(all amounts in thousands of U.S. dollars, unless otherwise stated)
|
Year ended December 31,
|
|||
Notes
|
2015
|
2014
|
2013
|
|
Continuing operations
|
|
|
||
Net sales
|
1
|
7,100,753
|
10,337,962
|
10,596,781
|
Cost of sales
|
2
|
(4,885,078)
|
(6,287,460)
|
(6,456,786)
|
Gross profit
|
2,215,675
|
4,050,502
|
4,139,995
|
|
Selling, general and administrative expenses
|
3
|
(1,624,275)
|
(1,963,952)
|
(1,941,213)
|
Other operating income
|
5
|
14,603
|
27,855
|
14,305
|
Other operating expenses
|
5
|
(410,575)
|
(215,589)
|
(28,257)
|
Operating income
|
195,428
|
1,898,816
|
2,184,830
|
|
Finance Income
|
6
|
34,574
|
38,211
|
34,767
|
Finance Cost
|
6
|
(23,058)
|
(44,388)
|
(70,450)
|
Other financial results
|
6
|
2,694
|
39,214
|
7,004
|
Income before equity in earnings of non-consolidated companies and income tax
|
209,638
|
1,931,853
|
2,156,151
|
|
Equity in earnings (losses) of non-consolidated companies
|
7
|
(39,558)
|
(164,616)
|
46,098
|
Income before income tax
|
170,080
|
1,767,237
|
2,202,249
|
|
Income tax
|
8
|
(244,505)
|
(586,061)
|
(627,877)
|
(Loss) Income for the year
|
(74,425)
|
1,181,176
|
1,574,372
|
|
Attributable to:
|
|
|||
Owners of the parent
|
(80,162)
|
1,158,517
|
1,551,394
|
|
Non-controlling interests
|
5,737
|
22,659
|
22,978
|
|
(74,425)
|
1,181,176
|
1,574,372
|
||
Earnings per share attributable to the owners of the parent during the period:
|
|
|||
Weighted average number of ordinary shares (thousands)
|
1,180,537
|
1,180,537
|
1,180,537
|
|
Continuing operations
|
||||
Basic and diluted (loss) earnings per share (U.S. dollars per share)
|
(0.07)
|
0.98
|
1.31
|
|
Basic and diluted (loss) earnings per ADS (U.S. dollars per ADS) (*)
|
(0.14)
|
1.96
|
2.63
|
(all amounts in thousands of U.S. dollars)
|
Year ended December 31,
|
||
2015
|
2014
|
2013
|
|
|
|
||
(Loss) Income for the year
|
(74,425)
|
1,181,176
|
1,574,372
|
Items that will not be reclassified to profit or loss:
|
|||
Remeasurements of post employment benefit obligations
|
14,181
|
1,850
|
18,314
|
Income tax on items that will not be reclassified
|
(4,242)
|
(513)
|
(4,865)
|
9,939
|
1,337
|
13,449
|
|
Items that may be subsequently reclassified to profit or loss:
|
|
||
Currency translation adjustment
|
(256,260)
|
(197,711)
|
(1,941)
|
Change in value of cash flow hedges and available for sale financial instruments
|
13,185
|
(10,483)
|
2,941
|
Share of other comprehensive income of non-consolidated companies:
|
|
||
- Currency translation adjustment
|
(92,914)
|
(54,688)
|
(87,666)
|
- Changes in the fair value of derivatives held as cash flow hedges and others
|
(4,239)
|
(3,857)
|
2,682
|
Income tax related to cash flow hedges and available for sale financial instruments
|
(284)
|
400
|
478
|
(340,512)
|
(266,339)
|
(83,506)
|
|
Other comprehensive (loss) for the year, net of tax
|
(330,573)
|
(265,002)
|
(70,057)
|
Total comprehensive (loss) income for the year
|
(404,998)
|
916,174
|
1,504,315
|
Attributable to:
|
|
||
Owners of the parent
|
(410,187)
|
894,929
|
1,480,572
|
Non-controlling interests
|
5,189
|
21,245
|
23,743
|
(404,998)
|
916,174
|
1,504,315
|
(all amounts in thousands of U.S. dollars)
|
|
At December 31, 2015
|
At December 31, 2014
|
|||
Notes
|
|
|||||
ASSETS
|
|
|
|
|||
Non-current assets
|
|
|
|
|||
Property, plant and equipment, net
|
10
|
5,672,258
|
|
5,159,557
|
||
Intangible assets, net
|
11
|
2,143,452
|
|
2,757,630
|
||
Investments in non-consolidated companies
|
12
|
490,645
|
|
643,630
|
||
Available for sale assets
|
30
|
21,572
|
|
21,572
|
||
Other investments
|
18
|
394,746
|
|
1,539
|
||
Deferred tax assets
|
20
|
200,706
|
|
268,252
|
||
Receivables
|
13
|
220,564
|
9,143,943
|
262,176
|
9,114,356
|
|
Current assets
|
|
|
|
|
||
Inventories
|
14
|
1,843,467
|
|
2,779,869
|
||
Receivables and prepayments
|
15
|
148,846
|
|
267,631
|
||
Current tax assets
|
16
|
188,180
|
|
129,404
|
||
Trade receivables
|
17
|
1,135,129
|
|
1,963,394
|
||
Other investments
|
18
|
2,140,862
|
|
1,838,379
|
||
Cash and cash equivalents
|
18
|
286,547
|
5,743,031
|
417,645
|
7,396,322
|
|
Total assets
|
|
|
14,886,974
|
|
16,510,678
|
|
EQUITY
|
|
|
|
|
||
Capital and reserves attributable to owners of the parent
|
|
|
11,713,344
|
|
12,654,114
|
|
Non-controlling interests
|
|
|
152,712
|
|
152,200
|
|
Total equity
|
|
|
11,866,056
|
|
12,806,314
|
|
LIABILITIES
|
|
|
|
|
||
Non-current liabilities
|
|
|
|
|
||
Borrowings
|
19
|
223,221
|
|
30,833
|
||
Deferred tax liabilities
|
20
|
750,325
|
|
714,123
|
||
Other liabilities
|
21 (i)
|
231,176
|
|
285,865
|
||
Provisions
|
22 (ii)
|
61,421
|
1,266,143
|
70,714
|
1,101,535
|
|
Current liabilities
|
|
|
|
|
||
Borrowings
|
19
|
748,295
|
|
968,407
|
||
Current tax liabilities
|
16
|
136,018
|
|
352,353
|
||
Other liabilities
|
21 (ii)
|
222,842
|
|
296,277
|
||
Provisions
|
23 (ii)
|
8,995
|
|
20,380
|
||
Customer advances
|
|
134,780
|
|
133,609
|
||
Trade payables
|
|
503,845
|
1,754,775
|
831,803
|
2,602,829
|
|
Total liabilities
|
|
|
3,020,918
|
|
3,704,364
|
|
Total equity and liabilities
|
|
|
14,886,974
|
|
16,510,678
|
|
Attributable to owners of the parent
|
||||||||||||||||||||||||||||||||||||
Share Capital (1)
|
Legal Reserves
|
Share Premium
|
Currency Translation Adjustment
|
Other Reserves (2)
|
Retained Earnings (3)
|
Total
|
Non-controlling interests
|
Total
|
||||||||||||||||||||||||||||
Balance at December 31, 2014
|
1,180,537
|
118,054
|
609,733
|
(658,284
|
)
|
(317,799
|
)
|
11,721,873
|
12,654,114
|
152,200
|
12,806,314
|
|||||||||||||||||||||||||
(Loss) income for the year
|
-
|
-
|
-
|
-
|
-
|
(80,162
|
)
|
(80,162
|
)
|
5,737
|
(74,425
|
)
|
||||||||||||||||||||||||
Currency translation adjustment
|
-
|
-
|
-
|
(255,569
|
)
|
-
|
-
|
(255,569
|
)
|
(691
|
)
|
(256,260
|
)
|
|||||||||||||||||||||||
Remeasurements of post employment benefit obligations, net of taxes
|
-
|
-
|
-
|
-
|
10,213
|
-
|
10,213
|
(274
|
)
|
9,939
|
||||||||||||||||||||||||||
Change in value of available for sale financial instruments and cash flow hedges net of tax
|
-
|
-
|
-
|
-
|
12,484
|
-
|
12,484
|
417
|
12,901
|
|||||||||||||||||||||||||||
Share of other comprehensive income of non-consolidated companies
|
-
|
-
|
-
|
(92,914
|
)
|
(4,239
|
)
|
-
|
(97,153
|
)
|
-
|
(97,153
|
)
|
|||||||||||||||||||||||
Other comprehensive (loss) income for the year
|
-
|
-
|
-
|
(348,483
|
)
|
18,458
|
-
|
(330,025
|
)
|
(548
|
)
|
(330,573
|
)
|
|||||||||||||||||||||||
Total comprehensive (loss) income for the year
|
-
|
-
|
-
|
(348,483
|
)
|
18,458
|
(80,162
|
)
|
(410,187
|
)
|
5,189
|
(404,998
|
)
|
|||||||||||||||||||||||
Acquisition of non-controlling interests
|
-
|
-
|
-
|
-
|
659
|
-
|
659
|
(1,727
|
)
|
(1,068
|
)
|
|||||||||||||||||||||||||
Dividends paid in cash
|
-
|
-
|
-
|
-
|
-
|
(531,242
|
)
|
(531,242
|
)
|
(2,950
|
)
|
(534,192
|
)
|
|||||||||||||||||||||||
Balance at December 31, 2015
|
1,180,537
|
118,054
|
609,733
|
(1,006,767
|
)
|
(298,682
|
)
|
11,110,469
|
11,713,344
|
152,712
|
11,866,056
|
(all amounts in thousands of U.S. dollars)
|
Attributable to owners of the parent
|
|||||||||||||||||||||||||||||||||||
Share Capital (1)
|
Legal Reserves
|
Share Premium
|
Currency Translation Adjustment
|
Other Reserves (2)
|
Retained Earnings
|
Total
|
Non-controlling interests
|
Total
|
||||||||||||||||||||||||||||
Balance at December 31, 2013
|
1,180,537
|
118,054
|
609,733
|
(406,744
|
)
|
(305,758
|
)
|
11,094,598
|
12,290,420
|
179,446
|
12,469,866
|
|||||||||||||||||||||||||
Income for the year
|
-
|
-
|
-
|
-
|
-
|
1,158,517
|
1,158,517
|
22,659
|
1,181,176
|
|||||||||||||||||||||||||||
Currency translation adjustment
|
-
|
-
|
-
|
(196,852
|
)
|
-
|
-
|
(196,852
|
)
|
(859
|
)
|
(197,711
|
)
|
|||||||||||||||||||||||
Remeasurements of post employment benefit obligations, net of taxes
|
-
|
-
|
-
|
-
|
1,503
|
-
|
1,503
|
(166
|
)
|
1,337
|
