Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information | |
Entity Registrant Name | NATIONAL STEEL CO |
Entity Central Index Key | 0001049659 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity a Well-known Seasoned Issuer | Yes |
Entity a Voluntary Filer | No |
Entity's Reporting Status Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1,387,524,047 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2018 |
Consolidated Balance Sheet
Consolidated Balance Sheet - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | R$ 2248004 | R$ 3411572 |
Financial Investments measured at amortized cost | 895,713 | 735,712 |
Trade receivables | 2,078,182 | 2,197,078 |
Inventories | 5,039,560 | 4,464,419 |
Other current assets | 1,753,024 | 1,072,715 |
Total current assets | 12,014,483 | 11,881,496 |
NON-CURRENT ASSETS | ||
Deferred income taxes | 89,394 | 63,119 |
Other non-current assets | 4,285,223 | 2,528,475 |
Financial Investments measured at amortized cost | 7,772 | 0 |
Total | 4,382,389 | 2,591,594 |
Investments in associates and joint controlled entities | 5,630,613 | 5,499,995 |
Property, plant and equipment | 18,046,864 | 17,964,839 |
Intangible assets | 7,253,175 | 7,272,046 |
Total non-current assets | 35,313,041 | 33,328,474 |
TOTAL ASSETS | 47,327,524 | 45,209,970 |
CURRENT LIABILITIES | ||
Payroll and related taxes | 248,185 | 252,418 |
Trade payables | 3,473,822 | 2,505,695 |
Taxes payable | 251,746 | 264,097 |
Borrowings and financing | 5,653,439 | 6,526,902 |
Other payables | 1,704,857 | 1,014,980 |
Provisions for tax, social security, labor and civil risks | 106,503 | 105,958 |
Total current liabilities | 11,438,552 | 10,670,050 |
NON-CURRENT LIABILITIES | ||
Borrowings and financing | 23,173,635 | 22,983,942 |
Other payables | 227,328 | 129,323 |
Deferred income taxes | 601,731 | 1,173,559 |
Provisions for tax, social security, labor and civil risks | 685,953 | 719,133 |
Pension and healthcare plan | 905,119 | 908,721 |
Provision for environmental liabilities and decommissioning of assets | 281,766 | 337,013 |
Total non-current liabilities | 25,875,532 | 26,251,691 |
Shareholders' Equity | ||
Issued capital | 4,540,000 | 4,540,000 |
Capital reserves | 32,720 | 30 |
Legal reserves | 189,122 | 0 |
Earnings reserves | 2,933,969 | 238,976 |
Treasury Shares | (58,264) | (238,976) |
Accumulated Profit / (Loss) | 0 | (1,291,689) |
Other comprehensive income | 1,065,188 | 3,779,032 |
Total equity attributable to owners of the Company | 8,702,735 | 7,027,373 |
Non-controlling interests | 1,310,705 | 1,260,856 |
Total equity | 10,013,440 | 8,288,229 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | R$ 47327524 | R$ 45209970 |
Consolidated Statements of Inco
Consolidated Statements of Income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit or loss [abstract] | |||
Revenues from sale of goods and rendering of services | R$ 22968885 | R$ 18524601 | R$ 17148949 |
Cost of sales and services | (16,105,657) | (13,596,141) | (12,640,042) |
Gross profit | 6,863,228 | 4,928,460 | 4,508,907 |
Operating expenses/income | 83,332 | (1,944,495) | (2,563,431) |
Selling expenses | (2,263,688) | (1,815,107) | (1,696,896) |
General and administrative expenses | (494,023) | (415,841) | (518,232) |
Other operating income | 4,036,043 | 824,286 | 663,509 |
Other operating expenses | (1,330,706) | (646,944) | (1,076,730) |
Equity in results of affiliated companies | 135,706 | 109,111 | 64,918 |
Profit before financial income (expenses) and taxes | 6,946,560 | 2,983,965 | 1,945,476 |
Financial income | 1,310,514 | 295,074 | 643,590 |
Financial expenses | (2,806,157) | (2,758,701) | (3,166,017) |
Profit (loss) before taxes | 5,450,917 | 520,338 | (576,951) |
Income tax and social contribution | (250,334) | (409,109) | (266,546) |
Profit (Loss) from continued operations | 5,200,583 | 111,229 | (843,497) |
Profit (Loss) from discontinued operations | 0 | 0 | (9,561) |
Profit (loss) for the year | 5,200,583 | 111,229 | (853,058) |
Profit (Loss) for the year attributed to: | |||
Controlling interests | 5,074,136 | 10,272 | (934,747) |
Non-controlling interests | R$ 126447 | R$ 100957 | R$ 81689 |
Earnings (loss) per common share - (reais/share) | |||
Basic | R$ 3.69498 | R$ 0.00757 | R$ 0.68876 |
Diluted | R$ 3.69498 | R$ 0.00757 | R$ 0.68876 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of comprehensive income [abstract] | |||
Profit (loss) for the year | R$ 5200583 | R$ 111229 | R$ 853058 |
Items that will not be subsequently reclassified to the statement of income | |||
Actuarial (losses)/gains on defined benefit plan from investments in subsidiaries | 903 | (12) | 87 |
Actuarial (losses)/gains on defined benefit pension plan | 413 | (203,022) | (219,417) |
Income tax and social contribution on actuarial (losses) gains on defined benefit pension plan | 0 | (1,073) | (2,619) |
Items that will not be subsequently reclassified to the statement of income | 1,316 | (204,107) | (221,949) |
Items that could be subsequently reclassified to the statement of income | |||
Cumulative translation adjustments for the year | (87,101) | 170,342 | (486,890) |
Fair Value through other comprehensive income | (1,559,680) | 847,849 | 711,942 |
(Loss)/Gain on percentage change in percentage of investments | (105) | 2,814 | 1,299 |
(Loss) gain on cash flow hedge accounting | (1,415,962) | (50,987) | 1,005,968 |
Cash Flow hedge reclassified to income statement | 370,191 | 92,140 | 77,444 |
(Loss) /gain on hedge of net investments in foreign subsidiaries | (21,852) | (39,893) | 77,952 |
(Loss) / gain on business combination | (651) | 4,415 | 0 |
Items that could be subsequently reclassified to the statement of income | (2,715,160) | 1,026,680 | 1,387,715 |
Other comprehensive income | (2,713,844) | 822,573 | 1,165,766 |
Comprehensive income (loss) for the year | 2,486,739 | 933,802 | 312,708 |
Attributable to: | |||
Attributed to owners of the Company | 2,360,292 | 832,845 | 231,019 |
Attributed to non-controlling interests | R$ 126447 | R$ 100957 | R$ 81689 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of cash flows [abstract] | |||
Profit (loss) for the year | R$ 5200583 | R$ 111229 | R$ 853058 |
Adjustments to reconcile net income (loss) to net cash provided by operations | |||
Accrued charges on borrowings and financing | 1,938,077 | 2,346,598 | 2,944,558 |
Charges on loans and financing granted | (50,239) | (54,777) | (58,731) |
Depreciation/ depletion / amortization | 1,273,021 | 1,453,335 | 1,322,497 |
Equity in results of affiliated companies | (135,706) | (109,111) | (64,918) |
Deferred income tax and social contribution | (576,895) | 50,128 | 60,368 |
Provision for tax, social security, labor and civil risks | (34,279) | 10,166 | (25,642) |
Monetary variations and exchange differences | 1,023,695 | 250,660 | (1,038,018) |
Gain/(Loss) of derivative financial instruments | 0 | (28,503) | (5,467) |
Eletrobras's compulsory loan | (21,558) | (755,151) | 0 |
Proceeds from disposal of fixed and intangible assets | 38,245 | 28,127 | 88,339 |
Gain on repurchase of debt securities | 0 | 0 | (146,214) |
Provision (Reversal) for consumption and services | 55,726 | (44,921) | 0 |
Provision for actuarial liabilities | (20,984) | (36,953) | (18,803) |
PIS and COFINS credits | (2,208,462) | 0 | 0 |
Gain on business combination | 0 | 0 | (66,496) |
Net gain on sale of a foreign subsidiary | (1,164,294) | 0 | 0 |
Gain on disposal of available for sale | 0 | 0 | (252,023) |
Provision for environmental liabilities and decommissioning of assets | (55,247) | (10,051) | 18,133 |
Impairment of Transnordestina | 0 | 0 | 387,989 |
Updated shares - Fair value through profit or loss (VJR) | (1,655,813) | 0 | 0 |
Other provisions | (43,435) | 82,682 | (993) |
Total | 3,583,993 | 3,293,458 | 2,291,521 |
Changes in assets and liabilities | |||
Trade receivables - third parties | 99,223 | (300,449) | (388,469) |
Trade receivables - related parties | 22,071 | 14,449 | (3,956) |
Inventories | (800,050) | (442,109) | 947,834 |
Receivables from related parties/Dividends | 113,800 | 68,224 | 34,082 |
Recoverable taxes | 238,181 | (100,470) | 275,018 |
Judicial deposits | (7,496) | (6,720) | 38,910 |
Trade payables | 990,942 | 711,953 | 482,009 |
Payroll and related taxes | (1,100) | (3,658) | (5,691) |
Taxes in installments - REFIS | (23,806) | 23,775 | (253,374) |
Payables to related parties | 129,031 | 46,081 | (9,726) |
Interest paid | (2,141,710) | (2,634,931) | (3,050,036) |
Interest received | 0 | 0 | 19,636 |
Interest on swaps paid | 0 | 0 | (3,999) |
Other | 5,026 | (97,752) | (97,841) |
Increase (Decrease) in assets and liabilities | (1,375,888) | (2,721,607) | (2,015,603) |
Net cash generated by operating activities | 2,208,105 | 571,851 | 275,918 |
Investments / acquisition of shares | (218,840) | 0 | (190,435) |
Purchase of property, plant and equipment | (1,317,102) | (1,059,481) | (1,628,694) |
Receipt/(Payment) in derivative transactions | (372) | 30,453 | (722,443) |
Purchase of intangible assets | (2,200) | (622) | (3,119) |
Loans granted to related parties | (101,908) | (49,072) | (96,461) |
Financial investment, net of redeemed amount | (167,773) | 24,679 | 3,208 |
Loans received from related parties | 0 | 4,819 | 0 |
Cash received by disposal of Usiminas' shares | 39,377 | 0 | 0 |
Cash and cash equivalents from discontinued operations | 0 | 0 | 331,835 |
Net cash received from the sale of a foreign subsidiary | 1,670,359 | 0 | 0 |
Cash and cash equivalents on acquisition of control | 0 | 0 | 941 |
Net cash used in investing activities | (98,459) | (1,049,224) | (2,305,168) |
Borrowings and financing raised | 2,143,679 | 534,506 | 22,597 |
Cost of borrowing | (92,287) | (238) | (26,844) |
Payment of borrowings | (5,019,978) | (1,528,023) | (398,699) |
Payment of dividends and interests on shareholder's equity | (502,002) | 0 | (53) |
Treasury shares | 213,402 | 0 | 0 |
Forfaiting funding / drawee risk | 0 | 0 | 78,240 |
Forfaiting amortization / drawee risk | 0 | 0 | (407,155) |
Buyback of debt securities | 0 | 0 | (151,098) |
Net cash used in financing activities | (3,257,186) | (993,755) | (883,012) |
Exchange rate changes on cash and cash equivalents of foreign subsidiaries | (16,028) | 11,538 | (77,628) |
Increase (Decrease) in cash and cash equivalents | (1,163,568) | (1,459,590) | (2,989,890) |
Cash and cash equivalents at the beginning of the year | 3,411,572 | 4,871,162 | 7,861,052 |
Cash and cash equivalents at the end of the year | R$ 2248004 | R$ 3411572 | R$ 4871162 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity (Consolidated) - BRL (R$) R$ in Thousands | Paid-in Capital | Capital Reserve [Member] | Earnings Reserve [Member] | Retained Earnings (Accumulated Losses) [Member] | Other Comprehensive Income [Member] | Shareholders' Equity [Member] | Non-Controlling Interests [Member] | Total |
Beginning balance at Dec. 31, 2015 | R$ 4540000 | R$ 30 | R$ 0 | R$ 367214 | R$ 1790693 | R$ 5963509 | R$ 1127779 | R$ 7091288 |
Total comprehensive income | (934,747) | 1,165,766 | 231,019 | 81,689 | 312,708 | |||
Profit (loss) for the year | (934,747) | (934,747) | 81,689 | (853,058) | ||||
Other comprehensive income | 1,165,766 | 1,165,766 | 1,165,766 | |||||
Cumulative translation adjustments for the period | (486,890) | (486,890) | (486,890) | |||||
Actuarial gain/(loss) on defined benefit pension plan, net of taxes | (221,949) | (221,949) | (221,949) | |||||
Gain/(Loss) on available-for-sale assets, net of taxes | 711,942 | 711,942 | 711,942 | |||||
Gain/(loss) on percentage change in investments | 1,299 | 1,299 | 1,299 | |||||
Gain/(loss) on cash flow hedge accounting, net of taxes | 1,083,412 | 1,083,412 | 1,083,412 | |||||
Gain/(loss) on hedge of net investments in foreign subsidiaries | 77,952 | 77,952 | 77,952 | |||||
Internal changes in shareholders' equity | (19,475) | (19,475) | ||||||
Non-controlling interests in subsidiaries | (19,475) | (19,475) | ||||||
Ending balance at Dec. 31, 2016 | 4,540,000 | 30 | 0 | (1,301,961) | 2,956,459 | 6,194,528 | 1,189,993 | 7,384,521 |
Ajusted opening balances | 4,540,000 | 30 | 0 | (1,301,961) | 2,956,459 | 6,194,528 | 1,189,993 | 7,384,521 |
Total comprehensive income | 10,272 | 822,573 | 832,845 | 100,957 | 933,802 | |||
Profit (loss) for the year | 10,272 | 0 | 10,272 | 100,957 | 111,229 | |||
Other comprehensive income | 0 | 822,573 | 822,573 | 0 | 822,573 | |||
Cumulative translation adjustments for the period | 170,342 | 170,342 | 0 | 170,342 | ||||
Actuarial gain/(loss) on defined benefit pension plan, net of taxes | (204,107) | (204,107) | 0 | (204,107) | ||||
Gain/(Loss) on available-for-sale assets, net of taxes | 847,849 | 847,849 | 0 | 847,849 | ||||
Gain/(loss) on percentage change in investments | 2,814 | 2,814 | 0 | 2,814 | ||||
Gain/(loss) on cash flow hedge accounting, net of taxes | 41,153 | 41,153 | 0 | 41,153 | ||||
Gain/(loss) on hedge of net investments in foreign subsidiaries | (39,383) | (39,383) | 0 | (39,893) | ||||
Gain/(loss) on business combination | 4,415 | 4,415 | 0 | 4,415 | ||||
Internal changes in shareholders' equity | (30,094) | (30,094) | ||||||
Non-controlling interests in subsidiaries | (30,094) | (30,094) | ||||||
Ending balance at Dec. 31, 2017 | 4,540,000 | 30 | 0 | (1,291,689) | 3,779,032 | 7,027,373 | 1,260,856 | 8,288,229 |
Beginning balance at Dec. 31, 2017 | 4,540,000 | 30 | 0 | (1,291,689) | 3,779,032 | 7,027,373 | 1,260,856 | 8,288,229 |
Ajusted opening balances | 4,540,000 | 30 | 0 | (1,291,689) | 3,779,032 | 7,027,373 | 1,260,856 | 8,288,229 |
Capital transactions with shareholders | 32,690 | 180,712 | (898,332) | (684,930) | 0 | (684,930) | ||
Sales of treasury shares | 180,712 | 180,712 | 0 | 180,712 | ||||
Dividends | (898,332) | (898,332) | 0 | (898,332) | ||||
Profit on disposal of shares | 32,690 | 32,690 | 0 | 32,690 | ||||
Total comprehensive income | 5,074,136 | (2,713,844) | 2,360,292 | 126,447 | 2,486,739 | |||
Profit (loss) for the year | 5,074,136 | 5,074,136 | 126,447 | 5,200,583 | ||||
Other comprehensive income | (2,713,844) | (2,713,844) | 0 | (2,713,844) | ||||
Cumulative translation adjustments for the period | (87,101) | (87,101) | 0 | (87,101) | ||||
Actuarial gain/(loss) on defined benefit pension plan, net of taxes | 1,316 | 1,316 | 0 | 1,316 | ||||
Gain/(Loss) on available-for-sale assets, net of taxes | (1,559,680) | (1,559,680) | 0 | (1,559,680) | ||||
Gain/(loss) on percentage change in investments | (105) | (105) | 0 | (105) | ||||
Gain/(loss) on cash flow hedge accounting, net of taxes | (1,045,771) | (1,045,771) | 0 | (1,045,771) | ||||
Gain/(loss) on hedge of net investments in foreign subsidiaries | (21,852) | (21,852) | 0 | (21,852) | ||||
Gain/(loss) on business combination | (651) | (651) | 0 | (651) | ||||
Constitution of reserves | 2,884,115 | (2,884,115) | ||||||
Non-controlling interests in subsidiaries | (76,598) | (76,598) | ||||||
Ending balance at Dec. 31, 2018 | R$ 4540000 | R$ 32720 | R$ 3064827 | R$ 0 | R$ 1065188 | R$ 8702735 | R$ 1310705 | R$ 10013440 |
1. DESCRIPTION OF BUSINESS
1. DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2018 | |
Description Of Business | |
DESCRIPTION OF BUSINESS | Companhia Siderúrgica Nacional “CSN”, also referred to as the “Company”, is a publicly-held company incorporated on April 9, 1941, under the laws of the Federative Republic of Brazil (Companhia Siderúrgica Nacional, its subsidiaries, joint ventures, joint operations and associates are collectively referred to herein as the "Group”). The Company’s registered office is located in São Paulo, SP, Brazil. CSN is listed on the São Paulo Stock Exchange (B3 S.A.- Brasil, Bolsa, Balcão) and on the New York Stock Exchange (NYSE). Accordingly, the Company reports its information to the Brazilian Securities Commission (CVM) and the U.S. Securities and Exchange Commission (SEC). The Group's main operating activities are divided into five (5) operating segments as follows: · Steel: The Company’s main industrial facility is the Presidente Vargas steelworks (“UPV”), located in the city of Volta Redonda, State of Rio de Janeiro. This segment consolidates production, distribution and sale of flat steel, long steel, metallic containers and galvanized steel. In addition to the facilities in Brazil, CSN has commercial activities in the United States and operations in Portugal and Germany, all of them are in line with the plan to achieve new markets and perform excellent services for final consumers. Its steel has been used in home appliances, civil construction and automobile industries. · Mining: The production of iron ore is developed in the city of Congonhas, State of Minas Gerais. Iron ore is sold basically in the international market, especially in Europe and Asia. The prices charged in these markets are historically cyclical and subject to significant fluctuations over short periods of time, driven by several factors related to global demand, strategies adopted by the major steel producers, and the foreign exchange rate. All these factors are beyond the Company’s control. The ore transportation is accomplished by Terminal de Carvão e Minérios do Porto de Itaguai – (“TECAR”), a solid bulk terminal, one of the four terminals that compose the Port of Itaguai, located in the State of Rio de Janeiro. Imports of coal and coke are held through this terminal and directed to the steel industry of CSN. The Company´s mining activities also comprises tin exploitation, which is based in the State of Rondônia, this facility is engaged to supply the needs of UPV, with the excess of raw material being sold to subsidiaries and third parties. The Company's mining activities utilize tailings dams for which all appropriate measures are taken to mitigate the risks inherent to the handling and disposal of the tailings and to comply with current environmental legislation. It is important to reiterate that operating without dependence on these dams is a priority in our mining activities, for which investments of around R$ 250 million in dry stacking technology have already been made. In this context, it is expected that CSN Mineração will be fully processing the tailings in the dry process by the end of 2019, subject to revision of projects and expected deadlines, proper operation of equipment and unforeseen delays. As a consequence of these measures, decommissioning of dams is the natural way of processing dry tailings. All of our dams, both mining and hydroelectric dams, are positively certified and comply with the environmental legislation in force. · Cement: CSN entered in the cement market boosted by the synergy between this new activity and its existing businesses. Next to the UPV in Volta Redonda (RJ) is installed the new business unit CSN Cimentos, which produces CP-III type of cement by using slag produced by the UPV blast furnaces in Volta Redonda. It also explores limestone and dolomite at the Arcos unit, located in the State of Minas Gerais, to satisfy the needs of UPV as of the cement plant. Additionally, the operation of its second clinker production line is located in Arcos/MG. · Logistics Railroads: CSN has interests in three railroad companies: MRS Logística S.A., which manages the former Southeast Railway System of Rede Ferroviária Federal S.A (“RFFSA”)., Transnordestina Logística S.A. (“TLSA”) and FTL - Ferrovia Transnordestina Logística S.A. (“FTL”), which has the concession to operate the former Northeast Railway System of RFFSA, in the States of Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco and Alagoas, with TLSA being responsible for the rail links of Missão Velha-Salgueiro, Salgueiro-Trindade, Trindade-Eliseu Martins, Salgueiro-Porto de Suape and Missão Velha-Porto de Pecém (Railway System II), still under construction, and FTL being responsible for the rail links of São Luiz-Mucuripe, Arrojado-Recife, Itabaiana-Cabedelo, Paula Cavalcante-Macau and Propriá-Jorge Lins (Railway System I). Ports : In the State of Rio de Janeiro, by means of its subsidiary Sepetiba Tecon S.A., operates the Container Terminal (“TECON”) and by means of its subsidiary CSN Mineração, the TECAR, both located at the Itaguaí Port. Established in the harbor of Sepetiba, the mentioned port has a privileged highway, railroad and maritime access. (“TECON”) is responsible for the shipments of CSN´s steel products, movement and storage of containers, consolidation and deconsolidation of cargo; our exports of iron ore are performed using the TECAR terminal; additionally, we use the terminal for landing of coal, petroleum, coke, sulfur and zinc concentrate for our own operation and for third parties. · Energy: Since the energy supply is fundamental in CSN´s production process, the Company owns and operates facilities to generate electric power for guaranteeing its self-sufficiency. The note 26 - “Segment Information” details the financial information per each of CSN´s business segment. · Going Concern In 2018, the Company amortized principal and interest in the approximate amount of R$7.1 billion of its loans and financing. In 2019, loans and interest to be incurred next year, are expected to be paid in the approximate amount of R$3.5 billion. The financial leverage may adversely affect the businesses, financial conditions and operating results. Which can entail the following considerations: · Allocation of a substantial part of the cash generated from operations for repayment of the borrowings. · Exposure to fluctuations in interest rates due to the renegotiation of debts and new borrowings taken, and fluctuations in exchange rates since a significant part of the borrowings is denominated in foreign currency. · Increase in the economic and financial vulnerability due to adverse conditions of the industry and segment, limiting the funds available in the short term, considering the high financial leverage and the expected cash disbursements; · Limitation of the Company’s ability to enter into new businesses (acquisitions) until the financial leverage is reduced; · Limitation of the Company’s ability to obtain new credit lines under more favorable interest conditions due to the risks associated to the current financial leverage. The Company’s ability to continue operating depends, therefore, on the achievement of operating targets defined by management, in addition to refinancing of contracted debts, and/or actions related to financial deleveraging. In addition to the continuous focus on improvement in operating income, management has various actions in progress to increase the Company’s liquidity through an extension of borrowing payment terms. This plan was started in 2015, with the renegotiation of R$ 2.5 billion with Caixa Econômica Federal and R$ 2.2 billion with Banco do Brasil S.A, postponing the maturities from 2016 and 2017 to 2018 through 2022. In 2016, the Company extended the installments of certain NCE contracts amounting to R$ 100 million and prepayments of US$ 66 million with Bradesco, postponing the maturities from 2016 to 2019. Always committed to the plan to extend it debt payment term, mainly those of short term, the company’s management concluded, in February 2018, the reprofile of its debts at R$ 4.98 billion with Banco do Brasil, extending the maturity dates from 2018 to 2022 for maturities up to 2024. Still in February 2018, the company issued debt instruments (“Notes”) in the amount of US$350 million through our wholly-owned subsidiary CSN Resources S.A., with maturity date in 2023 and, in conjunction, made a repurchase offer (“Tender Offer”) of the Notes previously issued by CSN Islands XI Corp and CSN Resources S.A, having been repurchased US$350 million in Notes with maturities scheduled for 2019 and 2020. Additionally, Management studies alternatives to financial deleverage from the disposal of non-strategic assets. However, it is not possible to affirm that the sale of assets will occur within a 12-month period. Thus, the Company did not segregate and did not reclassify any assets in the financial statements as discontinued operations in accordance with IFRS 5. Based on management’s cash flow projections that covered the operational period until December 2019, which depend on factors such as the achievement of production targets, sales volumes and prices, as well as on renegotiations of borrowings, management believes that the Company has appropriate resources to continue its operations in a reasonably estimable period of time. Accordingly, the Company’s financial statements for the year ended December 31, 2018 were prepared based on the assumption of going concern. |
2. SUMMARY OF SIGNIFICANT ACCOU
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2.a) Basis of preparation and declaration of conformity The consolidated financial statements have been prepared and are being presented in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (IASB) and includes all of the relevant information of the financial statements. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. It is disclosed in the notes to this report all subjects involving a high degree of judgment or complexity, or when assumptions and estimates are significant to the consolidated financial statements, those subjects are related to the allowance for doubtful debts, provision for inventory losses, provision for labor, civil, tax, environmental and social security contingences, depreciation, amortization, depletion, provision for impairment, deferred taxes, financial instruments and employee benefits. Actual results may differ from these estimates. The financial statements are presented in thousands of Brazilian reais (R$). Depending on the applicable IFRS standard, the measurement criteria used in preparing the financial statements considers the historical cost, net realizable value, fair value or recoverable amount. When the IFRS allows us and option between acquisition cost and other measurement criteria, the acquisition cost was the criteria used. The consolidated financial statements were approved by the Board of Directors on April 4, 2019. 2.b) Consolidated financial statements The accounting policies have been consistently applied to all consolidated companies. The consolidated financial statements for the years ended December 31, 2018 and 2017 include the following direct and indirect subsidiaries, joint ventures and joint operations, as well as the exclusive funds, as follows: Equity interests (%) Companies 12/31/2018 12/31/2017 Core business Direct interest in subsidiaries: full consolidation CSN Islands VII Corp. 100.00 100.00 Financial transactions CSN Islands XI Corp. 100.00 100.00 Financial transactions CSN Islands XII Corp. 100.00 100.00 Financial transactions CSN Minerals S.L.U. (1) 100.00 Equity interests CSN Export Europe, S.L.U. (1) 100.00 Financial transactions and Equity interests CSN Metals S.L.U. (1) 100.00 Equity interests and Financial transactions CSN Americas S.L.U. (1) 100.00 Equity interests and Financial transactions CSN Steel S.L.U. 100.00 100.00 Equity interests and Financial transactions TdBB S.A (*) 100.00 100.00 Equity interests Sepetiba Tecon S.A. 99.99 99.99 Port services Minérios Nacional S.A. 99.99 99.99 Mining and Equity interests Companhia Florestal do Brasil 99.99 99.99 Reforestation Estanho de Rondônia S.A. 99.99 99.99 Tin Mining Companhia Metalúrgica Prada 99.99 99.99 Manufacture of containers and distribution of steel products CSN Gestão de Recursos Financeiros Ltda. (*) 99.99 99.99 Management of funds and securities portfolio CSN Mineração S.A. 87.52 87.52 Mining and Equity interests CSN Energia S.A. 99.99 99.99 Sale of electric power FTL - Ferrovia Transnordestina Logística S.A. 91.69 90.78 Railroad logistics Nordeste Logística S.A. 99.99 99.99 Port services Aceros México CSN (2) 0.08 Commercial representation, sales of steel and related activities CSN Inova Ltd.(3) 100.00 Advisory and implementation of new development projects Indirect interest in subsidiaries: full consolidation Companhia Siderúrgica Nacional (4) 100.00 Steel Lusosider Projectos Siderúrgicos S.A. 100.00 99.94 Equity interests and product sales Lusosider Aços Planos, S. A. 99.99 99.99 Steel and Equity interests CSN Resources S.A. 100.00 100.00 Financial transactions and Equity interests Companhia Brasileira de Latas 99.00 99.99 Sale of cans and containers in general and Equity interests Companhia de Embalagens Metálicas - MMSA 99.67 99.67 Production and sale of cans and related activities Companhia de Embalagens Metálicas - MTM 99.67 99.67 Production and sale of cans and related activities CSN Steel Holdings 1, S.L.U. 100.00 100.00 Financial transactions, product sales and Equity interests CSN Productos Siderúrgicos S.L. 100.00 100.00 Financial transactions, product sales and Equity interests Stalhwerk Thüringen GmbH 100.00 100.00 Production and sale of long steel and related activities CSN Steel Sections UK Limited (*) 100.00 100.00 Sale of long steel CSN Steel Sections Polska Sp.Z.o.o 100.00 100.00 Financial transactions, product sales and Equity interests CSN Asia Limited 100.00 100.00 Commercial representation CSN Mining Holding, S.L 87.52 87.52 Financial transactions, product sales and Equity interests CSN Mining GmbH 87.52 87.52 Financial transactions, product sales and Equity interests CSN Mining Asia Limited 87.52 87.52 Commercial representation Aceros México CSN (2) 99.92 100.00 Commercial representation, sale of steel and related activities Lusosider Ibérica S.A 100.00 99.94 Steel, commercial and industrial activities and equity interests CSN Mining Portugal, Unipessoal Lda. 87.52 87.52 Commercial and representation of products Companhia Siderúrgica Nacional, LLC (4) 100.00 Import and distribution/resale of products Direct interest in joint operations Itá Energética S.A. 48.75 48.75 Electric power generation Consórcio da Usina Hidrelétrica de Igarapava 17.92 17.92 Electric power consortium Direct interest in joint ventures MRS Logística S.A. 18.64 18.64 Railroad transportation Aceros Del Orinoco S.A. 31.82 31.82 Dormant company CBSI - Companhia Brasileira de Serviços de Infraestrutura 50.00 50.00 Equity interests and product sales and iron ore Transnordestina Logística S.A. 46.30 46.30 Railroad logistics Indirect interest in joint ventures MRS Logística S.A. 16.30 16.30 Railroad transportation Direct interest in associates Arvedi Metalfer do Brasil S.A. 20.00 20.00 Metallurgy and Equity interests (*) They are Dormant Companies therefore they do not appear in the note 9.a, where is disclosed business information under the equity method and fair value through profit or loss and comprehensive income. · Events in 2018: (1) On February 6, 2018, the Spanish commercial registry recognized the merger by absorption of the companies by CSN Steel, S.L.U., the date from which the companies were considered legally extinct, before third parties and for the purposes of commercial law, the merger is retroactive to the date of December 28, 2017; (2) Transfer of 1% stake in Aceros Mexico CSN from CSN Steel to Companhia Siderúrgica Nacional occurred on February 1, 2018. On September 18, 2018, CSN Steel increased the capital of Aceros Mexico CSN, diluting the direct interest of Companhia Siderúrgica Nacional to 0.08%, with CSN Steel holding 99.92%. On February 1, 2019, the Federal Taxpayers' Registry was canceled and, therefore, the settlement process of Aceros Mexico CSN was terminated, however, before third parties and for the purposes of commercial law, the settlement was retroactive to September 18, 2018; (3) Company incorporated in 2018. (4) On June 5, 2018 CSN LLC had its corporate name changed to "Heartland Steel Processing, LLC". On the same date, a new company was incorporated under the name "Companhia Siderúrgica Nacional, LLC", a wholly owned subsidiary of Heartland Steel Processing, LLC. On June 28, 2018, Companhia Siderúrgica Nacional, LLC., became a wholly-owned subsidiary of CSN Steel and, on June 29, 2018, Heartland Steel Processing, LLC was sold to Steel Dynamics, Inc. The remaining assets are registered at Companhia Siderúrgica Nacional, LLC, a subsidiary of CSN Steel (see note 3). · Exclusive funds Equity interests (%) Exclusive funds 12/31/2018 12/31/2017 Core business Direct interest: full consolidation Diplic II - Private credit balanced mutual fund 100.00 100.00 Investment fund Caixa Vértice - Private credit balanced mutual fund 100.00 100.00 Investment fund VR1 - Private credit balanced mutual fund 100.00 100.00 Investment fund In preparing the consolidated financial statements, we have adopted the following consolidation procedures: · Transactions between subsidiaries, associates, joint ventures and joint operations Unrealized gains on transactions with subsidiaries, joint ventures and associates are eliminated to the extent of CSN’s equity interests in the related entity by the consolidation process. Unrealized losses are eliminated in the same manner as unrealized gains, although only to the extent that there are not indications of impairment. The Company eliminates the effect on profit or loss of transactions carried out with joint ventures and, as a result, reclassifies part of the equity in results of joint ventures to financial expenses, cost of sales and income tax and social contribution. The base date to the financial statements of the subsidiaries and joint ventures is the same as of the Company, and their accounting policies are also in line with the policies adopted by the CSN. Subsidiaries Subsidiaries are all entities (including special purpose entities) which financial and operating policies can be conducted by the Company and when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to use its power to affect its returns. The existence and effect of potential voting rights that are actually exercisable or convertible are taken into consideration when assessing whether the Company controls another entity. Subsidiaries are fully consolidated from the date when the control is transferred to the Company and are deconsolidated from the date when such control ceases. Joint ventures and joint operations Joint arrangements are all entities over which the Company has joint control with one or more other parties. The investments in joint arrangements are classified as joint operations or joint ventures depending on the contractual rights and obligations of each investor. Joint operations are accounted for in the financial statements in order to represent the Company's contractual rights and obligations. Therefore, the assets, liabilities, revenues and expenses related to its interests in joint operations are accounted for individually in the financial statements. Joint ventures are accounted for under the equity method and are not consolidated. The Company eliminates the effect on profit or loss of transactions carried out with joint ventures and, as a result, eliminates part of the equity in results of joint ventures to financial expenses, cost of sales, net sales and income tax and social contribution. Associates Associates are all entities over which the Company has significant influence but not control, generally through a shareholding percentage from 20% up to 50% of the voting rights. Investments in associates are accounted for under the equity method and are initially recognized at cost. · Transactions and non-controlling interests The Company treats transactions with non-controlling interests as transactions with owners of the Company. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of subsidiary net assets is recorded in shareholders' equity. Gains and losses on disposals to non-controlling interests are also recognized directly in shareholders' equity. When the Company no longer holds control, any retained interest in the entity is remeasured to its fair value, with the change in the carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest in an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Company had disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. 2.c) Foreign currencies i. Functional and presentation currency Items included in the financial statements are related to each one of the Company's subsidiaries are measured using the currency of the primary economic environment in which the subsidiary operates (“functional currency”). The consolidated financial statements are presented in Brazilian reais (R$), which is the Company’s functional currency and the Group’s presentation currency. ii. Transactions and balances According to IAS 21 – The effects of changes in foreign exchange rates, transactions in foreign currencies are translated into the functional currency using the exchange rates in effect at the dates of the transactions or valuations when their values are remeasured. Foreign exchange gains and losses resulting from the settlement of those transactions and from the translation at exchange rates in effect as of December 31, 2018 related to monetary assets and liabilities denominated in foreign currencies are recognized in the income statement, except when they are recognized in shareholders' equity as a result of foreign operation characterized as foreign investment. According to IAS 21 and IFRIC 22 – foreign currency transactions and advance consideration, the transactions in which the Company recognizes a non-monetary asset or non-monetary liability involving prepayments or receipts in foreign currency are recorded at the exchange rate of the date the entity initially recognized (transaction date) the non-monetary asset or non-current liability monetary. The balances of assets and liabilities are translated by exchange rates prevailing at the end of the reporting period. As of December 31, 2018, US$1 is equal to R$3.8748 (R$3.3080 at December 31, 2017) and €1 is equal to R$4.4390 (R$3.9693 at December 31, 2017), according to the rates obtained from Central Bank of Brazil website. All other foreign exchange gains and losses, including foreign exchange gains and losses related to borrowings and cash and cash equivalents, are presented in the income statement as financial income or expenses. iii. Group companies The results and financial position of all the Group’s entities (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: · The assets and liabilities of each balance sheet presented are translated by exchange rate at the end of the reporting period; · The income and expenses of each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates at the transaction dates, in which case income and expenses are translated at the rate in effect at the transaction dates); · All resulting exchange differences are recognized as a separate component in other comprehensive income; and · Gains and losses accumulated in shareholders' equity are included in the income statement when the foreign operation is partially disposed or sold. 2.d) Cash and cash equivalents Cash and cash equivalents include cash on hand, in bank accounts and other short-term highly liquid investments redeemable within 90 days from the end of the reporting period, readily convertible into a known amount of cash and subject to an insignificant risk of change in value. Bank certificates of deposit and government securities that do not meet the above criteria are not considered cash equivalents and are classified as financial investments, according to note 5. 2.e) Trade receivables Trade receivables are initially recognized at fair value, including the related taxes and expenses, being foreign currency-denominated trade receivables are adjusted at the exchange rate in effect at the end of the reporting period. The accounts receivable with a receipt period of more than 90 days are subject to a present value adjustment and analysis regarding the operation. With the adoption of the new IFRS 9 - Financial instruments, the Company started to apply the new model of expected losses, where it considers all possible loss events over the life of its receivables. These expected credit losses are estimated according to the loss rate by maturity range adopted by the Company since the initial (recognition) date of the asset. The Company considers customer history, default rate, financial situation and the position of its legal advisors to estimate the expected credit losses. 2.f) Inventories Inventories are carried at the lower of cost and net realizable value. Cost is determined using the weighted average cost method on the acquisition of raw materials. The costs of finished goods and work in process comprise raw materials, labor and other direct costs (based on the normal production capacity). Net realizable value represents the estimated selling price in the normal course of business, less estimated costs of completion and costs necessary to make the sale. The allowance for estimated losses on slow-moving or obsolete inventories are recognized when considered necessary. Stockpiled ore inventories are accounted for as processed when removed from the mine. The cost of finished goods comprises all direct costs necessary to transform stockpiled inventories into finished goods. 2.g) Investments Investments in subsidiaries, joint ventures and associates are accounted for under the equity method of accounting and are initially recognized at cost. The gains or losses are recognized in profit or loss as operating income (or expenses). In the case of foreign exchange differences arising on translating foreign investments that have a functional currency different from the Company’s, changes in investments due exclusively to foreign exchange differences, as well as adjustments to pension plans and investments that impact the subsidiaries’ shareholders' equity, are recognized in line item “Cumulative translation adjustments”, in the Company’s shareholders' equity, and are only recognized in profit or loss when the investment is disposed or written off due to impairment loss. Other investments are recognized at cost or fair value. When necessary, the accounting policies of subsidiaries, joint ventures and associates are changed to ensure consistency with the policies adopted by the Company. 2.h) Business combination The acquisition method is used to account for on each business combination conducted by the Company. The consideration transferred by acquiring an entity is measured by the fair value of the assets transferred, liabilities incurred, and equity instruments issued by the Company. