The balances of accounts receivable also include services provided and not billed (“unbilled”) up to the balance sheet date. Trade accounts receivable are initially recognized at fair value and, subsequently, measured at amortized cost using the effective interest rate method less provision for expected credit losses (“impairment”). The provision for expected credit losses was recognized as a reduction in accounts receivable based on the profile of the subscriber portfolio, the aging of overdue accounts receivable, the economic situation, the risks involved in each case and the collection curve, at an amount deemed sufficient by Management, as adjusted to reflect current and prospective information on macroeconomic factors that affect the customers’ ability to settle the receivables. The fair value of trade accounts receivable is close to the book value recorded on December 31, 2020 and 2019. The average rate considered in calculating the present value of accounts receivable recorded in the long term is 0.22% (0.07% in 2019). 2020 2019 Trade accounts receivable 3,180,661 3,287,855 Accounts receivable, gross 3,831,921 4,061,932 Billed services 2,039,403 2,076,569 Unbilled services 817,669 858,418 Network usage 399,083 438,168 Sale of goods 552,962 670,573 Contractual assets (note 22) 14,914 15,142 Other accounts receivable 7,890 3,062 Provision for expected credit losses (651,260) (774,077) Current portion (3,051,834) (3,184,780) Non-current portion 128,827 103,075 The movement of the provision for loss on expected settlement credits, accounted for as an asset reduction account, was as follows: 2020 2019 Opening balance 774,077 686,928 Set-up of provision (note 27) 552,817 748,291 Write-off (675,634) (661,142) Closing Balance 651,260 774,077 The aging of accounts receivable is as follows: 2020 2019 Total 3,831,921 4,061,932 Falling due 2,785,469 2,576,307 Overdue (days): Up to 30 248,955 328,457 Up to 60 84,218 146,200 Up to 90 71,635 149,852 >90 641,644 861,116 |
7. Inventories
7. Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory [Abstract] | |
Inventories | 7. Inventories Inventories are presented at the average acquisition cost. A loss is recognized to adjust the cost of Handsets and accessories to the net realizable value (selling price), when this value is less than the average acquisition cost. 2020 2019 Total Inventories 246,602 203,278 Inventories 257,477 214,889 Cell phones and tablets 186,961 146,295 Accessories and prepaid cards 55,558 61,436 TIM chips 14,958 7,158 Losses on adjustment to realizable value (10,875) (11,611) |
8. Recoverable indirect taxes,
8. Recoverable indirect taxes, charges and contributions | 12 Months Ended |
Dec. 31, 2020 | |
Indirect Taxes, Charges And Contributions Recoverable [Abstract] | |
Recoverable indirect taxes, charges and contributions | 8. Recoverable indirect taxes, charges and contributions 2020 2019 Recoverable indirect taxes, fees and contributions 1,230,801 1,243,633 ICMS 1,188,018 1,201,502 Other 42,783 42,131 Current (374,015) (420,284) Non-current 856,786 823,349 The amounts of recoverable ICMS (state VAT) are mainly comprised by: (i) credits on the acquisition of property, plant and equipment directly related to the provision of telecommunication services (credits divided over 48 months). (ii) ICMS amounts paid under the tax substitution regime from goods acquired for resale, mainly mobile handsets, chips, tablets and modems sold by TIM. |
9. Direct taxes, charges and co
9. Direct taxes, charges and contributions recoverable | 12 Months Ended |
Dec. 31, 2020 | |
Direct Taxes, Charges And Contributions Recoverable [Abstract] | |
Direct taxes, charges and contributions recoverable | 9. Direct taxes, charges and contributions recoverable 2020 2019 Direct taxes, fees and contributions recoverable 2,698,239 3,762,800 Income tax and social contribution (i) 381,905 428,443 PIS/COFINS (ii) 2,253,545 3,244,549 Other 62,789 89,808 Current portion (1,421,112) (1,395,193) Non-current 1,277,127 2,367,607 (i) The amounts of income tax and social contribution are as substantially related to: (a) advances made over the period during which the use will take place at the closing of the current year and any balances in the next year; and (b) other income tax and social contribution credits from previous years whose current estimated period of use will be more than 12 months later. (ii) The Recoverable PIS/COFINS amounts mainly refer to credits from a legal proceeding filed by TIM Celular S.A. (ultimately merged into TIM S.A., as well as TIM S.A. itself), with a favorable final decision in Higher Courts which discussed the exclusion of the ICMS from the PIS and COFINS calculation bases. According to the Company's internal evaluation, we expect to use such credits within the statute of limitations of up to 5 years. In March 2017, the Federal Supreme Court (“STF”) recognized the unconstitutionality of including ICMS amounts in the calculation base of PIS and COFINS contributions. TIM S.A. (previously named “Intelig Telecomunicações Ltda.”), as the surviving company from the merger of TIM Celular S.A. and other entities existing in the Group in the past, which had filed proceedings of the same nature, has been challenging this issue in court since 2006, with effects retroactive to five years, as permitted by the legislation. In June 2019, by reason of a final and without appeal decision and calculation of amounts, the amount of R$ 2,875 million was recorded, being R$ 1,720 million of which corresponds to the principal, and R$ 1,155 million to inflation adjustments (amounts relating to TIM Celular S.A., which merged into TIM S.A. in October 2018). In September 2019, because a final, non-appealable judgment was entered and amounts were awarded, the amount of R$ 148 million was recorded, of which R$ 75 million corresponds to the principal, and R$ 73 million to inflation adjustments, and such amounts being related to TIM S.A. itself (when it still did business under the name Intelig Telecomunicações Ltda.). The amount recorded are updated monthly at the interest rate equivalent to the reference rate of the Special Settlement and Custody System (Selic), available on the website of the Brazilian Federal Revenue. In 2020, TIM had used credits arising from the process of exclusion of ICMS from the calculation bases of PIS and COFINS, for payments of federal taxes, in the total amount of R$ 1.516 million. Of this amount, R$ 632 million of IRPJ and CSLL expenses were used in August 2020, relating to the year ended December 31, 2019, from the review of income taxes calculation to include in the bases of calculation of these taxes the indebtedness arising from the aforementioned process. In December 2020, after partial use of TIM S.A credits, in the amount of R$ 1.578 million, it is still recorded in the amounts of R$ 1,391 billion, of which R$ 908 billion as principal and R$ 483 million as inflation adjustments (values that are related to TIM Celular S.A.); and R$ 151 million, of which R$ 75 million as principal and R$ 76 million as inflation adjustments (former Intelig Telecomunicações Ltda.). |
10. Deferred income tax and soc
10. Deferred income tax and social contribution | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Income Tax And Social Contribution [Abstract] | |
Deferred income tax and social contribution | 10. Deferred income tax and social contribution Deferred income tax and social contribution are recognized regarding the (1) accumulated tax losses and negative bases of social contribution and (2) temporary differences arising from differences between the tax basis of assets and liabilities and their book values in the financial statements. Deferred income tax is determined using the tax rates (and tax laws) enacted, or substantially enacted, up to the balance sheet date. Subsequent changes in tax rates or tax legislation may modify the deferred tax credit and debit balances. Deferred tax assets on income tax and social contribution are recognized only in the event of a profitable track record and/or when the annual forecasts prepared by the Company, examined by the Tax Council and Statutory Audit Committee and approved by other Management bodies, indicate the likelihood of the future realization of those tax credits. The balances of deferred income tax assets and liabilities are presented at net value in balance sheet when there is the legal right and the intention of offsetting them upon calculation of current taxes, in general related to the same legal entity and the same tax authority. Accordingly, deferred tax assets and liabilities in different entities are in general presented separately, and not at net balance. On December 31, 2020 and 2019, the rates in force were 25% for income tax and 9% for social contribution. In addition, there is no statute of limitation in regard to the income tax and social contribution carried forward losses, which it can be offset by up to 30% of the taxable profit reached at each fiscal year, according to the current tax legislation. The amounts recorded are as follows: 2020 2019 Tax loss carryforwards and negative basis of social contribution 475,128 800,711 Temporary differences: Provision for legal and administrative proceedings 303,948 295,853 Losses on doubtful accounts 224,459 271,611 Adjustment to present value - 3G license 5,240 7,182 Rental of infrastructure - LT Amazonas 29,971 27,434 Deferred income tax on accounting adjustments - 56,208 Provision for profit sharing of employees 36,915 23,704 Taxes with enforceability suspended (1) 258,246 12,872 Amortized Goodwill-TIM Fiber (370,494) (370,494) Derivative financial instruments (4) (154,718) (13,139) Capitalized interest - 4G (262,608) (291,783) Deemed cost – TIM S.A. (53,792) (67,748) Exclusion of ICMS from PIS and COFINS calculation basis (2) - (1,023,928) IFRS16 303,833 209,234 Accelerated depreciation (3) (266,464) - Other 20,982 87,214 550,646 24,931 Deferred income tax and social contribution on temporary differences, not yet recognized - (72,665) 550,646 (47,734) Deferred Tax Assets 550,646 - Deferred Tax liability - (47,734) (1) Mainly represented by the Fistel fee for the financial year 2020, the commencement of its payment of which was postponed, on the basis of Provisional Act 952 of April 15, 2020. (2) In March 2017, the Federal Supreme Court (“STF”) recognized the unconstitutionality of including ICMS amounts in the calculation basis of PIS and COFINS contributions. In June 2019, due to the final and unappealable decision, the amounts were recorded (see note 9). For purposes of taxation of IRPJ and CSLL, the management of the Company also supported by external legal opinions, understood to defer it until the time of the effective financial availability of the credit. In this way, deferred tax liabilities relating to the full amount, in the amount of R$ 1,039.7 million, were constituted. In August 2020, due to the procedural movement, the value was fully realized from the recalculation of the IRPJ and the CSLL, referring to the year ending in December 2019, with the objective of adding the resulting credit from this ICMS exclusion process from the calculation bases of the PIS and the COFINS to the calculation bases of said taxes. (3) As from the 1Q20, TIM S.A. excludes the portion of acceleration of depreciation of movable assets belonging to property, plant and equipment assets from the calculation basis of the IRPJ and CSLL, due to their uninterrupted use in three operating shifts, supported by technical expert report, as provided for in Article 323 of the RIR/2018, or by the adequacy to the tax depreciation provided for in IN 1700/2017. Such tax adjustment generated a deferred liability of R$ 266.5 million until December 31, 2020 and applied as of January 1, 2020. (4) In 2020, R$ 53 million of deferred tax liabilities were recorded on the gain arising from the mark-to-market of the share subscription option related to Banco C6 partnership (note 41). Expected recovery of tax credits The estimates of recoverability of tax credits were calculated taking into consideration financial and business assumptions available at the end of 2020. Based on these projections, the Company has the following expectation of recovery of credits: Deferred income tax and social contribution Tax losses and negative basis Temporary differences 2021 157,080 464,891 2022 244,156 (43,881) 2023 73,892 (77,717) 2024 onwards - (267,775) Total 475,128 75,518 550,646 The company based on a history of profitability and based on projections of future taxable results, constitutes deferred income tax credits and social contribution on all of its tax losses, negative social contribution basis and temporary differences. The Company used credits from the negative basis of social contribution in the amount of R$ 325,583 during the year ended December 31, 2020 (R$ 95,389 on December 31, 2019, including tax losses). |
11. Prepaid expenses
11. Prepaid expenses | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expenses [Abstract] | |
Prepaid expenses | 11. Prepaid expenses 2020 2019 223,394 245,524 Rentals and reinsurance 69,208 76,663 Incremental costs for obtaining customer contracts (1) 125,114 158,093 Other 29,072 10,768 Current (149,796) (175,868) Non-current 73,598 69,656 (1) It is substantially represented by incremental costs related to sales commissions paid to partners for obtaining customer contracts arising from the adoption of IFRS 15, which are deferred to the result in accordance with the term of the contract and/or economic benefit, usually from 1 to 2 years. |
12. Judicial deposits
12. Judicial deposits | 12 Months Ended |
Dec. 31, 2020 | |
Judicial Deposits [Abstract] | |
Judicial deposits | 12. Judicial deposits They are recorded at historical cost and updated according to current legislation: 2020 2019 794,755 1,006,899 Civil 315,312 355,093 Labor 149,390 245,928 Tax 181,670 203,110 Regulatory 111 111 Online attachment (*) 148,272 202,657 (*) Refer to legal blockages directly in the company's current accounts and financial investments linked to certain legal proceedings. This amount is periodically analyzed and when identified, reclassification is made to one of the other specific accounts of the legal deposit item. Civil These are court deposits to guarantee the execution of civil proceedings where the Company is challenging the amounts involved. Most of these proceedings refer to lawsuits filed by customers, involving issues of consumer rights, among others. There are some processes with differentiated matters, in which the value set by ANATEL for vacating certain transmission sub-bands is discussed, enabling the implementation of 4G technology. In this case, the restated amount, deposited in court under discussion is R$ 70,560 (R$ 69,326 on December 31, 2019). Labor These are amounts deposited in court as guarantees for the execution and the filing of appropriate appeals, where the relevant matters or amounts involved are still being discussed. The total amount has been allocated between the various claims filed by registered employees and third-party service providers. The reduction is substantially due to the closure of several court cases offset by the corresponding court filings. Tax The Company has legal deposits, relating to tax matters, made to support several ongoing legal discussions. Such deposits mainly relate to the following discussions: (a) Use of credit in the acquisition of electricity directly employed in the production process of companies, matter with positive bias in the judiciary. The restated amount of deposits regarding this discussion is R$ 34,544 (R$ 73,326 on December 31, 2019). (b) CPMF levy on loan conversion operations into the Company’s equity; recognition of the right not to collect the contribution allegedly levied on the simple change of ownership of current accounts due to merger. The restated amount of deposits regarding this discussion is R$ 8,862 (R$ 10,342 on December 31, 2019). (c) Constitutionality of the collection of the functioning supervision fee (TFF - Taxa de Fiscalização do Funcionamento R$ 18,883 ( R$ 18,855 on December 31, 2019). (d) Failure to approve the offsetting of federal debts against credits for withholding tax (“IRRF”) because it is alleged that the credits are insufficient, as well as the deposit placed to ensure the issue of a Tax Clearance Certificate. The current value of the deposits related to this discussion is R$ 11,317 (R$ 11,173 as of December 31, 2019). (e) Liability for ISS (Tax on Services) on import services and outsourced services; alleged failure to pay for land clearance and Base Transceiver Station (“BTS”) maintenance services, for ISS on the Company’s services and for ISS on co-billing services and software licensing (Blackberry). The Company´s right is to take advantage of the benefit of spontaneous declaration in order to reverse confiscatory fines for late payment. The restated amount of deposits regarding this discussion is R$ 7,843 (R$ 7,878 on December 31, 2019). (f) Accessory services provided for in the agreement 69/98 ICMS incident on the provision of communication services of the amounts charged for ACCESS, Membership, Activation, qualification, availability, subscription and use of the services, among others. The restated amount of deposits regarding this discussion is R$ 3,329 (R$ 3,457 on December 31, 2019). (g) Requirement by ANATEL of the public price for the administration of numbering resources. The restated amount of deposits regarding this discussion is R$ 3,514 (R$ 3,471 on December 31, 2019). (h) Deposit made by TIM S. A – unconstitutionality and illegality of the collection of FUST (Fund for Universalisation of Telecommunications Services). The right not to collect FUST, failing to include in its calculation base the revenues transferred by way of interconnection and EILD (Industrial Exploitation of Dedicated Line), as well as the right not to suffer the retroactive collection of the differences determined in function of not observing sum 7/2005 of ANATEL. The restated amount of deposits regarding this discussion is R$ 58,664 (R$ 57,943 on December 31, 2019). (i) ICMS – Sundry. Deposits made in several processes that discuss ICMS charges, mainly related to discussions on loan, DIFAL, exempt and non-taxed services, ICAP and Covenant 39. The restated amount of deposits regarding this discussion is R$ 14,505 (R$ 7,984 on December 31, 2019). (j) CSLL - charges related to cases of Jornal do Brasil |
13. Property, plant and equipme
13. Property, plant and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | 13. Property, plant and equipment Property, plant and equipment are stated at acquisition and/or construction cost, less accumulated depreciation and impairment losses (the latter only if applicable). Depreciation is calculated by the straight-line method, by terms that consider the expected useful lives of the assets and their residual value. On December 31, 2020 and 2019, the Company does not present indications of impairment in its fixed assets. The estimated costs of dismantling towers and equipment on rented properties are capitalized and depreciated over the estimated useful lives of these assets. The Company recognizes the present value of these costs in property, plant and equipment with a counter-entry to the liability “provision for future asset retirement”. The interest incurred in updating the provision is classified as financial expenses. Gains and losses from disposals are determined by the comparison between the amounts of these disposals and the book value upon the transaction and are recognized in "Other net operating revenues (expenses)" in the statement of income. · Changes in property, plant and equipment Balance at December 2019 Additions Write-offs Transfers Balance at December 2020 Total cost of property, plant and equipment 43,358,751 4,687,207 (616,791) - 47,429,167 Commutation / transmission equipment 22,817,681 10,464 (174,249) 3,222,020 25,875,916 Optical fiber cables 813,589 - - 64,511 878,100 Leased handsets 2,489,995 912 (7,140) 159,569 2,643,336 Infrastructure 6,096,847 92,234 (8,063) 255,554 6,436,572 Informatics assets 1,721,251 1 (9,996) 59,130 1,770,386 General use items 859,505 1 (1,544) 44,325 902,287 Right of use in leases (1) 6,933,416 1,849,539 (415,060) - 8,367,895 Land 40,794 - - - 40,794 Construction in progress 1,585,673 2,734,056 (739) (3,805,109) 513,881 - Total accumulated depreciation (25,746,587) (3,767,678) 185,796 - (29,328,469) Commutation / transmission equipment (16,389,213) (1,906,480) 165,167 - (18,130,526) Optical fiber cables (410,567) (72,046) - - (482,613) Leased handsets (2,256,863) (143,309) 1,955 - (2,398,217) Infrastructure (3,593,833) (432,549) 7,528 - (4,018,854) Informatics assets (1,565,309) (62,649) 9,988 - (1,617,970) General use items (590,658) (48,403) 1,158 - (637,903) Right-of-use in leases (940,144) (1,102,242) - - (2,042,386) Total 17,612,164 919,529 (430,995) - 18,100,698 Commutation / transmission equipment 6,428,468 (1,896,016) (9,082) 3,222,020 7,745,390 Optical fiber cables 403,022 (72,046) - 64,511 395,487 Leased handsets 233,132 (142,397) (5,185) 159,569 245,119 Infrastructure 2,503,014 (340,315) (535) 255,554 2,417,718 Informatics assets 155,942 (62,648) (8) 59,130 152,416 General use items 268,847 (48,402) (386) 44,325 264,384 Right-of-use in leases 5,993,272 747,297 (415,060) - 6,325,509 Land 40,794 - - - 40,794 Construction in progress 1,585,673 2,734,056 (739) (3,805,109) 513,881 (1) The amount of R$ 415,060 is represented by remeasurement of contracts and includes changes in the term and scope of leases and a review of the estimate in relation to low-value vehicle contracts. Balance for Dec/18 Adoption of IFRS 16 Additions Disposals Transfers Balance for Dec/19 Other changes Total cost of property, plant and equipment 33,832,803 5,256,114 4,855,684 (183,384) - (408,118) 43,353,099 Commutation/transmission equipment 20,806,249 - 17,662 (133,789) 2,121,907 - 22,812,029 Fiber optic cables 762,175 - - - 51,414 - 813,589 Leased handsets 2,313,945 - 519 (20,194) 195,725 - 2,489,995 Infrastructure (i) 6,133,810 - - (18,684) 294,851 (313,130) 6,096,847 Informatics assets 1,679,328 - - (9,366) 51,289 - 1,721,251 General use assets 796,839 - - (623) 63,289 - 859,505 Rights-of-use in leases - 5,256,114 1,772,290 - - (94,988) 6,933,416 Land 40,794 - - - - - 40,794 Construction in progress 1,299,663 - 3,065,213 (728) (2,778,475) - 1,585,673 Total of Accumulated depreciation (22,629,181) - (3,262,726) 150,972 - - (25,740,935) Commutation/transmission equipment (14,936,069) - (1,577,490) 129,998 - - (16,383,561) Fiber optic cables (345,532) - (65,035) - - - (410,567) Leased handsets (2,132,227) - (131,341) 6,705 - - (2,256,863) Infrastructure (i) (3,157,890) - (440,224) 4,281 - - (3,593,833) Informatics assets (1,512,114) - (62,561) 9,366 - - (1,565,309) General use assets (545,349) - (45,931) 622 - - (590,658) Right-of-use in leases - - (940,144) - - - (940,144) Total 11,203,622 5,256,114 1,592,958 (32,412) - (408,118) 17,612,164 Commutation/transmission equipment 5,870,180 - (1,559,828) (3,791) 2,121,907 - 6,428,468 Fiber optic cables 416,643 - (65,035) - 51,414 - 403,022 Leased handsets 181,718 - (130,822) (13,489) 195,725 - 233,132 Infrastructure (i) 2,975,920 - (440,224) (14,403) 294,851 (313,130) 2,503,014 Informatics assets 167,214 - (62,561) - 51,289 - 155,942 General use assets 251,490 - (45,931) (1) 63,289 - 268,847 Rights-of-use in leases - 5,256,114 832,146 - - (94,988) 5,993,272 Land 40,794 - - - - - 40,794 Construction in progress 1,299,663 - 3,065,213 (728) (2,778,475) - 1,585,673 The construction in progress represent the cost of projects in progress related to the construction of networks and/or other tangible assets in the period of their construction and installation, until the moment they come into operation, when they will be transferred to the corresponding accounts of these assets. The lease rights of use are represented by leased agreements of identifiable assets within the scope of IFRS16 standard. These rights refer to leases of network infrastructure, stores and kiosks, real estate, land (Network) and fiber, as below: Right-of-use in lease Network infrastructure Vehicles Shops & kiosks & real estate Land (Network) Fiber Total Balances at December 31, 2019 3,172,142 6,988 479,472 1,539,913 794,757 5,993,272 Additions for the year 492,771 4,926 142,174 251,886 957,782 1,849,539 Remeasurement (196,967) (7,426) (114,726) (89,335) (6,606) (415,060) Depreciation (448,046) (4,488) (106,658) (201,555) (341,495) (1,102,242) Balances at December 31, 2020 3,019,900 - 400,262 1,500,909 1,404,438 6,325,509 Amortization percentage per year - % 12.41 38.35 22.60 9.87 24.69 Depreciation rates Annual rate % Commutation / transmission equipment 8–14.29 Fiber optic cables 4–10 Leased handsets 14.28–50 Infrastructure assets 4–20 Informatics assets 10–20 General use assets 10–20 In 2020, pursuant to IAS 16, the Company assessed the useful life estimates for their fixed assets, and concluded that there were no significant changes or alterations to the circumstances on which the estimates were based that would justify changes to the useful lives currently in use. |
14. Intangible assets
14. Intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets and goodwill [abstract] | |
Intangible assets | 14. Intangible assets Intangible assets are measured at historical cost less accumulated amortization and impairment losses (if applicable) and reflect: (i) the purchase of authorizations and rights to use radio frequency bands, and (ii) software in use and/or development. Intangible assets also include: (i) infrastructure right-of-use of other companies, and (ii) goodwill on expectation of future profits in purchases of companies. Amortization charges are calculated using the straight-line method over the estimated useful life of the assets contracted and over the terms of the authorizations. The useful life estimates of intangible assets are reviewed regularly. Financial charges on funds raised generically (with no specific allocation), used to obtain a qualifying asset, which is an asset that necessarily demands a substantial period of time to become ready for intended use is capitalized as part of this asset’s cost when it is probable that will result in future economic benefits to the Entity and such costs can be reliably measured. Within this concept, we had the capitalization of costs for the acquisition of the 4G license and cleaning of the frequency of the 700 MHZ band acquired until September/19, when the asset was considered in operation by the management and from this date, the capitalization of interest and charges on this asset was terminated. These costs are amortized over the estimated useful lives. On December 31, 2020, and 2019, the Company does not present indications of impairment in its intangible assets of defined and indefinite useful life. The values of permits for the operation of SMP and rights to use radio frequencies, as well as software (a) Changes in intangible assets Balance at December 2019 Additions/ Amortization Write-offs Transfers Balance at December 2020 Total cost of intangible assets 30,229,359 1,215,636 (945) - 31,444,050 Software licenses 18,184,382 - (939) 934,072 19,117,515 Authorizations 9,811,794 32,105 (6) 87,355 9,931,248 Goodwill 1,527,219 - - - 1,527,220 Infrastructure right-of-use - LT Amazonas 169,327 8,539 - - 177,866 Other assets 327,360 - - 2,266 329,626 Intangible assets under development 209,276 1,174,992 - (1,023,693) 360,575 Total accumulated amortization (20,561,032) (1,856,917) 974 - (22,416,975) Software licenses (15,093,166) (1,286,295) 974 - (16,378,487) Authorizations (5,278,413) (537,828) - - (5,816,241) Infrastructure right-of-use - LT Amazonas (60,204) (7,762) - - (67,966) Other assets (129,249) (25,032) - - (154,281) Total 9,668,326 (641,281) 29 - 9,027,075 Software licenses (c) 3,091,216 (1,286,295) 35 934,072 2,739,028 Authorizations (f) 4,533,381 (505,723) (6) 87,355 4,115,007 Goodwill (d) 1,527,219 - - - 1,527,220 Infrastructure right-of-use - LT Amazonas (e) 109,123 777 - - 109,900 Other assets 198,111 (25,032) - 2,266 175,345 Intangible assets under development 209,276 1,174,992 - (1,023,693) 360,575 Balance for Dec/18 Additions/ Amortization Transfers Other Changes (g) Balance for Dec/19 Total cost of intangible assets 29,366,779 961,213 - (98,633) 30,229,359 Right to use software 17,142,641 - 1,041,741 - 18,184,382 Authorizations 7,638,970 26,968 2,255,625 (109,770) 9,811,793 Goodwill 1,527,219 - - - 1,527,219 Right to use infrastructure - LT Amazonas 198,202 - - (28,874) 169,328 Other assets 307,654 - 19,708 - 327,362 Intangible assets under development 2,552,093 934,245 (3,317,074) 40,011 209,275 Accumulated amortization (18,684,775) (1,876,258) - - (20,561,033) Right to use software (13,681,086) (1,412,080) - - (15,093,166) Authorizations (4,845,642) (432,771) - - (5,278,413) Right to use infrastructure - LT Amazonas (52,441) (7,763) - - (60,204) Other assets (105,606) (23,644) - - (129,250) Total 10,682,004 (915,045) - (98,633) 9,668,326 Right to use software (c) 3,461,555 (1,412,080) 1,041,741 - 3,091,216 Authorizations 2,793,328 (405,803) 2,255,625 (109,770) 4,533,380 Goodwill (d) 1,527,219 - - - 1,527,219 Right to use infrastructure - LT Amazonas (e) 145,761 (7,763) - (28,874) 109,124 Other assets 202,048 (23,644) 19,708 - 198,112 Intangible assets under development (f) 2,552,093 934,245 (3,317,074) 40,011 209,275 Intangible assets under development represents the cost of projects in progress related to the acquisition of 4G authorizations and/or other intangible assets during the period of their construction and installation, up to the moment when they enter into operation, whereupon they will be transferred to the corresponding accounts for these assets. In addition, these intangible assets under development were assessed for impairment (b) Amortization rates Annual rate % Software licenses 20 Authorizations 5–50 Right to use infrastructure 5 Other assets 7–10 (c) Software licenses Software maintenance costs are recognized as an expense, as incurred. Development costs that are directly attributable to software product design and testing, and are identifiable and exclusive, controlled by the Group, are recognized as intangible assets when the capitalization criteria are met. Directly attributable costs that are capitalized as part of the software product are related to employee costs directly allocated in its development. (d) Goodwill registered in previous years The Company has the following goodwill, based on the expected future profitability on December 31, 2020 and 2019: Goodwill from TIM Fiber SP and TIM Fiber RJ acquisitions TIM Fiber SP Ltda. and TIM Fiber RJ. S.A. were merged into TIM Celular S.A. on August 29, 2012. TIM Celular S.A. recorded the goodwill allocation related to the purchase of the companies TIM Fiber SP and TIM Fiber RJ, at the end of the purchase price allocation process, in the amount of R$1,159,649. Goodwill acquisition of "Intelig" by TIM Participações Goodwill from the acquisition of minority interests in TIM Sul and TIM Nordeste Impairment test As required by the accounting standard, the Company tests goodwill on business combinations involving TIM Group companies annually for impairment, and the methods and assumptions used by Management in the impairment testing of goodwill mentioned above are summarized below: The Management of the Company understands that the smallest cash generating unit for impairment On December 31, 2020, the impairment For the calculation of fair value, the level of hierarchy within which the measurement of the fair value of the asset (cash generating unit) is classified was considered. For the company, as there is only one CGU this was classified in its entirety as Level 1, for the disposal costs we consider that it is irrelevant considering the variation between the fair value level 1 and the book value of the cash generating unit. The fair value of Level 1 financial instruments comprises the instruments traded in active markets and based on quoted market prices on the balance sheet date. A market is considered active when the quoted prices are readily and regularly available from an Exchange, distributor, broker, industry group, pricing service or regulatory agency, and these prices represent actual market transactions which occur regularly on a purely commercial basis. Its securities are traded on BOVESPA with code (TIMS3) and have a regular trading volume that allows the measurement (Level 1) as the product between the quoted price for the individual asset or liability and the amount held by the entity. The measurement was made based on the value of the share at the balance sheet closing date and sensitivity tests were also performed and in none of the scenarios was identified any indication of impairment (e) Infrastructure right-of-use - LT Amazonas The company has signed infrastructure rights agreements with companies that operate electricity transmission lines in the Northern Region of Brazil. These contracts fall within the scope of IFRIC 4 and are classified as leases. Additionally, the Company has signed network infrastructure sharing agreements with Telefónica Brasil S.A., also in the North Region. In these, the two operators optimize resources and reduce their respective operating costs (note 15). (f) Authorizations In this item are recorded the values related to the acquisition of Lot 2 in the auction of the 700 MHz band in the amount of R$ 1,739 million, in addition to the costs related to the cleaning of the frequency of the 700 MHZ band acquired, which totaled R$ 1,199 million, in nominal values. As it is a long-term obligation, the amount payable of R$ 1,199 million was reduced by R$ 47 million by applying the concept of adjustment to present value (“AVP”). The aforementioned license falls under the concept of qualifying asset. Consequently, the financial charges on resources raised without a specific destination, used for the purpose of obtaining a qualifying asset, were capitalized between the years 2014 to 2019. In September 2019, the asset was considered in operation by the management and from this date, the capitalization of interest and charges on this asset was terminated. The capitalized amount in the year ended December 31, 2019 was R$ 38,375. (g) Other changes include i) Remeasurement of authorization amounts, pursuant to Anatel resolution 695/18, in the amount of R$ 109,770. (ii) Interest capitalized as a result of the acquisition of the 4G license, pursuant to IAS 23, in the amount of R$ 40,011, since the respective license is a qualifying asset for interest capitalization. |
15. Leases
15. Leases | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of financial assets [abstract] | |
Leases | 15. Leases Leases that the Company, as a lessee, holds substantially all the risks and rewards of ownership are classified as leases. They are capitalized at the lease's commencement at the lower of the fair value of the leased asset and the present value of payments provided for in contract, and lease liability as a counterparty. Interest related to the leases is taken to income statement as financial expenses over the term of the contract. Leases in which the Company, as a lessor, transfers substantially all the risks and rewards of ownership to the other party (lessee) are classified as finance leases. These lease values are transferred from the intangible assets of the Company and are recognized as a lease receivable at the lower of the fair value of the leased item and/or the present value of the receipts provided for in the agreement. Interest related to the lease is taken to income statement as financial revenue over the contractual term. Asset leases are financial assets or liabilities classified and/or measured at amortized cost. Assets 2020 2019 LT Amazonas 162,198 156,378 162,198 156,378 Current (5,357) (4,931) Non-current 156,841 151,447 LT Amazonas As a result of the contract signed with LT Amazonas, the Company signed network infrastructure sharing agreements with Telefónica Brasil S.A. In these agreements, the company and Telefónica Brasil S.A. share investments made in the Northern Region of Brazil. The company has monthly amounts receivable from Telefónica Brasil S.A. for a period of 20 years, adjusted annually by the IPC-A. The discount rate used to calculate the present value of the installments due is 12.56% per annum, considering the date of signing the agreement. The table below includes the schedule of cash receipts for the agreement currently in force. The amounts represent the cash receipts estimated in the signed agreements and are stated at their nominal amounts. It should be noted that these balances differ from those shown in the books since, in the case of the latter, the amounts are shown at their present values: Nominal values Present value Up to December 2021 24,937 5,357 Jan 2022–Dec 2025 99,749 32,010 January 2026 onwards 190,633 124,831 315,319 162,198 Liabilities 2020 2019 LT Amazonas (i) 290,385 276,233 Sale of Towers ( leaseback 1,256,410 1,192,596 Other (iv) 115,027 115,973 Subtotal 1,661,822 1,584,802 Other leases (iii): Lease-network 3,252,463 3,294,261 Lease - Vehicles - 3,005 Lease - Stores & kiosks 175,660 255,857 Lease – Real estate 259,330 243,921 Lease - Land (Network) 1,606,567 1,600,456 Lease – Fiber 1,422,993 798,568 Subtotal lease IFRS 16 6,717,013 6,196,068 Total 8,378,835 7,780,870 Current (1,054,709) (873,068) Non-current 7,324,126 6,907,802 The amount of interest paid in the year ended December 31, 2020 related to IFRS 16 is R$ 567,261 (R$ 592,323 in 2019). Changes to the lease liability are shown in note 36. i) LT Amazonas The Company executed agreements for the right to use the infrastructure of companies that operate electric power transmission lines in Northern Brazil (“LT Amazonas”). The terms of these agreements are for 20 years, counted from the date on which the assets are ready to operate. The contracts provide for monthly payments to the electric power transmission companies, restated annually at the IPCA. The discount rate used to calculate the present value of the installments due is 14.44% per annum, considering the signing date of agreements with transmission companies. The table below presents the future payment schedule for the agreements in force, representing the estimated disbursements (nominal values) in the signed agreements. These nominal balances differ from those shown in the books since, in the case of the latter, the amounts are shown at present value: Nominal values Present value Up to December 2021 47,366 13,772 Jan 2022–Dec 2025 189,465 51,915 January 2026 onwards 362,223 224,698 599,054 290,385 ii) Sale and leaseback of Towers The Company entered into two Sales Agreements with American Tower do Brasil Cessão de Infraestruturas Ltda. (“ATC”) in November 2014 and January 2015 for up to 6,481 telecommunications towers then owned by TIM Celular, for an amount of approximately R$3 billion, and a Master Lease Agreement (“MLA”) for part of the space on these towers for a period of 20 years from the date of transfer of each tower, under a sale and leaseback transaction, with a provision for monthly rental amounts depending on the type of tower (greenfield or rooftop). The sales agreements provide for the towers to be transferred in tranches to ATC, due to the need to meet certain conditions precedent. In total, 5,873 transfers of towers occurred, being 54, 336 and 5,483 in the years 2017, 2016 and 2015, respectively. This transaction resulted in a sales amount of R$ 2,651,247, of which R$ 1,088,390 was booked as deferred revenue and will be amortized over the period of the contract (note 22). The discount rates used at the date of the transactions, ranging from 11.01% to 17.08% per annum, were determined based on observable market transactions that the company (the lessee) would have to pay on a similar lease and/or loan. The table below presents the future payment schedule for the agreements in force, representing the estimated disbursements (nominal values) in the agreement entered into with ATC. These balances differ from those shown in the books since, in the case of the latter, the amounts are shown at present value: Nominal values Present value Up to December 2021 201,457 28,576 Jan 2022–Dec 2025 805,829 163,141 January 2026 onwards 1,936,060 1,064,693 2,943,346 1,256,410 (iii) Other leases: In addition to the lease operations mentioned above, the Company also has lease agreements that qualify within the scope of IFRS16. The table below presents the future payment schedule for the agreements in force, representing the estimated disbursements (nominal values) in the signed agreements. These balances differ from those shown in the books since, in the case of the latter, the amounts are shown at present value: Up to Dec 2021 Jan 2022–Dec 2025 Jan 2026 onwards Nominal values Present value Total other leases 1,507,562 4,826,489 2,937,862 9,271,913 6,717,013 Lease - network 663,013 2,287,363 1,591,291 4,541,667 3,252,463 Lease - stores & kiosks 67,535 124,815 4,257 196,607 175,660 Lease - Real estate 59,348 181,870 131,678 372,896 259,330 Lease - Land (Network) 304,086 1,046,093 1,210,636 2,560,815 1,606,567 Lease – Fiber 413,580 1,186,348 - 1,599,928 1,422,993 The present value, principal and interest value on December 31, 2020 for the above contracts was estimated month-to-month, based on the average incremental rate of the Company’s loans, namely 9.06% (10.55% in 2019). The lease amounts considered low value or lower in the 12-month period recognized as rental expense on December 31, 2020 is R$ 28,523 (R$ 82,110 on December 31, 2019). (iv) It is substantially represented by commercial leasing transactions in transmission towers. |
16. Regulatory credits recovera
16. Regulatory credits recoverable | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Credits Recoverable | |
Regulatory credits recoverable | 16. Regulatory recoverable These refer to Fistel credit amounts arising from the reduction of the client base, which may be offset by future changes in the base, or used to reduce future obligations, and are expected to be used in the reduction of the TFF contribution (operating supervision fee) due to Fistel. On December 31, 2020, this credit is R$ 43,906 (R$ 33,090 in 2019). |
17. Suppliers
17. Suppliers | 12 Months Ended |
Dec. 31, 2020 | |
Suppliers [Abstract] | |
Suppliers | 17. Suppliers Accounts payable to suppliers are obligations payable for goods or services that were acquired in the usual course of business. They are initially recognized at fair value and, subsequently, measured at amortized cost using the effective interest rate method. Given the short maturity of these obligations, in practical terms, they are usually recognized at the value of the corresponding invoice. 2020 2019 3,128,732 3,923,035 Domestic currency 2,932,486 3,769,298 Suppliers of materials and services (a) 2,839,547 3,667,152 Interconnection (b) 64,066 67,396 Roaming (c) 212 441 Co-billing (d) 28,661 34,309 Foreign currency 196,246 153,737 Suppliers of materials and services (a) 148,888 116,057 Roaming (c) 47,358 37,680 Current 3,128,732 3,923,035 (a) Represents the amount to be paid to suppliers in the acquisition of materials and in the provision of services applied to the tangible and intangible asset or for consumption in the operation, maintenance and administration, in accordance with the terms of the contract between the parties. (b) Refers to as the use of the network of other fixed and mobile operators such cases where calls are initiated on the TIM network and terminated on the other operators. (c) Refers to calls made when the customer is outside their registration area and is considered a visitor on the other network. (d) Refers to calls made by the customer when choosing another long-distance operator. |
18. Authorizations payable
18. Authorizations payable | 12 Months Ended |
Dec. 31, 2020 | |
Authorizations Payable [Abstract] | |
Authorizations payable | 18. Authorizations payable On December 31, 2020, the Company has the following commitments with ANATEL: 2020 2019 Renewal of authorizations (i) 188,498 199,363 Updated ANATEL liability (ii) 146,949 126,974 335,447 326,337 Current (102,507) (88,614) Non-current 232,940 237,723 (1) To provide the SMP, the Company obtained authorizations of the right to use radio frequency for a fixed term, renewable for another 15 (fifteen) years. In the option for the extension of the right of this use, it is due the payment of the amount of 2% on the net revenue of the region covered by the authorization that ends each biennium. On December 31, 2020, the Company had balances falling due related to renovation of authorizations in the amount of R$ 188,498 (R$ 199,363 on December 31, 2019). (2) On December 5, 2014, the company signed the authorization term of the 700 MHz band and paid the equivalent of R$ 1,678 million, recording the remaining balance in the amount of R$ 61 million as commercial liability, according to the payment method provided for in the notice. On June 30, 2015, the company filed a lawsuit questioning the collection of the excess nominal value of R$ 61 million (R$ 147 million on December 31, 2020) which is still pending trial. The primary authorizations held by TIM S.A. on December 31, 2020, as well as their expiration dates, are shown in the table below: Expiry date Terms of authorization 450 MHz 800 MHz, 900 MHz and 1,800 MHz Additional frequencies 1800 MHz 1900 MHz and 2100 MHz (3G) 2500 MHz V1 band (4G) 2500 MHz P** band (4G) 700 MHz (4G) Amapá, Roraima, Pará, Amazonas and Maranhão - Mar 2031* Apr 2023 Apr 2023 Oct 2027 Part of AR92 (PA) – Feb 2024* Dec 2029 Rio de Janeiro and Espírito Santo Oct 2027 Mar 2031* ES - Apr 2023 Apr 2023 Oct 2027 Part of AR21 (RJ) – Feb 2024* Dec 2029 Acre, Rondônia, Mato Grosso, Mato Grosso do Sul, Tocantins, Distrito Federal, Goiás, Rio Grande do Sul (except for the municipality of Pelotas and region) and municipalities of Londrina and Tamarana in Paraná PR – Oct 2027 Mar 2031* Apr 2023 Apr 2023 Oct 2027 Part of AR61 (DF) – Feb 2024* Dec 2029 São Paulo - Mar 2031* Countryside – Apr 2023 Apr 2023 Oct 2027 - Dec 2029 Paraná (except counties of Londrina and Tamarana) Oct 2027 Sep 2022* Apr 2023 Apr 2023 Oct 2027 AR41, except Curitiba and the Metropolitan Region – Feb 2024* AR41, Curitiba and Metropolitan Region – July 2031 Dec 2029 Santa Catarina Oct 2027 Sep 2023* Apr 2023 Apr 2023 Oct 2027 - Dec 2029 Municipality and region of Pelotas, in the state of Rio Grande do Sul - Apr 2024* - Apr 2023 Oct 2027 - Dec 2029 Pernambuco - May 2024* - Apr 2023 Oct 2027 Part of AR81 – July 2031 Dec 2029 Ceará - Nov 2023* - Apr 2023 Oct 2027 - Dec 2029 Paraíba - Dec 2023* - Apr 2023 Oct 2027 - Dec 2029 Rio Grande do Norte - Dec 2023* - Apr 2023 Oct 2027 - Dec 2029 Alagoas - Dec 2023* - Apr 2023 Oct 2027 - Dec 2029 Piauí - Mar 2024* - Apr 2023 Oct 2027 - Dec 2029 Minas Gerais (except the municipalities of Sector 3 of the PGO for 3G radio frequencies and leftovers) - Apr 2028* Apr 2023 Apr 2023 Oct 2027 Part of AR31 – Feb 2030* Dec 2029 Bahia and Sergipe - Aug 2027* - Apr 2023 Oct 2027 - Dec 2029 * Terms already renewed for 15 years, therefore without the right to a new renewal period. ** Only complementary areas in specific states. |
