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Finance Leases
12 Months Ended
Dec. 31, 2017
Leases1 [Abstract]  
Finance Leases
Finance leases
The main finance leases at the Telefónica Group are as follows:

a) Finance lease agreement at Colombia Telecomunicaciones, S.A. ESP
The Group, through its subsidiary Colombia Telecomunicaciones, S.A., ESP (Coltel), had a finance lease agreement with Patrimonio Autónomo Receptor de Activos de la Empresa Nacional de Telecomunicaciones (PARAPAT), the consortium which owned the telecommunications assets and managed the pension funds for the entities which were predecessors to Coltel, which included the transfer of these assets and rights to Coltel.
On August 29, 2017, the Shareholders’ Meeting of Coltel approved a capital increase used to pre-pay the entire amount of Coltel´s debt with PARAPAT with the consequent transfer of the legal ownership of the assets of the operating agreement. Telefónica disbursed the corresponding amount pro rata to its shareholding in ColTel and the Colombian Government assumed 32.5% of ColTel's payment obligations with the PARAPAT (see Note 2). The present value of the payment obligations with the PARAPAT at the date of termination of the contract amounted to 4,290,992 Colombian pesos (1,236 million euros).
The present value of the payment obligations with the PARAPAT at December 31, 2016 amounted to 1,275 million euros, as follows:
Millions of euros
Present value

Revaluation

Pending payment

Within one year
152

9

161

From one to five years
517

207

724

More than five years
606

951

1,557

Total
1,275

1,167

2,442


b) Future minimum lease payment commitments in relation to finance leases at Telefónica Brasil companies
The payment schedule of finance leases of Telefónica Brasil at December 31, 2017, is as follows:
Millions of euros
Present value

Revaluation

Pending payment

Within one year
13

2

15

From one to five years
37

14

51

More than five years
48

85

133

Total
98

101

199

At December 31, 2017 there are net assets under finance lease agreements amounting to 71 million euros recognized under property, plant and equipment.
Additionally, Telefónica Brasil acts as a lessor in financial leases related to those described above. The minimum lease payment receivables at December 31, 2017 are scheduled as follows:
Millions of euros
Present value

Revaluation

Pending receivables

Within one year
58


58

From one to five years
43

8

51

Total
101

8

109

Accumulated allowance
(39
)
 
 
Total after accumulated allowance
62

 
 
c) Future minimum lease payment commitments in relation to finance leases at Telefónica de España, S.A.U.
The payment schedule of finance leases of Telefónica de España, S.A.U. at December 31, 2017, is as follows:
Millions of euros
Present value

Revaluation

Pending payment

Within one year
79

3

82

From one to five years
32

1

33

Total
111

4

115

Additionally, Telefónica de España, S.A.U. acts as a lessor in financial leases related to those described above. The minimum lease payment receivables at December 31, 2017 are scheduled as follows:
Millions of euros
Present value

Revaluation

Pending receivables

Within one year
71


71

From one to five years
47


47

Total
118


118


d) Future minimum lease payment commitments in relation to finance leases at Telefónica Germany companies
The payment schedule of finance leases of Telefónica Germany at December 31, 2017, is as follows:
Millions of euros
Present value

Revaluation

Pending payment

Within one year
18

1

19

From one to five years
15


15

Total
33

1

34


At December 31, 2017 there are net assets under finance lease agreements amounting to 124 million euros recognized under property, plant and equipment.
Additionally, Telefónica Germany acts as a lessor in financial leases related to those described above. The minimum lease payment receivables at December 31, 2017 are scheduled as follows:
Millions of euros
Present value

Revaluation

Pending receivables

Within one year
8


8

Total
8


8

Accumulated allowance
(2
)
 
 
Total after accumulated allowance
6