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement, where applicable. Acquisition-related costs are recognized in profit or loss for the year, as incurred. Identifiable assets acquired, and liabilities assumed in a business combination are initially measured at their fair values at the acquisition date. 2.i) Property, plant and equipment Property, plant and equipment are carried at cost of acquisition, formation or construction, less accumulated depreciation or depletion and any impairment loss. Depreciation is calculated under the straight-line method based on the remaining economic useful economic lives of assets, as mentioned in note 10. The depletion of mines is calculated based on the quantity of ore mined. Land is not depreciated since their useful life is considered indefinite. However, if the tangible assets are mine-specific, that is, used in the mining activity, they are depreciated over the shorter between the normal useful lives of such assets and the useful life of the mine. The Company recognizes in the carrying amount of property, plant and equipment the cost of replacement, and consequently reducing the carrying amount of the part that is replaced if it is probable that future economic benefits embodied therein will revert to the Company, and if the cost of the asset can be reliably measured. All other disbursements are expensed as incurred. Borrowing costs related to funds obtained for construction in progress are capitalized until these projects are completed. If some components of property, plant and equipment have different useful lives, these components are accounted for in separate line items of property, plant and equipment. Gains and losses on disposal are determined by comparing the sale value less the residual value and are recognized in ‘Other operating income (expenses)’. Exploration expenditures are recognized as expenses until the viability of mining activities is established; after this period the subsequent development costs are capitalized. Exploration and valuation expenditures include: · Research and analysis of historical data related to area exploration; · Topographic, geological, geochemical and geophysical studies; · Determine the mineral asset’s volume and quality/grade; · Examine and test the extraction processes and methods; · Topographic surveys of transportation and infrastructure needs; · Market and financial studies; The development costs from new mineral deposits or from capacity expansion in mine operations are capitalized and amortized using the produced (extracted) units’ method based on the probable and proven ore quantities. The development stage includes: · Drillings to define the ore body; · Access and draining plans; · Advance removal of overburden (top soil and waste material removed prior to initial mining of the ore body) and waste material (non-economic material that is intermingled with the ore body). Stripping costs (the costs associated with the removal of overburden and other waste materials) incurred during the development of a mine, before production commences, they are capitalized as part of the depreciable cost of developing the property. Such costs are subsequently amortized over the useful life of the mine based on proven and probable reserves. Stripping costs in the production phase are included in the cost of the inventory produced, except when a specific extraction campaign is made to access deeper deposits where ore body is located. In these cases, costs are capitalized and taken to noncurrent assets when the mineral ore deposit is extracted and are amortized over the useful life of the ore body. The Company holds spare parts that will be used to replace parts of property, plant and equipment and that used to increase the asset’s useful life when it exceeds 12 months. These spare parts are classified in property, plant and equipment and not in inventories. 2.j) Intangible assets Intangible assets comprise assets acquired from third parties, including through business combinations. These assets are recognized at cost of acquisition or formation, less amortization calculated on a straight-line basis on the exploration or recovery periods estimated. Mineral rights acquired are classified in line item ‘’other assets’’ in intangible assets. Intangible assets with indefinite useful lives and goodwill based on expected future profitability are not amortized. · Goodwill Goodwill represents the positive difference between the amount paid and/or payable for the acquisition of a business and the net fair values of the acquiree´s assets and liabilities. Goodwill on acquisitions from business combination is recognized as intangible assets in the consolidated financial statements. The gain on purchase is recognized as a gain in profit for the period at the acquisition date. Goodwill is annually tested for impairment. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of a Cash-Generating Unit (CGU) include the carrying amount of goodwill related to the CGU sold. Goodwill is allocated to CGUs for impairment testing purposes. The allocation is made to CGUs or group of CGUs that are expected to benefit from the business combination in which the goodwill arose, and if that unit is not greater than the operating segment. · Software Software licenses purchased are capitalized based on the costs incurred to purchase the software and make it ready for use. These costs are amortized on a straight-line basis over the estimated useful lives in up to 10 years. 2.k) Impairment of non-financial assets Assets with infinite useful lives, such as goodwill, are not subject to amortization and are annually tested for impairment. Assets subject to amortization and/or depreciation, such as property, plant and equipment, are tested for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. An impairment loss is recognized at the amount at which the carrying amount of the asset exceeds its recoverable amount. The recoverable amount is the higher of the fair value of an asset less costs to sell and its value in use. For impairment testing purposes, assets are grouped at their lowest levels for which there are separately identifiable cash flows (Cash Generating Units, or CGUs). Non-financial assets, except for goodwill, are subsequently reviewed for possible reversal of the impairment at the reporting date. 2.l) Employee benefits i. Employee benefits Defined contribution plans A defined contribution plan is as a post-employment benefit plan whereby an entity pays fixed contributions to a separate entity (pension fund) and will not have any legal or constructive obligation to pay additional amounts. Obligations for contributions to defined contribution pension plans are recognized as employee benefit expenses in the periods during which services are provided by employees. Contributions paid in advance are recognized for an asset since it is agreed that either cash reimbursement or future reduction on payables will flow back to CSN. Contributions to a defined contribution plan that is expected to mature twelve (12) months after the end of the period in which the employee provides services are discounted to their present values. Defined benefit plans A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company’s net obligation regarding defined pension benefit plans is calculated individually for each plan by estimating the value of the future benefit that the employees accrue as return for services provided in the current period and in prior periods; such benefit is discounted to its present value. The discount rate is the yield presented at the end of the reporting period for top line debt securities whose maturity dates approximate the terms and conditions of the Company’s obligations and which are denominated in the same currency as the one in which it is expected that the benefits will be paid. The calculation is made annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit for the Company, the asset to be recognized is limited to the total amount of any unrecognized costs of past services and the present value of the economic benefits available in the form of future plan reimbursements or reduction in future contributions to the plan. The present value of economic benefits is calculated taking into account the funding requirements applicable to the Company’s plans. An economic benefit is available to the Company if it is realizable during the life of the plan or upon settlement of the plan’s liabilities. The Company and some of its subsidiaries offered a postretirement healthcare benefit to its employees. The right to these benefits is usually contingent to their remaining in employment until the retirement age and the completion of the minimum length of service. The expected costs of these benefits are accumulated during the employment period, and are calculated using the same accounting method used for defined benefit pension plans. These obligations are annually valued by qualified independent actuaries. When the benefits of a plan are increased, the portion of the increased benefit related to past services of employees is recognized in profit or loss until the benefits become vested. When benefits became vesting rights, all actuarial gains or losses are immediately recognized in profit or loss. The Company recognizes all actuarial gains or losses resulting from defined benefit plans immediately in other comprehensive income. If the plan is extinguished, actuarial gains and losses are recognized in profit or loss. ii. Profit sharing and bonus Employee profit sharing and executives’ variable compensation are linked to the achievement of operating and financial targets. The Company recognizes a liability and an expense substantially allocated to production cost and, where applicable, to general and administrative expenses when such goals are met. 2.m) Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation and it has reliable cost estimation. The amount recognized as a provision is the best value estimation required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). Success fees are accrued to the extent that they make it probable that disbursements will occur. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is probable that reimbursement will be received and that the amount of the receivable can be measured reliably. 2.n) Concessions The Company has governmental concessions to provide the following types of services: railway and port transportation managed by Company´s subsidiaries and joint-ventures. The concessions included in the consolidated financial statements are related to the rail network in the Northeast area, managed by the subsidiary FTL, the container terminal in Itaguaí, managed by the subsidiary Sepetiba Tecon and the port terminal TECAR for exporting ore and importing coal, which is managed by the subsidiary CSN Mineração. The Company´s concession contracts are not within the scope of IFRIC12 – Service Concession Arrangements, considering that the grantor (refers to the government) has effectively no control over what, to whom and at what price the services will be provided by the dealer (refers to the private part) to the customers. In essence, all concession contracts have operating leasing characteristics. Therefore, the accounting should follow the accounting rules applicable to leases, according IAS 17 - Leases. Our concession agreements provide for the use of a specific asset for an agreed period of time, but without any transfer of ownership to the Company or option to buy these assets after the completion of these contracts. Payments made under operating leases are recognized in the income statement on a straight-line basis over the period of the contracts. There are assets related to our concessions which are subject to reversion to the grantor at the end of the concession agreement. The residual carrying amounts of these assets on December 31, 2018 are listed below with an indication of their classification in our financial statements: Concession Net book value (R$) Classification in balance sheet Sepetiba Tecon S.A. (TECON) 347 million Fixed assets and intangible (Software) Tecar (CSN Mineração) 1,616 million Fixed assets and intangible (Software) FTL - Ferrovia Transnordestina Logística S.A. (FTL) 227 million Fixed assets Transnordestina logística S.A. (TLSA) 8,439 million (1) Investment (1) The amount of fixed and intangible assets is recognized in TLSA’s financial statements. The Company recognizes its interest in the assets under the equity method. 2.o) Share capital Common shares are classified in shareholders' equity. Incremental costs directly attributable to the issue of new shares or options are shown in shareholders' equity as a deduction to the amount received, net of taxes. When any Company of the Group buys Company shares (treasury shares), the amount paid, including any directly additional costs (net of income tax), is deducted from shareholders' equity attributable to owners of the Company until the shares are canceled or sold. When these shares are subsequently sold, any amount received, net of any directly attributable additional transaction costs |
3. SALE OF FOREIGN SUBSIDIARY
3. SALE OF FOREIGN SUBSIDIARY | 12 Months Ended |
Dec. 31, 2018 | |
Sale Of Foreign Subsidiary | |
SALE OF FOREIGN SUBSIDIARY | During the second quarter of 2018, Companhia Siderúrgica Nacional ("CSN") announced to its shareholders and to the market, through a Material Fact, the sale by its wholly-owned subsidiary CSN Steel S.L.U., total interest in Heartland Steel Processing, LLC, new corporate name of Companhia Siderúrgica Nacional LLC ("LLC") to Steel Dynamics, Inc. ("SDI"), approved on the same date by the Board of Directors. The LLC is located in the United States with operations in stripping, cold rolling and galvanizing of flat steel. Still in the second quarter of 2018, after fulfilling all the precedent conditions foreseen in the purchase and sale agreement entered into with SDI, the Company concludes the transaction with the transfer of the equity interest and receipt of the base value of the transaction, adjusted in US$ 400 million, as shown below: 06/30/2018 Change in working capital In 2018 U$$ R$ U$$ R$ R$ Receipt from disposal of the investment 395,661 1,525,590 1,525,590 Deposit in Warranty 2,000 7,712 7,712 Contractual expenses and fees (d) 2,339 9,021 9,021 Basis price for alienation (a) 400,000 1,542,323 1,542,323 Working Capital Receivable (b) (*) 34,008 131,127 3,581 14,402 145,529 Shareholder's Equity da LLC (c) 133,445 514,537 514,537 Net gain of alienation = (a+b-c-d) 298,224 1,149,892 3,581 14,402 1,164,294 (*) The final value of the transaction was subject to post-closing adjustment of working capital, which was completed in September 2018. The working capital of LLC ascertained and received was US$37,589 equivalent to R$145,529. The sale of LLC generated a cumulative gain in the year of 1,164,294 (see note 24). The net investment, results and cash flows from the sale of the investment are summarized below: 3.a) Balance sheet LLC 06/30/2018 ASSETS Current Assets 418,014 Cash and cash equivalents 760 Trade Receivable 114,266 Inventory 299,373 Other current assets 3,615 Non-current assets 191,431 Other non-current assets 205 Property, plant and equipment 191,226 TOTAL ASSETS 609,445 LIABILITIES Current Liabilities 89,810 Borrowings and Financing 5,446 Social and Labor obligations 5,526 Trade payables 76,400 Tax payables 1,398 Other payables 1,040 Non-current liabilities 5,098 Borrowings and Financing 5,098 Shareholders' equity (disposal) 514,537 TOTAL LIABILITIES 609,445 3.b) Statement of Income 06/30/2018 06/30/2017 Net Revenues 997,061 472,409 Cost from sale of goods and rendering of services (888,850) (388,322) Gross profit 108,211 84,087 Selling expenses (24,650) (10,521) General and administrative expenses (15,649) (9,531) Other operating expenses, net (844) (358) Profit before financial income (expenses) 67,068 63,677 Financial income (expenses), net (2,641) (428) Profit (loss) before taxes 64,427 63,249 Income tax and Social Contribution (1,730) - Profit (loss) for the period 62,697 63,249 3.c) Statement of Cash Flows 06/30/2018 06/30/2017 Net cash provided by (used) by operating activities 149,691 (69,216) Net cash provided by (used) by investing activities (6,269) (2,492) Net cash provided by (used) by financing activities (176,592) (1,860) Increase (decrease) in cash and cash equivalents for the period (33,170) (73,568) Cash and equivalents at the beginning of the year 33,930 112,428 Cash and equivalents at the end of the year 760 38,860 Net revenue receipts from sale of subsidiary LLC In 2018 Net cash received from the sale of the asset 1,525,590 Cash and cash equivalents transferred on the sale of the assets (760) Working capital received 145,529 Net cash provided by the sale of assets 1,670,359 |
4. CASH AND CASH EQUIVALENTS
4. CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2018 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | Consolidated 12/31/2018 12/31/2017 Current Cash and cash equivalents Cash and banks 1,124,714 193,702 Short-term investments In Brazil: Government securities 10,247 12,100 Private securities 609,480 644,525 619,727 656,625 Abroad: Time deposits 503,563 2,561,245 Total short-term investments 1,123,290 3,217,870 Cash and cash equivalents 2,248,004 3,411,572 The funds available established in Brazil, are basically invested in repurchase agreements and Bank Certificate of Deposit (“CDBs”) and yield interest based on the floating of Certificates of Interbank Deposits (“CDI”) and government securities are basically repurchase agreements backed by National Treasury Notes. The Company invests part of the resources through the exclusive investment funds, whose financial statements have been consolidated in the Company.The funds are managed by BNY Mellon Serviços Financeiros DTVM S.A. and Caixa Econômica Federal (CEF). The funds available abroad are invested in time deposits |
5. FINANCIAL INVESTMENTS
5. FINANCIAL INVESTMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Financial Investments | |
FINANCIAL INVESTMENTS | Consolidated Current Non-Current 12/31/2018 12/31/2017 12/31/2018 CDB - Certificate of bank deposit 882,376 716,218 Government securities (2) 13,337 19,494 Time Deposit (3) 7,772 895,713 735,712 7,772 (1) Financial investment linked to Bank Certificate of Deposit to secure a letter of guarantee of certain loans. (2) Investments in National Treasury Bills (LFT) managed by its exclusive funds. (3) Investments in Time Deposit in custody to cover additional expenses of the sale of LLC. |
6. TRADE RECEIVABLES
6. TRADE RECEIVABLES | 12 Months Ended |
Dec. 31, 2018 | |
Trade Receivables | |
TRADE RECEIVABLES | Consolidated 12/31/2018 12/31/2017 Trade receivables Third parties Domestic market 1,369,396 1,290,823 Foreign market 852,821 982,846 2,222,217 2,273,669 Allowance for doubtful debts (237,352) (191,979) 1,984,865 2,081,690 Related Parties (note 19 b) 93,317 115,388 2,078,182 2,197,078 In accordance with Group’ internal sales policy the Group performs operations relating to assignment of receivables without co-obligation in which, after assigning the customer’s trade notes/bills and receiving the amounts from each transaction closed, CSN settles the trade receivables and becomes entirely free of the credit risk on the transaction. In the consolidated, this transaction totals R$46,210 as of December 31, 2018 (R$186,827 as of December 31, 2017). The breakdown of gross trade receivables from third parties is as follows: Consolidated 12/31/2018 12/31/2017 Current 1,514,847 1,391,839 Past-due up to 30 days 177,287 167,760 Past-due up to 180 days 47,684 142,346 Past-due over 180 days 482,399 571,724 2,222,217 2,273,669 The movements in the Group’s allowance for doubtful debts are as follows Consolidated 12/31/2018 12/31/2017 Opening balance (191,979) (172,782) Expected credit losses (53,706) (36,697) Recovery of receivables 8,333 17,500 Closing balance (237,352) (191,979) With the adoption of IFRS 9 - Financial Instruments, the Company changed the model as from January 1, 2018 from "losses incurred" to "expected credit losses", where it began to constitute the impairment from the date of recognition of the assets (accounts receivable to expire). The application of IFRS 9 did not bring material impacts to the Company. |
7. INVENTORIES
7. INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Inventories Abstract | |
INVENTORIES | Consolidated 12/31/2018 12/31/2017 Finished goods 1,362,981 1,308,802 Work in progress 1,122,933 1,135,589 Raw materials 1,560,499 1,050,588 Spare parts 856,097 814,725 Iron ore 258,612 278,041 Advances to suppliers 36,192 12,514 (-) Provision for losses (157,754) (135,840) 5,039,560 4,464,419 The movements in the provision for inventory losses are as follows: Consolidated 12/31/2018 12/31/2017 Opening balance (135,840) (101,176) (Estimated losses) / Reversal of inventories with low turnover and obsolescence (21,914) (34,664) Closing balance (157,754) (135,840) |
8. OTHER CURRENT AND NON-CURREN
8. OTHER CURRENT AND NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Other Current And Non-current Assets | |
OTHER CURRENT AND NON-CURRENT ASSETS | The group of other current and non-current assets is comprised as follows: Consolidated Current Non-current 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Judicial deposits (note 17) 347,950 339,351 Credits with the PGFN (1) 46,774 46,774 Recoverable taxes (2) 1,412,335 866,986 1,822,388 401,071 Prepaid expenses 49,830 50,078 49,808 30,741 Actuarial assets - related parties (Note 19 b) 99,894 111,281 Derivative financial instruments (note 13 I) 351 Securities held for trading (note 13 I) 4,503 2,952 Iron ore inventory (3) 144,499 144,499 Northeast Investment Fund – FINOR 26,598 26,598 Loans with related parties (notes 19 b and 13 I) 2,675 2,441 706,605 554,694 Other receivables from related parties (Note 19 b) 3,649 3,577 218,840 30,770 Other receivables (note 13 I) 7,451 20,024 Principal and monetary adjustment related to the Eletrobrás' compulsory loan (Note 13 I) (4) 813,428 784,741 Dividends receivable (note 19b) (*) 46,171 41,528 Employee debt (*) 31,645 33,942 Sea freight (5) 117,156 Other receivables (*) 12,753 3,667 Others 71,956 67,544 988 37,931 1,753,024 1,072,715 4,285,223 2,528,475 (*) In December 2018, the Company reclassified the balances from 2017 related to Dividends receivable, Employee Debits and Other Receivables to Other Current and Non-Current Assets. Previously, the amounts were presented in the note ‘Accounts Receivable’. (1) Refers to the excess of judicial deposit originated by the 2009 REFIS (Tax Debt Refinancing Program). (2) Refers mainly to PIS / COFINS, ICMS recoverable and income and social contribution taxes to be offset. On September 20, 2018, res judicata the writ of mandamus and special appeal filed in 2006, in which CSN and Federal Union were parties, related to the discussion about the non-inclusion of ICMS in the calculation base of PIS and COFINS, confirmed the CSN's right to offset the amounts unduly paid under these taxes from 2001 to 2013. In this way, the Company recognized in 2018 the amount of R$ 2,208,462, under "Taxes recoverable", being in the current assets R$ 793,516 and in the noncurrent R$ 1,414,945 and in the "Other Operating" account, was recognized the amount of R$ 1,102,365, see note 24, and R$ 1,106,097 as "Financial Result", see note 25. (3) Long-term iron ore inventories that will be used after the construction of the processing plant, which will produce pellet feed, expected to start operating in the first half of 2020. (4) This is a certain and due amount, arising from the res judicata favorable decision to the Company, which is irreversible and irrevocable, in order to apply the STJ's consolidated position on the subject, which culminated in the conviction of Eletrobrás to the payment of the correct interest and monetary adjustment of the Compulsory Loan. The res judicata decision, as well as the certainty about the amounts involved in the liquidation of the sentence (judicial procedure to request the satisfaction of the right), allowed the conclusion that the entry of this value is certain. (5) Refers to payment of freight expenses and marine insurance on unrecognized sales revenues, following the guidelines of IFRS15, the freight in incoterms "CIF" is considered a distinct performance obligation and for these, there’s no conclusion about the delivery process in December 31, 2018, but the transport service provider had already been paid. |
9. INVESTMENTS
9. INVESTMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Investment Abstract | |
INVESTMENTS | · Reduction of financial leverage With the primary objective of reducing the Company’s financial leverage, Management is committed to a plan to dispose of a set of assets, however, it is not possible to confirm that the sale within a period of 12 months is highly probable for any of the assets contemplated. The Company considers several sales scenarios that vary according to different macroeconomic and operational assumptions. In this context, the Company did not segregate and did not reclassify such assets in the financial statements as discontinued operations in accordance with IFRS 5. 9.a) Investments in joint ventures, joint operations, associates and other investments 12/31/2018 12/31/2017 Companies Number of shares (in units) Participation in Participation in % equity interest Assets Liabilities Fair Value Allocation Net income / (loss) for the year % equity interest Assets Liabilities Fair Value Allocation Net income / (loss) for the year Shareholders’ equity Shareholders’ equity Joint-venture and Joint-operation MRS Logística S.A.(*) 126,716,070 37.27 3,125,912 1,693,200 1,878,095 194,403 37.27 3,039,761 1,714,729 1,782,162 171,905 CBSI - Companhia Brasileira de Serviços de Infraestrutura 1,876,146 50.00 25,941 19,997 5,944 4,501 50.00 16,005 13,654 2,351 1,785 Transnordestina Logística S.A. 24,168,304 46.30 4,065,604 2,883,851 1,181,753 271,116 (20,429) 46.28 3,806,380 2,604,198 1,202,182 271,116 (21,357) 7,217,457 4,597,048 3,065,792 271,116 178,475 6,862,146 4,332,581 2,986,695 271,116 152,333 Associates Arvedi Metalfer do Brasil 46,994,971 20.00 40,712 26,308 14,404 (5,087) 20.00 43,653 23,978 19,675 (4,368) 40,712 26,308 14,404 (5,087) 43,653 23,978 19,675 (4,368) Classified as fair value through profit or loss and comprehensive income (Note 13 I) Usiminas 2,250,623 2,200,459 Panatlântica 28,566 21,974 2,279,189 2,222,433 Other Investments 112 76 Total Investments 5,359,497 271,116 5,228,879 271,116 5,630,613 5,499,995 (*) On December 31, 2018 and 2017, the Company directly owned 26,611,282 common shares, 2,673,312 Class A preferred shares and 34,092,604 Class B preferred shares, totaling 36,765,916 preferred shares and indirectly through its subsidiary CSN Mineração 25,802,872 common shares, 37,536,000 Class A preferred shares of MRS Logística S.A.; The number of shares, the carrying amounts of assets, liabilities and shareholders’ equity, and the amounts of profit or loss for the year refer to the equity interests held by CSN in those companies. 9.b) Changes of investments balances in joint ventures, joint operations, associates and other investments Consolidated 12/31/2018 12/31/2017 Opening balance of investments 5,499,995 4,568,451 Opening balance of loss provisions Capital increase 20,579 Dividends (87,846) (79,189) Comprehensive income (1) 272 850,640 Equity in results of affiliated companies (2) 173,145 147,800 Receipt of sale - Usiminas' shares (39,377) Update of shares measured at Fair Value through profit or loss (VJR) (note 13 II) 96,133 Amortization of fair value – investment in MRS (11,746) (11,746) Others 37 3,460 Closing balance of investments 5,630,613 5,499,995 (1) Refers to the marked-to-market of investments classified at fair value through profit or loss, translation to the reporting currency of the foreign investments of which functional currency is not the Brazilian Reais, actuarial gain/loss and gain/loss on net investment hedge from investments measured by equity method. (2) The table below shows the reconciliation of the equity in results of affiliated companies included on investment balance with the amount disclosed in the income statement and it is due to the elimination of the results of the CSN´s transactions with these companies Consolidated 12/31/2018 12/31/2017 Equity in results of affiliated companies MRS Logística S.A. 194,403 171,905 CBSI - Companhia Brasileira de Serviços de Infraestrutura 4,501 1,785 Transnordestina Logística S.A. (20,429) (21,357) Arvedi Metalfer do Brasil S.A. (5,087) (4,368) Others (243) (165) 173,145 147,800 Eliminations To cost of sales (42,806) (40,823) To taxes 14,554 13,880 Others Amortization of fair value – investment in MRS (11,746) (11,746) Others 2,559 Equity in results adjusted 135,706 109,111 9.c) Additional information about the main operating subsidiaries · SEPETIBA TECON S.A. (“Tecon”) The Container Terminal was created to exploit the terminal n o Tecon won a bidding procedure and entered into the lease agreement in October 23, 1998 for operation of the port terminal for a period of 25 years, extendable for an equal period. Upon termination of the lease, it will return to the Union as well as all the rights and privileges transferred to Tecon, along with the ownership of assets and those resulting from investments, declared reversible by the Federal Government for being necessary to the continuity of terminal´s operation. The reversible assets will be indemnified by the Federal Government at the residual value of cost, based on the accounting records of Tecon after deducting depreciation. · ESTANHO DE RONDÔNIA S.A. (“ERSA”) Headquartered in the state of Rondônia, the subsidiary operates two units, which are based in the cities of Itapuã do Oeste/RO and Ariquemes/RO. In Itapuã do Oeste is extracted the cassiterite (tin ore) and in Ariquemes is located the casting operation, where the metallic tin is made, which is the raw material used in UPV for the production of tin plates. · COMPANHIA METALÚRGICA PRADA (“Prada”) Prada operates in the area of two segments: steel metal packaging, production and processing and distribution of flat steel. Metal packaging In the steel metal packaging segment, Prada produces its supply chain includes the chemical and food segments, providing packaging and printing services to leading companies in the market. Distribution Prada is a player in the market of processing and distribution regarding flat steel products, with a diversified product line. It provides coils, rolls, strips, blanks, metal sheets, profiles, tubes and tiles, among other products, to the most different industry segments - from automotive to construction. It is also specialized in providing service steel processing, meeting the demand of all national companies. · CSN ENERGIA S.A. Its main objective is the distribution of the excess electric power generated by CSN and Companies, consortiums or other entities in which CSN holds an interest. · FTL - FERROVIA TRANSNORDESTINA LOGÍSTICA S.A. (“FTL”) FTL was created on the purpose of incorporating the spun-off portion of Transnordestina Logística S.A, the Company holds the concession to operate the railway cargo transportation, the public service is provided in northeastern Brazil, which includes the railway between the towns of Sao Luis to Mucuripe, Arrojado to Recife, Itabaiana to Cabedelo, Paula Cavalcante to Macau and Propriá to Jorge Lins ("Network I"). As of May 2018, the CSN subscribed shares by capitalization of advances for future capital increase amounting R$ 33,633, therefore its participation in the share capital of the company increased from 90.78% to 91.69%. As a result of the operations described above that caused a change in the shareholder’s participation, the Company recorded a loss in the amount of R$(104) recorded in shareholders' equity in other comprehensive income. · CSN MINERAÇÃO S.A. (“CSN Mineração”) Headquartered in Congonhas, Minas Gerais, it is primarily engaged in the production, purchase and sale of iron ore. CSN Mineração S.A. commercializes its products mainly in the overseas market. From November 30,2015, the CSN Mineração S.A. has centralized mining operations of CSN, including the establishments of the mine Casa de Pedra, the port TECAR and the participation of 18.63% in MRS. The participation of the CSN in this subsidiary is 87.52%. · MINÉRIOS NACIONAL S.A. (“Minérios Nacional”) Headquartered in Congonhas, Minas Gerais, Mineração Nacional is mainly engaged in the production and commercialization of iron ore. This subsidiary concentrates the mining rights assets related to the Fernandinho, Cayman and Casa de Pedra mines transferred to this subsidiary in the business combination process that took place in 2015. 9.d) Joint ventures and joint operations financial information The balances of the balance sheets and income statements of joint venture and joint operation are presented as follows and refer to 100% of the companies´ profit/loss: 12/31/2018 12/31/2017 Joint-Venture Joint-Operation Joint-Venture Joint-Operation Equity interest (%) MRS Logística CBSI Transnordestina Logística Itá Energética MRS Logística CBSI Transnordestina Logística Itá Energética 34.94% 50.00% 46.30% 48.75% 34.94% 50.00% 46.30% 48.75% Balance sheet Current assets Cash and cash equivalents 345,962 2,091 19,234 29,870 484,978 101 5,763 16,231 Advances to suppliers 17,750 73 1,734 937 14,911 37 22 Other current assets 736,768 41,284 108,851 16,718 685,311 28,475 49,494 16,447 Total current assets 1,100,480 43,448 129,819 47,525 1,185,200 28,613 55,257 32,700 Non-current assets Other non-current assets 804,570 2,111 222,630 25,840 693,434 974 238,004 27,459 Investments, PP&E and intangible assets 6,482,292 6,324 8,428,567 457,578 6,277,550 2,423 7,927,881 484,406 Total non-current assets 7,286,862 8,435 8,651,197 483,418 6,970,984 3,397 8,165,885 511,865 Total Assets 8,387,342 51,883 8,781,016 530,943 8,156,184 32,010 8,221,142 544,565 Current liabilities Borrowings and financing 422,793 4,350.0000 75,906 668,947 1,411 52,691 Other current liabilities 1,368,290 33,844 179,816 18,298 1,272,365 25,898 113,739 33,666 Total current liabilities 1,791,083 38,194 255,722 18,298 1,941,312 27,309 166,430 33,666 Non-current liabilities Borrowings and financing 2,111,518 1,262 5,754,073 2,084,422 5,457,768 Other non-current liabilities 640,535 539 218,839 15,113 575,170 434 3,471 Total non-current liabilities 2,752,053 1,801 5,972,912 15,113 2,659,592 5,458,202 3,471 Shareholders’ equity 3,844,206 11,888 2,552,382 497,532 3,555,280 4,701 2,596,510 507,428 Total liabilities and shareholders’ equity 8,387,342 51,883 8,781,016 530,943 8,156,184 32,010 8,221,142 544,565 01/01/2018 at 12/31/2018 01/01/2017 a 12/31/2017 Joint-Venture Joint-Operation Joint-Venture Joint-Operation Equity interest (%) MRS Logística CBSI Transnordestina Logística Itá Energética MRS Logística CBSI Transnordestina Logística Itá Energética 34.94% 50.00% 46.30% 48.75% 34.94% 50.00% 46.30% 48.75% Statements of Income Net revenue 3,726,448 166,080 166,358 3,492,805 135,399 168,194 Cost of sales and services (2,476,628) (142,254) (77,829) (2,307,108) (120,647) (76,810) Gross profit 1,249,820 23,826 88,529 1,185,697 14,752 91,384 Operating (expenses) income (313,606) (10,884) (18,020) (60,104) (283,151) (8,340) (32,245) (58,465) Financial income (expenses), net (151,839) (179) (26,103) (126) (187,295) (1,004) (13,938) 317 Income before income tax and social contribution 784,375 12,763 (44,123) 28,299 715,251 5,408 (46,183) 33,236 Current and deferred income tax and social contribution (262,760) (3,761) (9,452) (254,001) (1,838) (11,105) (Loss) profit for the year, net 521,615 9,002 (44,123) 18,847 461,250 3,570 (46,183) 22,131 · ITÁ ENERGÉTICA S.A. - (“ITASA”) ITASA is a corporation established in July 1996 that was engaged to operate under a concession, the Itá Hydropower Plant (“UHE Itá”), with 1,450 MW of installed power, located on the Uruguay River, on the Santa Catarina and Rio Grande do Sul state border. The UHE Itá concession is shared with ENGIE Brasil Energia S.A., with CSN holding 48.75%. · MRS LOGÍSTICA S.A. (“MRS”) With registered offices in the City of Rio de Janeiro-RJ, this subsidiary is engaged in public railroad transportation, on the basis of an onerous concession, on the domain routes of the Southeast Grid of the federal railroad network (Rede Ferroviária Federal S.A. – RFFSA), located in the Southeast (Rio de Janeiro, São Paulo and Belo Horizonte. The concession has a 30-year term as from December 1, 1996, extendable for an equal term by exclusive decision of the concession grantor. MRS may further engage in services involving transportation modes related to railroad transportation and participate in projects aimed at expanding the railroad service concessions granted. For performance of the services covered by the concession, MRS leased from RFFSA for the same concession period, the assets required for operation and maintenance of the freight railroad transportation activities. At the end of the concession, all the leased assets are to be transferred to the ownership of the railroad transportation operator designated at that time. The Company had a direct equity interest of 18.64% in the capital stock of MRS and an indirect equity interest of 18.63% through its subsidiary CSN Mineração S.A., consequently the total participation is 34.94%. · CONSÓRCIO DA USINA HIDRELÉTRICA DE IGARAPAVA The Igarapava Hydroelectric Power Plant is located on the Grande River, in the city of Conquista, MG, and has installed capacity of 210 MW. It consists of 5 bulb-type generating units. CSN holds a 17.92% investment in the consortium, whose specific purpose is the distribution of electric power, which is made according to the percentage equity interest of each company. The balance of property, plant and equipment less depreciation as of December 31, 2018 is R$23,596 (R$24,759 as of December 31, 2017) and the expense in 2018 amounted to R$5,827 (R$5,966 in 2017). · CBSI - COMPANHIA BRASILEIRA DE SERVIÇOS DE INFRAESTRUTURA (“CBSI”) CBSI is the result of a joint venture between CSN and CKTR Brasil Ltda. Based in the city of Araucária, PR, CBSI is primarily engaged in providing services to CSN and other third-party entities, and can operate activities related to the refurbishment and maintenance of industrial machinery and equipment, construction maintenance, industrial cleaning, logistic preparation of products, among other activities. CSN holds a 50% interest. · TRANSNORDESTINA LOGÍSTICA S.A. (“TLSA”) TLSA is primarily engaged in the public service operation and development of a railroad network in the Northeast of Brazil network, comprising the rail segments Missão Velha-Salgueiro, Salgueiro-Trindade, Trindade-Eliseu Martins, Salgueiro- Porto de Suape, and Missão Velha-Porto de Pecém sections (“Railway System II”). It is in pre-operational phase and will remain so until the completion of Rail Network II. The approved schedule, which considered the completion of the work by January 2017, is currently under discussion with the responsible bodies, according described in the item 28.c. The Management of TLSA understands that new deadlines for project completion will not have material adverse effects on the expected return on investment. During the year 2017, the others shareholders of TLSA subscribed 2,912,997 shares in amounting to R$153,253, diluting CSN on TLSA share capital to 46.30%. Therefore, due to the transactions described above and the participation change of the shareholders in the share capital of TLSA on 2017, the Company recognized a gain of R$2,814, recorded in equity in other comprehensive income. The Management receives funds from its shareholders and third parties for completion of the works, according described in the item 28.c, which are expected to be available, based on agreements previously entered into and recent discussions between the involved parties. After analyzing this matter, Management concluded as adequate the use of the accounting base of the project’s going concern in the preparation of the financial statements for the year ended December 31, 2018. TLSA performed an impairment test of its own long-live assets using the discount cash flow method and considered the main assumptions, as follows: Measurement of recoverable value: Cash Flow Projection Until 2057 Gross Margin Based on market studies to capture operations costs and loads, based on studies of market trends. Estimated Costs Costs based on studies and market trends. Growth rate in perpetuity Growth rate was not considered due to the projection model until the end of the concession. Discount rate Between 5.1% to 7.9% in real terms. In addition, CSN, as an investor, performed an impairment test of its stake in TLSA, through TLSA ability to distribute dividends, methodology known as Dividend Discount Model, or DDM, to remunerate the capital invested by shareholders. In order to perform this test, some aspects were taken into account, such as: · The flow of dividends was obtained from the TLSA nominal cash flow; · The flow of dividends was calculated considering the annual percentages of participation, considering the dilutions of the CSN’s stakes due to the amortization of debts; · This flow of dividends was discounts at present value using cost of equity (Ke) embedded in the WACC rate of TLSA; and · This Ke obtained was the one calculated in the “rolling WACC” of TLSA. Due to the sharing of investors risks, and by the fact that the asset that is being tested represents the cash-generating unit itself, which is equal to the legal entity, the risk determined by CSN Management is the same applied by TLSA when the evaluation of their own investments, not applying an additional risk fator to the model. As a result, it was not necessary to recognize an impairment in the surplus-value of the investments in the year ended on December 31, 2018. 9.e) Additional information on indirect participation in abroad operations · STAHLWERK THÜRINGEN GMBH (“SWT”) SWT was formed from the former industrial steel complex of Maxhütte, located in the Germany city of Unterwellenborn, which produces steel shapes used for construction in accordance with international quality standards. Its main raw material is steel scrap; the Company has an installed production capacity of 1.1 million metric tons’ steel/year. The SWT is a wholly owned indirect subsidiary of CSN Steel S.L.U, a subsidiary of CSN. · COMPANHIA SIDERURGICA NACIONAL – LLC (“CSN LLC”) Incorporated in 2001 with the assets and liabilities from the extinct Heartland Steel Inc., CSN LLC has an industrial plant in Terre Haute, Indiana State - USA, where the cold rolled and galvanized steel production lines are located, its installed production capacity is 800 thousand tons/year. CSN LLC is a wholly owned indirect subsidiary through CSN Steel S.L.U. after Merger, previously named CSN Americas S.L.U, a subsidiary of CSN. On June 5, 2018 CSN LLC had its corporate name changed to "Heartland Steel Processing, LLC". On the same date, a new company was incorporated under the name "Companhia Siderúrgica Nacional, LLC", a wholly owned subsidiary of Heartland Steel Processing, LLC. On June 28, 2018, Companhia Siderúrgica Nacional, LLC., became a wholly-owned subsidiary of CSN Steel and, on June 29, 2018, Heartland Steel Processing, LLC was sold to Steel Dynamics, Inc for the base transaction price of R$400million. The new "Companhia Siderúrgica Nacional, LLC" imports and comercializes steel products and maintains its activities in the United States. · LUSOSIDER AÇOS PLANOS S.A. (‘Lusosider’’) Incorporated in 1996 in succession to Siderurgia Nacional (a company privatized by the Portuguese government that year), Lusosider is the only Portuguese company of the steel industry to produce cold rolled and galvanized anti-corrosion steel. Based in Paio Pires, The Lusosider has an installed capacity of about 550,000 tons / year to produce four large groups of steel products: galvanized sheet, cold rolled sheet, pickled and oiled plate. The products are manufactured by Lusosider and may be used in the packaging industry, construction (pipes and metallic structures) and in home appliance components. 9.f) Other investments · PANATLÂNTICA S. A. (“Panatlântica”) Panatlântica is a publicly-held company, headquartered in the city of Gravataí, State of Rio Grande do Sul, engaged in the manufacturing, trade, import, export and processing of steel and ferrous or non-ferrous metals, coated or not. This investment is classified as fair value through profit or loss, recognizing changes in fair value in profit or loss. The Company currently holds 11.31% (11.33% as of December 31, 2017) of Panatlântica’s total share capital. · USINAS SIDERURGICAS DE MINAS GERAIS S.A. – USIMINAS (“USIMINAS”) Usiminas, headquartered in Belo Horizonte, State of Minas Gerais, is engaged in steel and related operations. Usiminas produces flat rolled steel in the Intendente Câmara and José Bonifácio de Andrada e Silva plants, located in Ipatinga, Minas Gerais, and Cubatão, São Paulo, respectively, the final product is sold in the domestic and foreign market. Usiminas also exploits iron ore mines located in Itaúna, Minas Gerais, to meet its verticalization and production cost optimization strategies. Usiminas also has service and distribution centers located in several regions of Brazil, and the Cubatão, São Paulo, and Praia Mole in Espírito Santo, all centers are located in strategic locations for the shipment of its production. On April 9, 2014, the Administrative Council for Economic Defense (CADE - Conselho Administrativo de Defesa Econômica) issued its decision on the matter about the Usiminas shares held by CSN signing a Performance Commitment Agreement), also called TCD, between CADE and CSN. Under the terms of the decision of CADE and TCD, CSN must reduce its interest in USIMINAS, within a specified period. The deadline and percentage reduction are confidential. In addition, the political rights in Usiminas will continue suspended until the Company reaches the limits established in the TCD. In February 2018, were sold 3,136,100 of preferred shares (USIM5) in the amount of R$ 39,377, by the exclusive fund “VR1 - Multi-Credit Private Investment Fund. As of December 31, 2018 and 2017, the Company’s interest in Usiminas’s capital was 15.19% in common shares and 20.29% (20.86% as of December 31,2017) in preferred shares. USIMINAS is listed on the São Paulo Stock Exchange (“B3 S.A.- Brasil, Bolsa, Balcão”: USIM3 and USIM5). • ARVEDI METALFER DO BRASIL S.A. (“Arvedi”) Arvedi, headquartered in Salto, State of São Paulo, is engaged in pipe production. As of December 31, 2018 and 2017 CSN held 20.00% of Arvedi’s share capital. |