||||||||||||||||||||||||||
Change in value of available for sale financial instruments and cash flow hedges net of tax
|
-
|
-
|
-
|
-
|
(9,694
|
)
|
-
|
(9,694
|
)
|
(389
|
)
|
(10,083
|
)
|
|||||||||||||||||||||||
Share of other comprehensive income of non-consolidated companies
|
-
|
-
|
-
|
(54,688
|
)
|
(3,857
|
)
|
-
|
(58,545
|
)
|
-
|
(58,545
|
)
|
|||||||||||||||||||||||
Other comprehensive (loss) income for the year
|
-
|
-
|
-
|
(251,540
|
)
|
(12,048
|
)
|
-
|
(263,588
|
)
|
(1,414
|
)
|
(265,002
|
)
|
||||||||||||||||||||||
Total comprehensive income for the year
|
-
|
-
|
-
|
(251,540
|
)
|
(12,048
|
)
|
1,158,517
|
894,929
|
21,245
|
916,174
|
|||||||||||||||||||||||||
Acquisition of non-controlling interests
|
-
|
-
|
-
|
-
|
7
|
-
|
7
|
(152
|
)
|
(145
|
)
|
|||||||||||||||||||||||||
Dividends paid in cash
|
-
|
-
|
-
|
-
|
-
|
(531,242
|
)
|
(531,242
|
)
|
(48,339
|
)
|
(579,581
|
)
|
|||||||||||||||||||||||
Balance at December 31, 2014
|
1,180,537
|
118,054
|
609,733
|
(658,284
|
)
|
(317,799
|
)
|
11,721,873
|
12,654,114
|
152,200
|
12,806,314
|
Attributable to owners of the parent
|
||||||||||||||||||||||||||||||||||||
Share Capital (1)
|
Legal Reserves
|
Share Premium
|
Currency Translation Adjustment
|
Other Reserves (2)
|
Retained Earnings
|
Total
|
Non-controlling interests
|
Total
|
||||||||||||||||||||||||||||
Balance at December 31, 2012
|
1,180,537
|
118,054
|
609,733
|
(316,831
|
)
|
(314,297
|
)
|
10,050,835
|
11,328,031
|
171,561
|
11,499,592
|
|||||||||||||||||||||||||
Income for the year
|
-
|
-
|
-
|
-
|
-
|
1,551,394
|
1,551,394
|
22,978
|
1,574,372
|
|||||||||||||||||||||||||||
Currency translation adjustment
|
-
|
-
|
-
|
(2,247
|
)
|
-
|
-
|
(2,247
|
)
|
306
|
(1,941
|
)
|
||||||||||||||||||||||||
Effect of adopting IAS 19R
|
-
|
-
|
-
|
-
|
13,449
|
-
|
13,449
|
-
|
13,449
|
|||||||||||||||||||||||||||
Hedge reserve, net of tax
|
-
|
-
|
-
|
-
|
2,960
|
-
|
2,960
|
459
|
3,419
|
|||||||||||||||||||||||||||
Share of other comprehensive income of non-consolidated companies
|
-
|
-
|
-
|
(87,666
|
)
|
2,682
|
-
|
(84,984
|
)
|
-
|
(84,984
|
)
|
||||||||||||||||||||||||
Other comprehensive (loss) income for the year
|
-
|
-
|
-
|
(89,913
|
)
|
19,091
|
-
|
(70,822
|
)
|
765
|
(70,057
|
)
|
||||||||||||||||||||||||
Total comprehensive income for the year
|
-
|
-
|
-
|
(89,913
|
)
|
19,091
|
1,551,394
|
1,480,572
|
23,743
|
1,504,315
|
||||||||||||||||||||||||||
Acquisition of non-controlling interests
|
-
|
-
|
-
|
-
|
(10,552
|
)
|
-
|
(10,552
|
)
|
2,784
|
(7,768
|
)
|
||||||||||||||||||||||||
Dividends paid in cash
|
-
|
-
|
-
|
-
|
-
|
(507,631
|
)
|
(507,631
|
)
|
(18,642
|
)
|
(526,273
|
)
|
|||||||||||||||||||||||
Balance at December 31, 2013
|
1,180,537
|
118,054
|
609,733
|
(406,744
|
)
|
(305,758
|
)
|
11,094,598
|
12,290,420
|
179,446
|
12,469,866
|
(1) | The Company has an authorized share capital of a single class of 2.5 billion shares having a nominal value of $1.00 per share. As of December 31, 2014 and 2013 there were 1,180,536,830 shares issued. All issued shares are fully paid. |
(2) | Other reserves include mainly the result of transactions with non-controlling interest that do not result in a loss of control, the remeasurement of post-employment benefit obligations and the changes in value of cash flow hedges and in available for sale financial instruments. |
(all amounts in thousands of U.S. dollars)
|
Year ended December 31,
|
|||
Notes
|
2015
|
2014
|
2013
|
|
Cash flows from operating activities
|
|
|
||
(Loss) income for the year
|
(74,425)
|
1,181,176
|
1,574,372
|
|
Adjustments for:
|
|
|||
Depreciation and amortization
|
10 & 11
|
658,778
|
615,629
|
610,054
|
Impairment charge
|
5
|
400,314
|
205,849
|
-
|
Income tax accruals less payments
|
27(ii)
|
(91,080)
|
79,062
|
125,416
|
Equity in (earnings) losses of non-consolidated companies
|
7
|
39,558
|
164,616
|
(46,098)
|
Interest accruals less payments, net
|
27(iii)
|
(1,975)
|
(37,192)
|
(29,723)
|
Changes in provisions
|
|
(20,678)
|
(4,982)
|
(1,800)
|
Changes in working capital
|
27(i)
|
1,373,985
|
(72,066)
|
188,780
|
Other, including currency translation adjustment
|
|
(69,473)
|
(88,025)
|
(43,649)
|
Net cash provided by operating activities
|
|
2,215,004
|
2,044,067
|
2,377,352
|
|
||||
Cash flows from investing activities
|
|
|||
Capital expenditures
|
10 & 11
|
(1,131,519)
|
(1,089,373)
|
(753,498)
|
Changes in advance to suppliers of property, plant and equipment
|
|
49,461
|
(63,390)
|
(22,234)
|
Investment in non-consolidated companies
|
12 c
|
(4,400)
|
(1,380)
|
-
|
Acquisition of subsidiaries and non-consolidated companies
|
26
|
-
|
(28,060)
|
-
|
Net loan to non-consolidated companies
|
|
(22,322)
|
(21,450)
|
-
|
Proceeds from disposal of property, plant and equipment and intangible assets
|
|
10,090
|
11,156
|
33,186
|
Dividends received from non-consolidated companies
|
12
|
20,674
|
17,735
|
16,334
|
Changes in investments in securities
|
|
(695,566)
|
(611,049)
|
(582,921)
|
Net cash used in investing activities
|
|
(1,773,582)
|
(1,785,811)
|
(1,309,133)
|
|
||||
Cash flows from financing activities
|
|
|||
Dividends paid
|
9
|
(531,242)
|
(531,242)
|
(507,631)
|
Dividends paid to non-controlling interest in subsidiaries
|
|
(2,950)
|
(48,339)
|
(18,642)
|
Acquisitions of non-controlling interests
|
|
(1,068)
|
(145)
|
(7,768)
|
Proceeds from borrowings (*)
|
|
2,064,218
|
3,046,837
|
2,460,409
|
Repayments of borrowings (*)
|
|
(2,063,992)
|
(2,890,717)
|
(3,143,241)
|
Net cash used in financing activities
|
|
(535,034)
|
(423,606)
|
(1,216,873)
|
|
||||
Decrease in cash and cash equivalents
|
|
(93,612)
|
(165,350)
|
(148,654)
|
Movement in cash and cash equivalents
|
|
|||
At the beginning of the year
|
|
416,445
|
598,145
|
772,656
|
Effect of exchange rate changes
|
|
(36,635)
|
(16,350)
|
(25,857)
|
Decrease in cash and cash equivalents
|
|
(93,612)
|
(165,350)
|
(148,654)
|
At December 31,
|
27(iv)
|
286,198
|
416,445
|
598,145
|
|
||||
|
At December 31,
|
|||
Cash and cash equivalents
|
|
2015
|
2014
|
2013
|
Cash and bank deposits
|
18
|
286,547
|
417,645
|
614,529
|
Bank overdrafts
|
19
|
(349)
|
(1,200)
|
(16,384)
|
|
286,198
|
416,445
|
598,145
|
I.
|
GENERAL INFORMATION
|
IV.
|
OTHER NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|
1
|
Segment information
|
||
II.
|
ACCOUNTING POLICIES ("AP")
|
2
|
Cost of sales
|
A
|
Basis of presentation
|
3
|
Selling, general and administrative expenses
|
B
|
Group accounting
|
4
|
Labor costs (included in Cost of sales and in Selling, general and administrative expenses)
|
C
|
Segment information
|
5
|
Other operating income and expenses
|
D
|
Foreign currency translation
|
6
|
Financial results
|
E
|
Property, plant and equipment
|
7
|
Equity in earnings (losses) of non-consolidated companies
|
F
|
Intangible assets
|
8
|
Income tax
|
G
|
Impairment of non-financial assets
|
9
|
Dividends distribution
|
H
|
Other investments
|
10
|
Property, plant and equipment, net
|
I
|
Inventories
|
11
|
Intangible assets, net
|
J
|
Trade and other receivables
|
12
|
Investments in non-consolidated companies
|
K
|
Cash and cash equivalents
|
13
|
Receivables - non current
|
L
|
Equity
|
14
|
Inventories
|
M
|
Borrowings
|
15
|
Receivables and prepayments
|
N
|
Current and Deferred income tax
|
16
|
Current tax assets and liabilities
|
O
|
Employee benefits
|
17
|
Trade receivables
|
P
|
Provisions
|
18
|
Cash and cash equivalents and Other investments
|
Q
|
Trade payables
|
19
|
Borrowings
|
R
|
Revenue recognition
|
20
|
Deferred income tax
|
S
|
Cost of sales and sales expenses
|
21
|
Other liabilities
|
T
|
Earnings per share
|
22
|
Non-current allowances and provisions
|
U
|
Financial instruments
|
23
|
Current allowances and provisions
|
24
|
Derivative financial instruments
|
||
25
|
Contingencies, commitments and restrictions on the distribution of profits
|
||
III.