19. Loans and financing
19. Loans and financing | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings [abstract] | |
Loans and financing | 19. Loans and financing They are classified as financial liabilities measured at the amortized cost and represented by non-derivative financial liabilities that are usually traded before maturity. In the initial recognition, they are recorded at the fair value and after the initial recognition they are measured based on the effective interest rate method. Appropriations of financial expenses according to the effective interest rate method are recognized in income statement under financial expenses. Description Currency Charges Maturity 2020 2019 BNDES (1) URTJLP TJLP at TJLP + 2.52% p.a. July 2022 - 240,008 BNDES (1) UM143 SELIC + 2.52% p.a. July 2022 - 374,461 BNDES (PSI) (1) R$ 3.50% p.a. Jan 2021 - 18,071 KFW Finnvera (2) USD Libor 6M+ 0.75% p.a. Jan 2024–Dec 2025 344,125 330,217 Debentures (2) BRL 104.1% CDI July 2020 - 1,025,965 Cisco Capital (2) USD 2.50% p.a. Dec 2020 - 40,366 BAML (2) EUR 0.279% p.a. Aug 2021 570,844 - Scotland (2) USD 1.734% p.a. Aug 2021 1,030,761 - BNP Paribas (2) USD 2.822% p.a. Jan 2022 399,302 Total 2,345,032 2,029,088 Current (1,689,385) (1,384,180) Non-current 655,647 644,908 Warranties (1) (2) The Company's financing, contracted with BNDES, was obtained for the expansion of the mobile telephone network and had restrictive contractual clauses that provide for the fulfilment of certain financial and non-financial rates calculated every six months. In February 2020 the company made the full prepayment of financing obtained from BNDES, however there are still contracts in effect with the bank regulating the lines of credit available for withdrawal that are shown in the table below: Financial indices are: (1) Shareholders' equity over total assets; (2) EBITDA on net financial expenses; (3) Total financial debt on EBITDA and (4) Short-term net financial debt to EBITDA. The Company has been complying with all the established financial ratios. In May 2018, the company obtained a new credit line in the amount of R$ 1,500 million from BNDES to finance investments in fixed assets (Capex) for the 2017-2019 triennium with a term of use until March 2022. As of March 2019, with the hiring of Finame Direto, the Company replaced the sub-credit "B" of this contract (equivalent to R$ 390 million). This new credit line in the amount of R$ 390 million with Finame, a company of the BNDES system aimed at improving the conditions of one of the sub-credits, of equal value, contracted with BNDES in May 2018, both in terms of term and cost. The cost of this line is IPCA plus interest of up to 2.99% per year and its availability extends until March 2022, without any disbursement obligations. In January 2020, a new credit line in the principal amount of R$ 752 million, was secured between Banco do Nordeste do Brasil S.A. as a creditor and TIM S.A. as a borrower, guaranteed by bonds and receivables. The agreement has a total term of 8 years, 3 of which are grace period and 5 of amortization, to subsidize company´s capex plan for the next 3 years (2020-2022) in the Northeast region. The credit line is divided into two tranches: i) R$325 million to IPCA + 1.44% p.a. or IPCA +1.22% considering 15% of compliance bonuses; and ii) R) 427 million to IPCA + 1.76% p.a. or IPCA +1.48% considering 15% of compliance bonuses. Disbursement in installments scheduled for 2021 and 2022. In July 2020, the Company settled on maturity the debentures issues in January 2019, in the amount of R$ 1,018 million. The table below shows the position of financing and available lines of credit: Remaining amount Type Currency Opening date Term Total amount Amount used up to December 31, 2020 BNDES (i) TJLP May 2018 Mar 2022 1,090,000 1,090,000 - BNDES (ii) TJLP May 2018 Mar 2022 20,000 20,000 - FINAME (iii) IPCA Mar 2019 Mar 2022 390,000 390,000 - BNB (iv) IPCA Jan 2020 June 2023 752,479 752,479 - Total R$: 2,252,479 2,252,479 - Objective: (i) Support to TIM's investment plan for the years 2017 to 2019 including, but not limited to, the acquisition of national equipment (ii) Investments in social projects within the community (iii) Exclusive application in the acquisition of machinery and equipment, industrial systems and/or other components of national manufacture. (iv) Support to TIM's investment plan for the years 2020 to 2022 in the region of operation of Banco do Nordeste do Brasil As a result of the more efficient loan and financing management strategy, in February 2020 the Company pre-paid its total debt with BNDES at a cost of 171% of the CDI, replacing it with new loans with Bank of America Merrill Lynch (BAML) in the amount of R$ 425 million and The Bank of Nova Scotia (Scotia) in the amount of R$ 375 million. Both loans were obtained in foreign currency and have an average cost of 108.3% of the CDI rate. In April 2020, the Company contracted a new loan in foreign currency with the Bank of Nova Scotia in the amount of R$ 574.2 million, with a cost of 155% of the CDI and a term of one year, aimed to strengthen the cash during the period of the crisis generated by the pandemic. In May 2020, Company signed a new loan transaction in foreign currency with BNP Paribas in the amount of R$ 426 million at a cost of 155% of the CDI and a term of 1.5 years. The cash inflow related to this loan occurred in July 2020. The operation aimed to strengthen cash reserves during the crisis period generated by the pandemic. The Company has swap operations, protecting itself from the risks of devaluation of the real in relation to the US dollar and euro in its loans and financing operations. However, it does not apply to “ hedge Loans and financing on December 31, 2020 due in long-term is in accordance with the following schedule: 2022 483,001 2023 86,834 2024 58,308 2025 27,504 655,647 The nominal value of the loans is consistent with their respective payment schedule. Nominal value 2021 1,689,385 2022 483,001 2023 86,834 2024 58,308 2025 27,504 2,345,032 Fair value of loans In Brazil, there is no consolidated long-term debt market with the characteristics verified in the financing obtained from Cisco and KFW Finnvera, which has the Finnish development agency Finnvera as guarantor. Both are financing for the purchase of equipment and, therefore, have a character of subsidy and promotion of commercial activity between the company and certain suppliers. For the purposes of fair value analysis, considering the characteristics of this transaction, the company understands that its fair value is equal to that recorded on the balance sheet. With respect to proceeds contracted with the Bank of Nova Scotia, Bank of America and BNP Paribas, the fair value of these loans is the present value the swap contracts that protect the company from changes in exchange rates and interest. The fair value of the operations on December 31, 2020 are, respectively, R$ 1,035,473, R$ 569,917 and R$ 409,935. |
20. Indirect taxes, charges and
20. Indirect taxes, charges and contributions payable | 12 Months Ended |
Dec. 31, 2020 | |
Indirect Taxes, Charges And Contributions Payable [Abstract] | |
Indirect taxes, charges and contributions payable | 20. Indirect taxes, charges and contributions payable 2020 2019 Indirect taxes, fees and contributions payable 938,880 466,603 ICMS 359,498 377,105 Taxes and fees - ANATEL (1) 509,087 22,009 Service tax – ISS 66,082 61,673 Other 4,213 5,816 Current portion (935,778) (463,606) Non-current portion 3,102 2,997 (1) Fistel fee for the financial year 2020 has been deferred from the start of its payment, on the basis of Provisional Act 952 of April 15, 2020. Until December 31, 2020, the fee was not paid based on an injunction issued by the Regional Court of the 1st Region. |
21. Direct taxes, charges and c
21. Direct taxes, charges and contributions payable | 12 Months Ended |
Dec. 31, 2020 | |
Direct Taxes, Charges And Contributions Payable [Abstract] | |
Direct taxes, charges and contributions payable | 21. Direct taxes, charges and contributions payable Current income tax and social contribution charges are calculated on the basis of the tax laws enacted, or substantially enacted, up to the balance sheet date. The legislation allows companies to opt for quarterly or monthly payment of income tax and social contribution. Since 2016 the company has chosen to make the monthly payment of income tax and social contribution. 2020 2019 Direct taxes, fees and contributions payable 508,743 508,615 Income tax and social contribution 313,145 346,097 PIS / COFINS 154,353 130,327 Other (1) 41,245 32,191 Current (296,299) (296,305) Non-current 212,444 212,310 (1) The breakdown of this account mainly refers to the company's adhesion to the Tax Recovery Program - REFIS from 2009 for payment of installments of the outstanding debts of federal taxes (PIS – Social Integration Program, COFINS – Contribution to Social Security Financing, IRPJ – Corporate Income Tax and CSLL – social contribution on Net Income), whose fina l |
22. Deferred revenue
22. Deferred revenue | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Revenues [Abstract] | |
Deferred revenue | 22. Deferred revenues 2020 2019 Deferred revenues 1,021,924 1,109,112 Services to be rendered - pre-paid (1) 189,482 186,310 Government grants (2) 24,732 42,159 Network Swap (3) - 2,713 Prepaid revenues 11,163 11,651 Deferred revenue on sale of towers (4) 788,921 843,017 Contractual liabilities (5) 7,626 23,262 Current installment (266,436) (281,930) Non-current installment 755,488 827,182 (1) Referring to the recharge of voice credits and data not yet used by customers relating to prepaid system services that are appropriate to the result when the actual use of these services by clients. (2) Referring to the release of resources related to the financing line with BNDES (Investment Support Program-BNDES PSI). The sum of grants granted by BNDES up to December 31, 2020 is R$ 203 million and the outstanding amount on December 31, 2020 is R$ 24,732 (R$ 42,159 on December 31, 2019). This amount is being amortized by the useful life of the asset being financed and appropriated in the group of “other net revenues (expenses)” (note 28). (3) Mainly referring to contracts for the onerous and reciprocal transfer of optical fiber infrastructure. (4) Referring to the amount of revenue to be appropriated by the sale of the towers (note 15). (5) Contract with clients. The balance of contractual assets and liabilities is as follows: 2020 2019 Accounts receivable included in trade accounts receivable 2,000,764 2,413,865 Contractual assets (note 6) 14,914 15,142 Contractual liability (7,626) (23,262) The contracts with customers gave rise to the allocation of discounts under combined loyalty offers, where the discount may be given on equipment and / or service, generating a contractual asset or liability, respectively, depending on the nature of the offer in question. Summary of the main variations in the period: Contractual assets (liabilities) Balance at January 1, 2020 (8,120) Additions (369) Write-offs 15,777 Balance at December 31, 2020 7,288 The balances of contractual assets and liabilities are expected to be realized according to the table below: 2021 2022 Contractual assets (liabilities) 8,611 (1,323) The Company in line with paragraph 121 of IFRS 15, is not presenting the effects of information on customer contracts with terms of duration of less than 1 year. |
23. Provision for legal and adm
23. Provision for legal and administrative proceedings | 12 Months Ended |
Dec. 31, 2020 | |
Provision For Legal And Administrative Proceedings [Abstract] | |
Provision for legal and administrative proceedings | 23. Provision for legal and administrative proceedings The Company is an integral part in judicial and administrative proceedings in the civil, labor, tax and regulatory spheres, which arise in the normal course of its business. The provision is constituted based on the opinions of the company's legal advisors and management, for amounts considered sufficient and adequate to cover losses and risks considered probable. Situations where losses are considered probable and possible are recorded and disclosure, respectively, by their updated values, and those in which losses are considered remote are not disclosed. The provision for judicial and administrative proceedings constituted, updated, is composed as follows: 2020 2019 Provision for legal and administrative proceedings 886,947 840,637 Civil (a) 245,432 212,702 Labor (b) 213,026 261,837 Tax (c) 399,288 333,717 Regulatory (d) 29,201 32,381 The changes in the provision for judicial and administrative proceedings are summarized below: December 2019 Additions, net of reversals Payments Inflation adjustment December 2020 840,637 322,565 (413,634) 137,379 886,947 Civil (a) 212,702 224,417 (266,872) 75,185 245,432 Labor (b) 261,837 55,727 (138,899) 34,361 213,026 Tax (c) 333,717 45,659 (7,792) 27,704 399,288 Regulatory (d) 32,381 (3,238) (71) 129 29,201 December 2018 Additions, net of reversals Payments Monetary adjustment December 2019 849,408 547,691 (715,203) 158,741 840,637 Civil (a) 111,301 348,012 (335,640) 89,028 212,701 Labor (b) 435,438 96,235 (301,971) 32,136 261,838 Tax (c) 271,214 103,354 (77,341) 36,490 333,717 Regulatory (d) 31,455 90 (251) 1,087 32,381 The Company is subject to several legal actions and administrative procedures proposed by consumers, suppliers, service providers and consumer protection agencies and treasury agencies, which deal with various matters that arise in the normal course of the business. The main processes are summarized below: a. Civil proceedings a. 1 Consumer lawsuits The Company is a party in lawsuits related to various claims filed by consumers, in the judicial and administrative spheres. The aforementioned actions in the amount of R$ 139,429 (R$ 135,290 on December 31, 2019) refer mainly to alleged improper collection, cancellation of contract, quality of services, defects and failures in the delivery of handsets and improper inclusion in debtors’ lists. a.2 Consumer protection agencies TIM is a party to legal and administrative lawsuits filed by the Public Prosecutor's Office, Procon and other consumer protection agencies, arising from consumer complaints, in which, it is discussed: (i) alleged failures in the provision of network services; (ii) questions of quality in service; (iii) alleged violations of the SAC [customer service hotline] decree; (iv) alleged contractual violations; (v) alleged misleading advertising and; (vi) discussion of the collection of loyalty fines, in cases of theft and theft of the device. The amounts involved are equivalent to R$ 51,713 (R$ 31,221 on December 31, 2019). a.3 Former trading partners TIM is a defendant in lawsuits proposed by former trade partners claiming, among others, amounts on the basis of alleged non-compliance with agreements. The amounts involved are equivalent to R$ 18,634 (R$ 12,812 on December 31, 2019). a.4 Other TIM is a defendant in other actions of essentially non-consumer objects proposed by the most diverse agents from those described above, in which, among others, it is discussed: (i) renewal of lease agreements; (ii) shareholding subscription shares; (iii) indemnity lawsuits; (iv) alleged breach of contract and; (v) collection lawsuits. The amounts involved are equivalent to R$ 33,682 (R$ 27,039 on December 31, 2019). a.5 Social and environmental and infrastructure The Company is a party to lawsuits involving various agents who discuss aspects related to licensing, among which environmental licensing and structure licensing (installation/operation). The amounts involved are equivalent to R$ 610 (R$ 498 on December 31, 2019). a.6 ANATEL The Company is a party to lawsuits against ANATEL, in which it is discussed: (i) debit related to the collection of 2% of revenues from Value - Added Services-VAS and interconnection; (ii) pro-rata inflation adjustment applied to the price proposal defined in the notice for the use of 4G frequencies and (iii) alleged non-compliance with service quality targets. The amounts involved are equivalent to R$ 1,364 (R$ 1,342 on December 31, 2019). b. Labor proceedings The main labor claims with probable risk are summarized below: These are processes involving several labor claims filed by both former employees, in relation to matters such as salary differences, levelling, payments of variable compensation, additional legal and working hours, as well as by former employees of service providers, all of whom, taking advantage of the labor laws in force require it to keep the Company in compliance with labor obligations does not abided by contractors hired for that purpose. From the total of 1,873 Labor claims on December 31, 2020 (2,408 on December 31, 2019) filed against the company, the majority relate to claims involving former employees of service providers followed by lawsuits from employees of their own. The provision of these lawsuits totals R$ 213,026, adjusted for inflation (R$ 252,968 at December 31, 2019). c. Tax lawsuits 2020 2019 Federal taxes 155,495 State taxes 135,891 93,790 Municipal taxes 5,633 8,227 TIM S.A. proceedings (purchase price allocation) 75,617 76,205 399,288 333,717 The total recorded provision is substantially composed of the following processes whose indicated values are estimated by the indices established by the federal government for late taxes, being linked to the change in the SELIC rate: Federal taxes The provision is substantially composed of the following processes: (i) The provision for TIM S.A. supports fifty-five proceedings, relating to questions involving the impact on operations of CIDE, CPMF, CSLL, IRRF, spontaneous denunciation of the fine in the payment of FUST and ancillary obligations. Of this total, the amounts involved in the legal proceedings that seek recognition of the right not to collect the CPMF allegedly incident on simultaneous transactions of purchase and sale of foreign currency and exchange of account ownership arising from corporate incorporation, whose provisioned values, updated, equal to R$ 8,355 (R$ 9,560 on December 31, 2019), as well as the amount related to the fine and interest of the contribution to FUST of 2009, where the benefit of spontaneous denunciation is not being recognized, whose provisioned and updated value is R$ 14,564 (R$ 14,564 on December 31, 2019). (ii) The Company constituted a provision for a process aimed to collecting the pension contribution withheld at the rate of 11% to which, allegedly, payments made by the company to other legal entities should have been submitted as remuneration for various activities, whose provisioned and updated value is R$ 38,584 (R$ 37,977 on December 31, 2019). (iii) Additionally, in the second quarter of 2019, the company constituted the provision for the FUST process, which seeks the unconstitutionality and illegality of the collection of FUST (Telecommunications Services Universalization Fund). Lawsuit for the recognition of the right not to collect Fust, failing to include in its calculation base the revenues transferred by way of interconnection and EILD (Dedicated Line Industrial Exploitation), as well as the right not to suffer the retroactive collection of the differences determined due to not observing sum 7/2005 of ANATEL, in the amount of R$ 58,988 (R$ 58,116 on December 31, 2019). (iv) In June 2020, the company makes provision for federal compensation processes arising from a repurchase carried out in 2006, for which the documentary support was not robust enough after appraisals carried out. The amount provisioned and updated for December 2020 is R$ 5,313 (without correspondence from December/2019). State taxes The provision is substantially composed of the following processes: The provision of the TIM S.A. in support of seventy-five cases, among which the following stand out: (i) the amounts involved in the proceedings, that the question of the reversal of the amounts payable for the ICMS tax, as well as the supporting documentation for the verification of the loan are appropriate for a Company whose values are recorded up-to-date, amounting to R$ 36,491 (R$ 23,558 on December 31, 2019), (ii) the amount to be offered to tax for the provision of telecommunications services, which is up-to-date, equal to R$ 5,135 (R$ 5,037 on December 31, 2019), as well as (ii) the charges on the grounds of supposed differences in both the inputs as the output of goods in the process of the withdrawal amount of the inventory, whose values are updated to the equivalent of R$ 15,751 (R$ 15,460 on December 31, 2019); (iv) the launching of credits related to the return of cellular phones assigned under gratuitous loan, whose updated amounts are equivalent to R$ 11,125 (R$ 10,826 on December 31, 2019); (v) subsidies for the handset, whose values are updated to the equivalent of R$ 8,767 (R$ 8,644 on December 31, 2019) and (vi) amounts allegedly improperly credited relating to CIAP credits, whose updated amounts are equivalent to R$ 14,912 (without correspondence on December 31, 2019). Municipal taxes It is also worth noting the amounts involved in the assessments that questions the withholding and collection of the ISS-source of third-party services without employment relationship, as well as the collection of its own ISS corresponding to services provided in co-billing d. Regulatory processes ANATEL initiated administrative proceedings against the company for: (i) non-compliance with certain quality indicators; (ii) non-compliance with other obligations derived from the terms of authorization and; (iii) non-compliance with the SMP and STFC regulations, among others. On December 31, 2020, the amount indicated for the procedures for the determination of non-compliance with obligations (“PADOs”), considering the inflation adjustment, classified with risk of probable loss is R$ 29,201 (R$ 32,381 on December 31, 2019). e. Judicial and administrative proceedings whose losses are assessed as possible The Company has actions of a civil, labor, tax and regulatory nature involving risks of loss classified by its legal advisors and the administration as possible, for which there is no provision for legal and administrative proceedings constituted, and no adverse material effects are expected in the financial statements, according to the values presented below: 2020 2019 18,147,562 18,395,727 Civil (e.1) 1,101,332 1,032,637 Labor and Social Security (e. 2) 340,801 459,020 Tax (e.3) 16,586,353 16,196,077 Regulatory (e.4) 119,076 707,993 Legal and administrative proceedings whose losses are assessed as possible and monitored by Management are disclosed at their updated values. The main lawsuits with risk of loss classified as possible, are described below: e.1. Civil 2020 2019 Consumer lawsuits (e. 1.1) 220,347 374,860 ANATEL (e.1.2) 223,066 220,526 Consumer protection agencies (e.1.3) 160,279 32,847 Former trading partners (e.1.4) 193,529 180,226 Environmental and infrastructure (e.1.5) 154,187 125,201 Other (e.1.6) 149,924 98,977 1,101,332 1,032,637 e.1.1 Consumer lawsuits They mainly refer to actions for alleged improper collection, cancellation of contract, quality of services, defects and failures in the delivery of devices and undue negative entry. e.1.2 ANATEL The Company is a party to lawsuits against ANATEL, in which it is discussed: (i) debit related to the collection of 2% of revenues from Value - Added Services-VAS and interconnection; (ii) pro-rata inflation adjustment applied to the price proposal defined in the notice for the use of 4G frequencies and (iii) alleged non-compliance with service quality targets. e.1.3 Consumer protection agencies TIM is a party to legal and administrative lawsuits filed by the Public Prosecutor's Office, Procon and other consumer protection agencies, arising from consumer complaints, in which, it is discussed: (i) alleged failures in the provision of network services; (i) alleged failure in the delivery of handsets; (iii) alleged non-compliance with state laws; (iv) hiring model and alleged improper charges of Value-Added Services-VAS; (v) alleged violations of the SAC decree; (vi) alleged contractual violations; and (vii) blocking of data. e.1.4 Former Trading Partners TIM is a defendant in actions proposed by several former trading partners in which are claimed, among others, values based on alleged contractual defaults. 1. 5 Social and environmental and infrastructure The Company is a party to lawsuits involving various agents that discuss aspects related to (1) environmental licensing and structure licensing (installation/operation) and (2) (i) electromagnetic radiation emitted by Telecom structures; (ii) renewal of land leases for site installation; (iii) dumping on leased land for site installation; (iv) presentation of registering data, among others. e.1.6 Other TIM is a defendant in other actions of essentially non-consumer objects proposed by the most diverse agents from those described above, in which, among others, it is discussed: (i) renewal of lease agreements; (ii) shareholding subscription shares; (iii) indemnity lawsuits; (iv) alleged breach of contract and; (v) collection lawsuits. e.2. Labor and Social Security e.2.1. Social Security TIM S.A received a Tax Notice for the Release of the Debt relating to the alleged irregularity in the payment of social security contributions relating to the payment of Profit Sharing, in the likely updated amount of R$ 9,487 (R$ 22,587 on December 31, 2019). Moreover, it received Tax Notifications of Release of Debts, referring to the alleged irregularity in the collection of Social Security contributions on installments received as indemnity allowances, unadjusted bonuses, hiring bonuses and incentives, in the total possible amount of R$ 22,829, updated (R$ 38,382 on December 31, 2019). e.2.2. Labor There are 3,038 Labor claims on December 31, 2020 (3,976 on December 31, 2019) filed against the company and with possible risk, concerning claims involving former employees and employees of service providers in the amount of updated R$ 317,971 (R$ 459,020 on December 31, 2019). The other values are related to labor processes of various requests filed by former employees of their own and third-party companies. e.3. Tax 2020 2019 16,586,353 16,196,077 Federal taxes (e.3.1) 4,268,212 4,279,570 State taxes (e.3.2) 8,562,352 8,221,808 Municipal taxes (e.3.3) 740,813 703,132 FUST, FUNTTEL and EBC (e.3.4) 3,014,976 2,991,567 The values presented are corrected, in an estimated way, based on the SELIC index. The historical amount involved is R$ 11,976,959 (R$ 11,549,274 on December 31, 2019). e.3.1. Federal taxes As of December 31, 2020, the total amount assessed against the TIM Group in relation to federal taxes is R$ 4,268,212 (R$ 4,279,570 on December 31, 2019). The following are the most significant matters in dispute with tax authorities: a. Allegation of alleged incorrect use of tax credits for carrying out a reverse merger, amortization of goodwill paid on the acquisition of cell phone companies, deduction of goodwill amortization expenses, exclusion of goodwill reversal, other reflections and disallowances of compensations and deductions paid by estimate, allegedly improper use of the SUDENE benefit due to lack of formalization of the benefit at the Internal Revenue Service (RFB), and failure to pay IRPJ and CSLL due by estimate. The amount involved is R$ 2,715,670 (R$ 2,672,754 on December 31, 2019). b. Method of compensation for tax losses and negative bases. The amount involved is R$ 193,181 (R$ 203,302 on December 31, 2019) c. Collection of CSLL on currency changes arising from swap transactions accounted for by the cash regime. The amount involved is R$ 67,572 (R$ 66,164 on December 31, 2019). d. Collection of IRRF [withholding income tax] on income of residents abroad, including those remitted by way of international roaming and payment to unidentified beneficiaries, as well as the collection of CIDE on payment of royalties on remittances abroad, including remittances by way of international roaming. The amount involved is R$ 259,088 (R$ 256,833 on December 31, 2019). e. Collection of IRPJ, PIS/COFINS and CSLL debits arising from non-homologation or partial homologation of compensations made by the company from credits of withholding taxes on financial investments and negative balance of IRPJ. The amount involved is R$ 399,691 (R$ 427,233 on December 31, 2019). e.3.2. State taxes As of December 31, 2020, the total amount assessed amount against the TIM Group in relation to states taxes is R$ 8,562,352 (R$ 8,221,808 on December 31, 2019). The following are the most significant matters in dispute with tax authorities: a. Non-inclusion in the ICMS calculation basis of unconditional discounts offered to customers, as well as a fine for the alleged failure to comply with a related accessory obligation, including for the failure to present the 60i record of the SINTEGRA file. The involved amount is R$ 1,128,741 (R$ 1,053,411 on December 31, 2019). b. Use of tax benefit (program for the promotion of integrated and sustainable economic development of the Federal District - PRÓ-DF) granted by the taxing entity itself, but later declared unconstitutional, as well as alleged improper credit of ICMS arising from the interstate purchase of goods with tax benefit granted in the state of origin. The amount involved is R$ 492,935 (R$ 887,637 on December 31, 2019). The change is due to the partial favorable outcome, in the amount of R$ 254 million. c. Credit reversal and extemporaneous credit related to acquisitions of permanent assets. The involved amount to TIM S.A. is R$ 608,316 (R$ 731,864 on December 31, 2019). The change is due to the partial favorable outcome, in the amount of R$ 67 million. d. Credits and chargebacks of ICMS, as well as the identification and documentary support of values and information released in customer accounts, such as tax rates and credits granted in anticipation of future surcharges (special credit), as well as credits related to tax substitution operations and exempt and untaxed operations. On December 31, 2020, the involved amount is R$ 3,356,501 (R$ 3,284,473 on December 31, 2019). e. Use of credit in the acquisition of electricity directly employed in the production process of companies. The amount involved is R$ 134,494 (R$ 131,057 on December 31, 2019). f. Alleged conflict between the information contained in ancillary obligations and the collection of the tax, as well as specific questioning of fine for non-compliance with ancillary obligations. The amount involved is R$698,673 (R$138,684 on December 31, 2019). The change is due to the addition of two new cases in São Paulo, in the amount of R$362 million and R$183 million. g. Alleged lack of collection of ICMS due to the gloss of chargebacks related to the prepaid service, improper credit of ICMS in the outputs of goods allegedly benefited with reduction of the calculation base, as well as an allegation of improper non-inclusion of Value-Added Services (VAS) of the ICMS calculation basis. The amount involved is R$ 249,271 (R$ 198,505 on December 31, 2019). h. Launch of credits related to the return of mobile devices lent on loan. The amount involved is R$ 197,521 (R$ 180,920 on December 31, 2019). i. Collection of ICMS related to subscription services and their alleged improper non-inclusion in the ICMS calculation base due to their nature. The amount involved is R$ 260,447 (R$ 249,659 on December 31, 2019). e.3.3. Municipal taxes As of December 31, 2020, the total amount assessed amount against TIM Group in relation to municipal taxes is R$ 740,813 (R$ 703,132 on December 31, 2019). The following are the most significant matters in dispute with tax authorities: a. Collection of ISS, as well as the punitive fine for the absence of the supposed tax due, on several revenue accounts of the company. The amount involved is R$ 150,023 (R$ 147,572 on December 31, 2019). b. Collection of ISS on importation of services or services performed in other municipalities. The amount involved is R$ 385,536 (R$ 300,669 on December 31, 2019). c. Constitutionality of the collection of the functioning supervision fee (TFF - Taxa de Fiscalização do Funcionamento e.3.4. FUST and FUNTTEL The total amount charged against the TIM Group in relation to the contributions to FUST and FUNTTEL with a possible risk rating is R$ 3,014,976 (R$ 2,991,567 on December 31, 2019). The main discussion involves the collection of the contribution to FUST and FUNTTEL (Fund for the technological development of Telecommunications) from the issuance by ANATEL of Sum no. 07/2005, aiming, among others, and mainly, the collection of the contribution to FUST and FUNTTEL on interconnection revenues earned by mobile telecommunications service providers, from the validity of Law 9998/2000. e.4. Regulatory ANATEL filed administrative proceedings against the Company for: (i) non-compliance with certain quality indicators; (ii) non-compliance with other obligations derived from the terms of authorization and; (iii) non-compliance with the SMP and STFC regulations, among others. On December 31, 2020, the value indicated for the PADOs (procedure for determining non-compliance with obligations), considering the inflation adjustment, classified with possible risk was R$ 119,076 (R$ 707,993 on December 31, 2019). The variation was mainly due to the processing of the PADOs included in the Conduct Adjustment Term “TAC” in negotiations with ANATEL, where such processes were extinguished in the administrative spheres. On August 22, 2019, ANATEL's Board of Directors unanimously approved TIM's conduct adjustment term (TAC), which had been negotiated since June 2018 with the regulator. The agreement covers a sanctions reference value of R$ 627 million. The commitment to be made by TIM includes actions to improve three pillars of action-customer experience, quality and infrastructure - through initiatives associated with improvements in the licensing process of stations, efficient use of numbering resources, evolution of digital service channels, reduction of complaint rates, repair of users and strengthening of transport and access networks. In addition, it contemplates the additional commitment to bring mobile broadband, through the 4G network, to 366 municipalities with less than 30 thousand inhabitants thus reaching more than 3.4 million people. The new infrastructure will be implemented in three years - more than 80% in the first two years – being guaranteed by the Company the sharing regime with the other providers. On June 19, 2020 the Board of Directors of the company approved the said TAC after final deliberation of the regulator and the signing of the term took place on June 25. The agreement covers sanctions totaling a value of approximately R$ 639 million, updated, which will be filed according to commitments represented in actions to improve quality and customer experience as well as increase network infrastructure in more than 2,000 locations. By obtaining the extension of the term of the authorizations to use the radio frequencies associated with the SMP, TIM S.A. becomes liable for the contractual burden on the net revenue arising from the service plans marketed under each authorization. However, since 2011 ANATEL began to include in the basis of calculation of said burden also the revenues obtained with interconnection, and from 2012, the revenues obtained with Value-Added Services. In the company's opinion, the inclusion of such revenues is improper because it is not expressly provided for in the terms of original authorizations, so the collections received are discussed in the administrative and/or judicial sphere. |
24. Shareholders' equity
24. Shareholders' equity | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders' equity | |
Shareholders' equity | 24. Shareholders' equity a. Share capital The share capital is recorded by the amount effectively raised from the shareholders, net of the costs directly linked to the funding process. The subscribed and paid-up capital on December 31, 2020, is represented by 2,420,804,398 common shares (2,421,032,479 common shares on December 31, 2019). The Company is authorized to increase its capital up to the limit of 4,450,000,000 common shares, by resolution of Board of Directors, regardless of any amendment to its bylaws. b. Capital reserves This reserve is broken down as follows: 2020 2019 397,183 410,650 Goodwill special reserve 353,604 380,560 Call options for shares 43,579 30,090 b.1 Goodwill special reserve The special goodwill reserve arose from the following transactions: (i) Takeover of the former subsidiaries TIM Sul and TIM NE - acquisition of minority shares In 2005, the Company acquired all the shares held by the minority shareholders of TIM Sul S.A. and TIM Nordeste Telecomunicações S.A. This acquisition took place by issuing new shares of TIM Participações S.A., converting those companies into full subsidiaries. At that time, this transaction was recorded at the book value of the shares, no goodwill being recorded arising from the difference between the market value and the shares negotiated. When first adopting IFRS, the Company availed itself of the exemption that allows a subsidiary, when it adopts international accounting practices subsequent to its Parent Company having adopted IFRS, to consider the balances previously reported to the Parent Company for consolidation purposes. In the balance sheet of the transition to IFRS, the Company recorded the acquisition price based on the market value of the shares of TIM Participações S.A. at that time, recording goodwill amounting to R$157,556. (ii) Acquisition of the shares of Holdco - purchase of TIM S.A (Intelig) As at December 30, 2009, the Special General Meeting of TIM Participações approved the takeover of Holdco, a company that held 100% of the equity of TIM S.A, by TIM Participações. As a result of this transaction, the Company issued 127,288,023 shares. Based on the former Brazilian accounting principles (“BR GAAP”), the acquisition was recorded at the net book value of the assets acquired on the base date of November 30, 2009. When IFRS was first adopted, the acquisition was recorded on the base date of December 31, 2009, taking into account the market value of the common and preferred shares of TIM Participações as at December 30, 2009, amounting to R$739,729. The difference between this amount and the book value recorded under the former BR GAAP (R$516,725) created goodwill on capital reserves of R$223,004. b.2 Stock options The balances recorded under these items represent the company's expenses for stock options granted to employees (note 25). c. Profit reserves c.1 Legal reserve It refers to the allocation of 5% of the net income for the year ended December 31 of each year, until the Reserve equals 20% of the capital, excluding the balance allocated to the reserve of tax incentives. In addition, the company may cease to constitute the legal reserve when this, added to the capital reserves, exceeds 30% of the capital. This Reserve may only be used to increase capital or offset accumulated losses. c.2 Reserve for expansion The formation of this reserve is foreseen in Paragraph 2 of art. 46 of the bylaws of the company and is aimed at the expansion of social business. The balance of profit that is not compulsorily allocated to other reserves and is not intended for the payment of dividends is allocated to this reserve, which may not exceed 80% of the capital. Reaching this limit, it will be up to the General Meeting to decide on the balance, distributing it to shareholders or increasing capital. c. 3 Tax Benefit Reserve The Company has tax benefits that provide for restrictions on the distribution of profits. According to the legislation that establishes these tax benefits, the amount of tax that is no longer payable due to exemptions or deductions when calculating income taxes may not be distributed to members and should be used to constitute a reserve of tax incentive of the legal entity. This reserve can only be used to offset losses or increase capital. On December 31, 2020, the accumulated amount of such a tax reserve incentive amounts to R$ 1,781,560 (R$ 1,612,019 on December 31, 2019). The said tax benefit corresponds to the reduction of the Corporate Income Tax (IRPJ) incident on the profit of the exploitation calculated in the units encouraged. The Company has operations in the Amazon and certain areas in the Northeast region of Brazil, which are the areas where the SUDENE / SUDAM such tax incentives (SUDENE/SUDAM) apply, for a period of 10 years and subject to renewals. d. Dividends Dividends are calculated in conformity with the bylaws and the Brazilian Corporate Law. According to its latest bylaws, approved on August 31, 2020, the company must distribute as a mandatory dividend each year ending December 31, provided that there are amounts available for distribution, an amount equivalent to 25% of adjusted net income. On December 31, dividends and interest on shareholders’ equity were calculated as follows: 2020 2019 Net income for the year 1,828,254 3,622,127 1,828,254 3,622,127 (-) Non-distributable tax incentives (169,540) (194,161) (-) Constitution of legal reserve (83,707) (171,398) Adjusted profit 1,575,007 3,256,568 Minimum dividends calculated on the basis of 25% of adjusted profit 397,752 814,142 Breakdown of dividends payable and interest on shareholders’ equity: Interest on shareholders’ equity 1,083,000 995,438 Total dividends and interest on shareholders’ equity distributed and proposed 1,083,000 995,438 Withholding income tax (IRRF) on interest on shareholders’ equity (162,450) (149,316) Total dividends and interest shareholders’ equity, after withholding income taxes 920,550 846,122 During 2020, the total amount of interest on shareholders’ equity approved was R$ 1,083,000 and the total paid was R$ 1,153,054 (R$ 500 million referring to the year 2020 and R$ 653 million referring to the year 2019). The remaining R$ 583 million was paid on January 22, 2021. The balance on December 31, 2020 of the item “dividends and Interest on shareholders’ equity payable” is composed of the outstanding amounts of previous years in the amount of R$ 43,026, in addition to the unpaid amount of interest on shareholders’ equity allocated and calculated in 2020 in the amount of R$ 495,550. As set forth in the Law 6404/76 and the in the Company’s bylaws, unclaimed dividends and interest on shareholders’ equity after three years, are reverted to shareholders' equity at the time of its prescription and allocated to a supplementary reserve for expansion. In the statement of cash flows, Interest on shareholders’ equity and dividends paid to its shareholders are classified as financing activities. |
25. Long-term incentive plan
25. Long-term incentive plan | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Incentive Plan [Abstract] | |
Long-term incentive plan | 25. Long-term incentive plan Plan 2011 – 2013, plan 2014-2016 and Plan 2018-2020 On August 5, 2011, April 10, 2014 and April 19, 2018, the long-term incentive plans were approved by the General Meeting of shareholders of TIM Participações S.A. (incorporated by TIM AS on August 31, 2020); “2011-2013 Plan”, “2014-2016 Plan” and “2018-2020 Plan” respectively, granted to senior directors and to those who occupy the position of key positions in the Company. The 2011-2013 and 2014-2016 plans deal with the granting of stock options, while the 2018-2020 plan provides for the granting of shares (performance shares and restricted shares). The exercise of the options of the 2011-2013 Plan is conditioned on the achievement of specific performance targets that could prevent the exercise of options, while when in the exercise of the options of the 2014-2016 Plan, the achievement of goals may affect only the acquisition price of the shares. The strike price is calculated by applying a plus or minus adjustment to the base price of the share as a result of shareholder performance, taking into account the criteria provided for in each plan. The 2018-2020 Plan proposes to grant participants shares issued by the Company, subject to the participant’s permanence in the Company (achievement of specific goals). The number of shares may vary, for more or for less, as a result of the performance and possibly of the dividend award, considering the criteria provided for in each Grant. The term of validity of the options of the 2011-2013 and 2014-2016 plans is 6 years and TIM S.A. has no legal or non-formalized obligation to repurchase or settle the options in cash. For the 2018-2020 plan, the term of validity has the same periodicity of 3 years related to its deficiency ( Vesting Stock-based payment plans were originally awarded considering TIM Participações’s shares that were traded at B3. However, as part of the Corporate Restructuring (Note 1), on August 31, 2020, the Company began trading its own shares and TIM Participações’s shares ceased to be traded. As a result, TIM Participações’s shares originally granted were exchanged for TIM S.A shares. Such a modification did not impact the executives and their shares under the respective plans. The total amount of the expense was calculated considering the fair value of the options and the value of the shares and is recognized in the results over the vesting period. Stock Options Program Table Granting date Options granted Maturity date Base Price Balance at the beginning of the year Granted during the year Exercised during the year Expired during the year Overdue during the year Balance at the end of the year Plan 2014-2016 - 3rd Grant 3,922,204 Nov 2022 R$ 8.10 419,340 - -124,277 - - 295,063 Plan 2014-2016 - 2nd Grant 3,355,229 Oct 2021 R$ 8.45 132,848 - -111,077 - - 21,771 Plan 2014-2016-1st Grant 1,687,686 Sep 2020 R$ 13.42 378,286 - -69,708 -308,578 - - Plan 2011-2013 - 3rd Grant 3,072,418 July 2019 R$ 8.13 - - - - - - Plan 2011-2013 - 2nd Grant 2,661,752 Sep 2018 R$ 8.96 - - - - - - Plan 2011-2013-1st Grant 2,833,595 Aug 2017 R$ 8.84 - - - - - - Total 17,532,884 930,474 - -305,062 -308,578 - 316,834 Weighted average price of the balance of grants R$ 8.12 Identification of grant: Shares granted Maturity date Grant Price Balance at the beginning of the year Granted during the year Transferred during the year Paid in cash Canceled during the year Balance at the end of the year Volume Vested Performance change Additional Dividends Volume Vested Performance change Additional Dividends 2018-2020 Plan 3rd Grant 796,054 Apr 2023 14.40 - 796,054 - - - - - - - 796,054 2018-2020 Plan 2nd Grant 930,662 July 2022 11.28 897,244 - (209,349) (83,672) (16,536) - - - - 687,895 2018-2020 Plan 1st Grant 849,932 Apr 2021 14.41 285,690 - (83,181) 70 (4,655) (2,915) (5) (164) - 199,594 Total 2,576,648 1,182,934 796,054 (292,530) (83,602) (21,191) (2,915) (5) (164) - 1,683,543 Weighted average price of the balance of grants 13.12 The significant data included in the model, for the Stock Option Grants, was as follows: Granting date Base price - weighted average share in the period of measurement of the grant Volatility Expected life of the option Annual interest rate without risk Grant 2011 R$ 8.84 51.73% p.a. 6 years 11.94% p.a. Grant 2012 R$ 8.96 50.46% p.a. 6 years 8.89% p.a. Grant 2013 R$ 8.13 48.45% p.a. 6 years 10.66% p.a. Grant 2014 R$ 13.42 44.60% p.a. 6 years 10.66% p.a. Grant 2015 R$ 8.45 35.50% p.a. 6 years 16.10% p.a. Grant 2016 R$ 8.10 36.70% p.a. 6 years 11.73% p.a. Note: Significant data is characteristic of an option-based plan, considering the use of fair value as the appropriate method for calculating expenses with option remuneration. The base price of the share of each grant was calculated using the weighted averages of TIM Participações's share price, considering the following periods: · Plan 2011-2013-1st Grant · Plan 2011–2013 – 2nd Grant · Plan 2011–2013 – 3rd Grant · Plan 2014-2016-1st Grant · Plan 2014-2016-2nd Grant · Plan 2014–2016 – 3rd Grant · Plan 2018–2020 – 1st Grant · Plan 2018–2020 – 2nd Grant · Plan 2018–2020 – 3rd Grant The Company recognizes the impact of the review of original estimates, if any, on the statement of income, with a counterparty to net assets. On December 31, 2020, expenses pegged to these long-term benefit plans totaled R$ 9,999 (R$ 2,908, on December 31, 2019). |