10. PROPERTY, PLANT AND EQUIPME
10. PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | Consolidated Land Buildings and Infrastructure Machinery, equipment and facilities Furniture and fixtures Construction Other (*) Total Balance at December 31, 2017 279,740 2,796,947 11,985,920 33,103 2,475,935 393,194 17,964,839 Cost 279,740 3,819,929 21,674,362 164,152 2,475,935 669,096 29,083,214 Accumulated depreciation (1,022,982) (9,688,442) (131,049) (275,902) (11,118,375) Balance at December 31, 2017 279,740 2,796,947 11,985,920 33,103 2,475,935 393,194 17,964,839 Translation adjustment 7,730 11,653 86,553 543 4,275 4,605 115,359 Acquisitions 622 1,259 144,499 1,574 1,158,788 21,152 1,327,894 Capitalized interest (notes 25 and 30) 71,611 71,611 Write-off and estimated losses, net of reversal (note 24) (9,768) (21,468) (6) (4,348) (2,655) (38,245) Depreciation (note 23) (134,534) (1,043,188) (5,394) (22,456) (1,205,572) Transfers to other asset categories 30,031 685,005 891 (424,443) (291,484) Write-off - sale of subsidiary LLC (238) (16,950) (145,958) (181) (6,070) (21,829) (191,226) Transfers to intangible assets 5,559 (1,752) 3,807 Others (9,651) 8,440 (392) (1,603) Balance as of December 31, 2018 287,854 2,678,638 11,687,271 30,530 3,282,436 80,135 18,046,864 Cost 287,854 3,751,429 22,426,782 165,331 3,282,436 355,768 30,269,600 Accumulated depreciation (1,072,791) (10,739,511) (134,801) (275,633) (12,222,736) Balance as of December 31, 2018 287,854 2,678,638 11,687,271 30,530 3,282,436 80,135 18,046,864 (*) Refer basically to railway assets such as courtyards, tracks and leasehold improvements, vehicles, hardware, mines, ore deposits, and spare part inventories. The breakdown of the projects comprising construction in progress is as follows: Consolidated Project description Start date Completion date 12/31/2018 12/31/2017 Logistics Current investments for maintenance of current operations. 89,595 106,956 89,595 106,956 Mining Expansion of Casa de Pedra Mine capacity production. 2007 2020 (1) 844,194 750,999 Expansion of TECAR export capacity. 2009 2022 (2) 289,298 275,811 Current investments for maintenance of current operations. 725,616 408,522 1,859,108 1,435,332 Steel Supply of 16 torpedo’s cars for operation in the steel industry 2008 2020 94,920 99,483 Current investments for maintenance of current operations. (3) 558,922 228,029 653,842 327,512 Cement Construction of cement plants. 2011 2023 (4) 585,163 554,865 Current investments for maintenance of current operations. 94,728 51,270 679,891 606,135 Construction in progress 3,282,436 2,475,935 (1) Estimated completion date of the Central Plant Step 1; (2) Estimated completion date of phase 60 Mtpa; (3) Refers substantially to the technological modernization of the UPV's continuous running machines; (4) Refers substantially to the acquisition of new Integrated Cement Plants The average estimated useful lives are as follows, in years: Consolidated 12/31/2018 12/31/2017 Buildings 38 39 Machinery, equipment and facilities 22 21 Furniture and fixtures 11 12 Others 15 17 10.a) Capitalized Interest As of December 31, 2018, the Company capitalized borrowing costs amounting to R$71,611 in consolidated (as of December 31, 2017, R$91,957 in consolidated). These costs are basically estimated for the mining projects, mainly relating to the expansion of Casa de Pedra (MG) and TECAR (RJ), see notes 25 and 30. The rates used to capitalize borrowing costs are as follows: Rates 12/31/2018 12/31/2017 Unspecified projects 6.31% 8.63% |
11. INTANGIBLE ASSETS
11. INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets | |
INTANGIBLE ASSETS | Consolidated Goodwill Customer relationships Software Trademarks Rights and licenses (*) Others Total Balance at December 31, 2017 3,590,931 300,875 73,185 134,137 3,172,469 449 7,272,046 Cost 3,834,234 513,068 167,162 134,137 3,185,701 449 7,834,751 Accumulated amortization (133,973) (212,193) (93,977) (13,232) (453,375) Adjustment for accumulated recoverable value (109,330) (109,330) Balance at December 31, 2017 3,590,931 300,875 73,185 134,137 3,172,469 449 7,272,046 Translation adjustment 34,107 148 15,872 58 50,185 Acquisitions and expenditures 1,216 984 2,200 Transfer of property, plant and equipment (3,807) (3,807) Amortization (note 23) (46,209) (15,770) (5,470) (67,449) Balance as of December 31, 2018 3,590,931 288,773 54,972 150,009 3,166,999 1,491 7,253,175 Cost 3,831,338 573,614 161,067 150,009 3,185,701 1,491 7,903,220 Accumulated amortization (131,077) (284,841) (106,095) (18,702) (540,715) Adjustment for accumulated recoverable value (109,330) (109,330) Balance as of December 31, 2018 3,590,931 288,773 54,972 150,009 3,166,999 1,491 7,253,175 (*) Composed mainly by mineral rights with estimated resources of 1,101 million tons (Unaudited by independent auditors). Corresponding amortization is recorded based on production volumes. The average useful lives by nature are as follows, in years: Consolidated 12/31/2018 12/31/2017 Software 7 8 Customer relationships 13 13 11.a) Impairment testing The goodwill arising from expectations for future profitability of the companies acquired and the intangible assets with indefinite useful lives (trademarks) have been allocated to the operational divisions (cash-generating units) of CSN, which represent the lowest level of assets or group of assets. According to IAS36, when a CGU has an intangible asset with indefinite useful life allocated, the Company performs an impairment test. The CGU with intangible assets in this situation are as follows: Consolidated Goodwill Trademarks Total Cash generating unity Segment 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Packaging (1) Steel 158,748 158,748 158,748 158,748 Long Stel (2) Steel 235,595 235,595 150,009 134,137 385,604 369,732 Minning (3) Mining 3,196,588 3,196,588 3,196,588 3,196,588 3,590,931 3,590,931 150,009 134,137 3,740,940 3,725,068 (1) The goodwill of the Packaging cash-generating unit is shown net of impairment loss in the amount of R$109,330, recognized in 2011. (2) The goodwill and trademark that are recorded in line item intangible assets at long steel segment, those transactions are derived from the business combination of Stahlwerk Thuringen GmbH ("SWT") and Gallardo Sections CSN. The assets mentioned are considered to have indefinite useful lives as they are expected to contribute indefinitely to the Company's cash flows. (3) Refers to the goodwill based on expectations for future profitability, resulting from the acquisition of Namisa by CSN Mineração. The impairment testing of the goodwill and the trademark include the balance of property, plant and equipment of the cash-generating units and also the intangible. The test is based on the comparison between the actual balances and the value in use of those units, determining based on the projections of discounted cash flows and use of such assumptions and judgements as: growth rate, costs and expenses, discount rate, working capital, future Capex investment and macroeconomic assumptions observable in the market. The main assumptions used in calculations of value in use at December 31, 2018 are as follows: Metal packaging Flat steel (*) Logistic (**) Mining Measurement of recoverable value Discounted Cash Flow Discounted Cash Flow Discounted Cash Flow Discounted Cash Flow Cash flow projection Until 2028 + perpetuity Until 2028 + perpetuity Until 2027 Until 2054 Gross Margin Gross margin updated based on historical data, impacts of business restructuring and market trends Gross margin updated based on historical data and market trends. Estimated based on market studies for cargo captures and operational costs according market trends. Reflects projection of costs due to the progress of the mining plan as well as startup and ramp up of projects . Price and exchange rate projected according industry reports. Cost atualization Cost based on historical data of each product and impacts of business restructuring Updated costs based on historical data and market trends Costs based on historical data and market trends Updated costs based on historical data, progress of mining plan as well as startup and ramp up of projects Growth Rate Growth of 1.5% p.a in real terms updated by long term inflation of 4.0% p.a. Growth of 1.4% p.a in real terms updated by long term inflation of 2.5% p.a. of the Euro zone Growth of 1.5% p.a in real terms Without growth in real terms updated only by long term inflation of 4.0% p.a. Discount rate For Metal packaging, flat steel and mining, these cash flows were considered using a discount rate after taxes between 5% and 13% p.a. in (*) Refer to assets of subsidiary Lusosider, located in Portugal. The discount rate was applied on the discounted cash flow prepared in Euros, the functional currency of this subsidiary. (**) Refer to assets of subsidiary FTL – Ferrovia Transnordestina Logística S.A. For the subsidiary SWT, the measurement of recoverable value was based on fair value and classified as Level 3, based on unobservable inputs that reflect the assumptions that market participants would use for pricing, including risk assumptions and discount rate. Based on the analyses conducted by Management, it was not necessary to record losses by impairment to those assets for the year ended on December 31, 2018. |
12. BORROWINGS, FINANCING AND D
12. BORROWINGS, FINANCING AND DEBENTURES | 12 Months Ended |
Dec. 31, 2018 | |
Borrowings Financing And Debentures | |
BORROWINGS, FINANCING AND DEBENTURES | The balances of borrowings, financing and debentures, which are carried at amortized cost, are as follows: Consolidated Current liabilities Non-current liabilities 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Debt agreements in the international market Variable interest in: US$ Prepayment (1) 1,016,737 791,163 3,830,240 4,097,509 Fixed interest in: US$ Bonds, Perpetual Bonds and ACC (2) 2,490,178 523,509 8,613,491 8,920,342 Intercompany EUR Others 181,056 251,630 106,535 197,131 3,687,971 1,566,302 12,550,266 13,214,982 Debt agreements in Brazil Securities with variable interest in: R$ BNDES/FINAME, Debentures , NCE CCB (3) 1,890,450 4,982,159 10,710,678 9,702,972 Securities with fixed interest in: R$ Prepayment 103,376 3,303 100,000 1,993,826 4,985,462 10,710,678 9,802,972 Total Borrowings and Financing 5,681,797 6,551,764 23,260,944 23,017,954 Transaction Costs and Issue Premiums (28,358) (24,862) (87,309) (34,012) Total Borrowings and Financing + Transaction Costs 5,653,439 6,526,902 23,173,635 22,983,942 (2) In February 2018, the Company issued debt securities in the foreign market ("Notes"), through its subsidiary CSN Resources SA, in the amount of US$ 350 million, maturing in 2023 and interest of 7.625% per annum. In parallel, a tender offer ("Tender Offer") of the Notes was issued by CSN Islands XI Corp. and CSN Resources S.A., subsidiaries of the Company, having repurchased US$ 350 million with expected maturity for 2019 and 2020. The Notes are unconditionally and irrevocably guaranteed by the Company. (3) In February 2018, the Company concluded the renegotiation of its debt of R$4.9 billion with Banco do Brasil SA ("BB"), related to its own issues of Export Credit Notes plus the issues made by its subsidiary CSN Mineração, moving the maturities from 2018 to 2022 to maturity until December 2024, with a guarantee of part of the shares of Usiminas, owned by the Company. In August 2018, the Company concluded the negotiations to reprofile its debts of R$ 6.8 billion with Caixa Econômica Federal, referring to the Bank Credit Note, rescheduling the maturities throughout 2018 to 2023 to maturity up to 2024, with guarantee of shares of Usiminas shares owned by the Company. The following table shows the average interest rate: Consolidated 12/31/2018 Average interest rate (*) Total debt US$ 5.88% 15,950,646 R$ 8.19% 12,704,504 EUR 3.88% 287,591 28,942,741 (*) In order to determine the average interest rates for debt contracts with floating rates, the Company used the rates applied as of December 31, 2018. 12.a) Maturities of borrowings, financing and debentures presented in non-current liabilities As of December 31, 2018, the breakdown of principal plus interest of long-term liabilities as borrowings, financing and debentures by maturity date is presented as follows: Consolidated 12/31/2018 Principal Bank loans Capital markets Development agencies Total 2020 3,187,269 3,499,177 66,892 6,753,338 2021 3,263,810 116,003 59,455 3,439,268 2022 3,087,732 36,667 58,154 3,182,553 2023 2,669,211 1,356,180 56,985 4,082,376 2024 1,276,001 67,734 1,343,735 After 2024 584,874 584,874 Perpetual bonds 3,874,800 3,874,800 13,484,023 8,882,827 894,094 23,260,944 12.b) Amortization and borrowings raised, financing and debentures The table below presents the funding raised and amortizations during the year: Consolidated 12/31/2018 12/31/2017 Opening balance 29,510,844 30,441,018 Funding raised 2,154,471 538,771 Principal repayments (5,019,978) (1,528,023) Payments of charges (2,141,710) (2,634,931) Provision of charges 2,009,688 2,438,555 Write-off – sale of subsidiary LLC (10,544) Others (1) 2,324,303 255,454 Closing balance 28,827,074 29,510,844 (1) Includes unrealized monetary and foreign exchange variations. In 2018, the Group obtained and amortized loans as shown below: · Funding raised and amortizations: Consolidated 12/31/2018 Nature Raised Amortization of principal Amortization of charges Prepayment 849,654 280,923 Bonds, Perpetual bonds and ACC 1,749,099 1,632,464 675,370 BNDES/FINAME, Debentures, NCE and CCB 10,792 1,948,014 1,173,380 Others 394,580 589,846 12,037 2,154,471 5,019,978 2,141,710 · Covenants The Company's loan agreements establish the fulfillment of certain non-financial obligations, as well as maintenance of certain parameters and performance indicators, such as disclosure of its audited financial statements according to regulatory deadlines or payment of commission on risk assumption, if the net debt-EBITDA ratio reaches the levels in those agreements, under penalty of anticipated maturity. The Company is in compliance with the financial and non-financial obligations (covenants) of its current contracts, not considered any non-compliances already remedied or that have not generated the acceleration of debts or any type of accounting provision. On December 31, 2018, the Company has provisioned R$ 38,134 in the Consolidated (R$ 30,843 as of December 31, 2017) for risk assumption. 12.c) GUARANTEES The Company is liable for guarantees of its subsidiaries and joint ventures as follows: Currency Maturities Borrowings Tax foreclosure Others Total 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Transnordestina Logísitca R$ Until 09/19/2056 and Indefinite 2,108,917 2,541,347 35,336 22,214 8,231 3,866 2,152,484 2,567,427 FTL - Ferrovia Transnordestina R$ 11/15/2020 62,407 69,405 62,407 69,405 Sepetiba Tecon 36,308 36,308 Cia Metalurgica Prada R$ Indefinite 333 333 11,942 18,540 12,275 18,873 CSN Energia R$ Until 11/26/2023 and Indefinite 2,829 2,829 1,920 4,749 2,829 CSN Mineração R$ Until 12/26/2024 1,407,363 2,000,000 1,407,363 2,000,000 Estanho de Rondônia R$ 07/15/2022 3,153 3,153 3,153 3,153 Minérios Nacional S.A. R$ Until 09/10/2021 7,305 7,305 - Total in R$ 3,589,145 4,613,905 38,498 25,376 22,093 58,714 3,649,736 4,697,995 CSN Islands XI US$ 09/21/2019 547,094 750,000 547,094 750,000 CSN Islands XII US$ Perpetual 1,000,000 1,000,000 1,000,000 1,000,000 CSN Resources US$ Until 02/13/2023 1,402,906 1,200,000 1,402,906 1,200,000 Total in US$ 2,950,000 2,950,000 2,950,000 2,950,000 CSN Steel S.L. EUR 1/31/2020 48,000 120,000 48,000 120,000 Lusosider Aços Planos EUR Indefinite 75,000 25,000 75,000 25,000 Total in EUR 123,000 145,000 123,000 145,000 Total in R$ 11,976,657 10,334,149 11,976,657 10,334,149 15,565,802 14,948,054 38,498 25,376 22,093 58,714 15,626,393 15,032,144 |
13. FINANCIAL INSTRUMENTS
13. FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments | |
FINANCIAL INSTRUMENTS | I - Identification and measurement of financial instruments The Company enters into transactions involving various financial instruments, mainly cash and cash equivalents, including short-term investments, marketable securities, trade receivables, trade payables, and borrowings and financing. The Company also enters into derivative transactions, especially interest rate and foreign exchange rate swaps. Considering the nature of these instruments, their fair value is basically determined by using Brazil’s money market and mercantile and futures exchange quotations. The amounts recognized in current assets and current liabilities have immediate liquidity or short-term maturity, mostly less than three months. Considering the maturities and characteristics of such instruments, their carrying amounts approximate their fair values. · Classification of financial instruments With the implementation of pronouncements IFRS 9, the classification of financial instruments: held to maturity, loans and receivables and available for sale were replaced by three categories of classification and measurement of financial instruments: amortized cost, fair value through other comprehensive income (VJORA) and fair value through profit or loss (VJR). Consolidated Disclosed on 12/31/2017 Applied on 01/01/2018 Balance at 12/31/2017 Assets Current Cash and cash equivalents Loans and Receivables Amortized cost 3,411,572 Short term investments Loans and Receivables Amortized cost 735,712 Accounts Receivable Net Loans and Receivables Amortized cost 2,197,078 Loans with related parties Loans and Receivables Amortized cost 2,441 Derivative financial instruments VJR VJR Trading securities VJR VJR 2,952 Dividends receivable Amortized cost Amortized cost 41,528 Non-current Loans with related parties Loans and Receivables Amortized cost 554,694 Other trade receivables Loans and Receivables Amortized cost 20,024 Investments Available for sale VJR 2,222,479 Liabilities Current Borrowings and financing Amortized cost Amortized cost 6,551,764 Derivative financial instruments VJR VJR Trade payables Amortized cost Amortized cost 2,460,774 Dividends and interest on capital Amortized cost Amortized cost 510,692 Non-current Borrowings and financing Amortized cost Amortized cost 23,017,953 Consolidated 12/31/2018 12/31/2017 Notes Fair value through profit or loss Measured at amortized cost Balances Fair value through profit or loss Measured at amortized cost Balances Assets Current Cash and cash equivalents 4 2,248,004 2,248,004 3,411,572 3,411,572 Financial investments 5 895,713 895,713 735,712 735,712 Trade receivables 6 2,078,182 2,078,182 2,197,078 2,197,078 Dividends receivable 8 46,171 46,171 41,528 41,528 Derivative financial instruments 8 351 351 Trading securities 8 4,503 4,503 2,952 2,952 Loans - related parties 8 2,675 2,675 2,441 2,441 Total 4,854 5,270,745 5,275,599 2,952 6,388,331 6,391,283 Non-current Financial investments 5 7,772 7,772 Other trade receivables 8 820,879 820,879 804,765 804,765 Investments 9 2,279,189 2,279,189 2,222,433 2,222,433 Loans - related parties 8 706,605 706,605 554,694 554,694 Total 2,279,189 1,535,256 3,814,445 2,222,433 1,359,459 3,581,892 Total Assets 2,284,043 6,806,001 9,090,044 2,225,385 7,747,790 9,973,175 Liabilities Current Borrowings and financing 12 5,681,797 5,681,797 6,551,764 6,551,764 Trade payables 3,473,822 3,473,822 2,505,695 2,505,695 Dividends and interest on capital 14 932,005 932,005 510,692 510,692 Total 10,087,624 10,087,624 9,568,151 9,568,151 Non-current Borrowings and financing 12 23,260,945 23,260,945 23,017,953 23,017,953 Total 23,260,945 23,260,945 23,017,953 23,017,953 Total Liabilities 33,348,569 33,348,569 32,586,104 32,586,104 · Fair value measurement The following table shows the financial instruments recognized at fair value through profit or loss using a valuation method: Consolidated 12/31/2018 12/31/2017 Level 1 Level 2 Balance Level 1 Balance Assets Current Financial assets at fair value through profit or loss Derivative financial instruments 351 351 Trading securities 4,503 4,503 2,952 2,952 Non-current Available-for-sale financial assets Investments 2,279,189 2,279,189 2,222,433 2,222,433 Total Assets 2,283,692 351 2,284,043 2,225,385 2,225,385 Level 1 - quoted prices in active markets for identical assets or liabilities. Level 2 - Includes observable inputs in market such as interest rates, exchange etc., but not prices traded in active markets. There are no assets and liabilities classified as level 3. II – Investments in financial instruments measured at fair value through profit or loss. During the application of IAS 39 until December 2017, the Company has investments in equity instruments, measured at fair value through other comprehensive income, because the nature of the investment is not included in any other categories of financial instruments (loans and receivables, held-to-maturity investments or financial assets at fair value through profit or loss). Gains and losses arising from the variation of the share price were recorded directly in shareholders' equity under the account "Other comprehensive income" and for each significant decrease in market value an impairment loss was recognized in the statement of income. With the implementation of the pronouncement IFRS 9 as from January 1, 2018, the equity instruments classified as held-to-maturity should be classified as fair value through profit or loss (VJR). In this way, the Company reclassified the investments in common (USIM3) and preferred (USIM5) shares of Usiminas (“Usiminas Shares”), from fair value through other comprehensive income (VJORA) to fair value through profit or loss. In relation to Panatlântica shares (PATI3), currently classified as (VJORA), the Company based on its current business model, whose objective is to maintain this financial asset to obtain contractual cash flows, but adopts the option to reclassify it to VJR, recognizing changes in fair value in profit or loss. Accordingly, the credit balance accumulated in December 2017 in other comprehensive income of R$1,559,682 was reclassified to the statement of income from the effective date of the new standard. With the new classification, changes in fair value are recorded in the statement of income, whose movement occurred until December 31, 2018 generated a gain of R$ 96,133 and a cumulated gain of R$ 1,655,813 (See opening below and note 24). Class of shares 12/31/2018 Sale of shares 12/31/2017 12/31/2018 Quantity Share price Closing Balance Quantity Share price Cash Received Quantity Share price Closing Balance Fair Value Adjustment Recognized in profit or loss Reclassification of Comprehensive Income for the year (note 31) USIM3 107,156,651 11.44 1,225,872 107,156,651 10.83 1,160,506 65,366 694,685 USIM5 111,144,456 9.22 1,024,752 3,136,100 12.56 39,377 114,280,556 9.10 1,039,953 24,176 865,264 PATI3 1,997,642 14.30 28,565 1,997,642 11.00 21,974 6,591 (269) 220,298,749 2,279,189 3,136,100 39,377 223,434,849 2,222,433 96,133 1,559,680 1,655,813 As of December 31, 2018 and 2017, the Company’s interest in Usiminas’s capital was 15.19% in common shares and 20.29% (20.86% as of December 31, 2017) in preferred shares. In February 2018, 3,136,100 preferred shares (USIM5) were sold, totaling R$39,377 through the exclusive fund "VR1 - Multimarket Private Investment Fund". · Share market price risks The Company is exposed to the risk of changes in the price of the shares due to the investments, valued at fair value through profit or loss and other comprehensive income that have their prices based on the market price on the stock exchange (B3). III - Financial risk management The Company follows strategies of managing its risks, with guidelines regarding the risks incurred by the company. The nature and general position of financial risks are regularly monitored and managed in order to assess the results and the financial impact on cash flow. The quality of counterparties’ hedging instruments and the credit limit are also periodically reviewed. The market risks are hedged when it is considered necessary to support the corporate strategy or when it is necessary to maintain a level of financial flexibility. Under the terms of the risk management policy, the Company can manage some risks by using derivative instruments not associate to any speculative deals or short sales. 13.a) Foreign exchange and interest rate risks · Exchange rate risk The exchange rate risk arises from the existence of assets and liabilities denominated in US dollars or Euros since the Company's functional currency is substantially the R eal that The consolidated net exposure as of December 31, 2018 is as follows: 12/31/2018 Foreign Exchange Exposure (Amounts in US$’000) (Amounts in €’000) Cash and cash equivalents overseas 376,581 3,387 Trade receivables 358,283 1,124 Other assets 8,623 4,594 Total Assets 743,487 9,105 Borrowings and financing (4,116,508) (48,791) Trade payables (175,404) (7,946) Other liabilities (3,529) (920) Total Liabilities (4,295,441) (57,657) Foreign exchange exposure (3,551,954) (48,552) Cash flow hedge accounting 2,076,045 Net Investment hedge accounting 48,000 Net foreign exchange exposure (1,475,909) (552) Perpetual bonds 1,000,000 Net foreign exchange exposure excluding perpetual bonds (475,909) (552) CSN uses as strategy the hedge accounting, as well as derivative instruments with the purpose of hedging CSN's future cash flows. · Interest rate risk Risk arises from short and long term liabilities with fixed or post fixed interest rates and inflation rates. Item 13.b) shows the derivatives and hedging strategies to protect exchange and interest rates risks. 13.b) Hedging instruments: Derivative and cash flows hedge accounting and foreign investment hedge accounting CSN uses instruments for protection of foreign currency risk and interest rate risk, as shown in the following topics: · Portfolio of derivative financial instruments Dollar x Euro swap The subsidiary Lusosider has derivative transactions to protect its dollar exposure versus euro. Consolidated 12/31/2018 Appreciation (R$) Fair value (market) Impact on financial income (expenses) in 2018 Counterparties Maturity Functional Currency Notional amount Asset position Liability position Amounts receivable / (payable) BCP 03/08/2019 Dollar 18,563 71,967 (71,616) 351 (1) Total dollar-to-euro swap 18,563 71,967 (71,616) 351 (1) 71,967 (71,616) 351 (1) · Classification of the derivatives in the balance sheet and statement of income 12/31/2018 12/31/2017 Instruments Assets Financial income (expenses) (Note 25) Current Total Dollar - to - euro swap 351 351 (1) (229) Future DI - 28,503 351 351 (1) 28,274 · Cash flow hedge accounting Beginning November 1, 2014, the Company formally designated cash flow hedging relationships to protect highly probable future cash flows against US dollar fluctuations. In order to better reflect the accounting impacts of this foreign exchange hedging strategy on its profit, CSN designated part of its US dollar-denominated liabilities as a hedging instrument of its future exports. As a result, foreign exchange differences arising on translating the designated liabilities will be temporarily recognized in shareholders’ equity and allocated to profit or loss when such exports are carried out, which will allow recognizing the US dollar impact on liabilities and exports concurrently. Note that adopting hedge accounting does not entail contracting any financial instrument. As of December 31, 2018 the Company designated for hedge accounting US$2,076,045 in exports to be carried out between January, 2019 to February, 2023. To support these designated amounts, the Company prepared formal documentation indicating how hedging is aligned with the goal and strategy of CSN’s Risk Management by identifying the hedging instruments used, the hedging purpose, the nature of the hedged risk, and showing the expected high effectiveness of the designated relationships. The designated debt instruments total an amount equivalent to the portion of future exports. Thus, the exchange differences on translating the instrument and the hedged item are similar. According to the Company’s accounting policy, continuous assessments of the prospective and retrospective effectiveness must be carried out by comparing the designated amounts with the expected amounts, approved in Management’s budgets, and the actual export amounts. Through hedge accounting, the exchange gains and losses of the debt instruments do not immediately affect the Company’s profit or loss except to the extent that exports are carried out. The table below shows a summary of the hedging relationships as of December 31, 2018: 12/31/2018 Designation Date Hedging Instrument Hedged item Type of hedged risk Hedged period Exchange rate on designation Designated amounts (US$’000) Amortizated part (USD'000) Effect on Result (*) (R$'000) Impact on Shareholders' equity (R$'000) 11/03/2014 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2016 - September 2019 2.4442 500,000 (250,003) 171,983 (357,649) 12/01/2014 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2015 - February 2019 2.5601 175,000 (154,999) 36,766 (26,295) 12/18/2014 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate May 2020 2.6781 100,000 (119,670) 07/21/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2019 - March 2021 3.1813 60,000 (41,610) 07/23/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2019 - March 2021 3.2850 100,000 (58,980) 07/23/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - October 2022 3.285 30,000 (6,000) 5,102 (14,155) 07/24/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - October 2022 3.3254 100,000 (20,000) 16,198 (43,952) 07/27/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - October 2022 3.3557 25,000 (5,000) 3,898 (10,382) 07/27/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - October 2022 3.3557 70,000 (14,000) 10,914 (29,070) 07/27/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - October 2022 3.3557 30,000 (6,000) 4,677 (12,458) 07/28/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - October 2022 3.3815 30,000 (6,000) 4,523 (11,839) 3/8/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - October 2022 3.3940 355,000 (11,998) 6,179 (164,915) 04/02/2018 Bonds Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2018 - February 2023 3.3104 1,170,045 (195,000) 109,951 (550,320) Total 2,745,045 (669,000) 370,191 (1,441,295) (*) The effect on the result was recorded in other operating expenses. In the hedging relationships described above, the amounts of the debt instruments were fully designated for equivalent iron ore export portions. The movements in the hedge accounting amounts recognized in shareholders’ equity as of December 31, 2018 are as follows: 12/31/2017 Movement Realization 12/31/2018 Cash flow hedge accounting 395,524 1,415,962 (370,191) 1,441,295 Fair value of cash flow hedge, net of taxes 395,524 1,415,962 (370,191) 1,441,295 As of December 31, 2018, the hedging relationships established by the Company were effective, according to the prospective tests conducted. Thus, no reversal for hedge accounting ineffectiveness was recognized. · Net investment hedge in foreign subsidiaries CSN has a natural foreign exchange exposure in Euros substantially arising from a loan made by a foreign subsidiary with functional currency in Reais, for the acquisition of investments abroad whose functional currency is Euro. Such exposure arises from converting the balance sheets of these subsidiaries for consolidation in CSN, and the exchange rate of the loans affected the income statement in the financial result item and the exchange variation of the net assets of the foreign operation directly affected the equity in other comprehensive income. As from September 1 st 12/31/2018 Designation Date Hedging Instrument Hedged item Type of hedged risk Exchange rate on designation Designated amounts (EUR'000) Amortized part (USD’000) Impact on shareholders' equity 09/01/2015 Non-derivative financial liabilities in EUR – Debt contract Investments in subsidiaries which EUR is the functional currency Foreign exchange - R$ vs. EUR spot rate 4.0825 120,000 (72,000) 3,941 Total 120,000 (72,000) 3,941 The changes in the amounts related to net investment hedge recognized in shareholders’ equity as of December 31, 2018 are presented below: 12/31/2017 Movement 12/31/2018 Net Investment hedge accounting (17,911) 21,852 3,941 Fair value of net investment hedge in foreign operations (17,911) 21,852 3,941 On December 31, 2018 hedge relationships established by the Company found to be effective, according to prospective tests. Therefore, no reversal by ineffectiveness of the hedge was recorded. 13.c) Sensitivity analysis We present below the sensitivity analysis for currency risk and interest rate. · Sensitivity analysis of Derivative Financial Instruments and consolidated Foreign Exchange Exposure The Company considered scenarios 1 and 2 as 25% and 50% of deterioration for volatility of the currency, using as reference the closing exchange rate as of December 31, 2018. The currencies used in the sensitivity analysis and its scenarios are shown below: 12/31/2018 Currency Exchange rate Probable scenario Scenario 1 Scenario 2 USD 3,8748 3,7626 4,8435 5,8122 EUR 4,4390 4,2833 5,5488 6,6585 USD x EUR 1,1456 1,1346 1,4320 1,7184 12/31/2018 Interest Interest rate Scenario 1 Scenario 2 CDI 6,40% 8,00% 9,60% TJLP 6,98% 8,73% 10,47% Libor 2,88% 3,60% 4,32% The effects on income statement, considering scenarios 1 and 2 are shown below: 12/31/2018 Instruments Notional Risk Probable scenario (*) Scenario 1 Scenario 2 Hedge accounting of exports 2,076,045 Dollar (232,932) 2,011,065 4,022,130 Natural currency position (3,551,954) Dollar 398,529 (3,440,778) (6,881,556) (not including exchange derivatives above) Consolidated exchange position (1,475,909) Dollar 165,597 (1,429,713) (2,859,426) (including exchange derivatives above) Net Investment hedge accounting 48,000 Euro (7,474) 53,268 106,536 Natural currency position (48,552) Euro 7,560 (53,881) (107,762) Consolidated exchange position (552) Euro 86 (613) (1,226) (including exchange derivatives above) Dollar-to-euro swap 18,563 Dollar (1,011) 14,072 23,663 (*) The probable sceneries were calculated considering the following variations to the specified risks: Real x Dollar – appreciation of Real in 2.89% / Real x Euro – appreciation of Real in 3.51%. Euro x Dollar – appreciation of Euro in 0.96%. Source: Quotation from Central Bank of Brazil and Central Bank of Europe on 01/25/2019. · Sensitivity analysis of changes in interest rates The Company considered the scenarios 1, and 2 as 25% and 50% of evolution for volatility of the interest as of December 31, 2018. Consolidated Impact on profit or loss Changes in interest rates % p.a Assets Liabilities Probable scenario (*) Scenario 1 Scenario 2 TJLP 6,98 (954,635) (2,793) (16,658) (33,316) Libor 2.88 (4,799,586) (47,391) (34,505) (69,010) CDI 6.40 609,480 (11,667,006) (53,528) (176,924) (353,848) (*) The sensitivity analysis is based on the assumption of maintaining as probable scenario the market rates at December 31, 2018 recorded in the Company´s assets and liabilities. 13.d) Liquidity risk It is the risk that the Company may not have sufficient net funds to honor its financial commitments as a result of mismatching of terms or volumes between scheduled receipts and payments. To manage cash liquidity in domestic and foreign currency, assumptions of future disbursements and receipts are established and daily monitored by the treasury area. The payment schedules for the long-term portions of borrowings, financing and debentures are shown in note 12. The following table shows the contractual maturities of financial liabilities, including accrued interest. Consolidated At December 31, 2018 Less than one year From one to two years From two to five years Over five years Total Borrowings, financing and debentures 5,681,797 10,192,606 8,608,664 4,459,675 28,942,742 Trade payables 3,473,822 3,473,822 Dividends and interest on capital 932,005 932,005 IV - Fair values of assets and liabilities as compared to their carrying amounts Financial assets and liabilities at fair value through profit or loss are recognized in current and non-current assets and liabilities, and any gains and losses are recognized as financial income or financial expenses, respectively. The amounts are recognized in the financial statements at their carrying amounts, which are substantially similar to those that would be obtained if they were traded in the market. The fair values of other long-term assets and liabilities do not differ significantly from their carrying amounts, except the amounts below. The estimated fair values for certain consolidated long-term borrowings and financing were calculated at prevailing market rates, taking into consideration the nature, terms and risks similar to those of the recorded contracts, as below: 12/31/2018 12/31/2017 Carrying amount Fair value Carrying amount Fair value Perpetual bonds 3,880,074 2,850,615 3,312,503 2,602,090 Fixed Rate Notes 6,745,132 7,595,765 5,751,526 6,207,946 (*) Source: Bloomberg · Credit risks The exposure to credit risks of financial institutions complies with the parameters established by financial policy. The Company has as practice the detailed analysis of the patrimonial and financial situation of its clients, suppliers, the establishment of a credit limit and permanent monitoring of its debit balance. With regard to financial investments, the Company only made investments in institutions with low credit risk rated by rating agencies. Since part of the funds is invested in repurchase agreements that are backed by Brazilian Government Bonds, there is also exposure to the credit risk of the brazilian State. Regarding the exposure to credit risk in accounts receivable and other receivables, the company has a credit risk committee, in which each new customer is analyzed individually regarding their financial condition, prior to the granting of the credit limit and payment terms and periodically revised, according to the periodicity procedures of each business area. · Capital Management The Company seeks to optimize its capital structure in order to reduce its financial expenses and maximize the return to its shareholders. The table below shows the evolution of the capital structure of the Company with financing by equity and third-party capital. Thousands of reais 12/31/2018 12/31/2017 Shareholder's equity (equity) 10,013,440 8,288,229 Borrowings and Financing (Third-party capital) 28,827,074 29,510,844 Gross Debit/Shareholder's equity 2.88 3.56 |
14. OTHER PAYABLES
14. OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2018 | |
Other Payables | |
OTHER PAYABLES | The group of other payables classified in current and non-current liabilities is comprised as follows: Consolidated Current Non-current 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Payables to related parties (note 19 b) 35,499 3,097 96,629 Dividends and interest on capital payable (Note 13 I) 932,005 510,692 Advances from customers 137,418 68,521 Taxes in installments 20,179 21,551 73,934 79,242 Profit sharing - employees 113,219 42,699 Taxes payable 8,631 8,410 Provision from consumption and services 392,612 336,886 Third party materials in our possession 45,915 231 Other payables 28,010 31,303 48,134 41,671 1,704,857 1,014,980 227,328 129,323 In 2018, the Company reclassified the amount of R$ (44,921) in the Consolidated, which were classified as suppliers. |
15. INCOME TAX AND SOCIAL CONTR
15. INCOME TAX AND SOCIAL CONTRIBUTION | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax And Social Contribution | |