|
FINANCIAL RISK MANAGEMENT
|
26
|
Acquisition of subsidiaries and non-consolidated companies
|
27
|
Cash flow disclosures
|
||
A
|
Financial Risk Factors
|
28
|
Related party transactions
|
B
|
Financial instruments by category
|
29
|
Principal subsidiaries
|
C
|
Fair value hierarchy
|
30
|
Nationalization of Venezuelan Subsidiaries
|
D
|
Fair value estimation
|
31
|
Fees paid to the Company's principal accountant
|
E
|
Accounting for derivative financial instruments and hedging activities
|
32
|
Subsequent event
|
(1) | New and amended standards not yet adopted and relevant for Tenaris |
(1) | New and amended standards not yet adopted and relevant for Tenaris (Cont.) |
(2) | New and amended standards adopted for Tenaris |
§ | Both the Company and Ternium are under the indirect common control of San Faustin S.A.; |
§ | Four out of eight members of Ternium's Board of Directors (including Ternium's chairman) are also members of the Company's Board of Directors; |
§ | Under the shareholders' agreement by and between the Company and Techint Holdings S.à r.l, a wholly owned subsidiary of San Faustin S.A. and Ternium's main shareholder, dated January 9, 2006, Techint Holdings S.à r.l, is required to take actions within its power to cause (a) one of the members of Ternium's Board of Directors to be nominated by the Company and (b) any director nominated by the Company to be only removed from Ternium's Board of Directors pursuant to previous written instructions of the Company. |
§ | The use of direct cost methodology to calculate the inventories, while under IFRS it is at full cost, including absorption of production overheads and depreciations; |
§ | The use of costs based on previously internally defined cost estimates, while, under IFRS, costs are calculated at historical cost; |
§ | Other timing differences. |
§ | Sales are mainly negotiated, denominated and settled in U.S. dollars. If priced in a currency other than the U.S. dollar, the sales price considers exposure to fluctuation in the exchange rate versus the U.S. dollar; |
§ | Prices of their critical raw materials and inputs are priced and settled in U.S. dollars; |
§ | Transaction and operational environment and the cash flow of these operations have the U.S. dollars as reference currency; |
§ | Significant level of integration of the local operations within Tenaris' international global distribution network; |
§ | Net financial assets and liabilities are mainly received and maintained in U.S. dollars; |
§ | The exchange rate of certain legal currencies has long-been affected by recurring and severe economic crises. |
§ | D | Foreign currency translation (Cont.) |
Land
|
No Depreciation
|
|
Buildings and improvements
|
30-50 years
|
|
Plant and production equipment
|
10-40 years
|
|
Vehicles, furniture and fixtures, and other equipment
|
4-10 years
|
(5) | Customer relationships |
§ | The value of share capital, legal reserve, share premium and other distributable reserves calculated in accordance with Luxembourg law; |
§ | The currency translation adjustment, other reserves, retained earnings and non-controlling interest calculated in accordance with IFRS. |
(1) | Post employment benefits |
§ | An unfunded defined benefit employee retirement plan for certain senior officers. The plan is designed to provide certain benefits to those officers (additional to those contemplated under applicable labor laws) in case of termination of the employment relationship due to certain specified events, including retirement. This unfunded plan provides defined benefits based on years of service and final average salary. |
§ | Employees' service rescission indemnity: the cost of this obligation is charged to the Consolidated Income Statement over the expected service lives of employees. This provision is primarily related to the liability accrued for employees at Tenaris' Italian subsidiary. As from January 1, 2007 as a consequence of a change in an Italian law, employees were entitled to make contributions to external funds, thus, Tenaris' Italian subsidiary pays every year the required contribution to the funds with no further obligation. As a result, the plan changed from a defined benefit plan to a defined contribution plan effective from that date, but only limited to the contributions of 2007 onwards. |
§ | Funded retirement benefit plans held in Canada for salary and hourly employees hired prior a certain date based on years of service and, in the case of salaried employees, final average salary. Plan assets consist primarily of investments in equities and money market funds. Both plans were replaced for defined contribution plans. Effective June 2016 the salary plan will be frozen for the purposes of credited service as well as determination of final average pay. |
§ | Funded retirement benefit plan held in the US for the benefit of some employees hired prior a certain date, frozen for the purposes of credited service as well as determination of final average pay for the retirement benefit calculation. Plan assets consist primarily of investments in equities and money market funds. Additionally, an unfunded postretirement health and life plan that offers limited medical and life insurance benefits to the retirees, hired before a certain date. |
(2) | Other long term benefits |
(3) | Other compensation obligations |
§ | Construction contracts (mainly applicable to Tenaris Brazilian subsidiaries and amounted to 1.55% of total sales). The revenue recognition of the contracts follows the IAS 11 guidance, that means, when the outcome of a construction contract can be estimated reliably and it is probable that the contract will be profitable, contract revenue is recognized over the period of the contract by reference to the stage of completion (measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract). |
§ | Interest income: on the effective yield basis. |
§ | Dividend income from investments in other companies: when Tenaris' right to receive payment is established. |
§ | Financial instruments at fair value through profit and loss: comprise mainly Other Investments expiring in less than ninety days from the measurement date (included within cash and cash equivalents) and investments in certain financial debt instruments and time deposits held for trading. |
§ | Loans and receivables: comprise cash and cash equivalents, trade receivables and other receivables and are measured at amortized cost using the effective interest rate method less any impairment. |
§ | Available for sale assets: comprise the Company's interest in the Venezuelan Companies (see Note 30). |
§ | Held to maturity: comprise financial assets that the Company has both the ability and the intention to hold to maturity. They are measured at amortized cost using the effective interest method. |
§ | Other financial liabilities: comprise borrowings, trade and other payables and are measured at amortized cost using the effective interest rate method. |
All amounts Long / (Short) in thousands of U.S. dollars
|
As of December 31,
|
|||||||
Currency Exposure / Functional currency
|
2015
|
2014
|
||||||
Argentine Peso / U.S. Dollar
|
(73,399
|
)
|
(191,095
|
)
|
||||
Euro / U.S. Dollar
|
(334,831
|
)
|
(189,366
|
)
|
||||
Brazilian Real / U.S. Dollar
|
(66,826
|
)
|
150,486
|
|||||
§ | Argentine Peso / U.S. dollar |
§ | Euro / U.S. dollar |
As of December 31,
|
||||||||||||||||
2015
|
2014
|
|||||||||||||||
Amount in thousands of U.S. dollars
|
%
|
Amount in thousands of U.S. dollars
|
%
|
|||||||||||||
Fixed rate (short term financing)
|
954,681
|
98
|
%
|
755,498
|
76
|
%
|
||||||||||
Variable rate
|
16,835
|
2
|
%
|
243,742
|
24
|
%
|
||||||||||
Total (*)
|
971,516
|
999,240
|
December 31, 2015
|
Assets at fair value through profit and loss
|
Held to maturity
|
Loans and receivables
|
Available for sale
|
Total
|
|||||||||||||||
Assets as per statement of financial position
|
||||||||||||||||||||
Derivative financial instruments
|
18,248
|
-
|
-
|
-
|
18,248
|
|||||||||||||||
Trade receivables
|
-
|
-
|
1,135,129
|
-
|
1,135,129
|
|||||||||||||||
Other receivables
|
-
|
-
|
131,896
|
-
|
131,896
|
|||||||||||||||
Available for sale assets (See note 30)
|
-
|
-
|
-
|
21,572
|
21,572
|
|||||||||||||||
Other investments
|
2,142,524
|
393,084
|
-
|
-
|
2,535,608
|
|||||||||||||||
Cash and cash equivalents
|
185,528
|
-
|
101,019
|
-
|
286,547
|
|||||||||||||||
Total
|
2,346,300
|
393,084
|
1,368,044
|
21,572
|
4,129,000
|
December 31, 2015
|
Liabilities at fair value through profit and loss
|
Other financial liabilities
|
Total
|
|||||||||
Liabilities as per statement of financial position
|
||||||||||||
Borrowings
|
-
|
971,516
|
971,516
|
|||||||||
Derivative financial instruments
|
34,540
|
-
|
34,540
|
|||||||||
Trade and other payables
|
-
|
518,714
|
518,714
|
|||||||||
Total
|
34,540
|
1,490,230
|
1,524,770
|
December 31, 2014
|
Assets at fair value through profit and loss
|
Loans and receivables
|
Available for sale
|
Total
|
||||||||||||
Assets as per statement of financial position
|
||||||||||||||||
Derivative financial instruments
|
25,588
|
-
|
-
|
25,588
|
||||||||||||
Trade receivables
|
-
|
1,963,394
|
-
|
1,963,394
|
||||||||||||
Other receivables
|
-
|
172,190
|
-
|
172,190
|
||||||||||||
Available for sale assets (See note 30)
|
-
|
-
|
21,572
|
21,572
|
||||||||||||
Other investments
|
1,452,159
|
-
|
387,759
|
1,839,918
|
||||||||||||
Cash and cash equivalents
|
296,873
|
120,772
|
-
|
417,645
|
||||||||||||
Total
|
1,774,620
|
2,256,356
|
409,331
|
4,440,307
|
December 31, 2014
|
Liabilities at fair value through profit and loss
|
Other financial liabilities
|
Total
|
|||||||||
Liabilities as per statement of financial position
|
||||||||||||
Borrowings
|
-
|
999,240
|
999,240
|
|||||||||
Derivative financial instruments
|
56,834
|
-
|
56,834
|
|||||||||
Trade and other payables
|
-
|
866,688
|
866,688
|
|||||||||
Total
|
56,834
|
1,865,928
|
1,922,762
|
December 31, 2015
|
Level 1
|
Level 2
|
Level 3 (*)
|
Total
|
||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
185,528
|
-
|
-
|
185,528
|
||||||||||||
Other investments
|
1,348,269
|
792,593
|
1,662
|
2,142,524
|
||||||||||||
Derivatives financial instruments
|
-
|
18,250
|
-
|
18,250
|
||||||||||||
Available for sale assets (*)
|
-
|
-
|
21,572
|
21,572
|
||||||||||||
Total
|
1,533,797
|
810,843
|
23,234
|
2,367,874
|
||||||||||||
Liabilities
|
||||||||||||||||
Derivatives financial instruments
|
-
|
34,540
|
-
|
34,540
|
||||||||||||
Total
|
-
|
34,540
|
-
|
34,540