26. Revenue
26. Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue [abstract] | |
Net operating revenue | 26. Revenue Revenues from services rendered The principal service revenue derives from monthly subscription, the provision of separate voice, SMS and data services, and user packages combining these services, roaming charges and interconnection revenue. The revenue is recognized as the services are used, net of sales taxes and discounts granted on services. This revenue is recognized only when the amount of services rendered can be estimated reliably. Revenues are recognized monthly, through billing, and revenues to be billed between the billing date and the end of the month (unbilled) are identified, processed, and recognized in the month in which the service was provided. These non-billed revenues are recorded on an estimated basis, which takes into account consumption data, number of days elapsed since the last billing date. Interconnection traffic and roaming revenue are recorded separately, without offsetting the amounts owed to other telecom operators (the latter are accounted for as operating costs). The minutes not used by customers and/or reload credits in the possession of commercial partners regarding the prepaid service system are recorded as deferred revenue and allocated to income (loss) when these services are actually used by customers. The service revenue item also includes revenue from financial partnership agreements and, as provided for in the agreement, the amount of revenue recognized up to December 31, 2020 by TIM customers who have accounts with our financial partner C6, which was approximately R$ 15 million (note 41). Revenues from sales of products Revenues from product sales (telephones, mini-modems, tablets and other equipment) are recognized when the performance obligations associated with the contract are transferred to the buyer. Revenues from sales of devices to trading partners are accounted for at the time of their physical delivery to the partner, net of discounts, and not at the time of sale to the end customer, since the Company has no control over the product sold. Identification of contracts The Company monitors commercial contracts in order to identify the main contractual clauses and other elements present in the contracts that could be relevant in the application of the accounting rule IFRS 15 - Revenue from Contracts with Customers. Identification of performance obligation Based on the review of its contracts, the Company verified the existence of two performance obligations: (i) sale of equipment; e (ii) provision of mobile, fixed and internet telephony services. Thus, the Company started to recognize revenues when (or as) the Company meets the performance obligation by transferring the asset or service promised to the client; and the asset is considered transferred when (or as) the client obtains control of that asset. Determining and Allocating the Transaction Price to the Performance Obligation The Company understands that its commercial packages that combine services and sale of cellular handsets with discounts. In accordance with IFRS 15, the Company is required to perform the discount allocation and recognize revenues related to each performance obligation based on their standalone selling prices. Cost to obtain contract All incremental costs related to obtaining a contract (sales commissions and other costs of acquisition from third parties) are recorded as prepaid expenses and (as described in note 11) amortized over the same period as the revenue associated with this asset. Similarly, certain contract compliance costs are also deferred to the extent that they relate to performance obligations under the customer agreement, i.e. when the customer obtains control over the asset. 2020 2019 2018 Revenue 17,267,812 17,377,194 16,981,329 Gross revenue 24,346,101 25,182,831 24,232,404 Revenue from services 23,279,423 23,820,343 23,065,648 Revenue from services – Mobile 21,522,135 22,145,033 21,531,779 Revenue from services – Fixed telephony 1,757,288 1,675,310 1,533,869 Sale of goods 1,066,678 1,362,488 1,166,756 Deductions from gross revenue (7,078,289) (7,805,637) (7,251,075) Taxes (4,534,582) (4,939,980) (5,163,797) Discounts granted (2,531,920) (2,843,670) (2,073,892) Returns and other (11,787) (21,987) (13,386) According to the Brazilian Corporation Law paragraph 187, companies should disclose in the financial statements the gross and net revenues. |
27. Operating costs and expense
27. Operating costs and expenses | 12 Months Ended |
Dec. 31, 2020 | |
Operatings Costs And Expenses [Abstract] | |
Operating costs and expenses | 27. Operating costs and expenses 2020 2019 Cost of services rendered and goods sold Marketing expenses General and administrative expenses Total Cost of services rendered and goods sold Marketing expenses General and administrative expenses Total (7,996,615) (4,443,027) (1,673,290) (14,112,932) (7,433,731) (4,986,289) (1,717,859) (14,137,879) Personnel (58,024) (632,231) (321,967) (1,012,222) (53,392) (624,353) (392,984) (1,070,729) Outsourced services (587,835) (1,743,644) (538,584) (2,870,063) (569,242) (2,041,646) (512,643) (3,123,531) Interconnection and connection media (1,672,655) - - (1,672,655) (1,419,464) - - (1,419,464) Depreciation and amortization (4,569,064) (247,666) (710,282) (5,527,012) (4,132,223) (256,898) (739,860) (5,128,981) Taxes, fees and contributions (28,675) (761,152) (23,809) (813,636) (32,120) (817,369) (18,846) (868,335) Rentals and reinsurance (316,650) (107,550) (15,753) (439,953) (291,302) (121,795) (20,590) (433,687) Cost of goods sold (756,060) - - (756,060) (931,818) - - (931,818) Advertising - (377,184) - (377,184) - (355,234) - (355,234) Losses on doubtful accounts (note 6) - (552,817) - (552,817) - (748,291) - (748,291) Other (7,652) (20,783) (62,895) (91,330) (4,170) (20,703) (32,936) (57,809) 2018 Cost of services provided and goods sold Marketing expenses General and administrative expenses Total (7,701,418) (4,970,780) (1,608,319) (14,280,517) Personnel (36,514) (637,177) (357,878) (1,031,569) Third-party services (518,762) (2,169,624) (451,990) (3,140,376) Interconnection and means of connection (2,513,176) - - (2,513,176) Depreciation and amortization (3,119,954) (162,804) (671,562) (3,954,320) Taxes, fees and contributions (31,754) (866,197) (18,333) (916,284) Rent and insurance (591,226) (146,877) (67,387) (805,490) Cost of goods sold (883,912) - - (883,912) Publicity and advertising - (421,588) - (421,588) Losses on doubtful accounts - (544,881) - (544,881) Other (6,120) (21,632) (41,169) (68,921) The Company makes contributions to public or private pension insurance plans on a mandatory, contractual or voluntary basis while the employee is on the staff of the company. Such plans do not bring any additional obligations to the company. If the employee ceases to be part of the company's staff in the period necessary to have the right to withdraw contributions made by sponsors, the amounts to which the employee is no longer entitled and which may represent a reduction in the company's future contributions to active employees, or a cash refund of these amounts, are released as assets. |
28. Other income (expenses)
28. Other income (expenses) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income (Expenses), Net [Abstract] | |
Other income (expenses) | 28. Other income (expenses) 2020 2019 2018 Income Income from grant, net 17,427 21,572 25,305 Telecommunication service fines 37,490 50,499 44,411 Income on disposal of assets 5,375 2,214 1,708 PIS/COFINS credits (i) - 1,795,000 - Other 68,651 83,558 282,041 128,943 1,952,843 353,465 Expenses FUST/FUNTTEL (ii) (133,378) (137,169) (143,167) Taxes, fees and contributions (10,316) (4,024) (4,092) Provision for legal and administrative proceedings, net of reversal (290,789) (466,460) (452,463) Expenses on disposal of assets (13,538) (7,055) (4,424) Other expenses (32,776) (62,593) (32,608) (480,797) (677,301) (636,754) Other income (expenses) (351,854) 1,275,542 (283,289) (i) The change refers to the update of claims arising from judicial proceedings with a final decision passed in favor of the company in higher courts, in 2019, which discussed the exclusion of ICMS from calculation basis of PIS and COFINS contributions. The amount of R$ 1,795 million was recorded under Other income in 2019 (note 9). (ii) Representing the expenses incurred with contributions on the various telecommunications revenues due to ANATEL, according to current legislation. |
29. Financial income
29. Financial income | 12 Months Ended |
Dec. 31, 2020 | |
Financial Income [Abstract] | |
Financial income | 29. Financial income 2020 2019 2018 Financial revenues 438,598 1,430,171 412,733 Interest on interest earning bank deposits 82,512 88,224 119,548 Interest of clients 28,686 37,233 36,793 Swap interest 32,955 15,536 17,001 Interest on lease 19,924 20,528 25,664 Inflation adjustment (1) 116,441 1,263,793 207,191 Other derivatives (2) 155,165 - - Other 2,915 4,857 6,536 (1) (2) |
30. Financial expenses
30. Financial expenses | 12 Months Ended |
Dec. 31, 2020 | |
Financial Expenses [Abstract] | |
Financial expenses | 30. Financial expenses 2020 2019 2018 Financial expenses (1,242,255) (1,408,053) (951,439) Interest on loans and financing (70,400) (116,735) (96,682) Interest on taxes and fees (43,616) (28,396) (15,409) Swap interest (45,970) (24,604) (32,424) Interest on lease (766,263) (821,463) (266,328) Inflation adjustment (1) (161,892) (191,309) (340,175) Discounts granted (33,725) (36,047) (38,858) Other expenses (120,389) (189,499) (161,563) (1) Substantial part related to inflation adjustment on provision for legal and administrative proceedings (R$ 137,379 in 2020 – note 23). |
31. Foreign exchange variations
31. Foreign exchange variations | 12 Months Ended |
Dec. 31, 2020 | |
Foreign Exchange Variations, Net [Abstract] | |
Foreign exchange variations | 31. Foreign exchange variations 2020 2019 2018 Income Loans and financing - 22,494 1,409 Suppliers 15,981 9,004 6,844 Swap (1) 305,012 40,742 75,340 Other 43,155 15,952 13,937 364,148 88,192 97,530 Expenses Loans and financing (305,010) (40,715) (75,298) Suppliers (46,112) (13,201) (11,925) Swap - (22,493) (1,409) Other (19,991) (12,691) (7,525) (371,113) (89,100) (96,157) Foreign exchange variations (6,965) (908) 1,373 (1) |
32. Income tax and social contr
32. Income tax and social contribution | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax And Social Contribution [Abstract] | |
Income tax and social contribution | 32. Income tax and social contribution 2020 2019 2018 Income tax and social contribution - current Income tax for the year (684,099) (155,521) (253,120) Social contribution for the year (232,671) (58,905) (92,502) Tax incentive – SUDENE/SUDAM (*) 164,442 156,594 146,454 (752,328) (57,832) (199,168) Deferred income tax and social contribution Deferred income tax 453,127 (625,516) 651,632 Deferred social contribution 144,722 (225,186) 217,501 597,849 (850,702) 869,133 Provision for contingencies of income tax and social contribution (9,671) (5,406) (5,054) 588,178 (856,108) 864,079 (164,150) (913,940) 664,911 The reconciliation between income tax and social contribution expense as calculated by applying combined tax rates and amounts reflected in income (loss) is as follows: 2020 2019 2018 Profit before income tax and social contribution 1,992,404 4,536,067 1,880,190 Combined statutory rate 34% 34% 34% Income tax and social contribution at the combined statutory rates (677,417) (1,542,263) (639,265) (Additions) /exclusions: Permanent additions, exclusions: Nondeductible expenses for tax purposes (30,959) (18,783) 920,745 Tax incentive SUDENE/SUDAM (*) 164,442 194,161 146,454 Tax benefit related to interest on shareholders’ equity allocated 368,220 338,449 288,998 Other amounts 11,564 114,495 (52,021) 513,267 628,322 1,304,176 Income tax and social contribution recorded in the income (loss) for the year (164,150) (913,941) 664,911 Effective rate 8.24% 20.15% (35.36%) (*) As mentioned in note 24 c.3, in order for investment grants not to be computed in taxable income, they must be recorded as a tax incentive reserve, which can only be used to absorb losses or be incorporated into the capital. TIM S.A. has tax benefits that fall under these rules. |
33. Earnings per share
33. Earnings per share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share attributable to Company's shareholders (in R$ per share) | |
Earnings per share | 33. Earnings per share (a) Basic Basic earnings per share are calculated by dividing profit attributable to Company’s shareholders by the weighted average number of shares issued during the period. 2020 2019 2018 Profit attributable to shareholders of the Company 1,828,254 3,622,127 2,545,101 Weighted average number of shares issued (thousands) 2,420,804 2,420,481 2,420,172 Basic earnings per share (in R$) 0.76 1.50 1.05 (b) Diluted Diluted earnings per share are calculated by adjusting the weighted average amount of shares outstanding to assume the conversion of all potential dilutive shares. 2020 2019 2018 Profit attributable to shareholders of the Company 1,828,254 3,622,127 2,545,101 Weighted average number of shares issued (thousands) 2,421,065 2,421,018 2,421,075 Diluted earnings per share (in R$ ) 0.76 1.50 1.05 The calculation of diluted earnings per share considered 261 thousand of shares (537 thousand shares in 2019 and 903 thousand shares in 2018) related to the grants of the 2011-2013 plan and the 2014-2016 plan, as mentioned in note 25. |
34. Balances and transactions w
34. Balances and transactions with related parties | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Balances and transactions with related parties | 34. Balances and transactions with related parties The balances of transactions with Telecom Italia Group companies are as follows: Assets 2020 2019 Telecom Italia Sparkle (1) 1,630 1,949 TI Sparkle (3) 1,915 2,007 TIM Brasil (8) 6,129 5,429 Other 1,044 1,035 Total 10,718 10,420 Liabilities 2020 2019 Telecom Italia S.p.A. (2) 75,317 80,825 Telecom Italia Sparkle (1) 10,576 6,531 TI Sparkle (3) 7,333 3,731 TIM Brasil (4) 6,145 6,056 Vivendi Group (5) 1,150 1,164 Gruppo Havas (6) 24,068 11,049 Other 2,797 2,467 Total 127,386 111,823 Revenue 2020 2019 2018 Telecom Italia S.p.A. (2) 1,197 775 858 Telecom Italia Sparkle (1) 2,994 5,371 5,809 TI Sparkle (3) 4,059 2,052 904 Total 8,250 8,198 7,571 Cost/Expense 2020 2019 2018 Telecom Italia S.p.A. (2) 110,407 93,188 62,976 Telecom Italia Sparkle (1) 27,485 24,914 30,123 TI Sparkle (3) 19,923 18,700 18,035 Vivendi Group (5) 1,207 1,386 9,439 Gruppo Havas (6) 207,682 264,318 301,752 Other 22,308 18,713 - Total 389,012 421,219 422,325 (1) Amounts refer to roaming wholesale (2) Amounts refer to international roaming On May 17, 2018, TIM Participações (incorporated by TIM S.A) and Telecom Italia signed a trademark license agreement formally granting TIM Participações and the company the right to use the “TIM” trademark by paying royalties in the amount of 0.5% of the company's net revenue. Payment is made quarterly. (3) Amounts refer to link rental, EILD rental, media rental (submarine cable) and signaling service. (4) mainly refer to judicial deposits made on account of labor causes and transfers of employees. (5) The values refer to Value Added Services-VAS. (6) From the values described above, in the result, they refer to advertising services, of which, R$ 195,117 (R$ 172,956 on December 31, 2019), are related to media transfers. The Company has social investment actions that include donations, projects developed by the Tim Institute and sponsorships. On December 31, 2020, the Company invested R$ 4,829 (R$ 4,207 on December 31, 2019) using own funds in social benefit. Balances on equity accounts are recorded in the groups: trade accounts receivable, prepaid expenses, suppliers and other current assets and liabilities. |
35. Management remuneration
35. Management remuneration | 12 Months Ended |
Dec. 31, 2020 | |
Management Remuneration [Abstract] | |
Management remuneration | 35. Management remuneration The key management personnel include statutory directors and the Board of Directors. The payment of key management personnel services provided is presented below: 2020 2019 2018 Short-term benefits 23,949 22,524 23,556 Other long-term benefits (1) 4,544 900 3,351 Share-based payments 6,343 5,379 10,230 34,836 28,803 37,137 (1) The variation occurred manly due to the number of eligible employees. |
36. Financial instruments and r
36. Financial instruments and risk management | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments And Risk Management [Abstract] | |
Financial instruments and risk management | 36. Financial instruments and risk management Among the financial instruments registered in the company, there are also derivatives that are financial liabilities measured at fair value through the result. At each balance sheet date such liabilities are measured at their fair value. Interest, inflation adjustment, foreign exchange variations and any variations arising from measurement at fair value, when applicable, are recognized in income (loss) when incurred in the “Financial revenues or expenses” line. Derivatives are initially recognized at fair value on the date the derivative agreement is entered into, and are subsequently remeasured at fair value. The Company does not apply “ hedge accounting” The Company carries out transactions with derivative financial instruments, without speculative purposes, only with the aim of i) reducing risks related to exchange rate variation and ii) managing interest rate exposure. The Company's derivative financial instruments are specifically represented by swap and options contracts The company's financial instruments are being presented in compliance with IFRS 9. The main risk factors to which the Company is exposed are: (i) Exchange variation risks The risks of foreign exchange variation relate to the possibility of the Company computing i) losses derived from fluctuations in exchange rates by increasing the balances of debt with loans and financing obtained in the market and the corresponding financial expenses or ii) increase in cost in commercial contracts that have some type of link to foreign exchange change. In order for these types of risks to be mitigated, the company performs: swap contracts with financial institutions with the aim of cancelling the impacts arising from the fluctuation of exchange rates on the financial result and commercial contracts with foreign exchange band clauses with the aim of partially mitigating foreign exchange variation risks or derivative financial instruments to reduce the risks of foreign exchange exposure in commercial contracts. On December 31, 2020, the Company's loans and financings indexed to the variation of foreign currencies are fully protected, both in terms and in value, by swap contracts. Gains or losses on these swap contracts are recorded in the company's earnings. In addition to the risks mentioned above, there are no other financial assets and liabilities in significant amounts that are indexed to foreign currencies. (ii) Interest rate risks Interest rate risks refer to: - The possibility of variations in the fair value of the loans obtained by the company indexed to TJLP, IPCA and/or TLP, when such rates do not correspond proportionally to the rates relating to Interbank Deposit Certificates (CDI). On December 31, 2020, the Company had no swap operation pegged to long-term interest rate (TJLP), IPCA and/or TLP. - Possibility of unfavorable change in interest rates, which would result in increase in financial expenses of the Company, as a result of the debt portion and liability positions that the Company has in swap contracts pegged to variable interest rates (percentage of CDI). However, on December 31, 2020, the Company maintains its financial resources applied to Interbank Certificates of Deposit (CDI), which substantially reduces this risk. (iii) Credit risk inherent in the provision of services The risk is related to the possibility of the company computing losses derived from the inability of the subscribers to honor the payments of the invoiced amounts. To minimize this risk, the company preventively performs credit analysis of all orders imputed by the sales areas and monitors the accounts receivable of subscribers, blocking the ability to use services, among other actions, if customers do not pay their debts. There are no customers who have contributed more than 10% of net accounts receivable on December 31, 2020 and December 31, 2019 or revenues from services rendered. (iv) Credit risk inherent in the sale of telephone sets and prepaid telephone cards The group's policy for the sale of telephone devices and the distribution of prepaid telephone cards is directly related to the credit risk levels accepted during the normal course of business. The selection of partners, the diversification of the portfolio of accounts receivable, the monitoring of loan conditions, the positions and limits of orders established for traders, the formation of collateral are procedures adopted by the company to minimize possible collection problems with its trading partners. There are no customers who contributed more than 10% of revenues from sale of goods during the year ended December 31, 2020 and 2019. There are no customers who contributed more than 10% of the net accounts receivable from the sale of goods on December 31, 2020 and December 31, 2019. (v) Liquidity risk - Liquidity risk arises from the need for cash before the obligations assumed. The Company structures the maturities of its non-derivative financial instruments and their respective derivative financial instruments so as not to affect liquidity. - The management of liquidity and cash flow of the Company are performed on a daily basis to ensure that cash operating generation and previous fund raising, as necessary, are sufficient to maintain the schedule of operating and financial commitments. - All financial investments of the Company have daily liquidity and the Management may, even in specific cases: i) revise the dividend payment policy; ii) issue new shares; and/or, iii) sell assets to increase liquidity. In order to eliminate any liquidity risk during the pandemic, the company chose to strengthen its cash by R$ 1,000,000, through the acquisition of new loans with the Bank of Nova Scotia and BNP Paribas. The first, in the amount of R$ 574,200, was disbursed in April and, the second, in the amount of R$ 425,800, was disbursed in July 2020. (vi) Financial credit risk Cash flow forecasting is performed and aggregated by the Finance and Treasury department of the Company. This department monitors the continuous forecasts of liquidity requirements to ensure that the Company has enough cash to satisfy operating needs. This forecast takes into consideration the investment, debt financing plans, compliance with covenants, attainment of the internal goals and if applicable, external or legal regulatory requirements. The risk is related to the possibility of the company computing losses derived from the difficulty of redemption of short-term financial investments and swap Fair value of derivative financial instruments: The consolidated derivative financial instruments are presented below: 2020 2019 Assets Liabilities Assets Liabilities Derivatives financial instruments 340,660 (36,166) 46,511 (4,405) Other derivatives 161,429 - - - 502,089 (36,166) 46,511 (4,405) Current installment 262,666 (7,273) 16,602 (858) Non-current installment 239,423 (28,893) 29,909 (3,547) The long-term derivative financial instruments consolidated on December 31, 2020 are due in accordance with the following schedule: Assets Liabilities 2022 27,173 (28,893) 2023 13,587 - 2024 onwards 198,663 - 239,423 (28,893) The other derivative previously mentioned refer to Company’s call option to subscribe Banco C6 ordinary shares representing the 1.4% of the share capital of C6 bank. The strike price paid to exercise the options amounts to R$ 6.2 million. As required by IFRS9, this option is a derivative the financial instrument that must be measured at its fair value, and it amounts to R$ 161 million on December 31, 2020. The variation of the mark-to-market of the call option between the initial measurement and December 31, 2020 amounts to R$ 155 million and it represents the difference in the fair value of the option less the amount paid for the share subscription premium. This financial instrument was measured at fair value and will be subsequently measured in the company’s results for the year. Non-derivative financial liabilities are substantially composed of trade accounts payable, dividends payable and other obligations, the maturity of which will occur in the next 12 months, except for loans and financing and financial lease, the nominal flows of payments of which are disclosed in notes 19 and 15. Consolidated financial instruments measured at fair value: 2020 Level 1 Level 2 TOTAL Total assets 2,077,499 502,089 2,579,588 Financial assets at fair value 2,077,499 502,089 2,579,588 Derivative financial instruments - 340,660 340,660 Other derivatives - 161,429 161,429 Marketable securities 2,077,499 - 2,077,499 Total liabilities - 36,166 36,166 Financial liabilities at fair value through profit or loss - 36,166 36,166 Derivatives used for hedging - 36,166 36,166 December 2019 Level 1 Level 2 TOTAL Total assets 658,328 46,511 704,839 Financial assets at fair value 658,328 46,511 704,839 Derivative financial instruments - 46,511 46,511 Marketable securities 658,328 - 658,328 Total liabilities - 4,405 4,405 Financial liabilities at fair value through profit or loss - 4,405 4,405 Derivatives financial instruments - 4,405 4,405 The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is considered active when the quoted prices are readily and regularly available from an Exchange, distributor, broker, industry group, pricing service or regulatory agency, and these prices represent actual market transactions which occur regularly on a purely commercial basis. These instruments are included in the Level 1. The instruments included in Level 1 mainly comprise the equity investments of bank certificates of deposit (CDB) and committed classified as securities for trading. The fair value of financial instruments that are not negotiated on active markets (for example, over the counter derivatives) is determined based on evaluation techniques. These valuation techniques maximize the use of the data adopted by the market where it is available and rely as little as possible on entity-specific estimates. If all relevant information required for the fair value of an instrument is adopted by the market, the instrument is included in Level 2. If relevant information is not based on data adopted by the market, the instrument is included in Level 3. Specific evaluation techniques used to measure the financial instruments include: · Quoted market prices or quotes from financial institutions or brokerage firms for similar instruments. · The fair value of swaps of interest rate is calculated at the present value of future cash flows estimated based on yield curves adopted by the market. · Other techniques, such as analysis of discounted cash flows, available data of the last relevant transaction and analysis of results based on multiples of similar companies, are used to determine the fair value of the remaining financial instruments. The fair values of currency derivative financial instruments and interest rates of the Company were determined by means of future cash flows (active and passive position) using the contracted conditions and bringing these flows to present value through discounts for the use of future interest rate disclosed by market sources. Fair values were estimated at a specific time, based on available information and own evaluation methodologies. Financial assets and liabilities by category The Company’s financial instruments per category can be summarized as follows: December 31, 2020 Measured at amortized cost Fair value through profit or loss Total Asset, according to the balance sheet 6,756,810 2,579,587 9,336,397 Derivative financial instruments - 340,660 502,089 Other derivatives 161,429 Trade accounts receivable and other accounts receivable excluding prepayments 3,180,661 - 3,180,661 Marketable securities - 2,077,498 2,077,498 Cash and cash equivalents 2,575,290 - 2,575,290 Leases 162,198 - 162,198 Judicial deposits 794,755 - 794,755 Regulatory credits recoverable 43,906 - 43,906 Measured at amortized cost Fair value through profit or loss Total Liabilities, according to the balance sheet 14,391,175 36,166 14,427,341 Loans and financing 2,345,032 - 2,345,032 Derivative financial instruments - 36,166 36,166 Suppliers and other obligations, excluding legal obligations 3,128,732 - 3,128,732 Leases 8,378,835 - 8,378,835 Dividends and interest on shareholders’ equity payable 538,576 - 538,576 December 31, 2019 Measured at amortized cost Fair value through profit or loss Total Asset, according to the balance sheet 6,769,032 704,839 7,473,871 Derivative financial instruments - 46,511 46,511 Trade accounts receivable and other accounts receivable excluding prepayments 3,287,855 - 3,287,855 Marketable securities - 658,328 658,328 Cash and cash equivalents 2,284,810 - 2,284,810 Leases 156,378 - 156,378 Judicial deposits 1,006,899 - 1,006,899 Regulatory credits recoverable 33,090 - 33,090 Measured at amortized cost Fair value through profit or loss Total Liabilities, according to the balance sheet 14,330,543 4,405 14,334,948 Loans and financing 2,029,088 - 2,029,088 Derivative financial instruments - 4,405 4,405 Suppliers and other obligations, excluding legal obligations 3,923,035 - 3,923,035 Leases 7,780,870 - 7,780,870 Dividends payable 597,550 597,550 The regular purchases and sales of financial assets are recognized on the trading date, which is the date when the Company commits to buy or sell the asset. Investments are initially recognized at fair value. After initial recognition, changes in fair value are recorded in the profit and loss for the year, in the financial revenues and expenses’ group. Financial risk hedge policy adopted by the Company The policy of the Company sets forth that mechanisms for protection against financial risks deriving from contracting of financing, in foreign currency shall be adopted for the purpose of administrating exposure to risks associated to exchange-rate changes. The contracting of derivative financial instruments against foreign exchange exposure shall occur simultaneously with the contracting of the debt that gave rise to such exposure. The level of coverage to be contracted for such foreign exchange exposures shall be 100% of the risk, both in terms and in value. On December 31, 2020, there are no margins or guarantees applied to transactions with derivative financial instruments of the Company. Criteria for selection of financial institutions obey parameters that take into consideration rating made available by renowned agencies of analysis of risk, shareholders' equity and transactions, and resources’ concentration levels. The operations with derivative financial instruments contracted by the company and in force on December 31, 2020 and December 31, 2019 are shown in the following table: December 31, 2020 COUNTERPARTY % Coverage AVERAGE SWAP RATES Currency Type of SWAP Debt SWAP Total Debt Total swap (Long position)¹ Long position Short position USD LIBOR x CDI KFW/ Finnvera JP Morgan and Bank of America 351,233 351,233 100% LIBOR 6M + 0.75% p.a. 85.25% CDI EUR PRE x DI Bank of America Bank of America 570,878 570,878 100% 0.33% p.a. 108.05% CDI USD PRE x DI The Bank of Nova Scotia. Scotiabank 1,031,526 1,031,526 100% 1.72% p.a. 134.43% CDI USD PRE x DI BNP Paribas BNP Paribas 399,725 399,725 100% 3.32% p.a. 155% CDI 1 December 31, 2019 COUNTERPARTY % Coverage AVERAGE SWAP RATES Currency Type of SWAP Debt SWAP Total Debt Total swap (Long position)¹ Long position Short position USD LIBOR x CDI KFW/ Finnvera JP Morgan and BOFA 330,217 330,217 100% LIBOR 6M + 0.75% p.a. 85.50% CDI USD PRE x DI CISCO Santander and JP Morgan 40,366 40,366 100% 2.50% p.a. 84.50% CDI In June 2019, the Company entered into a structured options transaction in the notional amount of USD 15 million. The transaction protects the company from currency variation effects arising from its commercial contracts in a range of R$ 5.30/USD to R$ 6.00/USD. The operation consists of 7 options in the amount of U$ 2.14 million each and with maturity from June to December 2020. The options were acquired for a net amount of R$ 2.57 million and settled upon maturity. Illustrative chart of sensitivity analysis - Effect in change of fair value of swaps For the purpose of identifying possible distortions arising from operations with consolidated derivative financial instruments currently in force, a sensitivity analysis was performed considering the variables CDI, US dollar (USD), Euro (EUR) and Libor, individually, in three distinct scenarios (probable, possible and remote), and their respective impacts on the results obtained. Our assumptions basically observed the individual effect of the CDI, USD, EUR and Libor variation used in the transactions as the case may be, and for each scenario the following percentages and quotes were used: CDI Sensitivity Scenario Description December 2020 Probable scenario Possible scenario Remote scenario Fair value in USD and EUR (KFW Finnvera, Scotia, BofA and BNP) 2,367,461 2,367,461 2,367,461 2,367,461 A) ∆ Accumulated variation in debt - - Fair value of the long position of swap (+) 2,367,461 2,367,461 2,367,461 2,367,461 Fair value of the short position of swap (-) 2,062,574 2,062,574 2,049,955 2,037,686 Income (loss) from swap 304,887 304,887 317,506 329,775 B) ∆ Accumulated variation in swap 12,619 24,888 C) Final result (B-A) 12,619 24,888 Risk variable Probable scenario Possible scenario Remote scenario CDI 1.90% 2.38% 2.85% USD 5.1967 5.1967 5.1967 EUR 6.3779 6.3779 6.3779 Libor 0.2666% 0.2666% 0.2666% USD sensitivity scenario Description December 2020 Probable scenario Possible scenario Remote scenario Fair value in USD and EUR (KFW Finnvera, Scotia, BofA and BNP) 2,367,461 2,367,461 2,816,847 3,266,23 A) ∆ Accumulated variation in debt 449,386 898,772 Fair value of the long position of swap (+) 2,367,461 2,367,461 2,816,847 3,266,233 Fair value of the short position of swap (-) 2,062,574 2,062,574 2,062,574 2,062,574 Income (loss) from swap 304,887 304,887 754,273 1,203,659 B) ∆ Accumulated variation in swap 449,386 898,772 C) Final result (B-A) - - Risk variable Probable scenario Possible scenario Remote scenario CDI 1.90% 1.90% 1.90% USD 5.1967 6.4959 7.7951 EUR 6.3779 6.3779 6.3779 Libor 0.2666% 0.2666% 0.2666% EUR sensitivity scenario Description December 2020 Probable scenario Possible scenario Remote scenario Fair value in USD and EUR (KFW Finnvera, Scotia, BofA and BNP) 2,367,461 2,367,461 2,509,940 2,652,419 A) ∆ Accumulated variation in debt 142,479 284,958 Fair value of the long position of swap (+) 2,367,461 2,367,461 2,509,940 2,652,419 Fair value of the short position of swap (-) 2,062,574 2,062,574 2,062,574 2,062,574 Income (loss) from swap 304,887 304,887 447,366 589,845 B) ∆ Accumulated variation in swap 142,479 284,958 C) Final result (B-A) - - Risk variable Probable scenario Possible scenario Remote scenario CDI 1.90% 1.90% 1.90% USD 5.1967 5.1967 5.1967 EUR 6.3779 7.9725 9.5669 Libor 0.2666% 0.2666% 0.2666% Scenario sensitivity to Libor Description December 2020 Probable scenario Scenario Possible Scenario Remote Fair value in USD and EUR (KFW Finnvera, Scotia, BofA and BNP) 2,367,461 2,367,461 2,368,026 2,368,591 A) ∆ Accumulated variation in debt 565 1,130 Fair value of the long position of swap (+) 2,367,461 2,367,461 2,368,026 2,368,591 Fair value of the short position of swap (-) 2,062,574 2,062,574 2,062,574 2,062,574 Income (loss) from swap 304,887 304,887 305,452 306,017 B) ∆ Accumulated variation in swap 565 1,130 C) Final result (B-A) - - Risk variable Probable scenario Possible scenario Remote scenario CDI 1.90% 1.90% 1.90% USD 5.1967 5.1967 5.1967 EUR 6.3779 6.3779 6.3779 Libor 0.2666% 0.3333% 0.3999% As the Company has derivative financial instruments for the purposes of protection of its respective financial liabilities, the changes in the scenarios are accompanied by the respective object of protection, thus showing that the effects related to the exposure generated in the swaps It is noteworthy that the operations with derivative financial instruments contracted by the company have as sole objective the patrimonial protection. In this way, an improvement or worsening in their respective market values will be equivalent to an inverse movement in the corresponding portions of the value of the financial debt contracted, object of the derivative financial instruments of the company. The sensitivity analyses for derivative financial instruments in force on December 31, 2020 were carried out considering, basically, the assumptions related to changes in market interest rates and the change in the US dollar used in swap Chart of gains and losses with derivatives during the year 2020 Net income (loss) from derivative operations 290,856 Income (loss) from operations with other derivatives 155,165 Capital management The Group's objectives in managing its capital are to safeguard its business continuity capacity to offer return to shareholders and benefits to the other stakeholders besides maintaining a capital structure to reduce this cost. To maintain or adjust the group's capital structure, management may review the dividend payment policy, return capital to shareholders, or issue new shares or sell assets to reduce, for example, the level of debt. The financial leverage ratios on December 31, 2020 and 2019 can be summarized as follows: 2020 2019 Total loans and derivatives (notes 19 and 36) 1,879,109 1,986,982 Lease - Liabilities (note 15) 8,378,835 7,780,870 Lease - Assets (note 15) (162,198) (156,378) Less: Cash and cash equivalents (note 4) (2,575,290) (2,284,810) FIC (note 5) (2,070,438) (654,479) Net debt 5,450,018 6,672,185 Other derivatives (note 36) 161,429 - Adjusted net debt 5,611,447 6,672,185 EBITDA (1) 8,330,038 9,643,838 Leverage ratio 0.65 0.69 (1) Reconciliation to the directly comparable GAAP measure Net income 1,828,254 3,622,127 Depreciation and amortization 5,527,012 5,128,981 Financial Income (Expenses) 810,622 (21,210) Income tax and social contribution 164,150 913,940 EBITDA (1) 8,330,038 9,643,838 (1) EBITDA: Presentation of earnings before interest, tax, depreciation and amortization Changes in financial liabilities Changes in liabilities arising from financing activities such as loans and financings, leases and financial instruments are presented below: Loans and financing Leases Derivative financial instruments (Assets) Liabilities December 31, 2019 2,029,088 7,780,870 (42,106) Additions 1,800,000 1,966,355 (161,429) Remeasurement - (443,666) - Financial expenses 90,500 797,569 13,016 Foreign variations exchange net 305,010 - (305,012) Payments (1,879,566) (1,722,293) 29,610 December 31, 2020 2,345,032 8,378,835 (465,921) |
37. Pension plan and other post
37. Pension plan and other post-employment benefits | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of defined benefit plans [abstract] | |
Pension plan and other post-employment benefits | 37. Pension plan and other post-employment benefits December 2020 December 2019 PAMEC/asset policy and medical plan 7,346 5,782 ICATU, SISTEL and FUNCESP The Company has been sponsoring defined benefit private pension plans for a group of employees from the former TELEBRÁS system, which are currently under the administration of the Sistel Foundation for Social Security and the ICATU multi-sponsor fund. In addition to the plans coming from the TELEBRÁS system, there is also the plan administered by the CESP foundation resulting from the incorporation of AES Atimus. Such pension plans, as well as medical plans, are briefly explained below: PBS assisted (PBS-Tele Celular Sul and PBS-Tele Nordeste Celular): PBS (PBS Tele Celular Sul and PBS Tele Nordeste Celular): Administration agreement: PAMEC/Asset Policy: AES Telecom Medical care plan Fiber: The actuarial position of liabilities and assets related to retirement and health care plans, on December 31, 2020, in accordance with the rules provided for by IAS 19 is presented below. a) Effects on the base date of December 31: Plans Total PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical care plan 2020 2019 Reconciliation of assets and liabilities on 12/31/2020 (*) (*) Present value of the actuarial obligations 41,852 10,072 147 858 12,090 4,343 69,362 54,877 Fair value of the plan assets (57,479) (12,998) (434) - (9,945) - (80,856) (54,855) Present value of the obligations exceeding the fair value of the assets (15,627) (2,926) (287) 858 2,145 4,343 (11,494) 22 Amount recognized in other comprehensive income - 2,023 - - - - 2,023 - Net actuarial liabilities/(assets) (15,627) (903) (287) 858 2,145 4,343 (9,471) 22 (*) No asset was recognized by the sponsors, due to the impossibility of reimbursing this surplus, and the fact that the sponsor’s contributions will not be reduced in the future. b) Changes in net actuarial liabilities (assets) Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical care plan Actuarial liabilities (assets) on 12/31/2019 (3,564) (3,420) (274) 1,080 2,117 2,585 Expense (revenue) recognized in income (loss) (243) (230) (19) 72 272 329 Contributions of the sponsor - - - (48) - (36) Recognized actuarial (gains) or losses (11,820) 2,747 6 (246) (244) 1,465 Net actuarial liabilities (assets) on 12/31/2020 (15,627) (903) (287) 858 2,145 4,343 c) Reconciliation of present value of obligations Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical care plan Value of obligations on 12/31/2019 40,427 10,107 151 1,080 11,099 2,585 Cost of current service 15 - - - 125 150 Interest on actuarial obligation 2,650 658 10 72 774 179 Benefits paid in the year (2,718) (756) (9) (48) (494) (36) Contributions paid by participants - 77 (Gains)/losses in obligations 1,478 63 (5) (246) 509 1,465 Value of obligations on 12/31/2020 41,852 10,072 147 858 12,090 4,343 d) Reconciliation of the fair value of the assets Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical care plan Fair value of assets on 12/31/2019 43,991 13,527 425 - 8,982 - Benefits paid in the year (2,718) (756) (9) - (494) - Actual earnings from assets during the year 2,893 888 29 - 627 - Actuarial gain (loss) on plan assets 13,313 (661) (11) - 753 - Contributions paid by participants - - - - 77 - Contributions of sponsor converted in the plan - - - - - Fair value of assets on 12/31/2020 57,479 12,998 434 - 9,945 - e) Payments or contributions expected for 2021 Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical care plan Current service cost (with interest) 17 - - - - 213 Interest on actuarial obligations 2,743 640 10 57 868 322 Earnings expected from assets (3,799) (834) (29) - (708) - Interest on the effect of the (asset)/liability limit 1,056 60 20 - - - Total unrecognized net expense (revenue) 17 (134) 1 57 160 535 Actuarial assumptions adopted in the calculations The main actuarial assumptions adopted in the calculation were as follows: Nominal discount rate for the actuarial obligation: PBS South: 6.76% / 3.15%; PBS Nordeste: 6.86% / 3.25%; CA: 6.86% / 3.25%; PBS-A: 6.60% / 3.00%; AES: 7.43% / 3.80%; PAMEC: 6.81% / 3.20%; FIBER: 7.43% / 3.80% Salary growth rate - nominal: PBS: 3.50%/ 0.00% CA, PBS-A, AES, PAMEC and FIBER: Not applicable Biometric general mortality table: PBS, CA, PAMEC and FIBER: AT-2000 segregated per sex, decreased by 10% Biometric table of new disability benefit vested: PBS and FIBER: Álvaro Vindas; CA, PBS-A, AES and PAMEC: Not applicable Expected turnover rate: PBS: Null; CA, PBS-A, AES and PAMEC: Not applicable; FIBER: 0.15/ (length of service + 1), being null as of 50 years old Probability of retirement: PBS and FIBER: 100% at 1st eligibility; CA, PBS-A, AES and PAMEC: Not applicable Estimated long-term inflation rate PAMEC and FIBER: 6.60% / 3.00% Determination method Projected Unit Credit Method |
38. Insurance
38. Insurance | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Insurance | 38. Insurance The Company maintains a policy of monitoring the risks inherent in its operations. As a result, on December 31, 2020, the company had insurance contracts in force to cover operational risks, civil liability, cyber risks, health, among others. The management of the company understands that the policies represent sufficient amounts to cover any losses. The main assets, liabilities or interests covered by insurance and their respective amounts are as follows: Description Insured amounts Operating risks R$ 34,983,023 General Civil Liability - RCG R$ 80,000 Cyber risks R$ 28,521 Automobile (executives and operational fleet) R$ 1,000 for optional civil liability (property damage and bodily harm) and R$ 100 for pain and suffering. |