INCOME TAX AND SOCIAL CONTRIBUTION | 15.a) Income tax and social contribution recognized in profit or loss: The income tax and social contribution recognized in profit or loss for the year are as follows: Consolidated 12/31/2018 12/31/2017 12/31/2016 Income tax and social contribution income (expense) Current (827,229) (358,981) (206,178) Deferred 576,895 (50,128) (60,368) (250,334) (409,109) (266,546) The reconciliation of consolidated income tax and social contribution expenses and income and the result from applying the effective rate to profit before income tax and social contribution are as follows: Consolidated 12/31/2018 12/31/2017 12/31/2016 Profit/(Loss) before income tax and social contribution 5,450,917 520,338 (576,951) Tax rate 34% 34% 34% Income tax and social contribution at combined statutory rate (1,853,312) (176,915) 196,163 Adjustment to reflect the effective rate: Equity in results of affiliated companies 50,134 42,431 22,072 Profit with differentiated rates or untaxed (46,006) 37,605 (287,502) Transfer pricing adjustment (74,836) (34,746) (63,638) Tax loss carryforwards without recognizing deferred taxes (27,683) (368,612) (821,920) Indebtdness limit (38,486) (39,378) (35,391) Unrecorded deferred taxes on temporary differences (11,964) 541,655 643,990 Deferred Income Tax and social contribution on temporary differences 971,972 (Losses)/Reversal for deferred income and social contribution tax credits 835,937 (403,080) 44,691 Income taxes and social contribution on foreign profit (30,219) (29,964) (35,613) Amortization – Goodwill Metalic 31,439 Tax incentives 36,710 14,358 22,673 Deferred taxes on exchange variation in equity (43,667) Other permanent deductions (additions) (18,914) 7,537 16,490 Income tax and social contribution in profit for the period (250,334) (409,109) (266,546) Effective tax rate 5% 79% -46% 15.b) Deferred income tax and social contribution: Deferred income tax and social contribution are calculated on income tax and social contribution losses and the corresponding temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements: Consolidated 12/31/2016 Movement 12/31/2017 Movement 12/31/2018 Shareholders' P&L Others Shareholders' P&L Others Deferred Income tax losses 970,800 245,846 (79,412) 1,137,234 (177,378) (616) 959,240 Social contribution tax losses 340,629 94,843 (28,588) 406,884 (39,303) (223) 367,358 Temporary differences (2,288,175) 26,778 (390,817) (2,344) (2,654,558) 21,208 793,576 839 (1,838,935) - Provision for tax. social security, labor, civil and environmental risks 256,936 12,963 269,899 (5,846) 3,184 267,237 - Provision for environmental liabilities 95,048 (8,197) 86,851 (19,708) 67,143 - Asset impairment losses 93,908 (5,475) 88,433 (7,092) 81,341 - Inventory impairment losses 35,703 10,111 45,814 (7,054) 38,760 - (Gains)/losses on financial instruments (2,300) 1,388 (912) (2,407) (3,319) - (Gains)/losses on available-for-sale financial assets 705,929 316,563 417,659 530,292 (584,856) 363,095 - Actuarial liability (pension and healthcare plan) 134,578 180,834 (41,065) (1,289) 273,058 (48) 3,022 276,032 - Accrued supplies and services 123,101 (55,385) 67,716 27,928 95,644 - Allowance for doubtful debts 42,008 5,208 47,216 14,199 61,415 - Goodwill on merger 815 (207) 608 (608) - Unrealized ex change differences (1) 1,589,651 56,493 (134,992) 1,511,152 (500,620) 1,010,532 - (Gain) on loss of control over Transnordestina (92,180) (92,180) (92,180) - Cash flow hedge accounting 148,471 (13,992) 134,479 355,563 490,042 - Aquisition Fair Value SWT/CBL (199,001) (21,143) 26,833 (193,311) (16,683) 37,880 (172,114) - Deferred taxes non computed (1,324,437) (566,173) (3,255) (115) (212,236) (38,359) (2,345) (252,940) - (Losses) estimated/ reversals to deferred taxes credits (3,013,730) 82,769 (123,056) (4,130,928) (885,069) 1,929,424 (3,086,573) - Business Combination (1,072,824) 32,288 (1,040,536) 9,724 (1,030,812) - Other 190,149 (8,573) (107,976) (940) 72,660 37,153 (62,051) 47,762 Total (976,746) 26,778 (50,128) (110,344) (1,110,440) 21,208 576,895 (512,337) Total Deferred Assets 70,151 63,119 89,394 Total Deferred Liabilities (1,046,897) (1,173,559) (601,731) Total Deferred (976,746) (1,110,440) (512,337) (1) The Company taxes exchange differences on a cash basis to calculate income tax and social contribution on net income. The Company has foreign subsidiaries in its corporate structure, for which profits are taxed at income tax in the countries where they are domiciled by lower rates than those prevailing in Brazil. From 2013 up to 2018 such foreign subsidiaries generated profits amounting to R$ 1,150,443. If for some reason tax authorities understand that these profits are subject to additional taxation in Brazil in respect of income tax and social contribution, which if due, would total R$ 366,847. The Company, based on its legal counsel’s opinion, assessed the likelihood of loss in a potential claiming by tax authorities which resulted in a possible risk of loss and, therefore, no provision was recognized in the financial statements. 15.c) Income tax and social contribution Impairment test – deferred tax assets The Company's management constantly evaluates the ability to use its tax credits. In this direction, CSN periodically updates a technical study to demonstrate if the generation of future taxable profits support the realization of tax credits and, consequently support the accounting recognition of tax credits, the maintenance on the balance sheet or the constitution of a provision for loss in the realization of these credits. This study is prepared at Entity level, in accordance with the Brazilian tax legislation, and is performed considering the Company’s projections, which is the entity that generates a significant amount of tax credits, mainly, temporary differences. The Company covers the following businesses: • Steel Brazil (Steel); and • Cement; The deferred tax assets on tax losses and temporary differences refers mainly to the following: Nature Description Tax losses In recent periods, the Company started to incur tax losses, mostly because of high financial expenses, since it holds substantially all loans and financings of CSN group and presented a taxable income in 2018. Temporary differences Foreign exchange differences Since 2012 the Company opted for the taxation of exchange differences on a cash basis. As the Company has operated without taxable profit it would not make sense to use this deductibility year by year (accrual basis). As a result of the cash basis tax treatment, taxes are only due, and expenses are only deductible at the time of debt settlement. Losses on Usiminas shares The losses on Usiminas shares are recognized on an accrual basis, but the taxable event will occur only at the time of divestment. Other provisions Various accounting provisions are recognized on an accrual basis, but their taxation occurs only at the time of its realization, such as provisions for contingencies, impairment losses, environmental liabilities, etc. The study prepared is based on the Company business plan of on a long-term basis, reasonably estimated by management and considered several scenarios which vary according to different macroeconomic and operating assumptions. The model for projection of taxable profit considers two main indicators: · Pre-Tax Profit, reflecting our projected EBITDA plus depreciation, other income and expenses and financial income (expenses); and · Taxable Profit, which is our pre-tax profit plus (minus) expenses and income items that are taxable at a time different from the time obtained on an accrual basis (temporary differences). In addition, a sensitivity analysis of tax credits utilization considering a variation in macroeconomic assumptions, operational performance and liquidity events took place. A significant aspect to be considered in the analysis is the fact that CSN has presented recent tax losses mainly due to the deterioration of the Brazilian political and macroeconomic environment, as well as the growth of its financial leverage. These two aspects combined led to an unbalance between the financial and operating results of the Company. Within this context, the Company works with a business plan to rebalance between the financial and operating results of the Company, whose main measures are: · Expansion of disinvestment efforts; · Reduction of financial leverage; · Improvement in operating results due to increased sales volume, better prices of its products and efficiency in controlling production costs and · Reprofiling of the Company's indebtedness, with negotiations to extend the amortization periods and decentralization of debt through redirection of contracts to subsidiaries according to the nature and application of resources. With the aforementioned measures already in execution, the Company's management expects to retake high profitability rates. Accordingly, management considers that the gradual recognition of tax credits, using at first a time period of projections of less than 10 years, better reflects the expectation of utilization of the credits recognized in the Company's tax books. As a result of the study, the Company reversed R$ 971,972 of the loss recorded in previous years, presenting until 2018 credits recognized in the amount of R$ 250,334 in the Consolidated. 15.d) Income tax and social contribution recognized in shareholders' equity: The income tax and social contribution recognized directly in shareholders' equity are as follows: Consolidated 12/31/2018 12/31/2017 Income tax and social contribution Actuarial gains on defined benefit pension plan 176,700 176,658 Estimated losses for deferred income tax and social contribution credits - actuarial gains (180,048) (180,834) Changes in the fair value of assets measured at fair value through other comprehensive income (530,292) Estimated losses for deferred income tax and social contribution assets - assets measured at fair value through other comprehensive income 530,292 Exchange differences on foreign operations (325,350) (369,017) Cash flow hedge accounting 490,041 134,478 Estimated losses for deferred income tax and social contribution credits - cash flow hedge (490,041) (134,478) (328,698) (373,193) |
16. TAX INSTALLMENTS PROGRAMS
16. TAX INSTALLMENTS PROGRAMS | 12 Months Ended |
Dec. 31, 2018 | |
Tax Installments Programs | |
TAX INSTALLMENTS PROGRAMS | The position of the Refis debts and other tax installment payment plans, recorded in taxes in installments in current and non-current liabilities, as mentioned in note 14, is as follows: Consolidated Current Non-current 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Federal REFIS Law 11.941/09 12,100 12,552 18,895 20,083 Federal REFIS Law 12.865/13 6,240 5,984 52,661 56,381 Other taxes in installments 1,839 3,015 2,378 2,778 20,179 21,551 73,934 79,242 |
17. PROVISION FOR TAX, SOCIAL S
17. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS | 12 Months Ended |
Dec. 31, 2018 | |
Provision For Tax Social Security Labor Civil And Environmental Risks And Judicial Deposits | |
PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS | Claims of different nature are being challenged at the appropriate courts. Details of the accrued amounts and related judicial deposits are as follows: Consolidated Accrued liabilities Judicial deposits 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Tax 118,490 113,451 46,321 52,542 Social security 70,084 74,522 50,898 50,098 Labor 362,228 451,173 214,625 202,104 Civil 210,264 148,212 22,024 22,752 Environmental 31,390 37,733 1,900 1,826 Deposit of a guarantee 12,182 10,029 792,456 825,091 347,950 339,351 Classification Current 106,503 105,958 Non-current 685,953 719,133 347,950 339,351 792,456 825,091 347,950 339,351 The changes in the provision for tax, social security, labor, civil and environmental risks in the year ended December 31, 2018 were as follows: Consolidated Current + Non-current Nature 12/31/2017 Additions Net update on amount Net utilization of reversal 12/31/2018 Tax 113,451 17,941 12,081 (24,983) 118,490 Social security 74,522 2,348 1,996 (8,782) 70,084 Labor 451,173 29,250 55,344 (173,539) 362,228 Civil 148,212 14,921 56,092 (8,961) 210,264 Environmental 37,733 31 6,021 (12,395) 31,390 825,091 64,491 131,534 (228,660) 792,456 The provision for tax, social security, labor, civil and environmental liabilities was estimated by management and is mainly based on the legal counsel’s assessment and only proceedings for which the risk is classified as probable loss are accrued. Additionally, this provision includes tax liabilities resulting from lawsuits filed by the Company, subject to SELIC (Central Bank’s policy rate). Tax lawsuits The main tax lawsuits assessed by the outside legal counsel as probable losses which CSN or its subsidiaries are parties are as follows: (i) Municipal tax assessments (ISS) incident in lease contracts; (ii) Tax Forfeiture to collect ICMS reported but not paid; (iii) Consignment action for payment of social security contributions; (iv) collection of income tax and social contribution for the offset of nonexistent tax credits. Labor lawsuits As of December 31, 2018, the Group is a defendant in 7,665 labor lawsuits. Most of the claims relate to subsidiary and/or joint liability, salary equalization, health hazard premiums and hazardous duty premiums, overtime pay, health care plan, indemnity claims resulting from alleged occupational diseases or on-the-job accidents, breaks between working hours, and differences in profit sharing from 1997 to 1999 and from 2000 to 2003. During the year ended December 31, 2018 there were addition or write-off movements in labor lawsuits arising from the definite conclusion and the constant revision of the Company’s accounting estimates related to the provision for contingencies that take into consideration the different nature of the claims made, as required by the Company’s accounting policies. Civil lawsuits Among the civil lawsuits in which the Company is a defendant are claims for compensation. Generally, these lawsuits result from on-the-job accidents, occupational diseases and contractual litigation related to the industrial activities of the Group, real estate actions, healthcare plan. Environmental lawsuits The environmental administrative/judicial proceedings filed against the Company include mainly administrative proceedings for alleged environmental irregularities and the regularization of environmental permits; at the judicial level, the Company is a party to actions collecting the fines imposed for such alleged environmental irregularities and public civil actions claiming regularization coupled with compensation, in most cases claiming environmental recovery. In general, these proceedings arise from alleged impacts to the environment related to the Company’s industrial activities. The environmental processes present high complexity for estimating the value at risk, should be taken into consideration, among various aspects, procedural development, the extent of damage and the projection of repairing costs. There are other environmental processes for which it is not yet possible to assess the risk and contingency value due to the aforementioned complexity in estimation, the peculiarities of the matters involving them and also their procedural steps. The main processes of environmental nature are listed below: · In 2010, CSN signed a Term for Undertaking (“ Termos de Ajustamento de Conduta Instituto Estadual do Ambiente Autorização Ambiental de Funcionamento Within the context of the TAC 03/2016, upon the expiration of the environmental authorization, a renewal of the authorization was issued in 12/07/2017 by the Deliberation CECA/CFL nº 6.141 (“AA”) under n , published in the Diário Oficial During this period, the Company continued discussions with the Environmental Authorities of the State of Rio de Janeiro with a view to the consensual solution to the environmental issues of the plant, and on September 19, 2018, it was published in the Diário Oficial Secretaria do Estado do Meio Ambiente Comissão Estadual de Controle Ambiental This new TAC 07/2018 contemplates investments of approximately R$ 303 million in environmental projects and actions in the region up to August 2024 and represents a commitment of the Company to the sustainability of its activities, with the communities of Volta Redonda and the region, as well as with the generation of value to its shareholders, employees and other stakeholders. · In July 2012, the Public Ministry of the State of Rio de Janeiro, (“ Ministério Público do Estado do Rio de Janeiro Ministério Público Federal Superior Tribunal de Justica · In January 2014, it was distributed an Annulment Action with the purpose of declaring the nullity of an Assessment Notice issued by INEA for the alleged contamination of the soil and groundwater in the Volta Grande IV Condominium. The penalty was a simple fine, in the amount of R$ 35 million. The request for the preliminary suspension of the chargeability of the debt was not assessed, which is why INEA filed a Tax Enforcement Action. Declared connection between actions. An application for suspension of the procedure was filed until the conclusion of the investigation in the ACP Volta Grande IV. · With regards to other supposedly contaminated areas in Volta Redonda, the Public Ministry initiated three public civil actions claiming for environmental remediation and indemnification related to certain areas denominated Marcia I, II, III and IV, Wandir I and II and Reciclam. Regarding the latter, the definition from the responsible part to produce evidences still depends. These claims are at initial stage and we are currently performing environmental studies that will determine the extent of possible environmental damages related to soil contamination, as well as the action plan to fulfill with the legislation in force. As soon as the studies are concluded, they will be presented and added to the pleadings. · In 2015, the Public Federal Ministry initiated a public civil action against us claiming for the adequacy and regularization for the emission of particles from the UPV and the stoppage of its operations. In accordance with CONAMA Resolution n. º 436/2011, we have to adjust the emission of particles to match to the current legal standards required by December 2018, which should be compatible with the schedule of actions and measures foreseen in TAC 07/2018. · In 2016, we were mentioned in public civil action proposed by the Public Federal Ministry and the Public Ministry of the State of Rio de Janeiro in relation to a supposedly irregular waste deposit in the landfill area named "Aterro Panco". The claimings are for the recovery of degraded areas, compensation for damages to fauna and flora and to human health, as well as indemnification for material and moral damages caused to the environment. Due to the nature of this action and to the current stage of the pleading, this action is still considered as inestimable. · In 2004, the Public Federal Ministry initiated a public civil action against us for a supposedly environmental contamination and pollution of the Paraíba do Sul river supposedly caused by our industrial activities of UPV. The second federal regional court maintained the condemnation previously given and reinforced the obligation of the Company to compensate eventual environmental damages. We appealed to the Superior Court of Justice (STJ), which accepted the appeal and determined the pleading to return to the previous stage to resume the process. · A civil investigation is ongoing to assess (i) the environmental requisites to our project in the city of Arcos (cement plant); (ii) monitoring and mitigation of the environmental impacts of our productive activities; (iii) conformity of the conditions our our environmental licenses, including the creation of a museum in Corumbá ecological station and the establishment of a Private Reserve of the Natural Heritage; and (iv) measures for preservation of the cultural heritage and adoption of compensatory measures. In February 2011 a Term of Undertaking was signed (“TAC”) to assure the fulfillment of the obligations raised by the Public Ministry. The Ministerial Board has issued a clearance certificate to the major part of the TAC, except for two pending items that still remain open. · In 2009 and 2010, we signed Judicial Agreements (“TAJ”) with the Public Federal Ministry to recover environmental liabilities caused by our coal mining activities in the Southeast of Santa Catarina until the 90’s. The environmental liabilities reached by the TAJ include the restoration of certain degraded areas. In March 2018, the parties renegotiated a new agreement, with the extension of the construction schedule until 2030, which was legally approved on 06/06/18, and is in compliance by the Company. · In July 2018, the Company and Harsco Metals ("Harsco"), a contracted company, were named in a new public civil action jointly filed by the Federal Public Ministry and the Public Prosecutor's Office of the State of Rio de Janeiro, due to the irregular deposit of waste (steel slag) in the area called "Patio Volta Grande". The decision issued established a certain limitation in the monthly dispatch of the slag to the said yard, reduction of the height of the piles and removal of the excess of the stored material. The Company and Harsco have been looking for alternatives to solve this problem and are working on a plan of action with a feasible schedule, due to the concern with the impacts that can be generated by the abrupt removal of the yard material within the deadline established in the preliminary decision · In January 1995, in the Municipality of Volta Redonda/RJ (“MVR”), the ACP was filed claimed to CSN to comply with 26 items of Compensatory Environmental Programs. After the dispute, the parties entered into Transaction (1995), establishing CSN's effective obligations, as well as environmental compensation, ratified in court by judgment. The Municipality of Volta Redonda disagreed about the approved agreement and in 2015 the process of liquidation of unfulfilled obligations was initiated. On December 27, 2018, a new agreement was signed between CSN and the MRV, to put an end to the legal dispute, through reciprocal concessions from the parties, with the MVR expressly waiving the right on which the lawsuit is based and to CSN an additional investment in the amount of R$ 21 million, with 30% of this amount being allocated to services of environmental interest, preservation works, improvement and recovery of the quality of the environment of Volta Redonda. · In August 2017, CSN initiated an annulment action against the tax assessment notice that imposed a fine on CSN (R$ 22,038,856.09 – updated until January/19), for alleged pollution of the water of the Paraíba do Sul River, with discharge of effluent from the ETE of Blast Furnace # 2, due to accident occurred on 11/27/2010. The enforceability of the fine is suspended by virtue of an injunction granted in a writ of mandamus until final decision of the appeal phase that discusses the guarantee offered to the court (suitable guarantee) for the grant of guardianship. In relation to the mining activities matters, due to the accident involving a Brazilian mining company in November 2015, the State of Minas Gerais initiated several civil investigations based on the inventory of tailing dams of the State released in 2014. Those procedures have the scope of ascertaining those structures that do not have technical stability guaranteed by an external auditor or whose stability has not been attested due to a lack of documents or technical data · In March 2016 we were mentioned in a public civil action proposed by the State of Minas Gerais and by the State Environmental Foundation (“ Fundação Ambiental do Estado Dique do Engenho · Other administrative and judicial proceedings The table below shows a summary of the carrying amounts of the main legal matters with possible risk of loss and the amounts on December 31, 2018 and 2017. 12/31/2018 12/31/2017 Income tax / Social contribution - Assessment Notice and imposition of fine (AIIM) - Capital gain for an alleged sale of the shares of its subsidiary NAMISA. 11,812,071 11,073,961 Assessment Notice and Imposition of fine (AIIM) - Income tax/ Social contribution - gloss of goodwill deductions generated by the reverse merger of Big Jump by NAMISA 3,722,888 2,623,179 Assessment Notice and Imposition of fine (AIIM) - Income tax/ Social contribution - gloss of interest on prepayment arising from supply contracts of iron ore and port 2,165,088 2,500,606 Notices of violation and imposition of fine - Income taxes and social contribution due to profits from foreign subsidiaries (years 2008,2010 and 2011) (1) 1,891,149 1,858,640 Tax foreclosures - ICMS - Electricity credits 974,479 920,306 Installment MP 470 - Insufficient impairment of tax loss and negative basis (1) 704,739 Offset of taxes that were not approved by the Federal Revenue Service - IRPJ/CSLL, PIS/COFINS e IPI 1,481,382 1,685,648 Disallowance of the ICMS credits - Transfer of iron ore 529,607 499,006 ICMS - Refers to the transfer of imported raw material at an amount lower than the price disclosed in the import documentation 294,527 275,233 Disallowance of the tax losses arising on adjustments to the SAPLI 516,583 491,862 Taxes - ICMS - shipment and return of goods for industrialization (2) 816,199 Assessment Notice- Income tax- Capital Gain of CFM vendors located outside 243,007 203,185 CFEM - Divergence on the understanding between CSN and DNPM on the calculation basis 311,582 290,249 Infraction Notice - ICMS - Question on sales to Incentivized Zone 976,438 170,330 Other tax (federal, state, and municipal) lawsuits 3,625,167 3,065,131 Social security lawsuits 287,823 278,600 Law suit applied by Brazilian antitrust authorities (CADE) 101,683 98,189 Other civil lawsuits 922,171 1,111,944 Labor and social security lawsuits 1,537,078 1,569,712 Environmental process - ACP TAC / PAC - Compliance with environmental obligations (3) 216,878 Tax Enforcement Fine Volta Grande IV (4) 75,530 67,620 Others Enviromental lawsuits 144,235 117,858 31,612,488 30,639,075 (1) The Contingency was written off as a result of a final favorable decision by CARF, which recognized as certain the use of tax loss carryforwards used in the installment plan established by MP 470. (2) Homologation to the Secretary of Finance and General Advocacy of the State of Minas Gerais with the benefits brought in the Tax Regularization Program - "New Regularize", established by Law 22,549 / 2017. (3) We reclassified the contingency related to this judicial process (ACP TAC-PAC nº 0000689-17.1995.8.19.0066) to remote, due to the conclusion of an agreement between CSN and the Municipality of Volta Redonda (MVR) on 12/27/2018, which will put an end to the legal dispute, through reciprocal concessions from the parties, and the MVR expressly waives the right on which the action is based and to CSN the additional investment in the amount of R $ 21 million, and 30% services of environmental interest, preservation works, improvement and recovery of the quality of the environment of Volta Redonda (4) On April 8, 2013, INEA imposed on CSN a fine of R$ 35 million in respect of the aspects involving the Volta Grande IV condominium, determining that the actions already considered and discussed in the civil suit filed in July 2012. In connection with the application of this fine, an annulment action was distributed, in January 2014, to the 10th Civil Court of the State of Rio de Janeiro, seeking the annulment of the fine and its effects. In parallel, INEA filed a tax enforcement action in order to enforce the amount of the fine imposed. The aforementioned Tax Enforcement action was distributed in May 2014 to the 4th Volta Redonda Active Debt Registry in the State of Rio de Janeiro. Currently, said enforcement action is suspended until the judgment of the annulment action, in order to avoid conflicting decisions. The assessments made by the legal counsel define these administrative and judicial proceedings as entailing risk of possible loss and, therefore, no provision was recorded in conformity with Management’s judgment and accounting practices adopted in Brazil. |
18. PROVISION FOR ENVIRONMENTAL
18. PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2018 | |
Provision For Environmental Liabilities And Asset Retirement Obligations | |
PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMENT OBLIGATIONS | The carrying amount of the provision for environmental liabilities and asset retirement obligation (ARO) are as follows: Consolidated 12/31/2018 12/31/2017 Environmental liabilities 198,386 255,517 Asset retirement obligations 83,380 81,496 281,766 337,013 18.a) Environmental liabilities As of December 31, 2018, there is a provision recognized for expenditures relating to environmental investigation and recovery services for potentially contaminated areas surrounding establishments in the States of Rio de Janeiro, Minas Gerais and Santa Catarina. Estimated expenditures will be reviewed periodically and the amounts already recognized will be adjusted whenever necessary. These are Management’s best estimates based on the environmental remediation studies and projects. This provision is recognized as other operating expenses. The provision is measured at the present value of the expenditures required to settle the obligation, using a pretax rate that reflects current market assessments of the time value of money and the specific risks of the obligation. The increase in the obligation due to passage of time is recognized as other operating expenses. The discount rate used to calculate the provision to present value through December 31, 2018 was 10.54% in real terms. The liability recognized is periodically updated based on the general market price index (IGP-M) for the period. Some contingent environmental liabilities are monitored by environmental department were not recorded in provisions due to its characteristics, they do not meet the recognition criteria present in IAS 37. 18.b) Asset retirement Asset retirement obligations refer to estimated costs for decommissioning, retirement or restoration of areas upon the termination of activities related to mining resources. The initial measurement is recognized as a liability discounted to present value and subsequently through increase in expenses over time. The asset retirement cost equivalent to the initial liability is capitalized as part of the carrying amount of the asset, being depreciated over the useful life of the asset. In 2015, the Company completed a new certification of iron mineral reserves in the Casa de Pedra and Engenho mines. This certification, prepared by a specialized company, has certified reserves of 3,021 million tons of iron ore. |
19. RELATED-PARTY BALANCES AND
19. RELATED-PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related-party Balances And Transactions | |
RELATED-PARTY BALANCES AND TRANSACTIONS | 19.a) Transactions with holding companies Vicunha Siderurgia S.A. is the Company’s main shareholder, with 49,24% of the voting shares. The Company’s control Vicunha Aços S.A. and Rio Iaco Participações S.A, the latter holding 4,22% of interest in the voting capital of the Company. The corporate structure of Vicunha Aços S.A is as follows: Vicunha Steel S.A. – holds 67.93% of Vicunha Aços S.A. CFL Participações S.A. – holds 12.82% of Vicunha Aços S.A. and 40% of Vicunha Steel S.A. Rio Purus Participações S.A. – holds 19.25% of Vicunha Aços S.A. and 60% of Vicunha Steel S.A. · Liabilities Companies Proposed Dividends Vicunha Aços 439,913 Rio Iaco Participações S.A. 37,640 Total at 12/31/2018 477,553 Total at 12/31/2017 - 19.b) Transactions with subsidiaries, joint ventures, associates, exclusive funds and other related parties · By transaction Consolidated Current Non-current Total 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Assets Trade receivables(note 6) 93,317 115,388 93,317 115,388 Dividends receivable (Note 8) 46,171 41,528 46,171 41,528 Actuarial asset (note 8) 99,894 111,281 99,894 111,281 Financial investments/ investments 92,332 53 92,332 53 Loans (note 8) 2,675 2,441 706,605 554,694 709,280 557,135 Other receivables (note 8) 3,649 3,577 218,840 30,770 222,489 34,347 238,144 162,987 1,025,339 696,745 1,263,483 859,732 Liabilities Other payables (Note 14) Accounts payable 29,286 799 96,629 125,915 799 Provision for consumption and services 6,213 2,298 6,213 2,298 Trade payables 135,801 134,974 135,801 134,974 Actuarial liabilities 7,982 41,937 7,982 41,937 171,300 138,071 104,611 41,937 275,911 180,008 By Transaction - Statement of Income 12/31/2018 12/31/2017 12/31/2016 P&L Revenues Sales 1,278,751 880,145 878,992 Interest (note 25) 64,888 61,549 60,964 Expenses Purchases (1,418,282) (1,176,930) (1,099,851) Interest (note 25) (16,092) (3,185) Foreing exchange and monetary variations, net 13,611 (18,398) (77,124) (235,236) (181,478) · By company - Assets and Liabilities Assets Liabilities Current Non-current Total Current Non-current Total Joint-venture and Joint-operation Itá Energética S.A. 2,550 2,550 MRS Logística S.A. 46,243 46,243 101,264 96,629.00 197,893 CBSI - Companhia Brasileira de Serviços e Infraestrutura 3 3 37,362 37,362 Transnordestina Logística S.A (1) 1,611 925,445 927,056 13,652 13,652 47,857 925,445 973,302 154,828 96,629 251,457 Other related parties CBS Previdência 99,894 99,894 7,982 7,982 Banco Fibra (2) 92,334 92,334 Usiminas Panatlântica (3) 53,027 53,027 15,643 15,643 Ibis Participações e Serviços Other related parties 2,092 2,092 829 829 147,453 99,894 247,347 16,472 7,982 24,454 Associates Arvedi Metalfer do Brasil S.A. 42,834 42,834 Total at 12/31/2018 238,144 1,025,339 1,263,483 171,300 104,611 275,911 Total at 12/31/2017 162,987 696,745 859,732 138,071 41,937 180,008 · By company - Statement of income Sales Purchases Finance income(expenses), net Exchange rate variations, net Total Joint ventures and Joint Operation MRS Logística S,A, (1,111,695) (16,092) (1,127,787) CBSI - Companhia Brasileira de Serviços e Infraestrutura 47 (180,332) (180,285) Transnordestina Logística S.A. (1) 367 (15,667) 50,003 34,703 414 (1,307,694) 33,911 (1,273,369) Other related parties Banco Fibra (2) 14,651 13,611 28,262 Usiminas (382) (382) Panatlântica (3) 1,174,984 (94,515) 1,080,469 Ibis Participações e Serviços (4,501) (4,501) Other related parties 2,745 (11,190) (8,445) 1,177,729 (110,588) 14,651 13,611 1,095,403 Associates Arvedi Metalfer do Brasil S,A, 100,608 234 100,842 Discontinued Operation Cia Metalic Nordeste Total 1,278,751 (1,418,282) 48,796 13,611 (77,124) 12/31/2017 Sales Purchases Finance income(expenses), net Total Joint ventures and Joint Operation Itá Energética S.A (32,275) (32,275) MRS Logística S.A. (934,279) (934,279) CBSI - Companhia Brasileira de Serviços e Infraestrutura 55 (150,758) (150,703) Transnordestina Logística S.A. (1) 2,549 (7,916) 53,261 47,894 2,604 (1,125,228) 53,261 (1,069,363) Other related parties Fundação CSN 13 (1,118) (1,105) Banco Fibra (2) 6,290 6,290 Usiminas (427) (427) Panatlântica (3) 872,047 (43,949) 828,098 Ibis Participações e Serviços (5,915) (5,915) Other related parties 2,821 (293) 2,528 874,881 (51,702) 6,290 829,469 Associates Arvedi Metalfer do Brasil S,A, 2,660 1,998 4,658 Discontinued Operation Cia Metalic Nordeste Total 880,145 (1,176,930) 61,549 (235,236) (1) Transnordestina Logística S.A: Assets: Refers mainly to contracts in R$: interest equivalent to 125.0% and 130.0% of CDI. On December 31, 2018, the borrowings carrying amounts totaled to R$706,605 (R$507,009 as of December 31, 2017). (2) Banco Fibra S.A: Assets: Refers mainly to Eurobond with Fibra Bank and maturity in february 2028. (3) Panatlântica:Receivables from the sale of steel products. 19.c) Other unconsolidated related parties · CBS Previdência The Company is its main sponsor, being a non-profit civil society established in July 1960, primarily engaged in the payment of benefits that supplement the official government Social Security benefits to participants. In its capacity as sponsor, CSN carries out transactions involving the payment of contributions and recognition of actuarial liabilities calculated in defined benefit plans. · Fundação CSN Nowadays, the Company develops socially responsible policies concentrated in Fundação CSN, of which it is the founder. The transactions between the parties are related to the operational and financial support for Fundação CSN to conduct the social projects, developed mainly in the localities where the Company operates. · Banco Fibra Banco Fibra is under the control structure of Vicunha Aços S.A., direct controller of the Company and the financial transactions carried out with this bank are limited to movements in checking accounts and financial investments in fixed-income securities. · Taquari Asset Belonging to the Vicunha Group, Taquari Asset is the group company responsible for managing third-party funds, funds and / or portfolios. · Companies under the control of a member of the Company’s management · Ibis Participações e Serviços Ltda. · Ibis Agrária Ltda · Partifib Projetos Imobiliários Ltda. · Vicunha Imóveis Ltda. · Vicunha Serviços Ltda. 19.d) Key management personnel The key management personnel with authority and responsibility for planning, directing and controlling the Company’s activities, include the members of the Board of Directors and statutory directors. The following is information on the compensation of such personnel and the related balances as of December 31, 2018. 12/31/2018 12/31/2017 12/31/2016 P&L Short-term benefits for employees and officers 32,848 39,721 71,852 Post-employment benefits 105 110 306 32,953 39,831 72,158 |
20. SHAREHOLDERS' EQUITY
20. SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders Equity | |
SHAREHOLDERS' EQUITY | 20.a) Paid-in capital Fully subscribed and paid-in capital as of December 31, 2018 and December 31, 2017 is R$4,540,000 comprising 1,387,524,047 book-entry common shares without par value. Each common share entitles its holder to one vote in Shareholders’ Meetings. 20.b) Authorized capital The Company’s bylaws in effect as of December 31, 2018 determine that the capital can be raised to up to 2,400,000,000 shares by decision of the Board of Directors. 20.c) Legal reserve This reserve is recognized at the rate of 5% of the profit for each period, as provided for by Article 193 of Law 6,404/76, up to the ceiling of 20% of share capital. 20.d) Ownership structure As of December 31, 2018, the Company’s ownership structure was as follows: 12/31/2018 12/31/2017 Number of common shares % of total shares % of voting capital Number of common shares % of total shares % of voting capital Vicunha Aços S.A. (*) 679,522,254 48.97% 49.24% 682,855,454 49.21% 50.32% Rio Iaco Participações S.A. (*) 58,193,503 4.19% 4.22% 58,193,503 4.19% 4.29% NYSE (ADRs) 284,152,319 20.48% 20.59% 303,590,364 21.88% 22.37% Other shareholders 358,246,471 25.82% 25.95% 312,493,726 22.52% 23.02% Total shares outstanding 1,380,114,547 99.47% 100.00% 1,357,133,047 97.81% 100.00% Treasury shares 7,409,500 0.53% 30,391,000 2.19% Total shares 1,387,524,047 100.00% 1,387,524,047 100.00% (*) Controlling group companies. 20.e) Treasury shares The Board of Directors authorized various share buyback programs in order to hold shares in treasury for subsequent disposal and/or cancelation with a view to maximizing the generation of value to the shareholder through an efficient capital structure management, as shown in the table below: Program Board’s Authorization Authorized quantity Program period Average buyback price Minimum and maximum buyback price Number bought back Share cancelation Disposal of shares Balance in treasury 1º 3/13/2014 70,205,661 From 3/14/2014 to 4/14/2014 R$ 9.34 R$ 9,22 and R$ 9,45 2,350,000 2,350,000 2º 4/15/2014 67,855,661 From 4/16/2014 to 5/23/2014 R$ 8.97 R$ 8,70 and R$ 9,48 9,529,500 11,879,500 3º 5/23/2014 58,326,161 From 5/26/2014 to 6/25/2014 R$ 9.21 R$ 8,61 and R$ 9,72 31,544,500 43,424,000 4º 6/26/2014 26,781,661 From 6/26/2014 to 7/17/2014 R$ 10.42 R$ 9,33 and R$ 11,54 26,781,661 70,205,661 7/18/2014 Not applicable Not applicable 60,000,000 (1) 10,205,661 5º 7/18/2014 64,205,661 From 7/18/2014 to 8/18/2014 R$ 11.40 R$ 11.40 240,400 10,446,061 8/18/2014 Not applicable Not applicable 10,446,061 (1) 6º 8/18/2014 63,161,055 From 8/19/2014 to 9/25/2014 R$ 9.82 R$ 9,47 and R$ 10,07 6,791,300 6,791,300 7º 9/29/2014 56,369,755 From 9/29/2014 to 2/29/2014 R$ 7.49 R$ 4,48 and R$ 9,16 21,758,600 28,549,900 8º 12/30/2014 34,611,155 From 12/31/2014 to 3/31/2015 R$ 5.10 R$ 4,90 and R$ 5,39 1,841,100 30,391,000 9º (*) 03/31/2015 32,770,055 From 4/01/2015 to 6/30/2015 30,391,000 04/20/2018 30,391,000 From 4/20/2018 to 4/30/2018 Não aplicável Não aplicável R$ 0.00 R$ 0.00 22,981,500 (2) 7,409,500 (*) There were no share buyback in this program. (1) In 2014 the Board of Directors approved the cancelation of 70,446,061 treasury shares without change in the Company’s share capital. (2) In April 2018, the Board of Directors authorized the sale of up to 30,391,000 common shares held in treasury. Until the end of the program, 22,981,500 shares were sold for R$213,494. The Company. The Company recognized a profit on the sale of the shares in the amount of the amount of R$32,670. As of December 31, 2018, the position of the treasury shares was as follows: Quantity purchased (Units) Amount paid for the shares Share price Market value of shares in 12/31/2018 (*) Minimum Maximum Average 7,409,500 R$ 58,264 R$ 4.48 R$ 10.07 R$ 7.86 R$ 65,500 (*) Using the last share average quotation on B3 S.A. - Brasil, Bolsa, Balcão as of September 30, 2018 of R$ 8.84 per share. 20.f) Policy on investments and payment of interest on capital and dividends The Company adopts a profit distribution policy which, after compliance with the provisions in Law 6,404/76, as amended by Law 9,457/97, will entail the allocation of all the profit to the Company’s shareholders, provided that the following priorities are observed, irrespective of their order: (i) carrying out the business strategy; (ii) fulfilling its obligations; (iii) making the required investments; and (iv) maintaining a healthy financial situation of the Company. 20.g) Earnings/(loss) per share: Basic earnings per share were calculated based on the profit/loss attributable to the owners of CSN divided by the weighted average number of common shares outstanding during the year, excluding the common shares purchased and held as treasury shares, as follows: 12/31/2018 12/31/2017 12/31/2016 Common Shares (Loss) profit for the year Continued operations 5,074,136 10,272 (925,186) Discontinued operations - - (9,561) 5,074,136 10,272 (934,747) Weighted average number of shares 1,373,250,595 1,357,133,047 1,357,133,047 Basic and diluted EPS Continued Operations 3.69498 0.00757 (0.68172) Discontinued Operations - - (0.00704) 3.69498 0.00757 (0.68876) The Company does not hold potential dilutable outstanding ordinary shares that could result in dilution of earnings per share. |
21. PAYMENT TO SHAREHOLDERS
21. PAYMENT TO SHAREHOLDERS | 12 Months Ended |
Dec. 31, 2018 | |
Payment To Shareholders | |
PAYMENT TO SHAREHOLDERS | The Company's Bylaws provide the distribution of 25% minimum dividends of adjusted net income under the law, to the shareholders. The dividends are calculated in accordance with the Company’s Bylaws and in accordance with the Brazilian Corporate Law. The following is the calculation of dividends for 2018: Allocation of profits 12/31/2018 Profit for the year 5,074,136 Absorption of deficits (1,291,689) Legal reserve (189,122) Allocation of profits 3,593,325 Proposed destination: Mandatory minimum dividends (898,332) Intended for statutory reserve of working capital (2,694,993) In current liabilities Dividends to be paid on December 31, 2017 2,209 Mandatory minimum dividends 898,332 Dividends to be paid on December 31, 2018 900,541 Weighted average number of shares 1,373,251 Dividends per share approved 0.65416 The following table shows the history of deliberate and paid dividends: Approval Year Dividends Payment Year Dividends 2017 (*) 0,00 2017 0,00 2018 898,332 2018 0,00 Total approved 898,332 Total paid (*) There was no resolution on dividend distribution during the year of 2017. |
22. NET SALES AND SERVICES REVE
22. NET SALES AND SERVICES REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
Net Sales And Services Revenue | |
NET SALES AND SERVICES REVENUE | Net sales revenue is comprised as follows: Consolidated 12/31/2018 12/31/2017 12/31/2016 Gross revenue Domestic market 14,752,901 11,487,011 10,206,195 Foreign market 11,817,559 9,980,572 9,571,630 26,570,460 21,467,583 19,777,825 Deductions Canceled sales, discounts and rebates (234,851) (262,989) (190,415) Taxes on sales (3,366,724) (2,679,993) (2,438,461) (3,601,575) (2,942,982) (2,628,876) Net revenue 22,968,885 18,524,601 17,148,949 |