|
December 31, 2014
|
Level 1
|
Level 2
|
Level 3 (*)
|
Total
|
||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
296,873
|
-
|
-
|
296,873
|
||||||||||||
Other investments
|
1,277,465
|
560,914
|
1,539
|
1,839,918
|
||||||||||||
Derivatives financial instruments
|
-
|
25,588
|
-
|
25,588
|
||||||||||||
Available for sale assets (*)
|
-
|
-
|
21,572
|
21,572
|
||||||||||||
Total
|
1,574,338
|
586,502
|
23,111
|
2,183,951
|
||||||||||||
Liabilities
|
||||||||||||||||
Derivatives financial instruments
|
-
|
56,834
|
-
|
56,834
|
||||||||||||
Total
|
-
|
56,834
|
-
|
56,834
|
Year ended December 31,
|
||||||||
2015
|
2014
|
|||||||
Assets / Liabilities
|
||||||||
At the beginning of the period
|
23,111
|
24,070
|
||||||
Currency translation adjustment and others
|
123
|
(959
|
)
|
|||||
At the end of the year
|
23,234
|
23,111
|
(all amounts in thousands of U.S. dollars)
|
||||||||||||
Year ended December 31, 2015
|
Tubes
|
Other
|
Total
|
|||||||||
IFRS - Net Sales
|
6,443,814
|
656,939
|
7,100,753
|
|||||||||
Management View - Operating income
|
685,870
|
66,431
|
752,301
|
|||||||||
· Differences in cost of sales and others
|
(228,948
|
)
|
(9,794
|
)
|
(238,742
|
)
|
||||||
· Differences in impairment / Depreciation and amortization
|
(319,293
|
)
|
1,162
|
(318,131
|
)
|
|||||||
IFRS - Operating income
|
137,629
|
57,799
|
195,428
|
|||||||||
Financial income (expense), net
|
14,210
|
|||||||||||
Income before equity in earnings of non-consolidated companies and income tax
|
209,638
|
|||||||||||
Equity in losses of non-consolidated companies
|
(39,558
|
)
|
||||||||||
Income before income tax
|
170,080
|
|||||||||||
Capital expenditures
|
1,088,901
|
42,618
|
1,131,519
|
|||||||||
Depreciation and amortization
|
638,456
|
20,322
|
658,778
|
(all amounts in thousands of U.S. dollars)
|
||||||||||||
Year ended December 31, 2014
|
Tubes
|
Other
|
Total
|
|||||||||
IFRS - Net Sales
|
9,581,615
|
756,347
|
10,337,962
|
|||||||||
Management View - Operating income
|
2,022,429
|
27,735
|
2,050,164
|
|||||||||
· Differences in cost of sales and others
|
(35,463
|
)
|
5,197
|
(30,266
|
)
|
|||||||
· Depreciation and amortization/Impairment
|
(121,289
|
)
|
207
|
(121,082
|
)
|
|||||||
IFRS - Operating income
|
1,865,677
|
33,139
|
1,898,816
|
|||||||||
Financial income (expense), net
|
33,037
|
|||||||||||
Income before equity in earnings of non-consolidated companies and income tax
|
1,931,853
|
|||||||||||
Equity in losses of non-consolidated companies
|
(164,616
|
)
|
||||||||||
Income before income tax
|
1,767,237
|
|||||||||||
Capital expenditures
|
1,051,148
|
38,225
|
1,089,373
|
|||||||||
Depreciation and amortization
|
593,671
|
21,958
|
615,629
|
(all amounts in thousands of U.S. dollars)
|
||||||||||||
Year ended December 31, 2013
|
Tubes
|
Other
|
Total
|
|||||||||
IFRS - Net Sales
|
9,812,295
|
784,486
|
10,596,781
|
|||||||||
Management View - Operating income
|
2,098,160
|
91,265
|
2,189,425
|
|||||||||
· Differences in cost of sales and others
|
(1,855
|
)
|
(3,337
|
)
|
(5,192
|
)
|
||||||
· Depreciation and amortization
|
711
|
(114
|
)
|
597
|
||||||||
IFRS - Operating income
|
2,097,016
|
87,814
|
2,184,830
|
|||||||||
Financial income (expense), net
|
(28,679
|
)
|
||||||||||
Income before equity in earnings of non-consolidated companies and income tax
|
2,156,151
|
|||||||||||
Equity in earnings of non-consolidated companies
|
46,098
|
|||||||||||
Income before income tax
|
2,202,249
|
|||||||||||
Capital expenditures
|
721,869
|
31,629
|
753,498
|
|||||||||
Depreciation and amortization
|
589,482
|
20,572
|
610,054
|
(all amounts in thousands of U.S. dollars)
|
North America
|
South America
|
Europe
|
Middle East & Africa
|
Far East & Oceania
|
Unallocated (*)
|
Total
|
|||||||||||||||||||||
Year ended December 31, 2015
|
||||||||||||||||||||||||||||
Net sales
|
2,865,041
|
2,133,534
|
728,815
|
1,096,688
|
276,675
|
-
|
7,100,753
|
|||||||||||||||||||||
Total assets
|
8,713,235
|
2,931,297
|
1,877,429
|
429,317
|
423,479
|
512,217
|
14,886,974
|
|||||||||||||||||||||
Trade receivables
|
367,439
|
396,834
|
181,084
|
137,278
|
52,494
|
-
|
1,135,129
|
|||||||||||||||||||||
Property, plant and equipment, net
|
3,253,317
|
1,269,995
|
907,466
|
86,181
|
155,299
|
-
|
5,672,258
|
|||||||||||||||||||||
Capital expenditures
|
823,602
|
168,140
|
82,344
|
36,867
|
20,566
|
-
|
1,131,519
|
|||||||||||||||||||||
Depreciation and amortization
|
390,654
|
125,754
|
112,742
|
9,912
|
19,716
|
-
|
658,778
|
|||||||||||||||||||||
Year ended December 31, 2014
|
||||||||||||||||||||||||||||
Net sales
|
4,977,239
|
2,125,984
|
979,042
|
1,843,778
|
411,919
|
-
|
10,337,962
|
|||||||||||||||||||||
Total assets
|
9,550,349
|
3,340,973
|
1,857,285
|
598,175
|
498,694
|
665,202
|
16,510,678
|
|||||||||||||||||||||
Trade receivables
|
733,864
|
554,542
|
259,115
|
340,880
|
74,993
|
-
|
1,963,394
|
|||||||||||||||||||||
Property, plant and equipment, net
|
2,953,763
|
1,303,162
|
683,283
|
60,354
|
158,995
|
-
|
5,159,557
|
|||||||||||||||||||||
Capital expenditures
|
610,252
|
338,995
|
111,232
|
10,891
|
18,003
|
-
|
1,089,373
|
|||||||||||||||||||||
Depreciation and amortization
|
345,185
|
120,905
|
119,226
|
10,154
|
20,159
|
-
|
615,629
|
|||||||||||||||||||||
Year ended December 31, 2013
|
||||||||||||||||||||||||||||
Net sales
|
4,412,263
|
2,586,496
|
958,178
|
2,119,896
|
519,948
|
-
|
10,596,781
|
|||||||||||||||||||||
Total assets
|
8,130,812
|
3,150,000
|
2,561,557
|
562,206
|
592,065
|
934,330
|
15,930,970
|
|||||||||||||||||||||
Trade receivables
|
613,735
|
506,044
|
364,806
|
373,844
|
124,550
|
-
|
1,982,979
|
|||||||||||||||||||||
Property, plant and equipment, net
|
2,292,811
|
1,098,733
|
1,059,887
|
59,196
|
163,140
|
-
|
4,673,767
|
|||||||||||||||||||||
Capital expenditures
|
285,413
|
283,265
|
151,550
|
5,048
|
28,222
|
-
|
753,498
|
|||||||||||||||||||||
Depreciation and amortization
|
327,344
|
110,496
|
140,180
|
10,594
|
21,440
|
-
|
610,054
|
|||||||||||||||||||||
Year ended December 31,
|
||||||||||||
(all amounts in thousands of U.S. dollars)
|
2015
|
2014
|
2013
|
|||||||||
Inventories at the beginning of the year
|
2,779,869
|
2,702,647
|
2,985,805
|
|||||||||
Plus: Charges of the period
|
||||||||||||
Raw materials, energy, consumables and other
|
1,934,209
|
3,944,283
|
3,749,921
|
|||||||||
Increase in inventory due to business combinations
|
-
|
4,338
|
-
|
|||||||||
Services and fees
|
298,470
|
453,818
|
422,142
|
|||||||||
Labor cost
|
947,997
|
1,204,720
|
1,199,351
|
|||||||||
Depreciation of property, plant and equipment
|
377,596
|
366,932
|
368,507
|
|||||||||
Amortization of intangible assets
|
24,100
|
17,324
|
8,263
|
|||||||||
Maintenance expenses
|
184,053
|
217,694
|
202,338
|
|||||||||
Allowance for obsolescence
|
68,669
|
4,704
|
70,970
|
|||||||||
Taxes
|
21,523
|
20,024
|
4,956
|
|||||||||
Other
|
92,059
|
130,845
|
147,180
|
|||||||||
3,948,676
|
6,364,682
|
6,173,628
|
||||||||||
Less: Inventories at the end of the year
|
(1,843,467
|
)
|
(2,779,869
|
)
|
(2,702,647
|
)
|
||||||
4,885,078
|
6,287,460
|
6,456,786
|
Year ended December 31,
|
||||||||||||
(all amounts in thousands of U.S. dollars)
|
2015
|
2014
|
2013
|
|||||||||
Services and fees
|
158,541
|
178,700
|
177,996
|
|||||||||
Labor cost
|
579,360
|
594,660
|
575,588
|
|||||||||
Depreciation of property, plant and equipment
|
18,543
|
20,197
|
19,132
|
|||||||||
Amortization of intangible assets
|
238,539
|
211,176
|
214,152
|
|||||||||
Commissions, freight and other selling expenses
|
351,657
|
598,138
|
600,239
|
|||||||||
Provisions for contingencies
|
19,672
|
35,557
|
31,429
|
|||||||||
Allowances for doubtful accounts
|
36,788
|
21,704
|
23,236
|
|||||||||
Taxes
|
129,018
|
165,675
|
170,659
|
|||||||||
Other
|
92,157
|
138,145
|
128,782
|
|||||||||
1,624,275
|
1,963,952
|
1,941,213
|
4 | Labor costs (included in Cost of sales and in Selling, general and administrative expenses) |
Year ended December 31,
|
||||||||||||
(all amounts in thousands of U.S. dollars)
|
2015
|
2014
|
2013
|
|||||||||
Wages, salaries and social security costs
|
1,504,918
|
1,743,253
|
1,714,471
|
|||||||||
Employees' service rescission indemnity (including those classified as defined contribution plans)
|
13,286
|
17,431
|
10,978
|
|||||||||
Pension benefits - defined benefit plans
|
14,813
|
18,645
|
32,112
|
|||||||||
Employee retention and long term incentive program
|
(5,660
|
)
|
20,051
|
17,378
|
||||||||
1,527,357
|
1,799,380
|
1,774,939
|
4 | Labor costs (included in Cost of sales and in Selling, general and administrative expenses) (Cont.) |
Country
|
2015
|
2014
|
2013
|
|||||||||
Argentina
|
5,388
|
6,421
|
6,379
|
|||||||||
Mexico
|
5,101
|
5,518
|
5,290
|
|||||||||
Brazil
|
2,050
|
3,835
|
3,309
|
|||||||||
USA
|
2,190
|
3,549
|
3,449
|
|||||||||
Italy
|
2,030
|
2,352
|
2,352
|
|||||||||
Romania
|
1,624
|
1,725
|
1,637
|
|||||||||
Canada
|
546
|
1,225
|
1,280
|
|||||||||
Indonesia
|
532
|
677
|
711
|
|||||||||
Colombia
|
636
|
614
|
627
|
|||||||||
Japan
|
508
|
588
|
565
|
|||||||||
Other
|
1,136
|
1,312
|
1,226
|
|||||||||
21,741
|
27,816
|
26,825
|
Year ended December 31,
|
||||||||||||
(all amounts in thousands of U.S. dollars)
|
2015
|
2014
|
2013
|
|||||||||
Other operating income
|
||||||||||||
Net income from other sales
|
7,480
|
8,843
|
10,663
|
|||||||||
Net rents
|
6,462
|
4,041
|
3,494
|
|||||||||
Other
|
661
|
14,971
|
148
|
|||||||||
14,603
|
27,855
|
14,305
|
||||||||||
Other operating expenses
|
||||||||||||
Contributions to welfare projects and non-profits organizations
|
9,052
|
9,961
|
21,147
|
|||||||||
Provisions for legal claims and contingencies
|
1
|
(760
|
)
|
(2
|
)
|
|||||||
Loss on fixed assets and material supplies disposed / scrapped
|
94
|
203
|
39
|
|||||||||
Impairment charge
|
400,314
|
205,849
|
-
|
|||||||||
Allowance for doubtful receivables
|
1,114
|
336
|
1,708
|
|||||||||
Other
|
-
|
-
|
5,365
|
|||||||||
410,575
|
215,589
|
28,257
|
||||||||||
(all amounts in thousands of U.S. dollars)
|
Assets before impairment
|
Impairment
|
Assets after impairment
|
OCTG - USA
|
1,382,993
|
(400,314)
|
982,679
|
(all amounts in thousands of U.S. dollars)
|
Assets before impairment
|
Impairment
|
Assets after impairment
|
|||||||||
Tubocaribe – Colombia
|
255,060
|
(174,239
|
)
|
80,821
|
||||||||
Prudential – Canada
|
261,497
|
(31,610
|
)
|
229,887
|
||||||||
Total
|
516,557
|
(205,849
|
)
|
310,708
|
(all amounts in thousands of U.S. dollars)
|
Year ended December 31,
|
|||||||||||
2015
|
2014
|
2013
|