39. Supplementary information t
39. Supplementary information to the cash flow | 12 Months Ended |
Dec. 31, 2020 | |
Supplementary Information To Cash Flow | |
Supplementary information to the cash flow | 39. Supplementary information to the cash flow 2020 2019 2018 Transactions not involving cash Additions to property, plant and equipment and intangible assets - with no cash effect (1,315,151) (6,653,985) (38,944) Increase in lease liabilities - no effect on cash 1,315,151 6,653,985 38,944 |
40. Relevant transactions
40. Relevant transactions | 12 Months Ended |
Dec. 31, 2020 | |
Relevant Transactions | |
Relevant transactions | 40. Relevant transactions Results of Oi’s mobile assets auction and signing of the purchase and sale agreement On December 14, 2020, in continuity with the Material Facts disclosed on March 10, 2020, July 18, 2020, July 27, 2020, August 7, 2020 and September 7, 2020, TIM S.A. informed its shareholders and to the market in general that the offer made by TIM, jointly with Telefônica Brasil S.A. and Claro S.A. (jointly, the “Buyers”), was declared the winner of the competitive bid for the sale of assets of the Oi Group’s mobile telephony operation (Personal Mobile Service) (“UPI Ativos Móveis”). The Judicial Reorganization Court approved the Buyers’ proposal as the winner of the competitive sale process of UPI Ativos Móveis, after the favorable manifestations of the Public Ministry of the State of Rio de Janeiro and the Judicial Administrator. The total value of the transaction was R$ 16.5 billion, plus the value of the consideration offered to the Oi Group for Transmission Capabilities Contracts in the take-or-pay modality, to be entered into at the time of the completion of the transaction and whose NPV (net present value) corresponds to approximately R$ 819 million. Of the amount of R$ 16.5 billion, R$ 15.744 billion refer to the Base Price of the offer and R$ 756 million correspond to Transition Services to be provided by Oi Group for the Buyers for up to 12 months. TIM will pay 44% of the Base Price and Transition Services amounts, totaling approximately R$ 7.3 billion. Regarding the Capacity Contract, the Company will be responsible for paying amounts that brought to present value total approximately R$ 476 million (58% of the contract’s NPV considering its specificities). TIM will be responsible for the following: • Clients: approximately 14.5 million customers (corresponding to 40% of the total customer base of UPI Ativos Móveis) – according to Anatel’s access base from April 2020. The allocation of customers among Buyers took into account criteria that favor competition between operators currently operating in the Brazilian market; • Radio frequency: approximately 49 MHz as a national average weighted by the population (54% of UPI Ativos Móveis’ radio frequencies). The frequency division between Buyers strictly respects the spectrum limits per group established by Anatel; • Infrastructure: approximately 7,200 mobile access sites (corresponding to 49% of the total of UPI Ativos Móveis’ sites). On January 28th, 2021, the Purchase and Sale of Shares and Other Covenants Agreement (“Agreement”) was signed by Oi mobile S.A., as Seller; TIM, Telefônica Brasil S.A. and Claro S.A., as Buyers; and Oi S.A. and Telemar Norte Leste S.A., as intervening parties and guarantors of Seller's obligations. The conclusion of the acquisition by the Buyers of UPI Mobile Assets shall take place in accordance with the plan for the segregation of such assets – each of which at the end of each Buyer will acquire shares in an SPE containing its share of UPI Mobile Assets. The conclusion of the acquisition also is subjected to certain precedent conditions usually applicable to this type of transaction and provided for in the Agreement, among which ANATEL's prior consent and approval by CADE, as well as, if applicable, the submission to the Company's general shareholders' meeting, pursuant to article 256 of the Brazilian Corporate Law, in which case additional information will be disclosed in due course. Approval of constitution of a company to provide residential fiber optic infrastructure services TIM S.A., giving continuity to its 2020-2022 Strategic Plan, announced, on December 10, 2020, that TIM’s Board of Directors, after analyzing the studies carried out and the non-binding proposals received, approved, at a meeting held on the same date, the constitution of a company, in preparation for future segregation of assets and provision of residential fiber optic infrastructure services. This process is one of the intermediate steps in the transformation of TIM in a provider of broadband services and aims to create an open fiber optic infrastructure vehicle (“FiberCo”) with the acquisition of a strategic partner that will become a partner of FiberCo. FiberCo will operate in the wholesale market and can provide last-mile fiber connectivity and transportation services to market operators, with TIM as the anchor client. The purpose of this transaction is to accelerate the growth of the residential broadband business and allow the appropriate valuation of part of TIM’s infrastructure. |
41. Subsequent Events
41. Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Subsequent Events | 41. Subsequent events TIM obtains the right to exercise shares of Banco C6 On February 1, 2021, TIM announced that, within the scope of the strategic partnership (“Partnership”) entered into with Banco C6 S.A. (“C6” or “Bank”), the right to exercise ordinary shares equivalent to the indirect interest of approximately 1.4% of C6’s capital as a result of meeting, in December 2020, the 1st level of the agreed targets, which will be exercised when the Company’s management deems it more practical and convenient. It is important highlighting that the aforementioned shares call option will grant TIM, when exercised, a minority position and without a control or significant influence over the management of C6. C6 is a digital bank with outstanding growth in Brazil, being the institution that grew the most in the 3rd quarter of 2020, with over 4 million bank accounts opened until November. The Bank has approximately R$ 5.3 billion in total assets and transacts over R$ 1.5 billion in its payment platform per month. In less than a year, the Partnership between companies generated a significant number of open accounts through the combined offers of telecommunications and financial services, which reinforces the relationship between TIM and C6 with significant results and confirms the innovative and customer convenience focused character. Credit Agreement In April 2021, the Company entered into two loan agreements with Banks BNP and Bank of Nova Scotia, in the total amount of R$1.1 billion. Those agreements are payable in three years. |
3. Critical estimates and jud_2
3. Critical estimates and judgments in applying the Company's accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Estimates And Areas Where Judgment Is Significant In The Application Of The Company'S Accounting Policies [Abstract] | |
Impairment loss on non-financial assets | (a) Impairment loss on non-financial assets Impairment losses occur when book value of an asset or cash generating unit exceeds its recoverable value, which is the highest of fair value less selling costs and value in use. The calculation of fair value less selling costs is based on information available on similar assets’ selling transactions or market prices less additional costs to dispose of the asset. The main non-financial assets for which this assessment was made are goodwill recorded by the Company (note 14) and its tangible assets. |
Income tax and social contribution (current and deferred) | (b) (Current and deferred) income tax and social contribution Income tax and social contribution (current and deferred) are calculated according to interpretations of current legislation and IAS 12. This process typically involves complex estimates to determine taxable income and temporary differences. In particular, the deferred assets on tax losses, negative basis of social contribution and temporary differences are recognized to extent that it is probable that future taxable income is available and can be used. The measurement of the recoverability of deferred income tax on tax losses, negative basis of social contribution and temporary differences takes the history of taxable income into account, as well as the estimate of future taxable income (note 10). |
Provision for legal and administrative proceedings | (c) Provision for legal and administrative proceedings The legal and administrative proceedings are analyzed by the Management along with its legal advisors (internal and external). The Company considers factors in its analysis such as hierarchy of laws, precedents available, recent court judgments, their relevance in the legal system and payment history. These assessments involve Management’s judgment (note 23). |
Fair value of derivatives and other financial instruments | (d) Fair value of derivatives and other financial instruments The financial instruments presented in the balance sheet at fair value are measured using valuation techniques that consider observable data or observable data derived from market (note 36). |
Unbilled revenues | (e) Unbilled revenues Since some cut dates for billing occur at intermediate dates within the months of the year, as the end of each month there are revenues earned by the Company, but not actually invoiced to its customers. These unbilled revenues are recorded based on estimate that takes into consideration historical consumption data, number of days elapsed since the last billing date, among others (note 26). |
Leases | (f) Leases The new standard establishes the principles for the recognition, measurement, reporting and disclosure of leases, and requires the recognition by lessees of assets and liabilities arising from lease agreements, except for short-term contracts, that is, with a term of 12 months or less, or contracts in which the value of the underlying assets is low. The Company decided to adopt IFRS16 retrospectively, while the cumulative effect of the initial application is recognized on the date of initial application, that is, January 1, 2019 in total amount of R$5.256.114. Additionally, the Company decided to take practical steps in its initial adoption of the standard, such as: (i) non-revaluation of financial lease agreements previously recognized according to IAS 17 upon initial measurement of financial lease liabilities, according to the new accounting pronouncement, and IFRIC 4; (ii) exclusion of lease agreements expiring in the next 12 months and unlikely to be renewed by the Company and the exclusion of leasing contracts considered of low value; (iii) non-application of this new standard to agreements not previously identified as leases, using IAS 17 and IFRIC 4; and (iv) application of a single discount rate to the leasing portfolio with reasonably similar characteristics (such as leasing with a similar remaining leasing period for a similar class of underlying assets in a similar economic setting). The Company has a significant number of the lease contracts in which it acts a lessee, and certain judgments were exercised by Company´s management in measuring lease liabilities and right-of-use assets, such as: (i) estimate of the lease term, considering non-cancellable period and the period covered by options to extend the contract term, when the exercise depends only from the Company, and this exercise is reasonably certain; (ii) using certain assumptions to calculate the discount rate. The Company is not able to readily determine the interest rate implicit on the lease and, therefore, considers its incremental rate on loans to measure lease liabilities. Incremental rate on the lessee´s borrowing is the interest rate that the lessee would have to pay when borrowing, for a similar term and with a similar guarantee, the resources necessary to obtain the asset with a value similar to the right of use asset in a similar economic environment. Thus, this assessment of lease, considering non-cancellable period and the period covered by options to extend the contract term. The Company estimates the incremental rate using observable data (such as market interest rates) when available and considers aspects that are specific to the Company (such as the cost of debt) in this estimate. |
2. Management statement and b_2
2. Management statement and basis of preparation of the consolidated financial statements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Management Statement And Basis Of Preparation Of Consolidated Financial Statements | |
Reconciliation of the Company and TIM S.A shareholders' equity | The impact of the reverse merger of TIM Participações by TIM S.A. was limited to reclassifications among certain accounts within the current year statement of changes in shareholders’ equity as follows: Equity accounts The Company’s equity reserves Impact on TIM S.A. statement of changes in equity TIM Participações Capital Stock 13,477,891 3,611,593 9,866,298 Capital reserve 397,183 (20,892) 418,075 Legal reserve 1,036,194 (57,603) 1,093,797 Tax benefit reserve 1,781,560 - 1,781,560 Reserve for expansion 6,499,602 (3,535,824) 10,035,426 Treasury shares (4,837) 5,456 (10,293) Accumulated other comprehensive income (4,848) (2,730) (2,118) Total 23,182,745 - 23,182,745 |
4. Cash and cash equivalents (T
4. Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents [abstract] | |
Schedule of financial assets | Company’s Management classifies its financial assets upon initial recognition. 2020 2019 Cash and banks 100,008 101,928 Unrestrictedly available financial investments: Bank Deposit Certificates (CDB)/Repurchase and resale agreements 2,475,282 2,182,882 2,575,290 2,284,810 |
5. Marketable securities (Table
5. Marketable securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Marketable Securities [Abstract] | |
Schedule of marketable securities | 2020 2019 FUNCINE (1) 7,061 3,849 Fundo soberano (2) 5,220 7,329 FIC: (3) Government bonds (3) 1,345,797 179,390 CDB (4) 17,370 216,196 Financial bills (5) 292,500 105,857 Other (6) 409,551 145,707 2,077,499 658,328 Current (2,070,438) (654,479) Non-current 7,061 3,849 (1) On December 2017, the Company, with the aim of using tax deductibility benefit for income tax and social contribution purposes, started investing in the National Film Industry Financing Fund (FUNCINE). The average remuneration in 2020 is negative by 0.34% (9.18% on December 31, 2019). The position on December 31, 2020 in the amount of R$ 7,061 (R$ 3,849 million in 2019). ( 2) “Fundo Soberano” is composed only of federal government bonds. The average remuneration in 2020 is 87.71% (97.62% on December 31, 2019) of the variation of the Interbank Deposit Certificate (CDI). (3) In August 2017, the Company invested in open FIC's (Quota Investment Fund). Funds are mostly made up of government bonds and papers from top-tier financial institutions. The average remuneration in 2020 of Investment Fund in Quotas was 112.72% (99.67 on December 31, 2019) of the variation of the Interbank Deposit Certificate (CDI). Government bonds are fixed income financial instruments issued by the National Treasury to finance the activities of the Federal Government. (4) The CDB operations are issued by the banks with the commitment of stock buyback by the bank itself and with predetermined taxes. (5) The Financial bills is a fix income tittle emitted by financial institutions with the objective of a long-term fund raising (6) Is represented by: Debentures, FIDC, commercial notes, promissory notes, bank credit note. |
6. Trade accounts receivable (T
6. Trade accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade Accounts Receivable [Abstract] | |
Schedule of trade account receivables | The average rate considered in calculating the present value of accounts receivable recorded in the long term is 0.22% (0.07% in 2019). 2020 2019 Trade accounts receivable 3,180,661 3,287,855 Accounts receivable, gross 3,831,921 4,061,932 Billed services 2,039,403 2,076,569 Unbilled services 817,669 858,418 Network usage 399,083 438,168 Sale of goods 552,962 670,573 Contractual assets (note 22) 14,914 15,142 Other accounts receivable 7,890 3,062 Provision for expected credit losses (651,260) (774,077) Current (3,051,834) (3,184,780) Non-current 128,827 103,075 |
Schedule of changes in the allowance for doubtful accounts | The movement of the provision for loss on expected settlement credits, accounted for as an asset reduction account, was as follows: 2020 2019 Opening balance 774,077 686,928 Set-up of provision (note 27) 552,817 748,291 Write-off (675,634) (661,142) Closing Balance 651,260 774,077 |
Schedule of aging of accounts receivable | The aging of accounts receivable is as follows: 2020 2019 Total 3,831,921 4,061,932 Falling due 2,785,469 2,576,307 Overdue (days): Up to 30 248,955 328,457 Up to 60 84,218 146,200 Up to 90 71,635 149,852 >90 641,644 861,116 |
7. Inventory (Tables)
7. Inventory (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory [Abstract] | |
Schedule of inventory | Inventories are presented at the average acquisition cost. A loss is recognized to adjust the cost of Handsets and accessories to the net realizable value (selling price), when this value is less than the average acquisition cost. 2020 2019 Total Inventories 246,602 203,278 Inventories 257,477 214,889 Cell phones and tablets 186,961 146,295 Accessories and prepaid cards 55,558 61,436 TIM chips 14,958 7,158 Losses on adjustment to realizable value (10,875) (11,611) |
8. Recoverable indirect taxes_2
8. Recoverable indirect taxes, charges and contributions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Indirect Taxes, Charges And Contributions Recoverable [Abstract] | |
Schedule of recoverable indirect taxes, fees and contributions | 2020 2019 Recoverable indirect taxes, fees and contributions 1,230,801 1,243,633 ICMS 1,188,018 1,201,502 Other 42,783 42,131 Current (374,015) (420,284) Non-current 856,786 823,349 |
9. Direct taxes, charges and _2
9. Direct taxes, charges and contributions recoverable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Direct Taxes, Charges And Contributions Recoverable [Abstract] | |
Schedule of direct taxes, fees and contributions recoverable | 2020 2019 Direct taxes, fees and contributions recoverable 2,698,239 3,762,800 Income tax and social contribution (i) 381,905 428,443 PIS/COFINS (ii) 2,253,545 3,244,549 Other 62,789 89,808 Current (1,421,112) (1,395,193) Non-current 1,277,127 2,367,607 (i) The amounts of income tax and social contribution are as substantially related to: (a) advances made over the period during which the use will take place at the closing of the current year and any balances in the next year; and (b) other income tax and social contribution credits from previous years whose current estimated period of use will be more than 12 months later. (ii) The Recoverable PIS/COFINS amounts mainly refer to credits from a legal proceeding filed by TIM Celular S.A. (ultimately merged into TIM S.A., as well as TIM S.A. itself), with a favorable final decision in Higher Courts which discussed the exclusion of the ICMS from the PIS and COFINS calculation bases. According to the Company's internal evaluation, we expect to use such credits within the statute of limitations of up to 5 years. |
10. Deferred income tax and s_2
10. Deferred income tax and social contribution (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Income Tax And Social Contribution [Abstract] | |
Schedule of deferred taxes assets and liabilities | The amounts recorded are as follows: 2020 2019 Tax loss carryforwards and negative basis of social contribution 475,128 800,711 Temporary differences: Provision for legal and administrative proceedings 303,948 295,853 Losses on doubtful accounts 224,459 271,611 Adjustment to present value - 3G license 5,240 7,182 Rental of infrastructure - LT Amazonas 29,971 27,434 Deferred income tax on accounting adjustments - 56,208 Provision for profit sharing of employees 36,915 23,704 Taxes with enforceability suspended (1) 258,246 12,872 Amortized Goodwill-TIM Fiber (370,494) (370,494) Derivative financial instruments (4) (154,718) (13,139) Capitalized interest - 4G (262,608) (291,783) Deemed cost – TIM S.A. (53,792) (67,748) Exclusion of ICMS from PIS and COFINS calculation basis (2) - (1,023,928) IFRS16 303,833 209,234 Accelerated depreciation (3) (266,464) - Other 20,982 87,214 550,646 24,931 Deferred income tax and social contribution on temporary differences, not yet recognized - (72,665) 550,646 (47,734) Deferred Tax Asset 550,646 - Deferred Tax liability - (47,734) (1) Mainly represented by the Fistel fee for the financial year 2020, the commencement of its payment of which was postponed, on the basis of Provisional Act 952 of April 15, 2020. (2) In March 2017, the Federal Supreme Court (“STF”) recognized the unconstitutionality of including ICMS amounts in the calculation basis of PIS and COFINS contributions. In June 2019, due to the final and unappealable decision, the amounts were recorded (see note 9). For purposes of taxation of IRPJ and CSLL, the management of the Company also supported by external legal opinions, understood to defer it until the time of the effective financial availability of the credit. In this way, deferred tax liabilities relating to the full amount, in the amount of R$ 1,039.7 million, were constituted. In August 2020, due to the procedural movement, the value was fully realized from the recalculation of the IRPJ and the CSLL, referring to the year ending in December 2019, with the objective of adding the resulting credit from this ICMS exclusion process from the calculation bases of the PIS and the COFINS to the calculation bases of said taxes. (3) As from the 1Q20, TIM S.A. excludes the portion of acceleration of depreciation of movable assets belonging to property, plant and equipment assets from the calculation basis of the IRPJ and CSLL, due to their uninterrupted use in three operating shifts, supported by technical expert report, as provided for in Article 323 of the RIR/2018, or by the adequacy to the tax depreciation provided for in IN 1700/2017. Such tax adjustment generated a deferred liability of R$ 266.5 million until December 31, 2020 and applied as of January 1, 2020. (4) In 2020, R$ 53 million of deferred tax liabilities were recorded on the gain arising from the mark-to-market of the share subscription option related to Banco C6 partnership (note 41). |
Schedule of expectations to recover the credits | Based on these projections, the Company has the following expectation of recovery of credits: Deferred income tax and social contribution Tax losses and negative basis Temporary differences 2021 157,080 464,891 2022 244,156 (43,881) 2023 73,892 (77,717) 2024 onwards - (267,775) Total 475,128 75,518 550,646 |
11. Prepaid expenses (Tables)
11. Prepaid expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expenses [Abstract] | |
Schedule of prepaid expenses | 2020 2019 223,394 245,524 Rentals and reinsurance 69,208 76,663 Incremental costs for obtaining customer contracts (1) 125,114 158,093 Other 29,072 10,768 Current portion (149,796) (175,868) Non-current 73,598 69,656 (1) It is substantially represented by incremental costs related to sales commissions paid to partners for obtaining customer contracts arising from the adoption of IFRS 15, which are deferred to the result in accordance with the term of the contract and/or economic benefit, usually from 1 to 2 years. |
12. Judicial deposits (Tables)
12. Judicial deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Judicial Deposits [Abstract] | |
Schedule of detailed information about judicial deposits | They are recorded at historical cost and updated according to current legislation: 2020 2019 794,755 1,006,899 Civil 315,312 355,093 Labor 149,390 245,928 Tax 181,670 203,110 Regulatory 111 111 Online attachment (*) 148,272 202,657 (*) Refer to legal blockages directly in the company's current accounts and financial investments linked to certain legal proceedings. This amount is periodically analyzed and when identified, reclassification is made to one of the other specific accounts of the legal deposit item. |
13. Property, plant and equip_2
13. Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Schedule of changes in property, plant and equipment | Gains and losses from disposals are determined by the comparison between the amounts of these disposals and the book value upon the transaction and are recognized in "Other net operating revenues (expenses)" in the statement of income. · Changes in property, plant and equipment Balance at December 2019 Additions Write-offs Transfers Balance at December 2020 Total cost of property, plant and equipment 43,358,751 4,687,207 (616,791) - 47,429,167 Commutation / transmission equipment 22,817,681 10,464 (174,249) 3,222,020 25,875,916 Optical fiber cables 813,589 - - 64,511 878,100 Leased handsets 2,489,995 912 (7,140) 159,569 2,643,336 Infrastructure 6,096,847 92,234 (8,063) 255,554 6,436,572 Informatics assets 1,721,251 1 (9,996) 59,130 1,770,386 General use items 859,505 1 (1,544) 44,325 902,287 Right of use in leases (1) 6,933,416 1,849,539 (415,060) - 8,367,895 Land 40,794 - - - 40,794 Construction in progress 1,585,673 2,734,056 (739) (3,805,109) 513,881 - Total accumulated depreciation (25,746,587) (3,767,678) 185,796 - (29,328,469) Commutation / transmission equipment (16,389,213) (1,906,480) 165,167 - (18,130,526) Optical fiber cables (410,567) (72,046) - - (482,613) Leased handsets (2,256,863) (143,309) 1,955 - (2,398,217) Infrastructure (3,593,833) (432,549) 7,528 - (4,018,854) Informatics assets (1,565,309) (62,649) 9,988 - (1,617,970) General use items (590,658) (48,403) 1,158 - (637,903) Right-of-use in leases (940,144) (1,102,242) - - (2,042,386) Total 17,612,164 919,529 (430,995) - 18,100,698 Commutation / transmission equipment 6,428,468 (1,896,016) (9,082) 3,222,020 7,745,390 Optical fiber cables 403,022 (72,046) - 64,511 395,487 Leased handsets 233,132 (142,397) (5,185) 159,569 245,119 Infrastructure 2,503,014 (340,315) (535) 255,554 2,417,718 Informatics assets 155,942 (62,648) (8) 59,130 152,416 General use items 268,847 (48,402) (386) 44,325 264,384 Right-of-use in leases 5,993,272 747,297 (415,060) - 6,325,509 Land 40,794 - - - 40,794 Construction in progress 1,585,673 2,734,056 (739) (3,805,109) 513,881 (1) The amount of R$ 415,060 is represented by remeasurement of contracts and includes changes in the term and scope of leases and a review of the estimate in relation to low-value vehicle contracts. Balance for Dec/18 Adoption of IFRS 16 Additions Disposals Transfers Balance for Dec/19 Other changes Total cost of property, plant and equipment 33,832,803 5,256,114 4,855,684 (183,384) - (408,118) 43,353,099 Commutation/transmission equipment 20,806,249 - 17,662 (133,789) 2,121,907 - 22,812,029 Fiber optic cables 762,175 - - - 51,414 - 813,589 Leased handsets 2,313,945 - 519 (20,194) 195,725 - 2,489,995 Infrastructure (i) 6,133,810 - - (18,684) 294,851 (313,130) 6,096,847 Informatics assets 1,679,328 - - (9,366) 51,289 - 1,721,251 General use assets 796,839 - - (623) 63,289 - 859,505 Rights-of-use in leases - 5,256,114 1,772,290 - - (94,988) 6,933,416 Land 40,794 - - - - - 40,794 Construction in progress 1,299,663 - 3,065,213 (728) (2,778,475) - 1,585,673 Total of Accumulated depreciation (22,629,181) - (3,262,726) 150,972 - - (25,740,935) Commutation/transmission equipment (14,936,069) - (1,577,490) 129,998 - - (16,383,561) Fiber optic cables (345,532) - (65,035) - - - (410,567) Leased handsets (2,132,227) - (131,341) 6,705 - - (2,256,863) Infrastructure (i) (3,157,890) - (440,224) 4,281 - - (3,593,833) Informatics assets (1,512,114) - (62,561) 9,366 - - (1,565,309) General use assets (545,349) - (45,931) 622 - - (590,658) Right-of-use in leases - - (940,144) - - - (940,144) Total 11,203,622 5,256,114 1,592,958 (32,412) - (408,118) 17,612,164 Commutation/transmission equipment 5,870,180 - (1,559,828) (3,791) 2,121,907 - 6,428,468 Fiber optic cables 416,643 - (65,035) - 51,414 - 403,022 Leased handsets 181,718 - (130,822) (13,489) 195,725 - 233,132 Infrastructure (i) 2,975,920 - (440,224) (14,403) 294,851 (313,130) 2,503,014 Informatics assets 167,214 - (62,561) - 51,289 - 155,942 General use assets 251,490 - (45,931) (1) 63,289 - 268,847 Rights-of-use in leases - 5,256,114 832,146 - - (94,988) 5,993,272 Land 40,794 - - - - - 40,794 Construction in progress 1,299,663 - 3,065,213 (728) (2,778,475) - 1,585,673 The lease rights of use are represented by leased agreements of identifiable assets within the scope of IFRS16 standard. These rights refer to leases of network infrastructure, stores and kiosks, real estate, land (Network) and fiber, as below: Right-of-use in lease Network infrastructure Vehicles Shops & kiosks & real estate Land (Network) Fiber Total Balances at December 31, 2019 3,172,142 6,988 479,472 1,539,913 794,757 5,993,272 Additions for the year 492,771 4,926 142,174 251,886 957,782 1,849,539 Remeasurement (196,967) (7,426) (114,726) (89,335) (6,606) (415,060) Depreciation (448,046) (4,488) (106,658) (201,555) (341,495) (1,102,242) Balances at December 31, 2020 3,019,900 - 400,262 1,500,909 1,404,438 6,325,509 Amortization percentage per year - % 12.41 38.35 22.60 9.87 24.69 |
Schedule of depreciation rates | Annual rate % Commutation / transmission equipment 8–14.29 Fiber optic cables 4–10 Leased handsets 14.28–50 Infrastructure assets 4–20 Informatics assets 10–20 General use assets 10–20 |
14. Intangible assets (Tables)
14. Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of movement in intangible assets | (a) Changes in intangible assets Balance at December 2019 Additions/ Amortization Write-offs Transfers Balance at December 2020 Total cost of intangible assets 30,229,359 1,215,636 (945) - 31,444,050 Software licenses 18,184,382 - (939) 934,072 19,117,515 Authorizations 9,811,794 32,105 (6) 87,355 9,931,248 Goodwill 1,527,219 - - - 1,527,220 Infrastructure right-of-use - LT Amazonas 169,327 8,539 - - 177,866 Other assets 327,360 - - 2,266 329,626 Intangible assets under development 209,276 1,174,992 - (1,023,693) 360,575 Total accumulated amortization (20,561,032) (1,856,917) 974 - (22,416,975) Software licenses (15,093,166) (1,286,295) 974 - (16,378,487) Authorizations (5,278,413) (537,828) - - (5,816,241) Infrastructure right-of-use - LT Amazonas (60,204) (7,762) - - (67,966) Other assets (129,249) (25,032) - - (154,281) Total 9,668,326 (641,281) 29 - 9,027,075 Software licenses (c) 3,091,216 (1,286,295) 35 934,072 2,739,028 Authorizations (f) 4,533,381 (505,723) (6) 87,355 4,115,007 Goodwill (d) 1,527,219 - - - 1,527,220 Infrastructure right-of-use - LT Amazonas (e) 109,123 777 - - 109,900 Other assets 198,111 (25,032) - 2,266 175,345 Intangible assets under development 209,276 1,174,992 - (1,023,693) 360,575 Balance for Dec/18 Additions/ Amortization Transfers Other Changes (g) Balance for Dec/19 Total cost of intangible assets 29,366,779 961,213 - (98,633) 30,229,359 Right to use software 17,142,641 - 1,041,741 - 18,184,382 Authorizations 7,638,970 26,968 2,255,625 (109,770) 9,811,793 Goodwill 1,527,219 - - - 1,527,219 Right to use infrastructure - LT Amazonas 198,202 - - (28,874) 169,328 Other assets 307,654 - 19,708 - 327,362 Intangible assets under development 2,552,093 934,245 (3,317,074) 40,011 209,275 Accumulated amortization (18,684,775) (1,876,258) - - (20,561,033) Right to use software (13,681,086) (1,412,080) - - (15,093,166) Authorizations (4,845,642) (432,771) - - (5,278,413) Right to use infrastructure - LT Amazonas (52,441) (7,763) - - (60,204) Other assets (105,606) (23,644) - - (129,250) Total 10,682,004 (915,045) - (98,633) 9,668,326 Right to use software (c) 3,461,555 (1,412,080) 1,041,741 - 3,091,216 Authorizations 2,793,328 (405,803) 2,255,625 (109,770) 4,533,380 Goodwill (d) 1,527,219 - - - 1,527,219 Right to use infrastructure - LT Amazonas (e) 145,761 (7,763) - (28,874) 109,124 Other assets 202,048 (23,644) 19,708 - 198,112 Intangible assets under development (f) 2,552,093 934,245 (3,317,074) 40,011 209,275 |
Schedule of amortization rates | Annual rate % Software licenses 20 Authorizations 5–50 Right to use infrastructure 5 Other assets 7–10 |
15. Leases (Tables)
15. Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LT Amazonas [Member] | |
Disclosure of financial assets [line items] | |
Schedule of lease receivables | Asset leases are financial assets or liabilities classified and/or measured at amortized cost. Assets 2020 2019 LT Amazonas 162,198 156,378 162,198 156,378 Current (5,357) (4,931) Non-current 156,841 151,447 |
Schedule of lease receivables nominal and present value | It should be noted that these balances differ from those shown in the books since, in the case of the latter, the amounts are shown at their present values: Nominal values Present value Up to December 2021 24,937 5,357 Jan 2022–Dec 2025 99,749 32,010 January 2026 onwards 190,633 124,831 315,319 162,198 |
Schedule of lease liabilities | 2020 2019 LT Amazonas (i) 290,385 276,233 Sale of Towers ( leaseback 1,256,410 1,192,596 Other (iv) 115,027 115,973 Subtotal 1,661,822 1,584,802 Other leases (iii): Lease-network 3,252,463 3,294,261 Lease - Vehicles - 3,005 Lease - Stores & kiosks 175,660 255,857 Lease – Real estate 259,330 243,921 Lease - Land (Network) 1,606,567 1,600,456 Lease – Fiber 1,422,993 798,568 Subtotal lease IFRS 16 6,717,013 6,196,068 Total 8,378,835 7,780,870 Current (1,054,709) (873,068) Non-current portion 7,324,126 6,907,802 |
Schedule of lease liabilities nominal and present value | The table below presents the future payment schedule for the agreements in force, representing the estimated disbursements (nominal values) in the signed agreements. These nominal balances differ from those shown in the books since, in the case of the latter, the amounts are shown at present value: Nominal values Present value Up to December 2021 47,366 13,772 Jan 2022–Dec 2025 189,465 51,915 January 2026 onwards 362,223 224,698 599,054 290,385 |
Schedule of other lease operations | The table below presents the future payment schedule for the agreements in force, representing the estimated disbursements (nominal values) in the signed agreements. These balances differ from those shown in the books since, in the case of the latter, the amounts are shown at present value: Up to Dec 2021 Jan 2022–Dec 2025 Jan 2026 onwards Nominal values Present value Total other leases 1,507,562 4,826,489 2,937,862 9,271,913 6,717,013 Lease - network 663,013 2,287,363 1,591,291 4,541,667 3,252,463 Lease - stores & kiosks 67,535 124,815 4,257 196,607 175,660 Lease - Real estate 59,348 181,870 131,678 372,896 259,330 Lease - Land (Network) 304,086 1,046,093 1,210,636 2,560,815 1,606,567 Lease – Fiber 413,580 1,186,348 - 1,599,928 1,422,993 |
Sale of Towers (Leaseback) [member] | |
Disclosure of financial assets [line items] | |
Schedule of lease receivables | The table below presents the future payment schedule for the agreements in force, representing the estimated disbursements (nominal values) in the agreement entered into with ATC. These balances differ from those shown in the books since, in the case of the latter, the amounts are shown at present value: Nominal values Present value Up to December 2021 201,457 28,576 Jan 2022–Dec 2025 805,829 163,141 January 2026 onwards 1,936,060 1,064,693 2,943,346 1,256,410 |
17. Suppliers (Tables)
17. Suppliers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Suppliers [Abstract] | |
Schedule of supplier accounts payable | Given the short maturity of these obligations, in practical terms, they are usually recognized at the value of the corresponding invoice. 2020 2019 3,128,732 3,923,035 Domestic currency 2,932,486 3,769,298 Suppliers of materials and services (a) 2,839,547 3,667,152 Interconnection (b) 64,066 67,396 Roaming (c) 212 441 Co-billing (d) 28,661 34,309 Foreign currency 196,246 153,737 Suppliers of materials and services (a) 148,888 116,057 Roaming (c) 47,358 37,680 Current 3,128,732 3,923,035 (a) Represents the amount to be paid to suppliers in the acquisition of materials and in the provision of services applied to the tangible and intangible asset or for consumption in the operation, maintenance and administration, in accordance with the terms of the contract between the parties. (b) Refers to as the use of the network of other fixed and mobile operators such cases where calls are initiated on the TIM network and terminated on the other operators. (c) Refers to calls made when the customer is outside their registration area and is considered a visitor on the other network. (d) Refers to calls made by the customer when choosing another long-distance operator. |
18. Authorizations payable (Tab
18. Authorizations payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Authorizations Payable [Abstract] | |
Schedule of licenses payables | On December 31, 2020, the Company has the following commitments with ANATEL: 2020 2019 Renewal of authorizations (i) 188,498 199,363 Updated ANATEL liability (ii) 146,949 126,974 335,447 326,337 Current (102,507) (88,614) Non-current 232,940 237,723 (1) To provide the SMP, the Company obtained authorizations of the right to use radio frequency for a fixed term, renewable for another 15 (fifteen) years. In the option for the extension of the right of this use, it is due the payment of the amount of 2% on the net revenue of the region covered by the authorization that ends each biennium. On December 31, 2020, the Company had balances falling due related to renovation of authorizations in the amount of R$ 188,498 (R$ 199,363 on December 31, 2019). (2) On December 5, 2014, the company signed the authorization term of the 700 MHz band and paid the equivalent of R$ 1,678 million, recording the remaining balance in the amount of R$ 61 million as commercial liability, according to the payment method provided for in the notice. |
Schedule of authorizations payable | The primary authorizations held by TIM S.A. on December 31, 2020, as well as their expiration dates, are shown in the table below: Expiry date Terms of authorization 450 MHz 800 MHz, 900 MHz and 1,800 MHz Additional frequencies 1800 MHz 1900 MHz and 2100 MHz (3G) 2500 MHz V1 band (4G) 2500 MHz P** band (4G) 700 MHz (4G) Amapá, Roraima, Pará, Amazonas and Maranhão - Mar 2031* Apr 2023 Apr 2023 Oct 2027 Part of AR92 (PA) – Feb 2024* Dec 2029 Rio de Janeiro and Espírito Santo Oct 2027 Mar 2031* ES - Apr 2023 Apr 2023 Oct 2027 Part of AR21 (RJ) – Feb 2024* Dec 2029 Acre, Rondônia, Mato Grosso, Mato Grosso do Sul, Tocantins, Distrito Federal, Goiás, Rio Grande do Sul (except for the municipality of Pelotas and region) and municipalities of Londrina and Tamarana in Paraná PR – Oct 2027 Mar 2031* Apr 2023 Apr 2023 Oct 2027 Part of AR61 (DF) – Feb 2024* Dec 2029 São Paulo - Mar 2031* Countryside – Apr 2023 Apr 2023 Oct 2027 - Dec 2029 Paraná (except counties of Londrina and Tamarana) Oct 2027 Sep 2022* Apr 2023 Apr 2023 Oct 2027 AR41, except Curitiba and the Metropolitan Region – Feb 2024* AR41, Curitiba and Metropolitan Region – July 2031 Dec 2029 Santa Catarina Oct 2027 Sep 2023* Apr 2023 Apr 2023 Oct 2027 - Dec 2029 Municipality and region of Pelotas, in the state of Rio Grande do Sul - Apr 2024* - Apr 2023 Oct 2027 - Dec 2029 Pernambuco - May 2024* - Apr 2023 Oct 2027 Part of AR81 – July 2031 Dec 2029 Ceará - Nov 2023* - Apr 2023 Oct 2027 - Dec 2029 Paraíba - Dec 2023* - Apr 2023 Oct 2027 - Dec 2029 Rio Grande do Norte - Dec 2023* - Apr 2023 Oct 2027 - Dec 2029 Alagoas - Dec 2023* - Apr 2023 Oct 2027 - Dec 2029 Piauí - Mar 2024* - Apr 2023 Oct 2027 - Dec 2029 Minas Gerais (except the municipalities of Sector 3 of the PGO for 3G radio frequencies and leftovers) - Apr 2028* Apr 2023 Apr 2023 Oct 2027 Part of AR31 – Feb 2030* Dec 2029 Bahia and Sergipe - Aug 2027* - Apr 2023 Oct 2027 - Dec 2029 * Terms already renewed for 15 years, therefore without the right to a new renewal period. ** Only complementary areas in specific states. |
19. Loans and financing (Tables
19. Loans and financing (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings [abstract] | |
Schedule of appropriation of financial expenses | Appropriations of financial expenses according to the effective interest rate method are recognized in income statement under financial expenses. Description Currency Charges Maturity 2020 2019 BNDES (1) URTJLP TJLP at TJLP + 2.52% p.a. July 2022 - 240,008 BNDES (1) UM143 SELIC + 2.52% p.a. July 2022 - 374,461 BNDES (PSI) (1) R$ 3.50% p.a. Jan 2021 - 18,071 KFW Finnvera (2) USD Libor 6M+ 0.75% p.a. Jan 2024–Dec 2025 344,125 330,217 Debentures (2) BRL 104.1% CDI July 2020 - 1,025,965 Cisco Capital (2) USD 2.50% p.a. Dec 2020 - 40,366 BAML (2) EUR 0.279% p.a. Aug 2021 570,844 - Scotland (2) USD 1.734% p.a. Aug 2021 1,030,761 - BNP Paribas (2) USD 2.822% p.a. Jan 2022 399,302 Total 2,345,032 2,029,088 Current (1,689,385) (1,384,180) Non-current 655,647 644,908 Warranties (1) (2) |
Schedule of credit facilities | The table below shows the position of financing and available lines of credit: Remaining amount Type Currency Opening date Term Total amount Amount used up to December 31, 2020 BNDES (i) TJLP May 2018 Mar 2022 1,090,000 1,090,000 - BNDES (ii) TJLP May 2018 Mar 2022 20,000 20,000 - FINAME (iii) IPCA Mar 2019 Mar 2022 390,000 390,000 - BNB (iv) IPCA Jan 2020 June 2023 752,479 752,479 - Total R$: 2,252,479 2,252,479 - Objective: (i) Support to TIM's investment plan for the years 2017 to 2019 including, but not limited to, the acquisition of national equipment (ii) Investments in social projects within the community (iii) Exclusive application in the acquisition of machinery and equipment, industrial systems and/or other components of national manufacture. (iv) Support to TIM's investment plan for the years 2020 to 2022 in the region of operation of Banco do Nordeste do Brasil |
Schedule of long term portions of borrowing and financing | Loans and financing on December 31, 2020 due in long-term is in accordance with the following schedule: 2022 483,001 2023 86,834 2024 58,308 2025 27,504 655,647 |
Schedule of nominal value of the loans | The nominal value of the loans is consistent with their respective payment schedule. Nominal value 2021 1,689,385 2022 483,001 2023 86,834 2024 58,308 2025 27,504 2,345,032 |
20. Indirect taxes, charges a_2
20. Indirect taxes, charges and contributions payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Indirect Taxes, Charges And Contributions Payable [Abstract] | |
Schedule of indirect taxes, charges and contributions payable | 2020 2019 Indirect taxes, fees and contributions payable 938,880 466,603 ICMS 359,498 377,105 Taxes and fees - ANATEL (1) 509,087 22,009 Service tax – ISS 66,082 61,673 Other 4,213 5,816 Current portion (935,778) (463,606) Non-current portion 3,102 2,997 (1) Fistel fee for the financial year 2020 has been deferred from the start of its payment, on the basis of Provisional Act 952 of April 15, 2020. Until December 31, 2020, the fee was not paid based on an injunction issued by the Regional Court of the 1st Region. |
21. Direct taxes, charges and_2
21. Direct taxes, charges and contributions payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Direct Taxes, Charges And Contributions Payable [Abstract] | |
Schedule of direct taxes charges and contributions payable | The legislation allows companies to opt for quarterly or monthly payment of income tax and social contribution. Since 2016 the company has chosen to make the monthly payment of income tax and social contribution. 2020 2019 Direct taxes, fees and contributions payable 508,743 508,615 Income tax and social contribution 313,145 346,097 PIS / COFINS 154,353 130,327 Other (1) 41,245 32,191 Current (296,299) (296,305) Non-current 212,444 212,310 (1) The breakdown of this account mainly refers to the company's adhesion to the Tax Recovery Program - REFIS from 2009 for payment of installments of the outstanding debts of federal taxes (PIS – Social Integration Program, COFINS – Contribution to Social Security Financing, IRPJ – Corporate Income Tax and CSLL – social contribution on Net Income), whose fina l |
22. Deferred revenue (Tables)
22. Deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Revenues [Abstract] | |
Schedule of deferred revenue | 2020 2019 Deferred revenues 1,021,924 1,109,112 Services to be rendered - pre-paid (1) 189,482 186,310 Government grants (2) 24,732 42,159 Network Swap (3) - 2,713 Prepaid revenues 11,163 11,651 Deferred revenue on sale of towers (4) 788,921 843,017 Contractual liabilities (5) 7,626 23,262 Current installment (266,436) (281,930) Non-current installment 755,488 827,182 (1) Referring to the recharge of voice credits and data not yet used by customers relating to prepaid system services that are appropriate to the result when the actual use of these services by clients. (2) Referring to the release of resources related to the financing line with BNDES (Investment Support Program-BNDES PSI). The sum of grants granted by BNDES up to December 31, 2020 is R$ 203 million and the outstanding amount on December 31, 2020 is R$ 24,732 (R$ 42,159 on December 31, 2019). This amount is being amortized by the useful life of the asset being financed and appropriated in the group of “other net revenues (expenses)” (note 28). (3) Mainly referring to contracts for the onerous and reciprocal transfer of optical fiber infrastructure. (4) Referring to the amount of revenue to be appropriated by the sale of the towers (note 15). (5) Contract with clients. The balance of contractual assets and liabilities is as follows: |
Schedule of contractual assets and liabilities | 2020 2019 Accounts receivable included in trade accounts receivable 2,000,764 2,413,865 Contractual assets (note 6) 14,914 15,142 Contractual liability (7,626) (23,262) |
Summary of the main changes during the fiscal year: | Summary of the main variations in the period: Contractual assets (liabilities) Balance at January 1, 2020 (8,120) Additions (369) Write-offs 15,777 Balance at December 31, 2020 7,288 |
Schedule of balances of contractual assets and liabilities are expected to be realized | The balances of contractual assets and liabilities are expected to be realized according to the table below: 2021 2022 Contractual assets (liabilities) 8,611 (1,323) |