23. EXPENSES BY NATURE
23. EXPENSES BY NATURE | 12 Months Ended |
Dec. 31, 2018 | |
Expenses By Nature | |
EXPENSES BY NATURE | EXPENSES BY NATURE Consolidated 12/31/2018 12/31/2017 12/31/2016 Raw materials and inputs (6,759,275) (5,404,801) (4,518,718) Labor cost (2,743,460) (2,400,579) (2,482,111) Supplies (1,782,576) (1,451,437) (1,384,437) Maintenance cost (services and materials) (1,326,894) (1,145,974) (1,203,294) Outsourcing services (2,368,387) (2,062,352) (2,228,786) Freights (1,802,541) (1,362,087) (1,263,734) Depreciation, Amortization and depletion (Note 10,11, and 26) (1.175.107) (1,408,765) (1,278,816) Others (905,128) (591,094) (495,274) (18,863,368) (15,827,089) (14,855,170) Classified as: Cost of sales (16,105,657) (13,596,141) (12,640,042) Selling expenses (2,263,688) (1,815,107) (1,696,896) General and administrative expenses (494,023) (415,841) (518,232) (18,863,368) (15,827,089) (14,855,170) The depreciation, amortization and depletion additions for the year were distributed as follows: ConsColi Consolidated 12/31/2018 12/31/2017 12/31/2016 Production costs 1,145,793 1,376,862 1,241,425 Sales expenses 5,850 8,851 9,163 General and Administrative Expenses 23,464 23,052 28,228 1,175,107 1,408,765 1,278,816 Other operating expenses (*) 97,914 44,570 43,681 1,273,021 1,453,335 1,322,497 (*) Refers mainly to the depreciation and amortization of paralyzed assets, see note 24. |
24. OTHER OPERATING INCOME (EXP
24. OTHER OPERATING INCOME (EXPENSES) | 12 Months Ended |
Dec. 31, 2018 | |
Other Operating Income | |
OTHER OPERATING INCOME (EXPENSES) | Co Consolidated solidado 12/31/2018 12/31/2017 12/31/2016 Other operating income Indemnities 46,256 6,106 26,871 Rentals and leases 5,430 1,841 1,483 Dividends received 9,188 3,248 567 PIS and COFINS to compensate (1) 1,102,365 Extemporaneous PIS/COFINS credits 203,504 Contractual fines 3,965 2,970 2,501 Gain on business combination 66,496 Actuarial pension plan 20,983 36,952 48,790 Gain ons sale of assets held for sale 252,023 Updated shares – Fair Value through profit or loss (VJR) (Note 13) 1,655,813 Eletrobrás's compulsory loan (3) 755,151 Gain on sale of LLC (note 3) 1,164,294 Debts write off - intragroup Other revenues 27,749 18,018 61,274 4,036,043 824,286 663,509 Other operating expenses Taxes and fees (26,197) (136,348) (88,249) Write-off/(Provision) of judicial deposits (54,330) (38,258) (64,886) Expenses with environmental liabilities, net (60,311) (7,156) (5,023) Expenses from tax, social security, labor, civil and environmental lawsuits, net (59,219) (95,744) (151,534) Contractual fines (2) (104,086) (16,624) Depreciation of equipment paralyzed and amortization of intangible assets (note 23) (97,914) (44,570) (43,681) Write- off of PP&E and intangible assets (notes 10 and 11) (27,260) (28,127) (88,339) Estimated (Loss)/reversal in inventories (149,704) (15,775) (29,316) Studies and project engineering expenses (33,738) (32,956) (31,156) Research and development expenses (2,688) (3,944) (2,269) Advisory expenses (508) (3,419) (20,865) Healthcare plan expenses (108,369) (97,837) (80,489) Reversal/(Provision) industrial reestructuring (17,490) 5,807 96,390 Cash flow hedge realized (Note 13 b) (370,191) (92,140) (77,444) Impairment of fair value of Transnordestina (387,989) Other expenses (218,701) (56,477) (85,256) (1,330,706) (646,944) (1,076,730) Other operating income (expenses), net 2,705,337 177,342 (413,221) (1) Refers to non-inclusion of ICMS in the PIS and COFINS calculation basis, see note nº8. (2) In 2018, refers to the contractual amendment with the jointly-owned subsidiary MRS, for the revision of the “Anual Transportation Plan”. (3) This is a net amount, certain and due, arising from the final judicial decision favorable to the Company, which is irreversible and irrevocable, in order to apply the STJ's consolidated position on the subject, which culminated in sentencing the Eletrobrás to the payment of the correct interest and monetary correction of the Compulsory Loan. The final judicial decision, as well as the certainty about the amounts involved in the settlement of the judgment (judicial procedure to request the satisfaction of the right), allowed the conclusion that the right to receive this value is certain. Thus, in line with our legal and accounting advisors, we recognize the credits in noncurrent assets against the result of Other Operating Revenues. The monetary adjustment of 2018 is presented in the note nº25 - Financial Income (Expenses). |
25. FINANCIAL INCOME (EXPENSES)
25. FINANCIAL INCOME (EXPENSES) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Income | |
FINANCIAL INCOME (EXPENSES) | Consolidated 12/31/2018 12/31/2017 12/31/2016 Financial income Related parties (note 19 b) 64,888 61,549 60,964 Income from financial investments 111,235 162,292 301,401 Gain from derivative 28,503 5,829 Gain on repurchase of debt securities 146,214 Other income (1) 1,134,391 42,730 129,182 1,310,514 295,074 643,590 Financial expenses Borrowings and financing - foreign currency (988,821) (827,841) (930,508) Borrowings and financing - local currency (1,020,867) (1,610,714) (2,229,849) Related parties (note 19 b) (16,092) (3,185) Capitalized interest (notes 10 and 30) 71,611 91,957 215,794 Losses on derivatives (362) Interest, fines and late payment charges (71,100) (72,343) (38,002) Commission and bank fees (182,179) (159,088) (155,249) PIS/COFINS over financial income (84,404) (21,926) (39,154) Other financial expenses 19,614 (142,296) (102,450) (2,272,238) (2,742,251) (3,282,965) Inflation adjustment and exchange differences, net Inflation adjustments, net (1,035) (10,556) 7,865 Exchange rates, net (532,883) (5,665) 921,310 Exchange gain (losses) on derivatives (1) (229) (812,227) (533,919) (16,450) 116,948 Financial income (expenses), net (1,495,643) (2,463,627) (2,522,427) Statement of gains and (losses) on derivative transactions Future Dollar (805,760) Dollar - to - euro swap (1) (229) (6,467) (1) (229) (812,227) Swap Pré x CDI (299) Swap CDI x Pré (63) Future DI 28,503 5,829 28,503 5,467 (1) 28,274 (806,760) (1) Refers mainly to the monetary adjustment of the recognition of the non-inclusion of ICMS in the PIS and COFINS calculation basis of prior years in the amount of R$ 1,106,097, see note 8. |
26. SEGMENT INFORMATION
26. SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segment Information | |
SEGMENT INFORMATION | According to the Group´s structure, the businesses are distributed and managed in five operating segments as follows: · Steel The Steel Segment consolidates all the operations related to the production, distribution and sale of flat steel, long steel, metallic containers and galvanized steel, with operations in Brazil, United States, Portugal and Germany. The Segment supplies the following markets: construction, steel containers for the Brazilian chemical and food industries, home appliances, automobile and OEM (motors and compressors). The Company’s steel units produce hot and cold rolled steel, galvanized and pre-painted steel of great durability. They also produce tinplate, a raw material used to produce metallic containers. Overseas, Lusosider, which is based in Portugal, produces cold rolled steel and galvanized steel. CSN LLC in the U.S.A. meets local market needs, import and export of steel products. In January 2012, CSN acquired Stahlwerk Thüringen (SWT), a manufacturer of long steel located in Unterwellenborn, Germany. SWT is specialized in the production of shapes used for construction. In January 2014 the production of long steel products started in Brazil and consolidates the company as a source of complete construction solutions, complementing its portfolio of products with high value added in the steel chain. · Mining This segment encompasses the activities of iron ore and tin mining. The high quality iron ore operations are located in the Iron Quadrilateral in Minas Gerais, which has its own mines and sells third party iron ore. At the end of 2015, CSN and the Asian Consortium formalized a shareholders' agreement for the combination of assets linked to iron ore operations and the related logistics structure, forming a new company that has focused in mining of the Group activities from December 2015. In this context, the new company, currently named CSN Mineração S.A., holds the TECAR arraignment, the Casa de Pedra mine and all the shares of Namisa, which was incorporated on December 31, 2015. CSN still owns 100% of Minérios Nacional which includes the mines of Fernandinho (operational), Cayman and Pedras Pretas (mineral resources), all located in Minas Gerais. Moreover, CSN controls the Estanho de Rondônia S.A., company with mining units and tin casting, in the state of Rondonia. · Logistics i. Railroad CSN has equity interests in three railroad companies: MRS Logística, which manages the former Southeast Network of Rede Ferroviária Federal S.A. (RFFSA), Transnordestina Logística S.A. and FTL - Ferrovia Transnordestina Logística S.A., which has the concession to operate the former Northeast Network of the RFFSA in the states of Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco and Alagoas. a) MRS The railroad transportation services provided by MRS are fundamental to the supply of raw materials and the shipment of final products. The total amount of iron ore, coal and coke consumed by the Presidente Vargas Mill as well as part of the steel produced by CSN for the domestic market and for export are carried by MRS. The Southeast Brazilian railroad system, encompassing 1,674 kilometers of tracks, serves the tri-state industrial area of São Paulo-Rio de Janeiro-Minas Gerais, in the southeast region, linking the mines located in Minas Gerais to the ports located in São Paulo and Rio de Janeiro, and the steel mills of CSN, Companhia Siderúrgica Paulista, or Cosipa, and Gerdau Açominas. Besides serving other customers, the railroad system carries iron ore from the Company’s mines in Casa de Pedra, Minas Gerais, and coke and coal from the Itaguaí Port, in Rio de Janeiro, to Volta Redonda, and carries CSN’s export products to the ports of Itaguaí and Rio de Janeiro. b) TLSA and FTL TLSA and FTL hold the concession of the former RFFSA’s Northeast Network. The Northeast Network totals 4,238 km, divided into two sections: i) Network I, which comprises the São Luiz–Mucuripe, Arrojado–Recife, Itabaiana–Cabedelo, Paula Cavalcante–Macau, and Propriá–Jorge Lins (Network I); and ii) Network II, which comprises the Missão Velha–Salgueiro, Salgueiro–Trindade, Trindade– Eliseu Martins, Salgueiro–Porto de Suape, and Missão Velha–Porto de Pecém sections. The Network links up with the main ports in the region, offering an important competitive advantage by means of opportunities for combined transportation solutions and logistics projects tailored to customer needs. II. Port Logistics The Port Logistics Segment consolidates the operation of the terminal built in the privatization period after the law of modernization of the ports (law 8.630/1993) that permits to transfer the port logistics activities to the private sector. The Sepetiba terminal features complete infrastructure to meet all the needs of exporters, importers and ship owners. Its installed capacity exceeds that of most other Brazilian terminals. It has mooring berths and a huge storage area, as well as the most modern and appropriate equipment, systems and intermodal connections. · Energy CSN is one of the largest industrial consumers of electric power in Brazil. As energy is fundamental in its production process, the Company invests in assets for generation of electric power to guarantee its self-sufficiency. These assets are as follows: Itá hydroelectric power plant, in the State of Santa Catarina, with rated capacity of 1,450 MW, where CSN has a share of 29.5%; Igarapava hydroelectric power plant, Minas Gerais, with rated capacity of 210 MW, in which CSN holds 17.9% of the capital; and a thermoelectric co-generation Central unit with rated capacity of 238 MW, which has been operating at the UPV since 1999, that uses the residual gases produced by the steel mill itself. · Cement The cement division consolidates the cement production, distribution and sale operations, which use the slag produced by the Volta Redonda plant’s blast furnaces. In the second half of 2016, the Company started the operation of a new clinker furnace in Arcos/MG, where the Company already operates a clinker furnace using its limestone of a company-owned mine and also two cement mills in additions to the mills that already operate in Volta Redonda/RJ. The information presented to Management regarding the performance of each business segment is generally derived directly from the accounting records, combined with some intercompany allocations. · Sales by geographic area Sales by geographic area are determined based on the customers’ location. On a consolidated basis, domestic sales are represented by revenues from customers located in Brazil and export sales are represented by revenues from customers located abroad. · Result by Segment Beginning 2013, the Company no longer proportionately consolidates joint ventures MRS and CBSI. For segment information preparation and presentation purposes, Management decided to maintain the proportionate consolidation of the joint ventures, as historically presented. For consolidated profit reconciliation purposes, the amounts of these companies were eliminated in the column “Corporate expenses/elimination”. 12/31/2018 P&L Steel Mining Logistics Energy Cement Corporate expenses/elimination Consolidated Port Railroads Metric tons (thou.) (*) (unaudited) 5,068,758 34,780,756 (4,961,345) Net revenues Domestic market 10,328,372 972,360 266,378 1,506,114 410,606 588,230 (2,718,623) 11,353,437 Foreign market 5,305,771 5,012,421 1,297,256 11,615,448 Total net revenue (note 22) 15,634,143 5,984,781 266,378 1,506,114 410,606 588,230 (1,421,367) 22,968,885 Cost of sales and services (12,613,216) (3,585,691) (189,999) (1,049,071) (286,734) (544,266) 2,163,320 (16,105,657) Gross profit 3,020,927 2,399,090 76,379 457,043 123,872 43,964 741,953 6,863,228 General and administrative expenses (984,980) (144,754) (35,423) (106,412) (27,948) (95,893) (1,362,301) (2,757,711) Depreciation (note 23) 609,274 366,547 20,368 258,985 17,285 115,411 (212,763) 1,175,107 Proportionate EBITDA of joint ventures 568,045 568,045 Adjusted EBITDA 2,645,221 2,620,883 61,324 609,616 113,209 63,482 (265,066) 5,848,669 Sales by geographic area Asia 40,681 4,422,377 1,297,256 5,760,314 North America 1,506,041 1,506,041 Latin America 369,830 369,830 Europe 3,330,991 590,044 3,921,035 Others 58,228 58,228 Foreign market 5,305,771 5,012,421 1,297,256 11,615,448 Domestic market 10,328,372 972,360 266,378 1,506,114 410,606 588,230 (2,718,623) 11,353,437 Total 15,634,143 5,984,781 266,378 1,506,114 410,606 588,230 (1,421,367) 22,968,885 12/31/2017 P&L Steel Mining Logistics Energy Cement Corporate expenses/elimination Consolidated Port Railroads Metric tons (thou.) (*) (unaudited) 4,921,719 32,576,843 (5,359,571) Net revenues Domestic market 7,818,552 829,268 238,240 1,416,612 407,671 487,129 (2,491,006) 8,706,466 Foreign market 5,140,471 3,791,703 885,961 9,818,135 Total net revenue (note 22) 12,959,023 4,620,971 238,240 1,416,612 407,671 487,129 (1,605,045) 18,524,601 Cost of sales and services (10,537,547) (3,005,840) (156,997) (1,024,696) (285,085) (512,762) 1,926,786 (13,596,141) Gross profit 2,421,476 1,615,131 81,243 391,916 122,586 (25,633) 321,741 4,928,460 General and administrative expenses (963,822) (158,958) (27,943) (94,921) (27,098) (80,823) (877,383) (2,230,948) Depreciation (note 23) 658,587 490,805 15,752 294,571 17,265 121,801 (190,016) 1,408,765 Proportionate EBITDA of joint ventures 538,170 538,170 Adjusted EBITDA 2,116,241 1,946,978 69,052 591,566 112,753 15,345 (207,488) 4,644,447 Sales by geographic area Asia 23,364 3,592,226 885,961 4,501,551 North America 2,009,337 2,009,337 Latin America 506,951 506,951 Europe 2,564,823 197,701 2,762,524 Others 35,996 1,776 37,772 Foreign market 5,140,471 3,791,703 885,961 9,818,135 Domestic market 7,818,552 829,268 238,240 1,416,612 407,671 487,129 (2,491,006) 8,706,466 Total 12,959,023 4,620,971 238,240 1,416,612 407,671 487,129 (1,605,045) 18,524,601 12/31/2016 P&L Steel Mining Logistics Energy Cement Corporate expenses/elimination Consolidated Port Railroads Metric tons (Thou) (*) (unaudited) 4,857,174 36,983,297 (4,062,774) Net revenues Domestic market 6,980,087 542,028 207,722 1,319,907 269,095 490,608 (2,079,534) 7,729,913 Foreign market 4,535,821 4,039,875 843,340 9,419,036 Total Net Revenue (note 22) 11,515,908 4,581,903 207,722 1,319,907 269,095 490,608 (1,236,194) 17,148,949 Cost of sales and services (9,393,237) (3,099,236) (141,542) (914,361) (195,994) (467,373) 1,571,701 (12,640,042) Gross profit 2,122,671 1,482,667 66,180 405,546 73,101 23,235 335,507 4,508,907 General and administrative expenses (914,927) (185,149) (25,180) (83,020) (25,196) (74,528) (907,128) (2,215,128) Depreciation (note 23) 679,074 461,287 13,430 227,792 17,140 73,030 (192,937) 1,278,816 Proportionate EBITDA of joint ventures 502,345 502,345 Adjusted EBITDA 1,886,818 1,758,805 54,430 550,318 65,045 21,737 (262,213) 4,074,940 Sales by geographic area Asia 30,815 3,519,713 843,340 4,393,868 North America 1,891,865 1,891,865 Latin America 259,640 259,640 Europe 2,324,580 434,378 2,758,958 Others 28,921 85,784 114,705 Foreign market 4,535,821 4,039,875 843,340 9,419,036 Domestic market 6,980,087 542,028 207,722 1,319,907 269,095 490,608 (2,079,534) 7,729,913 Total 11,515,908 4,581,903 207,722 1,319,907 269,095 490,608 (1,236,194) 17,148,949 (*) The ore sales volumes presented in this note take into consideration Company sales and the interest in its subsidiaries and joint ventures. · Adjusted EBITDA Adjusted EBITDA is the main measurement based on which the chief operating decision maker assesses the segment performance and the capacity to generate recurring operating cash, consisting of profit for the year less net financial income (expenses), income tax and social contribution, depreciation and amortization, equity in results of affiliated companies, results of discontinued operations and other operating income (expenses), plus the proportionate EBITDA of joint ventures. Even though it is an indicator used in segment performance measurement, EBITDA is not a measurement recognized by accounting practices adopted in Brazil or IFRS, it does not have a standard definition, and may not be comparable with measurements using similar names provided by other entities. As required by IFRS 8, the table below shows the reconciliation of the measurement used by the chief operating decision maker with the results determined using the accounting practices: 12/31/2018 12/31/2017 12/31/2016 Net income / (loss) for the year 5,200,583 111,229 (853,058) Result from discontinued operations 9,561 Depreciation / amortization / depletion (note 23) 1,175,107 1,408,765 1,278,816 Income tax and social contribution (note 15) 250,334 409,109 266,546 Financial income / (expenses) (note 25) 1,495,643 2,463,627 2,522,427 EBITDA 8,121,667 4,392,730 3,224,292 Other operating (income) / expenses (note 24) (2,705,337) (177,342) 413,221 Equity in results of affiliated companies (135,706) (109,111) (64,918) Proportionate EBITDA of joint ventures 568,045 538,170 502,345 Adjusted EBITDA (*) 5,848,669 4,644,447 4,074,940 (*) The Company discloses its adjusted EBITDA net of its share of investments and other operating income (expenses) because it understands that these should not be included in the calculation of recurring operating cash generation. |
27. EMPLOYEE BENEFITS
27. EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefits | |
EMPLOYEE BENEFITS | The pension plans granted by the Company cover substantially all employees. The plans are administered by Caixa Beneficente dos Empregados da CSN (‘CBS”), a private non-profit pension fund established in July 1960 which has as members the employees (and former employees) of the Company and some subsidiaries who joined the fund through an agreement, and the employees of CBS itself. The Executive Officers of CBS is formed by a CEO and two other executive officers, all appointed by CSN, which is the main sponsor of CBS. The Decision-Making Board is the higher decision-making and guideline-setting body of CBS, composed by the president and ten members, six chosen by CSN, and four elected by the fund’s participants. Until December 1995, CBS Previdência administered two defined benefit plans based on years of service, salary and Social Security benefits. On December 27, 1995 the then Private Pension Secretariat (“SPC”) approved the implementation of a new benefit plan, effective beginning that date, called Mixed Supplementary Benefit Plan (‘Mixed Plan”), structured in the form of a variable contribution plan that was discontinued on September 16, 2013. As of that date, all new employees must join the CBSPrev Plan, structured in the defined contribution modality, created also in September 2013. As of December 31, 2018 CBS had 34,985 participants (35,176 as of December 31, 2017), of whom 20,872 were active contributors (20,734 as of December 31, 2017), 13,454 were retired employees (13,587 as of December 31, 2017), and 659 were related beneficiaries (855 as of December 31, 2017). Out of the total participants as of December 31, 2018, 11,063 belonged to the defined benefit plan, 11,845 to the mixed plan, 1,028 to the CBSPrev Namisa plan, and 11,049 to the CBSPrev plan. The plan assets of CBS are primarily invested in repurchase agreements (backed by federal government securities), federal government securities indexed to inflation, shares, loans and real estate. As of December 31, 2018, CBS held 37,084,031 common shares of CSN (20,143,031 as of December 31,2017). The total plan assets of the entity amounted to R$5.3 billion as of December 31, 2018 (R$5.1 billion as of December 31, 2017). The administrators of the CBS funds seek to match plan assets with benefit obligations payable on a long-term basis. Pension funds in Brazil are subject to certain restrictions regarding their capacity for investment in foreign assets and, therefore, these funds invest mainly in Brazilian securities. Plan Assets are all available assets and the benefit plans’ investments, not including the amounts of debts to sponsors. For the defined benefit plans, called “35% of the average salary” and “average salary supplementation plan”, the Company holds a financial guarantee with CBS Previdência, the entity that administers said plans, to ensure their financial and actuarial balance, in the event of any future actuarial loss or actuarial gain. As provided for in the prevailing law that governs the pension fund market, for the last 4 years ended (2015, 2016, 2017 and 2018), CSN did not have to pay the installments because the defined benefit plans posted actuarial gains for the period. 27.a) Description of the pension plans Plan covering 35% of the average salary This plan began on February 1, 1966 and is a defined benefit plan aimed at paying pensions (for length of service, special situations, disability or old age) on a lifetime basis, equivalent to 35% of the adjusted average of the participant’s salary for the last 12 months. The plan also guarantees sick pay to participants on Official Social Security leaves of absence and further ensures payments of savings fund, funeral allowance and pecuniary aid. This plan was discontinued on October 31, 1977 when took effect the average salary supplementation plan. Average salary supplementation plan This plan began on November 1, 1977 and is a defined benefit plan aimed at complementing the difference between the adjusted average of the participant’s salary for the last 12 months and the Official Social Security benefit for retirement, also on a lifetime basis. As in the 35% plan, there is coverage for the benefits of sick pay, death and pension. This plan was discontinued on December 26, 1995 with the creation of the mixed supplementary benefit plan. Mixed supplementary benefit plan This plan began on December 27, 1995 and is a variable contribution plan. Besides the scheduled retirement benefit, it also covers the payment of risk benefits (pension paid while the participant is still working, disability compensation and sick/accident pay). Under this plan, the retirement benefit is calculated based on the amount accumulated by the monthly contributions of the participants and sponsors, as well as on each participant’s option for the manner in which they receive them, which can be lifetime (with or without continuity of pension for death) or through a percentage applied to the balance of the benefit-generating fund (loss for indefinite period). After retirement is granted, the plan takes on the characteristics of a defined benefit plan if the participant has chosen to receive his benefit in the form of monthly income for life. This plan was discontinued on September 16, 2013 when the CBS Prev plan became effective. CBS Prev Plan The new CBS Prev Plan, which is a defined contribution plan, started on September 16, 2013. Under this plan, the retirement benefit is determined based on the accumulated amount by monthly contributions of participants and sponsors. To receive the benefit, each participant can opt for: (a) receiving part in cash (up to 25%) and the remaining balance through a monthly income through a percentage applied to the benefit-generating fund, not being applicable to death pension benefits, or (b) receive only a monthly income through a percentage applied to the benefit-generating fund. With the creation of the CBS Prev Plan, the mixed supplementary benefit plan was discontinued for the entry of new participants as from September 16, 2013. CBSPREV Namisa Plan It is a Defined Contribution plan with benefits of risks during the activity (projection of the balances in case of disability or death and sickness / accident allowanced). It has been in operation since January 6, 2012, when it was created exclusively for the employees of Nacional Minérios S.A. After the corporate reorganization, which took place in 2016, other Sponsors joined this Plan, among them CSN Mineração S.A. Under this plan, all the benefits offered are calculated based on the accumulated amount from the monthly contributions of participants and sponsors, and are paid through a percentage applied to the balance of the benefit generating fund. The CBSPREV Namisa Plan is closed since July 2017. 27.b) Investment policy The investment policy establishes the principles and guidelines that will govern the investments of funds entrusted to the entity, in order to foster the security, liquidity and profitability required to ensure equilibrium between the plan’s assets and liabilities based on an ALM (Asset Liability Management) study that takes into consideration the benefits of participants and beneficiaries for each plan. The investment plan is reviewed annually and approved by the Decision-Making Board considering a five-year horizon, as established by resolution CGPC 7 of December 4, 2003. The investment limits and criteria established in the policy are based on Resolution 3,792/09 published by the National Monetary Council (“CMN”). 27.c) Employee benefits The actuarial calculations are updated at the end of each annual reporting period by outside actuaries and presented in the financial statements pursuant to IAS19 - Employee Benefits. Consolidated 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Actuarial asset Actuarial liabilities Benefits of pension plans (99,894) (111,281) 7,982 41,937 Post-employment healthcare benefits - - 897,137 866,784 (99,894) (111,281) 905,119 908,721 The reconciliation of employee benefits’ assets and liabilities is as follows: 12/31/2018 12/31/2017 Present value of defined benefit obligation 3,087,433 3,077,849 Fair value of plan assets (3,403,906) (3,305,356) Deficit(Surplus) (316,473) (227,507) Restriction to actuarial assets due to recovery limitation 224,561 158,163 Liabilities (Assets), net (91,912) (69,344) Liabilities 7,982 41,937 Assets (99,894) (111,281) Net (assets) recognized in the balance sheet (91,912) (69,344) The movement in the present value of the defined benefit obligation during 2018 is as follows: 12/31/2018 12/31/2017 Present value of obligations at the beginning of the year 3,077,849 2,872,442 Cost of service 1,169 1,285 Interest cost 304,132 322,359 Benefits paid (280,493) (284,777) Actuarial loss/(gain) (15,224) 166,540 Present value of obligations at the end of the year 3,087,433 3,077,849 The movement in the fair value of the plan assets during 2018 is as follows: 12/31/2018 12/31/2017 Fair value of plan assets at the beginning of the year (3,305,356) (3,193,493) Interest income (327,830) (360,013) Benefits Paid 280,493 284,777 Return on plan assets (less interest income) (51,213) (36,627) Fair value of plan assets at the end of the year (3,403,906) (3,305,356) The amounts recognized in the income statement for the year ended December 31, 2018, 2017 and 2016 are comprised as follows: 12/31/2018 12/31/2017 12/31/2016 Cost of current service 1,169 1,285 1,244 Interest cost 304,132 322,359 311,361 Expected return on plan assets (327,830) (360,013) (345,521) Interest on the asset ceiling effect 16,340 26,843 22,189 (6,189) (9,526) (10,727) Total unrecognized costs (income) (*) - 6 7 Total costs / (income) recognized in the income statement (6,189) (9,532) (10,734) Total costs / (income), net (*) (6,189) (9.526) (10,727) (*) Effect of the limit of paragraph 58 (b) of IAS19 - Employee Benefits. The cost/(income) is recognized in the income statement in other operating expenses. The movement in the actuarial gains and losses in 2018, 2017 and 2016 are as follows: 12/31/2018 12/31/2017 12/31/2016 Actuarial losses and (gains) (15,224) 166,540 393,743 Return on plan assets (less interest income) (51,213) (36,627) (427,523) Change in the asset’s limit (excluding interest income) 50,058 (97,882) 41,796 (16,379) 32,031 8,016 Actuarial losses and (gains) recognized in other comprehensive income (16,379) 32,037 8,023 Unrecognized actuarial (gains) - (6) (7) Total cost of actuarial losses and (gains) (*) (16,379) 32,031 8,016 (*) Actuarial (gain)/ loss results from the fluctuation in the investments comprised in the CBS’s asset portfolio. Breakdown of actuarial gains or losses, according paragraph 141 of IAS19: 12/31/2018 Loss due to change in demographic assumptions (139,813) Loss due to change in financial assumptions 46,917 Loss due to experience adjustments 77,672 Return on plan assets (less interest income) (51,213) Change in asset limit (excluding interest income) 50,058 Actuarial losses and (gains) (16.379) The main actuarial assumptions used were as follows: 12/31/2018 12/31/2017 Actuarial financing method Projected unit credit Projected unit credit Functional currency Real (R$) Real (R$) Recognition of plan assets Fair value Fair value Nominal discount rate Millennium Plan: 9.69% 35%: 9.60% Supplementation: 9.59% Millennium Plan: 10.42% 35%: 10.30% Supplementation: 10.32% Inflation rate 4.75% 5.00% Nominal salary increase rate 5.80% 6.05% Nominal benefit increase rate 4.75% 5.00% Rate of return on investments Millennium Plan: 9.69% Millennium Plan: 10.42% Plan 35%: 9.60% Supplementation: 9.59% Plan 35%: 10.30% Supplementation: 10.32% General mortality table Millennium Plan: AT-2000 smoothed down by 10% segregated by gender. Plans 35%: AT-2000 Male aggravated by 15%. Supplementation: AT-2000 aggravated by 10% segregated by gender. Millennium Plan, Plans 35% and Supplementation of Average Salary: AT 2000 segregated by gender (10% smoothed) Disability table 35% Plan and Supplementation: Light Medium. Millenium Plan: Prudential (Ferr. Retirement) 35% Plan and Supplementation: Light Medium. Millenium Plan: Prudential (Ferr. Retirement) Disability mortality table Winklevoss - 1% Winklevoss - 1% Turnover table Millenium plan 5% per annum, zero for plans 35% and Supplementation. Millenium plan 5% per annum, zero for plans 35% and Supplementation. Retirement age 100% on the first date he/she becomes eligible for programmed retirement benefit under the plan 100% on the first date he/she becomes eligible for programmed retirement benefit under the plan Household composition of active participants 95% will be married at the time of retirement, with the wife being 4 years younger than the husband 95% will be married at the time of retirement, with the wife being 4 years younger than the husband The assumptions related to the mortality table are based on published statistics and mortality tables. These tables represent an average life expectancy in years of employees who retire at the age of 65, as shown below: Plan covering 35% of the average salary Average salary supplementation plan Mixed supplementary benefit plan (Milênio Plan) 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Longevity at age of 65 for current participants Male 18.00 21.00 18.74 20.45 21.00 21.00 Female 18.00 23.00 22.23 23.02 23.00 23.00 Longevity at age of 65 for current participants who are 40 Male 40.00 43.00 40.60 42.69 43.00 43.00 Female 40.00 47.00 45.37 46.29 47.00 47.00 Allocation of plan assets: 12/31/2018 12/31/2017 Variable income 141,705 4,16% 50,966 1,54% Fixed income 3,050,099 89,61% 3,085,783 93,36% Real estate 52,091 1,53% 44,083 1,33% Others 160,011 4,70% 124,524 3,77% Total 3,403,906 100,00% 3,305,356 100,00% Variable-income assets comprise mainly CSN shares. Fixed-income assets comprise mostly debentures, Interbank Deposit Certificates (“CDI”) and National Treasury Notes (“NTN-B”). Real estate refers to buildings appraised by a specialized asset appraisal firm. There are no assets in use by CSN and its subsidiaries. For the pension plan, the expense as of December 31, 2018 was R$40,199 (R$41,544 and R$ 35,798 as of December 31, 2017 and 2016, respectively). 27.d) Expected contributions No contributions are expected to be paid to the defined benefit plans in 2018. For the mixed supplementary benefit plan, contributions in the amount of R$24,923 are forecasted to be paid in 2018 for the portion of defined contribution and R$1,987 for the portion of defined benefit (risk benefit). 27.e) Sensitivity analysis The quantitative sensitivity analysis regarding the significant assumptions for the pension plans as of December 31, 2018 is as follows: 12/31/2018 Plan covering 35% of the average salary Average salary supplementation plan Mixed supplementary benefit plan (Milênio Plan) Assumption: Discount rate Sensitivity level 0.5% -0.5% 0.5% -0.5% 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 409 (458) 1,650 (1,897) (502) 316 Effect on present value of obligations (13,281) 15,342 (70,755) 76,222 (50,666) 54,396 Assumption: Salary growth Sensitivity level 0.5% -0.5% 0.5% -0.5% 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 252 (223) Effect on present value of obligations 2,028 (1,792) Assumption: Benefit adjustment Sensitivity level 0.5% -0.5% 0.5% -0.5% 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 1,439 (1,350) 7,578 (7,079) 5,720 (5,232) Effect on present value of obligations 14,685 (13,778) 79,305 (74,101) 57,166 (52,366) Assumption: Mortality table Sensitivity level 1.0% -1.0% 1.0% -1.0% 1.0% -1.0% Effect on current service cost and on interest on actuarial obligations (1,052) 1,054 (4,877) 4,845 (1,120) 1,128 Effect on present value of obligations (10,680) 10,706 (50,807) 50,468 (12,179) 12,165 The forecast benefit payments of the defined benefit plans for future years are as follows: Payments 2018 Year 1 244,606 Year 2 252,778 Year 3 269,332 Year 4 265,261 Year 5 271,570 Next 5 years 1,436,738 Total forecast payments 2,740,285 27.f) Post-employment health care plan Refers to a healthcare plan created on December 1, 1996 exclusively for former retired employees, pensioners, those who received an amnesty, war veterans, widows of employees who died as a result of on-the-job accidents and former employees who retired on or before March 20, 1997 and their dependents. Since then, the healthcare plan does not allow the inclusion of new beneficiaries. The plan is sponsored by CSN. The amounts recognized in the balance sheet were determined as follows: 12/31/2018 12/31/2017 Present value of obligations 897,137 866,784 Liabilities 897,137 866,784 The reconciliation of the healthcare liabilities is as follows: 12/31/2018 12/31/2017 Actuarial liability at the beginning of the year 866,784 691,262 Expenses recognized in income for the year 85,748 77,269 Sponsor's contributions transferred in prior year (71,632) (72,192) Recognition of actuarial loss/ (gain) 16,237 170,445 Actuarial liability at the end of the year 897,137 866,784 The actuarial gains and losses recognized in shareholders' equity are as follows: 12/31/2018 12/31/2017 12/31/2016 Actuarial gain /(loss) on obligation 16,237 170,445 210,257 Gain/(loss) recognized in shareholders' equity 16,237 170,445 210,257 The weighted average life expectancy based on the mortality table used to determined actuarial obligations is as follows: 12/31/2018 12/31/2017 Longevity at age of 65 for current participants Male 19.55 19.55 Female 22.17 22.17 Longevity at age of 65 for current participants who are 40 Male 41.59 41.59 Female 45.30 45.30 The actuarial assumptions used for calculating post-employment healthcare were: 12/31/2018 12/31/2017 Biometric and Demographic General mortality table AT 2000 segregated by gender AT 2000 segregated by gender Financial Actuarial nominal discount rate 9.62% 10.34% Inflation 4.75% 5.00% Real increase in medical costs based on age (Aging Factor) 0.5% - 3.00% real a.a. 0.5% - 3.00% real a.a. Nominal increase medical costs growth rate 8.15% 8.41% Average medical cost (Claim cost) 1,054.65 1,001.69 27.g) Sensitivity analysis The quantitative sensitivity analysis regarding the significant assumptions for the post-employment healthcare plans as of December 31, 2018 is as follows: 12/31/2018 Healthcare Plan Assumption: Discount rate Sensitivity level 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 909 (992) Effect on present value of obligations (35,530) 38,727 Assumption: Medical Inflation Sensitivity level 1.0% -1.0% Effect on current service cost and on interest on actuarial obligations 8,091 (6,925) Effect on present value of obligations 84,560 (72,369) Assumption: Mortality table Sensitivity level 1.0% -1.0% Effect on current service cost and on interest on actuarial obligations (2,161) 2,148 Effect on present value of obligations (22,582) 22,451 The forecast benefit payments of the postemployment healthcare plans for future years are as follows: Forecast benefit payments 2018 Year 1 78,100 Year 2 80,787 Year 3 83,232 Year 4 85,386 Year 5 87,224 Next 5 years 450,767 Total forecast payments 865,496 |
28. COMMITMENTS
28. COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Commitments | |
COMMITMENTS | 28.a) Take-or-pay contracts As of December 31, 2018 and 2017, the Company was a party to take-or-pay contracts as shown in the following table: Payments in the period Type of service 2017 2018 2019 2020 2021 After 2021 Total Transportation of iron ore, coal, coke, steel products, cement and mining products. 957,373 406,920 1,024,674 962,399 831,166 3,761,232 6,579,471 Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets, coal and clinquer. 563,743 658,166 453,801 40,780 8,419 503,000 Processing of furnace sludge and slag resulting from the production process of pig iron and steel. 8,880 9,467 7,074 7,074 7,074 8,842 30,064 Manufacturing, repair, recovery and production of ingot casting machine units. 52,103 21,533 7,968 3,246 3,246 5,952 20,412 1,582,099 1,096,086 1,493,517 1,013,499 849,905 3,776,026 7,132,947 28.b) Concession agreements Minimum future payments related to government concessions as of December 31, 2018 fall due according to the schedule set out in the following table: Company / Concession Type of service 2019 2020 2021 After 2021 Total FTL (Ferrovia Transnordestina Logística) 30 - year concession granted on December 31,1997, renewable for another 30 years, to develop public service and operating the railway system in northeastern Brazil.The northeastern railway system covers 4.238 Kilometers of railway network and operates in Maranhão, Piauí, Ceará, Paraíba, Pernambuco, Alagoas and Rio Grande do Norte. 9,396 9,396 9,396 50,895 79,083 CSN Mineração S.A. Concession to operate the TECAR a solid bulk terminal, one of the four terminals that make up the Port of Itaguai, located in Rio de Janeiro. The concession was renewed and the agreement expires in 2047. 133,021 133,021 133,021 3,458,541 3,857,604 Tecon 25-year concession started in July 2001. On May 10, 2017, was approved the Decree nº 9,048, which changes de concession extension period for port operations. It was established that the requested extension period, added to the initial period, cannot exceed 70 years 33,779 35,176 36,638 175,053 280,646 176,196 177,593 179,055 3,684,489 4,217,333 28.c) Projects and other commitments · Transnordestina project The Transnordestina project which corresponds to rail network II of the Northeast Railway System, includes building 1,753 km of new, next-generation, wide-gauge tracks. The project posts an evolution of 52% progress which was expected to completion for 2017, completion period currently under discussion with the responsible agencies. The Company expects that the investments will permit Transnordestina Logística S.A., the concessionaire that holds the Transnordestina project, to transport of several products, such as iron ore, limestone, soy, cotton, sugarcane, fertilizers, oil, and fuel. The concession will expire in 2057, and can be terminated before this date if the minimum return agreed with the Government is reached. Transnordestina has already obtained the required environmental permits, purchased part of the equipment, contracted some of the services, and in certain regions the project is at an advanced implementation stage. The sources of financing for the project are: (i) financing granted by Banco do Nordeste/ FNE and the BNDES, (ii) debentures issued by FDNE, (iii) Permanent Track Use contracts, and (iv) contribution of capital by CSN and public shareholders. The approved construction investment is R$7,542,000 and the balance of disbursable funds will be adjusted using the IPCA as from April 2012. Should additional funds be required, they will be provided by CSN and/or third parties under Permanent Track Use contracts. The budget to conclude the project is under review. Currently, the budget value is composed as follows: Missão Velha-Salgueiro: R$0.4 billion, Salgueiro-Trindade: R$0.7 billion, Trindade-Eliseu Martins: R$2.4 billion, Missão Velha-Porto de Pecém: R$3 billion, Salgueiro-Porto de Suape: R$4.7 billion, amounting R$ 11.2 billion. The Company guarantees 100% of TLSA’s financing granted by Banco do Nordeste/FNE and the BNDES, and 50.97% of the debentures issued by FDNE (includes the corporate guarantee of 48.47%, a collateral letter of 1.25% issued to BNB and the corporate guarantee of 1.25% pledged to BNB). Under the FDNE charter, approved by Federal Decree nº 6,952/2009, and the Investment Agreement entered into with the public shareholders/ financiers, up to 50% of the debentures maybe converted into TLSA shares. The Court of Auditors of the Union - TCU through a protective order issued in May 2016, regarding the case TC 012.179/2016, suspended new transfers of public resources to TLSA from Valec Engenharia, Construções e Ferrovias S.A., Fundo de Investimento do Nordeste – FINOR, Fundo Constitucional de Financiamento do Nordeste – FNE, Fundo de Desenvolvimento do Nordeste – FDNE, Banco Nacional de Desenvolvimento Econômico e Social – BNDES and BNDES Participações S.A.– BNDESPar. After filing an appeal against the protective order and providing the necessary explanations, in June 2016 the order issued by TCU was withdrawn unanimously by the members of this court, with the continuity of investments planned having been restored. By means of another protective order issued in January 2017, relating to the case TC 012.179/2016, the Court of Auditors of the Union suspended new transfers of public resources to TLSA by Valec Engenharia, Construções e Ferrovias S.A., Fundo de Investimento do Nordeste – FINOR, Fundo Constitucional de Financiamento do Nordeste – FNE, Fundo de Desenvolvimento do Nordeste – FDNE, Banco Nacional de Desenvolvimento Econômico e Social – BNDES and BNDES Participações S.A.– BNDESPar. The Company has provided the required clarifications to the TCU and has acted firmly in order that the decision can be repealed soon and the flow of investments planned can be restored. Despite of, ANTT, through Letter 20/2019 / GPFER / SUFER, dated January 21, 2019 and received by TLSA on February 1, 2019, informed the receipt of the review the executive projects of lots 7, 8 and 11 of the MVP section, however, disregarded the review of the projects for extemporaneous. The review of executive projects is essential for the completion of the regulatory budget, and the conclusion of this regulatory budget is a requirement for the TCU to reassess the blocking order of public funding. There is an administrative procedure with the ANTT (National Land Transportation Agency) which evaluates the regular compliance with the obligations of the Concession Agreement corresponding to System II by Concessionaire TLSA. ANTT’s technical area, in a unilateral opinion, understood that non-compliance with the contractual obligations by the Concessionaire is evidenced. The technical area’s opinion is under evaluation and, if the irregularity is proven, ANTT may open new process to apply the applicable penalties, among them, forfeiture. The procedure is in fact finding phase and until the moment there is no final decision on the merit. · FTL – Ferrovia Transnordestina Logística S.A. (Operational rail network) In relation to the rail network I, operates by Ferrovia Transnordestina Logística S.A.(“FTL”) - there is an administrative procedure before the National Agency for Land Transportation (“ANTT”) that analyzes the regular fulfillment of the obligations of the Concession Agreement by the Concessionaire FTL. In view of a unilateral analysis, ANTT informed that FTL would have failed to comply with the TAC (Conduct Adjustment Agreement) signed in 2013 as a result of the non-compliance with the production target for 2013. ANTT decided to file an administrative proceeding to investigate the non-compliance with the concession agreement and, if the irregularity is proved, it can apply the related penalties or recommend the declaration of obsolescence, and the proceeding is at the finding-of-facts stage and, so far, there is no final decision on the merit. |