||||||||||
Interest Income
|
39,516
|
34,582
|
34,046
|
|||||||||
Interest from available-for-sale financial assets
|
-
|
4,992
|
191
|
|||||||||
Net result on changes in FV of financial assets at FVTPL
|
(4,942
|
)
|
(1,478
|
)
|
540
|
|||||||
Net result on available-for-sale financial assets
|
-
|
115
|
(10
|
)
|
||||||||
Finance income
|
34,574
|
38,211
|
34,767
|
|||||||||
Finance Cost
|
(23,058
|
)
|
(44,388
|
)
|
(70,450
|
)
|
||||||
Net foreign exchange transactions results
|
(13,301
|
)
|
50,298
|
37,179
|
||||||||
Foreign exchange derivatives contracts results
|
30,468
|
(4,733
|
)
|
4,414
|
||||||||
Other
|
(14,473
|
)
|
(6,351
|
)
|
(34,589
|
)
|
||||||
Other Financial results
|
2,694
|
39,214
|
7,004
|
|||||||||
Net Financial results
|
14,210
|
33,037
|
(28,679
|
)
|
Equity Reserve Dec-13
|
Movements 2014
|
Equity Reserve Dec-14
|
Movements 2015
|
Equity Reserve Dec-15
|
||||||||||||||||
Available for sale
|
(39
|
)
|
(2,447
|
)
|
(2,486
|
)
|
2,486
|
-
|
||||||||||||
Total Available for sale reserve
|
(39
|
)
|
(2,447
|
)
|
(2,486
|
)
|
2,486
|
-
|
Year ended December 31,
|
||||||||||||
(all amounts in thousands of U.S. dollars)
|
2015
|
2014
|
2013
|
|||||||||
From non-consolidated companies
|
(10,674
|
)
|
(24,696
|
)
|
46,098
|
|||||||
Gain on equity interest (see Note 26)
|
-
|
21,302
|
-
|
|||||||||
Impairment loss on non-consolidated companies (see Note 12)
|
(28,884
|
)
|
(161,222
|
)
|
-
|
|||||||
(39,558
|
)
|
(164,616
|
)
|
46,098
|
Year ended December 31,
|
||||||||||||
(all amounts in thousands of U.S. dollars)
|
2015
|
2014
|
2013
|
|||||||||
Current tax
|
164,562
|
695,136
|
594,179
|
|||||||||
Deferred tax
|
79,943
|
(109,075
|
)
|
33,698
|
||||||||
244,505
|
586,061
|
627,877
|
Year ended December 31,
|
||||||||||||
(all amounts in thousands of U.S. dollars)
|
2015
|
2014
|
2013
|
|||||||||
Income before income tax
|
170,080
|
1,767,237
|
2,202,249
|
|||||||||
Tax calculated at the tax rate in each country (*)
|
(61,624
|
)
|
312,714
|
465,029
|
||||||||
Non taxable income / Non deductible expenses, net (*)
|
149,789
|
132,551
|
72,768
|
|||||||||
Changes in the tax rates
|
6,436
|
3,249
|
8,287
|
|||||||||
Effect of currency translation on tax base (**)
|
151,615
|
138,925
|
92,695
|
|||||||||
Utilization of previously unrecognized tax losses
|
(1,711
|
)
|
(1,378
|
)
|
(10,902
|
)
|
||||||
Tax charge
|
244,505
|
586,061
|
627,877
|
Year ended December 31, 2015
|
Land,
building and improvements
|
Plant and production equipment
|
Vehicles, furniture and fixtures
|
Work in progress
|
Spare parts and equipment
|
Total
|
||||||||||||||||||
Cost
|
||||||||||||||||||||||||
Values at the beginning of the year
|
1,633,797
|
8,233,902
|
359,554
|
846,538
|
38,075
|
11,111,866
|
||||||||||||||||||
Translation differences
|
(28,711
|
)
|
(250,470
|
)
|
(9,382
|
)
|
(10,352
|
)
|
(1,919
|
)
|
(300,834
|
)
|
||||||||||||
Additions (*)
|
13,065
|
16,064
|
2,022
|
1,036,818
|
(2,246
|
)
|
1,065,723
|
|||||||||||||||||
Disposals / Consumptions
|
(1,892
|
)
|
(55,452
|
)
|
(8,940
|
)
|
(5,691
|
)
|
(285
|
)
|
(72,260
|
)
|
||||||||||||
Transfers / Reclassifications
|
149,844
|
475,748
|
23,718
|
(649,631
|
)
|
(974
|
)
|
(1,295
|
)
|
|||||||||||||||
Values at the end of the year
|
1,766,103
|
8,419,792
|
366,972
|
1,217,682
|
32,651
|
11,803,200
|
||||||||||||||||||
Depreciation and impairment
|
||||||||||||||||||||||||
Accumulated at the beginning of the year
|
418,210
|
5,301,765
|
216,982
|
-
|
15,352
|
5,952,309
|
||||||||||||||||||
Translation differences
|
(8,956
|
)
|
(135,538
|
)
|
(7,528
|
)
|
-
|
(1,093
|
)
|
(153,115
|
)
|
|||||||||||||
Depreciation charge
|
45,644
|
325,241
|
24,313
|
-
|
941
|
396,139
|
||||||||||||||||||
Transfers / Reclassifications
|
2,474
|
(4,114
|
)
|
1,987
|
-
|
(1,485
|
)
|
(1,138
|
)
|
|||||||||||||||
Disposals / Consumptions
|
(1,873
|
)
|
(54,639
|
)
|
(6,788
|
)
|
-
|
47
|
(63,253
|
)
|
||||||||||||||
Accumulated at the end of the year
|
455,499
|
5,432,715
|
228,966
|
-
|
13,762
|
6,130,942
|
||||||||||||||||||
At December 31, 2015
|
1,310,604
|
2,987,077
|
138,006
|
1,217,682
|
18,889
|
5,672,258
|
Year ended December 31, 2014
|
Land,
building and improvements
|
Plant and production equipment
|
Vehicles, furniture and fixtures
|
Work in progress
|
Spare parts and equipment
|
Total
|
||||||||||||||||||
Cost
|
||||||||||||||||||||||||
Values at the beginning of the year
|
1,498,188
|
8,073,413
|
339,314
|
441,902
|
37,754
|
10,390,571
|
||||||||||||||||||
Translation differences
|
(15,137
|
)
|
(241,044
|
)
|
(4,445
|
)
|
(7,719
|
)
|
(854
|
)
|
(269,199
|
)
|
||||||||||||
Additions (*)
|
56,078
|
3,359
|
4,959
|
937,927
|
5,823
|
1,008,146
|
||||||||||||||||||
Disposals / Consumptions
|
(2,179
|
)
|
(32,567
|
)
|
(6,436
|
)
|
-
|
(4,922
|
)
|
(46,104
|
)
|
|||||||||||||
Increase due to business combinations
|
5,059
|
20,803
|
2,758
|
859
|
31
|
29,510
|
||||||||||||||||||
Transfers / Reclassifications
|
91,788
|
409,938
|
23,404
|
(526,431
|
)
|
243
|
(1,058
|
)
|
||||||||||||||||
Values at the end of the year
|
1,633,797
|
8,233,902
|
359,554
|
846,538
|
38,075
|
11,111,866
|
||||||||||||||||||
Depreciation and impairment
|
||||||||||||||||||||||||
Accumulated at the beginning of the year
|
373,304
|
5,131,501
|
197,555
|
-
|
14,444
|
5,716,804
|
||||||||||||||||||
Translation differences
|
(5,996
|
)
|
(134,723
|
)
|
(3,677
|
)
|
-
|
(256
|
)
|
(144,652
|
)
|
|||||||||||||
Depreciation charge
|
47,132
|
313,745
|
25,088
|
-
|
1,164
|
387,129
|
||||||||||||||||||
Transfers / Reclassifications
|
23
|
(38
|
)
|
603
|
-
|
-
|
588
|
|||||||||||||||||
Increase due to business combinations
|
2,044
|
12,745
|
2,291
|
-
|
-
|
17,080
|
||||||||||||||||||
Impairment charge (See Note 5)
|
3,019
|
7,905
|
-
|
-
|
-
|
10,924
|
||||||||||||||||||
Disposals / Consumptions
|
(1,316
|
)
|
(29,370
|
)
|
(4,878
|
)
|
-
|
-
|
(35,564
|
)
|
||||||||||||||
Accumulated at the end of the year
|
418,210
|
5,301,765
|
216,982
|
-
|
15,352
|
5,952,309
|
||||||||||||||||||
At December 31, 2014
|
1,215,587
|
2,932,137
|
142,572
|
846,538
|
22,723
|
5,159,557
|
Year ended December 31, 2015
|
Information system projects
|
Licenses, patents and trademarks (*)
|
Goodwill
|
Customer relationships
|
Total
|
|||||||||||||||
Cost
|
||||||||||||||||||||
Values at the beginning of the year
|
471,935
|
494,014
|
2,182,004
|
2,059,946
|
5,207,899
|
|||||||||||||||
Translation differences
|
(12,127
|
)
|
(127
|
)
|
(11,295
|
)
|
-
|
(23,549
|
)
|
|||||||||||
Additions
|
65,022
|
774
|
-
|
-
|
65,796
|
|||||||||||||||
Transfers / Reclassifications
|
95
|
1,028
|
-
|
-
|
1,123
|
|||||||||||||||
Disposals
|
(56
|
)
|
(1,027
|
)
|
-
|
-
|
(1,083
|
)
|
||||||||||||
Values at the end of the year
|
524,869
|
494,662
|
2,170,709
|
2,059,946
|
5,250,186
|
|||||||||||||||
Amortization and impairment
|
||||||||||||||||||||
Accumulated at the beginning of the year
|
283,679
|
332,823
|
436,625
|
1,397,142
|
2,450,269
|
|||||||||||||||
Translation differences
|
(7,454
|
)
|
-
|
-
|
-
|
(7,454
|
)
|
|||||||||||||
Amortization charge
|
59,342
|
30,588
|
-
|
172,709
|
262,639
|
|||||||||||||||
Impairment charge (See Note 5)
|
-
|
-
|
400,314
|
-
|
400,314
|
|||||||||||||||
Transfers / Reclassifications
|
(35
|
)
|
1,001
|
-
|
-
|
966
|
||||||||||||||
Accumulated at the end of the year
|
335,532
|
364,412
|
836,939
|
1,569,851
|
3,106,734
|
|||||||||||||||
At December 31, 2015
|
189,337
|
130,250
|
1,333,770
|
490,095
|
2,143,452
|
Year ended December 31, 2014
|
Information system projects
|
Licenses, patents and trademarks (*)
|
Goodwill
|
Customer relationships
|
Total
|
|||||||||||||||
Cost
|
||||||||||||||||||||
Values at the beginning of the year
|
400,488
|
492,829
|
2,147,242
|
2,059,946
|
5,100,505
|
|||||||||||||||
Translation differences
|
(9,590
|
)
|
(63
|
)
|
(6,481
|
)
|
-
|
(16,134
|
)
|
|||||||||||
Additions
|
79,983
|
1,244
|
-
|
-
|
81,227
|
|||||||||||||||
Transfers / Reclassifications
|
1,090
|
556
|
-
|
-
|
1,646
|
|||||||||||||||
Increase due to business combinations
|
28
|
-
|
41,243
|
-
|
41,271
|
|||||||||||||||
Disposals
|
(64
|
)
|
(552
|
)
|
-
|
-
|
(616
|
)
|
||||||||||||
Values at the end of the year
|
471,935
|
494,014
|
2,182,004
|
2,059,946
|
5,207,899
|
|||||||||||||||
Amortization and impairment
|
||||||||||||||||||||
Accumulated at the beginning of the year
|
249,916
|
302,444
|
340,488
|
1,140,421
|
2,033,269
|
|||||||||||||||
Translation differences
|
(6,425
|
)
|
-
|
-
|
-
|
(6,425
|
)
|
|||||||||||||
Amortization charge
|
40,188
|
30,379
|
-
|
157,933
|
228,500
|
|||||||||||||||
Impairment charge (See Note 5)
|
-
|
-
|
96,137
|
98,788
|
194,925
|
|||||||||||||||
Accumulated at the end of the year
|
283,679
|
332,823
|
436,625
|
1,397,142
|
2,450,269
|
|||||||||||||||
At December 31, 2014
|
188,256
|
161,191
|
1,745,379
|
662,804
|
2,757,630
|
As of December 31, 2015
|
Tubes Segment
|
Other Segment
|
||||||||||||||||||
CGU
|
Maverick Acquisition
|
Hydril Acquisition
|
Other
|
Maverick Acquisition
|
Total
|
|||||||||||||||
OCTG (USA)
|
225
|
-
|
-
|
-
|
225
|
|||||||||||||||
Tamsa (Hydril and other)
|
-
|
346
|
19
|
-
|
365
|
|||||||||||||||
Siderca (Hydril and other)
|
-
|
265
|
93
|
-
|
358
|
|||||||||||||||
Hydril
|
-
|
309
|
-
|
-
|
309
|
|||||||||||||||
Electric Conduits
|
46
|
-
|
-
|
-
|
46
|
|||||||||||||||
Coiled Tubing
|
-
|
-
|
-
|
4
|
4
|
|||||||||||||||
Other
|
-
|
-
|
26
|
-
|
26
|
|||||||||||||||
Total
|
271
|
920
|
139
|
4
|
1,334
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
|
||||||||
At the beginning of the year
|
643,630
|
912,758
|
||||||
Translation differences
|
(92,914
|
)
|
(54,688
|
)
|
||||
Equity in earnings of non-consolidated companies
|
(10,674
|
)
|
(24,696
|
)
|
||||
Impairment loss in non-consolidated companies
|
(28,884
|
)
|
(161,222
|
)
|
||||
Dividends and distributions received
|
(20,674
|
)
|
(17,735
|
)
|
||||
Additions (c)
|
4,400
|
1,380
|
||||||
Decrease due to consolidation (*)
|
-
|
(8,310
|
)
|
|||||
Decrease / increase in equity reserves
|
(4,239
|
)
|
(3,857
|
)
|
||||
At the end of the period
|
490,645
|
643,630
|
% ownership - voting rights at December 31,
|
Value at December 31,
|
||||
Company
|
Country of incorporation
|
2015
|
2014
|
2015
|
2014
|
a) Ternium S.A.
|
Luxembourg
|
11.46% (*)
|
11.46% (*)
|
449,375
|
527,080
|
b) Usiminas S.A.
|
Brazil
|
2.5% - 5%
|
2.5% - 5%
|
36,109
|
113,099
|
Others
|
-
|
-
|
-
|
5,161
|
3,451
|
490,645
|
643,630
|
12 | Investments in non-consolidated companies (Cont.) |
2015
|
2014
|
|||||||||||||||
|
Usiminas S.A.
