NOTE 10 — PROPERTY, PLANT AND EQUIPMENT
a) Summary of changes in property, plant and equipment:
|
|
|
Land and buildings |
|
Machines, equipment, |
|
Data electronic |
|
Property, plant and |
|
Other |
|
Total |
|
|
Cost of the property, plant, and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2015 |
|
9,083,765 |
|
28,434,074 |
|
755,455 |
|
4,065,627 |
|
1,296,613 |
|
43,635,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions |
|
2,150 |
|
238,060 |
|
8,194 |
|
2,000,515 |
|
75,799 |
|
2,324,718 |
|
|
Capitalized interest |
|
— |
|
— |
|
— |
|
213,476 |
|
— |
|
213,476 |
|
|
Business Combination |
|
30,693 |
|
10,767 |
|
503 |
|
1,784 |
|
10,853 |
|
54,600 |
|
|
Transfers |
|
462,812 |
|
1,475,130 |
|
40,512 |
|
(1,999,840 |
) |
21,386 |
|
— |
|
|
Disposals |
|
(69,777 |
) |
(142,936 |
) |
(20,166 |
) |
(103,959 |
) |
(29,769 |
) |
(366,607 |
) |
|
Impairment |
|
(60,952 |
) |
(1,501,293 |
) |
— |
|
(543,726 |
) |
— |
|
(2,105,971 |
) |
|
Foreign exchange effect |
|
1,394,111 |
|
4,102,898 |
|
154,768 |
|
434,999 |
|
95,603 |
|
6,182,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2015 |
|
10,842,802 |
|
32,616,700 |
|
939,266 |
|
4,068,876 |
|
1,470,485 |
|
49,938,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions |
|
35,238 |
|
93,290 |
|
2,126 |
|
1,117,317 |
|
75,920 |
|
1,323,891 |
|
|
Capitalized interest |
|
— |
|
— |
|
— |
|
187,375 |
|
— |
|
187,375 |
|
|
Transfers |
|
584,575 |
|
2,665,898 |
|
74,804 |
|
(3,314,746 |
) |
(10,531 |
) |
— |
|
|
Disposals |
|
(81,256 |
) |
(271,104 |
) |
(60,542 |
) |
(1,550 |
) |
(46,888 |
) |
(461,340 |
) |
|
Effect of selling of subsidiary |
|
(1,011,492 |
) |
(1,726,440 |
) |
(112,319 |
) |
(53,630 |
) |
(52,281 |
) |
(2,956,162 |
) |
|
Impairment (note 28) |
|
(52,071 |
) |
(183,788 |
) |
(228 |
) |
— |
|
(3,242 |
) |
(239,329 |
) |
|
Foreign exchange effect |
|
(834,043 |
) |
(2,560,676 |
) |
(81,033 |
) |
(240,994 |
) |
(74,219 |
) |
(3,790,965 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2016 |
|
9,483,753 |
|
30,633,880 |
|
762,074 |
|
1,762,648 |
|
1,359,244 |
|
44,001,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions |
|
2,028 |
|
124,136 |
|
1,770 |
|
687,019 |
|
58,376 |
|
873,329 |
|
|
Capitalized interest |
|
— |
|
— |
|
— |
|
44,260 |
|
— |
|
44,260 |
|
|
Transfers |
|
700,318 |
|
716,685 |
|
19,340 |
|
(1,440,183 |
) |
3,840 |
|
— |
|
|
Disposals |
|
(157,625 |
) |
(232,771 |
) |
(12,963 |
) |
(60,151 |
) |
(49,962 |
) |
(513,472 |
) |
|
Loss of control by selling of subsidiary (note 3.4) |
|
(119,928 |
) |
(900,840 |
) |
(16,426 |
) |
(1,382 |
) |
(53,129 |
) |
(1,091,705 |
) |
|
Impairment (note 28) |
|
(10,063 |
) |
(255,293 |
) |
— |
|
— |
|
(13 |
) |
(265,369 |
) |
|
Assets held for sale (note 3.4) |
|
(1,013,466 |
) |
(2,734,923 |
) |
(53,315 |
) |
(107,677 |
) |
(171,404 |
) |
(4,080,785 |
) |
|
Foreign exchange effect |
|
200,681 |
|
665,730 |
|
11,158 |
|
66,146 |
|
28,745 |
|
972,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2017 |
|
9,085,698 |
|
28,016,604 |
|
711,638 |
|
950,680 |
|
1,175,697 |
|
39,940,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and buildings |
|
Machines, equipment, |
|
Data electronic |
|
Property, plant and |
|
Other |
|
Total |
|
|
Accumulated depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2015 |
|
(3,618,197 |
) |
(16,825,332 |
) |
(664,783 |
) |
— |
|
(395,433 |
) |
(21,503,745 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and depletion |
|
(323,824 |
) |
(1,842,158 |
) |
(48,195 |
) |
— |
|
(96,391 |
) |
(2,310,568 |
) |
|
Transfers |
|
8,815 |
|
(9,071 |
) |