23. Provision for legal and a_2
23. Provision for legal and administrative proceedings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Provision For Legal And Administrative Proceedings [Abstract] | |
Schedule of provision for legal and administrative proceedings | The provision for judicial and administrative proceedings constituted, updated, is composed as follows: 2020 2019 Provision for legal and administrative proceedings 886,947 840,637 Civil (a) 245,432 212,702 Labor (b) 213,026 261,837 Tax (c) 399,288 333,717 Regulatory (d) 29,201 32,381 |
Schedule of reconciliation of provision for legal and administrative proceedings | The changes in the provision for judicial and administrative proceedings are summarized below: December 2019 Additions, net of reversals Payments Inflation adjustment December 2020 840,637 322,565 (413,634) 137,379 886,947 Civil (a) 212,702 224,417 (266,872) 75,185 245,432 Labor (b) 261,837 55,727 (138,899) 34,361 213,026 Tax (c) 333,717 45,659 (7,792) 27,704 399,288 Regulatory (d) 32,381 (3,238) (71) 129 29,201 December 2018 Additions, net of reversals Payments Monetary adjustment December 2019 849,408 547,691 (715,203) 158,741 840,637 Civil (a) 111,301 348,012 (335,640) 89,028 212,701 Labor (b) 435,438 96,235 (301,971) 32,136 261,838 Tax (c) 271,214 103,354 (77,341) 36,490 333,717 Regulatory (d) 31,455 90 (251) 1,087 32,381 |
Schedule of tax provision | c. Tax lawsuits 2020 2019 Federal taxes 155,495 State taxes 135,891 93,790 Municipal taxes 5,633 8,227 TIM S.A. proceedings (purchase price allocation) 75,617 76,205 399,288 333,717 |
Schedule of legal and administrative processes involving possible losses | The Company has actions of a civil, labor, tax and regulatory nature involving risks of loss classified by its legal advisors and the administration as possible, for which there is no provision for legal and administrative proceedings constituted, and no adverse material effects are expected in the financial statements, according to the values presented below: 2020 2019 18,147,562 18,395,727 Civil (e.1) 1,101,332 1,032,637 Labor and Social Security (e. 2) 340,801 459,020 Tax (e.3) 16,586,353 16,196,077 Regulatory (e.4) 119,076 707,993 |
Schedule of civil contingent liabilities | 2020 2019 Consumer lawsuits (e. 1.1) 220,347 374,860 ANATEL (e.1.2) 223,066 220,526 Consumer protection agencies (e.1.3) 160,279 32,847 Former trading partners (e.1.4) 193,529 180,226 Environmental and infrastructure (e.1.5) 154,187 125,201 Other (e.1.6) 149,924 98,977 1,101,332 1,032,637 |
Schedule of tax contingent liabilities | 2020 2019 16,586,353 16,196,077 Federal taxes (e.3.1) 4,268,212 4,279,570 State taxes (e.3.2) 8,562,352 8,221,808 Municipal taxes (e.3.3) 740,813 703,132 FUST, FUNTTEL and EBC (e.3.4) 3,014,976 2,991,567 |
24. Shareholders' equity (Table
24. Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders' equity | |
Schedule of reserves | This reserve is broken down as follows: 2020 2019 397,183 410,650 Goodwill special reserve 353,604 380,560 Call options for shares 43,579 30,090 |
Schedule of dividends calculation | On December 31, dividends and interest on shareholders’ equity were calculated as follows: 2020 2019 Net income for the year 1,828,254 3,622,127 1,828,254 3,622,127 (-) Non-distributable tax incentives (169,540) (194,161) (-) Constitution of legal reserve (83,707) (171,398) Adjusted profit 1,575,007 3,256,568 Minimum dividends calculated on the basis of 25% of adjusted profit 397,752 814,142 Breakdown of dividends payable and interest on shareholders’ equity: Interest on shareholders’ equity 1,083,000 995,438 Total dividends and interest on shareholders’ equity distributed and proposed 1,083,000 995,438 Withholding income tax (IRRF) on interest on shareholders’ equity (162,450) (149,316) Total dividends and interest shareholders’ equity, after withholding income taxes 920,550 846,122 |
25. Long-term incentive plan (T
25. Long-term incentive plan (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Incentive Plan [Abstract] | |
Schedule of variations in quantity of options | The total amount of the expense was calculated considering the fair value of the options and the value of the shares and is recognized in the results over the vesting period. Stock Options Program Table Granting date Options granted Maturity date Base Price Balance at the beginning of the year Granted during the year Exercised during the year Expired during the year Overdue during the year Balance at the end of the year Plan 2014-2016 - 3rd Grant 3,922,204 Nov 2022 R$ 8.10 419,340 - -124,277 - - 295,063 Plan 2014-2016 - 2nd Grant 3,355,229 Oct 2021 R$ 8.45 132,848 - -111,077 - - 21,771 Plan 2014-2016-1st Grant 1,687,686 Sep 2020 R$ 13.42 378,286 - -69,708 -308,578 - - Plan 2011-2013 - 3rd Grant 3,072,418 July 2019 R$ 8.13 - - - - - - Plan 2011-2013 - 2nd Grant 2,661,752 Sep 2018 R$ 8.96 - - - - - - Plan 2011-2013-1st Grant 2,833,595 Aug 2017 R$ 8.84 - - - - - - Total 17,532,884 930,474 - -305,062 -308,578 - 316,834 Weighted average price of the balance of grants R$ 8.12 Identification of grant: Shares granted Maturity date Grant Price Balance at the beginning of the year Granted during the year Transferred during the year Paid in cash Canceled during the year Balance at the end of the year Volume Vested Performance change Additional Dividends Volume Vested Performance change Additional Dividends 2018-2020 Plan 3rd Grant 796,054 Apr 2023 14.40 - 796,054 - - - - - - - 796,054 2018-2020 Plan 2nd Grant 930,662 July 2022 11.28 897,244 - (209,349) (83,672) (16,536) - - - - 687,895 2018-2020 Plan 1st Grant 849,932 Apr 2021 14.41 285,690 - (83,181) 70 (4,655) (2,915) (5) (164) - 199,594 Total 2,576,648 1,182,934 796,054 (292,530) (83,602) (21,191) (2,915) (5) (164) - 1,683,543 Weighted average price of the balance of grants 13.12 |
Schedule of significant data included in model | The significant data included in the model, for the Stock Option Grants, was as follows: Granting date Base price - weighted average share in the period of measurement of the grant Volatility Expected life of the option Annual interest rate without risk Grant 2011 R$ 8.84 51.73% p.a. 6 years 11.94% p.a. Grant 2012 R$ 8.96 50.46% p.a. 6 years 8.89% p.a. Grant 2013 R$ 8.13 48.45% p.a. 6 years 10.66% p.a. Grant 2014 R$ 13.42 44.60% p.a. 6 years 10.66% p.a. Grant 2015 R$ 8.45 35.50% p.a. 6 years 16.10% p.a. Grant 2016 R$ 8.10 36.70% p.a. 6 years 11.73% p.a. |
26. Revenue (Tables)
26. Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue [abstract] | |
Schedule of revenue | Similarly, certain contract compliance costs are also deferred to the extent that they relate to performance obligations under the customer agreement, i.e. when the customer obtains control over the asset. 2020 2019 2018 Revenue 17,267,812 17,377,194 16,981,329 Gross revenue 24,346,101 25,182,831 24,232,404 Revenue from services 23,279,423 23,820,343 23,065,648 Revenue from services – Mobile 21,522,135 22,145,033 21,531,779 Revenue from services – Fixed telephony 1,757,288 1,675,310 1,533,869 Sale of goods 1,066,678 1,362,488 1,166,756 Deductions from gross revenue (7,078,289) (7,805,637) (7,251,075) Taxes (4,534,582) (4,939,980) (5,163,797) Discounts granted (2,531,920) (2,843,670) (2,073,892) Returns and other (11,787) (21,987) (13,386) |
27. Operating costs and expen_2
27. Operating costs and expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operatings Costs And Expenses [Abstract] | |
Schedule of operating cost and expences | 2020 2019 Cost of services rendered and goods sold Marketing expenses General and administrative expenses Total Cost of services rendered and goods sold Marketing expenses General and administrative expenses Total (7,996,615) (4,443,027) (1,673,290) (14,112,932) (7,433,731) (4,986,289) (1,717,859) (14,137,879) Personnel (58,024) (632,231) (321,967) (1,012,222) (53,392) (624,353) (392,984) (1,070,729) Outsourced services (587,835) (1,743,644) (538,584) (2,870,063) (569,242) (2,041,646) (512,643) (3,123,531) Interconnection and connection media (1,672,655) - - (1,672,655) (1,419,464) - - (1,419,464) Depreciation and amortization (4,569,064) (247,666) (710,282) (5,527,012) (4,132,223) (256,898) (739,860) (5,128,981) Taxes, fees and contributions (28,675) (761,152) (23,809) (813,636) (32,120) (817,369) (18,846) (868,335) Rentals and reinsurance (316,650) (107,550) (15,753) (439,953) (291,302) (121,795) (20,590) (433,687) Cost of goods sold (756,060) - - (756,060) (931,818) - - (931,818) Advertising - (377,184) - (377,184) - (355,234) - (355,234) Losses on doubtful accounts (note 6) - (552,817) - (552,817) - (748,291) - (748,291) Other (7,652) (20,783) (62,895) (91,330) (4,170) (20,703) (32,936) (57,809) 2018 Cost of services provided and goods sold Marketing expenses General and administrative expenses Total (7,701,418) (4,970,780) (1,608,319) (14,280,517) Personnel (36,514) (637,177) (357,878) (1,031,569) Third-party services (518,762) (2,169,624) (451,990) (3,140,376) Interconnection and means of connection (2,513,176) - - (2,513,176) Depreciation and amortization (3,119,954) (162,804) (671,562) (3,954,320) Taxes, fees and contributions (31,754) (866,197) (18,333) (916,284) Rent and insurance (591,226) (146,877) (67,387) (805,490) Cost of goods sold (883,912) - - (883,912) Publicity and advertising - (421,588) - (421,588) Losses on doubtful accounts - (544,881) - (544,881) Other (6,120) (21,632) (41,169) (68,921) |
28. Other income (expenses) (Ta
28. Other income (expenses) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income (Expenses), Net [Abstract] | |
Schedule of other income (expenses) | 2020 2019 2018 Income Income from grant, net 17,427 21,572 25,305 Telecommunication service fines 37,490 50,499 44,411 Income on disposal of assets 5,375 2,214 1,708 PIS/COFINS credits (i) - 1,795,000 - Other 68,651 83,558 282,041 128,943 1,952,843 353,465 Expenses FUST/FUNTTEL (ii) (133,378) (137,169) (143,167) Taxes, fees and contributions (10,316) (4,024) (4,092) Provision for legal and administrative proceedings, net of reversal (290,789) (466,460) (452,463) Expenses on disposal of assets (13,538) (7,055) (4,424) Other expenses (32,776) (62,593) (32,608) (480,797) (677,301) (636,754) Other income (expenses) (351,854) 1,275,542 (283,289) (i) The change refers to the update of claims arising from judicial proceedings with a final decision passed in favor of the company in higher courts, in 2019, which discussed the exclusion of ICMS from calculation basis of PIS and COFINS contributions. The amount of R$ 1,795 million was recorded under Other income in 2019 (note 9). (ii) Representing the expenses incurred with contributions on the various telecommunications revenues due to ANATEL, according to current legislation. |
29. Financial income (Tables)
29. Financial income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Income [Abstract] | |
Schedule of financial income | 2020 2019 2018 Financial revenues 438,598 1,430,171 412,733 Interest on interest earning bank deposits 82,512 88,224 119,548 Interest of clients 28,686 37,233 36,793 Swap interest 32,955 15,536 17,001 Interest on lease 19,924 20,528 25,664 Inflation adjustment (1) 116,441 1,263,793 207,191 Other derivatives (2) 155,165 - - Other 2,915 4,857 6,536 (1) (2) |
30. Financial expenses (Tables)
30. Financial expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Expenses [Abstract] | |
Schedule of financial expenses | 2020 2019 2018 Financial expenses (1,242,255) (1,408,053) (951,439) Interest on loans and financing (70,400) (116,735) (96,682) Interest on taxes and fees (43,616) (28,396) (15,409) Swap interest (45,970) (24,604) (32,424) Interest on lease (766,263) (821,463) (266,328) Inflation adjustment (1) (161,892) (191,309) (340,175) Discounts granted (33,725) (36,047) (38,858) Other expenses (120,389) (189,499) (161,563) (1) Substantial part related to inflation adjustment on provision for legal and administrative proceedings (R$ 137,379 in 2020 – note 23). |
31. Foreign exchange variatio_2
31. Foreign exchange variations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Foreign Exchange Variations, Net [Abstract] | |
Schedule of foreign exchange variations | 2020 2019 2018 Income Loans and financing - 22,494 1,409 Suppliers 15,981 9,004 6,844 Swap (1) 305,012 40,742 75,340 Other 43,155 15,952 13,937 364,148 88,192 97,530 Expenses Loans and financing (305,010) (40,715) (75,298) Suppliers (46,112) (13,201) (11,925) Swap - (22,493) (1,409) Other (19,991) (12,691) (7,525) (371,113) (89,100) (96,157) Foreign exchange variations (6,965) (908) 1,373 (1) |
32. Income tax and social con_2
32. Income tax and social contribution (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax And Social Contribution [Abstract] | |
Schedule of income tax and social contribution | 2020 2019 2018 Income tax and social contribution - current Income tax for the year (684,099) (155,521) (253,120) Social contribution for the year (232,671) (58,905) (92,502) Tax incentive – SUDENE/SUDAM (*) 164,442 156,594 146,454 (752,328) (57,832) (199,168) Deferred income tax and social contribution Deferred income tax 453,127 (625,516) 651,632 Deferred social contribution 144,722 (225,186) 217,501 597,849 (850,702) 869,133 Provision for contingencies of income tax and social contribution (9,671) (5,406) (5,054) 588,178 (856,108) 864,079 (164,150) (913,940) 664,911 |
Schedule of income tax and social contribution expenses reconciliation | The reconciliation between income tax and social contribution expense as calculated by applying combined tax rates and amounts reflected in income (loss) is as follows: 2020 2019 2018 Profit before income tax and social contribution 1,992,404 4,536,067 1,880,190 Combined statutory rate 34% 34% 34% Income tax and social contribution at the combined statutory rates (677,417) (1,542,263) (639,265) (Additions) /exclusions: Permanent additions, exclusions: Nondeductible expenses for tax purposes (30,959) (18,783) 920,745 Tax incentive SUDENE/SUDAM (*) 164,442 194,161 146,454 Tax benefit related to interest on shareholders’ equity allocated 368,220 338,449 288,998 Other amounts 11,564 114,495 (52,021) 513,267 628,322 1,304,176 Income tax and social contribution recorded in the income (loss) for the year (164,150) (913,941) 664,911 Effective rate 8.24% 20.15% (35.36%) |
33. Earnings per share (Tables)
33. Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share attributable to Company's shareholders (in R$ per share) | |
Schedule of earning per share | (a) Basic Basic earnings per share are calculated by dividing profit attributable to Company’s shareholders by the weighted average number of shares issued during the period. 2020 2019 2018 Profit attributable to shareholders of the Company 1,828,254 3,622,127 2,545,101 Weighted average number of shares issued (thousands) 2,420,804 2,420,481 2,420,172 Basic earnings per share (in R$) 0.76 1.50 1.05 (b) Diluted earnings per share are calculated by adjusting the weighted average amount of shares outstanding to assume the conversion of all potential dilutive shares. 2020 2019 2018 Profit attributable to shareholders of the Company 1,828,254 3,622,127 2,545,101 Weighted average number of shares issued (thousands) 2,421,065 2,421,018 2,421,075 Diluted earnings per share (in R$ ) 0.76 1.50 1.05 |
34. Balances and transactions_2
34. Balances and transactions with related parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of consolidated balances of transactions | The balances of transactions with Telecom Italia Group companies are as follows: Assets 2020 2019 Telecom Italia Sparkle (1) 1,630 1,949 TI Sparkle (3) 1,915 2,007 TIM Brasil (8) 6,129 5,429 Other 1,044 1,035 Total 10,718 10,420 Liabilities 2020 2019 Telecom Italia S.p.A. (2) 75,317 80,825 Telecom Italia Sparkle (1) 10,576 6,531 TI Sparkle (3) 7,333 3,731 TIM Brasil (4) 6,145 6,056 Vivendi Group (5) 1,150 1,164 Gruppo Havas (6) 24,068 11,049 Other 2,797 2,467 Total 127,386 111,823 Revenue 2020 2019 2018 Telecom Italia S.p.A. (2) 1,197 775 858 Telecom Italia Sparkle (1) 2,994 5,371 5,809 TI Sparkle (3) 4,059 2,052 904 Total 8,250 8,198 7,571 Cost/Expense 2020 2019 2018 Telecom Italia S.p.A. (2) 110,407 93,188 62,976 Telecom Italia Sparkle (1) 27,485 24,914 30,123 TI Sparkle (3) 19,923 18,700 18,035 Vivendi Group (5) 1,207 1,386 9,439 Gruppo Havas (6) 207,682 264,318 301,752 Other 22,308 18,713 - Total 389,012 421,219 422,325 (1) Amounts refer to roaming wholesale (2) Amounts refer to international roaming On May 17, 2018, TIM Participações (incorporated by TIM S.A) and Telecom Italia signed a trademark license agreement formally granting TIM Participações and the company the right to use the “TIM” trademark by paying royalties in the amount of 0.5% of the company's net revenue. Payment is made quarterly. (3) Amounts refer to link rental, EILD rental, media rental (submarine cable) and signaling service. (4) mainly refer to judicial deposits made on account of labor causes and transfers of employees. (5) The values refer to Value Added Services-VAS. (6) From the values described above, in the result, they refer to advertising services, of which, R$ 195,117 (R$ 172,956 on December 31, 2019), are related to media transfers. |
35. Management remuneration (Ta
35. Management remuneration (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Management Remuneration [Abstract] | |
Schedule of key management personnel | The payment of key management personnel services provided is presented below: 2020 2019 2018 Short-term benefits 23,949 22,524 23,556 Other long-term benefits (1) 4,544 900 3,351 Share-based payments 6,343 5,379 10,230 34,836 28,803 37,137 (1) The variation occurred manly due to the number of eligible employees. |
36. Financial instruments and_2
36. Financial instruments and risk management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments And Risk Management [Abstract] | |
Schedule of consolidated derivative financial instruments | The consolidated derivative financial instruments are presented below: 2020 2019 Assets Liabilities Assets Liabilities Derivatives financial instruments 340,660 (36,166) 46,511 (4,405) Other derivatives 161,429 - - - 502,089 (36,166) 46,511 (4,405) Current installment 262,666 (7,273) 16,602 (858) Non-current installment 239,423 (28,893) 29,909 (3,547) |
Schedule of long term maturities of financial derivative instruments | The long-term derivative financial instruments consolidated on December 31, 2020 are due in accordance with the following schedule: Assets Liabilities 2022 27,173 (28,893) 2023 13,587 - 2024 onwards 198,663 - 239,423 (28,893) |
Schedule of consolidated financial assets and liabilities valued at fair value | Consolidated financial instruments measured at fair value: 2020 Level 1 Level 2 TOTAL Total assets 2,077,499 502,089 2,579,588 Financial assets at fair value 2,077,499 502,089 2,579,588 Derivative financial instruments - 340,660 340,660 Other derivatives - 161,429 161,429 Marketable securities 2,077,499 - 2,077,499 Total liabilities - 36,166 36,166 Financial liabilities at fair value through profit or loss - 36,166 36,166 Derivatives used for hedging - 36,166 36,166 December 2019 Level 1 Level 2 TOTAL Total assets 658,328 46,511 704,839 Financial assets at fair value 658,328 46,511 704,839 Derivative financial instruments - 46,511 46,511 Marketable securities 658,328 - 658,328 Total liabilities - 4,405 4,405 Financial liabilities at fair value through profit or loss - 4,405 4,405 Derivatives financial instruments - 4,405 4,405 |
Schedule of financial instruments by category | December 31, 2020 Measured at amortized cost Fair value through profit or loss Total Asset, according to the balance sheet 6,756,810 2,579,587 9,336,397 Derivative financial instruments - 340,660 502,089 Other derivatives 161,429 Trade accounts receivable and other accounts receivable excluding prepayments 3,180,661 - 3,180,661 Marketable securities - 2,077,498 2,077,498 Cash and cash equivalents 2,575,290 - 2,575,290 Leases 162,198 - 162,198 Judicial deposits 794,755 - 794,755 Regulatory credits recoverable 43,906 - 43,906 Measured at amortized cost Fair value through profit or loss Total Liabilities, according to the balance sheet 14,391,175 36,166 14,427,341 Loans and financing 2,345,032 - 2,345,032 Derivative financial instruments - 36,166 36,166 Suppliers and other obligations, excluding legal obligations 3,128,732 - 3,128,732 Leases 8,378,835 - 8,378,835 Dividends and interest on shareholders’ equity payable 538,576 - 538,576 December 31, 2019 Measured at amortized cost Fair value through profit or loss Total Asset, according to the balance sheet 6,769,032 704,839 7,473,871 Derivative financial instruments - 46,511 46,511 Trade accounts receivable and other accounts receivable excluding prepayments 3,287,855 - 3,287,855 Marketable securities - 658,328 658,328 Cash and cash equivalents 2,284,810 - 2,284,810 Leases 156,378 - 156,378 Judicial deposits 1,006,899 - 1,006,899 Regulatory credits recoverable 33,090 - 33,090 Measured at amortized cost Fair value through profit or loss Total Liabilities, according to the balance sheet 14,330,543 4,405 14,334,948 Loans and financing 2,029,088 - 2,029,088 Derivative financial instruments - 4,405 4,405 Suppliers and other obligations, excluding legal obligations 3,923,035 - 3,923,035 Leases 7,780,870 - 7,780,870 Dividends payable 597,550 597,550 |
Schedule of derivative financial instruments outstanding | The operations with derivative financial instruments contracted by the company and in force on December 31, 2020 and December 31, 2019 are shown in the following table: December 31, 2020 COUNTERPARTY % Coverage AVERAGE SWAP RATES Currency Type of SWAP Debt SWAP Total Debt Total swap (Long position)¹ Long position Short position USD LIBOR x CDI KFW/ Finnvera JP Morgan and Bank of America 351,233 351,233 100% LIBOR 6M + 0.75% p.a. 85.25% CDI EUR PRE x DI Bank of America Bank of America 570,878 570,878 100% 0.33% p.a. 108.05% CDI USD PRE x DI The Bank of Nova Scotia. Scotiabank 1,031,526 1,031,526 100% 1.72% p.a. 134.43% CDI USD PRE x DI BNP Paribas BNP Paribas 399,725 399,725 100% 3.32% p.a. 155% CDI 1 December 31, 2019 COUNTERPARTY % Coverage AVERAGE SWAP RATES Currency Type of SWAP Debt SWAP Total Debt Total swap (Long position)¹ Long position Short position USD LIBOR x CDI KFW/ Finnvera JP Morgan and BOFA 330,217 330,217 100% LIBOR 6M + 0.75% p.a. 85.50% CDI USD PRE x DI CISCO Santander and JP Morgan 40,366 40,366 100% 2.50% p.a. 84.50% CDI |
Schedule of sensitivity analysis of derivative financial instrument | Our assumptions basically observed the individual effect of the CDI, USD, EUR and Libor variation used in the transactions as the case may be, and for each scenario the following percentages and quotes were used: CDI Sensitivity Scenario Description December 2020 Probable scenario Possible scenario Remote scenario Fair value in USD and EUR (KFW Finnvera, Scotia, BofA and BNP) 2,367,461 2,367,461 2,367,461 2,367,461 A) ∆ Accumulated variation in debt - - Fair value of the long position of swap (+) 2,367,461 2,367,461 2,367,461 2,367,461 Fair value of the short position of swap (-) 2,062,574 2,062,574 2,049,955 2,037,686 Income (loss) from swap 304,887 304,887 317,506 329,775 B) ∆ Accumulated variation in swap 12,619 24,888 C) Final result (B-A) 12,619 24,888 USD sensitivity scenario Description December 2020 Probable scenario Possible scenario Remote scenario Fair value in USD and EUR (KFW Finnvera, Scotia, BofA and BNP) 2,367,461 2,367,461 2,816,847 3,266,23 A) ∆ Accumulated variation in debt 449,386 898,772 Fair value of the long position of swap (+) 2,367,461 2,367,461 2,816,847 3,266,233 Fair value of the short position of swap (-) 2,062,574 2,062,574 2,062,574 2,062,574 Income (loss) from swap 304,887 304,887 754,273 1,203,659 B) ∆ Accumulated variation in swap 449,386 898,772 C) Final result (B-A) - - EUR sensitivity scenario Description December 2020 Probable scenario Possible scenario Remote scenario Fair value in USD and EUR (KFW Finnvera, Scotia, BofA and BNP) 2,367,461 2,367,461 2,509,940 2,652,419 A) ∆ Accumulated variation in debt 142,479 284,958 Fair value of the long position of swap (+) 2,367,461 2,367,461 2,509,940 2,652,419 Fair value of the short position of swap (-) 2,062,574 2,062,574 2,062,574 2,062,574 Income (loss) from swap 304,887 304,887 447,366 589,845 B) ∆ Accumulated variation in swap 142,479 284,958 C) Final result (B-A) - - Scenario sensitivity to Libor Description December 2020 Probable scenario Scenario Possible Scenario Remote Fair value in USD and EUR (KFW Finnvera, Scotia, BofA and BNP) 2,367,461 2,367,461 2,368,026 2,368,591 A) ∆ Accumulated variation in debt 565 1,130 Fair value of the long position of swap (+) 2,367,461 2,367,461 2,368,026 2,368,591 Fair value of the short position of swap (-) 2,062,574 2,062,574 2,062,574 2,062,574 Income (loss) from swap 304,887 304,887 305,452 306,017 B) ∆ Accumulated variation in swap 565 1,130 C) Final result (B-A) - - |
Schedule of risk variable of derivative financial instruments | Risk variable Probable scenario Possible scenario Remote scenario CDI 1.90% 2.38% 2.85% USD 5.1967 5.1967 5.1967 EUR 6.3779 6.3779 6.3779 Libor 0.2666% 0.2666% 0.2666% Risk variable Probable scenario Possible scenario Remote scenario CDI 1.90% 1.90% 1.90% USD 5.1967 6.4959 7.7951 EUR 6.3779 6.3779 6.3779 Libor 0.2666% 0.2666% 0.2666% Risk variable Probable scenario Possible scenario Remote scenario CDI 1.90% 1.90% 1.90% USD 5.1967 5.1967 5.1967 EUR 6.3779 7.9725 9.5669 Libor 0.2666% 0.2666% 0.2666% Risk variable Probable scenario Possible scenario Remote scenario CDI 1.90% 1.90% 1.90% USD 5.1967 5.1967 5.1967 EUR 6.3779 6.3779 6.3779 Libor 0.2666% 0.3333% 0.3999% |
Schedule of position showing gains and losses with derivatives | The use of these assumptions in the analysis is due exclusively to the characteristics of derivative financial instruments, which have exposure only to changes in interest and exchange rates. Chart of gains and losses with derivatives during the year 2020 Net income (loss) from derivative operations 290,856 Income (loss) from operations with other derivatives 155,165 |
Schedule of capital management | The financial leverage ratios on December 31, 2020 and 2019 can be summarized as follows: 2020 2019 Total loans and derivatives (notes 19 and 36) 1,879,109 1,986,982 Lease - Liabilities (note 15) 8,378,835 7,780,870 Lease - Assets (note 15) (162,198) (156,378) Less: Cash and cash equivalents (note 4) (2,575,290) (2,284,810) FIC (note 5) (2,070,438) (654,479) Net debt 5,450,018 6,672,185 Other derivatives (note 36) 161,429 - Adjusted net debt 5,611,447 6,672,185 EBITDA (1) 8,330,038 9,643,838 Leverage ratio 0.65 0.69 (1) Reconciliation to the directly comparable GAAP measure Net income 1,828,254 3,622,127 Depreciation and amortization 5,527,012 5,128,981 Financial Income (Expenses) 810,622 (21,210) Income tax and social contribution 164,150 913,940 EBITDA (1) 8,330,038 9,643,838 (1) EBITDA: Presentation of earnings before interest, tax, depreciation and amortization |
Schedule of changes in liabilities arising from financing activities | The financial leverage ratios on December 31, 2020 and 2019 can be summarized as follows: 2020 2019 Total loans and derivatives (notes 19 and 36) 1,879,109 1,986,982 Lease - Liabilities (note 15) 8,378,835 7,780,870 Lease - Assets (note 15) (162,198) (156,378) Less: Cash and cash equivalents (note 4) (2,575,290) (2,284,810) FIC (note 5) (2,070,438) (654,479) Net debt 5,450,018 6,672,185 Other derivatives (note 36) 161,429 - Adjusted net debt 5,611,447 6,672,185 EBITDA (1) (last 12 months) – Normalized 8,330,038 9,643,838 Leverage ratio – unaudited 0.65 0.69 (1) Reconciliation, net income for the year: Adjusted net income for the year 1,828,254 3,622,127 Depreciation and amortization 5,527,012 5,128,981 Finance Income (Costs), Net 810,622 (21,210) Income tax and social contribution 164,150 913,940 (EBITDA) (1) 8,330,038 9,643,838 (1) EBITDA: Earnings before interest, tax, depreciation and amortization |
37. Pension plan and other po_2
37. Pension plan and other post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of defined benefit plans [abstract] | |
Schedule of asset policy and medical plan | December 2020 December 2019 PAMEC/asset policy and medical plan 7,346 5,782 |
Schedule of actuarial position of liabilities and assets related to the retirement and health care plans | The actuarial position of liabilities and assets related to retirement and health care plans, on December 31, 2020, in accordance with the rules provided for by IAS 19 is presented below. a) Effects on the base date of December 31: Plans Total PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical care plan 2020 2019 Reconciliation of assets and liabilities on 12/31/2020 (*) (*) Present value of the actuarial obligations 41,852 10,072 147 858 12,090 4,343 69,362 54,877 Fair value of the plan assets (57,479) (12,998) (434) - (9,945) - (80,856) (54,855) Present value of the obligations exceeding the fair value of the assets (15,627) (2,926) (287) 858 2,145 4,343 (11,494) 22 Amount recognized in other comprehensive income - 2,023 - - - - 2,023 - Net actuarial liabilities/(assets) (15,627) (903) (287) 858 2,145 4,343 (9,471) 22 (*) No asset was recognized by the sponsors, due to the impossibility of reimbursing this surplus, and the fact that the sponsor’s contributions will not be reduced in the future. |
Schedule of ovement in net actuarial liabilities (assets) | b) Changes in net actuarial liabilities (assets) Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical care plan Actuarial liabilities (assets) on 12/31/2019 (3,564) (3,420) (274) 1,080 2,117 2,585 Expense (revenue) recognized in income (loss) (243) (230) (19) 72 272 329 Contributions of the sponsor - - - (48) - (36) Recognized actuarial (gains) or losses (11,820) 2,747 6 (246) (244) 1,465 Net actuarial liabilities (assets) on 12/31/2020 (15,627) (903) (287) 858 2,145 4,343 |
Schedule of reconciliation of the present value of the obligations | c) Reconciliation of present value of obligations Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical care plan Value of obligations on 12/31/2019 40,427 10,107 151 1,080 11,099 2,585 Cost of current service 15 - - - 125 150 Interest on actuarial obligation 2,650 658 10 72 774 179 Benefits paid in the year (2,718) (756) (9) (48) (494) (36) Contributions paid by participants - 77 (Gains)/losses in obligations 1,478 63 (5) (246) 509 1,465 Value of obligations on 12/31/2020 41,852 10,072 147 858 12,090 4,343 |
Schedule of reconciliation of fair value of assets | d) Reconciliation of the fair value of the assets Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical care plan Fair value of assets on 12/31/2019 43,991 13,527 425 - 8,982 - Benefits paid in the year (2,718) (756) (9) - (494) - Actual earnings from assets during the year 2,893 888 29 - 627 - Actuarial gain (loss) on plan assets 13,313 (661) (11) - 753 - Contributions paid by participants - - - - 77 - Contributions of sponsor converted in the plan - - - - - Fair value of assets on 12/31/2020 57,479 12,998 434 - 9,945 - |
Schedule of payments or contributions expected for 2021 | e) Payments or contributions expected for 2021 Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical care plan Current service cost (with interest) 17 - - - - 213 Interest on actuarial obligations 2,743 640 10 57 868 322 Earnings expected from assets (3,799) (834) (29) - (708) - Interest on the effect of the (asset)/liability limit 1,056 60 20 - - - Total unrecognized net expense (revenue) 17 (134) 1 57 160 535 |
Schedule of actuarial assumptions adopted in the calculations | The main actuarial assumptions adopted in the calculation were as follows: Nominal discount rate for the actuarial obligation: PBS South: 6.76% / 3.15%; PBS Nordeste: 6.86% / 3.25%; CA: 6.86% / 3.25%; PBS-A: 6.60% / 3.00%; AES: 7.43% / 3.80%; PAMEC: 6.81% / 3.20%; FIBER: 7.43% / 3.80% Salary growth rate - nominal: PBS: 3.50%/ 0.00% CA, PBS-A, AES, PAMEC and FIBER: Not applicable Biometric general mortality table: PBS, CA, PAMEC and FIBER: AT-2000 segregated per sex, decreased by 10% Biometric table of new disability benefit vested: PBS and FIBER: Álvaro Vindas; CA, PBS-A, AES and PAMEC: Not applicable Expected turnover rate: PBS: Null; CA, PBS-A, AES and PAMEC: Not applicable; FIBER: 0.15/ (length of service + 1), being null as of 50 years old Probability of retirement: PBS and FIBER: 100% at 1st eligibility; CA, PBS-A, AES and PAMEC: Not applicable Estimated long-term inflation rate PAMEC and FIBER: 6.60% / 3.00% Determination method Projected Unit Credit Method |
38. Insurance (Tables)
38. Insurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Schedule of main assets, liabilities or interests insured amounts | The main assets, liabilities or interests covered by insurance and their respective amounts are as follows: Description Insured amounts Operating risks R$ 34,983,023 General Civil Liability - RCG R$ 80,000 Cyber risks R$ 28,521 Automobile (executives and operational fleet) R$ 1,000 for optional civil liability (property damage and bodily harm) and R$ 100 for pain and suffering. |
39. Supplementary information_2
39. Supplementary information to the cash flow (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplementary Information To Cash Flow Tables Abstract | |
Schedule of supplementary information to the cash flow | 2020 2019 2018 Transactions not involving cash Additions to property, plant and equipment and intangible assets - with no cash effect (1,315,151) (6,653,985) (38,944) Increase in lease liabilities - no effect on cash 1,315,151 6,653,985 38,944 |
1. Operations (Details Narrativ
1. Operations (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
TIM brasil servicos e participacoes s.a. ("TIM Brasil") [member] | |||
Disclosure of transactions between related parties [line items] | |||
Proportion of ownership interest in subsidiary | 66.58% | 100.00% | 100.00% |
2. Management statement and b_3
2. Management statement and basis of preparation of the consolidated financial statements (Details) R$ in Thousands | Dec. 31, 2020BRL (R$) |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | R$ 23182745 |
TIM Participacoes [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | 23,182,745 |
Capital stock [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | 13,477,891 |
Impact on TIM S.A. statement of changes in equity | 3,611,593 |
Capital stock [member] | TIM Participacoes [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | 9,866,298 |
Capital reserve [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | 397,183 |
Impact on TIM S.A. statement of changes in equity | (20,892) |
Capital reserve [member] | TIM Participacoes [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | 418,075 |
Profit reserves - Legal reserve [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | 1,036,194 |
Impact on TIM S.A. statement of changes in equity | (57,603) |
Profit reserves - Legal reserve [member] | TIM Participacoes [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | 1,093,797 |
Profit reserves - Tax benefit reserve [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | 1,781,560 |
Impact on TIM S.A. statement of changes in equity | |
Profit reserves - Tax benefit reserve [member] | TIM Participacoes [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | 1,781,560 |
Profit reserves - Reserve for expansion [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | 6,499,602 |
Impact on TIM S.A. statement of changes in equity | (3,535,824) |
Profit reserves - Reserve for expansion [member] | TIM Participacoes [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | 10,035,426 |
Treasury shares [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | (4,837) |
Impact on TIM S.A. statement of changes in equity | 5,456 |
Treasury shares [member] | TIM Participacoes [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | (10,293) |
Accumulated other comprehensive income [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | (4,848) |
Impact on TIM S.A. statement of changes in equity | (2,730) |
Accumulated other comprehensive income [member] | TIM Participacoes [member] | |
ManagementStatementAndBasisOfPreparationOfConsolidatedFinancialStatementsLineItems [Line Items] | |
The Company's equity reserves | R$ 2118 |
2. Management statement and b_4
2. Management statement and basis of preparation of the consolidated financial statements (Details Narrative) | Dec. 31, 2020shares |
Management Statement And Basis Of Preparation Of Consolidated Financial Statements Abstract | |
Issuance of common shares | 2,420,447,019 |
3. Critical estimates and jud_3
3. Critical estimates and judgments in applying the Company's accounting policies (Details Narrative R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Critical Estimates And Judgments In Applying Companys Accounting Policies Details Narrative | |
Recognized amount of initial application | R$ 5256114 |
4. Cash and cash equivalents (D
4. Cash and cash equivalents (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents [abstract] | ||
Cash and banks | R$ 100008 | R$ 101928 |
Unrestrictedly available financial investments: | ||
Bank Deposit Certificates (CDB)/Repurchase and resale agreements | 2,475,282 | 2,182,882 |
Total cash and cash equivalents | R$ 2575290 | R$ 2284810 |
4. Cash and cash equivalents _2
4. Cash and cash equivalents (Details Narrative) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | ||
Return rate on cash and cash equivalent | 101.24% | 99.95% |
5. Marketable securities (Detai
5. Marketable securities (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets [line items] | |||
Marketable securities | R$ 2077498 | R$ 658328 | |
Current portion | (2,070,438) | (654,479) | |
Non-current portion | 7,061 | 3,849 | |
FUNCINE [member] | |||
Disclosure of financial assets [line items] | |||
Marketable securities | [1] | 7,061 | 3,849 |
Fundo soberano [member] | |||
Disclosure of financial assets [line items] | |||
Marketable securities | [2] | 5,220 | 7,329 |
FIC - Government bonds [member] | |||
Disclosure of financial assets [line items] | |||
Marketable securities | [3] | 1,345,797 | 179,390 |
FIC - CDB [member] | |||
Disclosure of financial assets [line items] | |||
Marketable securities | [3],[4] | 17,370 | 216,196 |
Financial bills [member] | |||
Disclosure of financial assets [line items] | |||
Marketable securities | [3],[5] | 292,500 | 105,857 |
Other [member] | |||
Disclosure of financial assets [line items] | |||
Marketable securities | [3],[6] | R$ 409551 | R$ 145707 |
[1] | On December 2017, the Company, with the aim of using tax deductibility benefit for income tax and social contribution purposes, started investing in the National Film Industry Financing Fund (FUNCINE). The average remuneration in 2020 is negative by 0.34% (9.18% on December 31, 2019). The position on December 31, 2020 in the amount of R$ 7,061 (R$ 3,849 million in 2019). | ||
[2] | "Fundo Soberano" is composed only of federal government bonds. The average remuneration in 2020 is 87.71% (97.62% on December 31, 2019) of the variation of the Interbank Deposit Certificate (CDI). | ||
[3] | In August 2017, the Company invested in open FIC's (Quota Investment Fund). Funds are mostly made up of government bonds and papers from top-tier financial institutions. The average remuneration in 2020 of Investment Fund in Quotas was 112.72% (99.67 on December 31, 2019) of the variation of the Interbank Deposit Certificate (CDI). | ||
[4] | The CDB operations are issued by the banks with the commitment of stock buyback by the bank itself and with predetermined taxes. | ||
[5] | The Financial bills is a fix income tittle emitted by financial institutions with the objective of a long-term fund raising | ||
[6] | Is represented by: Debentures, FIDC, commercial notes, promissory notes, bank credit note. |
5. Marketable securities (Det_2
5. Marketable securities (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
FUNCINE [member] | ||
Disclosure of financial assets [line items] | ||
Average yield rate | 0.34% | 9.18% |
Investment | R$ 7061 | R$ 3849 |
FICs [Member] | ||
Disclosure of financial assets [line items] | ||
Average yield rate | 112.72% | 99.67% |
Fundo Soberano [Member] | ||
Disclosure of financial assets [line items] | ||
Average yield rate | 87.71% | 97.62% |
6. Trade accounts receivable (D
6. Trade accounts receivable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
TradeAccountsReceivableLineItems [Line Items] | |||
Gross accounts receivable | R$ 3831921 | R$ 4061932 | |
Provision for expected credit losses | (651,260) | (774,077) | R$ 686928 |
Current portion | 3,051,834 | 3,184,780 | |
Non-current portion | 128,827 | 103,075 | |
Trade accounts receivable | 2,000,764 | 3,287,855 | |
Billed services [member] | |||
TradeAccountsReceivableLineItems [Line Items] | |||
Gross accounts receivable | 2,039,403 | 2,076,569 | |
Unbilled services [member] | |||
TradeAccountsReceivableLineItems [Line Items] | |||
Gross accounts receivable | 817,669 | 858,418 | |
Network usage [member] | |||
TradeAccountsReceivableLineItems [Line Items] | |||
Gross accounts receivable | 399,083 | 438,168 | |
Sale of goods [member] | |||
TradeAccountsReceivableLineItems [Line Items] | |||
Gross accounts receivable | 552,962 | 670,573 | |
Contractual asset [member] | |||
TradeAccountsReceivableLineItems [Line Items] | |||
Gross accounts receivable | 14,914 | 15,142 | |
Other accounts receivable [member] | |||
TradeAccountsReceivableLineItems [Line Items] | |||
Gross accounts receivable | R$ 7890 | R$ 3062 |
6. Trade accounts receivable _2
6. Trade accounts receivable (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Trade Accounts Receivable [Abstract] | ||
Opening balance | R$ 774077 | R$ 686928 |
Set-up of provision | 552,817 | 748,291 |
Impact of adopting IFRS 9 | ||
Write-off of provision | (675,634) | (661,142) |
Closing balance | R$ 651260 | R$ 774077 |
6. Trade accounts receivable _3
6. Trade accounts receivable (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
TradeAccountsReceivableLineItems [Line Items] | ||
Trade account receivables gross | R$ 3831921 | R$ 4061932 |
Falling due [member] | ||
TradeAccountsReceivableLineItems [Line Items] | ||
Trade account receivables gross | 2,785,469 | 2,576,307 |
Overdue up to 30 days [member] | ||
TradeAccountsReceivableLineItems [Line Items] | ||
Trade account receivables gross | 248,955 | 328,457 |
Overdue up to 60 days [member] | ||
TradeAccountsReceivableLineItems [Line Items] | ||
Trade account receivables gross | 84,218 | 146,200 |
Overdue up to 90 days [member] | ||
TradeAccountsReceivableLineItems [Line Items] | ||
Trade account receivables gross | 71,635 | 149,852 |
Invoices overdue more than 90 days [member] | ||
TradeAccountsReceivableLineItems [Line Items] | ||
Trade account receivables gross | R$ 641644 | R$ 861116 |
6. Trade accounts receivable _4
6. Trade accounts receivable (Details Narrative) | Dec. 31, 2020 | Dec. 31, 2019 |
Other telephone carriers [member] | ||
TradeAccountsReceivableLineItems [Line Items] | ||
Average rate | 0.22% | 0.07% |
7. Inventories (Details)
7. Inventories (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of fair value measurement of assets [line items] | ||
Inventories gross | R$ 257477 | R$ 214889 |
Losses on adjustment to realizable amount | (10,875) | (11,611) |
Total inventories | 246,602 | 203,278 |
Cell phones and tablets [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Inventories gross | 186,961 | 146,295 |
Accessories and prepaid cards [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Inventories gross | 55,558 | 61,436 |
TIM chips [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Inventories gross | R$ 14958 | R$ 7158 |
8. Recoverable indirect taxes_3
8. Recoverable indirect taxes, charges and contributions (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
IndirectTaxesChargesAndContributionsRecoverableLineItems [Line Items] | ||
Recoverable indirect taxes, fees and contributions | R$ 1230801 | R$ 1243633 |
Current portion | (374,015) | (420,284) |
Non-current portion | 856,786 | 823,349 |
Imposto sobre circulacao de mercadorias servicos [member] | Indirect [member] | ||
IndirectTaxesChargesAndContributionsRecoverableLineItems [Line Items] | ||
Recoverable indirect taxes, fees and contributions | 1,188,018 | 1,201,502 |
Other [member] | Indirect [member] | ||
IndirectTaxesChargesAndContributionsRecoverableLineItems [Line Items] | ||
Recoverable indirect taxes, fees and contributions | R$ 42783 | R$ 42131 |
9. Direct taxes, charges and _3
9. Direct taxes, charges and contributions recoverable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of fair value measurement of assets [line items] | |||
Direct taxes, fees and contributions recoverable | R$ 2698239 | R$ 3762800 | |
Current portion | (1,421,112) | (1,395,193) | |
Non-current portion | 1,277,127 | 2,367,607 | |
Income tax (IR) and social contribution (CS) [member] | Direct [member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Direct taxes, fees and contributions recoverable | [1] | 381,905 | 428,443 |
PIS/COFINS [member] | Direct [member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Direct taxes, fees and contributions recoverable | [2] | 2,253,545 | 3,244,549 |
Others [member] | Direct [member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Direct taxes, fees and contributions recoverable | R$ 62789 | R$ 89808 | |
[1] | The amounts of income tax and social contribution are as substantially related to: (a) advances made over the period during which the use will take place at the closing of the current year and any balances in the next year; and (b) other income tax and social contribution credits from previous years whose current estimated period of use will be more than 12 months later. | ||
[2] | The Recoverable PIS/COFINS amounts mainly refer to credits from a legal proceeding filed by TIM Celular S.A. (ultimately merged into TIM S.A., as well as TIM S.A. itself), with a favorable final decision in Higher Courts which discussed the exclusion of the ICMS from the PIS and COFINS calculation bases. According to the Company's internal evaluation, we expect to use such credits within the statute of limitations of up to 5 years. |
9. Direct taxes, charges and _4
9. Direct taxes, charges and contributions recoverable (Details Narrative) - BRL (R$) R$ in Thousands | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | |
DirectTaxesChargesAndContributionsRecoverableLineItems [Line Items] | |||
Total amount recorded | R$ 148000 | R$ 2875000 | R$ 1516 |
Principal amount | 75,000 | 1,720,000 | 632,000 |
Monetary adjustments | R$ 73000 | R$ 1155000 | 1,578 |
TIM S.A [member] | |||
DirectTaxesChargesAndContributionsRecoverableLineItems [Line Items] | |||