|
Ternium S.A.
|
Usiminas S.A.
|
Ternium S.A.
|
||||||||||||
Non-current assets
|
5,343,038
|
5,480,389
|
8,372,431
|
6,341,290
|
||||||||||||
Current assets
|
1,765,733
|
2,582,204
|
3,104,137
|
3,348,869
|
||||||||||||
Total assets
|
7,108,771
|
8,062,593
|
11,476,568
|
9,690,159
|
||||||||||||
Non-current liabilities
|
2,117,536
|
1,558,979
|
2,617,657
|
1,964,070
|
||||||||||||
Current liabilities
|
1,151,383
|
1,700,617
|
1,795,583
|
2,091,386
|
||||||||||||
Total liabilities
|
3,268,919
|
3,259,596
|
4,413,240
|
4,055,456
|
||||||||||||
Non-controlling interests
|
405,880
|
769,849
|
768,749
|
937,502
|
||||||||||||
Revenues
|
3,115,551
|
7,877,449
|
5,016,528
|
8,726,057
|
||||||||||||
Gross profit
|
70,801
|
1,400,177
|
447,311
|
1,800,888
|
||||||||||||
Net (loss) income for the year attributable to owners of the parent
|
(1,053,806
|
)
|
8,127
|
61,531
|
(198,751
|
)
|
||||||||||
Total comprehensive loss for the year, net of tax, attributable to owners of the parent
|
(457,750
|
)
|
(495,603
|
)
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
|
||||||||
Government entities
|
1,113
|
1,697
|
||||||
Employee advances and loans
|
11,485
|
12,214
|
||||||
Tax credits
|
25,660
|
29,997
|
||||||
Receivables from related parties
|
62,675
|
43,093
|
||||||
Legal deposits
|
14,719
|
21,313
|
||||||
Advances to suppliers and other advances
|
70,509
|
119,970
|
||||||
Others
|
35,515
|
35,588
|
||||||
|
221,676
|
263,872
|
||||||
Allowances for doubtful accounts (see Note 22 (i))
|
(1,112
|
)
|
(1,696
|
)
|
||||
|
220,564
|
262,176
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
|
||||||||
Finished goods
|
741,437
|
1,012,297
|
||||||
Goods in process
|
407,126
|
622,365
|
||||||
Raw materials
|
277,184
|
396,847
|
||||||
Supplies
|
503,692
|
554,946
|
||||||
Goods in transit
|
143,228
|
386,954
|
||||||
|
2,072,667
|
2,973,409
|
||||||
Allowance for obsolescence (see Note 23 (i))
|
(229,200
|
)
|
(193,540
|
)
|
||||
|
1,843,467
|
2,779,869
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
|
||||||||
Prepaid expenses and other receivables
|
29,463
|
40,377
|
||||||
Government entities
|
3,498
|
3,189
|
||||||
Employee advances and loans
|
10,951
|
16,478
|
||||||
Advances to suppliers and other advances
|
27,823
|
42,832
|
||||||
Government tax refunds on exports
|
7,053
|
16,956
|
||||||
Receivables from related parties
|
14,249
|
63,733
|
||||||
Derivative financial instruments
|
18,155
|
25,588
|
||||||
Miscellaneous
|
44,736
|
66,470
|
||||||
|
155,928
|
275,623
|
||||||
Allowance for other doubtful accounts (see Note 23 (i))
|
(7,082
|
)
|
(7,992
|
)
|
||||
|
148,846
|
267,631
|
|
Year ended December 31,
|
|||||||
Current tax assets
|
2015
|
2014
|
||||||
V.A.T. credits
|
60,730
|
74,129
|
||||||
Prepaid taxes
|
127,450
|
55,275
|
||||||
|
188,180
|
129,404
|
|
Year ended December 31,
|
|||||||
Current tax liabilities
|
2015
|
2014
|
||||||
Income tax liabilities
|
46,600
|
239,468
|
||||||
V.A.T. liabilities
|
24,661
|
27,156
|
||||||
Other taxes
|
64,757
|
85,729
|
||||||
|
136,018
|
352,353
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
Current accounts
|
1,216,126
|
2,002,867
|
||||||
Receivables from related parties
|
20,483
|
29,505
|
||||||
|
1,236,609
|
2,032,372
|
||||||
Allowance for doubtful accounts (see Note 23 (i))
|
(101,480
|
)
|
(68,978
|
)
|
||||
|
1,135,129
|
1,963,394
|
|
Past due
|
|||||||||||||||
Trade Receivables
|
Not Due
|
1 - 180 days
|
> 180 days
|
|||||||||||||
At December 31, 2015
|
||||||||||||||||
Guaranteed
|
353,537
|
268,606
|
33,706
|
51,225
|
||||||||||||
Not guaranteed
|
883,072
|
634,250
|
152,173
|
96,649
|
||||||||||||
Guaranteed and not guaranteed
|
1,236,609
|
902,856
|
185,879
|
147,874
|
||||||||||||
Allowance for doubtful accounts
|
(101,480
|
)
|
-
|
(1,664
|
)
|
(99,816
|
)
|
|||||||||
Net Value
|
1,135,129
|
902,856
|
184,215
|
48,058
|
||||||||||||
|
||||||||||||||||
At December 31, 2014
|
||||||||||||||||
Guaranteed
|
571,170
|
495,336
|
70,239
|
5,595
|
||||||||||||
Not guaranteed
|
1,461,202
|
1,186,958
|
203,116
|
71,128
|
||||||||||||
Guaranteed and not guaranteed
|
2,032,372
|
1,682,294
|
273,355
|
76,723
|
||||||||||||
Allowance for doubtful accounts
|
(68,978
|
)
|
-
|
(902
|
)
|
(68,076
|
)
|
|||||||||
Net Value
|
1,963,394
|
1,682,294
|
272,453
|
8,647
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
Cash and cash equivalents
|
||||||||
Cash at banks
|
101,019
|
120,772
|
||||||
Liquidity funds
|
81,735
|
110,952
|
||||||
Short – term investments
|
103,793
|
185,921
|
||||||
|
286,547
|
417,645
|
||||||
Other investments - current
|
||||||||
Fixed Income (time-deposit, zero coupon bonds, commercial papers)
|
877,436
|
718,877
|
||||||
Bonds and other fixed Income
|
1,203,695
|
817,823
|
||||||
Fund Investments
|
59,731
|
301,679
|
||||||
|
2,140,862
|
1,838,379
|
||||||
Other investments - Non-current
|
||||||||
Bonds and other fixed Income
|
393,084
|
-
|
||||||
Others
|
1,662
|
1,539
|
||||||
|
394,746
|
1,539
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
Non-current
|
||||||||
Bank borrowings
|
223,050
|
30,104
|
||||||
Finance lease liabilities
|
171
|
729
|
||||||
|
223,221
|
30,833
|
||||||
Current
|
||||||||
Bank borrowings and other loans including related companies
|
747,704
|
966,741
|
||||||
Bank overdrafts
|
349
|
1,200
|
||||||
Finance lease liabilities
|
371
|
486
|
||||||
Costs of issue of debt
|
(129
|
)
|
(20
|
)
|
||||
|
748,295
|
968,407
|
||||||
|
||||||||
Total Borrowings
|
971,516
|
999,240
|
1 year or less
|
1 - 2 years
|
2 – 3 years
|
3 - 4 years
|
4 - 5 years
|
Over 5 years
|
Total
|
||||||||||||||||||||||
At December 31, 2015
|
||||||||||||||||||||||||||||
Financial lease
|
371
|
138
|
29
|
4
|
-
|
-
|
542
|
|||||||||||||||||||||
Other borrowings
|
747,924
|
201,152
|
1,261
|
1,285
|
880
|
18,472
|
970,974
|
|||||||||||||||||||||
Total borrowings
|
748,295
|
201,290
|
1,290
|
1,289
|
880
|
18,472
|
971,516
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Interest to be accrued (*)
|
1,152
|
1,050
|
1,031
|
1,010
|
990
|
1,046
|
6,279
|
|||||||||||||||||||||
Total
|
749,447
|
202,340
|
2,321
|
2,299
|
1,870
|
19,518
|
977,795
|
1 year or less
|
1 - 2 years
|
2 – 3 years
|
3 - 4 years
|
4 - 5 years
|
Over 5 years
|
Total
|
||||||||||||||||||||||
At December 31, 2014
|
||||||||||||||||||||||||||||
Financial lease
|
487
|
392
|
219
|
97
|
21
|
-
|
1,216
|
|||||||||||||||||||||
Other borrowings
|
967,920
|
7,117
|
1,147
|
1,259
|
1,207
|
19,374
|
998,024
|
|||||||||||||||||||||
Total borrowings
|
968,407
|
7,509
|
1,366
|
1,356
|
1,228
|
19,374
|
999,240
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Interest to be accrued (*)
|
19,398
|
2,586
|
1,074
|
1,057
|
1,055
|
2,168
|
27,338
|
|||||||||||||||||||||
Total
|
987,805
|
10,095
|
2,440
|
2,413
|
2,283
|
21,542
|
1,026,578
|
|
|
|
In million of USD
|
|
Disbursement date
|
Borrower
|
Type
|
Original & Outstanding
|
Final maturity
|
2015
|
Tamsa
|
Bank loans
|
607
|
2016
|
Mainly 2015
|
Siderca
|
Bank loans
|
105
|
2016
|
2015
|
TuboCaribe
|
Bank loan
|
200
|
Jan-17
|
|
2015
|
2014
|
||||||
Total borrowings
|
1.52
|
%
|
1.89
|
%
|
|
|
Year ended December 31,
|
|||||||
Currency
|
Interest rates
|
2015
|
2014
|
||||||
USD
|
Fixed
|
219,778
|
21,079
|
||||||
ARS
|
Fixed
|
-
|
4,933
|
||||||
EUR
|
Fixed
|
2,922
|
3,981
|
||||||
Others
|
Variable
|
521
|
840
|
||||||
Total non-current borrowings
|
|
223,221
|
30,833
|
|
|
Year ended December 31,
|
|||||||
Currency
|
Interest rates
|
2015
|
2014
|
||||||
USD
|
Variable
|
16,046
|
184,103
|
||||||
USD
|
Fixed
|
2,482
|
14,577
|
||||||
EUR
|
Variable
|
66
|
24,030
|
||||||
EUR
|
Fixed
|
1,047
|
1,272
|
||||||
MXN
|
Fixed
|
614,916
|
522,225
|
||||||
ARS
|
Fixed
|
113,326
|
184,791
|
||||||
BRL
|
Variable
|
-
|
34,446
|
||||||
ARS
|
Variable
|
37
|
71
|
||||||
Others
|
Variable
|
165
|
252
|
||||||
Others
|
Fixed
|
210
|
2,640
|
||||||
Total current borrowings
|
|
748,295
|
968,407
|
|
Fixed assets
|
Inventories
|
Intangible and Other (*)
|
Total
|
||||||||||||
|
||||||||||||||||
At the beginning of the year
|
346,385
|
44,234
|
482,446
|
873,065
|
||||||||||||
Translation differences
|
(13,641
|
)
|
-
|
11,154
|
(2,487
|
)
|
||||||||||
Charged directly to Other Comprehensive Income
|
-
|
-
|
3,999
|
3,999
|
||||||||||||
Income statement credit / (charge)
|
(18,903
|
)
|
(1,718
|
)
|
51,958
|
31,337
|
||||||||||
At December 31, 2015
|
313,841
|
42,516
|
549,557
|
905,914
|
|
Fixed assets
|
Inventories
|
Intangible and Other (*)
|
Total
|
||||||||||||
|
||||||||||||||||
At the beginning of the year
|
360,208
|
21,526
|
548,219
|
929,953
|
||||||||||||
Translation differences
|
(3,067
|
)
|
-
|
849
|
(2,218
|
)
|
||||||||||
Charged directly to Other Comprehensive Income
|
-
|
682
|
(906
|
)
|
(224
|
)
|
||||||||||
Income statement credit / (charge)
|
(10,756
|
)
|
22,026
|
(65,716
|
)
|
(54,446
|
)
|
|||||||||
At December 31, 2014
|
346,385
|
44,234
|
482,446
|
873,065
|
|
Provisions and allowances
|
Inventories
|
Tax losses (*)
|
Other
|
Total
|
|||||||||||||||
|
||||||||||||||||||||
At the beginning of the year
