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Financial Assets and Other Non-current Assets
 12 Months Ended
Dec. 31, 2023
Financial Instruments [Abstract]  
Financial Assets and Other Non-current Assets Financial assets and other non-current assets
The breakdown of financial assets and other non-current assets of the Telefónica Group at December 31, 2023 and December 31, 2022 is as follows:
Millions of euros12/31/202312/31/2022
Non-current financial assets (Note 16)5,201 6,219 
Investments616 497 
Credits and other financial assets
741 981 
Deposits and guarantees966 1,163 
Trade receivables1,049 1,019 
Receivables for subleases14 19 
Impairment of trade receivables(125)(128)
Long-term derivative financial assets (Note 19)1,940 2,668 
Other non-current assets2,067 1,882 
Contractual assets (Note 23)325 359 
Deferred expenses (Note 23)1,001 854 
Long-term receivables for taxes354 345 
Prepayments387 324 
Total7,268 8,101 
Non-current financial assets
The movement in investments, other long-term credits, deposits and guarantees, trade receivables, long-term receivables for subleases and impairment of trade receivables in 2023 and 2022, is as follows:
Millions of eurosInvestmentsOther long-term creditsDeposits and guaranteesTrade receivablesLong-term receivables for subleasesImpairment of trade receivables
Balance at 12/31/2021479 890 1,254 752 27 (112)
Additions12 503 64 616 4 (10)
Disposals(74)(94)(33)(162)(4)3 
Translation differences(1)2 69 12 1 (13)
Fair value adjustments and financial updates80 64 26 (2)— — 
Transfers and other1 (384)(217)(197)(9)4 
Balance at 12/31/2022497 981 1,163 1,019 19 (128)
Additions17 114 9 610 4 (38)
Disposals(17)(310)(111)(303)(1)16 
Translation differences (1)(17)30 37 — (11)
Fair value adjustments and financial updates115 26 35 1 — — 
Transfers and other5 (53)(160)(315)(8)36 
Balance at 12/31/2023616 741 966 1,049 14 (125)
Investments
“Investments” includes the fair value of investments in companies where Telefónica exercises no significant influence or control and for which there is no specific short-term disposal plan (see Note 3.i).
The Telefónica Group’s shareholding in Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) amounted to 363 million euros (249 million euros at December 31, 2022), representing 0.76% of its share capital at December 31, 2023 (0.73% at December 31, 2022).
At December 31, 2023, Telefónica maintains a 0.59% stake in the share capital of China Unicom (Hong Kong) Limited, valued at 103 million euros (same percentage at December 31, 2022, valued at 105 million euros).
On May 19, 2022 Telefónica signed an agreement with the company Global Alconaba, S.L., for the sale of 50,147,058 shares of Promotora de Informaciones, S.A. (PRISA), equivalent to 7.076% of its share capital. As a result of this sale, 71 million euros of losses from financial assets measured at fair value through comprehensive income were reclassified to retained earnings. On June 21, 2023 the Company has sold its total remaining shares in this investment.
Other long-term credits
This line item includes long-term financial assets of Telefónica Germany amounting to 114 million euros and 104 million euros at December 31, 2023 and 2022, respectively, most of them related to reimbursement rights to cover pension obligations of the company but do not represent "plan assets" in accordance with IAS 19 (see Note 24).
Additionally, at December 31, 2023 this line includes 112 million euros of loans granted by Colombia Telecomunicaciones, S.A. ESP BIC to the associate company Álamo Holdco, S.L. (82 million euros included in additions for the year 2022, see Note 10).
Additions in 2023 includes 44,187 million Chilean pesos (46 million euros) corresponding to the indefinite-term loan granted by Telefónica Chile, S.A. to the associate HoldCo Infraco, SpA for the acquisition of the fiber optic assets owned by Entel (see Note 10). Additionally, at December 31, 2023 includes 75 million euros corresponding to the subordinated debt granted by Telefónica Chile to the associate company HoldCo Infraco, SpA. generated by the sale of 40% of the fiber optic business (75 million euros as of December 31, 2022, see Note 10).
Additionally at December 31, 2023 includes the collection right arising from Telxius with American Tower Corporation as a result of the sale of the telecommunications towers division in Europe (Spain and Germany) in June 2021 amounting to 269 million euros (264 million euros at December 31, 2022).
Additions for the year 2022 included financial instruments (Federal Treasury Certificates) of Pegaso PCS, S.A. de C.V. amounted to 260 million euros, for the purpose of securing certain legal proceedings with the Mexican tax Administration Service. These instruments were classified as long-term based on the estimated term of the proceedings and accrue interest according to the time elapsed. Derived from the judicial resolution that exempts Pegaso PCS, S.A. de C.V. from securing the amount in dispute, the aforementioned financial instruments were cancelled, and the collection was received in July 2023 and registered as disposals in 2023 for an amount of 287 million euros (see Note 28).
Transfers for the year 2022 included the short-term transfer of the notes issued by the international issue platform Single Platform Investment Repackaging Entity, S.A. ("Spire") for an amount of 313 million euros, all of which were registered at December 31, 2022 in "Other current financial assets" for an amount of 939 million euros (see Note 15).