Total amount recorded | 1,391,000,000 | ||
Principal amount | 908,000,000 | ||
Monetary adjustments | 483,000 | ||
Intelig Telecomunicacoes Ltda [Member] | |||
DirectTaxesChargesAndContributionsRecoverableLineItems [Line Items] | |||
Total amount recorded | 151,000 | ||
Principal amount | 75,000 | ||
Monetary adjustments | R$ 76000 |
10. Deferred income tax and s_3
10. Deferred income tax and social contribution (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred taxes - Assets | |||
Tax loss carryforwards and negative basis of social contribution | R$ 475128 | R$ 800711 | |
Temporary differences: | |||
Provision for legal and administrative proceedings | 303,948 | 295,853 | |
Losses from doubtful accounts | 224,459 | 271,611 | |
Adjustments to present value - 3G license | 5,240 | 7,182 | |
Rental of infrastructure - LT Amazonas | 29,971 | 27,434 | |
Deferred income tax on accounting adjustments | 56,208 | ||
Provision for profit sharing of employees | 36,915 | 23,704 | |
Taxes with suspended enforceability | [1] | 258,246 | 12,872 |
Amortized goodwill - TIM Fiber | (370,494) | (370,494) | |
Derivative financial instruments | [2] | (154,718) | (13,139) |
Capitalized interest on 4G | (262,608) | (291,783) | |
Deemed costs - TIM S.A. | (53,792) | (67,748) | |
Exclusion of ICMS from PIS and COFINS calculation basis | [3] | (1,023,928) | |
IFRS16 Lease | 303,833 | 209,234 | |
Accelerated depreciation | [4] | (266,464) | |
Other | 20,982 | 87,214 | |
Total deferred taxes - Assets | 550,646 | 24,931 | |
Deferred income tax and social contribution on temporary differences, not yet recognized | (72,665) | ||
Subtotal | 550,646 | (47,734) | |
Deferred Tax Asset | 550,646 | ||
Deferred Tax Liability | R$ 47734 | ||
[1] | Mainly represented by the Fistel fee for the financial year 2020, the commencement of its payment of which was postponed, on the basis of Provisional Act 952 of April 15, 2020. | ||
[2] | In 2020, R$ 53 million of deferred tax liabilities were recorded on the gain arising from the mark-to-market of the share subscription option related to Banco C6 partnership (note 41). | ||
[3] | In March 2017, the Federal Supreme Court ("STF") recognized the unconstitutionality of including ICMS amounts in the calculation basis of PIS and COFINS contributions. In June 2019, due to the final and unappealable decision, the amounts were recorded (see note 9). For purposes of taxation of IRPJ and CSLL, the management of the Company also supported by external legal opinions, understood to defer it until the time of the effective financial availability of the credit. In this way, deferred tax liabilities relating to the full amount, in the amount of R$ 1,039.7 million, were constituted. In August 2020, due to the procedural movement, the value was fully realized from the recalculation of the IRPJ and the CSLL, referring to the year ending in December 2019, with the objective of adding the resulting credit from this ICMS exclusion process from the calculation bases of the PIS and the COFINS to the calculation bases of said taxes. | ||
[4] | As form the 1Q20, TIM S.A. excludes the portion of acceleration of depreciation of movable assets belonging to property, plant and equipment assets from the calculation basis of the IRPJ and CSLL, due to their uninterrupted use in three operating shifts, supported by technical expert report, as provided for in Article 323 of the RIR/2018, or by the adequacy to the tax depreciation provided for in IN 1700/2017. Such tax adjustment generated a deferred liability of R$ 266.5 million until December 31, 2020 and applied as of January 1, 2020. |
10. Deferred income tax and s_4
10. Deferred income tax and social contribution (Details 1) R$ in Thousands | Dec. 31, 2020BRL (R$) |
DeferredTaxesLineLineItems [Line Items] | |
Total | R$ 550646 |
Tax losses and negative basis [member] | |
DeferredTaxesLineLineItems [Line Items] | |
2021 | 157,080 |
2022 | 244,156 |
2023 | 73,892 |
2024 onwards | |
Total | 475,128 |
Temporary differences [member] | |
DeferredTaxesLineLineItems [Line Items] | |
2021 | 464,891 |
2022 | (43,881) |
2023 | (77,717) |
2024 onwards | (267,775) |
Total | R$ 75518 |
10. Deferred income tax and s_5
10. Deferred income tax and social contribution (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Income Tax And Social Contribution [Abstract] | ||
Applicable tax rate for income tax | 25.00% | 25.00% |
Applicable tax rate for social contribution | 9.00% | 9.00% |
Credit used amount | R$ 325583 | R$ 95389 |
Percentage of taxable profit offset | 30.00% |
11. Prepaid expenses (Details)
11. Prepaid expenses (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Prepaid Expenses [Abstract] | |||
Prepaid expenses | R$ 223394 | R$ 245524 | |
Rentals and insurance | 69,208 | 76,663 | |
Incremental costs for obtaining customer contracts | [1] | 125,114 | 158,093 |
Other | 29,072 | 10,768 | |
Current portion | (149,796) | (175,868) | |
Non-current portion | R$ 73598 | R$ 69656 | |
[1] | It is substantially represented by incremental costs related to sales commissions paid to partners for obtaining customer contracts arising from the adoption of IFRS 15, which are deferred to the result in accordance with the term of the contract and/or economic benefit, usually from 1 to 2 years. |
11. Prepaid expenses (Details N
11. Prepaid expenses (Details Narrative) - Adoption Of IFRS 15 [member] | 12 Months Ended |
Dec. 31, 2020 | |
Bottom Of Range [member] | |
PrepaidExpensesLineItems [Line Items] | |
Period of intangible assets | 1 year |
Top of range [member] | |
PrepaidExpensesLineItems [Line Items] | |
Period of intangible assets | 2 years |
12. Judicial deposits (Details)
12. Judicial deposits (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Judicial deposits [line items] | |||
Non-current portion | R$ 794755 | R$ 1006899 | |
Civil [member] | |||
Judicial deposits [line items] | |||
Non-current portion | 315,312 | 355,093 | |
Labor [member] | |||
Judicial deposits [line items] | |||
Non-current portion | 149,390 | 245,928 | |
Tax [member] | |||
Judicial deposits [line items] | |||
Non-current portion | 181,670 | 203,110 | |
Regulatory [member] | |||
Judicial deposits [line items] | |||
Non-current portion | 111 | 111 | |
Online Attachment [member] | |||
Judicial deposits [line items] | |||
Non-current portion | [1] | R$ 148272 | R$ 202657 |
[1] | Refer to legal blockages directly in the company's current accounts and financial investments linked to certain legal proceedings. This amount is periodically analyzed and when identified, reclassification is made to one of the other specific accounts of the legal deposit item. |
12. Judicial deposits (Details
12. Judicial deposits (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Civil [member] | ||
Judicial deposits [line items] | ||
Court deposit | R$ 70560 | R$ 69326 |
Tax [member] | Tax Court Proceedings Related to Production [member] | ||
Judicial deposits [line items] | ||
Court deposit | 34,544 | 73,326 |
Tax [member] | Tax Court Proceedings Related to CPMF [member] | ||
Judicial deposits [line items] | ||
Court deposit | 8,862 | 10,342 |
Tax [member] | Tax Court Proceedings Related to TFF [member] | ||
Judicial deposits [line items] | ||
Court deposit | 18,883 | 18,855 |
Tax [member] | Tax Court Proceedings Related to IRRF [member] | ||
Judicial deposits [line items] | ||
Court deposit | 11,317 | 11,173 |
Tax [member] | Tax Court Proceedings Related to ISS [member] | ||
Judicial deposits [line items] | ||
Court deposit | 7,843 | 7,878 |
Tax [member] | Tax Court Proceedings Related to Ancillary Services [member] | ||
Judicial deposits [line items] | ||
Court deposit | 3,329 | 3,457 |
Tax [member] | Tax Court Proceedings Related to ANATEL [member] | ||
Judicial deposits [line items] | ||
Court deposit | 3,514 | 3,471 |
Tax [member] | Tax Court Proceedings Related To Telecommunications Services Universalization Fund (''FUST") [member] | ||
Judicial deposits [line items] | ||
Court deposit | 58,664 | 57,943 |
Tax [member] | Tax Court Proceedings Related To ICMS [member] | ||
Judicial deposits [line items] | ||
Court deposit | 14,505 | R$ 7984 |
Tax [member] | Tax Court Proceedings Related To CSLL [member] | ||
Judicial deposits [line items] | ||
Court deposit | R$ 9739 |
13. Property, plant and equip_3
13. Property, plant and equipment (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | R$ 17612164 | R$ 11203622 | ||
Adoption of IFRS 16 | 5,256,114 | |||
Additions | 919,529 | 1,592,958 | ||
Write-offs | (430,995) | |||
Disposals | (32,412) | |||
Transfers | ||||
Other changes | (408,118) | |||
Balance end | 18,100,698 | 17,612,164 | ||
Commutation / transmission equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 6,428,468 | |||
Additions | (1,896,016) | |||
Write-offs | (9,082) | |||
Transfers | 3,222,020 | |||
Balance end | 7,745,390 | 6,428,468 | ||
Fiber Optic Cables [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 403,022 | 416,643 | ||
Adoption of IFRS 16 | ||||
Additions | (72,046) | (65,035) | ||
Write-offs | ||||
Disposals | ||||
Transfers | 64,511 | 51,414 | ||
Other changes | ||||
Balance end | 395,487 | 403,022 | ||
Leased handsets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 233,132 | 181,718 | ||
Adoption of IFRS 16 | ||||
Additions | (142,397) | (130,822) | ||
Write-offs | (5,185) | |||
Disposals | (13,489) | |||
Transfers | (5,185) | 195,725 | ||
Other changes | ||||
Balance end | 245,119 | 233,132 | ||
Infrastructure [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 2,503,014 | 297,592 | ||
Adoption of IFRS 16 | ||||
Additions | (340,315) | (440,224) | ||
Write-offs | (535) | |||
Disposals | (14,403) | |||
Transfers | 255,554 | 294,851 | ||
Other changes | (94,988) | |||
Balance end | 2,417,718 | 2,503,014 | ||
Informatics assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 155,942 | 167,214 | ||
Adoption of IFRS 16 | ||||
Additions | (62,648) | (62,561) | ||
Write-offs | (8) | |||
Disposals | ||||
Transfers | 59,130 | 51,289 | ||
Other changes | ||||
Balance end | 59,130 | 155,942 | ||
General Use Assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 268,847 | 251,490 | ||
Adoption of IFRS 16 | ||||
Additions | (48,402) | (45,931) | ||
Write-offs | (386) | |||
Disposals | (1) | |||
Transfers | 44,325 | 63,289 | ||
Other changes | ||||
Balance end | 264,384 | 268,847 | ||
Land [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 40,794 | 40,794 | ||
Adoption of IFRS 16 | ||||
Additions | ||||
Write-offs | ||||
Disposals | ||||
Transfers | ||||
Other changes | ||||
Balance end | 40,794 | 40,794 | ||
Construction in progress [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 1,585,673 | 1,299,663 | ||
Adoption of IFRS 16 | ||||
Additions | 2,734,056 | 3,065,213 | ||
Write-offs | (739) | |||
Disposals | (728) | |||
Transfers | (3,805,109) | (2,778,475) | ||
Other changes | ||||
Balance end | 513,881 | 1,585,673 | ||
Right-of-Use In Leases [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 5,993,272 | |||
Adoption of IFRS 16 | 5,256,114 | |||
Additions | 747,297 | 832,146 | ||
Write-offs | (415,060) | |||
Disposals | ||||
Transfers | ||||
Other changes | (94,988) | |||
Balance end | 6,325,509 | 5,993,272 | ||
Commutation and Transmission Equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 6,428,468 | 5,870,180 | ||
Adoption of IFRS 16 | ||||
Additions | (1,559,828) | |||
Disposals | (3,791) | |||
Transfers | 2,121,907 | |||
Other changes | ||||
Balance end | 6,428,468 | |||
Carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 43,353,099 | 33,832,803 | ||
Adoption of IFRS 16 | 5,256,114 | |||
Additions | 4,687,207 | 4,855,684 | ||
Write-offs | (616,791) | |||
Disposals | (183,384) | |||
Transfers | ||||
Other changes | (408,118) | |||
Balance end | 47,429,167 | 43,353,099 | ||
Carrying amount [member] | Commutation / transmission equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 22,817,681 | |||
Additions | 10,464 | |||
Write-offs | (174,249) | |||
Transfers | 3,222,020 | |||
Balance end | 25,875,916 | 22,817,681 | ||
Carrying amount [member] | Fiber Optic Cables [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 813,589 | 762,175 | ||
Adoption of IFRS 16 | ||||
Additions | ||||
Write-offs | ||||
Disposals | ||||
Transfers | 64,511 | 51,414 | ||
Other changes | ||||
Balance end | 878,100 | 813,589 | ||
Carrying amount [member] | Leased handsets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 2,489,995 | 2,313,945 | ||
Adoption of IFRS 16 | ||||
Additions | 912 | 519 | ||
Write-offs | (7,140) | |||
Disposals | (20,194) | |||
Transfers | 159,569 | 195,725 | ||
Other changes | ||||
Balance end | 2,643,336 | 2,489,995 | ||
Carrying amount [member] | Infrastructure [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 6,096,847 | 6,133,810 | ||
Adoption of IFRS 16 | ||||
Additions | 92,234 | |||
Write-offs | (8,063) | |||
Disposals | (18,684) | |||
Transfers | 255,554 | 294,851 | ||
Other changes | (313,130) | |||
Balance end | 6,436,572 | 6,096,847 | ||
Carrying amount [member] | Informatics assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 1,721,251 | 1,679,328 | ||
Adoption of IFRS 16 | ||||
Additions | 1 | |||
Write-offs | (9,996) | |||
Disposals | (9,366) | |||
Transfers | 59,130 | 51,289 | ||
Other changes | ||||
Balance end | 1,770,386 | 1,721,251 | ||
Carrying amount [member] | General Use Assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 859,505 | 796,839 | ||
Adoption of IFRS 16 | ||||
Additions | 1 | |||
Write-offs | (1,544) | |||
Disposals | (623) | |||
Transfers | 44,325 | 63,289 | ||
Other changes | ||||
Balance end | 902,287 | 859,505 | ||
Carrying amount [member] | Right-of-Use Assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 6,933,416 | [1] | ||
Adoption of IFRS 16 | 5,256,114 | |||
Additions | 1,849,539 | [1] | 177,229 | |
Write-offs | [1] | (415,060) | ||
Disposals | ||||
Transfers | [1] | |||
Other changes | (94,988) | |||
Balance end | [1] | 8,367,895 | 6,933,416 | |
Carrying amount [member] | Land [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 40,794 | 40,794 | ||
Adoption of IFRS 16 | ||||
Additions | ||||
Write-offs | ||||
Disposals | ||||
Transfers | ||||
Other changes | ||||
Balance end | 40,794 | 40,794 | ||
Carrying amount [member] | Construction in progress [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 1,585,673 | 1,299,663 | ||
Adoption of IFRS 16 | ||||
Additions | 2,734,056 | 3,065,213 | ||
Write-offs | (739) | |||
Disposals | (728) | |||
Transfers | (3,805,109) | (2,778,475) | ||
Other changes | ||||
Balance end | 513,881 | 1,585,673 | ||
Carrying amount [member] | Commutation and Transmission Equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | 22,812,029 | 20,806,249 | ||
Adoption of IFRS 16 | ||||
Additions | 17,662 | |||
Disposals | (133,789) | |||
Transfers | 2,121,907 | |||
Other changes | ||||
Balance end | 22,812,029 | |||
Accumulated Amortization [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | (25,740,935) | (22,629,181) | ||
Adoption of IFRS 16 | ||||
Additions | (3,767,678) | (3,262,726) | ||
Write-offs | 185,796 | |||
Disposals | 150,972 | |||
Transfers | ||||
Other changes | ||||
Balance end | (29,328,469) | (25,740,935) | ||
Accumulated Amortization [member] | Commutation / transmission equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | (16,389,213) | |||
Additions | (1,906,480) | |||
Write-offs | 165,167 | |||
Transfers | ||||
Balance end | (18,130,526) | (16,389,213) | ||
Accumulated Amortization [member] | Fiber Optic Cables [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | (410,567) | (345,532) | ||
Adoption of IFRS 16 | ||||
Additions | (72,046) | (65,035) | ||
Write-offs | ||||
Disposals | ||||
Transfers | ||||
Other changes | ||||
Balance end | (482,613) | (410,567) | ||
Accumulated Amortization [member] | Leased handsets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | (2,256,863) | (2,132,227) | ||
Adoption of IFRS 16 | ||||
Additions | (143,309) | (131,341) | ||
Write-offs | 1,955 | |||
Disposals | 6,705 | |||
Transfers | ||||
Other changes | ||||
Balance end | (2,398,217) | (2,256,863) | ||
Accumulated Amortization [member] | Infrastructure [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | (3,593,833) | (3,157,890) | ||
Adoption of IFRS 16 | ||||
Additions | (432,549) | (440,224) | ||
Write-offs | 7,528 | |||
Disposals | 4,281 | |||
Transfers | ||||
Other changes | ||||
Balance end | (4,018,854) | (3,593,833) | ||
Accumulated Amortization [member] | Informatics assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | (1,565,309) | (1,512,114) | ||
Adoption of IFRS 16 | ||||
Additions | (62,649) | (62,561) | ||
Write-offs | 9,988 | |||
Disposals | 9,366 | |||
Transfers | ||||
Other changes | ||||
Balance end | (1,617,970) | (1,565,309) | ||
Accumulated Amortization [member] | General Use Assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | (590,658) | (545,349) | ||
Adoption of IFRS 16 | ||||
Additions | (48,403) | (45,931) | ||
Write-offs | 1,158 | |||
Disposals | 622 | |||
Transfers | ||||
Other changes | ||||
Balance end | (637,903) | (590,658) | ||
Accumulated Amortization [member] | Right-of-Use In Leases [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | (940,144) | |||
Adoption of IFRS 16 | ||||
Additions | (1,102,242) | (940,144) | ||
Write-offs | ||||
Disposals | ||||
Transfers | ||||
Other changes | ||||
Balance end | (2,042,386) | (940,144) | ||
Accumulated Amortization [member] | Commutation and Transmission Equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance beginning | R$ 16383561 | (14,936,069) | ||
Adoption of IFRS 16 | ||||
Additions | (1,577,490) | |||
Disposals | 129,998 | |||
Transfers | ||||
Other changes | ||||
Balance end | R$ 16383561 | |||
[1] | The amount of R$ 415,060 is represented by remeasurement of contracts and includes changes in the term and scope of leases and a review of the estimate in relation to low-value vehicle contracts. |
13. Property, plant and equip_4
13. Property, plant and equipment (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance beginning | R$ 17612164 |
Additions in the period, net of cancellation | 1,849,539 |
Remensuration | (415,060) |
Depreciation | (1,102,242) |
Balance end | 18,100,698 |
Lease Operation - Network [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance beginning | 3,172,142 |
Additions in the period, net of cancellation | 492,771 |
Remensuration | (196,967) |
Depreciation | (448,046) |
Balance end | R$ 3019900 |
Amortization percentage per year | 12.41% |
Lease Operation - Vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance beginning | R$ 6988 |
Additions in the period, net of cancellation | 4,926 |
Remensuration | (7,426) |
Depreciation | (4,488) |
Balance end | |
Amortization percentage per year | 38.35% |
Lease Operation - Stores & Kiosks and real estate [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance beginning | R$ 479472 |
Additions in the period, net of cancellation | 142,174 |
Remensuration | (114,726) |
Depreciation | (106,658) |
Balance end | R$ 400262 |
Amortization percentage per year | 22.60% |
Lease Operation - Land (Network) [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance beginning | R$ 1539913 |
Additions in the period, net of cancellation | 251,886 |
Remensuration | (89,335) |
Depreciation | (201,555) |
Balance end | R$ 1500909 |
Amortization percentage per year | 9.87% |
Lease Operation - Fiber [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance beginning | R$ 794757 |
Additions in the period, net of cancellation | 957,782 |
Remensuration | (6,606) |
Depreciation | (341,495) |
Balance end | R$ 1404438 |
Amortization percentage per year | 24.69% |
13. Property, plant and equip_5
13. Property, plant and equipment (Details 2) | 12 Months Ended |
Dec. 31, 2020 | |
Commutation and Transmission Equipment [member] | Bottom Of Range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates | 8.00% |
Commutation and Transmission Equipment [member] | Top Of Range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates | 14.29% |
Fiber Optic Cables [Member] | Bottom Of Range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates | 4.00% |
Fiber Optic Cables [Member] | Top Of Range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates | 10.00% |
Leased handsets [member] | Bottom Of Range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates | 14.28% |
Leased handsets [member] | Top Of Range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates | 50.00% |
Infrastructure [member] | Bottom Of Range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates | 4.00% |
Infrastructure [member] | Top Of Range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates | 20.00% |
Informatics assets [member] | Bottom Of Range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates | 10.00% |
Informatics assets [member] | Top Of Range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates | 20.00% |
General Use Assets [member] | Bottom Of Range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates | 10.00% |
General Use Assets [member] | Top Of Range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates | 20.00% |
13. Property, plant and equip_6
13. Property, plant and equipment (Details Narrative) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Property Plant And Equipment | |
Remeasurement of contract | R$ 415060 |
14. Intangible assets (Details)
14. Intangible assets (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | R$ 9668326 | R$ 10682004 |
Additions/(Amortization) | (641,281) | (915,045) |
Write-offs | 29 | |
Transfers | ||
Other Changes | (98,633) | |
Intangible assets, ending balance | 9,027,075 | 9,668,326 |
Carrying amount [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 30,229,359 | 29,366,779 |
Additions/(Amortization) | 1,215,636 | 961,213 |
Write-offs | (945) | |
Transfers | ||
Other Changes | (98,633) | |
Intangible assets, ending balance | 31,444,050 | 30,229,359 |
Accumulated Amortization [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | (20,561,032) | (18,684,775) |
Additions/(Amortization) | (1,856,917) | (1,876,258) |
Write-offs | 974 | |
Transfers | ||
Other Changes | ||
Intangible assets, ending balance | (22,416,975) | (20,561,032) |
Goodwill [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 1,527,219 | 1,527,219 |
Additions/(Amortization) | ||
Write-offs | ||
Transfers | ||
Other Changes | ||
Intangible assets, ending balance | 1,527,220 | 1,527,219 |
Goodwill [member] | Carrying amount [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 1,527,219 | 1,527,219 |
Additions/(Amortization) | ||
Write-offs | ||
Transfers | ||
Other Changes | ||
Intangible assets, ending balance | 1,527,220 | 1,527,219 |
Software licenses [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 3,091,216 | |
Additions/(Amortization) | (1,286,295) | |
Write-offs | 35 | |
Transfers | 934,072 | |
Intangible assets, ending balance | 2,739,028 | 3,091,216 |
Software licenses [member] | Carrying amount [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 18,184,382 | |
Additions/(Amortization) | ||
Write-offs | (939) | |
Transfers | 934,072 | |
Intangible assets, ending balance | 19,117,515 | 18,184,382 |
Software licenses [member] | Accumulated Amortization [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | (15,093,166) | |
Additions/(Amortization) | (1,286,295) | |
Write-offs | 974 | |
Transfers | ||
Intangible assets, ending balance | (16,378,487) | (15,093,166) |
Authorizations [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 4,533,380 | 2,793,328 |
Additions/(Amortization) | (505,723) | (405,803) |
Write-offs | (6) | |
Transfers | 87,355 | 2,255,625 |
Other Changes | (109,770) | |
Intangible assets, ending balance | 4,115,007 | 4,533,380 |
Authorizations [member] | Carrying amount [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 9,811,793 | 7,638,970 |
Additions/(Amortization) | 32,105 | 26,968 |
Write-offs | (6) | |
Transfers | 87,355 | 2,255,625 |
Other Changes | (109,770) | |
Intangible assets, ending balance | 9,931,248 | 9,811,793 |
Authorizations [member] | Accumulated Amortization [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | (5,278,413) | (4,845,642) |
Additions/(Amortization) | (537,828) | (432,771) |
Write-offs | ||
Transfers | ||
Other Changes | ||
Intangible assets, ending balance | (5,816,241) | (5,278,413) |
Infrastructure right-of-use - LT amazonas [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 109,124 | 145,761 |
Additions/(Amortization) | 777 | (7,763) |
Write-offs | ||
Transfers | ||
Other Changes | (28,874) | |
Intangible assets, ending balance | 109,900 | 109,124 |
Infrastructure right-of-use - LT amazonas [member] | Carrying amount [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 169,328 | 198,202 |
Additions/(Amortization) | 8,539 | |
Write-offs | ||
Transfers | ||
Other Changes | (28,874) | |
Intangible assets, ending balance | 177,866 | 169,328 |
Infrastructure right-of-use - LT amazonas [member] | Accumulated Amortization [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | (60,204) | (52,441) |
Additions/(Amortization) | (7,762) | (7,763) |
Write-offs | ||
Transfers | ||
Other Changes | ||
Intangible assets, ending balance | (67,966) | (60,204) |
Other assets [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 198,111 | 202,048 |
Additions/(Amortization) | (25,032) | (23,644) |
Write-offs | ||
Transfers | 2,266 | 19,708 |
Other Changes | ||
Intangible assets, ending balance | 175,345 | 198,111 |
Other assets [member] | Carrying amount [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 327,362 | 307,654 |
Additions/(Amortization) | ||
Write-offs | ||
Transfers | 2,266 | 19,708 |
Other Changes | ||
Intangible assets, ending balance | 329,626 | 327,362 |
Other assets [member] | Accumulated Amortization [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | (129,250) | (105,606) |
Additions/(Amortization) | (25,032) | (23,644) |
Write-offs | ||
Transfers | ||
Other Changes | ||
Intangible assets, ending balance | (154,281) | (129,250) |
Intangible assets under development [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 209,275 | 2,552,093 |
Additions/(Amortization) | 1,174,992 | 934,245 |
Write-offs | ||
Transfers | (1,023,693) | (3,317,074) |
Other Changes | 40,011 | |
Intangible assets, ending balance | 360,575 | 209,275 |
Intangible assets under development [member] | Carrying amount [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 209,276 | 2,552,093 |
Additions/(Amortization) | 1,174,992 | 934,245 |
Write-offs | ||
Transfers | (1,023,693) | (3,317,074) |
Other Changes | 40,011 | |
Intangible assets, ending balance | 360,575 | 209,276 |
Right to use software [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 3,091,216 | 3,461,555 |
Additions/(Amortization) | (1,412,080) | |
Transfers | 1,041,741 | |
Other Changes | ||
Intangible assets, ending balance | 3,091,216 | |
Right to use software [member] | Carrying amount [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 18,184,382 | 17,142,641 |
Additions/(Amortization) | ||
Transfers | 1,041,741 | |
Other Changes | ||
Intangible assets, ending balance | 18,184,382 | |
Right to use software [member] | Accumulated Amortization [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | R$ 15093166 | (13,681,086) |
Additions/(Amortization) | (1,412,080) | |
Transfers | ||
Other Changes | ||
Intangible assets, ending balance | R$ 15093166 |
14. Intangible assets (Details
14. Intangible assets (Details 1) | 12 Months Ended |
Dec. 31, 2020 | |
Software licenses [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 20.00% |
Authorizations [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 5.00% |
Authorizations [member] | Top Of Range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 50.00% |
Right to use infrastructure [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 5.00% |
Other assets [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 7.00% |
Other assets [member] | Top Of Range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 10.00% |
14. Intangible assets (Detail_2
14. Intangible assets (Details Narrative) - BRL (R$) R$ in Thousands | Aug. 29, 2012 | Dec. 31, 2014 | Dec. 31, 2009 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2005 |
Disclosure of detailed information about intangible assets [line items] | ||||||
Interest capitalized | R$ 40011 | |||||
Remeasurement of authorization amounts | 109,770 | |||||
Software licenses [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Subsidiary purchased Lot 2 | R$ 1199 | 1,739 | ||||
Remaining amount recorded as debt | 47 | R$ 47 | ||||
Additional cost on long-term obligations | 295 | |||||
Amount payable to reduced the adjustment present value | R$ 47 | 47 | ||||
Capitalized average rate | 6.90% | |||||
Borrowing capitalized cost | 38,375 | |||||
Interest capitalized | R$ 40011 | |||||
Total auction amount | R$ 1199000000 | |||||
TIM S.A [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Acquisition of goodwill | R$ 210015 | |||||
TIM fiber SP ltda. and TIM fiber RJ. S.A. [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Acquisition of goodwill | R$ 1159649 | |||||
TIM Sul and TIM Nordeste [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Acquisition of goodwill | R$ 157556 |
15. Leases (Details)
15. Leases (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | ||
Finance lease receivables | R$ 162198 | R$ 156378 |
Current portion | (5,357) | (4,931) |
Non-current portion | 156,841 | 151,447 |
LT Amazonas [member] | ||
Disclosure of financial assets [line items] | ||
Finance lease receivables | R$ 162198 | R$ 156378 |
15. Leases (Details 1)
15. Leases (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | ||
Present value | R$ 162198 | R$ 156378 |
LT Amazonas [member] | ||
Disclosure of financial assets [line items] | ||
Nominal values | 315,319 | |
Present value | 162,198 | R$ 156378 |
LT Amazonas [member] | Up to december 2021 [member] | ||
Disclosure of financial assets [line items] | ||
Nominal values | 24,937 | |
Present value | 5,357 | |
LT Amazonas [member] | Jan 2022 Dec 2025 [member] | ||
Disclosure of financial assets [line items] | ||
Nominal values | 99,749 | |
Present value | 32,010 | |
LT Amazonas [member] | January 2026 onwards [member] | ||
Disclosure of financial assets [line items] | ||
Nominal values | 190,633 | |
Present value | R$ 124831 |
15. Leases (Details 2)
15. Leases (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | ||
Subtotal | R$ 8378835 | R$ 7780870 |
Total | 8,378,835 | 7,780,870 |
Current portion | (1,054,709) | (873,068) |
Non-current portion | 7,324,126 | 6,907,802 |
LT Amazonas [Member] | ||
Disclosure of financial assets [line items] | ||
Subtotal | 290,385 | 276,233 |
Sale of Towers (Leaseback) [member] | ||
Disclosure of financial assets [line items] | ||
Subtotal | 1,256,410 | 1,192,596 |
Other [member] | ||
Disclosure of financial assets [line items] | ||
Subtotal | 115,027 | 115,973 |
Lease Operation - Network [member] | ||
Disclosure of financial assets [line items] | ||
Subtotal | 3,252,463 | 3,294,261 |
Lease Operation - Vehicles [member] | ||
Disclosure of financial assets [line items] | ||
Subtotal | 3,005 | |
Lease Operation - Stores And Kiosks [member] | ||
Disclosure of financial assets [line items] | ||
Subtotal | 175,660 | 255,857 |
Lease - Land (Network) [member] | ||
Disclosure of financial assets [line items] | ||
Subtotal | 1,606,567 | 1,600,456 |
Lease Operation - Fiber [member] | ||
Disclosure of financial assets [line items] | ||
Subtotal | 1,422,993 | 798,568 |
Subtotal (IFRS 16) [member] | ||
Disclosure of financial assets [line items] | ||
Subtotal | 6,717,013 | 6,196,068 |
Lease - Real estate [member] | ||
Disclosure of financial assets [line items] | ||
Subtotal | R$ 259330 | R$ 243921 |
15. Leases (Details 3)
15. Leases (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | ||
Present value | R$ 8378835 | R$ 7780870 |
LT Amazonas [Member] | ||
Disclosure of financial assets [line items] | ||
Nominal values | 599,054 | |
Present value | 290,385 | R$ 276233 |
LT Amazonas [Member] | Up to December 2021 [member] | ||
Disclosure of financial assets [line items] | ||
Nominal values | 47,366 | |
Present value | 13,772 | |
LT Amazonas [Member] | Jan 2022 - dec 2025 [member] | ||
Disclosure of financial assets [line items] | ||
Nominal values | 189,465 | |
Present value | 51,915 | |
LT Amazonas [Member] | January 2026 onwards [member] | ||
Disclosure of financial assets [line items] | ||
Nominal values | 362,223 | |
Present value | R$ 224698 |
15. Leases (Details 4)
15. Leases (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | ||
Present value | R$ 8378835 | R$ 7780870 |
Sale of Towers (Leaseback) [member] | ||
Disclosure of financial assets [line items] | ||
Nominal values | 2,943,346 | |
Present value | 1,256,410 | R$ 1192596 |
Sale of Towers (Leaseback) [member] | Up to December 2021 [member] | ||
Disclosure of financial assets [line items] | ||
Nominal values | 201,457 | |
Present value | 28,576 | |
Sale of Towers (Leaseback) [member] | Jan 2022 - dec 2025 [member] | ||
Disclosure of financial assets [line items] | ||
Nominal values | 805,829 | |
Present value | 163,141 | |
Sale of Towers (Leaseback) [member] | January 2026 onwards [member] | ||
Disclosure of financial assets [line items] | ||
Nominal values | 1,936,060 | |
Present value | R$ 1064693 |
15. Leases (Details 5)
15. Leases (Details 5) R$ in Thousands | Dec. 31, 2020BRL (R$) |
Disclosure of financial assets [line items] | |
Nominal values | R$ 9271913 |
Present values | 6,717,013 |
Up to Dec 2021 [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 1,507,562 |
Jan 2026 onwards [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 2,937,862 |
Jan 2022 - Dec 2025 [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 4,826,489 |
Lease Operation - Fiber [member] | |
Disclosure of financial assets [line items] | |
Nominal values | 1,599,928 |
Present values | 1,422,993 |
Lease Operation - Fiber [member] | Up to Dec 2021 [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 413,580 |
Lease Operation - Fiber [member] | Jan 2026 onwards [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | |
Lease Operation - Fiber [member] | Jan 2022 - Dec 2025 [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 1,186,348 |
Lease - Land (Network) [member] | |
Disclosure of financial assets [line items] | |
Nominal values | 2,560,815 |
Present values | 1,606,567 |
Lease - Land (Network) [member] | Up to Dec 2021 [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 304,086 |
Lease - Land (Network) [member] | Jan 2026 onwards [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 1,210,636 |
Lease - Land (Network) [member] | Jan 2022 - Dec 2025 [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 1,046,093 |
Lease Operation - Stores And Kiosks [member] | |
Disclosure of financial assets [line items] | |
Nominal values | 196,607 |
Present values | 175,660 |
Lease Operation - Stores And Kiosks [member] | Up to Dec 2021 [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 67,535 |
Lease Operation - Stores And Kiosks [member] | Jan 2026 onwards [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 4,257 |
Lease Operation - Stores And Kiosks [member] | Jan 2022 - Dec 2025 [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 124,815 |
Lease Operation - Network [member] | |
Disclosure of financial assets [line items] | |
Nominal values | 4,541,667 |
Present values | 3,252,463 |
Lease Operation - Network [member] | Up to Dec 2021 [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 663,013 |
Lease Operation - Network [member] | Jan 2026 onwards [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 1,591,291 |
Lease Operation - Network [member] | Jan 2022 - Dec 2025 [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 2,287,363 |
Lease - Real estate [member] | |
Disclosure of financial assets [line items] | |
Nominal values | 372,896 |
Present values | 259,330 |
Lease - Real estate [member] | Up to Dec 2021 [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 59,348 |
Lease - Real estate [member] | Jan 2026 onwards [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | 131,678 |
Lease - Real estate [member] | Jan 2022 - Dec 2025 [member] | |
Disclosure of financial assets [line items] | |
Total other lease operations | R$ 181870 |
15. Leases (Details Narrative)
15. Leases (Details Narrative) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020BRL (R$)Number | Dec. 31, 2019BRL (R$) | |
Disclosure of financial assets [line items] | ||
Interest paid | R$ 567261 | R$ 592323 |
Average incremental rate | 9.06% | 10.55% |
Deferred revenue | R$ 1021924 | R$ 1109112 |
Rental expense | 28,523 | 82,110 |
Two Sales Agreements [member] | TIM Celular S.A. ("TIM Celular") [member] | ||
Disclosure of financial assets [line items] | ||
Owned amount of telecommunications towers | R$ 3000000 | |
Maximum number of towers owned | Number | 6,481 | |
LT Amazonas [member] | ||
Disclosure of financial assets [line items] | ||
Finance lease receivables interest rate | 12.56% | |
LT Amazonas [Member] | ||
Disclosure of financial assets [line items] | ||
Finance lease liabilities interest rate | 14.44% | |
Nominal amount | R$ 599054 | |
Sale of Towers (Leaseback) [member] | ||
Disclosure of financial assets [line items] | ||
Nominal amount | 2,943,346 | |
Sales | R$ 2651247 | |
Deferred revenue | R$ 1088390 | |
Sale of Towers (Leaseback) [member] | Bottom Of Range [member] | ||
Disclosure of financial assets [line items] | ||
Finance lease liabilities interest rate | 11.01% | |
Sale of Towers (Leaseback) [member] | Top Of Range [member] | ||
Disclosure of financial assets [line items] | ||
Finance lease liabilities interest rate | 17.08% |
16. Regulatory credits recove_2
16. Regulatory credits recoverable (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Amounts Recoverable Details Narrative Abstract | ||
Regulatory credits recoverable | R$ 43906 | R$ 33090 |
17. Suppliers (Details)
17. Suppliers (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Suppliers [Line Items] | |||
Current portion | R$ 3128732 | R$ 3923035 | |
Local Currency [member] | |||
Suppliers [Line Items] | |||
Current portion | 2,932,486 | 3,769,298 | |
Local Currency [member] | Suppliers Of Materials And Services [member] | |||
Suppliers [Line Items] | |||
Current portion | [1] | 2,839,547 | 3,667,152 |
Local Currency [member] | Inter Connection [member] | |||
Suppliers [Line Items] | |||
Current portion | [2] | 64,066 | 67,396 |
Local Currency [member] | Co-Billing [member] | |||
Suppliers [Line Items] | |||
Current portion | [3] | 28,661 | 34,309 |
Local Currency [member] | Roaming [member] | |||
Suppliers [Line Items] | |||
Current portion | [4] | 212 | 441 |
Foreign Currency [member] | |||
Suppliers [Line Items] | |||
Current portion | 196,246 | 153,737 | |
Foreign Currency [member] | Suppliers Of Materials And Services [member] | |||
Suppliers [Line Items] | |||
Current portion | [1] | 148,888 | 116,057 |
Foreign Currency [member] | Roaming [member] | |||
Suppliers [Line Items] | |||
Current portion | [4] | 47,358 | 37,680 |
Foreign Currency [member] | Current installment [member] | |||
Suppliers [Line Items] | |||
Current portion | R$ 3128732 | R$ 3923035 | |
[1] | Represents the amount to be paid to suppliers in the acquisition of materials and in the provision of services applied to the tangible and intangible asset or for consumption in the operation, maintenance and administration, in accordance with the terms of the contract between the parties. | ||
[2] | Refers to as the use of the network of other fixed and mobile operators such cases where calls are initiated on the TIM network and terminated on the other operators. | ||
[3] | Refers to calls made by the customer when choosing another long-distance operator. | ||
[4] | Refers to calls made when the customer is outside their registration area and is considered a visitor on the other network. |
18. Authorizations payable (Det
18. Authorizations payable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Authorizations Payable [Abstract] | |||
Renewal of authorizations | [1] | R$ 188498 | R$ 199363 |
Updated ANATEL liability | [2] | 146,949 | 126,974 |
Authorizations payable | 335,447 | 326,337 | |
Current portion | (102,507) | (88,614) | |
Non-current portion | R$ 232940 | R$ 237723 | |
[1] | To provide the SMP, the Company obtained authorizations of the right to use radio frequency for a fixed term, renewable for another 15 (fifteen) years. In the option for the extension of the right of this use, it is due the payment of the amount of 2% on the net revenue of the region covered by the authorization that ends each biennium. On December 31, 2020, the Company had balances falling due related to renovation of authorizations in the amount of R$ 188,498 (R$ 199,363 on December 31, 2019). | ||
[2] | On December 5, 2014, the company signed the authorization term of the 700 MHz band and paid the equivalent of R$ 1,678 million, recording the remaining balance in the amount of R$ 61 million as commercial liability, according to the payment method provided for in the notice. |
18. Authorizations payable (D_2
18. Authorizations payable (Details 1) - TIM Celular S.A. ("TIM Celular") [member] | 12 Months Ended | |
Dec. 31, 2020 | ||
Amapa Roraima Para Amazonas And Maranhao [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Mar 2031 | [1] |
Additional frequencies 1,800 MHz | Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
2,500 MHz (P Band (4G) | Part of AR92 (PA) - Feb 2024 | [2] |
700 MHz (4G) | Dec 2029 | |
Rio De Janeiro And Espirito Santo [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
450 MHz | Oct 2027 | |
800 MHz, 900 MHz and 1,800 MHz | Mar 2031 | [1] |
Additional frequencies 1,800 MHz | ES - Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
2,500 MHz (P Band (4G) | Part of AR21 (RJ) - Feb 2024 | [2] |
700 MHz (4G) | Dec 2029 | |
Acre Rondonia Mato Grosso Mato Grosso Do Sul Tocantins Distrito Federal Goias Rio Grande Do Sul (Except The Municipality Of Pelotas And Region) And The Municipalities Of Londrina And Tamarana In Parana [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
450 MHz | PR - Oct 2027 | |
800 MHz, 900 MHz and 1,800 MHz | Mar 2031 | [1] |
Additional frequencies 1,800 MHz | Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
2,500 MHz (P Band (4G) | Part of AR61 (DF) - Feb 2024 | [2] |
700 MHz (4G) | Dec 2029 | |
Sao Paulo [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Mar 2031 | [1] |
Additional frequencies 1,800 MHz | Countryside - Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
Parana (Except The Municipalities Of Londrina And Tamarana) [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
450 MHz | Oct 2027 | |
800 MHz, 900 MHz and 1,800 MHz | Sep 2022 | [1] |
Additional frequencies 1,800 MHz | Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
2,500 MHz (P Band (4G) | AR41, except Curitiba and the Metropolitan Region - Feb 2024 AR41, Curitiba and Metropolitan Region July 2031 | [2] |
700 MHz (4G) | Dec 2029 | |
Santa Catarina [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
450 MHz | Oct 2027 | |
800 MHz, 900 MHz and 1,800 MHz | Sep 2023 | [1] |
Additional frequencies 1,800 MHz | Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
Municipality And Region Of Pelotas In The State Of Rio Grande Do Sul [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Apr 2024 | [1] |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
Pernambuco [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | May 2024 | [1] |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
2,500 MHz (P Band (4G) | Part of AR81 - July 2031 | [2] |
700 MHz (4G) | Dec 2029 | |
Ceara [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Nov 2023 | [1] |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
Paraiba [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Dec 2023 | [1] |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
Rio Grande Do Norte [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Dec 2023 | [1] |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
Alagoas [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Dec 2023 | [1] |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
Piaui [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Mar 2024 | [1] |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
Minas Gerais (Except The Municipalities Of The PGO Sector 3 For 3G The Radio Frequencies And Others) [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Apr 2028 | [1] |
Additional frequencies 1,800 MHz | Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
2,500 MHz (P Band (4G) | Part of AR31 - Feb 2030 | [2] |
700 MHz (4G) | Dec 2029 | |
Bahia And Sergipe [member] | ||
AuthorizationsPayableLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Aug 2027 | [1] |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
[1] | Terms already renewed for 15 years, therefore without the right to a new renewal period. | |
[2] | Only complementary areas in specific states. |
18. Authorizations payable (D_3
18. Authorizations payable (Details Narrative) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Jun. 30, 2015BRL (R$) | Dec. 05, 2014BRL (R$)Number | ||
AuthorizationsPayableLineItems [Line Items] | |||||
Renewal of authorizations | [1] | R$ 188498 | R$ 199363 | ||
Authorizations payable | R$ 335447 | 326,337 | |||
Civil Proceedings - ANATEL [member] | |||||
AuthorizationsPayableLineItems [Line Items] | |||||
Renewal term | 15 years | ||||
Percentage of revenue | 2.00% | ||||
Maturity term of authorization | 2 years | ||||
Authorizations payable | R$ 188498 | R$ 199363 | |||
Civil Proceedings - ANATEL [member] | Authorization Instrument [member] | |||||
AuthorizationsPayableLineItems [Line Items] | |||||
Authorizations payable | R$ 1678000 | ||||
Number of band | Number | 700 | ||||
Remaining authorizations payable | R$ 61000 | ||||
Total commitment | R$ 1199000 | ||||
Surplus charges | R$ 147000 | R$ 61000 | |||
[1] | To provide the SMP, the Company obtained authorizations of the right to use radio frequency for a fixed term, renewable for another 15 (fifteen) years. In the option for the extension of the right of this use, it is due the payment of the amount of 2% on the net revenue of the region covered by the authorization that ends each biennium. On December 31, 2020, the Company had balances falling due related to renovation of authorizations in the amount of R$ 188,498 (R$ 199,363 on December 31, 2019). |
19. Loans and financing (Detail
19. Loans and financing (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of detailed information about borrowings [line items] | |||
Total | R$ 2345032 | R$ 2029088 | |
Current | (1,689,385) | (1,384,180) | |
Non-current | R$ 655647 | 644,908 | |