|
(45,336
|
)
|
(189,709
|
)
|
(41,652
|
)
|
(150,497
|
)
|
(427,194
|
)
|
||||||||||
Translation differences
|
9,709
|
4,049
|
6,988
|
1,020
|
21,766
|
|||||||||||||||
Charged directly to Other Comprehensive Income
|
-
|
-
|
-
|
527
|
527
|
|||||||||||||||
Income statement charge / (credit)
|
(11,500
|
)
|
78,282
|
(64,730
|
)
|
46,554
|
48,606
|
|||||||||||||
At December 31, 2015
|
(47,127
|
)
|
(107,378
|
)
|
(99,394
|
)
|
(102,396
|
)
|
(356,295
|
)
|
|
Provisions and allowances
|
Inventories
|
Tax losses
|
Other
|
Total
|
|||||||||||||||
|
||||||||||||||||||||
At the beginning of the year
|
(53,636
|
)
|
(162,242
|
)
|
(25,810
|
)
|
(134,319
|
)
|
(376,007
|
)
|
||||||||||
Translation differences
|
4,317
|
2,334
|
1,500
|
322
|
8,473
|
|||||||||||||||
Increase due to business combinations
|
(1,255
|
)
|
(297
|
)
|
(3,535
|
)
|
(281
|
)
|
(5,368
|
)
|
||||||||||
Charged directly to Other Comprehensive Income
|
979
|
(682
|
)
|
-
|
40
|
337
|
||||||||||||||
Income statement charge / (credit)
|
4,259
|
(28,822
|
)
|
(13,807
|
)
|
(16,259
|
)
|
(54,629
|
)
|
|||||||||||
At December 31, 2014
|
(45,336
|
)
|
(189,709
|
)
|
(41,652
|
)
|
(150,497
|
)
|
(427,194
|
)
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
|
||||||||
Deferred tax assets to be recovered after 12 months
|
(109,025
|
)
|
(119,192
|
)
|
||||
Deferred tax liabilities to be recovered after 12 months
|
843,022
|
868,289
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
|
||||||||
Deferred tax assets
|
(200,706
|
)
|
(268,252
|
)
|
||||
Deferred tax liabilities
|
750,325
|
714,123
|
||||||
|
549,619
|
445,871
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
|
||||||||
At the beginning of the year
|
445,871
|
553,946
|
||||||
Translation differences
|
19,279
|
6,255
|
||||||
Charged directly to Other Comprehensive Income
|
4,526
|
113
|
||||||
Income statement credit (debit)
|
79,943
|
(109,075
|
)
|
|||||
Increase due to business combinations
|
-
|
(5,368
|
)
|
|||||
At the end of the period
|
549,619
|
445,871
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
Post-employment benefits
|
135,880
|
164,217
|
||||||
Other-long term benefits
|
78,830
|
98,069
|
||||||
Miscellaneous
|
16,466
|
23,579
|
||||||
|
231,176
|
285,865
|
§ | Unfunded |
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
Values at the beginning of the period
|
126,733
|
136,931
|
||||||
Current service cost
|
5,918
|
7,582
|
||||||
Interest cost
|
6,164
|
9,254
|
||||||
Curtailments and settlements
|
(128
|
)
|
(236
|
)
|
||||
Remeasurements (*)
|
(9,743
|
)
|
(9,824
|
)
|
||||
Translation differences
|
(8,418
|
)
|
(8,665
|
)
|
||||
Benefits paid from the plan
|
(16,062
|
)
|
(8,006
|
)
|
||||
Other
|
3,137
|
(303
|
)
|
|||||
At the end of the year
|
107,601
|
126,733
|
Year ended December 31,
|
||
2015
|
2014
|
|
Discount rate
|
2% - 7%
|
2% - 7%
|
Rate of compensation increase
|
0% - 3%
|
2% - 3%
|
§ | Funded |
Year ended December 31,
|
||||||||
2015
|
2014
|
|||||||
Present value of funded obligations
|
153,974
|
183,085
|
||||||
Fair value of plan assets
|
(128,321
|
)
|
(147,991
|
)
|
||||
Liability (*)
|
25,653
|
35,094
|
Year ended December 31,
|
||||||||
2015
|
2014
|
|||||||
At the beginning of the year
|
183,085
|
177,433
|
||||||
Translation differences
|
(18,507
|
)
|
(10,000
|
)
|
||||
Current service cost
|
1,155
|
2,266
|
||||||
Interest cost
|
6,725
|
7,621
|
||||||
Remeasurements (*)
|
(6,124
|
)
|
16,104
|
|||||
Benefits paid
|
(12,360
|
)
|
(10,339
|
)
|
||||
Movement in the fair value of plan assets
|
153,974
|
183,085
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
At the beginning of the year
|
(147,991
|
)
|
(145,777
|
)
|
||||
Return on plan assets
|
(5,021
|
)
|
(7,842
|
)
|
||||
Remeasurements
|
1,686
|
(8,130
|
)
|
|||||
Translation differences
|
15,651
|
8,911
|
||||||
Contributions paid to the plan
|
(5,066
|
)
|
(5,548
|
)
|
||||
Benefits paid from the plan
|
12,360
|
10,339
|
||||||
Other
|
60
|
56
|
||||||
|
(128,321
|
)
|
(147,991
|
)
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
Equity instruments
|
52.3
|
%
|
52.7
|
%
|
||||
Debt instruments
|
44.3
|
%
|
43.7
|
%
|
||||
Others
|
3.4
|
%
|
3.6
|
%
|
Year ended December 31,
|
||
2015
|
2014
|
|
Discount rate
|
4%
|
4%
|
Rate of compensation increase
|
0 % - 2 %
|
2 % - 3 %
|
At 31 December 2015
|
Less than 1 year
|
1 - 2 years
|
2 - 3 years
|
3 - 4 years
|
4 - 5 years
|
Over 5 years
|
||||||||||||||||||
Unfunded Post-employment benefits
|
10,488
|
5,334
|
16,694
|
5,587
|
5,343
|
234,606
|
||||||||||||||||||
Funded Post-employment benefits
|
8,144
|
8,437
|
8,768
|
9,001
|
9,239
|
290,089
|
||||||||||||||||||
Total
|
18,632
|
13,771
|
25,462
|
14,588
|
14,582
|
524,695
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
Payroll and social security payable
|
173,528
|
204,558
|
||||||
Liabilities with related parties
|
351
|
5,305
|
||||||
Derivative financial instruments
|
34,445
|
56,834
|
||||||
Miscellaneous
|
14,518
|
29,580
|
||||||
|
222,842
|
296,277
|
(i) | Deducted from non current receivables |
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
|
||||||||
Values at the beginning of the year
|
(1,696
|
)
|
(2,979
|
)
|
||||
Translation differences
|
584
|
534
|
||||||
Used
|
-
|
749
|
||||||
Values at the end of the year
|
(1,112
|
)
|
(1,696
|
)
|
|
Year ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
|
||||||||
Values at the beginning of the year
|
70,714
|
66,795
|
||||||
Translation differences
|
(20,725
|
)
|
(10,253
|
)
|
||||
Additional provisions
|
9,390
|
18,029
|
||||||
Reclassifications
|
6,562
|
(2,276
|
)
|
|||||
Used
|
(4,520
|
)
|
(5,146
|
)
|
||||
Increase due to business combinations
|
-
|
3,565
|
||||||
Values at the end of the year
|
61,421
|
70,714
|
Year ended December 31, 2015
|
Allowance for doubtful accounts - Trade receivables
|
Allowance for other doubtful accounts - Other receivables
|
Allowance for inventory obsolescence
|
|||||||||
|
||||||||||||
Values at the beginning of the year
|
(68,978
|
)
|
(7,992
|
)
|
(193,540
|
)
|
||||||
Translation differences
|
1,033
|
1,732
|
10,056
|
|||||||||
Additional allowances
|
(36,788
|
)
|
(1,114
|
)
|
(68,669
|
)
|
||||||
Used
|
3,253
|
292
|
22,953
|
|||||||||
At December 31, 2015
|
(101,480
|
)
|
(7,082
|
)
|
(229,200
|
)
|
||||||
|
||||||||||||
|
||||||||||||
Year ended December 31, 2014
|
Allowance for doubtful accounts - Trade receivables
|
Allowance for other doubtful accounts - Other receivables
|
Allowance for inventory obsolescence
|
|||||||||
|
||||||||||||
Values at the beginning of the year
|
(51,154
|
)
|
(9,396
|
)
|
(228,765
|
)
|
||||||
Translation differences
|
384
|
1,335
|
5,141
|
|||||||||
Additional allowances
|
(21,704
|
)
|
(336
|
)
|
(4,704
|
)
|
||||||
Increase due to business combinations
|
(88
|
)
|
(38
|
)
|
(875
|
)
|
||||||
Used
|
3,584
|
443
|
35,663
|
|||||||||
At December 31, 2014
|
(68,978
|
)
|
(7,992
|
)
|
(193,540
|
)
|
(ii) | Liabilities |
Year ended December 31, 2015
|
Sales risks
|
Other claims and contingencies
|
Total
|
|||||||||
|
||||||||||||
Values at the beginning of the year
|
7,205
|
13,175
|
20,380
|
|||||||||
Translation differences
|
(517
|
)
|
(973
|
)
|
(1,490
|
)
|
||||||
Additional allowances
|
8,540
|
1,743
|
10,283
|
|||||||||
Reclassifications
|
47
|
(6,610
|
)
|
(6,563
|
)
|
|||||||
Used
|
(8,985
|
)
|
(4,630
|
)
|
(13,615
|
)
|
||||||
At December 31, 2015
|
6,290
|
2,705
|
8,995
|
|||||||||
|
||||||||||||
Year ended December 31, 2014
|
Sales risks
|
Other claims and contingencies
|
Total
|
|||||||||
|
||||||||||||
Values at the beginning of the year
|
9,670
|
16,045
|
25,715
|
|||||||||
Translation differences
|
(747
|
)
|
(1,777
|
)
|
(2,524
|
)
|
||||||
Additional allowances
|
14,100
|
2,668
|
16,768
|
|||||||||
Reclassifications
|
-
|
2,275
|
2,275
|
|||||||||
Used
|
(15,818
|
)
|
(6,036
|
)
|
(21,854
|
)
|
||||||
At December 31, 2014
|
7,205
|
13,175
|
20,380
|
Year ended December 31,
|
||||||||
2015
|
2014
|
|||||||
Foreign exchange derivatives contracts
|
18,247
|
25,588
|
||||||
Contracts with positive fair values
|
18,247
|
25,588
|
||||||
Foreign exchange derivatives contracts
|
(34,540
|
)
|
(56,834
|
)
|
||||
Contracts with negative fair values
|
(34,540
|
)
|
(56,834
|
)
|
||||
Total
|
(16,293
|
)
|
(31,246
|
)
|
Fair Value
|
Hedge Accounting Reserve
|
|||||
Purchase currency
|
Sell currency
|
Term
|
2015
|
2014
|
2015
|
2014
|
MXN
|
USD
|
2016
|
(24,364)
|
(45,061)
|
320
|
120
|
USD
|
MXN
|
2016
|
14,466
|
18,105
|
(21)
|
(66)
|
EUR
|
USD
|
2016
|
331
|
(6,186)
|
-
|
(6,186)
|
USD
|
EUR
|
2016
|
957
|
982
|
(819)
|
-
|
EUR
|
BRL
|
2016
|
-
|
(96)
|
-
|
138
|
JPY
|
USD
|
2016
|
(24)
|
(5,079)
|
-
|
(1,797)
|
USD
|
KWD
|
2016
|
28
|
1,908
|
28
|
630
|
ARS
|
USD
|
2016
|
(8,639)
|
1,632
|
3,175
|
(1,245)
|
USD
|
BRL
|
2016
|
402
|
1,089
|
-
|
-
|
USD
|
CNH
|
2016
|
-
|
95
|
-
|
87
|
USD
|
GBP
|
2016
|
85
|
438
|
-
|
403
|
Others
|
|
|
465
|
927
|
100
|
-
|
Total
|
|
|
(16,293)
|
(31,246)
|
2,783
|
(7,916)
|
Equity Reserve Dec-13
|
Movements 2014
|
Equity Reserve Dec-14
|
Movements 2015
|
Equity Reserve Dec-15
|
||||||||||||||||