29. INSURANCE
29. INSURANCE | 12 Months Ended |
Dec. 31, 2018 | |
Insurance | |
INSURANCE | Aiming to properly mitigate risk and in view of the nature of its operations, the Company and its subsidiaries have taken out several different types of insurance policies. Such policies are contracted in line with the CSN Risk Management policy and are similar to the insurance taken out by other companies operating in the same lines of business as CSN and its subsidiaries. The risks covered under such policies include the following: Domestic Transportation, International Transportation, Life and Casualty, Health Coverage, Fleet Vehicles, D&O (Civil Liability Insurance for Directors and Officers), General Civil Liability, Engineering Risks, naming Risks, Export Credit, warranty and Port Operator’s Civil Liability. In 2017, after negotiation with insurers and reinsurers in Brazil and abroad, an insurance policy was issued for the contracting of a policy of Operational Risk of Property Damages and Loss of Profits, with effect from September 30, 2017 to March 31, 2019. Under the insurance policy, the maximum limit of indemnity is US$600 million and deductibles in the amount of US$385 million for material damages and 45 days for loss of profits and covers the following Company’s units and subsidiaries: Presidente Vargas Steelworks, CSN Mineração and Sepetiba Tecon. Management understands that the policies covers its assets and the risks to which the Company is subject. In view of their nature, the risk assumptions adopted are not part of the scope of an audit of the financial statements and, accordingly, were not audited by our independent auditors. |
30. ADDITIONAL INFORMATION TO C
30. ADDITIONAL INFORMATION TO CASH FLOWS | 12 Months Ended |
Dec. 31, 2018 | |
Additional Information To Cash Flows | |
ADDITIONAL INFORMATION TO CASH FLOWS | The following table provides additional information on transactions related to the statement of cash flows: Consolidated 12/31/2018 12/31/2017 12/31/2016 Income tax and social contribution paid 336,962 268,847 456,227 Addition to PP&E with interest capitalization (note 10 and 25) 71,611 91,957 215,794 Acquisition of fixed assets through loans 10,792 4,265 7,437 Non-monetary transaction with joint venture 20,264 419,365 385,333 679,458 |
31. EVENTS AFTER THE REPORTING
31. EVENTS AFTER THE REPORTING PERIOD | 12 Months Ended |
Dec. 31, 2018 | |
Events After Reporting Period | |
EVENTS AFTER THE REPORTING PERIOD | Debentures · Tenth issue In December 2018, the Company authorized the issuance of 2,000 debentures, in a single series, with collateral and non-convertible debentures, at a par value of R$ 1, with interest of 126.80% p.a of CDI, with final maturity in December of 2023 and with options for early redemption and optional acquisition, with financial settlement completed on February 1, 2019, totaling R$ 1,950,000, equivalent to 1,950 debentures effectively subscribed. The proceeds were allocated to (i) the total liquidation and partial amortization of certain Bank Credit Notes entered into with Caixa Econômica Federal (CEF) and (ii) the ordinary management of the Company's business. · Prepayment agreement – Sale of iron ore In February 20, 2019, the Company has concluded negotiations for the supply of iron ore to Swiss trader Glencore International AG (“Glencore”). The transaction involves a prepayment to CSN Mineração in the amount of US$ 500,000,000.00 related to an iron ore supply contract of approximately 22 million tons over 5 years. After certain precedent conditions have been met, the disbursement occurred on March 29, 2019. · Loan agreement In addition, a loan agreement has been entered into on 15 February 2019 with the Commerzbank Aktiengesellschaft for an amount of EUR 70 million, replacing the current loan agreement. |
2. SUMMARY OF SIGNIFICANT ACC_2
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies Policies Abstract | |
Basis of preparation and declaration of conformity | The consolidated financial statements have been prepared and are being presented in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (IASB) and includes all of the relevant information of the financial statements. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. It is disclosed in the notes to this report all subjects involving a high degree of judgment or complexity, or when assumptions and estimates are significant to the consolidated financial statements, those subjects are related to the allowance for doubtful debts, provision for inventory losses, provision for labor, civil, tax, environmental and social security contingences, depreciation, amortization, depletion, provision for impairment, deferred taxes, financial instruments and employee benefits. Actual results may differ from these estimates. The financial statements are presented in thousands of Brazilian reais (R$). Depending on the applicable IFRS standard, the measurement criteria used in preparing the financial statements considers the historical cost, net realizable value, fair value or recoverable amount. When the IFRS allows us and option between acquisition cost and other measurement criteria, the acquisition cost was the criteria used. The consolidated financial statements were approved by the Board of Directors on April 4, 2019. |
Consolidated financial statements | The accounting policies have been consistently applied to all consolidated companies. The consolidated financial statements for the years ended December 31, 2018 and 2017 include the following direct and indirect subsidiaries, joint ventures and joint operations, as well as the exclusive funds, as follows: Equity interests (%) Companies 12/31/2018 12/31/2017 Core business Direct interest in subsidiaries: full consolidation CSN Islands VII Corp. 100.00 100.00 Financial transactions CSN Islands XI Corp. 100.00 100.00 Financial transactions CSN Islands XII Corp. 100.00 100.00 Financial transactions CSN Minerals S.L.U. (1) 100.00 Equity interests CSN Export Europe, S.L.U. (1) 100.00 Financial transactions and Equity interests CSN Metals S.L.U. (1) 100.00 Equity interests and Financial transactions CSN Americas S.L.U. (1) 100.00 Equity interests and Financial transactions CSN Steel S.L.U. 100.00 100.00 Equity interests and Financial transactions TdBB S.A (*) 100.00 100.00 Equity interests Sepetiba Tecon S.A. 99.99 99.99 Port services Minérios Nacional S.A. 99.99 99.99 Mining and Equity interests Companhia Florestal do Brasil 99.99 99.99 Reforestation Estanho de Rondônia S.A. 99.99 99.99 Tin Mining Companhia Metalúrgica Prada 99.99 99.99 Manufacture of containers and distribution of steel products CSN Gestão de Recursos Financeiros Ltda. (*) 99.99 99.99 Management of funds and securities portfolio CSN Mineração S.A. 87.52 87.52 Mining and Equity interests CSN Energia S.A. 99.99 99.99 Sale of electric power FTL - Ferrovia Transnordestina Logística S.A. 91.69 90.78 Railroad logistics Nordeste Logística S.A. 99.99 99.99 Port services Aceros México CSN (2) 0.08 Commercial representation, sales of steel and related activities CSN Inova Ltd.(3) 100.00 Advisory and implementation of new development projects Indirect interest in subsidiaries: full consolidation Companhia Siderúrgica Nacional (4) 100.00 Steel Lusosider Projectos Siderúrgicos S.A. 100.00 99.94 Equity interests and product sales Lusosider Aços Planos, S. A. 99.99 99.99 Steel and Equity interests CSN Resources S.A. 100.00 100.00 Financial transactions and Equity interests Companhia Brasileira de Latas 99.00 99.99 Sale of cans and containers in general and Equity interests Companhia de Embalagens Metálicas - MMSA 99.67 99.67 Production and sale of cans and related activities Companhia de Embalagens Metálicas - MTM 99.67 99.67 Production and sale of cans and related activities CSN Steel Holdings 1, S.L.U. 100.00 100.00 Financial transactions, product sales and Equity interests CSN Productos Siderúrgicos S.L. 100.00 100.00 Financial transactions, product sales and Equity interests Stalhwerk Thüringen GmbH 100.00 100.00 Production and sale of long steel and related activities CSN Steel Sections UK Limited (*) 100.00 100.00 Sale of long steel CSN Steel Sections Polska Sp.Z.o.o 100.00 100.00 Financial transactions, product sales and Equity interests CSN Asia Limited 100.00 100.00 Commercial representation CSN Mining Holding, S.L 87.52 87.52 Financial transactions, product sales and Equity interests CSN Mining GmbH 87.52 87.52 Financial transactions, product sales and Equity interests CSN Mining Asia Limited 87.52 87.52 Commercial representation Aceros México CSN (2) 99.92 100.00 Commercial representation, sale of steel and related activities Lusosider Ibérica S.A 100.00 99.94 Steel, commercial and industrial activities and equity interests CSN Mining Portugal, Unipessoal Lda. 87.52 87.52 Commercial and representation of products Companhia Siderúrgica Nacional, LLC (4) 100.00 Import and distribution/resale of products Direct interest in joint operations Itá Energética S.A. 48.75 48.75 Electric power generation Consórcio da Usina Hidrelétrica de Igarapava 17.92 17.92 Electric power consortium Direct interest in joint ventures MRS Logística S.A. 18.64 18.64 Railroad transportation Aceros Del Orinoco S.A. 31.82 31.82 Dormant company CBSI - Companhia Brasileira de Serviços de Infraestrutura 50.00 50.00 Equity interests and product sales and iron ore Transnordestina Logística S.A. 46.30 46.30 Railroad logistics Indirect interest in joint ventures MRS Logística S.A. 16.30 16.30 Railroad transportation Direct interest in associates Arvedi Metalfer do Brasil S.A. 20.00 20.00 Metallurgy and Equity interests (*) They are Dormant Companies therefore they do not appear in the note 9.a, where is disclosed business information under the equity method and fair value through profit or loss and comprehensive income. · Events in 2018: (1) On February 6, 2018, the Spanish commercial registry recognized the merger by absorption of the companies by CSN Steel, S.L.U., the date from which the companies were considered legally extinct, before third parties and for the purposes of commercial law, the merger is retroactive to the date of December 28, 2017; (2) Transfer of 1% stake in Aceros Mexico CSN from CSN Steel to Companhia Siderúrgica Nacional occurred on February 1, 2018. On September 18, 2018, CSN Steel increased the capital of Aceros Mexico CSN, diluting the direct interest of Companhia Siderúrgica Nacional to 0.08%, with CSN Steel holding 99.92%. On February 1, 2019, the Federal Taxpayers' Registry was canceled and, therefore, the settlement process of Aceros Mexico CSN was terminated, however, before third parties and for the purposes of commercial law, the settlement was retroactive to September 18, 2018; (3) Company incorporated in 2018. (4) On June 5, 2018 CSN LLC had its corporate name changed to "Heartland Steel Processing, LLC". On the same date, a new company was incorporated under the name "Companhia Siderúrgica Nacional, LLC", a wholly owned subsidiary of Heartland Steel Processing, LLC. On June 28, 2018, Companhia Siderúrgica Nacional, LLC., became a wholly-owned subsidiary of CSN Steel and, on June 29, 2018, Heartland Steel Processing, LLC was sold to Steel Dynamics, Inc. The remaining assets are registered at Companhia Siderúrgica Nacional, LLC, a subsidiary of CSN Steel (see note 3). · Exclusive funds Equity interests (%) Exclusive funds 12/31/2018 12/31/2017 Core business Direct interest: full consolidation Diplic II - Private credit balanced mutual fund 100.00 100.00 Investment fund Caixa Vértice - Private credit balanced mutual fund 100.00 100.00 Investment fund VR1 - Private credit balanced mutual fund 100.00 100.00 Investment fund In preparing the consolidated financial statements, we have adopted the following consolidation procedures: · Transactions between subsidiaries, associates, joint ventures and joint operations Unrealized gains on transactions with subsidiaries, joint ventures and associates are eliminated to the extent of CSN’s equity interests in the related entity by the consolidation process. Unrealized losses are eliminated in the same manner as unrealized gains, although only to the extent that there are not indications of impairment. The Company eliminates the effect on profit or loss of transactions carried out with joint ventures and, as a result, reclassifies part of the equity in results of joint ventures to financial expenses, cost of sales and income tax and social contribution. The base date to the financial statements of the subsidiaries and joint ventures is the same as of the Company, and their accounting policies are also in line with the policies adopted by the CSN. Subsidiaries Subsidiaries are all entities (including special purpose entities) which financial and operating policies can be conducted by the Company and when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to use its power to affect its returns. The existence and effect of potential voting rights that are actually exercisable or convertible are taken into consideration when assessing whether the Company controls another entity. Subsidiaries are fully consolidated from the date when the control is transferred to the Company and are deconsolidated from the date when such control ceases. Joint ventures and joint operations Joint arrangements are all entities over which the Company has joint control with one or more other parties. The investments in joint arrangements are classified as joint operations or joint ventures depending on the contractual rights and obligations of each investor. Joint operations are accounted for in the financial statements in order to represent the Company's contractual rights and obligations. Therefore, the assets, liabilities, revenues and expenses related to its interests in joint operations are accounted for individually in the financial statements. Joint ventures are accounted for under the equity method and are not consolidated. The Company eliminates the effect on profit or loss of transactions carried out with joint ventures and, as a result, eliminates part of the equity in results of joint ventures to financial expenses, cost of sales, net sales and income tax and social contribution. Associates Associates are all entities over which the Company has significant influence but not control, generally through a shareholding percentage from 20% up to 50% of the voting rights. Investments in associates are accounted for under the equity method and are initially recognized at cost. · Transactions and non-controlling interests The Company treats transactions with non-controlling interests as transactions with owners of the Company. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of subsidiary net assets is recorded in shareholders' equity. Gains and losses on disposals to non-controlling interests are also recognized directly in shareholders' equity. When the Company no longer holds control, any retained interest in the entity is remeasured to its fair value, with the change in the carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest in an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Company had disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. |
Foreign currencies | i. Functional and presentation currency Items included in the financial statements are related to each one of the Company's subsidiaries are measured using the currency of the primary economic environment in which the subsidiary operates (“functional currency”). The consolidated financial statements are presented in Brazilian reais (R$), which is the Company’s functional currency and the Group’s presentation currency. ii. Transactions and balances According to IAS 21 – The effects of changes in foreign exchange rates, transactions in foreign currencies are translated into the functional currency using the exchange rates in effect at the dates of the transactions or valuations when their values are remeasured. Foreign exchange gains and losses resulting from the settlement of those transactions and from the translation at exchange rates in effect as of December 31, 2018 related to monetary assets and liabilities denominated in foreign currencies are recognized in the income statement, except when they are recognized in shareholders' equity as a result of foreign operation characterized as foreign investment. According to IAS 21 and IFRIC 22 – foreign currency transactions and advance consideration, the transactions in which the Company recognizes a non-monetary asset or non-monetary liability involving prepayments or receipts in foreign currency are recorded at the exchange rate of the date the entity initially recognized (transaction date) the non-monetary asset or non-current liability monetary. The balances of assets and liabilities are translated by exchange rates prevailing at the end of the reporting period. As of December 31, 2018, US$1 is equal to R$3.8748 (R$3.3080 at December 31, 2017) and €1 is equal to R$4.4390 (R$3.9693 at December 31, 2017), according to the rates obtained from Central Bank of Brazil website. All other foreign exchange gains and losses, including foreign exchange gains and losses related to borrowings and cash and cash equivalents, are presented in the income statement as financial income or expenses. iii. Group companies The results and financial position of all the Group’s entities (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: · The assets and liabilities of each balance sheet presented are translated by exchange rate at the end of the reporting period; · The income and expenses of each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates at the transaction dates, in which case income and expenses are translated at the rate in effect at the transaction dates); · All resulting exchange differences are recognized as a separate component in other comprehensive income; and · Gains and losses accumulated in shareholders' equity are included in the income statement when the foreign operation is partially disposed or sold. |
Cash and cash equivalents | Cash and cash equivalents include cash on hand, in bank accounts and other short-term highly liquid investments redeemable within 90 days from the end of the reporting period, readily convertible into a known amount of cash and subject to an insignificant risk of change in value. Bank certificates of deposit and government securities that do not meet the above criteria are not considered cash equivalents and are classified as financial investments, according to note 5. |
Trade receivables | Trade receivables are initially recognized at fair value, including the related taxes and expenses, being foreign currency-denominated trade receivables are adjusted at the exchange rate in effect at the end of the reporting period. The accounts receivable with a receipt period of more than 90 days are subject to a present value adjustment and analysis regarding the operation. With the adoption of the new IFRS 9 - Financial instruments, the Company started to apply the new model of expected losses, where it considers all possible loss events over the life of its receivables. These expected credit losses are estimated according to the loss rate by maturity range adopted by the Company since the initial (recognition) date of the asset. The Company considers customer history, default rate, financial situation and the position of its legal advisors to estimate the expected credit losses. |
Inventories | Inventories are carried at the lower of cost and net realizable value. Cost is determined using the weighted average cost method on the acquisition of raw materials. The costs of finished goods and work in process comprise raw materials, labor and other direct costs (based on the normal production capacity). Net realizable value represents the estimated selling price in the normal course of business, less estimated costs of completion and costs necessary to make the sale. The allowance for estimated losses on slow-moving or obsolete inventories are recognized when considered necessary. Stockpiled ore inventories are accounted for as processed when removed from the mine. The cost of finished goods comprises all direct costs necessary to transform stockpiled inventories into finished goods. |
Investments | Investments in subsidiaries, joint ventures and associates are accounted for under the equity method of accounting and are initially recognized at cost. The gains or losses are recognized in profit or loss as operating income (or expenses). In the case of foreign exchange differences arising on translating foreign investments that have a functional currency different from the Company’s, changes in investments due exclusively to foreign exchange differences, as well as adjustments to pension plans and investments that impact the subsidiaries’ shareholders' equity, are recognized in line item “Cumulative translation adjustments”, in the Company’s shareholders' equity, and are only recognized in profit or loss when the investment is disposed or written off due to impairment loss. Other investments are recognized at cost or fair value. When necessary, the accounting policies of subsidiaries, joint ventures and associates are changed to ensure consistency with the policies adopted by the Company. |
Business combination | The acquisition method is used to account for on each business combination conducted by the Company. The consideration transferred by acquiring an entity is measured by the fair value of the assets transferred, liabilities incurred, and equity instruments issued by the Company. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement, where applicable. Acquisition-related costs are recognized in profit or loss for the year, as incurred. Identifiable assets acquired, and liabilities assumed in a business combination are initially measured at their fair values at the acquisition date. |
Property, plant and equipment | Property, plant and equipment are carried at cost of acquisition, formation or construction, less accumulated depreciation or depletion and any impairment loss. Depreciation is calculated under the straight-line method based on the remaining economic useful economic lives of assets, as mentioned in note 10. The depletion of mines is calculated based on the quantity of ore mined. Land is not depreciated since their useful life is considered indefinite. However, if the tangible assets are mine-specific, that is, used in the mining activity, they are depreciated over the shorter between the normal useful lives of such assets and the useful life of the mine. The Company recognizes in the carrying amount of property, plant and equipment the cost of replacement, and consequently reducing the carrying amount of the part that is replaced if it is probable that future economic benefits embodied therein will revert to the Company, and if the cost of the asset can be reliably measured. All other disbursements are expensed as incurred. Borrowing costs related to funds obtained for construction in progress are capitalized until these projects are completed. If some components of property, plant and equipment have different useful lives, these components are accounted for in separate line items of property, plant and equipment. Gains and losses on disposal are determined by comparing the sale value less the residual value and are recognized in ‘Other operating income (expenses)’. Exploration expenditures are recognized as expenses until the viability of mining activities is established; after this period the subsequent development costs are capitalized. Exploration and valuation expenditures include: · Research and analysis of historical data related to area exploration; · Topographic, geological, geochemical and geophysical studies; · Determine the mineral asset’s volume and quality/grade; · Examine and test the extraction processes and methods; · Topographic surveys of transportation and infrastructure needs; · Market and financial studies; The development costs from new mineral deposits or from capacity expansion in mine operations are capitalized and amortized using the produced (extracted) units’ method based on the probable and proven ore quantities. The development stage includes: · Drillings to define the ore body; · Access and draining plans; · Advance removal of overburden (top soil and waste material removed prior to initial mining of the ore body) and waste material (non-economic material that is intermingled with the ore body). Stripping costs (the costs associated with the removal of overburden and other waste materials) incurred during the development of a mine, before production commences, they are capitalized as part of the depreciable cost of developing the property. Such costs are subsequently amortized over the useful life of the mine based on proven and probable reserves. Stripping costs in the production phase are included in the cost of the inventory produced, except when a specific extraction campaign is made to access deeper deposits where ore body is located. In these cases, costs are capitalized and taken to noncurrent assets when the mineral ore deposit is extracted and are amortized over the useful life of the ore body. The Company holds spare parts that will be used to replace parts of property, plant and equipment and that used to increase the asset’s useful life when it exceeds 12 months. These spare parts are classified in property, plant and equipment and not in inventories. |
Intangible assets | Intangible assets comprise assets acquired from third parties, including through business combinations. These assets are recognized at cost of acquisition or formation, less amortization calculated on a straight-line basis on the exploration or recovery periods estimated. Mineral rights acquired are classified in line item ‘’other assets’’ in intangible assets. Intangible assets with indefinite useful lives and goodwill based on expected future profitability are not amortized. · Goodwill Goodwill represents the positive difference between the amount paid and/or payable for the acquisition of a business and the net fair values of the acquiree´s assets and liabilities. Goodwill on acquisitions from business combination is recognized as intangible assets in the consolidated financial statements. The gain on purchase is recognized as a gain in profit for the period at the acquisition date. Goodwill is annually tested for impairment. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of a Cash-Generating Unit (CGU) include the carrying amount of goodwill related to the CGU sold. Goodwill is allocated to CGUs for impairment testing purposes. The allocation is made to CGUs or group of CGUs that are expected to benefit from the business combination in which the goodwill arose, and if that unit is not greater than the operating segment. · Software Software licenses purchased are capitalized based on the costs incurred to purchase the software and make it ready for use. These costs are amortized on a straight-line basis over the estimated useful lives in up to 10 years. |
Impairment of non-financial assets | Assets with infinite useful lives, such as goodwill, are not subject to amortization and are annually tested for impairment. Assets subject to amortization and/or depreciation, such as property, plant and equipment, are tested for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. An impairment loss is recognized at the amount at which the carrying amount of the asset exceeds its recoverable amount. The recoverable amount is the higher of the fair value of an asset less costs to sell and its value in use. For impairment testing purposes, assets are grouped at their lowest levels for which there are separately identifiable cash flows (Cash Generating Units, or CGUs). Non-financial assets, except for goodwill, are subsequently reviewed for possible reversal of the impairment at the reporting date. |
Employee benefits | i. Employee benefits Defined contribution plans A defined contribution plan is as a post-employment benefit plan whereby an entity pays fixed contributions to a separate entity (pension fund) and will not have any legal or constructive obligation to pay additional amounts. Obligations for contributions to defined contribution pension plans are recognized as employee benefit expenses in the periods during which services are provided by employees. Contributions paid in advance are recognized for an asset since it is agreed that either cash reimbursement or future reduction on payables will flow back to CSN. Contributions to a defined contribution plan that is expected to mature twelve (12) months after the end of the period in which the employee provides services are discounted to their present values. Defined benefit plans A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company’s net obligation regarding defined pension benefit plans is calculated individually for each plan by estimating the value of the future benefit that the employees accrue as return for services provided in the current period and in prior periods; such benefit is discounted to its present value. The discount rate is the yield presented at the end of the reporting period for top line debt securities whose maturity dates approximate the terms and conditions of the Company’s obligations and which are denominated in the same currency as the one in which it is expected that the benefits will be paid. The calculation is made annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit for the Company, the asset to be recognized is limited to the total amount of any unrecognized costs of past services and the present value of the economic benefits available in the form of future plan reimbursements or reduction in future contributions to the plan. The present value of economic benefits is calculated taking into account the funding requirements applicable to the Company’s plans. An economic benefit is available to the Company if it is realizable during the life of the plan or upon settlement of the plan’s liabilities. The Company and some of its subsidiaries offered a postretirement healthcare benefit to its employees. The right to these benefits is usually contingent to their remaining in employment until the retirement age and the completion of the minimum length of service. The expected costs of these benefits are accumulated during the employment period, and are calculated using the same accounting method used for defined benefit pension plans. These obligations are annually valued by qualified independent actuaries. When the benefits of a plan are increased, the portion of the increased benefit related to past services of employees is recognized in profit or loss until the benefits become vested. When benefits became vesting rights, all actuarial gains or losses are immediately recognized in profit or loss. The Company recognizes all actuarial gains or losses resulting from defined benefit plans immediately in other comprehensive income. If the plan is extinguished, actuarial gains and losses are recognized in profit or loss. ii. Profit sharing and bonus Employee profit sharing and executives’ variable compensation are linked to the achievement of operating and financial targets. The Company recognizes a liability and an expense substantially allocated to production cost and, where applicable, to general and administrative expenses when such goals are met. |
Provisions | Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation and it has reliable cost estimation. The amount recognized as a provision is the best value estimation required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). Success fees are accrued to the extent that they make it probable that disbursements will occur. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is probable that reimbursement will be received and that the amount of the receivable can be measured reliably. |
Concessions | The Company has governmental concessions to provide the following types of services: railway and port transportation managed by Company´s subsidiaries and joint-ventures. The concessions included in the consolidated financial statements are related to the rail network in the Northeast area, managed by the subsidiary FTL, the container terminal in Itaguaí, managed by the subsidiary Sepetiba Tecon and the port terminal TECAR for exporting ore and importing coal, which is managed by the subsidiary CSN Mineração. The Company´s concession contracts are not within the scope of IFRIC12 – Service Concession Arrangements, considering that the grantor (refers to the government) has effectively no control over what, to whom and at what price the services will be provided by the dealer (refers to the private part) to the customers. In essence, all concession contracts have operating leasing characteristics. Therefore, the accounting should follow the accounting rules applicable to leases, according IAS 17 - Leases. Our concession agreements provide for the use of a specific asset for an agreed period of time, but without any transfer of ownership to the Company or option to buy these assets after the completion of these contracts. Payments made under operating leases are recognized in the income statement on a straight-line basis over the period of the contracts. There are assets related to our concessions which are subject to reversion to the grantor at the end of the concession agreement. The residual carrying amounts of these assets on December 31, 2018 are listed below with an indication of their classification in our financial statements: Concession Net book value (R$) Classification in balance sheet Sepetiba Tecon S.A. (TECON) 347 million Fixed assets and intangible (Software) Tecar (CSN Mineração) 1,616 million Fixed assets and intangible (Software) FTL - Ferrovia Transnordestina Logística S.A. (FTL) 227 million Fixed assets Transnordestina logística S.A. (TLSA) 8,439 million (1) Investment (1) The amount of fixed and intangible assets is recognized in TLSA’s financial statements. The Company recognizes its interest in the assets under the equity method. |
Share capital | Common shares are classified in shareholders' equity. Incremental costs directly attributable to the issue of new shares or options are shown in shareholders' equity as a deduction to the amount received, net of taxes. When any Company of the Group buys Company shares (treasury shares), the amount paid, including any directly additional costs (net of income tax), is deducted from shareholders' equity attributable to owners of the Company until the shares are canceled or sold. When these shares are subsequently sold, any amount received, net of any directly attributable additional transaction costs and the related income tax and social contribution effects, is included in shareholders' equity attributable to owners of the Company. |
Revenue recognition | As of January 1, 2018, IFRS 15 was adopted by the Company, all assets are recorded according to the respective practice. Operating revenue from the sale of goods in the normal course of business is measured at the fair value of the consideration that the entity expects to receive in exchange for the delivery of the good or service promised to the client. Revenue recognition occurs when or as the entity satisfies a performance obligation by transferring the good or service to the customer, understanding that performance obligation is an enforceable promise in a contract with a customer for the transfer of a good / service or a series of goods or services. The transfer is considered to be effected when or as the customer obtains control of that asset. If it is probable that discounts will be granted and the value thereof can be reliably measured, then the discount is recognized as a reduction of the operating revenue as sales are recognized. Freight export services under the CFR (Cost and Freight) and CIF (Cost, Insurance and Freight) modalities, where the Company is responsible for the freight service, are considered separate services and therefore a separate obligation, with their allocation apart of the price of the transaction and with recognition of the service over time. Such revenue allocated to freight does not significantly affect the results of the Company's fiscal year and, therefore, it is not presented separately in the financial statements. For other services rendered, revenue is recognized based on its realization over time. |
Financial income and financial expenses | Financial income includes interest income from funds invested, dividend income not accounted for under the equity method, changes in the fair value of financial assets measured at fair value through profit or loss, and gains on derivative instruments that are recognized in profit or loss. Interest income is recognized in profit or loss under the effective interest method. Dividend income is recognized in profit or loss when the Company’s right to receive payment has been established. Distributions received from investees accounted for under the equity method reduce the investment value. Financial expenses comprise interest expenses on borrowings, dividends on preferred shares classified as liabilities, losses on the fair value of financial instruments measured at fair value through profit or loss, impairment losses recognized in financial assets, and losses on derivative instruments that are recognized in profit or loss. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are measured through profit or loss under the effective interest method. Foreign exchange gains and losses are reported on a net basis. |
Income tax and social contribution | Current income tax and social contribution are calculated based on the tax laws enacted by the end of the reporting period, including in the countries where the Group entities operate and generate taxable profit. Management periodically assesses the positions taken in the tax calculations with respect to situations where applicable tax regulations are open to interpretations. The Group recognizes provisions where appropriate, based on the estimated payments to tax authorities. The income tax and social contribution expense comprises current and deferred taxes. Current and deferred taxes are recognized in profit or loss unless they are related to business combinations or items recognized directly in shareholders' equity. Current tax is the expected tax payable or receivable on taxable profit or loss for the year at tax rates that have been enacted by the end of the reporting period and any adjustment to taxes payable in relation to prior years. Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax is not recognized for the following temporary differences: initial recognition of assets and liabilities in a transaction that is not a business combination and does not affect either the accounting or taxable profit or loss, and differences associated with investments in subsidiaries and joint ventures when it is probable that they will not reverse in the foreseeable future. Moreover, a deferred tax liability is not recognized for taxable temporary differences resulting from the initial recognition of goodwill. The deferred tax is measured at the rates that are expected to be applied on temporary differences when they reverse, based on the laws enacted by the end of the reporting period. Current income tax and social contribution are carried at their net amounts by the taxpayer, in liabilities when there are amounts payable or in assets when prepaid amounts exceed the total amount due at the end of the reporting period. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on the same entity subject to taxation. A deferred income tax and social contribution asset is recognized for all tax losses, tax credits, and deductible temporary differences to the extent that it is probable that taxable profits will be available against which those tax losses, tax credits, and deductible temporary differences can be utilized. Annually, the Company reviews and verifies the existence of future taxable income and a provision for loss is recognized when the realization of these credits is not likely. |