Banco nacional de desenvolvimento economico e social [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | [1] | URTJLP | |
Charges | [1] | TJLP at TJLP + 2.52% p.a. | |
Maturity | [1] | July 2022 | |
Total | [1] | 240,008 | |
Banco nacional de desenvolvimento economico e social [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | [1] | UM143 | |
Charges | [1] | SELIC + 2.52% p.a. | |
Maturity | [1] | July 2022 | |
Total | [1] | 374,461 | |
BNDES investment sustainment program (BNDES PSI) [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Charges | [1] | 3.50% p.a. | |
Maturity | [1] | Jan 2021 | |
Total | [1] | 18,071 | |
KFW finnvera [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | [2] | USD | |
Charges | [2] | Libor 6M+ 0.75% p.a. | |
Maturity | [2] | Jan 2024–Dec 2025 | |
Total | [2] | R$ 344125 | 330,217 |
Debentures [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | [2] | BRL | |
Charges | [2] | 104.1% CDI | |
Maturity | [2] | July 2020 | |
Total | [2] | 1,025,965 | |
Cisco capital [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | [2] | USD | |
Charges | [2] | 2.50% p.a. | |
Maturity | [2] | Dec-20 | |
Total | [2] | 40,366 | |
BAML [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | [2] | EUR | |
Charges | [2] | 0.279% p.a. | |
Maturity | [2] | Aug 2021 | |
Total | [2] | R$ 570844 | |
Scotland [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | [2] | USD | |
Charges | [2] | 1.734% p.a. | |
Maturity | [2] | Aug 2021 | |
Total | [2] | R$ 1030761 | |
BNP Paribas [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | [2] | USD | |
Charges | [2] | 2.822% p.a. | |
Maturity | [2] | Jan 2022 | |
Total | [2] | R$ 399302 | |
[1] | Certain receivables of the Company. | ||
[2] | Does not have a guarantee. |
19. Loans and financing (Deta_2
19. Loans and financing (Details 1) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020BRL (R$) | ||
Disclosure of detailed information about borrowings [line items] | ||
Remaining amount | R$ 2252479 | |
Amount used as at end | R$ 2252479 | |
Banco nacional de desenvolvimento economico e social [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | URTJLP | [1] |
Term | July 2022 | [1] |
Banco nacional de desenvolvimento economico e social [member] | Financing and credit facilities one [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | TJLP | [2] |
Opening date | May 2018 | [2] |
Term | Mar 2022 | [2] |
Total amount | R$ 1090000 | [2] |
Remaining amount | 1,090,000 | [2] |
Amount used as at end | [2] | |
Banco nacional de desenvolvimento economico e social [member] | Financing and Credit Facilities Two [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | TJLP | [3] |
Opening date | May 2018 | [3] |
Term | Mar 2022 | [3] |
Total amount | R$ 20000 | [3] |
Remaining amount | 20,000 | [3] |
Amount used as at end | [3] | |
Finame [member] | Financing and Credit Facilities Three [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | IPCA | [4] |
Opening date | Mar 2019 | [4] |
Term | Mar 2022 | [4] |
Total amount | R$ 390000 | [4] |
Remaining amount | 390,000 | [4] |
Amount used as at end | [4] | |
BNB [member] | Financing and credit facilities four [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | IPCA | [5] |
Opening date | Jan 2020 | [5] |
Term | June 2023 | [5] |
Total amount | R$ 752479 | [5] |
Remaining amount | 752,479 | [5] |
Amount used as at end | [5] | |
[1] | Certain receivables of the Company. | |
[2] | Support to TIM's investment plan for the years 2017 to 2019 including, but not limited to, the acquisition of national equipment. | |
[3] | Investments in social projects within the community. | |
[4] | Exclusive application in the acquisition of machinery and equipment, industrial systems and/or other components of national manufacture. | |
[5] | Support to TIM's investment plan for the years 2020 to 2022 in the region of operation of Banco do Nordeste do Brasil. |
19. Loans and financing (Deta_3
19. Loans and financing (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Long-term portions of borrowing and financing | R$ 655647 | R$ 644908 |
2022 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term portions of borrowing and financing | 483,001 | |
2023 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term portions of borrowing and financing | 86,834 | |
2024 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term portions of borrowing and financing | 58,308 | |
2025 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term portions of borrowing and financing | R$ 27504 |
19. Loans and financing (Deta_4
19. Loans and financing (Details 3) R$ in Thousands | Dec. 31, 2020BRL (R$) |
Disclosure of detailed information about borrowings [line items] | |
Nominal value of loan | R$ 2345032 |
2021 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Nominal value of loan | 1,689,385 |
2022 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Nominal value of loan | 483,001 |
2023 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Nominal value of loan | 86,834 |
2024 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Nominal value of loan | 58,308 |
2025 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Nominal value of loan | R$ 27504 |
19. Loans and financing (Deta_5
19. Loans and financing (Details Narrative) - BRL (R$) R$ in Thousands | Apr. 20, 2020 | Feb. 20, 2020 | May 30, 2020 | Jan. 31, 2020 | May 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 30, 2020 | |
Disclosure of detailed information about borrowings [line items] | ||||||||||
Third tranche amount | R$ 2345032 | R$ 2029088 | ||||||||
Non-convertible debentures issued | R$ 10180000 | |||||||||
Net debt amount | 5,450,018 | 6,672,185 | ||||||||
Fair value of operations | R$ 1035473 | 569,917 | R$ 409935 | |||||||
Banco nacional de desenvolvimento economico e social [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Maturity | [1] | July 2022 | ||||||||
Amount of credit facility | R$ 1500000 | |||||||||
Description of credit facility agreement | The cost of this line is IPCA plus interest of up to 2.99% per year and its availability extends until March 2022. | |||||||||
Third tranche amount | [1] | 240,008 | ||||||||
Banco nacional de desenvolvimento economico e social [member] | Bank of america merrill lynch [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Description of debt | BNDES at a cost of 171% of the CDI | |||||||||
Net debt amount | R$ 4250000 | |||||||||
Banco nacional de desenvolvimento economico e social [member] | Bank of nova scotia [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Description of debt | Company contracted a new loan in foreign currency with the Bank of Nova Scotia in the amount of R$ 574.2 million, with a cost of 155% of the CDI and a term of one year, aimed to strengthen the cash during the period of the crisis generated by the pandemic | average cost of 108.3% of the CDI rate | ||||||||
Net debt amount | R$ 3750000 | |||||||||
Finame [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Amount of credit facility | R$ 3900000 | |||||||||
Banco do nordeste do brasil s.a. [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Amount of credit facility | R$ 7520000 | |||||||||
Description of credit facility agreement | The agreement has a total term of 8 years, 3 of which are grace period and 5 of amortization, to subsidize company´s capex plan for the next 3 years (2020-2022) in the Northeast region. The credit line is divided into two tranches: i) R$325 million to IPCA + 1.44% p.a. or IPCA +1.22% considering 15% of compliance bonuses; and ii) R) 427 million to IPCA + 1.76% p.a. or IPCA +1.48% considering 15% of compliance bonuses. Disbursement in installments scheduled for 2021 and 2022. | |||||||||
BNP Paribas [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Maturity | [2] | Jan 2022 | ||||||||
Third tranche amount | [2] | R$ 399302 | ||||||||
Description of debt | Company signed a new loan transaction in foreign currency with BNP Paribas in the amount of R$ 426 million at a cost of 155% of the CDI and a term of 1.5 years. The cash inflow related to this loan occurred in July 2020. | |||||||||
[1] | Certain receivables of the Company. | |||||||||
[2] | Does not have a guarantee. |
20. Indirect taxes, charges a_3
20. Indirect taxes, charges and contributions payable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Indirect taxes charges and contributions payable [line items] | |||
Indirect taxes, charges and contributions payable | R$ 938880 | R$ 466603 | |
Current portion | (935,778) | (463,606) | |
Non-current portion | 3,102 | 2,997 | |
Imposto sobre circulacao de mercadorias servicos (ICMS) [member] | |||
Indirect taxes charges and contributions payable [line items] | |||
Indirect taxes, charges and contributions payable | 359,498 | 377,105 | |
Agencia nacional de telecomunicacoes ("ANATEL") taxes and fees [member] | |||
Indirect taxes charges and contributions payable [line items] | |||
Indirect taxes, charges and contributions payable | [1] | 509,087 | 22,009 |
Service tax ("ISS") [member] | |||
Indirect taxes charges and contributions payable [line items] | |||
Indirect taxes, charges and contributions payable | 66,082 | 61,673 | |
Other [member] | |||
Indirect taxes charges and contributions payable [line items] | |||
Indirect taxes, charges and contributions payable | R$ 4213 | R$ 5816 | |
[1] | Fistel fee for the financial year 2020 has been deferred from the start of its payment, on the basis of Provisional Act 952 of April 15, 2020. Until December 31, 2020, the fee was not paid based on an injunction issued by the Regional Court of the 1st Region. |
21. Direct taxes, charges and_3
21. Direct taxes, charges and contributions payable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Direct taxes charges and contributions payable [line items] | |||
Direct taxes, charges and contributions payable | R$ 508743 | R$ 508615 | |
Current portion | (296,299) | (296,305) | |
Non-current portion | 212,444 | 212,310 | |
Income tax (IR) and social contribution (CS) [member] | |||
Direct taxes charges and contributions payable [line items] | |||
Direct taxes, charges and contributions payable | 313,145 | 346,097 | |
PIS/COFINS [member] | |||
Direct taxes charges and contributions payable [line items] | |||
Direct taxes, charges and contributions payable | 154,353 | 130,327 | |
Other [member] | |||
Direct taxes charges and contributions payable [line items] | |||
Direct taxes, charges and contributions payable | [1] | R$ 41245 | R$ 32191 |
[1] | The breakdown of this account mainly refers to the company's adhesion to the Tax Recovery Program - REFIS from 2009 for payment of installments of the outstanding debts of federal taxes (PIS - Social Integration Program, COFINS - Contribution to Social Security Financing, IRPJ - Corporate Income Tax and CSLL - social contribution on Net Income), whose final maturity will be on October 31, 2024. |
22. Deferred revenues (Details)
22. Deferred revenues (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred revenue [line items] | |||
Deferred revenues | R$ 1021924 | R$ 1109112 | |
Current installment | (266,436) | (281,930) | |
Non-current installment | 755,488 | 827,182 | |
Services to be rendered - pre-paid [member] | |||
Deferred revenue [line items] | |||
Deferred revenues | [1] | 189,482 | 186,310 |
Government grants [member] | |||
Deferred revenue [line items] | |||
Deferred revenues | [2] | 24,732 | 42,159 |
Network swap [member] | |||
Deferred revenue [line items] | |||
Deferred revenues | [3] | 2,713 | |
Prepaid revenues [member] | |||
Deferred revenue [line items] | |||
Deferred revenues | 11,163 | 11,651 | |
Deferred revenue on sale of towers [member] | |||
Deferred revenue [line items] | |||
Deferred revenues | [4] | 788,921 | 843,017 |
Contractual liabilities [member] | |||
Deferred revenue [line items] | |||
Deferred revenues | [5] | R$ 7626 | R$ 23262 |
[1] | Referring to the recharge of voice credits and data not yet used by customers relating to prepaid system services that are appropriate to the result when the actual use of these services by clients. | ||
[2] | Referring to the release of resources related to the financing line with BNDES (Investment Support Program-BNDES PSI). The sum of grants granted by BNDES up to December 31, 2020 is R$ 203 million and the outstanding amount on December 31, 2020 is R$ 24,732 (R$ 42,159 on December 31, 2019). This amount is being amortized by the useful life of the asset being financed and appropriated in the group of ''other net revenues (expenses)'' (note 28). | ||
[3] | Mainly referring to contracts for the onerous and reciprocal transfer of optical fiber infrastructure. | ||
[4] | Referring to the amount of revenue to be appropriated by the sale of the towers (note 15). | ||
[5] | Contract with clients. The balance of contractual assets and liabilities is as follows: |
22. Deferred revenues (Details
22. Deferred revenues (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Revenues [Abstract] | ||
Accounts receivable included in trade accounts receivable | R$ 2000764 | R$ 3287855 |
Contractual assets (note 6) | 14,914 | 15,142 |
Contractual liability | R$ 7626 | R$ 23262 |
22. Deferred revenues (Detail_2
22. Deferred revenues (Details 2) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Deferred Revenues [Abstract] | |
Balance at January 1, 2020 | R$ 8120 |
Additions | (369) |
Write-offs | 15,777 |
Balance at December 31, 2020 | R$ 7288 |
22. Deferred revenues (Detail_3
22. Deferred revenues (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of changes in accounting estimates [line items] | ||
Contractual assets (liabilities) | R$ 7288 | R$ 8120 |
2021 [member] | ||
Disclosure of changes in accounting estimates [line items] | ||
Contractual assets (liabilities) | 8,611 | |
2022 [member] | ||
Disclosure of changes in accounting estimates [line items] | ||
Contractual assets (liabilities) | R$ 1323 |
22. Deferred revenues (Detail_4
22. Deferred revenues (Details Narrative) - Banco nacional de desenvolvimento economico e social [member] - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred revenue [line items] | ||
Subsidies granted | R$ 203000 | |
Subsidies granted outstanding | R$ 24732 | R$ 42159 |
23. Provision for legal and a_3
23. Provision for legal and administrative proceedings (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Provision for legal and administrative proceedings [line items] | |||
Provision for legal and administrative proceedings | R$ 886947 | R$ 840637 | R$ 849408 |
Civil [member] | |||
Provision for legal and administrative proceedings [line items] | |||
Provision for legal and administrative proceedings | 245,432 | 212,702 | 111,301 |
Provision for Labor and Social Security [member] | |||
Provision for legal and administrative proceedings [line items] | |||
Provision for legal and administrative proceedings | 213,026 | 261,837 | 435,438 |
Tax [member] | |||
Provision for legal and administrative proceedings [line items] | |||
Provision for legal and administrative proceedings | 399,288 | 333,717 | 271,214 |
Provision for regulatory [member] | |||
Provision for legal and administrative proceedings [line items] | |||
Provision for legal and administrative proceedings | R$ 29201 | R$ 32381 | R$ 31455 |
23. Provision for legal and a_4
23. Provision for legal and administrative proceedings (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Provision for legal and administrative proceedings [line items] | ||
Beginning balance | R$ 840637 | R$ 849408 |
Additions, net of reversals | 322,565 | 547,691 |
Payments | (413,634) | (715,203) |
Monetary adjustment | 137,379 | 158,741 |
Ending balance | 886,947 | 840,637 |
Civil [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Beginning balance | 212,702 | 111,301 |
Additions, net of reversals | 224,417 | 348,012 |
Payments | (266,872) | (335,640) |
Monetary adjustment | 75,185 | 89,028 |
Ending balance | 245,432 | 212,702 |
Provision for Labor and Social Security [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Beginning balance | 261,837 | 435,438 |
Additions, net of reversals | 55,727 | 96,235 |
Payments | (138,899) | (301,971) |
Monetary adjustment | 34,361 | 32,136 |
Ending balance | 213,026 | 261,837 |
Tax [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Beginning balance | 333,717 | 271,214 |
Additions, net of reversals | 45,659 | 103,354 |
Payments | (7,792) | (77,341) |
Monetary adjustment | 27,704 | 36,490 |
Ending balance | 399,288 | 333,717 |
Provision for regulatory [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Beginning balance | 32,381 | 31,455 |
Additions, net of reversals | (3,238) | 90 |
Payments | (71) | (251) |
Monetary adjustment | 129 | 1,087 |
Ending balance | R$ 29201 | R$ 32381 |
23. Provision for legal and a_5
23. Provision for legal and administrative proceedings (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Provision for legal and administrative proceedings [line items] | |||
Tax process | R$ 886947 | R$ 840637 | R$ 849408 |
Tax [member] | |||
Provision for legal and administrative proceedings [line items] | |||
Tax process | 399,288 | 333,717 | R$ 271214 |
Tax [member] | Federal taxes [member] | |||
Provision for legal and administrative proceedings [line items] | |||
Tax process | 182,147 | 155,495 | |
Tax [member] | State taxes [member] | |||
Provision for legal and administrative proceedings [line items] | |||
Tax process | 135,891 | 93,790 | |
Tax [member] | Municipal taxes [member] | |||
Provision for legal and administrative proceedings [line items] | |||
Tax process | 5,633 | 8,227 | |
Tax [member] | Tim S.A. Proceedings (purchase price allocation) [member] | |||
Provision for legal and administrative proceedings [line items] | |||
Tax process | R$ 75617 | R$ 76205 |
23. Provision for legal and a_6
23. Provision for legal and administrative proceedings (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Provision for legal and administrative proceedings [line items] | ||
Estimated financial effect of contingent liabilities | R$ 18147562 | R$ 18395727 |
Civil [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Estimated financial effect of contingent liabilities | 1,101,332 | 1,032,637 |
Provision for Labor and Social Security [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Estimated financial effect of contingent liabilities | 340,801 | 459,020 |
Tax [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Estimated financial effect of contingent liabilities | 16,586,353 | 16,196,077 |
Provision for regulatory [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Estimated financial effect of contingent liabilities | R$ 119076 | R$ 707993 |
23. Provision for legal and a_7
23. Provision for legal and administrative proceedings (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Provision for legal and administrative proceedings [line items] | ||
Total | R$ 18147562 | R$ 18395727 |
Civil [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Total | 1,101,332 | 1,032,637 |
Civil [member] | Consumer lawsuits [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Total | 220,347 | 374,860 |
Civil [member] | ANATEL [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Total | 223,066 | 220,526 |
Civil [member] | Consumer Protection Agencies [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Total | 160,279 | 32,847 |
Civil [member] | Former Trade Partners [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Total | 193,529 | 180,226 |
Civil [member] | Social And Environmental, And Infrastructure [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Total | 154,187 | 125,201 |
Civil [member] | Other [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Total | R$ 149924 | R$ 98977 |
23. Provision for legal and a_8
23. Provision for legal and administrative proceedings (Details 5) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Provision for legal and administrative proceedings [line items] | ||
Total | R$ 18147562 | R$ 18395727 |
Tax [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Total | 16,586,353 | 16,196,077 |
Tax [member] | FUST, FUNTTEL and EBC [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Total | 3,014,976 | 2,991,567 |
Tax [member] | Federal taxes [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Total | 4,268,212 | 4,279,570 |
Tax [member] | State taxes [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Total | 8,562,352 | 8,221,808 |
Tax [member] | Municipal taxes [member] | ||
Provision for legal and administrative proceedings [line items] | ||
Total | R$ 740813 | R$ 703132 |
23. Provision for legal and a_9
23. Provision for legal and administrative proceedings (Details Narrative) R$ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020BRL (R$) | Aug. 22, 2019BRL (R$) | Dec. 31, 2020BRL (R$)Number | Dec. 31, 2019BRL (R$)Number | Jun. 30, 2020BRL (R$) | Dec. 31, 2018BRL (R$) | |
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | R$ 18147562 | R$ 18147562 | R$ 18395727 | |||
Provision amounts | 886,947 | R$ 886947 | 840,637 | R$ 849408 | ||
Payment of social security contributions | 15,000 | |||||
ANATEL [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Percentage of revenue | 2.00% | |||||
Civil Proceedings - ANATEL [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 1,364 | R$ 1364 | 1,342 | |||
Percentage of revenue | 2.00% | |||||
Civil Proceedings - Social, Environmental And Infrastructure [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 610 | R$ 610 | 498 | |||
Civil Proceedings - Others [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 33,682 | 33,682 | 27,039 | |||
Civil Proceedings - Former Trade Partners [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 18,634 | 18,634 | 12,812 | |||
Civil Proceedings - PROCON [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 51,713 | R$ 51713 | R$ 31221 | |||
Labor Proceedings - Former Employees [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Number of labour claims | Number | 1,873 | 2,408 | ||||
Labor Claims - Former Employees [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Number of labour claims | Number | 3,038 | 3,976 | ||||
Estimated financial effect of contingent liabilities | 317,971 | R$ 317971 | R$ 459020 | |||
Federal Taxes [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 4,279,570 | |||||
Provision amounts | 8,355 | 8,355 | 9,560 | R$ 5313 | ||
Assessed against amount | 4,268,212 | 4,268,212 | ||||
FUST, FUNTTEL & EBC [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Provision amounts | 14,564 | 14,564 | 14,564 | |||
Tax Claim Federal Taxes - Improper Use of SUDENE Benefits [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 2,715,670 | 2,715,670 | 2,672,754 | |||
Labor Claims - Closure of the Client Relationship Centers [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 139,429 | 139,429 | 14,349 | |||
Tax Claim Federal Taxes - Method of Offsetting Tax Losses & Negative Bases [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 193,181 | 193,181 | 203,302 | |||
Tax Claim Federal Taxes - Collection of CSLL [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 67,572 | 67,572 | 66,164 | |||
Tax Claim Federal Taxes - Overseas Remittances [member] | TIM Celular S.A. ("TIM Celular") [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 259,088 | 259,088 | 256,833 | |||
Municipal Taxes [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 740,813 | 740,813 | 703,132 | |||
State Taxes [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 8,562,352 | 8,562,352 | 8,221,808 | |||
Provision amounts | 15,751 | 15,751 | 15,460 | |||
Provision of telecommunication services | 36,491 | 23,558 | ||||
Employee benefits | 492,935 | 887,637 | ||||
Discount offered | 1,128,741 | 1,128,741 | 1,053,411 | |||
Gratuitous loan | 11,125 | 10,826 | ||||
Subsidies for the handset | 8,767 | 8,644 | ||||
CIAP credits | 14,912 | |||||
Partial favorable outcome | 254,000 | 254,000 | ||||
Acquisition of electricity | 134,494 | 131,057 | ||||
Tax Contingent Liability [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 399,691 | 399,691 | 427,233 | |||
Tax Claim State Taxes - Credit Reversal & Late Use of Credit for Purchase of Fixed Assets [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 608,316 | 608,316 | 731,864 | |||
Tax Claim State Taxes - ICMS Credits Booked & Debits Reversed [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 3,356,501 | 3,356,501 | 3,284,473 | |||
Tax Claim State Taxes - Penalty Claimed on Errors or Inconsistencies on Ancillary Obligations [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 698,673 | 698,673 | 138,684 | |||
Nominal amount | 362 | 362 | 183 | |||
Tax Claim State Taxes - Undue ICMS Credit [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 249,271 | 249,271 | 198,505 | |||
Regulatory Contingent Liability [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 119,076 | 119,076 | 707,993 | |||
Tax Claim State Taxes - Credits booked For The Return Of Cell Phones On Free Leases [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 197,521 | 197,521 | 180,920 | |||
Tax Claim Municipal Taxes - Payment of ISS & Punitive Fine For Failure To Pay Alleged Tax [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 150,023 | 150,023 | 147,572 | |||
Tax Claim Municipal Taxes - Collection Of ISS On Imports Of Services [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 385,536 | 385,536 | 300,669 | |||
Tax Claim State Taxes - Collection of ICMS Tax on Subscription Services [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 260,447 | 260,447 | 249,659 | |||
Tax Claim Municipal Taxes - Constitutionality of the Collection of the TFF By Municipal Authorities in Several Locations [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 126,159 | 126,159 | 120,503 | |||
Tax Claim FUST and FUNTTEL [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 3,014,976 | 3,014,976 | 2,991,567 | |||
Tax Claim Regulatory Issues [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Estimated financial effect of contingent liabilities | 213,026 | 213,026 | 252,968 | |||
Municipal Taxes [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Cancellation of telecommunications | 29,201 | 32,381 | ||||
Social Security [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Payment of social security contributions | 9,487 | 22,587 | ||||
Tax adjustment amount | 11,976,959 | 11,549,274 | ||||
Unadjusted bonuses, hiring bonuses and incentives | 22,829 | 38,382 | ||||
Social Security Contribution [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Provision amounts | 38,584 | R$ 38584 | 37,977 | |||
Percentage of provision | 11.00% | |||||
The National Telecommunications Agency [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Provision amounts | R$ 58988 | R$ 58988 | R$ 58116 | |||
Board Of Directors [member] | ANATEL [member] | ||||||
Provision for legal and administrative proceedings [line items] | ||||||
Nominal amount | R$ 627000 | |||||
Description of additional commitment | Additional commitment to bring mobile broadband through the 4G network to 366 municipalities with less than 30,000 inhabitants reaching over 3.4 million people. | |||||
Description of infrastruce implemented | The new infrastructure will be implemented in three years - more than 80% in the first two years -with the sharing regime with the other providers being guaranteed by the Company. |
24. Shareholders' equity (Detai
24. Shareholders' equity (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Shareholders' equity | ||
Capital reserves | R$ 397183 | R$ 410650 |
Goodwill special reserve | 353,604 | 380,560 |
Call options for shares | R$ 43579 | R$ 30090 |
24. Shareholders' equity (Det_2
24. Shareholders' equity (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shareholders' equity | |||
Net income for the year | R$ 1828254 | R$ 3622127 | R$ 2545101 |
Net income | 1,828,254 | 3,622,127 | 2,545,101 |
(-) Non-distributable tax incentives | (169,540) | (194,161) | |
(-) Constitution of legal reserve | (83,707) | (171,398) | |
Adjusted profit | 1,575,007 | 3,256,568 | |
Minimum dividends calculated on the basis of 25% of adjusted profit | 397,752 | 814,142 | |
Breakdown of dividends payable and interest on shareholders' equity: | |||
Interest on shareholders' equity | 1,083,000 | 995,438 | R$ 849994 |
Total dividends and interest on shareholders' equity distributed and proposed | 1,083,000 | 995,438 | |
Withholding income tax (IRRF) on interest on shareholders' equity | (162,450) | (149,316) | |
Total dividends and interest shareholders' equity, after withholding income taxes | R$ 920550 | R$ 846122 |
24. Shareholders' equity (Det_3
24. Shareholders' equity (Details Narrative) - BRL (R$) R$ in Thousands | Jul. 02, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 30, 2020 | Dec. 30, 2009 |
Number of shares authorised | 42,296,789,606 | 4,450,000,000 | 4,450,000,000 | |||
Number of share issued | 2,420,804,398 | 2,421,032,479 | ||||
Capital reserves | R$ 397183 | R$ 410650 | ||||
Mandatory dividend percentage | 25.00% | |||||
Unpaid return on equity | R$ 495550 | |||||
Accumulated amount of benefits | 1,781,560 | 1,612,019 | ||||
Interest paid | (72,643) | R$ 96649 | R$ 193333 | |||
Reverse split ratio | 100 shares to form 1 common share | |||||
Interest on shareholders' equity approved | 1,083,000 | |||||
Interest on shareholders' total paid | R$ 1153054 | |||||
Description of legal reserve percentage | It refers to the allocation of 5% of the net income for the year ended December 31 of each year, until the Reserve equals 20% of the capital, excluding from 2018 the balance allocated to the reserve of tax incentives. In addition, the company may cease to constitute the legal reserve when this, added to the capital reserves, exceeds 30% of the capital. | |||||
Description of Interest on shareholders' total paid | The total amount of interest on shareholders’ equity approved was R$ 1,083,000 and the total paid was R$ 1,153,054 (R$ 500 million referring to the year 2020 and R$ 653 million referring to the year 2019. The amount of R$ 583 million, referring to the last tranche, of 2020, will be paid until January 22, 2021. | |||||
Holdco [member] | ||||||
Number of share issued | 127,288,023 | |||||
Acquisition amount | R$ 739729 | |||||
Book value under former BR GAAP | 516,725 | |||||
Goodwill | R$ 223004 | |||||
Proportion of ownership interests | 100.00% | |||||
TIM Sul and TIM NE [member] | ||||||
Goodwill | R$ 157556 |
25. Long-term incentive plan (D
25. Long-term incentive plan (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
LongtermIncentivePlanLineItems [Line Items] | |
Share options granted | R$ 2576648 |
Balance at the beginning of the period | 930,474 |
Granted in the period | 796,054 |
Exercised in the period | (305,062) |
Exercised during the year | (308,578) |
Falling due in the period | |
Balance at the end of the period | R$ 316834 |
Excercise Price R$8.10 [member] | |
LongtermIncentivePlanLineItems [Line Items] | |
Date of grant | Plan 2014-2016 - 3rd Grant |
Share options granted | R$ 3922204 |
Maturity date | Nov 2022 |
Balance at the beginning of the period | R$ 419340 |
Granted in the period | |
Exercised in the period | (124,277) |
Exercised during the year | |
Falling due in the period | |
Balance at the end of the period | R$ 295063 |
Excercise Price R$8.45 [member] | |
LongtermIncentivePlanLineItems [Line Items] | |
Date of grant | Plan 2014-2016 - 2nd Grant |
Share options granted | R$ 3355229 |
Maturity date | Oct 2021 |
Balance at the beginning of the period | R$ 132848 |
Granted in the period | |
Exercised in the period | (111,077) |
Exercised during the year | |
Falling due in the period | |
Balance at the end of the period | R$ 21771 |
Excercise Price R$13.42 [member] | |
LongtermIncentivePlanLineItems [Line Items] | |
Date of grant | Plan 2014-2016-1st Grant |
Share options granted | R$ 1687686 |
Maturity date | Sep 2020 |
Balance at the beginning of the period | R$ 378286 |
Granted in the period | |
Exercised in the period | (69,708) |
Exercised during the year | (308,578) |
Falling due in the period | |
Balance at the end of the period | |
Excercise Price R$8.13 [member] | |
LongtermIncentivePlanLineItems [Line Items] | |
Date of grant | Plan 2011-2013 - 3rd Grant |
Share options granted | R$ 3072418 |
Maturity date | July 2019 |
Balance at the beginning of the period | |
Granted in the period | |
Balance at the end of the period | |
Excercise Price R$8.96 [member] | |
LongtermIncentivePlanLineItems [Line Items] | |
Date of grant | Plan 2011-2013 - 2nd Grant |
Share options granted | R$ 2661752 |
Maturity date | Sep 2018 |
Balance at the beginning of the period | |
Granted in the period | |
Balance at the end of the period | |
Excercise Price R$8.84 [member] | |
LongtermIncentivePlanLineItems [Line Items] | |
Date of grant | Plan 2011-2013-1st Grant |
Share options granted | R$ 2833595 |
Maturity date | Aug 2017 |
Balance at the beginning of the period | |
Granted in the period | |
Balance at the end of the period |
25. Long-term incentive plan _2
25. Long-term incentive plan (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$)shares | |
LongtermIncentivePlanLineItems [Line Items] | |
Share options granted | R$ | R$ 2576648 |
Balance at the beginning of the period | 1,182,934 |
Granted in the period | R$ | R$ 796054 |
Transferred during the year, volume vested | (292,530) |
Transferred during the year, performance change | (83,602) |
Transferred during the year, additional dividends | (21,191) |
Paid in cash, volume vested | (2,915) |
Paid in cash, performance change | (5) |
Paid in cash, additional dividends | (164) |
Canceled during the year | |
Balance at the end of the period | 1,683,543 |
Excercise Price R$14.10 [member] | |
LongtermIncentivePlanLineItems [Line Items] | |
Date of grant | 2018-2020 Plan 3rd Grant |
Share options granted | R$ | R$ 796054 |
Maturity date | Apr 2023 |
Balance at the beginning of the period | |
Granted in the period | R$ | R$ 796054 |
Transferred during the year, volume vested | |
Transferred during the year, performance change | |
Transferred during the year, additional dividends | |
Paid in cash, volume vested | |
Paid in cash, performance change | |
Paid in cash, additional dividends | |
Canceled during the year | |
Balance at the end of the period | 796,054 |
Excercise Price R$11.28 [member] | |
LongtermIncentivePlanLineItems [Line Items] | |
Date of grant | 2018-2020 Plan 2nd Grant |
Share options granted | R$ | R$ 930662 |
Maturity date | July 2022 |
Balance at the beginning of the period | 897,244 |
Granted in the period | R$ | |
Transferred during the year, volume vested | (209,349) |
Transferred during the year, performance change | (83,672) |
Transferred during the year, additional dividends | (16,536) |
Paid in cash, volume vested | |
Paid in cash, performance change | |
Paid in cash, additional dividends | |
Canceled during the year | |
Balance at the end of the period | 687,895 |
Excercise Price R$14.41 [member] | |
LongtermIncentivePlanLineItems [Line Items] | |
Date of grant | 2018-2020 Plan 1st Grant |
Share options granted | R$ | R$ 849932 |
Maturity date | Apr 2021 |
Balance at the beginning of the period | 285,690 |
Granted in the period | R$ | |
Transferred during the year, volume vested | (83,181) |
Transferred during the year, performance change | 70 |
Transferred during the year, additional dividends | (4,655) |
Paid in cash, volume vested | (2,915) |
Paid in cash, performance change | (5) |
Paid in cash, additional dividends | (164) |
Canceled during the year | |
Balance at the end of the period | 199,594 |
25. Long-term incentive plan _3
25. Long-term incentive plan (Details 2) | 12 Months Ended |
Dec. 31, 2020 | |
Excercise Price R$8.84 [member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Date of grant | Plan 2011-2013-1st Grant |
Volatility | 51.73% |
Expected useful life of the option | 6 years |
Annual interest rate without risk | 11.94% |
Excercise Price R$8.96 [member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Date of grant | Plan 2011-2013 - 2nd Grant |
Volatility | 50.46% |
Expected useful life of the option | 6 years |
Annual interest rate without risk | 8.89% |
Excercise Price R$8.13 [member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Date of grant | Plan 2011-2013 - 3rd Grant |
Volatility | 48.45% |
Expected useful life of the option | 6 years |
Annual interest rate without risk | 10.66% |
Excercise Price R$13.42 [member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Date of grant | Plan 2014-2016-1st Grant |
Volatility | 44.60% |
Expected useful life of the option | 6 years |
Annual interest rate without risk | 10.66% |
Excercise Price R$8.45 [member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Date of grant | Plan 2014-2016 - 2nd Grant |
Volatility | 35.50% |
Expected useful life of the option | 6 years |
Annual interest rate without risk | 16.10% |
Excercise Price R$8.10 [member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Date of grant | Plan 2014-2016 - 3rd Grant |
Volatility | 36.70% |
Expected useful life of the option | 6 years |
Annual interest rate without risk | 11.73% |
26. Revenue (Details)
26. Revenue (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue [abstract] | |||
Revenue | R$ 17267812 | R$ 17377194 | R$ 16981329 |
Gross revenue | 24,346,101 | 25,182,831 | 24,232,404 |
Revenue from services | 23,279,423 | 23,820,343 | 23,065,648 |
Revenue from services - Mobile | 21,522,135 | 22,145,033 | 21,531,779 |
Revenue from services - Fixed telephony | 1,757,288 | 1,675,310 | 1,533,869 |
Sale of goods | 1,066,678 | 1,362,488 | 1,166,756 |
Deductions from gross revenue | (7,078,289) | (7,805,637) | (7,251,075) |
Taxes | (4,534,582) | (4,939,980) | (5,163,797) |
Discounts granted | (2,531,920) | (2,843,670) | (2,073,892) |
Returns and other | R$ 11787 | R$ 21987 | R$ 13386 |
26. Revenue (Details Narrative)
26. Revenue (Details Narrative) R$ in Thousands | 1 Months Ended |
Dec. 31, 2020BRL (R$) | |
Net Operating Revenue Details Narrative Abstract | |
Revenue from services | R$ 15000 |
27. Operating costs and expen_3
27. Operating costs and expenses (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating costs and expenses [line items] | |||
Cost of services provided and products sold | R$ 7996615 | R$ 7433731 | R$ 7701418 |
Marketing expenses | (4,443,027) | (4,986,289) | (4,970,780) |
General and administrative expenses | (1,673,290) | (1,717,859) | (1,608,319) |
Total | (6,468,171) | (5,428,606) | (6,862,388) |
Personnel [member] | |||
Operating costs and expenses [line items] | |||
Cost of services provided and products sold | (58,024) | (53,392) | (36,514) |
Marketing expenses | (632,231) | (624,353) | (637,177) |
General and administrative expenses | (321,967) | (392,984) | (357,878) |
Total | (1,012,222) | (1,070,729) | (1,031,569) |
Outsourced / Third-Party Services [member] | |||
Operating costs and expenses [line items] | |||
Cost of services provided and products sold | (587,835) | (569,242) | (518,762) |
Marketing expenses | (1,743,644) | (2,041,646) | (2,169,624) |
General and administrative expenses | (538,584) | (512,643) | (451,990) |
Total | (2,870,063) | (3,123,531) | (3,140,376) |
Interconnection And Means Of Connection [member] | |||
Operating costs and expenses [line items] | |||
Cost of services provided and products sold | (1,672,655) | (1,419,464) | (2,513,176) |
Marketing expenses | |||
General and administrative expenses | |||
Total | (1,672,655) | (1,419,464) | (2,513,176) |
Depreciation And Amortization [member] | |||
Operating costs and expenses [line items] | |||
Cost of services provided and products sold | (4,569,064) | (4,132,223) | (3,119,954) |
Marketing expenses | (247,666) | (256,898) | (162,804) |
General and administrative expenses | (710,282) | (739,860) | (671,562) |
Total | (5,527,012) | (5,128,981) | (3,954,320) |
Taxes, Fees And Contributions [member] | |||
Operating costs and expenses [line items] | |||
Cost of services provided and products sold | (28,675) | (32,120) | (31,754) |
Marketing expenses | (761,152) | (817,369) | (866,197) |
General and administrative expenses | (23,809) | (18,846) | (18,333) |
Total | (813,636) | (868,335) | (916,284) |
Rent And Insurance [member] | |||
Operating costs and expenses [line items] | |||
Cost of services provided and products sold | (316,650) | (291,302) | (591,226) |
Marketing expenses | (107,550) | (121,795) | (146,877) |
General and administrative expenses | (15,753) | (20,590) | (67,387) |
Total | (439,953) | (433,687) | (805,490) |
Cost Of Goods Sold [member] | |||
Operating costs and expenses [line items] | |||
Cost of services provided and products sold | (756,060) | (931,818) | (883,912) |
Marketing expenses | |||
General and administrative expenses | |||
Total | (756,060) | (931,818) | (883,912) |
Publicity And Advertising [member] | |||
Operating costs and expenses [line items] | |||
Cost of services provided and products sold | |||
Marketing expenses | (377,184) | (355,234) | (421,588) |
General and administrative expenses | |||
Total | (377,184) | (355,234) | (421,588) |
Losses On Doubtful Accounts [member] | |||
Operating costs and expenses [line items] | |||
Cost of services provided and products sold | |||
Marketing expenses | (552,817) | (748,291) | (544,881) |
General and administrative expenses | |||
Total | (552,817) | (748,291) | (544,881) |
Others [member] | |||
Operating costs and expenses [line items] | |||
Cost of services provided and products sold | (7,652) | (4,170) | (6,120) |
Marketing expenses | (20,783) | (20,703) | (21,632) |
General and administrative expenses | (62,895) | (32,936) | (41,169) |
Total | R$ 91330 | R$ 57809 | R$ 68921 |
28. Other income (expenses) (De
28. Other income (expenses) (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income | ||||
Income from grant, net | R$ 17427 | R$ 21572 | R$ 25305 | |
Telecommunication service fines | 37,490 | 50,499 | 44,411 | |
Income on disposal of assets | 5,375 | 2,214 | 1,708 | |
PIS/COFINS credits (i) | [1] | 1,795,000 | ||
Other income | 68,651 | 83,558 | 282,041 | |
Operating income | 128,943 | 1,952,843 | 353,465 | |
Expenses | ||||
FUST/FUNTTEL (ii) | [2] | (133,378) | (137,169) | (143,167) |
Taxes, fees and contributions | (10,316) | (4,024) | (4,092) | |
Provision for legal and administrative proceedings, net of reversal | (290,789) | (466,460) | (452,463) | |
Expenses on disposal of assets | (13,538) | (7,055) | (4,424) | |
Other expenses | (32,776) | (62,593) | (32,608) | |
Operating expense | (480,797) | (677,301) | (636,754) | |
Other income (expenses) | R$ 351854 | R$ 1275542 | R$ 283289 | |
[1] | The change refers to the update of claims arising from judicial proceedings with a final decision passed in favor of the company in higher courts, in 2019, which discussed the exclusion of ICMS from calculation basis of PIS and COFINS contributions. The amount of R$ 1,795 million was recorded under Other revenues in June and September 2019 (note 9). | |||
[2] | Representing the expenses incurred with contributions on the various telecommunications revenues due to ANATEL, according to current legislation. |
28. Other income (expenses) (_2
28. Other income (expenses) (Details Narrative) R$ in Thousands | 1 Months Ended |
Jun. 30, 2020BRL (R$) | |
Other Income (Expenses), Net [Abstract] | |
Other revenue | R$ 1795 |
29. Financial income (Details)
29. Financial income (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Financial revenues | ||||
Interest on interest earning bank deposits | R$ 82512 | R$ 88224 | R$ 119548 | |
Interest of clients | 28,686 | 37,233 | 36,793 | |
Swap interest | 32,955 | 15,536 | 17,001 | |
Interest on lease | 19,924 | 20,528 | 25,664 | |
Inflation adjustment | [1] | 116,441 | 1,263,793 | 207,191 |
Other derivatives | [2] | 155,165 | ||
Other income | 2,915 | 4,857 | 6,536 | |
Financial revenues, net | R$ 438598 | R$ 1430171 | R$ 412733 | |
[1] | In 2019, it includes the amounts of R$1,228 million of updating claims arising from judicial proceedings on the exclusion of ICMS from the calculation base of PIS and COFINS (note 9). | |||
[2] | The mark-to-market value of these derivatives includes a gain of R$ 155 million referring to the company's call option to exercise ordinary shares of C6 Bank which it has been obtained through an operating partnership with Banco C6 initiated in the year of 2020. The difference between the mark-to-market value of the call option and the cost to subscribe the shares within the bank was measured based on information available in the last equity issuance of the bank and disclosed in the market. The disclosures of this derivative financial instrument are detailed in note 36. |
30. Financial expenses (Details
30. Financial expenses (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Financial expenses | ||||
Interest on loans and financing | R$ 70400 | R$ 116735 | R$ 96682 | |
Interest on taxes and fees | (43,616) | (28,396) | (15,409) | |
Swap interest | (45,970) | (24,604) | (32,424) | |
Interest on lease | (766,263) | (821,463) | (266,328) | |
Inflation adjustment | [1] | (161,892) | (191,309) | (340,175) |
Discounts granted | (33,725) | (36,047) | (38,858) | |
Other expenses | (120,389) | (189,499) | (161,563) | |
Financial expenses, net | R$ 1242255 | R$ 1408053 | R$ 951439 | |
[1] | Substantial part related to inflation adjustment on provision for legal and administrative proceedings (R$ 137,379 in 2020 - note 23). |
30. Financial expenses (Detai_2
30. Financial expenses (Details Narrative) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Financial Expenses | |
Substantial part related to inflation adjustment | R$ 137379 |
31. Foreign exchange variatio_3
31. Foreign exchange variations (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Foreign exchange variations net [line items] | ||||
Income | R$ 364148 | R$ 88192 | R$ 97530 | |
Expenses | (371,113) | (89,100) | (96,157) | |
Foreign exchange variations | (6,965) | (908) | 1,373 | |
Loans and financing [member] | ||||
Foreign exchange variations net [line items] | ||||
Income | 22,494 | 1,409 | ||
Expenses | (305,010) | (40,715) | (75,298) | |
Suppliers [member] | ||||
Foreign exchange variations net [line items] | ||||
Income | 15,981 | 9,004 | 6,844 | |
Expenses | (46,112) | (13,201) | (11,925) | |
Swaps [member] | ||||
Foreign exchange variations net [line items] | ||||
Income | [1] | 305,012 | 40,742 | 75,340 |
Expenses | (22,493) | (1,409) | ||
Other [member] | ||||
Foreign exchange variations net [line items] | ||||
Income | 43,155 | 15,952 | 13,937 | |
Expenses | R$ 19991 | R$ 12691 | R$ 7525 | |
[1] | Referring to derivative financial instruments to mitigate risks of foreign exchange variations related to foreign currency debts (note 36). |
32. Income tax and social con_3
32. Income tax and social contribution (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income tax and social contribution - current | ||||
