Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about financial instruments [abstract]

Schedule of Maximum Exposure to Credit Risk for Financial Assets

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:

	As at December 31,
	2018		2017
	$ Thousands
	Carrying amount
Cash and cash equivalents		131,123		1,417,388
Short-term investments and deposits		49,938		7,144
Trade receivables, net		35,548		44,137
Other current assets		33,210		35,752
Deposits and other long-term receivables including derivative instruments		305,616		259,555
		555,435		1,763,976

Schedule of Maximum Exposure to Credit Risk for Trade Receivables By Geographic Region

The maximum exposure to credit risk for trade receivables, as of the date of the report, by geographic region was as follows:  

	As at December 31,
	2018		2017
	$ Thousands
Israel		35,291		44,058
Other regions		257		79
		35,548		44,137

Schedule of Aging of Trade Receivables

Set forth below is an aging of the trade receivables:

	As at December 31
	2018		2017
	$ Thousands		$ Thousands
Not past due		35,438		50
Past due up to 3 months		87		40,879
Past due 3 – 6 months		—		3,208
Past due more than one year		23		—
		35,548		44,137

Schedule of Anticipated Repayment Dates of the Financial Liabilities

Set forth below are the anticipated repayment dates of the financial liabilities, including an estimate of the interest payments. This disclosure does not include amounts regarding which there are offset agreements:

	As at December 31, 2018
	Book value		Projected cash flows		Up to 1 year		1-2 years		2-5 years		More than 5 years
	$ Thousands
Non-derivative financial liabilities
Trade payables		47,672		47,672		47,672		-		-		-
Other payables		5,885		5,885		5,885		-		-		-
Non-convertible debentures *		78,409		103,561		6,555		11,596		30,910		54,500
Loans from banks and others *		538,209		699,563		41,646		56,446		165,829		435,642
		670,175		856,681		101,758		68,042		196,739		490,142

* Includes current portion of long-term liabilities.

	As at December 31, 2017
	Book value		Projected cash flows		Up to 1 year		1-2 years		2-5 years		More than 5 years
	$ Thousands
Non-derivative financial liabilities
Loans from banks and others *		317,684		317,786		317,786		-		-		-
Trade payables		58,895		58,895		58,895		-		-		-
Other payables		77,869		77,964		77,964		-		-		-
Non-convertible debentures **		91,122		125,089		13,153		7,086		34,033		70,817
Loans from banks and others **		627,150		846,652		157,805		50,768		173,222		464,857
Financial guarantee ***		44,342		44,342		44,342		-		-		-
Financial liabilities – hedging instruments
Forward exchange rate contracts		439		439		439		-		-		-
Financial liabilities not for hedging
Derivatives on exchange rates		73		73		73		-		-		-
		1,217,574		1,471,240		670,457		57,854		207,255		535,674

* Excludes current portion of long-term liabilities and long-term liabilities which were classified to short-term.

** Includes current portion of long-term liabilities and long-term liabilities which were classified to short-term.

*** Financial Guarantees contractual period in Qoros is dependent on Qoros’s timeliness to meet the obligation of current loans payable.

Schedule of Exposure to CPI and Foreign Currency Risks

Exposure to CPI and foreign currency risks The Group’s exposure to CPI and foreign currency risk, based on nominal amounts, is as follows:

	As at December 31, 2018
	Foreign currency
	Shekel
	Unlinked		CPI linked		Other
Non-derivative instruments
Cash and cash equivalents		86,896		—		2,778
Short-term investments, deposits and loans		27,638		—		55
Trade receivables		35,291		—		44
Other receivables		286		—		26
Long-term deposits and loans		48,490		—		—
Total financial assets		198,601		—		2,903
Trade payables		23,774		—		9,968
Other payables		2,215		—		811
Loans from banks and others and debentures		163,162		450,571		—
Total financial liabilities		189,151		450,571		10,779
Total non-derivative financial instruments, net
Derivative instruments		—		—		90,184
Net exposure		—		—		90,184

	As at December 31, 2017
	Foreign currency
	Shekel
	Unlinked		CPI linked		Other
Non-derivative instruments
Cash and cash equivalents		158,679		—		18,593
Short-term investments, deposits and loans		60,855		—		—
Trade receivables		42,004		—		—
Other receivables		2,686		—		3,603
Long-term deposits and loans		25,600		—		—
Total financial assets		289,824		—		22,196
Loans from banks and others		—		—		30,308
Trade payables		31,286		—		86
Other payables		3,178		—		1,316
Long-term loans from banks and others and debentures		109,629		478,891		—
Total financial liabilities		144,093		478,891		31,710
Total non-derivative financial instruments, net		145,731		478,891		(9,514	)
Derivative instruments		—		—		(439	)
Net exposure		145,731		478,891		(9,953	)

Schedule of Sensitivity Analysis

A strengthening of the dollar exchange rate by 5%–10% against the following currencies and change of the CPI in rate of 5%–10% would have increased (decreased) the net income or net loss and the equity by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for 2015.