Earnings/(Loss) per share | Basic earnings/loss per share are calculated by means of the profit/loss for the year attributable to owners of the Group and the weighted average number of common shares outstanding in the related period. Diluted earnings/loss per share are calculated by means of the average number of shares outstanding, adjusted by instruments potentially convertible into shares, with diluting effect, in the reported periods. The Group does not have any instruments potentially convertible into shares and, accordingly, diluted earnings/loss per share are equal to basic earnings/loss per share. |
Environmental and restoration costs | The Company recognizes a provision for the recovery costs and fines when a loss is probable and the amounts of the related costs can be reliably measured. Generally, the period when the provision for recovery is recognized coincides with the end of a feasibility study or the commitment to adopt a formal action plan. Expenses related to compliance with environmental regulations are charged to profit or loss or capitalized, as appropriate. Capitalization is considered appropriate when the expenses refer to items that will continue to benefit the Group and that are basically related to the acquisition and installation of equipment to control and/or prevent pollution. |
Research and development | Research expenditures are recognized as expenses when incurred. Expenditures on project developments (related to the design and testing stages of new or improved products) are recognized as intangible assets when it is probable that projects will be successful, based on their commercial and technological feasibility, and only when the cost can be reliably measured. When capitalized, development expenditures are amortized from the start of a product commercial production, on a straight-line basis and over the period of the expected benefit. |
Financial instruments | As of January 1, 2018, IFRS 9 was adopted by the Company, all assets and liabilities are recorded according to the respective practice. i) Financial assets Financial assets are classified into the following categories: assets measured at amortized cost, fair value through profit or loss and fair value through other comprehensive income. Assets are classified according to the definition of the business plan adopted by the Company and the characteristics of the cash flow of the financial asset. · Recognition and measurement The Company classifies, at initial recognition, its financial assets into three categories: i) assets measured at amortized cost ii) fair value through profit or loss and iii) fair value through other comprehensive income. · Amortized cost Assets measured at amortization cost must be measured if both of the following conditions are met: i) the financial asset is maintained within the business plan whose objective is to maintain financial assets for the purpose of receiving contractual cash flows ii) the contractual terms of the financial asset give rise, on specific dates, to cash flows that exclusively constitute payments of principal and interest on the principal amount outstanding, the Company shall recognize its interest income, exchange gains and losses and impairment directly in the income statement · Fair value through profit or loss Financial assets should be measured at fair value through profit or loss only if they are not measured as assets measured at amortized cost or fair value through other comprehensive income. The Company must recognize its interest income, foreign exchange gains and losses, impairment, and other net income are recognized directly in income. · Fair value through other comprehensive income. Financial assets shall be measured at fair value through comprehensive income only when the following conditions are met: i) the financial asset is maintained within a business plan whose objective is achieved by the receipt of contractual cash flow and by the sale of financial assets, ii) the contractual terms of the financial asset give rise, in specific dates and interest on the value of the outstanding principal. The assets measured at fair value through other comprehensive income are classified into two categories: i) debt instruments in which the interest income calculated using the effective interest method, the foreign exchange gains and losses and the impairment are recognized in the statement of income. Other net income is recognized directly in the Company's equity, in "other comprehensive income". In derecognition of the asset, the accumulated result in other comprehensive income is reclassified to income, and ii) equity instrument in which these assets are measured subsequent to the fair value. The dividends are recognized as a gain in profit or loss, unless the dividend represents a clear recovery of part of the cost of the investment. Other net income is recognized directly in the Company's equity in "other comprehensive income" and is never reclassified to income. The fair values of publicly quoted investments are based on current purchase prices. If the market for a financial asset (and for instruments not listed on a stock exchange) is not active, the Company establishes the fair value by using valuation techniques. These techniques include the use of recent transactions contracted with third parties, reference to other instruments that are substantially similar, analysis of discounted cash flows, and option pricing models that make maximum use of market inputs and relies as little as possible on entity-specific inputs. Regular purchases and sales of financial assets are recognized at the trading date on which the Company undertakes to buy or sell the asset. · Derecognition of financial assets Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred, in the latter case, provided that the Company has transferred significantly all risks and rewards of ownership. If the company holds substantially all the risks and rewards of ownership of the financial asset, it must continue to recognize the financial asset. ii) Financial liabilities Financial liabilities are classified under the following categories: financial liability at amortized cost, fair value through profit or loss. Management determines the classification of its financial liabilities at the time of initial recognition. · Financial liabilities measured at amortized cost The Company shall classify all its financial liabilities as amortized cost, except financial liabilities classified at fair value through profit or loss, derivative liabilities, collateral agreement. Other financial liabilities are measured at amortized cost using the effective interest method. The interest expenses, gains and losses are recognized in the income statement. The Company holds the following non-derivative financial liabilities: borrowings, financing and debentures and trade payables. · Financial liabilities at fair value through profit or loss Financial liabilities classified in category fair value through profit or loss are financial liabilities held for trading or those designated at the time of initial recognition. Derivatives are also classified as trading securities, and thereby are classified so, unless they have been designated as effective hedging instruments. Gains and losses on financial liabilities classified at fair value through profit or loss are recognized in profit or loss · Derecognition of financial liabilities Financial liabilities are written off only when they are extinguished, that is, when the obligation specified in the agreement is settled, canceled or expires. The Company also derecognizes a financial liability when the terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. iii) Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to set off the recognized amounts as well as the intention to either settle them on a net basis or to realize the asset and settle the liability simultaneously. iv) Derivative instruments and hedging activities · Derivatives measured at fair value through profit or loss Derivatives are initially recognized at fair value on the date when a derivative contract is entered, thereafter they are subsequently measured at their fair value and any changes are recognized as “Financial income (expenses)” in the income statement. · Cash flow Hedge The Company adopts hedge accounting and designates certain financial liabilities as a hedging instrument of a foreign exchange risk associated to the cash flows from forecast, highly probable exports (cash flow hedges). At the inception of the transaction, the Company documents the relationships between the hedging instruments and the hedged items, as well as its risk management objectives and strategy for undertaking hedging transactions. The Company also documents its assessment, both at the inception of the hedge and on an ongoing basis, of whether the hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items. The effective portion of the changes in the fair value of financial liabilities designated and qualifying as cash flow hedge is recognized on equity, in line item "Hedge accounting”. Any gain or loss related to the ineffective portion is recognized immediately in other operational income/ expenses, if applicable. The amounts accumulated in equity are realized in operational results in the periods when the forecast exports affect the result. When a hedging instrument expires, is settled in advance or the hedging relationship no longer meets the hedge accounting criteria, or even when Management decides to discontinue hedge accounting, all cumulative gains or losses recorded in equity at the time remain recognized in equity and, from that moment, the exchange variations are recorded in the financial income/expenses. When the forecast transaction is completed, the gain or loss is reclassified to operational result. When a forecast transaction is no longer expected to take place, the cumulative gain or loss previously recognized in shareholders’ equity is immediately transferred to the income statement, in line item “ Other operational”. The movements of the hedge amounts denominated as export cash flow hedges are shown in note 13 – Financial Instruments. · Net investment hedge For net investment hedge, the Company designates part of its financial liabilities as hedging instruments of its overseas investments with functional currencies other than the Group’s functional currency, according to IAS39. Such relationship occurs since the financial liabilities are related to the investments in the amounts required for the effective relationship. At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values of the hedged item. The effective portion of changes in the fair value of financial liabilities that are designated and qualify as a net investment hedge is recognized in equity in line item “Hedge Accounting”. The gain or loss relating to the ineffective portion is recognized in other operating, when applicable. If at some point of the hedging relationship the balance of the debt is higher than the balance of the investment, the exchange variation on the excess debt will be reclassified to the statement of profit or loss as an other operating income / expenses (ineffectiveness of the hedge). The amounts accumulated in equity will be realized in the statement of profit or loss upon disposal or partial disposal of the foreign operation. The changes in the amounts of hedge denominated as Net investment hedge are shown in note 13 – Financial Instruments. |
Segment information | An operating segment is a component of the Group committed to the business activities from which it can obtain revenues and incur expenses, including revenues and expenses related to transactions with any other components of the Group. All the operating results of operating segments are reviewed regularly by the Executive Officers of CSN to enable decisions regarding resources to be allocated to the segment and assessment of its performance. The Company maintains distinct financial information for the distinct segments. |
Government grants | Government grants are not recognized until there is reasonable assurance that the Company will comply to the conditions attaching to them and assurance that the grants will be received, so then they will be recognized in profit or loss on a systematic basis over the periods in which the Company recognizes as expenses the related costs that the grants are intended to compensate. The Company has state tax incentives in the North and Northeast regions, which are recognized in profit or loss as a reduction of the corresponding costs, expenses and taxes. |
Noncurrent assets held for sale and discontinued operations | Noncurrent assets and groups of assets are classified as held for sale if their carrying amount is recovered mainly through a sale transaction and not through continued use. The criteria for classification of items held for sale are considered to be met only when the sale is highly probable and the asset or group of assets is available for immediate sale. Assets and liabilities classified as held for sale are presented separately as current items in the balance sheet. Classification as a discontinued operation occurs through disposal, or when the transaction meets the criteria to be classified as held for sale if this occurs earlier. A discontinued operation is a component of a Group business which comprises operations and cash flows that may be clearly distinct from the rest of the Group and represent a separate business line or geographical area of operations. The result of discontinued operations is presented in a single amount in the income statement, including the total income after income tax of these operations, less any impairment loss. |
New standards and interpretations issued and not yet adopted | The following standards and interpretations have been issued and will be mandatory for subsequent accounting periods, that is, as of January 1, 2019, 2020 and 2021 and were not early adopted by the Group for the year ended December 31, 2018: Standard Main items introduced by the standard Effective date IFRS16 – Leases This new standard defines the principles for recognition, measurement, presentation and disclosure of leases and introduces a single model for the accounting of leases in the balance sheet for the lessees. A lessee recognizes a right of use asset that represents his right to use the leased asset and a lease liability that represents his obligation to make lease payments. Optional exemptions are available for short-term leases and low-value items. For lessors, accounting treatment remains practically the same, with the classification of leases as operating leases or financial leases. IFRS 16 replaces existing lease standards, including IAS 17 - Leasing operations and IFRIC 4, SIC 5 and SIC 27 - Complementary aspects of leasing operations January 1, 2019 IFRIC 23 – Uncertainty over Income Tax Treatments Can be unclear how tax law applies to a particular transaction or circumstance. This interpretation complements IAS 12 – Income Tax, to clarify how to reflect the effects of uncertainty over income tax treatments. January 1, 2019 The Conceptual framework for financial reporting Review of the Conceptual Framework by establishing a comprehensive set of concepts for guidance on financial performance reporting; better definitions and guidelines, highlighting the definition of a liability; and clarification in relevant areas. January 1, 2020 The following information presents the possible impacts on the adoption of IFRS16 – Leases and IFRIC 23 – Uncertainty over Income Tax Treatments, which were available at the time of the preparation of these financial statements. In this way, these preliminary assessments and their potential impacts are subject to change until the initial adoption is disclosed in the 2019 financial statements. · IFRS 16 – Leases IFRS 16 aims to unify the accounting model of the lease, requiring lessee to recognize the assets and liabilities of all leases at present value, unless it has the following characteristics that are in the scope exemption from the rule: (i) contract with a term of not more than twelve months; and ii) has a low value or is based on variable values. The Company concluded that with the adoption of the standard, we will have a reduction in operating expenses and an increase in financial expenses, once the asset "right of use" is amortized and the lease liability is updated to reflect the consideration to be paid over the contract period. The standard is applicable as from January 1, 2019, the Company opted to apply the modified retrospective approach, recognizing the cumulative effect as an adjustment in the opening balance. The Company estimates the impact of R$578 million in the consolidation in the initial recognition of the right of use and lease liabilities. · IFRIC 23 - Uncertainty over Income Tax Treatments This interpretation is intended to clarify how the company should evaluate the uncertainties in accounting for income taxes when the applicable legislation is not clear. The company evaluated current events and the accounting treatment applied in each situation in the light of this interpretation, we concluded that IFRIC 23 does not have effects arising from tax positions adopted that may be challenged by the Brazilian tax authorities. |
2. SUMMARY OF SIGNIFICANT ACC_3
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies Tables Abstract | |
Subsidiaries, joint ventures and joint operations | Equity interests (%) Companies 12/31/2018 12/31/2017 Core business Direct interest in subsidiaries: full consolidation CSN Islands VII Corp. 100.00 100.00 Financial transactions CSN Islands XI Corp. 100.00 100.00 Financial transactions CSN Islands XII Corp. 100.00 100.00 Financial transactions CSN Minerals S.L.U. (1) 100.00 Equity interests CSN Export Europe, S.L.U. (1) 100.00 Financial transactions and Equity interests CSN Metals S.L.U. (1) 100.00 Equity interests and Financial transactions CSN Americas S.L.U. (1) 100.00 Equity interests and Financial transactions CSN Steel S.L.U. 100.00 100.00 Equity interests and Financial transactions TdBB S.A (*) 100.00 100.00 Equity interests Sepetiba Tecon S.A. 99.99 99.99 Port services Minérios Nacional S.A. 99.99 99.99 Mining and Equity interests Companhia Florestal do Brasil 99.99 99.99 Reforestation Estanho de Rondônia S.A. 99.99 99.99 Tin Mining Companhia Metalúrgica Prada 99.99 99.99 Manufacture of containers and distribution of steel products CSN Gestão de Recursos Financeiros Ltda. (*) 99.99 99.99 Management of funds and securities portfolio CSN Mineração S.A. 87.52 87.52 Mining and Equity interests CSN Energia S.A. 99.99 99.99 Sale of electric power FTL - Ferrovia Transnordestina Logística S.A. 91.69 90.78 Railroad logistics Nordeste Logística S.A. 99.99 99.99 Port services Aceros México CSN (2) 0.08 Commercial representation, sales of steel and related activities CSN Inova Ltd.(3) 100.00 Advisory and implementation of new development projects Indirect interest in subsidiaries: full consolidation Companhia Siderúrgica Nacional (4) 100.00 Steel Lusosider Projectos Siderúrgicos S.A. 100.00 99.94 Equity interests and product sales Lusosider Aços Planos, S. A. 99.99 99.99 Steel and Equity interests CSN Resources S.A. 100.00 100.00 Financial transactions and Equity interests Companhia Brasileira de Latas 99.00 99.99 Sale of cans and containers in general and Equity interests Companhia de Embalagens Metálicas - MMSA 99.67 99.67 Production and sale of cans and related activities Companhia de Embalagens Metálicas - MTM 99.67 99.67 Production and sale of cans and related activities CSN Steel Holdings 1, S.L.U. 100.00 100.00 Financial transactions, product sales and Equity interests CSN Productos Siderúrgicos S.L. 100.00 100.00 Financial transactions, product sales and Equity interests Stalhwerk Thüringen GmbH 100.00 100.00 Production and sale of long steel and related activities CSN Steel Sections UK Limited (*) 100.00 100.00 Sale of long steel CSN Steel Sections Polska Sp.Z.o.o 100.00 100.00 Financial transactions, product sales and Equity interests CSN Asia Limited 100.00 100.00 Commercial representation CSN Mining Holding, S.L 87.52 87.52 Financial transactions, product sales and Equity interests CSN Mining GmbH 87.52 87.52 Financial transactions, product sales and Equity interests CSN Mining Asia Limited 87.52 87.52 Commercial representation Aceros México CSN (2) 99.92 100.00 Commercial representation, sale of steel and related activities Lusosider Ibérica S.A 100.00 99.94 Steel, commercial and industrial activities and equity interests CSN Mining Portugal, Unipessoal Lda. 87.52 87.52 Commercial and representation of products Companhia Siderúrgica Nacional, LLC (4) 100.00 Import and distribution/resale of products Direct interest in joint operations Itá Energética S.A. 48.75 48.75 Electric power generation Consórcio da Usina Hidrelétrica de Igarapava 17.92 17.92 Electric power consortium Direct interest in joint ventures MRS Logística S.A. 18.64 18.64 Railroad transportation Aceros Del Orinoco S.A. 31.82 31.82 Dormant company CBSI - Companhia Brasileira de Serviços de Infraestrutura 50.00 50.00 Equity interests and product sales and iron ore Transnordestina Logística S.A. 46.30 46.30 Railroad logistics Indirect interest in joint ventures MRS Logística S.A. 16.30 16.30 Railroad transportation Direct interest in associates Arvedi Metalfer do Brasil S.A. 20.00 20.00 Metallurgy and Equity interests |
Exclusive funds | Equity interests (%) Exclusive funds 12/31/2018 12/31/2017 Core business Direct interest: full consolidation Diplic II - Private credit balanced mutual fund 100.00 100.00 Investment fund Caixa Vértice - Private credit balanced mutual fund 100.00 100.00 Investment fund VR1 - Private credit balanced mutual fund 100.00 100.00 Investment fund |
Concessions | Concession Net book value (R$) Classification in balance sheet Sepetiba Tecon S.A. (TECON) 347 million Fixed assets and intangible (Software) Tecar (CSN Mineração) 1,616 million Fixed assets and intangible (Software) FTL - Ferrovia Transnordestina Logística S.A. (FTL) 227 million Fixed assets Transnordestina logística S.A. (TLSA) 8,439 million (1) Investment |
New standards and interpretations issued and not yet adopted | Standard Main items introduced by the standard Effective date IFRS16 – Leases This new standard defines the principles for recognition, measurement, presentation and disclosure of leases and introduces a single model for the accounting of leases in the balance sheet for the lessees. A lessee recognizes a right of use asset that represents his right to use the leased asset and a lease liability that represents his obligation to make lease payments. Optional exemptions are available for short-term leases and low-value items. For lessors, accounting treatment remains practically the same, with the classification of leases as operating leases or financial leases. IFRS 16 replaces existing lease standards, including IAS 17 - Leasing operations and IFRIC 4, SIC 5 and SIC 27 - Complementary aspects of leasing operations January 1, 2019 IFRIC 23 – Uncertainty over Income Tax Treatments Can be unclear how tax law applies to a particular transaction or circumstance. This interpretation complements IAS 12 – Income Tax, to clarify how to reflect the effects of uncertainty over income tax treatments. January 1, 2019 The Conceptual framework for financial reporting Review of the Conceptual Framework by establishing a comprehensive set of concepts for guidance on financial performance reporting; better definitions and guidelines, highlighting the definition of a liability; and clarification in relevant areas. January 1, 2020 |
3. SALE OF FOREIGN SUBSIDIARY (
3. SALE OF FOREIGN SUBSIDIARY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Sale Of Foreign Subsidiary Tables Abstract | |
Sale of foreign subsidiary | 06/30/2018 Change in working capital In 2018 U$$ R$ U$$ R$ R$ Receipt from disposal of the investment 395,661 1,525,590 1,525,590 Deposit in Warranty 2,000 7,712 7,712 Contractual expenses and fees (d) 2,339 9,021 9,021 Basis price for alienation (a) 400,000 1,542,323 1,542,323 Working Capital Receivable (b) (*) 34,008 131,127 3,581 14,402 145,529 Shareholder's Equity da LLC (c) 133,445 514,537 514,537 Net gain of alienation = (a+b-c-d) 298,224 1,149,892 3,581 14,402 1,164,294 |
Net investment, results and cash flows from the sale of the investment | 3.a) Balance sheet LLC 06/30/2018 ASSETS Current Assets 418,014 Cash and cash equivalents 760 Trade Receivable 114,266 Inventory 299,373 Other current assets 3,615 Non-current assets 191,431 Other non-current assets 205 Property, plant and equipment 191,226 TOTAL ASSETS 609,445 LIABILITIES Current Liabilities 89,810 Borrowings and Financing 5,446 Social and Labor obligations 5,526 Trade payables 76,400 Tax payables 1,398 Other payables 1,040 Non-current liabilities 5,098 Borrowings and Financing 5,098 Shareholders' equity (disposal) 514,537 TOTAL LIABILITIES 609,445 3.b) Statement of Income 06/30/2018 06/30/2017 Net Revenues 997,061 472,409 Cost from sale of goods and rendering of services (888,850) (388,322) Gross profit 108,211 84,087 Selling expenses (24,650) (10,521) General and administrative expenses (15,649) (9,531) Other operating expenses, net (844) (358) Profit before financial income (expenses) 67,068 63,677 Financial income (expenses), net (2,641) (428) Profit (loss) before taxes 64,427 63,249 Income tax and Social Contribution (1,730) - Profit (loss) for the period 62,697 63,249 3.c) Statement of Cash Flows 06/30/2018 06/30/2017 Net cash provided by (used) by operating activities 149,691 (69,216) Net cash provided by (used) by investing activities (6,269) (2,492) Net cash provided by (used) by financing activities (176,592) (1,860) Increase (decrease) in cash and cash equivalents for the period (33,170) (73,568) Cash and equivalents at the beginning of the year 33,930 112,428 Cash and equivalents at the end of the year 760 38,860 Net revenue receipts from sale of subsidiary LLC In 2018 Net cash received from the sale of the asset 1,525,590 Cash and cash equivalents transferred on the sale of the assets (760) Working capital received 145,529 Net cash provided by the sale of assets 1,670,359 |
4. CASH AND CASH EQUIVALENTS (T
4. CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents | |
Cash and cash equivalents | Consolidated 12/31/2018 12/31/2017 Current Cash and cash equivalents Cash and banks 1,124,714 193,702 Short-term investments In Brazil: Government securities 10,247 12,100 Private securities 609,480 644,525 619,727 656,625 Abroad: Time deposits 503,563 2,561,245 Total short-term investments 1,123,290 3,217,870 Cash and cash equivalents 2,248,004 3,411,572 |
5. FINANCIAL INVESTMENTS (Table
5. FINANCIAL INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Investments Tables Abstract | |
FINANCIAL INVESTMENTS | Consolidated Current Non-Current 12/31/2018 12/31/2017 12/31/2018 CDB - Certificate of bank deposit 882,376 716,218 Government securities (2) 13,337 19,494 Time Deposit (3) 7,772 895,713 735,712 7,772 |
6. TRADE RECEIVABLES (Tables)
6. TRADE RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade Receivables Tables Abstract | |
Trade receivables | Consolidated 12/31/2018 12/31/2017 Trade receivables Third parties Domestic market 1,369,396 1,290,823 Foreign market 852,821 982,846 2,222,217 2,273,669 Allowance for doubtful debts (237,352) (191,979) 1,984,865 2,081,690 Related Parties (note 19 b) 93,317 115,388 2,078,182 2,197,078 |
Gross trade receivables from third parties | Consolidated 12/31/2018 12/31/2017 Current 1,514,847 1,391,839 Past-due up to 30 days 177,287 167,760 Past-due up to 180 days 47,684 142,346 Past-due over 180 days 482,399 571,724 2,222,217 2,273,669 |
Changes in allowance for doubtful debts | Consolidated 12/31/2018 12/31/2017 Opening balance (191,979) (172,782) Expected credit losses (53,706) (36,697) Recovery of receivables 8,333 17,500 Closing balance (237,352) (191,979) |
7. INVENTORIES (Tables)
7. INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventories Tables Abstract | |
Inventory | Consolidated 12/31/2018 12/31/2017 Finished goods 1,362,981 1,308,802 Work in progress 1,122,933 1,135,589 Raw materials 1,560,499 1,050,588 Spare parts 856,097 814,725 Iron ore 258,612 278,041 Advances to suppliers 36,192 12,514 (-) Provision for losses (157,754) (135,840) 5,039,560 4,464,419 |
Changes in provision for inventory losses | Consolidated 12/31/2018 12/31/2017 Opening balance (135,840) (101,176) (Estimated losses) / Reversal of inventories with low turnover and obsolescence (21,914) (34,664) Closing balance (157,754) (135,840) |
8. OTHER CURRENT AND NON-CURR_2
8. OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Current And Noncurrent Assets Tables Abstract | |
Other current and non-current assets | Consolidated Current Non-current 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Judicial deposits (note 17) 347,950 339,351 Credits with the PGFN (1) 46,774 46,774 Recoverable taxes (2) 1,412,335 866,986 1,822,388 401,071 Prepaid expenses 49,830 50,078 49,808 30,741 Actuarial assets - related parties (Note 19 b) 99,894 111,281 Derivative financial instruments (note 13 I) 351 Securities held for trading (note 13 I) 4,503 2,952 Iron ore inventory (3) 144,499 144,499 Northeast Investment Fund – FINOR 26,598 26,598 Loans with related parties (notes 19 b and 13 I) 2,675 2,441 706,605 554,694 Other receivables from related parties (Note 19 b) 3,649 3,577 218,840 30,770 Other receivables (note 13 I) 7,451 20,024 Principal and monetary adjustment related to the Eletrobrás' compulsory loan (Note 13 I) (4) 813,428 784,741 Dividends receivable (note 19b) (*) 46,171 41,528 Employee debt (*) 31,645 33,942 Sea freight (5) 117,156 Other receivables (*) 12,753 3,667 Others 71,956 67,544 988 37,931 1,753,024 1,072,715 4,285,223 2,528,475 |
9. INVESTMENTS (Tables)
9. INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Tables Abstract | |
Direct equity interests in subsidiaries, joint ventures, joint operations, associates and other investments | 12/31/2018 12/31/2017 Companies Number of shares (in units) Participation in Participation in % equity interest Assets Liabilities Fair Value Allocation Net income / (loss) for the year % equity interest Assets Liabilities Fair Value Allocation Net income / (loss) for the year Shareholders’ equity Shareholders’ equity Joint-venture and Joint-operation MRS Logística S.A.(*) 126,716,070 37.27 3,125,912 1,693,200 1,878,095 194,403 37.27 3,039,761 1,714,729 1,782,162 171,905 CBSI - Companhia Brasileira de Serviços de Infraestrutura 1,876,146 50.00 25,941 19,997 5,944 4,501 50.00 16,005 13,654 2,351 1,785 Transnordestina Logística S.A. 24,168,304 46.30 4,065,604 2,883,851 1,181,753 271,116 (20,429) 46.28 3,806,380 2,604,198 1,202,182 271,116 (21,357) 7,217,457 4,597,048 3,065,792 271,116 178,475 6,862,146 4,332,581 2,986,695 271,116 152,333 Associates Arvedi Metalfer do Brasil 46,994,971 20.00 40,712 26,308 14,404 (5,087) 20.00 43,653 23,978 19,675 (4,368) 40,712 26,308 14,404 (5,087) 43,653 23,978 19,675 (4,368) Classified as fair value through profit or loss and comprehensive income (Note 13 I) Usiminas 2,250,623 2,200,459 Panatlântica 28,566 21,974 2,279,189 2,222,433 Other Investments 112 76 Total Investments 5,359,497 271,116 5,228,879 271,116 5,630,613 5,499,995 |
Changes of investments balances in subsidiaries, joint ventures, joint operations, associates and other investments | Consolidated 12/31/2018 12/31/2017 Opening balance of investments 5,499,995 4,568,451 Opening balance of loss provisions Capital increase 20,579 Dividends (87,846) (79,189) Comprehensive income (1) 272 850,640 Equity in results of affiliated companies (2) 173,145 147,800 Receipt of sale - Usiminas' shares (39,377) Update of shares measured at Fair Value through profit or loss (VJR) (note 13 II) 96,133 Amortization of fair value – investment in MRS (11,746) (11,746) Others 37 3,460 Closing balance of investments 5,630,613 5,499,995 |
Equity in results | Consolidated 12/31/2018 12/31/2017 Equity in results of affiliated companies MRS Logística S.A. 194,403 171,905 CBSI - Companhia Brasileira de Serviços de Infraestrutura 4,501 1,785 Transnordestina Logística S.A. (20,429) (21,357) Arvedi Metalfer do Brasil S.A. (5,087) (4,368) Others (243) (165) 173,145 147,800 Eliminations To cost of sales (42,806) (40,823) To taxes 14,554 13,880 Others Amortization of fair value – investment in MRS (11,746) (11,746) Others 2,559 Equity in results adjusted 135,706 109,111 |
Joint ventures and joint operations financial information | 12/31/2018 12/31/2017 Joint-Venture Joint-Operation Joint-Venture Joint-Operation Equity interest (%) MRS Logística CBSI Transnordestina Logística Itá Energética MRS Logística CBSI Transnordestina Logística Itá Energética 34.94% 50.00% 46.30% 48.75% 34.94% 50.00% 46.30% 48.75% Balance sheet Current assets Cash and cash equivalents 345,962 2,091 19,234 29,870 484,978 101 5,763 16,231 Advances to suppliers 17,750 73 1,734 937 14,911 37 22 Other current assets 736,768 41,284 108,851 16,718 685,311 28,475 49,494 16,447 Total current assets 1,100,480 43,448 129,819 47,525 1,185,200 28,613 55,257 32,700 Non-current assets Other non-current assets 804,570 2,111 222,630 25,840 693,434 974 238,004 27,459 Investments, PP&E and intangible assets 6,482,292 6,324 8,428,567 457,578 6,277,550 2,423 7,927,881 484,406 Total non-current assets 7,286,862 8,435 8,651,197 483,418 6,970,984 3,397 8,165,885 511,865 Total Assets 8,387,342 51,883 8,781,016 530,943 8,156,184 32,010 8,221,142 544,565 Current liabilities Borrowings and financing 422,793 4,350.0000 75,906 668,947 1,411 52,691 Other current liabilities 1,368,290 33,844 179,816 18,298 1,272,365 25,898 113,739 33,666 Total current liabilities 1,791,083 38,194 255,722 18,298 1,941,312 27,309 166,430 33,666 Non-current liabilities Borrowings and financing 2,111,518 1,262 5,754,073 2,084,422 5,457,768 Other non-current liabilities 640,535 539 218,839 15,113 575,170 434 3,471 Total non-current liabilities 2,752,053 1,801 5,972,912 15,113 2,659,592 5,458,202 3,471 Shareholders’ equity 3,844,206 11,888 2,552,382 497,532 3,555,280 4,701 2,596,510 507,428 Total liabilities and shareholders’ 8,387,342 51,883 8,781,016 530,943 8,156,184 32,010 8,221,142 544,565 01/01/2018 at 12/31/2018 01/01/2017 a 12/31/2017 Joint-Venture Joint-Operation Joint-Venture Joint-Operation Equity interest (%) MRS Logística CBSI Transnordestina Logística Itá Energética MRS Logística CBSI Transnordestina Logística Itá Energética 34.94% 50.00% 46.30% 48.75% 34.94% 50.00% 46.30% 48.75% Statements of Income Net revenue 3,726,448 166,080 166,358 3,492,805 135,399 168,194 Cost of sales and services (2,476,628) (142,254) (77,829) (2,307,108) (120,647) (76,810) Gross profit 1,249,820 23,826 88,529 1,185,697 14,752 91,384 Operating (expenses) income (313,606) (10,884) (18,020) (60,104) (283,151) (8,340) (32,245) (58,465) Financial income (expenses), net (151,839) (179) (26,103) (126) (187,295) (1,004) (13,938) 317 Income before income tax and social 784,375 12,763 (44,123) 28,299 715,251 5,408 (46,183) 33,236 Current and deferred income tax (262,760) (3,761) (9,452) (254,001) (1,838) (11,105) (Loss) profit for the year, net 521,615 9,002 (44,123) 18,847 461,250 3,570 (46,183) 22,131 |
Assumptions for impairment test | Cash Flow Projection Until 2057 Gross Margin Based on market studies to capture operations costs and loads, according studied of market trends. Estimated Costs Costs based on studies and market trends. Growth rate in perpetuity Growth rate was not considered due to the projection model until the end of the concession. Discount rate Between 5.1% to 7.9% in real terms. |
10. PROPERTY, PLANT AND EQUIP_2
10. PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | Consolidated Land Buildings and Infrastructure Machinery, equipment and facilities Furniture and fixtures Construction Other (*) Total Balance at December 31, 2017 279,740 2,796,947 11,985,920 33,103 2,475,935 393,194 17,964,839 Cost 279,740 3,819,929 21,674,362 164,152 2,475,935 669,096 29,083,214 Accumulated depreciation (1,022,982) (9,688,442) (131,049) (275,902) (11,118,375) Balance at December 31, 2017 279,740 2,796,947 11,985,920 33,103 2,475,935 393,194 17,964,839 Translation adjustment 7,730 11,653 86,553 543 4,275 4,605 115,359 Acquisitions 622 1,259 144,499 1,574 1,158,788 21,152 1,327,894 Capitalized interest (notes 25 and 30) 71,611 71,611 Write-off and estimated losses, net of reversal (note 24) (9,768) (21,468) (6) (4,348) (2,655) (38,245) Depreciation (note 23) (134,534) (1,043,188) (5,394) (22,456) (1,205,572) Transfers to other asset categories 30,031 685,005 891 (424,443) (291,484) Write-off - sale of subsidiary LLC (238) (16,950) (145,958) (181) (6,070) (21,829) (191,226) Transfers to intangible assets 5,559 (1,752) 3,807 Others (9,651) 8,440 (392) (1,603) Balance as of December 31, 2018 287,854 2,678,638 11,687,271 30,530 3,282,436 80,135 18,046,864 Cost 287,854 3,751,429 22,426,782 165,331 3,282,436 355,768 30,269,600 Accumulated depreciation (1,072,791) (10,739,511) (134,801) (275,633) (12,222,736) Balance as of December 31, 2018 287,854 2,678,638 11,687,271 30,530 3,282,436 80,135 18,046,864 |
Construction in progress | Consolidated Project description Start date Completion date 12/31/2018 12/31/2017 Logistics Current investments for maintenance of current operations. 89,595 106,956 89,595 106,956 Mining Expansion of Casa de Pedra Mine capacity production. 2007 2020 (1) 844,194 750,999 Expansion of TECAR export capacity. 2009 2022 (2) 289,298 275,811 Current investments for maintenance of current operations. 725,616 408,522 1,859,108 1,435,332 Steel Supply of 16 torpedo’s cars for operation in the steel industry 2008 2020 94,920 99,483 Current investments for maintenance of current operations. (3) 558,922 228,029 653,842 327,512 Cement Construction of cement plants. 2011 2023 (4) 585,163 554,865 Current investments for maintenance of current operations. 94,728 51,270 679,891 606,135 Construction in progress 3,282,436 2,475,935 |
Estimated useful lives | Consolidated 12/31/2018 12/31/2017 Buildings 38 39 Machinery, equipment and facilities 22 21 Furniture and fixtures 11 12 Others 15 17 |
Capitalize borrowing costs rates | Rates 12/31/2018 12/31/2017 Unspecified projects 6.31% 8.63% |
11. INTANGIBLE ASSETS (Tables)
11. INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets Tables Abstract | |
Intangible assets | Consolidated Goodwill Customer relationships Software Trademarks Rights and licenses (*) Others Total Balance at December 31, 2017 3,590,931 300,875 73,185 134,137 3,172,469 449 7,272,046 Cost 3,834,234 513,068 167,162 134,137 3,185,701 449 7,834,751 Accumulated amortization (133,973) (212,193) (93,977) (13,232) (453,375) Adjustment for accumulated recoverable value (109,330) (109,330) Balance at December 31, 2017 3,590,931 300,875 73,185 134,137 3,172,469 449 7,272,046 Translation adjustment 34,107 148 15,872 58 50,185 Acquisitions and expenditures 1,216 984 2,200 Transfer of property, plant and equipment (3,807) (3,807) Amortization (note 23) (46,209) (15,770) (5,470) (67,449) Balance as of December 31, 2018 3,590,931 288,773 54,972 150,009 3,166,999 1,491 7,253,175 Cost 3,831,338 573,614 161,067 150,009 3,185,701 1,491 7,903,220 Accumulated amortization (131,077) (284,841) (106,095) (18,702) (540,715) Adjustment for accumulated recoverable value (109,330) (109,330) Balance as of December 31, 2018 3,590,931 288,773 54,972 150,009 3,166,999 1,491 7,253,175 |
Estimated useful lives | Consolidated 12/31/2018 12/31/2017 Software 7 8 Customer relationships 13 13 |
Cash generating units | Consolidated Goodwill Trademarks Total Cash generating unity Segment 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Packaging (1) Steel 158,748 158,748 158,748 158,748 Long Stel (2) Steel 235,595 235,595 150,009 134,137 385,604 369,732 Minning (3) Mining 3,196,588 3,196,588 3,196,588 3,196,588 3,590,931 3,590,931 150,009 134,137 3,740,940 3,725,068 |
Assumptions for impairment test | Metal packaging Flat steel (*) Logistic (**) Mining Measurement of recoverable value Discounted Cash Flow Discounted Cash Flow Discounted Cash Flow Discounted Cash Flow Cash flow projection Until 2028 + perpetuity Until 2028 + perpetuity Until 2027 Until 2054 Gross Margin Gross margin updated based on historical data, impacts of business restructuring and market trends Gross margin updated based on historical data and market trends. Estimated based on market studies for cargo captures and operational costs according market trends. Reflects projection of costs due to the progress of the mining plan as well as startup and ramp up of projects . Price and exchange rate projected according industry reports. Cost atualization Cost based on historical data of each product and impacts of business restructuring Updated costs based on historical data and market trends Costs based on historical data and market trends Updated costs based on historical data, progress of mining plan as well as startup and ramp up of projects Growth Rate Growth of 1.5% p.a in real terms updated by long term inflation of 4.0% p.a. Growth of 1.4% p.a in real terms updated by long term inflation of 2.5% p.a. of the Euro zone Growth of 1.5% p.a in real terms Without growth in real terms updated only by long term inflation of 4.0% p.a. Discount rate For Metal packaging, flat steel and mining, these cash flows were considered using a discount rate after taxes between 5% and 13% p.a. in |
12. BORROWINGS, FINANCING AND_2
12. BORROWINGS, FINANCING AND DEBENTURES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Borrowings Financing And Debentures Tables Abstract | |
Borrowings, financing and debentures | Consolidated Current liabilities Non-current liabilities 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Debt agreements in the international market Variable interest in: US$ Prepayment (1) 1,016,737 791,163 3,830,240 4,097,509 Fixed interest in: US$ Bonds, Perpetual Bonds and ACC (2) 2,490,178 523,509 8,613,491 8,920,342 Intercompany EUR Others 181,056 251,630 106,535 197,131 3,687,971 1,566,302 12,550,266 13,214,982 Debt agreements in Brazil Securities with variable interest in: R$ BNDES/FINAME, Debentures, NCE e CCB (3) 1,890,450 4,982,159 10,710,678 9,702,972 Securities with fixed interest in: R$ Prepayment 103,376 3,303 100,000 1,993,826 4,985,462 10,710,678 9,802,972 Total Borrowings and Financing 5,681,797 6,551,764 23,260,944 23,017,954 Transaction Costs and Issue Premiums (28,358) (24,862) (87,309) (34,012) Total Borrowings and Financing + Transaction Costs 5,653,439 6,526,902 23,173,635 22,983,942 |
Average interest rate | Consolidated 12/31/2018 Average interest rate (*) Total debt US$ 5.88% 15,950,646 R$ 8.19% 12,704,504 EUR 3.88% 287,591 28,942,741 |
Maturities of borrowings, financing and debentures | Consolidated 12/31/2018 Principal Bank loans Capital markets Development agencies Total 2020 3,187,269 3,499,177 66,892 6,753,338 2021 3,263,810 116,003 59,455 3,439,268 2022 3,087,732 36,667 58,154 3,182,553 2023 2,669,211 1,356,180 56,985 4,082,376 2024 1,276,001 67,734 1,343,735 After 2024 584,874 584,874 Perpetual bonds 3,874,800 3,874,800 13,484,023 8,882,827 894,094 23,260,944 |