The vast majority of long-term credits, recognized at amortized cost (Note 16), are considered to be low credit risk assets, therefore the impairment analysis was carried out on the basis of expected credit losses in the next twelve months.
Deposits and guarantees
Telefónica Brazil has non-current judicial deposits amounting to 531 million euros (see Note 24) at December 31, 2023 (501 million euros at December 31, 2022).
At December 31, 2023, there were deposits related to the collateral guarantees on derivatives (CSA) signed by Telefónica, S.A. and its counterparties for the credit risk management of derivatives amounting to 273 million euros,
not having cross currency swap (365 million euros at December 31, 2022 that included 42 million euros related to cross currency swap).
In relation with collateral contracts, there is an additional guarantee of 51,988 bonds issued by Telefónica Emisiones, S.A.U. deposited in a securities account owned by Telefónica, S.A. with a notional of 47 million euros at December 31, 2023 (79,034 bonds for a nominal amount of 78 million euros at December 31, 2022).
The vast majority of deposits and guarantees recognized at amortized cost (Note 16), are considered to be low credit risk assets, therefore the impairment analysis was carried out on the basis of expected credit losses in the next 12 months.
Trade receivables
"Additions" for the year in 2022 included trade receivables amounting to 69 million euros from Colombia Telecomunicaciones, S.A. ESP BIC to the associate Onnet Fibra Colombia SAS, (29 million euros and 59 million euros at December 31, 2023 and December 31, 2022, respectively, see Note 10).
At December 31, 2023 includes Telefónica Germany trade receivables at fair value through other comprehensive income for an amount of 280 million euros (292 million euros as of December 31, 2022, see Note 16).
The breakdown of financial assets of the Telefónica Group at December 31, 2023 is as follows:
December 31, 2023
 Fair value through profit or loss Fair value through other comprehensive income Measurement hierarchy   
Millions of eurosHeld for tradingFair value optionDebt instru-mentsEquity instru-mentsHedgesLevel 1 (Quoted prices)Level 2 (Other directly observable market inputs)Level 3 (Inputs not based on observable market data)Amortized costTotal carrying amountTotal fair value
Non-current financial assets (Note 12)224 — 289 578 1,785 537 2,326 13 2,325 5,201 5,201 
Investments38 — — 578 — 510 106 — — 616 616 
Credits and other financial assets31 — 9 — — 27 — 13 701 741 741 
Deposits and guarantees— — — — — — — — 966 966 966 
Derivative instruments155 — — — 1,785 — 1,940 — — 1,940 1,940 
Trade receivables— — 280 — — — 280 — 769 1,049 924 
Trade receivables for subleases— — — — — — — — 14 14 14 
Impairment of trade receivables— — — — — — — — (125)(125)— 
Current financial assets291 — 945 — 271 293 1,214 — 14,152 15,659 15,659 
Trade receivables (Note 14)— — 854 — — — 854 — 9,568 10,422 7,430 
Impairment of trade receivables (Note 14)— — — — — — — — (2,992)(2,992)— 
Other current financial assets (Note 15)291 — 91 — 271 293 360 — 425 1,078 1,078 
Cash and cash equivalents— — — — — — — — 7,151 7,151 7,151 
Total 515 — 1,234 578 2,056 830 3,540 13 16,477 20,860 20,860 
The breakdown of financial assets of the Telefónica Group at December 31, 2022 was as follows:
December 31, 2022
 Fair value through profit or loss Fair value through other comprehensive income Measurement hierarchy   
Millions of eurosHeld for tradingFair value optionDebt instru-mentsEquity instru-mentsHedgesLevel 1 (Quoted prices)Level 2 (Other directly observable market inputs)Level 3 (Inputs not based on observable market data)Amortized costTotal carrying amountTotal fair value
Non-current financial assets (Note 12)323 — 350 465 2,404 464 3,067 11 2,677 6,219 6,219 
Investments32 — — 465 — 390 107 — — 497 497 
Credits and other financial assets27 — 58 — — 74 — 11 896 981 981 
Deposits and guarantees— — — — — — — — 1,163 1,163 1,163 
Derivative instruments264 — — — 2,404 — 2,668 — — 2,668 2,668 
Trade receivables— — 292 — — — 292 — 727 1,019 891 
Trade receivables for subleases— — — — — — — — 19 19 19 
Impairment of trade receivables— — — — — — — — (128)(128)— 
Current financial assets405 — 833 — 466 181 1,513 10 15,325 17,029 17,029 
Trade receivables (Note 14)— — 792 — — — 792 — 9,439 10,231 7,340 
Impairment of trade receivables (Note 14)— — — — — — — — (2,891)(2,891)— 
Other current financial assets (Note 15)405 — 41 — 466 181 721 10 1,532 2,444 2,444 
Cash and cash equivalents— — — — — — — — 7,245 7,245 7,245 
Total 728 — 1,183 465 2,870 645 4,580 21 18,002 23,248 23,248