	As at December 31, 2018
	10% increase			5% increase			5% decrease			10% decrease
	$ Thousands
Non-derivative instruments
Shekel/dollar		(35,582	)		(18,658	)		18,658			35,582
CPI		(25,875	)		(12,937	)		10,222			10,600
	As at December 31, 2017
	10% increase			5% increase			5% decrease			10% decrease
	$ Thousands
Non-derivative instruments
Shekel/dollar		13,248			6,940			(6,940	)		(13,248	)
CPI		(43,536	)		(22,804	)		22,804			43,536

Schedule of Type of Interest Borne by Financial Instruments

Set forth below is detail of the type of interest borne by the Group’s interest-bearing financial instruments:

	As at December 31,
	2018			2017
	Carrying amount
	$ Thousands
Fixed rate instruments
Financial assets		55,027			1,438,243
Financial liabilities		(586,334	)		-
		(531,307	)		1,438,243
Variable rate instruments
Financial assets		102,392			-
Financial liabilities		-			(239,876	)
		102,392			(239,876	)

Schedule of Effect of 100 Basis Point Change on Profit and Loss

A change of 100 basis points in interest rate at reporting date would have increased/(decreased) profit and loss before tax by the amounts below. This analysis assumes that all variables, in particular foreign currency rates, remain constant.

	As at December 31, 2018
	100bp increase			100 bp decrease
	$ thousands
Variable rate instruments		1,024			(1,023	)
	As at December 31, 2017
	100bp increase			100 bp decrease
	$ thousands
Variable rate instruments		(2,399	)		2,399

Schedule of Carrying Amount and Fair Value of Financial Instrument Groups

The following table shows in detail the carrying amount and the fair value of financial instrument groups presented in the financial statements not in accordance with their fair value.

	As at December 31, 2018
	Carrying amount		Level 2
	$ thousands
Non-convertible debentures		78,409		80,998
Long-term loans from banks and others (excluding interest)		508,203		555,570
	As at December 31, 2017
	Carrying amount		Level 2
	$ thousands
Non-convertible debentures		91,122		105,488
Long-term loans from banks and others (excluding interest)		527,706		649,487

Schedule of Financial Instruments Measured at Fair Value

The following table presents an analysis of the financial instruments measured at fair value, using an evaluation method. The various levels were defined as follows:

– Level 1: Quoted prices (not adjusted) in an active market for identical instruments.

– Level 2: Observed data, direct or indirect, not included in Level 1 above.

– Level 3: Data not based on observed market data.

	As at		As at
	December 31, 2018		December 31, 2017
	Level 3		Level 2
	$ Thousands		$ Thousands
Assets
Qoros put option		90,103		-
Derivatives not used for accounting hedge		-		1,471
		90,103		1,471
Liabilities
Derivatives used for accounting hedge		-		439
Derivatives not used for accounting hedge		-		73
		-		512

Schedule of Valuation Techniques Used in Measuring Level 2 Fair Values

The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values as at December 31, 2018 and 2017, as well as the significant unobservable inputs used.

Type	Valuation technique	Significant unobservable data	Inter-relationship between significant unobservable inputs and fair value measurement
Interest rate Swaps	The Group applies standard valuation techniques such as: discounted cash flows for fixed and variables coupons (estimated with forward curves) using as discounted rates the projected LIBOR zero coupon curve. The observable inputs are obtained through market information suppliers.	Not applicable	Not applicable
Put Options	The Group applies standard valuation techniques such as: Binomial model using risk free rates from market information suppliers.	The group researched on data from comparable companies on inputs such as expected volatility and credit risk.	The estimated fair value would increase(decrease) if: -          the volatility is higher (lower)   -          the credit risk is lower (higher)
Foreign Exchange Forwards	The Group applies standard valuation techniques which include market observable parameters such as the implicit exchange rate calculated with forward points. These variables are obtained through market information suppliers.	Not applicable	Not applicable
Credit from banks, others and debentures	Discounted cash flows with market interest rate	Not applicable	Not applicable
Marketable Securities held for trade	DLOM valuation method	Not applicable	Not applicable