Income tax for the year | R$ 684099 | R$ 155521 | R$ 253120 | |
Social contribution for the year | (232,671) | (58,905) | (92,502) | |
Tax incentive - SUDENE/SUDAM | [1] | 164,442 | 156,594 | 146,454 |
Current income tax | (752,328) | (57,832) | (199,168) | |
Deferred income tax and social contribution | ||||
Deferred income tax | 453,127 | (625,516) | 651,632 | |
Deferred social contribution | 144,722 | (225,186) | 217,501 | |
Deferred income tax | 597,849 | (850,702) | 869,133 | |
Provision for contingencies of income tax and social contribution | (9,671) | (5,406) | (5,054) | |
Deferred income tax, net of tax | 588,178 | (856,108) | 864,079 | |
Income tax and social contribution | R$ 164150 | R$ 913940 | R$ 664911 | |
[1] | As mentioned in note 24 c.3, in order for investment grants not to be computed in taxable income, they must be recorded as a tax incentive reserve, which can only be used to absorb losses or be incorporated into the capital. TIM S.A. has tax benefits that fall under these rules. |
32. Income tax and social con_4
32. Income tax and social contribution (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Tax And Social Contribution [Abstract] | ||||
Income before income tax and social contribution | R$ 1992404 | R$ 4536067 | R$ 1880190 | |
Combined statutory rate | 34.00% | 34.00% | 34.00% | |
Income tax and social contribution at the combined statutory rates | R$ 677417 | R$ 1542263 | R$ 639265 | |
Permanent additions, exclusions: | ||||
Nondeductible expenses for tax purposes | (30,959) | (18,783) | 920,745 | |
Tax incentive SUDENE/SUDAM | [1] | 164,442 | 194,161 | 146,454 |
Tax benefit related to interest on shareholders' equity allocated | 368,220 | 338,449 | 288,998 | |
Other amounts | 11,564 | 114,495 | (52,021) | |
Income before income tax | 513,267 | 628,322 | 1,304,176 | |
Income tax and social contribution recorded in the income (loss) for the year | R$ 164150 | R$ 913940 | R$ 664911 | |
Effective rate | 8.24% | 20.15% | (35.36%) | |
[1] | As mentioned in note 24 c.3, in order for investment grants not to be computed in taxable income, they must be recorded as a tax incentive reserve, which can only be used to absorb losses or be incorporated into the capital. TIM S.A. has tax benefits that fall under these rules. |
33. Earnings per share (Details
33. Earnings per share (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic | |||
Profit attributable to shareholders of the Company | R$ 1828254 | R$ 3622127 | R$ 2545101 |
Weighted average number of shares issued (thousands) | 2,420,804 | 2,420,481 | 2,420,172 |
Basic earnings per share (in R$) (in R$ per share) | R$ 0.76 | R$ 1.50 | R$ 1.05 |
Diluted | |||
Profit attributable to shareholders of the Company | R$ 1828254 | R$ 3622127 | R$ 2545101 |
Weighted average number of shares issued (thousands) | 2,421,065 | 2,421,018 | 2,421,075 |
Diluted earnings per share (in R$ ) (in R$ per share) | R$ 0.76 | R$ 1.50 | R$ 1.05 |
33. Earnings per share (Detai_2
33. Earnings per share (Details Narrative) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share [line items] | |||
Diluted weighted average number of shares | 2,421,065 | 2,421,018 | 2,421,075 |
Number of shares as result of corporate reorganization | 2,420,447,019 | ||
Plan 2011-2013 and Plan 2014-2016 [Member] | |||
Earnings per share [line items] | |||
Diluted weighted average number of shares | 261 | 537 | 903 |
34. Balances and transactions_3
34. Balances and transactions with related parties (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Disclosure of transactions between related parties [line items] | ||||||
Total assets | R$ 10718 | R$ 10420 | ||||
Total liabilities | 127,386 | 111,823 | ||||
Total revenue | 8,250 | 8,198 | R$ 7571 | |||
Total costs/expenses | 389,012 | 421,219 | 422,325 | |||
Telecom Italia S.p.A. [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Total liabilities | [1] | 75,317 | 80,825 | |||
Total revenue | 1,197 | [1] | 775 | [1] | 858 | |
Total costs/expenses | 110,407 | [1] | 93,188 | [1] | 62,976 | |
Telecom Italia Sparkle [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Total assets | [2] | 1,630 | 1,949 | |||
Total liabilities | [2] | 10,576 | 6,531 | |||
Total revenue | 2,994 | [2] | 5,371 | [2] | 5,809 | |
Total costs/expenses | 27,485 | [2] | 24,914 | [2] | 30,123 | |
TI Sparkle [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Total assets | [3] | 1,915 | 2,007 | |||
Total liabilities | [3] | 7,333 | 3,731 | |||
Total revenue | 4,059 | [3] | 2,052 | [3] | 904 | |
Total costs/expenses | 19,923 | [3] | 18,700 | [3] | 18,035 | |
TIM Brasil [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Total assets | 6,129 | 5,429 | ||||
Total liabilities | 6,145 | [4] | 6,056 | |||
Vivendi Group [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Total liabilities | 1,150 | [5] | 1,164 | |||
Total costs/expenses | 1,207 | [5] | 1,386 | 9,439 | ||
Gruppo Havas [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Total liabilities | 24,068 | 11,049 | [3] | |||
Total costs/expenses | 207,682 | [3] | 264,318 | 301,752 | ||
Other [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Total assets | 1,044 | 1,035 | ||||
Total liabilities | 2,797 | 2,467 | ||||
Total costs/expenses | R$ 22308 | R$ 18713 | ||||
[1] | Amounts refer to international roaming, technical assistance and Value-Added Services-VAS. On May 17, 2018, TIM Participacoes (incorporated by TIM S.A) and Telecom Italia signed a trademark license agreement formally granting TIM Participacoes and the company the right to use the "TIM" trademark by paying royalties in the amount of 0.5% of the company's net revenue. Payment is made quarterly | |||||
[2] | Amounts refer to roaming, Value-Added Services VAS, transfer of means and international voice-wholesale. | |||||
[3] | From the values described above, in the result, they refer to advertising services, of which, R$ 195,117 (R$ 172,956 on December 31, 2019), are related to media transfers. The Company has social investment actions that include donations, projects developed by the Tim Institute and sponsorships. On December 31, 2020, the Company invested R$ 4,829 (R$ 4,207 on December 31, 2019) using own funds in social benefit. | |||||
[4] | Mainly referring to contracts for the onerous and reciprocal transfer of optical fiber infrastructure. | |||||
[5] | The values refer to Value Added Services-VAS. |
34. Balances and transactions_4
34. Balances and transactions with related parties (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | ||
Social benefits | R$ 4829 | R$ 4207 |
Advertising services | R$ 195117 | R$ 172956 |
35. Management remuneration (De
35. Management remuneration (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Management Remuneration [Abstract] | ||||
Short-term benefits | R$ 23949 | R$ 22524 | R$ 23556 | |
Other long-term benefits | [1] | 4,544 | 900 | 3,351 |
Share-based payments | 6,343 | 5,379 | 10,230 | |
Total compensation | R$ 34836 | R$ 28803 | R$ 37137 | |
[1] | The variation occurred manly due to the number of eligible employees. |
36. Financial instruments and_3
36. Financial instruments and risk management (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Derivatives financial instruments | R$ 340660 | R$ 46511 |
Other derivatives | 161,429 | |
Derivatives | 502,089 | 46,511 |
Current installment | 262,666 | 16,602 |
Derivative financial instruments | 239,423 | 29,909 |
Liabilities | ||
Derivatives financial instruments | (36,166) | (4,405) |
Other derivatives | ||
Derivatives | (36,166) | (4,405) |
Current installment | (7,273) | (858) |
Non-current installment | R$ 28893 | R$ 3547 |
36. Financial instruments and_4
36. Financial instruments and risk management (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments and risk management [line items] | ||
Derivative financial instruments | R$ 239423 | R$ 29909 |
Liabilities | (28,893) | R$ 3547 |
2022 [member] | ||
Financial instruments and risk management [line items] | ||
Derivative financial instruments | 13,587 | |
Liabilities | ||
2024 Onwards [member] | ||
Financial instruments and risk management [line items] | ||
Derivative financial instruments | 198,663 | |
Liabilities |
36. Financial instruments and_5
36. Financial instruments and risk management (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of fair value measurement of assets [line items] | ||
Total assets | R$ 2579588 | R$ 704839 |
Financial assets at fair value | 2,579,588 | 704,839 |
Derivative financial instruments | 340,660 | 46,511 |
Other derivatives | 161,429 | |
Marketable securities | 2,077,499 | 658,328 |
Total liabilities | 36,166 | 4,405 |
Financial liabilities at fair value through profit or loss | 36,166 | 4,405 |
Derivatives used for hedging | 36,166 | 4,405 |
Level 1 [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 2,077,499 | 658,328 |
Financial assets at fair value | 2,077,499 | 658,328 |
Derivative financial instruments | ||
Other derivatives | ||
Marketable securities | 2,077,499 | 658,328 |
Total liabilities | ||
Financial liabilities at fair value through profit or loss | ||
Derivatives used for hedging | ||
Level 2 [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 502,089 | 46,511 |
Financial assets at fair value | 502,089 | 46,511 |
Derivative financial instruments | 340,660 | 46,511 |
Other derivatives | 161,429 | |
Marketable securities | ||
Total liabilities | 36,166 | 4,405 |
Financial liabilities at fair value through profit or loss | 36,166 | 4,405 |
Derivatives used for hedging | R$ 36166 | R$ 4405 |
36. Financial instruments and_6
36. Financial instruments and risk management (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial instruments and risk management [line items] | ||||
Assets, per balance sheet | R$ 9336397 | R$ 7473871 | ||
Derivative financial instruments | 502,089 | 46,511 | ||
Other derivatives | ||||
Trade accounts receivable and other accounts receivable excluding prepayments | 2,000,764 | 3,287,855 | ||
Marketable securities | 2,077,498 | 658,328 | ||
Cash and cash equivalents | 2,575,291 | 2,284,810 | R$ 1075530 | R$ 2960718 |
Leases | 162,198 | 156,378 | ||
Judicial deposits | 794,755 | 1,006,899 | ||
Regulatory credits recoverable | 43,906 | 33,090 | ||
Liabilities, according to the balance sheet | 14,427,341 | 14,334,948 | ||
Loans and financing | 2,345,032 | 2,029,088 | ||
Derivative financial instruments | 36,166 | 4,405 | ||
Suppliers and other obligations, excluding legal obligations | 3,128,732 | 3,923,035 | ||
Leases | 8,378,835 | 7,780,870 | ||
Dividends and interest on shareholders' equity payable | 538,576 | 577,837 | ||
Financial Liabilities Measured At Amortized Cost [member] | ||||
Financial instruments and risk management [line items] | ||||
Liabilities, according to the balance sheet | 14,391,175 | 14,330,543 | ||
Loans and financing | 2,345,032 | 2,029,088 | ||
Derivative financial instruments | ||||
Suppliers and other obligations, excluding legal obligations | 3,128,732 | 3,923,035 | ||
Leases | 8,378,835 | 7,780,870 | ||
Dividends and interest on shareholders' equity payable | 538,576 | 597,550 | ||
Financial Liabilities At Fair Value Through Profit Or Loss [member] | ||||
Financial instruments and risk management [line items] | ||||
Liabilities, according to the balance sheet | 36,166 | 4,405 | ||
Loans and financing | ||||
Derivative financial instruments | 36,166 | 4,405 | ||
Suppliers and other obligations, excluding legal obligations | ||||
Leases | ||||
Dividends and interest on shareholders' equity payable | ||||
Financial Assets Measured At Amortized Cost [member] | ||||
Financial instruments and risk management [line items] | ||||
Assets, per balance sheet | 6,756,810 | 6,769,032 | ||
Derivative financial instruments | ||||
Other derivatives | ||||
Trade accounts receivable and other accounts receivable excluding prepayments | 3,180,661 | 3,287,855 | ||
Marketable securities | ||||
Cash and cash equivalents | 2,575,290 | 2,284,810 | ||
Leases | 162,198 | 156,378 | ||
Judicial deposits | 794,755 | 1,006,899 | ||
Regulatory credits recoverable | 43,906 | 33,090 | ||
Financial Assets At Fair Value Through Profit Or Loss [member] | ||||
Financial instruments and risk management [line items] | ||||
Assets, per balance sheet | 2,579,587 | 704,839 | ||
Derivative financial instruments | 340,660 | 46,511 | ||
Other derivatives | 161,429 | |||
Trade accounts receivable and other accounts receivable excluding prepayments | ||||
Marketable securities | 2,077,498 | R$ 658328 | ||
Cash and cash equivalents | ||||
Leases | ||||
Judicial deposits | ||||
Regulatory credits recoverable |
36. Financial instruments and_7
36. Financial instruments and risk management (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Derivative Financial Instruments One [Member] | |||
Financial instruments and risk management [line items] | |||
Currency | USD | USD | |
Type of SWAP | LIBOR x CDI | LIBOR x CDI | |
COUNTERPARTY, Debt | KFW/ Finnvera | KFW/Finnvera | |
COUNTERPARTY, SWAP | JP Morgan and Bank of America | JP Morgan e BOFA | |
Total Debt | R$ 351233 | R$ 330217 | |
Total swap (Long position) | [1] | R$ 351233 | R$ 330217 |
% Coverage | 100.00% | 100.00% | |
AVERAGE SWAP RATES, Long position | LIBOR 6M + 0.75% p.a. | LIBOR 6M + 0.75% p.a. | |
AVERAGE SWAP RATES, Short position | 85.50% of CDI | 85.50% do CDI | |
Derivative Financial Instruments Two [Member] | |||
Financial instruments and risk management [line items] | |||
Currency | EUR | ||
Type of SWAP | PRE x DI | ||
COUNTERPARTY, Debt | Bank of America | ||
COUNTERPARTY, SWAP | Bank of America | ||
Total Debt | R$ 570878 | ||
Total swap (Long position) | [1] | R$ 570878 | |
% Coverage | 100.00% | ||
AVERAGE SWAP RATES, Long position | 0.33% p.a. | ||
AVERAGE SWAP RATES, Short position | 108.05% CDI | ||
Derivative Financial Instruments Three [Member] | |||
Financial instruments and risk management [line items] | |||
Currency | USD | USD | |
Type of SWAP | PRE x DI | PRE X DI | |
COUNTERPARTY, Debt | The Bank of Nova Scotia. | CISCO | |
COUNTERPARTY, SWAP | Scotiabank | Santander e JP Morgan | |
Total Debt | R$ 1031526 | R$ 40366 | |
Total swap (Long position) | [1] | R$ 1031526 | R$ 40366 |
% Coverage | 100.00% | 100.00% | |
AVERAGE SWAP RATES, Long position | 1.72% p.a. | 2.50% p.a. | |
AVERAGE SWAP RATES, Short position | 134.43% CDI | 84.50% do CDI | |
Derivative Financial Instruments Four [Member] | |||
Financial instruments and risk management [line items] | |||
Currency | USD | ||
Type of SWAP | PRE x DI | ||
COUNTERPARTY, Debt | BNP Paribas | ||
COUNTERPARTY, SWAP | BNP Paribas | ||
Total Debt | R$ 399725 | ||
Total swap (Long position) | [1] | R$ 399725 | |
% Coverage | 100.00% | ||
AVERAGE SWAP RATES, Long position | 3.32% p.a. | ||
AVERAGE SWAP RATES, Short position | 155% CDI | ||
[1] | In certain swap contracts, active tip includes the cost of income tax (15%). After related taxes, coverage remains at 100%. |
36. Financial instruments and_8
36. Financial instruments and risk management (Details 5) R$ in Thousands | Dec. 31, 2020BRL (R$) |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | R$ 2252479 |
USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,367,461 |
Fair value of the long position of swap | 2,367,461 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 304,887 |
EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,367,461 |
Fair value of the long position of swap | 2,367,461 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 304,887 |
Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,367,461 |
Fair value of the long position of swap | 2,367,461 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 304,887 |
CDI sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,367,461 |
Fair value of the long position of swap | 2,367,461 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 304,887 |
Probable Scenario [member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,367,461 |
Fair value of the long position of swap | 2,367,461 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 304,887 |
Probable Scenario [member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,367,461 |
Fair value of the long position of swap | 2,367,461 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 304,887 |
Probable Scenario [member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,367,461 |
Fair value of the long position of swap | 2,367,461 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 304,887 |
Probable Scenario [member] | CDI sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,367,461 |
Fair value of the long position of swap | 2,367,461 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 304,887 |
Possible Scenario [member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,816,847 |
Accumulated variation in debt | 449,386 |
Fair value of the long position of swap | 2,816,847 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 754,273 |
Accumulated variation in swap | 449,386 |
Final result | |
Possible Scenario [member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,509,940 |
Accumulated variation in debt | 142,479 |
Fair value of the long position of swap | 2,509,940 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 447,366 |
Accumulated variation in swap | 142,479 |
Final result | |
Possible Scenario [member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,368,026 |
Accumulated variation in debt | 565 |
Fair value of the long position of swap | 2,368,026 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 305,452 |
Accumulated variation in swap | 565 |
Final result | |
Possible Scenario [member] | CDI sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,367,461 |
Accumulated variation in debt | |
Fair value of the long position of swap | 2,367,461 |
Fair value of the short position of swap | 2,049,955 |
Income (loss) from swap | 317,506 |
Accumulated variation in swap | 12,619 |
Final result | 12,619 |
Remote Scenario [member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 326,623 |
Accumulated variation in debt | 898,772 |
Fair value of the long position of swap | 3,266,233 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 1,203,659 |
Accumulated variation in swap | 898,772 |
Final result | |
Remote Scenario [member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,652,419 |
Accumulated variation in debt | 284,958 |
Fair value of the long position of swap | 2,652,419 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 589,845 |
Accumulated variation in swap | 284,958 |
Final result | |
Remote Scenario [member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,368,591 |
Accumulated variation in debt | 1,130 |
Fair value of the long position of swap | 2,368,591 |
Fair value of the short position of swap | 2,062,574 |
Income (loss) from swap | 306,017 |
Accumulated variation in swap | 1,130 |
Final result | |
Remote Scenario [member] | CDI sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Fair value (Cisco and KFW) | 2,367,461 |
Accumulated variation in debt | |
Fair value of the long position of swap | 2,367,461 |
Fair value of the short position of swap | 2,037,686 |
Income (loss) from swap | 329,775 |
Accumulated variation in swap | 24,888 |
Final result | R$ 24888 |
36. Financial instruments and_9
36. Financial instruments and risk management (Details 6) | 12 Months Ended |
Dec. 31, 2020 | |
Probable Scenario [member] | EUR [member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 6.3779% |
Probable Scenario [member] | EUR [member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 6.3779% |
Probable Scenario [member] | EUR [member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 6.3779% |
Probable Scenario [member] | CDI [member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 1.90% |
Probable Scenario [member] | CDI [member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 1.90% |
Probable Scenario [member] | CDI [member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 1.90% |
Probable Scenario [member] | USD [Member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 5.1967% |
Probable Scenario [member] | USD [Member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 5.1967% |
Probable Scenario [member] | USD [Member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 5.1967% |
Probable Scenario [member] | LIBOR [member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 0.2666% |
Probable Scenario [member] | LIBOR [member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 0.2666% |
Probable Scenario [member] | LIBOR [member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 0.2666% |
Possible Scenario [member] | EUR [member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 6.3779% |
Possible Scenario [member] | EUR [member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 7.9725% |
Possible Scenario [member] | EUR [member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 6.3779% |
Possible Scenario [member] | CDI [member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 1.90% |
Possible Scenario [member] | CDI [member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 1.90% |
Possible Scenario [member] | CDI [member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 1.90% |
Possible Scenario [member] | USD [Member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 6.4959% |
Possible Scenario [member] | USD [Member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 5.1967% |
Possible Scenario [member] | USD [Member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 5.1967% |
Possible Scenario [member] | LIBOR [member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 0.2666% |
Possible Scenario [member] | LIBOR [member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 0.2666% |
Possible Scenario [member] | LIBOR [member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 0.3333% |
Remote Scenario [member] | EUR [member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 6.3779% |
Remote Scenario [member] | EUR [member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 9.5669% |
Remote Scenario [member] | EUR [member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 6.3779% |
Remote Scenario [member] | CDI [member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 1.90% |
Remote Scenario [member] | CDI [member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 1.90% |
Remote Scenario [member] | CDI [member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 1.90% |
Remote Scenario [member] | USD [Member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 7.7951% |
Remote Scenario [member] | USD [Member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 5.1967% |
Remote Scenario [member] | USD [Member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 5.1967% |
Remote Scenario [member] | LIBOR [member] | USD sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 0.2666% |
Remote Scenario [member] | LIBOR [member] | EUR sensitivity scenario [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 0.2666% |
Remote Scenario [member] | LIBOR [member] | Scenario sensitivity to Libor [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 0.3999% |
CDI sensitivity scenario [member] | Probable Scenario [member] | EUR [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 6.3779% |
CDI sensitivity scenario [member] | Probable Scenario [member] | CDI [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 1.90% |
CDI sensitivity scenario [member] | Probable Scenario [member] | USD [Member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 5.1967% |
CDI sensitivity scenario [member] | Probable Scenario [member] | LIBOR [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 0.2666% |
CDI sensitivity scenario [member] | Possible Scenario [member] | EUR [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 6.3779% |
CDI sensitivity scenario [member] | Possible Scenario [member] | CDI [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 2.38% |
CDI sensitivity scenario [member] | Possible Scenario [member] | USD [Member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 5.1967% |
CDI sensitivity scenario [member] | Possible Scenario [member] | LIBOR [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 0.2666% |
CDI sensitivity scenario [member] | Remote Scenario [member] | EUR [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 6.3779% |
CDI sensitivity scenario [member] | Remote Scenario [member] | CDI [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 2.85% |
CDI sensitivity scenario [member] | Remote Scenario [member] | USD [Member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 5.1967% |
CDI sensitivity scenario [member] | Remote Scenario [member] | LIBOR [member] | |
Financial instruments and risk management [line items] | |
Interest rate variable risk | 0.2666% |
36. Financial instruments an_10
36. Financial instruments and risk management (Details 7) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Financial Instruments And Risk Management [Abstract] | |
Net income (loss) from derivative operations | R$ 290856 |
Income (loss) from operations with other derivatives | R$ 155165 |
36. Financial instruments an_11
36. Financial instruments and risk management (Details 8) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financial Instruments And Risk Management [Abstract] | |||||
Total loans and derivatives (notes 19 and 36) | R$ 1879109 | R$ 1986982 | |||
Lease - Liabilities (note 15) | 8,378,835 | 7,780,870 | |||
Lease - Assets (note 15) | (162,198) | (156,378) | |||
Less: Cash and cash equivalents (note 4) | (2,575,291) | (2,284,810) | R$ 1075530 | R$ 2960718 | |
FIC (note 5) | (2,070,438) | (654,479) | |||
Net debt | 5,450,018 | 6,672,185 | |||
Other derivatives (note 36) | 161,429 | ||||
Adjusted net debt | 5,611,447 | 6,672,185 | |||
EBITDA | [1] | R$ 8330038 | R$ 9643838 | ||
Leverage ratio | 65.00% | 69.00% | |||
Reconciliation to the directly comparable GAAP measure | |||||
Net income | R$ 1828254 | R$ 3622127 | 2,545,101 | ||
Depreciation and amortization | 5,527,012 | 5,128,981 | |||
Financial Income (Expenses) | (810,622) | 21,210 | (537,333) | ||
Income tax and social contribution | (164,150) | (913,940) | R$ 664911 | ||
EBITDA | [1] | R$ 8330038 | R$ 9643838 | ||
[1] | EBITDA: Presentation of earnings before interest, income tax, depreciation and amortization ("EBITDA") as a non-GAAP measure is useful to management, investors and other users of our financial information in evaluating operating profitability of the Company. EBITDA is calculated by adding back financial Income (Expenses), income taxes, depreciation and amortization expense to net income. |
36. Financial instruments an_12
36. Financial instruments and risk management (Details 9) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Loans and financing [member] | |
Financial instruments and risk management [line items] | |
Beginning balance | R$ 2029088 |
Additions | 1,800,000 |
Remeasurement | |
Financial expenses | 90,500 |
Foreign variations exchange net | 305,010 |
Payments | (1,879,566) |
Ending Balance | 2,345,032 |
Leases [member] | |
Financial instruments and risk management [line items] | |
Beginning balance | 7,780,870 |
Additions | 1,966,355 |
Remeasurement | (443,666) |
Financial expenses | 797,569 |
Foreign variations exchange net | |
Payments | (1,722,293) |
Ending Balance | 8,378,835 |
Derivative Financial Instruments (Assets) Liabilities [Member] | |
Financial instruments and risk management [line items] | |
Beginning balance | (42,106) |
Additions | (161,429) |
Remeasurement | |
Financial expenses | 13,016 |
Foreign variations exchange net | (305,012) |
Payments | 29,610 |
Ending Balance | R$ 465921 |
36. Financial instruments an_13
36. Financial instruments and risk management (Details Narrative) R$ in Thousands, $ in Thousands | Jun. 30, 2019USD ($) | Jul. 31, 2020BRL (R$) | Apr. 30, 2020BRL (R$) | Dec. 31, 2020BRL (R$)Number | Dec. 31, 2019Number | Dec. 31, 2020USD ($) |
Financial instruments and risk management [line items] | ||||||
Settlement amount | R$ 2570 | |||||
USD | ||||||
Financial instruments and risk management [line items] | ||||||
Nominal amount | $ | $ 15,000 | $ 2,140 | ||||
Currency variation effects | R$ 5.30/USD to R$ 6.00/USD | |||||
Number of options | Number | 7 | |||||
Maturity terms | June to December 2020 | |||||
Banco C6 [member] | ||||||
Financial instruments and risk management [line items] | ||||||
Share capital | 1.40% | |||||
Strike price paid | R$ 6200 | |||||
Financial instrument measured at fair value | 161,000 | |||||
Difference in the fair value | 155,000 | |||||
Bank of Nova Scotia and BNP Paribas [member] | ||||||
Financial instruments and risk management [line items] | ||||||
Acquisition of new loans | R$ 1000000 | |||||
Loan amount disbursed | R$ 425800 | R$ 574200 | ||||
Top Of Range [member] | Accounts Receivable [Member] | ||||||
Financial instruments and risk management [line items] | ||||||
Concentration risk, percentage | 10.00% | 10.00% | ||||
Number of customer | Number | 0 | 0 | ||||
Top Of Range [member] | Revenues from sale of goods [Member] | ||||||
Financial instruments and risk management [line items] | ||||||
Concentration risk, percentage | 10.00% | 10.00% | ||||
Number of customer | Number | 0 | 0 |
37. Pension plan and other po_3
37. Pension plan and other post-employment benefits (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
PAMEC/ Asset Policy and Medical Plan [member] | ||
Disclosure of defined benefit plans [line items] | ||
Defined benefit pension plans and other post-employment benefits | R$ 7346 | R$ 5782 |
37. Pension plan and other po_4
37. Pension plan and other post-employment benefits (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of assets and liabilities | |||
Present value of the actuarial obligations | R$ 69362 | R$ 54877 | |
Fair value of the plan assets | (80,856) | (54,855) | |
Present value of the obligations exceeding the fair value of the assets | (11,494) | 22 | |
Amount recognized in other comprehensive income | 2,023 | ||
Net actuarial liabilities/(assets) | (9,471) | R$ 22 | |
PBS [member] | |||
Reconciliation of assets and liabilities | |||
Present value of the actuarial obligations | [1] | 41,852 | |
Fair value of the plan assets | [1] | (57,479) | |
Present value of the obligations exceeding the fair value of the assets | [1] | (15,627) | |
Amount recognized in other comprehensive income | [1] | ||
Net actuarial liabilities/(assets) | [1] | (15,627) | |
PBS Assisted [member] | |||
Reconciliation of assets and liabilities | |||
Present value of the actuarial obligations | 10,072 | ||
Fair value of the plan assets | (12,998) | ||
Present value of the obligations exceeding the fair value of the assets | (2,926) | ||
Amount recognized in other comprehensive income | 2,023 | ||
Net actuarial liabilities/(assets) | (903) | ||
Administration Agreement [member] | |||
Reconciliation of assets and liabilities | |||
Present value of the actuarial obligations | [1] | 147 | |
Fair value of the plan assets | [1] | (434) | |
Present value of the obligations exceeding the fair value of the assets | [1] | (287) | |
Amount recognized in other comprehensive income | [1] | ||
Net actuarial liabilities/(assets) | [1] | (287) | |
PAMEC/Asset Policy [member] | |||
Reconciliation of assets and liabilities | |||
Present value of the actuarial obligations | 858 | ||
Fair value of the plan assets | |||
Present value of the obligations exceeding the fair value of the assets | 858 | ||
Amount recognized in other comprehensive income | |||
Net actuarial liabilities/(assets) | 858 | ||
AES Telecom [member] | |||
Reconciliation of assets and liabilities | |||
Present value of the actuarial obligations | 12,090 | ||
Fair value of the plan assets | (9,945) | ||
Present value of the obligations exceeding the fair value of the assets | 2,145 | ||
Amount recognized in other comprehensive income | |||
Net actuarial liabilities/(assets) | 2,145 | ||
Medical Care Plan [member] | |||
Reconciliation of assets and liabilities | |||
Present value of the actuarial obligations | 4,343 | ||
Fair value of the plan assets | |||
Present value of the obligations exceeding the fair value of the assets | 4,343 | ||
Amount recognized in other comprehensive income | |||
Net actuarial liabilities/(assets) | R$ 4343 | ||
[1] | No asset was recognized by the sponsors, due to the impossibility of reimbursing this surplus, and the fact that the sponsor's contributions will not be reduced in the future. |
37. Pension plan and other po_5
37. Pension plan and other post-employment benefits (Details 2) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
PBS [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial liabilities (assets) on beginning | R$ 3564 |
Expense (revenue) recognized in income (loss) | (243) |
Contributions of the sponsor | |
Recognized actuarial (gains) or losses | (11,820) |
Net actuarial liabilities (assets) on end | (15,627) |
PBS Assisted [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial liabilities (assets) on beginning | (3,420) |
Expense (revenue) recognized in income (loss) | (230) |
Contributions of the sponsor | |
Recognized actuarial (gains) or losses | 2,747 |
Net actuarial liabilities (assets) on end | (903) |
Administration Agreement [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial liabilities (assets) on beginning | (274) |
Expense (revenue) recognized in income (loss) | (19) |
Contributions of the sponsor | |
Recognized actuarial (gains) or losses | 6 |
Net actuarial liabilities (assets) on end | (287) |
PAMEC/Asset Policy [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial liabilities (assets) on beginning | 1,080 |
Expense (revenue) recognized in income (loss) | 72 |
Contributions of the sponsor | (48) |
Recognized actuarial (gains) or losses | (246) |
Net actuarial liabilities (assets) on end | 858 |
AES Telecom [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial liabilities (assets) on beginning | 2,117 |
Expense (revenue) recognized in income (loss) | 272 |
Contributions of the sponsor | |
Recognized actuarial (gains) or losses | (244) |
Net actuarial liabilities (assets) on end | 2,145 |
Medical Care Plan [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial liabilities (assets) on beginning | 2,585 |
Expense (revenue) recognized in income (loss) | 329 |
Contributions of the sponsor | (36) |
Recognized actuarial (gains) or losses | 1,465 |
Net actuarial liabilities (assets) on end | R$ 4343 |
37. Pension plan and other po_6
37. Pension plan and other post-employment benefits (Details 3) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
PBS [member] | |
Disclosure of defined benefit plans [line items] | |
Value of obligations on beginning | R$ 40427 |
Cost of current service | 15 |
Interest on actuarial obligation | 2,650 |
Benefits paid in the year | (2,718) |
Contributions paid by participants | |
(Gains)/losses in obligations | 1,478 |
Value of obligations on end | 41,852 |
PBS Assisted [member] | |
Disclosure of defined benefit plans [line items] | |
Value of obligations on beginning | 10,107 |
Cost of current service | |
Interest on actuarial obligation | 658 |
Benefits paid in the year | (756) |
Contributions paid by participants | |
(Gains)/losses in obligations | 63 |
Value of obligations on end | 10,072 |
Administration Agreement [member] | |
Disclosure of defined benefit plans [line items] | |
Value of obligations on beginning | 151 |
Cost of current service | |
Interest on actuarial obligation | 10 |
Benefits paid in the year | (9) |
Contributions paid by participants | |
(Gains)/losses in obligations | (5) |
Value of obligations on end | 147 |
PAMEC/Asset Policy [member] | |
Disclosure of defined benefit plans [line items] | |
Value of obligations on beginning | 1,080 |
Cost of current service | |
Interest on actuarial obligation | 72 |
Benefits paid in the year | (48) |
Contributions paid by participants | |
(Gains)/losses in obligations | (246) |
Value of obligations on end | 858 |
AES Telecom [member] | |
Disclosure of defined benefit plans [line items] | |
Value of obligations on beginning | 11,099 |
Cost of current service | 125 |
Interest on actuarial obligation | 774 |
Benefits paid in the year | (494) |
Contributions paid by participants | 77 |
(Gains)/losses in obligations | 509 |
Value of obligations on end | 12,090 |
Medical Care Plan [member] | |
Disclosure of defined benefit plans [line items] | |
Value of obligations on beginning | 2,585 |
Cost of current service | 150 |
Interest on actuarial obligation | 179 |
Benefits paid in the year | (36) |
Contributions paid by participants | |
(Gains)/losses in obligations | 1,465 |
Value of obligations on end | R$ 4343 |
37. Pension plan and other po_7
37. Pension plan and other post-employment benefits (Details 4) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
PBS [member] | |
Disclosure of defined benefit plans [line items] | |
Fair value of assets on beginning | R$ 43991 |
Benefits paid in the year | (2,718) |
Actual earnings from assets during the year | 2,893 |
Actuarial gain (loss) on plan assets | 13,313 |
Contributions paid by participants | |
Contributions of sponsor converted in the plan | |
Fair value of assets on end | 57,479 |
PBS Assisted [member] | |
Disclosure of defined benefit plans [line items] | |
Fair value of assets on beginning | 13,527 |
Benefits paid in the year | (756) |
Actual earnings from assets during the year | 888 |
Actuarial gain (loss) on plan assets | (661) |
Contributions paid by participants | |
Contributions of sponsor converted in the plan | |
Fair value of assets on end | 12,998 |
Administration Agreement [member] | |
Disclosure of defined benefit plans [line items] | |
Fair value of assets on beginning | 425 |
Benefits paid in the year | (9) |
Actual earnings from assets during the year | 29 |
Actuarial gain (loss) on plan assets | (11) |
Contributions paid by participants | |
Contributions of sponsor converted in the plan | |
Fair value of assets on end | 434 |
PAMEC/Asset Policy [member] | |
Disclosure of defined benefit plans [line items] | |
Fair value of assets on beginning | |
Benefits paid in the year | |
Actual earnings from assets during the year | |
Actuarial gain (loss) on plan assets | |
Contributions paid by participants | |
Contributions of sponsor converted in the plan | |
Fair value of assets on end | |
AES Telecom [member] | |
Disclosure of defined benefit plans [line items] | |
Fair value of assets on beginning | 8,982 |
Benefits paid in the year | (494) |
Actual earnings from assets during the year | 627 |
Actuarial gain (loss) on plan assets | 753 |
Contributions paid by participants | 77 |
Contributions of sponsor converted in the plan | |
Fair value of assets on end | 9,945 |
Medical Care Plan [member] | |
Disclosure of defined benefit plans [line items] | |
Fair value of assets on beginning | |
Benefits paid in the year | |
Actual earnings from assets during the year | |
Actuarial gain (loss) on plan assets | |
Contributions paid by participants | |
Contributions of sponsor converted in the plan | |
Fair value of assets on end |
37. Pension plan and other po_8
37. Pension plan and other post-employment benefits (Details 5) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
PBS [member] | |
Disclosure of defined benefit plans [line items] | |
Current service cost (with interest) | R$ 15 |
Interest on actuarial obligations | 243 |
Earnings expected from assets | 2,893 |
PBS Assisted [member] | |
Disclosure of defined benefit plans [line items] | |
Current service cost (with interest) | |
Interest on actuarial obligations | 230 |
Earnings expected from assets | 888 |
PAMEC/Asset Policy [member] | |
Disclosure of defined benefit plans [line items] | |
Current service cost (with interest) | |
Interest on actuarial obligations | (72) |
Earnings expected from assets | |
AES Telecom [member] | |
Disclosure of defined benefit plans [line items] | |
Current service cost (with interest) | (125) |
Interest on actuarial obligations | (272) |
Earnings expected from assets | 627 |
Medical Care Plan [member] | |
Disclosure of defined benefit plans [line items] | |
Current service cost (with interest) | (150) |
Interest on actuarial obligations | (329) |
Earnings expected from assets | |
Expenditure Planned For 2021 [Member] | PBS [member] | |
Disclosure of defined benefit plans [line items] | |
Current service cost (with interest) | 17 |
Interest on actuarial obligations | 2,743 |
Earnings expected from assets | (3,799) |
Interest on the effect of the (asset)/liability limit | 1,056 |
Total unrecognized net expense (revenue) | 17 |
Expenditure Planned For 2021 [Member] | PBS Assisted [member] | |
Disclosure of defined benefit plans [line items] | |
Current service cost (with interest) | |
Interest on actuarial obligations | 640 |
Earnings expected from assets | (834) |
Interest on the effect of the (asset)/liability limit | 60 |
Total unrecognized net expense (revenue) | (134) |
Expenditure Planned For 2021 [Member] | Administration Agreement [Member] | |
Disclosure of defined benefit plans [line items] | |
Current service cost (with interest) | |
Interest on actuarial obligations | 10 |
Earnings expected from assets | (29) |
Interest on the effect of the (asset)/liability limit | 20 |
Total unrecognized net expense (revenue) | 1 |
Expenditure Planned For 2021 [Member] | PAMEC/Asset Policy [member] | |
Disclosure of defined benefit plans [line items] | |
Current service cost (with interest) | |
Interest on actuarial obligations | 57 |
Earnings expected from assets | |
Interest on the effect of the (asset)/liability limit | |
Total unrecognized net expense (revenue) | 57 |
Expenditure Planned For 2021 [Member] | AES Telecom [member] | |
Disclosure of defined benefit plans [line items] | |
Current service cost (with interest) | |
Interest on actuarial obligations | 868 |
Earnings expected from assets | (708) |
Interest on the effect of the (asset)/liability limit | |
Total unrecognized net expense (revenue) | 160 |
Expenditure Planned For 2021 [Member] | Medical Care Plan [member] | |
Disclosure of defined benefit plans [line items] | |
Current service cost (with interest) | 213 |
Interest on actuarial obligations | 322 |
Earnings expected from assets | |
Interest on the effect of the (asset)/liability limit | |
Total unrecognized net expense (revenue) | R$ 535 |
37. Pension plan and other po_9
37. Pension plan and other post-employment benefits (Details 6) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of defined benefit plans [abstract] | |
Nominal discount rate for the actuarial obligation: | PBS South: 6.76% / 3.15%; PBS Nordeste: 6.86% / 3.25%; CA: 6.86% / 3.25%; PBS-A: 6.60% / 3.00%; AES: 7.43% / 3.80%; PAMEC: 6.81% / 3.20%; FIBER: 7.43% / 3.80% |
Salary growth rate - nominal: | PBS: 3.50%/ 0.00% CA, PBS-A, AES, PAMEC and FIBER: Not applicable |
Biometric general mortality table: | PBS, CA, PAMEC and FIBER: AT-2000 segregated per sex, decreased by 10% |
Biometric table of new disability benefit vested: | PBS and FIBER: Álvaro Vindas; CA, PBS-A, AES and PAMEC: Not applicable |
Expected turnover rate: | PBS: Null; CA, PBS-A, AES and PAMEC: Not applicable; FIBER: 0.15/ (length of service + 1), being null as of 50 years old |
Probability of retirement: | PBS and FIBER: 100% at 1st eligibility; CA, PBS-A, AES and PAMEC: Not applicable |
Estimated long-term inflation rate | PAMEC and FIBER: 6.60% / 3.00% |
Determination method | Projected Unit Credit Method |
38. Insurance (Details)
38. Insurance (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Vehicles (Executive and Operational Fleets) [member] | |
Insurance [line items] | |
Description of insured assets | R$1,000 for optional civil liability (property damage and bodily harm) and R$ 100 for pain and suffering. |
Operating risks [member] | |
Insurance [line items] | |
Amount of insured assets | R$ 34983023 |
General civil liability - RCG [member] | |
Insurance [line items] | |
Amount of insured assets | 80,000 |
Cyber risks [member] | |
Insurance [line items] | |
Amount of insured assets | R$ 28521 |
39. Supplementary information_3
39. Supplementary information to the cash flow (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Transactions not involving cash | |||
Additions to property, plant and equipment and intangible assets - with no cash effect | R$ 1315151 | R$ 6653985 | R$ 38944 |
Increase in lease liabilities - no effect on cash | R$ 1315151 | R$ 6653985 | R$ 38944 |
40. Relevant transactions (Deta
40. Relevant transactions (Details Narrative) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
RelevantTransactionsLineItems [Line Items] | |
Transition services amounts | R$ 7300 |
Net present value | R$ 11494 |
Description of responsible ralated parties | TIM will be responsible for the following: Clients: approximately 14.5 million customers (corresponding to 40% of the total customer base of UPI Ativos Móveis) - according to Anatel’s access base from April 2020. The allocation of customers among Buyers took into account criteria that favor competition between operators currently operating in the Brazilian market; Radio frequency: approximately 49 MHz as a national average weighted by the population (54% of UPI Ativos Móveis’ radio frequencies). The frequency division between Buyers strictly respects the spectrum limits per group established by Anatel; Infrastructure: approximately 7,200 mobile access sites (corresponding to 49% of the total of UPI Ativos Móveis’ sites). |
Oi group [member] | |
RelevantTransactionsLineItems [Line Items] | |
Transition services amounts | R$ 756000 |
Net present value | 819,000 |
Base price offer | R$ 15744000 |
Term of transition services | 12 months |
Percentage of base price | 44.00% |
Percentage of net present value | 58.00% |
Payable amounts that brought to present value total | R$ 476000 |
Oi group [member] | Contract assets [member] | |
RelevantTransactionsLineItems [Line Items] | |
Transaction value | 16,500,000 |
Transition services amounts | R$ 16500000 |
41. Subsequent events (Details
41. Subsequent events (Details Narrative) R$ in Thousands | Apr. 30, 2021BRL (R$) | Feb. 01, 2021BRL (R$)Number | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) |
Disclosure of non-adjusting events after reporting period [line items] | ||||
Assets | R$ 41654417 | R$ 40348924 | ||
Events after reporting period [member] | Credit Agreement [member] | Banks BNP and Bank of Nova Scotia [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Nominal amount | R$ 1100000 | |||
Term of agreement | 3 years | |||
Events after reporting period [member] | Banco C6 S.A. [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Percentage of voting equity interests acquired | 1.40% | |||
Number of bank accounts | Number | 4,000,000 | |||
Assets | R$ 5300000 | |||
Payment platform per month. | R$ 1500000 |