Foreign Exchange
|
120
|
(8,036
|
)
|
(7,916
|
)
|
10,699
|
2,783
|
|||||||||||||
Total Cash flow Hedge
|
120
|
(8,036
|
)
|
(7,916
|
)
|
10,699
|
2,783
|
§ | Tax assessment in Italy |
§ | CSN claims relating to the January 2012 acquisition of Usiminas shares |
§ | CSN claims relating to the January 2012 acquisition of Usiminas shares (Cont.) |
§ | A Tenaris company is a party to a contract with Nucor Corporation under which it is committed to purchase on a monthly basis a minimum volume of hot-rolled steel coils at prices that are negotiated annually by reference to prices to comparable Nucor customers. The contract became effective in May 2013 and will be in force until December 2017; provided, however, that either party may terminate the contract at any time after January 1, 2015 with a 12-month prior notice. Due to the current weak pipe demand associated with the reduction in drilling activity, the parties entered into a temporary agreement pursuant to which application of the minimum volume requirements were suspended, and Tenaris is temporarily allowed to purchase steel volumes in accordance with its needs. As of December 31, 2015, the estimated aggregate contract amount through December 31, 2016, calculated at current prices, is approximately $221 million. |
§ | A Tenaris company entered into various contracts with suppliers pursuant to which it committed to purchase goods and services for a total amount of approximately $347.9 million related to the investment plan to expand Tenaris' U.S. operations with the construction of a state-of-the-art seamless pipe mill in Bay City, Texas. As of December 31, 2015 approximately $836.5 million had already been invested. |
(all amounts in thousands of U.S. dollars)
|
||||
Share capital
|
1,180,537
|
|||
Legal reserve
|
118,054
|
|||
Share premium
|
609,733
|
|||
Retained earnings including net income for the year ended December 31, 2015
|
18,024,204
|
|||
Total equity in accordance with Luxembourg law
|
19,932,528
|
(all amounts in thousands of U.S. dollars)
|
||||
Retained earnings at December 31, 2014 under Luxembourg law
|
21,072,180
|
|||
Other income and expenses for the year ended December 31, 2015 (*)
|
(2,516,734
|
)
|
||
Dividends approved
|
(531,242
|
)
|
||
Retained earnings at December 31, 2015 under Luxembourg law
|
18,024,204
|
|||
Share premium
|
609,733
|
|||
Distributable amount at December 31, 2015 under Luxembourg law
|
18,633,937
|
Year ended December 31,
|
|||||||||||||
(i)
|
Changes in working capital
|
2015
|
2014
|
2013
|
|||||||||
Inventories
|
936,402
|
(72,883
|
)
|
287,874
|
|||||||||
Receivables and prepayments and Current tax assets
|
60,009
|
(31,061
|
)
|
62,114
|
|||||||||
Trade receivables
|
828,265
|
20,886
|
129,939
|
||||||||||
Other liabilities
|
(123,904
|
)
|
(61,636
|
)
|
(151,578
|
)
|
|||||||
Customer advances
|
1,171
|
76,383
|
(77,099
|
)
|
|||||||||
Trade payables
|
(327,958
|
)
|
(3,755
|
)
|
(62,470
|
)
|
|||||||
1,373,985
|
(72,066
|
)
|
188,780
|
||||||||||
(ii)
|
Income tax accruals less payments
|
||||||||||||
Tax accrued
|
244,505
|
586,061
|
627,877
|
||||||||||
Taxes paid
|
(335,585
|
)
|
(506,999
|
)
|
(502,461
|
)
|
|||||||
(91,080
|
)
|
79,062
|
125,416
|
||||||||||
(iii)
|
Interest accruals less payments, net
|
||||||||||||
Interest accrued
|
(11,517
|
)
|
6,174
|
37,356
|
|||||||||
Interest received
|
28,238
|
31,306
|
42,091
|
||||||||||
Interest paid
|
(18,696
|
)
|
(74,672
|
)
|
(109,170
|
)
|
|||||||
(1,975
|
)
|
(37,192
|
)
|
(29,723
|
)
|
||||||||
(iv)
|
Cash and cash equivalents
|
||||||||||||
Cash at banks, liquidity funds and short - term investments
|
286,547
|
417,645
|
614,529
|
||||||||||
Bank overdrafts
|
(349
|
)
|
(1,200
|
)
|
(16,384
|
)
|
|||||||
286,198
|
416,445
|
598,145
|
§ | San Faustin S.A., a Luxembourg Société Anonyme ("San Faustin"), owned 713,605,187 shares in the Company, representing 60.45% of the Company's capital and voting rights. |
§ | San Faustin owned all of its shares in the Company through its wholly-owned subsidiary Techint Holdings S.à r.l., a Luxembourg Société à Responsabilité Limitée ("Techint"), who is the holder of record of the above-mentioned Tenaris shares. |
§ | Rocca & Partners Stichting Administratiekantoor Aandelen San Faustin, a Dutch private foundation (Stichting) ("RP STAK") held shares in San Faustin sufficient in number to control San Faustin. |
§ | No person or group of persons controls RP STAK. |
(all amounts in thousands of U.S. dollars)
|
Year ended December 31,
|
||||||||||||
|
|
2015
|
2014
|
2013
|
|||||||||
(i)
|
Transactions
|
||||||||||||
(a) Sales of goods and services
|
|||||||||||||
Sales of goods to non-consolidated parties
|
24,019
|
33,342
|
35,358
|
||||||||||
Sales of goods to other related parties
|
87,663
|
103,377
|
115,505
|
||||||||||
Sales of services to non-consolidated parties
|
10,154
|
10,932
|
15,439
|
||||||||||
Sales of services to other related parties
|
4,010
|
3,264
|
5,035
|
||||||||||
|
|
125,846
|
150,915
|
171,337
|
|||||||||
|
|
||||||||||||
(b) Purchases of goods and services
|
|||||||||||||
Purchases of goods to non-consolidated parties
|
260,280
|
302,144
|
320,000
|
||||||||||
Purchases of goods to other related parties
|
35,153
|
44,185
|
14,828
|
||||||||||
Purchases of services to non-consolidated parties
|
16,153
|
27,304
|
56,820
|
||||||||||
Purchases of services to other related parties
|
78,805
|
90,652
|
100,677
|
||||||||||
|
|
390,391
|
464,285
|
492,325
|
(all amounts in thousands of U.S. dollars)
|
At December 31,
|
||||||||
|
|
2015
|
2014
|
||||||
(ii)
|
Period-end balances
|
||||||||
(a) Arising from sales / purchases of goods / services
|
|||||||||
Receivables from non-consolidated parties
|
73,412
|
104,703
|
|||||||
Receivables from other related parties
|
23,995
|
31,628
|
|||||||
Payables to non-consolidated parties
|
(20,000
|
)
|
(53,777
|
)
|
|||||
Payables to other related parties
|
(19,655
|
)
|
(28,208
|
)
|
|||||
|
|
57,752
|
54,346
|
||||||
|
|
||||||||
(b) Financial debt
|
|||||||||
Borrowings from other related parties
|
-
|
(200
|
)
|
||||||
|
|
-
|
(200
|
)
|
Company
|
Country of
|
Main activity
|
Percentage of ownership at December 31, (*)
|
||
|
Incorporation
|
|
2015
|
2014
|
2013
|
ALGOMA TUBES INC.
|
Canada
|
Manufacturing of seamless steel pipes
|
100%
|
100%
|
100%
|
CONFAB INDUSTRIAL S.A. and subsidiaries
|
Brazil
|
Manufacturing of welded steel pipes and capital goods
|
100%
|
100%
|
100%
|
DALMINE S.p.A.
|
Italy
|
Manufacturing of seamless steel pipes
|
99%
|
99%
|
99%
|
HYDRIL COMPANY and subsidiaries (except detailed) (a)
|
USA
|
Manufacture and marketing of premium connections
|
100%
|
100%
|
100%
|
MAVERICK TUBE CORPORATION and subsidiaries (except detailed)
|
USA
|
Manufacturing of welded steel pipes
|
100%
|
100%
|
100%
|
NKKTUBES
|
Japan
|
Manufacturing of seamless steel pipes
|
51%
|
51%
|
51%
|
PT SEAMLESS PIPE INDONESIA JAYA
|
Indonesia
|
Manufacturing of seamless steel products
|
77%
|
77%
|
77%
|
PRUDENTIAL STEEL ULC
|
Canada
|
Manufacturing of welded steel pipes
|
100%
|
100%
|
100%
|
S.C. SILCOTUB S.A.
|
Romania
|
Manufacturing of seamless steel pipes
|
100%
|
100%
|
100%
|
SIAT SOCIEDAD ANONIMA
|
Argentina
|
Manufacturing of welded and seamless steel pipes
|
100%
|
100%
|
100%
|
SIDERCA S.A.I.C. and subsidiaries (except detailed)
|
Argentina
|
Manufacturing of seamless steel pipes
|
100%
|
100%
|
100%
|
TALTA - TRADING E MARKETING SOCIEDADE UNIPESSOAL LDA.
|
Madeira
|
Trading and holding Company
|
100%
|
100%
|
100%
|
TENARIS BAY CITY, INC.
|
USA
|
Manufacturing of seamless steel pipes
|
100%
|
100%
|
100%
|
TENARIS FINANCIAL SERVICES S.A.
|
Uruguay
|
Financial company
|
100%
|
100%
|
100%
|
TENARIS GLOBAL SERVICES (CANADA) INC.
|
Canada
|
Marketing of steel products
|
100%
|
100%
|
100%
|
TENARIS GLOBAL SERVICES (U.S.A.) CORPORATION
|
USA
|
Marketing of steel products
|
100%
|
100%
|
100%
|
TENARIS GLOBAL SERVICES NIGERIA LIMITED
|
Nigeria
|
Marketing of steel products
|
100%
|
100%
|
100%
|
TENARIS GLOBAL SERVICES S.A. and subsidiaries (b)
|
Uruguay
|
Holding company and marketing of steel products
|
100%
|
100%
|
100%
|
TENARIS GLOBAL SERVICES (UK) LTD
|
United Kingdom
|
Marketing of steel products
|
100%
|
100%
|
100%
|
TENARIS INVESTMENTS S.àr.l.
|
Luxembourg
|
Holding company
|
100%
|
100%
|
100%
|
TENARIS INVESTMENTS S.àr.l. LUXEMBURG, Zug Branch
|
Switzerland
|
Holding company and financial services
|
100%
|
100%
|
100%
|
TENARIS INVESTMENTS SWITZERLAND AG and subsidiaries (except detailed)
|
Switzerland
|
Holding company
|
100%
|
100%
|
100%
|
TUBOS DE ACERO DE MEXICO S.A.
|
Mexico
|
Manufacturing of seamless steel pipes
|
100%
|
100%
|
100%
|
TENARIS TUBOCARIBE LTDA.
|
Colombia
|
Manufacturing of welded and seamless steel pipes
|
100%
|
100%
|
100%
|
(all amounts in thousands of U.S. dollars)
|
Year ended December 31,
|
||
2015
|
2014
|
2013
|
|
Audit Fees
|
4,372
|
5,231
|
5,723
|
Audit-Related Fees
|
78
|
142
|
143
|
Tax Fees
|
25
|
89
|
117
|
All Other Fees
|
15
|
35
|
51
|
Total
|
4,490
|
5,497
|
6,034
|
Edgardo Carlos
|
||
Chief Financial Officer
|