PARTNER COMMUNICATIONS CO LTD | CIK:0001096691 |

NOTE 22 – INCOME STATEMENT DETAILS

 

(a)

Revenues:

 

The aggregate amount of transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied as at December 31, 2017, in addition to deferred revenues (see table below), is approximately NIS 92 million (mainly services). Of which the Group expects that approximately 60% will be recognized as revenue during 2018, approximately 25% will be recognized as revenue during 2019, and the rest in later years. The above excludes contracts that are for periods of one year or less or are billed based on time incurred, as permitted under IFRS 15 the transaction price allocated to these unsatisfied contracts is not disclosed.

The table below describes significant changes in contract liabilities:

 

		New Israeli Shekels in millions
		Deferred revenues from Hot mobile *				Other deferred revenues*
Balance as at December 31, 2016			226				45
Revenue recognized that was included in the contract liability balance at the beginning of the year			(31	)			(29	)
Increases due to cash received, excluding amounts recognized as revenues during the year			-				30
Balance as at December 31, 2017			195				46

* Current and non-current deferred revenues.

Disaggregation of revenues:

 

		Year ended December 31, 2017 New Israeli Shekels in millions
		Cellular segment				Fixed-line segment				Elimination				Consolidated
Segment revenue - Services to private customers			1,173				254				(32	)			1,395
Segment revenue - Services to business customers			805				523				(141	)			1,187
Segment revenue - Services revenue total			1,978				777				(173	)			2,582
Segment revenue - Equipment			610				76								686
Total Revenues			2,588				853				(173	)			3,268

Revenues from services are recognized over time. For the year 2017 revenues from equipment are recognized at a point of time, except for NIS 11 million, which were recognized in 2017 over time. Revenues from equipment for the year 2017 include revenues from operating leases according to IAS 17, in an amount of NIS 11 million.

 

Revenues from services for the year 2017 include revenues from operating leases according to IAS17 in an amount of NIS 10 million. See also note 7 with respect to payment terms of sales of equipment, trade receivables and allowance for doubtful accounts.

 

See also note 2(n).

(b)

Cost of revenues

 

		New Israeli Shekels
		Year ended December 31,
		2015				2016				2017
		In millions
Transmission, communication and content providers			888				814				738
Cost of equipment and accessories			852				625				519
Depreciation and amortization (including impairment)			577				501				477
Wages, employee benefits expenses and car maintenance			320				270				293
Costs of handling, replacing or repairing equipment			88				93				75
Operating lease, rent and overhead expenses			315				258				184
Network and cable maintenance			145				150				97
Internet infrastructure and service providers			49				68				95
Car kit installation, IT support, and other operating expenses			72				62				61
Amortization of rights of use (including impairment)			112				30				40
Other			54				53				48
Total cost of revenues			3,472				2,924				2,627

		New Israeli Shekels
		Year ended December 31,
		2015				2016				2017
		In millions
Wages, employee benefits expenses and car maintenance			206				177				(*)106
Advertising and marketing			30				68				44
Selling commissions, net			77				82				(*)29
Depreciation and amortization (including impairment)			55				55				(*)54
Operating lease, rent and overhead expenses			27				29				23
Other			22				15				13
Total selling and marketing expenses			417				426				269

(*) See Notes 2(n), 2(f)(5) regarding the early adoption of IFRS 15, Revenue from Contracts with Customers.

 

		New Israeli Shekels
		Year ended December 31,
		2015				2016				2017
		In millions
Wages, employee benefits expenses and car maintenance			84				101				79
Bad debts and allowance for doubtful accounts			63				82				52
Professional fees			31				32				22
Credit card and other commissions			16				14				14
Depreciation			9				9				9
Other			20				25				20
Total general and administrative expenses			223				263				196

(e)

Employee benefit expense

 

		New Israeli Shekels
		Year ended December 31,
		2015				2016				2017
		In millions
Wages and salaries including social benefits, social
security costs, pension costs and car maintenance
before capitalization			622				537				503
Less: expenses capitalized (notes 10, 11)			(65	)			(65	)			(77	)
Service costs: defined benefit plan (note 16(2))			21				17				15
Service costs: defined contribution plan (note 16(1))			15				14				17
Employee share based compensation expenses (note 21(b))			17				45				20
			610				548				478

See also note 28 with respect of collective employment agreement.