360 |
|
— |
|
(104 |
) |
— |
|
|
Disposals |
|
26,846 |
|
175,405 |
|
15,512 |
|
— |
|
28,844 |
|
246,607 |
|
|
Foreign exchange effect |
|
(481,359 |
) |
(2,913,862 |
) |
(130,514 |
) |
— |
|
(60,362 |
) |
(3,586,097 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2015 |
|
(4,387,719 |
) |
(21,415,018 |
) |
(827,620 |
) |
— |
|
(523,446 |
) |
(27,153,803 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and depletion |
|
(334,365 |
) |
(1,738,759 |
) |
(44,437 |
) |
— |
|
(100,259 |
) |
(2,217,820 |
) |
|
Transfers |
|
(12,015 |
) |
(2,368 |
) |
968 |
|
— |
|
13,415 |
|
— |
|
|
Disposals |
|
14,696 |
|
243,429 |
|
56,466 |
|
— |
|
31,589 |
|
346,180 |
|
|
Loss of control by selling of subsidiary (note 3.4) |
|
524,209 |
|
1,515,886 |
|
95,809 |
|
— |
|
37,965 |
|
2,173,869 |
|
|
Foreign exchange effect |
|
296,523 |
|
1,792,251 |
|
69,172 |
|
— |
|
43,920 |
|
2,201,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2016 |
|
(3,898,671 |
) |
(19,604,579 |
) |
(649,642 |
) |
— |
|
(496,816 |
) |
(24,649,708 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and depletion |
|
(343,373 |
) |
(1,361,561 |
) |
(40,915 |
) |
— |
|
(61,506 |
) |
(1,807,355 |
) |
|
Transfers |
|
(38,467 |
) |
25,886 |
|
(400 |
) |
— |
|
12,981 |
|
— |
|
|
Disposals |
|
67,598 |
|
218,590 |
|
12,790 |
|
— |
|
43,067 |
|
342,045 |
|
|
Loss of control by selling of subsidiary (note 3.4) |
|
28,691 |
|
589,951 |
|
12,627 |
|
— |
|
41,117 |
|
672,386 |
|
|
Assets held for sale (note 3.4) |
|
370,727 |
|
1,989,917 |
|
54,275 |
|
— |
|
95,350 |
|
2,510,269 |
|
|
Foreign exchange effect |
|
(101,528 |
) |
(435,040 |
) |
(10,969 |
) |
— |
|
(16,675 |
) |
(564,212 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2017 |
|
(3,915,023 |
) |
(18,576,836 |
) |
(622,234 |
) |
— |
|
(382,482 |
) |
(23,496,575 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net property, plant and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2015 |
|
6,455,083 |
|
11,201,682 |
|
111,646 |
|
4,068,876 |
|
947,039 |
|
22,784,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2016 |
|
5,585,082 |
|
11,029,301 |
|
112,432 |
|
1,762,648 |
|
862,428 |
|
19,351,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2017 |
|
5,170,675 |
|
9,439,768 |
|
89,404 |
|
950,680 |
|
793,215 |
|
16,443,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The average rate of capitalized interest in 2017 was 6.6% (6.6% in 2016 and 6.4% in 2015).
The following useful lives are used to calculate depreciation, amortization, and depletion:
|
|
|
Useful lives of property, |
|
|
Buildings |
|
20 to 33 years |
|
|
Machines, equipment, and installations |
|
10 to 20 years |
|
|
Furniture and fixture |
|
5 to 10 years |
|
|
Vehicles |
|
3 to 5 years |
|
|
Data electronic equipment |
|
2.5 to 6 years |
|
b) Guarantees — property, plant and equipment have been pledged as collateral for loans and financing in the amount of R$ 609,116 as of December 31, 2017 (R$ 632,376 and R$ 823,650 as of December 31, 2016 and 2015, respectively).
c) Impairment of property, plant and equipment — At December 31, 2017, the carrying amount of items of property, plant and equipment for which an impairment loss has been recognized up to current year is R$ 118,348 for land, buildings and construction (R$ 112,438 as of December 31, 2016), R$ 783,183 for machines, equipment and installations (R$ 642,592 as of December 31, 2016), R$ 543,726 for Property, plant and equipment under construction (R$ 543,726 as of December 31, 2016). The loss of control of Diaco S.A. has been reflected in the results above (see Note 3.4).