New funding transactions and amortization | Consolidated 12/31/2018 12/31/2017 Opening balance 29,510,844 30,441,018 Funding raised 2,154,471 538,771 Principal repayments (5,019,978) (1,528,023) Payments of charges (2,141,710) (2,634,931) Provision of charges 2,009,688 2,438,555 Write-off – sale of subsidiary LLC (10,544) Others (1) 2,324,303 255,454 Closing balance 28,827,074 29,510,844 |
Group captures and amortized loans | nature Raised Amortization of principal Amortization of charges Prepayment 849,654 280,923 Bonds, Bonds Perpétuos and ACC 1,749,099 1,632,464 675,370 BNDES/FINAME, Debêntures, NCE and CCB 10,792 1,948,014 1,173,380 Others 394,580 589,846 12,037 2,154,471 5,019,978 2,141,710 |
Borrowings, financing and debentures amortization | Currency Maturities Borrowings Tax foreclosure Others Total 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Transnordestina Logísitca R$ Until 09/19/2056 and Indefinite 2,108,917 2,541,347 35,336 22,214 8,231 3,866 2,152,484 2,567,427 FTL - Ferrovia Transnordestina R$ 11/15/2020 62,407 69,405 62,407 69,405 Sepetiba Tecon 36,308 36,308 Cia Metalurgica Prada R$ Indefinite 333 333 11,942 18,540 12,275 18,873 CSN Energia R$ Until 11/26/2023 and Indefinite 2,829 2,829 1,920 4,749 2,829 CSN Mineração R$ Until 12/26/2024 1,407,363 2,000,000 1,407,363 2,000,000 Estanho de Rondônia R$ 07/15/2022 3,153 3,153 3,153 3,153 Minérios Nacional S.A. R$ Until 09/10/2021 7,305 7,305 - Total in R$ 3,589,145 4,613,905 38,498 25,376 22,093 58,714 3,649,736 4,697,995 CSN Islands XI US$ 09/21/2019 547,094 750,000 547,094 750,000 CSN Islands XII US$ Perpetual 1,000,000 1,000,000 1,000,000 1,000,000 CSN Resources US$ Until 02/13/2023 1,402,906 1,200,000 1,402,906 1,200,000 Total in US$ 2,950,000 2,950,000 2,950,000 2,950,000 CSN Steel S.L. EUR 1/31/2020 48,000 120,000 48,000 120,000 Lusosider Aços Planos EUR Indefinite 75,000 25,000 75,000 25,000 Total in EUR 123,000 145,000 123,000 145,000 Total in R$ 11,976,657 10,334,149 11,976,657 10,334,149 15,565,802 14,948,054 38,498 25,376 22,093 58,714 15,626,393 15,032,144 |
13. FINANCIAL INSTRUMENTS (Tabl
13. FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments Tables Abstract | |
Financial instruments | Consolidated Disclosed on 12/31/2017 Applied on 01/01/2018 Balance at 12/31/2017 Assets Current Cash and cash equivalents Loans and Receivables Amortized cost 3,411,572 Short term investments Loans and Receivables Amortized cost 735,712 Accounts Receivable Net Loans and Receivables Amortized cost 2,197,078 Loans with related parties Loans and Receivables Amortized cost 2,441 Derivative financial instruments VJR VJR Trading securities VJR VJR 2,952 Dividends receivable Amortized cost Amortized cost 41,528 Non-current Loans with related parties Loans and Receivables Amortized cost 554,694 Other trade receivables Loans and Receivables Amortized cost 20,024 Investments Available for sale VJR 2,222,479 Liabilities Current Borrowings and financing Amortized cost Amortized cost 6,551,764 Derivative financial instruments VJR VJR Trade payables Amortized cost Amortized cost 2,460,774 Dividends and interest on capital Amortized cost Amortized cost 510,692 Non-current Borrowings and financing Amortized cost Amortized cost 23,017,953 |
Financial instruments at fair value through profit or loss | Consolidated 12/31/2018 12/31/2017 Notes Fair value through profit or loss Measured at amortized cost Balances Fair value through profit or loss Measured at amortized cost Balances Assets Current Cash and cash equivalents 4 2,248,004 2,248,004 3,411,572 3,411,572 Financial investments 5 895,713 895,713 735,712 735,712 Trade receivables 6 2,078,182 2,078,182 2,197,078 2,197,078 Dividends receivable 8 46,171 46,171 41,528 41,528 Derivative financial instruments 8 351 351 Trading securities 8 4,503 4,503 2,952 2,952 Loans - related parties 8 2,675 2,675 2,441 2,441 Total 4,854 5,270,745 5,275,599 2,952 6,388,331 6,391,283 Non-current Financial investments 5 7,772 7,772 Other trade receivables 8 820,879 820,879 804,765 804,765 Investments 9 2,279,189 2,279,189 2,222,433 2,222,433 Loans - related parties 8 706,605 706,605 554,694 554,694 Total 2,279,189 1,535,256 3,814,445 2,222,433 1,359,459 3,581,892 Total Assets 2,284,043 6,806,001 9,090,044 2,225,385 7,747,790 9,973,175 Liabilities Current Borrowings and financing 12 5,681,797 5,681,797 6,551,764 6,551,764 Trade payables 3,473,822 3,473,822 2,505,695 2,505,695 Dividends and interest on capital 14 932,005 932,005 510,692 510,692 Total 10,087,624 10,087,624 9,568,151 9,568,151 Non-current Borrowings and financing 12 23,260,945 23,260,945 23,017,953 23,017,953 Total 23,260,945 23,260,945 23,017,953 23,017,953 Total Liabilities 33,348,569 33,348,569 32,586,104 32,586,104 |
Investments in financial instruments classified as available-for-sale | Consolidated 12/31/2018 12/31/2017 Level 1 Level 2 Balance Level 1 Balance Assets Current Financial assets at fair value through profit or loss Derivative financial instruments 351 351 Trading securities 4,503 4,503 2,952 2,952 Non-current Available-for-sale financial assets Investments 2,279,189 2,279,189 2,222,433 2,222,433 Total Assets 2,283,692 351 2,284,043 2,225,385 2,225,385 |
Foreign exchange exposure | 12/31/2018 Foreign Exchange Exposure (Amounts in US$’000) (Amounts in €’000) Cash and cash equivalents overseas 376,581 3,387 Trade receivables 358,283 1,124 Other assets 8,623 4,594 Total Assets 743,487 9,105 Borrowings and financing (4,116,508) (48,791) Trade payables (175,404) (7,946) Other liabilities (3,529) (920) Total Liabilities (4,295,441) (57,657) Foreign exchange exposure (3,551,954) (48,552) Cash flow hedge accounting 2,076,045 Net Investment hedge accounting 48,000 Net foreign exchange exposure (1,475,909) (552) Perpetual bonds 1,000,000 Net foreign exchange exposure excluding perpetual bonds (475,909) (552) |
Dollar x Euro swap | Consolidated 12/31/2018 Appreciation (R$) Fair value (market) Impact on financial income (expenses) in 2018 Counterparties Maturity Functional Currency Notional amount Asset position Liability position Amounts receivable / (payable) BCP 03/08/2019 Dollar 18,563 71,967 (71,616) 351 (1) Total dollar-to-euro swap 18,563 71,967 (71,616) 351 (1) 71,967 (71,616) 351 (1) |
Hedging instruments | 12/31/2018 Designation Date Hedging Instrument Hedged item Type of hedged risk Hedged period Exchange rate on designation Designated amounts (US$’000) Amortizated part (USD'000) Effect on Result Impact on 11/03/2014 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2016 - 2.4442 500,000 (250,003) 171,983 (357,649) 12/01/2014 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2015 - 2.5601 175,000 (154,999) 36,766 (26,295) 12/18/2014 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate May 2020 2.6781 100,000 (119,670) 07/21/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2019 - March 3.1813 60,000 (41,610) 07/23/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2019 - March 3.2850 100,000 (58,980) 07/23/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - 3.285 30,000 (6,000) 5,102 (14,155) 07/24/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - 3.3254 100,000 (20,000) 16,198 (43,952) 07/27/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - 3.3557 25,000 (5,000) 3,898 (10,382) 07/27/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - 3.3557 70,000 (14,000) 10,914 (29,070) 07/27/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - 3.3557 30,000 (6,000) 4,677 (12,458) 07/28/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - 3.3815 30,000 (6,000) 4,523 (11,839) 3/8/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate October 2018 - 3.3940 355,000 (11,998) 6,179 (164,915) 04/02/2018 Bonds Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2018 - February 2023 3.3104 1,170,045 (195,000) 109,951 (550,320) Total 2,745,045 (669,000) 370,191 (1,441,295) |
Changes in hedge accounting | 12/31/2017 Movement Realization 12/31/2018 Cash flow hedge accounting 395,524 1,415,962 (370,191) 1,441,295 Fair value of cash flow hedge, net of taxes 395,524 1,415,962 (370,191) 1,441,295 |
Non-derivative financial liabilities | 12/31/2018 Designation Date Hedging Instrument Hedged item Type of hedged risk Exchange rate on designation Designated amounts (EUR'000) Amortized part (USD’000) Impact on shareholders' equity 09/01/2015 Non-derivative financial liabilities in EUR – Debt contract Investments in subsidiaries which EUR is the functional currency Foreign exchange - R$ vs. EUR spot rate 4.0825 120,000 (72,000) 3,941 Total 120,000 (72,000) 3,941 |
Changes in net investment hedge | 12/31/2017 Movement 12/31/2018 Net Investment hedge accounting (17,911) 21,852 3,941 Fair value of net investment hedge in foreign operations (17,911) 21,852 3,941 |
Currencies used in sensitivity analysis | 12/31/2018 Currency Exchange rate Probable scenario Scenario 1 Scenario 2 USD 3,8748 3,7626 4,8435 5,8122 EUR 4,4390 4,2833 5,5488 6,6585 USD x EUR 1,1456 1,1346 1,4320 1,7184 12/31/2018 Interest Interest rate Scenario 1 Scenario 2 CDI 6,40% 8,00% 9,60% TJLP 6,98% 8,73% 10,47% Libor 2,88% 3,60% 4,32% |
Sensitivity analysis effects on income statement | 12/31/2018 Instruments Notional Risk Probable scenario (*) Scenario 1 Scenario 2 Hedge accounting of exports 2,076,045 Dollar (232,932) 2,011,065 4,022,130 Natural currency position (3,551,954) Dollar 398,529 (3,440,778) (6,881,556) (not including exchange derivatives above) Consolidated exchange position (1,475,909) Dollar 165,597 (1,429,713) (2,859,426) (including exchange derivatives above) Net Investment hedge accounting 48,000 Euro (7,474) 53,268 106,536 Natural currency position (48,552) Euro 7,560 (53,881) (107,762) Consolidated exchange position (552) Euro 86 (613) (1,226) (including exchange derivatives above) Dollar-to-euro swap 18,563 Dollar (1,011) 14,072 23,663 |
Sensitivity analysis of interest rate swaps | Consolidated Impact on profit or loss Changes in interest rates % p.a Assets Liabilities Probable scenario (*) Scenario 1 Scenario 2 TJLP 6,98 (954,635) (2,793) (16,658) (33,316) Libor 2.88 (4,799,586) (47,391) (34,505) (69,010) CDI 6.40 609,480 (11,667,006) (53,528) (176,924) (353,848) |
Contractual maturities of financial liabilities | Consolidated At December 31, 2018 Less than one year From one to two years From two to five years Over five years Total Borrowings, financing and debentures 5,681,797 10,192,606 8,608,664 4,459,675 28,942,742 Trade payables 3,473,822 3,473,822 Dividends and interest on capital 932,005 932,005 |
14. OTHER PAYABLES (Tables)
14. OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Payables Tables Abstract | |
Other payables | Consolidated Current Non-current 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Payables to related parties (note 19 b) 35,499 3,097 96,629 Dividends and interest on capital payable (Note 13 I) 932,005 510,692 Advances from customers 137,418 68,521 Taxes in installments 20,179 21,551 73,934 79,242 Profit sharing - employees 113,219 42,699 Taxes payable 8,631 8,410 Provision from consumption and services 392,612 336,886 Third party materials in our possession 45,915 231 Other payables 28,010 31,303 48,134 41,671 1,704,857 1,014,980 227,328 129,323 |
15. INCOME TAX AND SOCIAL CON_2
15. INCOME TAX AND SOCIAL CONTRIBUTION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax And Social Contribution Tables Abstract | |
Income tax and social contribution income (expense) | Consolidated 12/31/2018 12/31/2017 12/31/2016 Income tax and social contribution income (expense) Current (827,229) (358,981) (206,178) Deferred 576,895 (50,128) (60,368) (250,334) (409,109) (266,546) |
Reconciliation of income tax and social contribution income (expense) | Consolidated 12/31/2018 12/31/2017 12/31/2016 Profit/(Loss) before income tax and social contribution 5,450,917 520,338 (576,951) Tax rate 34% 34% 34% Income tax and social contribution at combined statutory rate (1,853,312) (176,915) 196,163 Adjustment to reflect the effective rate: Equity in results of affiliated companies 50,134 42,431 22,072 Profit with differentiated rates or untaxed (46,006) 37,605 (287,502) Transfer pricing adjustment (74,836) (34,746) (63,638) Tax loss carryforwards without recognizing deferred taxes (27,683) (368,612) (821,920) Indebtdness limit (38,486) (39,378) (35,391) Unrecorded deferred taxes on temporary differences (11,964) 541,655 643,990 Deferred Income Tax and social contribution on temporary differences 971,972 (Losses)/Reversal for deferred income and social contribution tax credits 835,937 (403,080) 44,691 Income taxes and social contribution on foreign profit (30,219) (29,964) (35,613) Amortization – Goodwill Metalic 31,439 Tax incentives 36,710 14,358 22,673 Deferred taxes on exchange variation in equity (43,667) Other permanent deductions (additions) (18,914) 7,537 16,490 Income tax and social contribution in profit for the period (250,334) (409,109) (266,546) Effective tax rate 5% 79% -46% |
Deferred income tax and social contribution | Consolidated 12/31/2016 Movement 12/31/2017 Movement 12/31/2018 Shareholders' P&L Others Shareholders' P&L Others Deferred Income tax losses 970,800 245,846 (79,412) 1,137,234 (177,378) (616) 959,240 Social contribution tax losses 340,629 94,843 (28,588) 406,884 (39,303) (223) 367,358 Temporary differences (2,288,175) 26,778 (390,817) (2,344) (2,654,558) 21,208 793,576 839 (1,838,935) - Provision for tax. social security, labor, civil and environmental risks 256,936 12,963 269,899 (5,846) 3,184 267,237 - Provision for environmental liabilities 95,048 (8,197) 86,851 (19,708) 67,143 - Asset impairment losses 93,908 (5,475) 88,433 (7,092) 81,341 - Inventory impairment losses 35,703 10,111 45,814 (7,054) 38,760 - (Gains)/losses on financial instruments (2,300) 1,388 (912) (2,407) (3,319) - (Gains)/losses on available-for-sale financial assets 705,929 316,563 417,659 530,292 (584,856) 363,095 - Actuarial liability (pension and healthcare plan) 134,578 180,834 (41,065) (1,289) 273,058 (48) 3,022 276,032 - Accrued supplies and services 123,101 (55,385) 67,716 27,928 95,644 - Allowance for doubtful debts 42,008 5,208 47,216 14,199 61,415 - Goodwill on merger 815 (207) 608 (608) - Unrealized ex change differences (1) 1,589,651 56,493 (134,992) 1,511,152 (500,620) 1,010,532 - (Gain) on loss of control over Transnordestina (92,180) (92,180) (92,180) - Cash flow hedge accounting 148,471 (13,992) 134,479 355,563 490,042 - Aquisition Fair Value SWT/CBL (199,001) (21,143) 26,833 (193,311) (16,683) 37,880 (172,114) - Deferred taxes non computed (1,324,437) (566,173) (3,255) (115) (212,236) (38,359) (2,345) (252,940) - (Losses) estimated/ reversals to deferred taxes credits (3,013,730) 82,769 (123,056) (4,130,928) (885,069) 1,929,424 (3,086,573) - Business Combination (1,072,824) 32,288 (1,040,536) 9,724 (1,030,812) - Other 190,149 (8,573) (107,976) (940) 72,660 37,153 (62,051) 47,762 Total (976,746) 26,778 (50,128) (110,344) (1,110,440) 21,208 576,895 (512,337) Total Deferred Assets 70,151 63,119 89,394 Total Deferred Liabilities (1,046,897) (1,173,559) (601,731) Total Deferred (976,746) (1,110,440) (512,337) |
Deferred tax assets on tax losses and temporary differences | Nature Description Tax losses In recent periods, the Company started to incur tax losses, mostly because of high financial expenses, since it holds substantially all loans and financings of CSN group and presented a taxable income in 2018. Temporary differences Foreign exchange differences Since 2012 the Company opted for the taxation of exchange differences on a cash basis. As the Company has operated without taxable profit it would not make sense to use this deductibility year by year (accrual basis). As a result of the cash basis tax treatment, taxes are only due, and expenses are only deductible at the time of debt settlement. Losses on Usiminas shares The losses on Usiminas shares are recognized on an accrual basis, but the taxable event will occur only at the time of divestment. Other provisions Various accounting provisions are recognized on an accrual basis, but their taxation occurs only at the time of its realization, such as provisions for contingencies, impairment losses, environmental liabilities, etc. |
Income tax and social contribution recognized in shareholders' equity | Consolidated 12/31/2018 12/31/2017 Income tax and social contribution Actuarial gains on defined benefit pension plan 176,700 176,658 Estimated losses for deferred income tax and social contribution credits - actuarial gains (180,048) (180,834) Changes in the fair value of assets measured at fair value through other comprehensive income (530,292) Estimated losses for deferred income tax and social contribution assets - assets measured at fair value through other comprehensive income 530,292 Exchange differences on foreign operations (325,350) (369,017) Cash flow hedge accounting 490,041 134,478 Estimated losses for deferred income tax and social contribution credits - cash flow hedge (490,041) (134,478) (328,698) (373,193) |
16. TAX INSTALLMENTS PROGRAMS (
16. TAX INSTALLMENTS PROGRAMS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tax Installments Programs Tables Abstract | |
Taxes in installments | Consolidated Current Non-current 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Federal REFIS Law 11.941/09 12,100 12,552 18,895 20,083 Federal REFIS Law 12.865/13 6,240 5,984 52,661 56,381 Other taxes in installments 1,839 3,015 2,378 2,778 20,179 21,551 73,934 79,242 |
17. PROVISION FOR TAX, SOCIAL_2
17. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Provision For Tax Social Security Labor Civil And Environmental Risks And Judicial Deposits Tables Abstract | |
Accrued amounts and judicial deposits | Consolidated Accrued liabilities Judicial deposits 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Tax 118,490 113,451 46,321 52,542 Social security 70,084 74,522 50,898 50,098 Labor 362,228 451,173 214,625 202,104 Civil 210,264 148,212 22,024 22,752 Environmental 31,390 37,733 1,900 1,826 Deposit of a guarantee 12,182 10,029 792,456 825,091 347,950 339,351 Classification Current 106,503 105,958 Non-current 685,953 719,133 347,950 339,351 792,456 825,091 347,950 339,351 |
Changes in the provision for tax, social security, labor, civil and environmental risks | Consolidated Current + Non-current Nature 12/31/2017 Additions Net update on amount Net utilization of reversal 12/31/2018 Tax 113,451 17,941 12,081 (24,983) 118,490 Social security 74,522 2,348 1,996 (8,782) 70,084 Labor 451,173 29,250 55,344 (173,539) 362,228 Civil 148,212 14,921 56,092 (8,961) 210,264 Environmental 37,733 31 6,021 (12,395) 31,390 825,091 64,491 131,534 (228,660) 792,456 |
Legal matters with possible risk of loss | 12/31/2018 12/31/2017 Income tax / Social contribution - Assessment Notice and imposition of fine (AIIM) - Capital gain for an alleged sale of the shares of its subsidiary NAMISA. 11,812,071 11,073,961 Assessment Notice and Imposition of fine (AIIM) - Income tax/ Social contribution - gloss of goodwill deductions generated by the reverse merger of Big Jump by NAMISA 3,722,888 2,623,179 Assessment Notice and Imposition of fine (AIIM) - Income tax/ Social contribution - gloss of interest on prepayment arising from supply contracts of iron ore and port 2,165,088 2,500,606 Notices of violation and imposition of fine - Income taxes and social contribution due to profits from foreign subsidiaries (years 2008,2010 and 2011) (1) 1,891,149 1,858,640 Tax foreclosures - ICMS - Electricity credits 974,479 920,306 Installment MP 470 - Insufficient impairment of tax loss and negative basis (1) 704,739 Offset of taxes that were not approved by the Federal Revenue Service - IRPJ/CSLL, PIS/COFINS e IPI 1,481,382 1,685,648 Disallowance of the ICMS credits - Transfer of iron ore 529,607 499,006 ICMS - Refers to the transfer of imported raw material at an amount lower than the price disclosed in the import documentation 294,527 275,233 Disallowance of the tax losses arising on adjustments to the SAPLI 516,583 491,862 Taxes - ICMS - shipment and return of goods for industrialization (2) 816,199 Assessment Notice- Income tax- Capital Gain of CFM vendors located outside 243,007 203,185 CFEM - Divergence on the understanding between CSN and DNPM on the calculation basis 311,582 290,249 Infraction Notice - ICMS - Question on sales to Incentivized Zone 976,438 170,330 Other tax (federal, state, and municipal) lawsuits 3,625,167 3,065,131 Social security lawsuits 287,823 278,600 Law suit applied by Brazilian antitrust authorities (CADE) 101,683 98,189 Other civil lawsuits 922,171 1,111,944 Labor and social security lawsuits 1,537,078 1,569,712 Environmental process - ACP TAC / PAC - Compliance with environmental obligations (3) 216,878 Tax Enforcement Fine Volta Grande IV (4) 75,530 67,620 Others Enviromental lawsuits 144,235 117,858 31,612,488 30,639,075 |
18. PROVISION FOR ENVIRONMENT_2
18. PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Provision For Environmental Liabilities And Asset Retirement Obligations Tables Abstract | |
Provision for environmental liabilities and asset retirement obligation | Consolidated 12/31/2018 12/31/2017 Environmental liabilities 198,386 255,517 Asset retirement obligations 83,380 81,496 281,766 337,013 |
19. RELATED-PARTY BALANCES AN_2
19. RELATED-PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Relatedparty Balances And Transactions Tables Abstract | |
Proposed dividends | Companies Proposed Dividends Vicunha Aços 439,913 Rio Iaco Participações S.A. 37,640 Total at 12/31/2018 477,553 Total at 12/31/2017 - |
Transactions with subsidiaries, joint ventures, associates, exclusive funds and other related parties, by transaction - assets and liabilities | Consolidated Current Non-current Total 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Assets Trade receivables(note 6) 93,317 115,388 93,317 115,388 Dividends receivable (Note 8) 46,171 41,528 46,171 41,528 Actuarial asset (note 8) 99,894 111,281 99,894 111,281 Financial investments/ investments 92,332 53 92,332 53 Loans (note 8) 2,675 2,441 706,605 554,694 709,280 557,135 Other receivables (note 8) 3,649 3,577 218,840 30,770 222,489 34,347 238,144 162,987 1,025,339 696,745 1,263,483 859,732 Liabilities Other payables (Note 14) Accounts payable 29,286 799 96,629 125,915 799 Provision for consumption and services 6,213 2,298 6,213 2,298 Trade payables 135,801 134,974 135,801 134,974 Actuarial liabilities 7,982 41,937 7,982 41,937 171,300 138,071 104,611 41,937 275,911 180,008 |
Transactions with subsidiaries, joint ventures, associates, exclusive funds and other related parties, by transaction - statement of income | 12/31/2018 12/31/2017 12/31/2016 P&L Revenues Sales 1,278,751 880,145 878,992 Interest (note 25) 64,888 61,549 60,964 Expenses Purchases (1,418,282) (1,176,930) (1,099,851) Interest (note 25) (16,092) (3,185) Foreing exchange and monetary variations, net 13,611 (18,398) (77,124) (235,236) (181,478) |
Transactions with subsidiaries, joint ventures, associates, exclusive funds and other related parties, by company - assets and liabilities | Assets Liabilities Current Non-current Total Current Non-current Total Joint-venture and Joint-operation Itá Energética S.A. 2,550 2,550 MRS Logística S.A. 46,243 46,243 101,264 96,629.00 197,893 CBSI - Companhia Brasileira de Serviços e Infraestrutura 3 3 37,362 37,362 Transnordestina Logística S.A (1) 1,611 925,445 927,056 13,652 13,652 47,857 925,445 973,302 154,828 96,629 251,457 Other related parties CBS Previdência 99,894 99,894 7,982 7,982 Banco Fibra (2) 92,334 92,334 Usiminas Panatlântica (3) 53,027 53,027 15,643 15,643 Ibis Participações e Serviços Other related parties 2,092 2,092 829 829 147,453 99,894 247,347 16,472 7,982 24,454 Associates Arvedi Metalfer do Brasil S.A. 42,834 42,834 Total at 12/31/2018 238,144 1,025,339 1,263,483 171,300 104,611 275,911 Total at 12/31/2017 162,987 696,745 859,732 138,071 41,937 180,008 |
Transactions with subsidiaries, joint ventures, associates, exclusive funds and other related parties, by company - statement of income | Sales Purchases Finance income(expenses), net Exchange rate variations, net Total Joint ventures and Joint Operation MRS Logística S,A, (1,111,695) (16,092) (1,127,787) CBSI - Companhia Brasileira de Serviços e Infraestrutura 47 (180,332) (180,285) Transnordestina Logística S.A. (1) 367 (15,667) 50,003 34,703 414 (1,307,694) 33,911 (1,273,369) Other related parties Banco Fibra (2) 14,651 13,611 28,262 Usiminas (382) (382) Panatlântica (3) 1,174,984 (94,515) 1,080,469 Ibis Participações e Serviços (4,501) (4,501) Other related parties 2,745 (11,190) (8,445) 1,177,729 (110,588) 14,651 13,611 1,095,403 Associates Arvedi Metalfer do Brasil S,A, 100,608 234 100,842 Discontinued Operation Cia Metalic Nordeste Total 1,278,751 (1,418,282) 48,796 13,611 (77,124) 12/31/2017 Sales Purchases Finance income(expenses), net Total Joint ventures and Joint Operation Itá Energética S.A (32,275) (32,275) MRS Logística S.A. (934,279) (934,279) CBSI - Companhia Brasileira de Serviços e Infraestrutura 55 (150,758) (150,703) Transnordestina Logística S.A. (1) 2,549 (7,916) 53,261 47,894 2,604 (1,125,228) 53,261 (1,069,363) Other related parties Fundação CSN 13 (1,118) (1,105) Banco Fibra (2) 6,290 6,290 Usiminas (427) (427) Panatlântica (3) 872,047 (43,949) 828,098 Ibis Participações e Serviços (5,915) (5,915) Other related parties 2,821 (293) 2,528 874,881 (51,702) 6,290 829,469 Associates Arvedi Metalfer do Brasil S,A, 2,660 1,998 4,658 Discontinued Operation Cia Metalic Nordeste Total 880,145 (1,176,930) 61,549 (235,236) |
Key management personnel compensation | 12/31/2018 12/31/2017 12/31/2016 P&L Short-term benefits for employees and officers 32,848 39,721 71,852 Post-employment benefits 105 110 306 32,953 39,831 72,158 |
20. SHAREHOLDERS' EQUITY (Table
20. SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders Equity Tables Abstract | |
Ownership structure | 12/31/2018 12/31/2017 Number of common shares % of total shares % of voting capital Number of common shares % of total shares % of voting capital Vicunha Aços S.A. (*) 679,522,254 48.97% 49.24% 682,855,454 49.21% 50.32% Rio Iaco Participações S.A. (*) 58,193,503 4.19% 4.22% 58,193,503 4.19% 4.29% NYSE (ADRs) 284,152,319 20.48% 20.59% 303,590,364 21.88% 22.37% Other shareholders 358,246,471 25.82% 25.95% 312,493,726 22.52% 23.02% Total shares outstanding 1,380,114,547 99.47% 100.00% 1,357,133,047 97.81% 100.00% Treasury shares 7,409,500 0.53% 30,391,000 2.19% Total shares 1,387,524,047 100.00% 1,387,524,047 100.00% |
Share buyback programs | Program Board’s Authorization Authorized quantity Program period Average buyback price Minimum and maximum buyback price Number bought back Share cancelation Disposal of shares Balance in treasury 1º 3/13/2014 70,205,661 From 3/14/2014 to 4/14/2014 R$ 9.34 R$ 9,22 and R$ 9,45 2,350,000 2,350,000 2º 4/15/2014 67,855,661 From 4/16/2014 to 5/23/2014 R$ 8.97 R$ 8,70 and R$ 9,48 9,529,500 11,879,500 3º 5/23/2014 58,326,161 From 5/26/2014 to 6/25/2014 R$ 9.21 R$ 8,61 and R$ 9,72 31,544,500 43,424,000 4º 6/26/2014 26,781,661 From 6/26/2014 to 7/17/2014 R$ 10.42 R$ 9,33 and R$ 11,54 26,781,661 70,205,661 7/18/2014 Not applicable Not applicable 60,000,000 (1) 10,205,661 5º 7/18/2014 64,205,661 From 7/18/2014 to 8/18/2014 R$ 11.40 R$ 11.40 240,400 10,446,061 8/18/2014 Not applicable Not applicable 10,446,061 (1) 6º 8/18/2014 63,161,055 From 8/19/2014 to 9/25/2014 R$ 9.82 R$ 9,47 and R$ 10,07 6,791,300 6,791,300 7º 9/29/2014 56,369,755 From 9/29/2014 to 2/29/2014 R$ 7.49 R$ 4,48 and R$ 9,16 21,758,600 28,549,900 8º 12/30/2014 34,611,155 From 12/31/2014 to 3/31/2015 R$ 5.10 R$ 4,90 and R$ 5,39 1,841,100 30,391,000 9º (*) 03/31/2015 32,770,055 From 4/01/2015 to 6/30/2015 30,391,000 04/20/2018 30,391,000 From 4/20/2018 to 4/30/2018 Não aplicável Não aplicável R$ 0.00 R$ 0.00 22,981,500 (2) 7,409,500 |
Position of treasury shares | Quantity purchased (Units) Amount paid for the shares Share price Market value of shares in 12/31/2018 (*) Minimum Maximum Average 7,409,500 R$ 58,264 R$ 4.48 R$ 10.07 R$ 7.86 R$ 65,500 |
Basic earnings (loss) per share | 12/31/2018 12/31/2017 12/31/2016 Common Shares (Loss) profit for the year Continued operations 5,074,136 10,272 (925,186) Discontinued operations - - (9,561) 5,074,136 10,272 (934,747) Weighted average number of shares 1,373,250,595 1,357,133,047 1,357,133,047 Basic and diluted EPS Continued Operations 3.69498 0.00757 (0.68172) Discontinued Operations - - (0.00704) 3.69498 0.00757 (0.68876) |
21. PAYMENT TO SHAREHOLDERS (Ta
21. PAYMENT TO SHAREHOLDERS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payment To Shareholders Tables Abstract | |
Deliberate and paid dividends | Allocation of profits 12/31/2018 Profit for the year 5,074,136 Absorption of deficits (1,291,689) Legal reserve (189,122) Allocation of profits 3,593,325 Proposed destination: Mandatory minimum dividends (898,332) Intended for statutory reserve of working capital (2,694,993) In current liabilities Dividends to be paid on December 31, 2017 2,209 Mandatory minimum dividends 898,332 Dividends to be paid on December 31, 2018 900,541 Weighted average number of shares 1,373,251 Dividends per share approved 0.65416 Approval Year Dividends Payment Year Dividends 2017 (*) 0,00 2017 0,00 2018 898,332 2018 0,00 Total approved 898,332 Total paid |
22. NET SALES AND SERVICES RE_2
22. NET SALES AND SERVICES REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Net Sales And Services Revenue Tables Abstract | |
Net sales and services revenue | Consolidated 12/31/2018 12/31/2017 12/31/2016 Gross revenue Domestic market 14,752,901 11,487,011 10,206,195 Foreign market 11,817,559 9,980,572 9,571,630 26,570,460 21,467,583 19,777,825 Deductions Canceled sales, discounts and rebates (234,851) (262,989) (190,415) Taxes on sales (3,366,724) (2,679,993) (2,438,461) (3,601,575) (2,942,982) (2,628,876) Net revenue 22,968,885 18,524,601 17,148,949 |
23. EXPENSES BY NATURE (Tables)
23. EXPENSES BY NATURE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Expenses By Nature Tables Abstract | |
Expenses by nature | Consolidated 12/31/2018 12/31/2017 12/31/2016 Raw materials and inputs (6,759,275) (5,404,801) (4,518,718) Labor cost (2,743,460) (2,400,579) (2,482,111) Supplies (1,782,576) (1,451,437) (1,384,437) Maintenance cost (services and materials) (1,326,894) (1,145,974) (1,203,294) Outsourcing services (2,368,387) (2,062,352) (2,228,786) Freights (1,802,541) (1,362,087) (1,263,734) Depreciation, Amortization and depletion (Note 10,11, and 26) (1.175.107) (1,408,765) (1,278,816) Others (905,128) (591,094) (495,274) (18,863,368) (15,827,089) (14,855,170) Classified as: Cost of sales (16,105,657) (13,596,141) (12,640,042) Selling expenses (2,263,688) (1,815,107) (1,696,896) General and administrative expenses (494,023) (415,841) (518,232) (18,863,368) (15,827,089) (14,855,170) |
Depreciation, amortization and depletion | ConsColi Consolidated 12/31/2018 12/31/2017 12/31/2016 Production costs 1,145,793 1,376,862 1,241,425 Sales expenses 5,850 8,851 9,163 General and Administrative Expenses 23,464 23,052 28,228 1,175,107 1,408,765 1,278,816 Other operating expenses (*) 97,914 44,570 43,681 1,273,021 1,453,335 1,322,497 |
24. OTHER OPERATING INCOME (E_2
24. OTHER OPERATING INCOME (EXPENSES) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Operating Income Expenses | |
Other operating income (expenses) | Co Consolidated solidado 12/31/2018 12/31/2017 12/31/2016 Other operating income Indemnities 46,256 6,106 26,871 Rentals and leases 5,430 1,841 1,483 Dividends received 9,188 3,248 567 PIS and COFINS to compensate (1) 1,102,365 Extemporaneous PIS/COFINS credits 203,504 Contractual fines 3,965 2,970 2,501 Gain on business combination 66,496 Actuarial pension plan 20,983 36,952 48,790 Gain ons sale of assets held for sale 252,023 Updated shares – Fair Value through profit or loss (VJR) (Note 13) 1,655,813 Eletrobrás's compulsory loan (3) 755,151 Gain on sale of LLC (note 3) 1,164,294 Debts write off - intragroup Other revenues 27,749 18,018 61,274 4,036,043 824,286 663,509 Other operating expenses Taxes and fees (26,197) (136,348) (88,249) Write-off/(Provision) of judicial deposits (54,330) (38,258) (64,886) Expenses with environmental liabilities, net (60,311) (7,156) (5,023) Expenses from tax, social security, labor, civil and environmental lawsuits, net (59,219) (95,744) (151,534) Contractual fines (2) (104,086) (16,624) Depreciation of equipment paralyzed and amortization of intangible assets (note 23) (97,914) (44,570) (43,681) Write- off of PP&E and intangible assets (notes 10 and 11) (27,260) (28,127) (88,339) Estimated (Loss)/reversal in inventories (149,704) (15,775) (29,316) Studies and project engineering expenses (33,738) (32,956) (31,156) Research and development expenses (2,688) (3,944) (2,269) Advisory expenses (508) (3,419) (20,865) Healthcare plan expenses (108,369) (97,837) (80,489) Reversal/(Provision) industrial reestructuring (17,490) 5,807 96,390 Cash flow hedge realized (Note 13 b) (370,191) (92,140) (77,444) Impairment of fair value of Transnordestina (387,989) Other expenses (218,701) (56,477) (85,256) (1,330,706) (646,944) (1,076,730) Other operating income (expenses), net 2,705,337 177,342 (413,221) (1) Refers to non-inclusion of ICMS in the PIS and COFINS calculation basis, see note nº8. (2) In 2018, refers to the contractual amendment with the jointly-owned subsidiary MRS, for the revision of the “Anual Transportation Plan”. (3) This is a net amount, certain and due, arising from the final judicial decision favorable to the Company, which is irreversible and irrevocable, in order to apply the STJ's consolidated position on the subject, which culminated in sentencing the Eletrobrás to the payment of the correct interest and monetary correction of the Compulsory Loan. The final judicial decision, as well as the certainty about the amounts involved in the settlement of the judgment (judicial procedure to request the satisfaction of the right), allowed the conclusion that the right to receive this value is certain. Thus, in line with our legal and accounting advisors, we recognize the credits in noncurrent assets against the result of Other Operating Revenues. The monetary adjustment of 2018 is presented in the note nº25 - Financial Income (Expenses). |
25. FINANCIAL INCOME (EXPENSE_2
25. FINANCIAL INCOME (EXPENSES) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Income Expenses | |
Financial income (expenses) | Consolidated 12/31/2018 12/31/2017 12/31/2016 Financial income Related parties (note 19 b) 64,888 61,549 60,964 Income from financial investments 111,235 162,292 301,401 Gain from derivative 28,503 5,829 Gain on repurchase of debt securities 146,214 Other income (1) 1,134,391 42,730 129,182 1,310,514 295,074 643,590 Financial expenses Borrowings and financing - foreign currency (988,821) (827,841) (930,508) Borrowings and financing - local currency (1,020,867) (1,610,714) (2,229,849) Related parties (note 19 b) (16,092) (3,185) Capitalized interest (notes 10 and 30) 71,611 91,957 215,794 Losses on derivatives (362) Interest, fines and late payment charges (71,100) (72,343) (38,002) Commission and bank fees (182,179) (159,088) (155,249) PIS/COFINS over financial income (84,404) (21,926) (39,154) Other financial expenses 19,614 (142,296) (102,450) (2,272,238) (2,742,251) (3,282,965) Inflation adjustment and exchange differences, net Inflation adjustments, net (1,035) (10,556) 7,865 Exchange rates, net (532,883) (5,665) 921,310 Exchange gain (losses) on derivatives (1) (229) (812,227) (533,919) (16,450) 116,948 Financial income (expenses), net (1,495,643) (2,463,627) (2,522,427) Statement of gains and (losses) on derivative transactions Future Dollar (805,760) Dollar - to - euro swap (1) (229) (6,467) (1) (229) (812,227) Swap Pré x CDI (299) Swap CDI x Pré (63) Future DI 28,503 5,829 28,503 5,467 (1) 28,274 (806,760) |
26. SEGMENT INFORMATION (Tables
26. SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Information Tables Abstract | |
Consolidated results | 12/31/2018 P&L Steel Mining Logistics Energy Cement Corporate expenses/elimination Consolidated Port Railroads Metric tons (thou.) (*) 5,068,758 34,780,756 (4,961,345) Net revenues Domestic market 10,328,372 972,360 266,378 1,506,114 410,606 588,230 (2,718,623) 11,353,437 Foreign market 5,305,771 5,012,421 1,297,256 11,615,448 Total net revenue (note 22) 15,634,143 5,984,781 266,378 1,506,114 410,606 588,230 (1,421,367) 22,968,885 Cost of sales and services (12,613,216) (3,585,691) (189,999) (1,049,071) (286,734) (544,266) 2,163,320 (16,105,657) Gross profit 3,020,927 2,399,090 76,379 457,043 123,872 43,964 741,953 6,863,228 General and administrative expenses (984,980) (144,754) (35,423) (106,412) (27,948) (95,893) (1,362,301) (2,757,711) Depreciation (note 23) 609,274 366,547 20,368 258,985 17,285 115,411 (212,763) 1,175,107 Proportionate EBITDA of joint ventures 568,045 568,045 Adjusted EBITDA 2,645,221 2,620,883 61,324 609,616 113,209 63,482 (265,066) 5,848,669 Sales by geographic area Asia 40,681 4,422,377 1,297,256 5,760,314 North America 1,506,041 1,506,041 Latin America 369,830 369,830 Europe 3,330,991 590,044 3,921,035 Others 58,228 58,228 Foreign market 5,305,771 5,012,421 1,297,256 11,615,448 Domestic market 10,328,372 972,360 266,378 1,506,114 410,606 588,230 (2,718,623) 11,353,437 Total 15,634,143 5,984,781 266,378 1,506,114 410,606 588,230 (1,421,367) 22,968,885 12/31/2017 P&L Steel Mining Logistics Energy Cement Corporate expenses/elimination Consolidated Port Railroads Metric tons (thou.) (*) 4,921,719 32,576,843 (5,359,571) Net revenues Domestic market 7,818,552 829,268 238,240 1,416,612 407,671 487,129 (2,491,006) 8,706,466 Foreign market 5,140,471 3,791,703 885,961 9,818,135 Total net revenue (note 22) 12,959,023 4,620,971 238,240 1,416,612 407,671 487,129 (1,605,045) 18,524,601 Cost of sales and services (10,537,547) (3,005,840) (156,997) (1,024,696) (285,085) (512,762) 1,926,786 (13,596,141) Gross profit 2,421,476 1,615,131 81,243 391,916 122,586 (25,633) 321,741 4,928,460 General and administrative expenses (963,822) (158,958) (27,943) (94,921) (27,098) (80,823) (877,383) (2,230,948) Depreciation (note 23) 658,587 490,805 15,752 294,571 17,265 121,801 (190,016) 1,408,765 Proportionate EBITDA of joint ventures 538,170 538,170 Adjusted EBITDA 2,116,241 1,946,978 69,052 591,566 112,753 15,345 (207,488) 4,644,447 Sales by geographic area Asia 23,364 3,592,226 885,961 4,501,551 North America 2,009,337 2,009,337 Latin America 506,951 506,951 Europe 2,564,823 197,701 2,762,524 Others 35,996 1,776 37,772 Foreign market 5,140,471 3,791,703 885,961 9,818,135 Domestic market 7,818,552 829,268 238,240 1,416,612 407,671 487,129 (2,491,006) 8,706,466 Total 12,959,023 4,620,971 238,240 1,416,612 407,671 487,129 (1,605,045) 18,524,601 12/31/2016 P&L Steel Mining Logistics Energy Cement Corporate expenses/elimination Consolidated Port Railroads Metric tons (Thou) (*) 4,857,174 36,983,297 (4,062,774) Net revenues Domestic market 6,980,087 542,028 207,722 1,319,907 269,095 490,608 (2,079,534) 7,729,913 Foreign market 4,535,821 4,039,875 843,340 9,419,036 Total Net Revenue (note 22) 11,515,908 4,581,903 207,722 1,319,907 269,095 490,608 (1,236,194) 17,148,949 Cost of sales and services (9,393,237) (3,099,236) (141,542) (914,361) (195,994) (467,373) 1,571,701 (12,640,042) Gross profit 2,122,671 1,482,667 66,180 405,546 73,101 23,235 335,507 4,508,907 General and administrative expenses (914,927) (185,149) (25,180) (83,020) (25,196) (74,528) (907,128) (2,215,128) Depreciation (note 23) 679,074 461,287 13,430 227,792 17,140 73,030 (192,937) 1,278,816 Proportionate EBITDA of joint ventures 502,345 502,345 Adjusted EBITDA 1,886,818 1,758,805 54,430 550,318 65,045 21,737 (262,213) 4,074,940 Sales by geographic area Asia 30,815 3,519,713 843,340 4,393,868 North America 1,891,865 1,891,865 Latin America 259,640 259,640 Europe 2,324,580 434,378 2,758,958 Others 28,921 85,784 114,705 Foreign market 4,535,821 4,039,875 843,340 9,419,036 Domestic market 6,980,087 542,028 207,722 1,319,907 269,095 490,608 (2,079,534) 7,729,913 Total 11,515,908 4,581,903 207,722 1,319,907 269,095 490,608 (1,236,194) 17,148,949 (*) The ore sales volumes presented in this note take into consideration Company sales and the interest in its subsidiaries and joint ventures. |
EBITDA and Adjusted EBITDA | 12/31/2018 12/31/2017 12/31/2016 Net income / (loss) for the year 5,200,583 111,229 (853,058) Result from discontinued operations 9,561 Depreciation / amortization / depletion (note 23) 1,175,107 1,408,765 1,278,816 Income tax and social contribution (note 15) 250,334 409,109 266,546 Financial income / (expenses) (note 25) 1,495,643 2,463,627 2,522,427 EBITDA 8,121,667 4,392,730 3,224,292 Other operating (income) / expenses (note 24) (2,705,337) (177,342) 413,221 Equity in results of affiliated companies (135,706) (109,111) (64,918) Proportionate EBITDA of joint ventures 568,045 538,170 502,345 Adjusted EBITDA (*) 5,848,669 4,644,447 4,074,940 |
27. EMPLOYEE BENEFITS (Tables)
27. EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefits Tables Abstract | |
Actuarial employee benefit assets and liabilities | Consolidated 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Actuarial asset Actuarial liabilities Benefits of pension plans (99,894) (111,281) 7,982 41,937 Post-employment healthcare benefits - - 897,137 866,784 (99,894) (111,281) 905,119 908,721 |
Reconciliation of employee benefits' assets and liabilities | 12/31/2018 12/31/2017 Present value of defined benefit obligation 3,087,433 3,077,849 Fair value of plan assets (3,403,906) (3,305,356) Deficit(Surplus) (316,473) (227,507) Restriction to actuarial assets due to recovery limitation 224,561 158,163 Liabilities (Assets), net (91,912) (69,344) Liabilities 7,982 41,937 Assets (99,894) (111,281) Net (assets) recognized in the balance sheet (91,912) (69,344) |
Changes in present value of the defined benefit obligation | 12/31/2018 12/31/2017 Present value of obligations at the beginning of the year 3,077,849 2,872,442 Cost of service 1,169 1,285 Interest cost 304,132 322,359 Benefits paid (280,493) (284,777) Actuarial loss/(gain) (15,224) 166,540 Present value of obligations at the end of the year 3,087,433 3,077,849 |
Changes in fair value of the plan assets | 12/31/2018 12/31/2017 Fair value of plan assets at the beginning of the year (3,305,356) (3,193,493) Interest income (327,830) (360,013) Benefits Paid 280,493 284,777 Return on plan assets (less interest income) (51,213) (36,627) Fair value of plan assets at the end of the year (3,403,906) (3,305,356) |
Employee benefits recognized in the income statement | 12/31/2018 12/31/2017 12/31/2016 Cost of current service 1,169 1,285 1,244 Interest cost 304,132 322,359 311,361 Expected return on plan assets (327,830) (360,013) (345,521) Interest on the asset ceiling effect 16,340 26,843 22,189 (6,189) (9,526) (10,727) Total unrecognized costs / (income) (*) - 6 7 Total costs / (income) recognized in the income statement (6,189) (9,532) (10,734) Total costs / (income), net (*) (6,189) (9.526) (10,727) |
Changes in actuarial gains and losses | 12/31/2018 12/31/2017 12/31/2016 Actuarial losses and (gains) (15,224) 166,540 393,743 Return on plan assets (less interest income) (51,213) (36,627) (427,523) Change in the asset’s limit (excluding interest income) 50,058 (97,882) 41,796 (16,379) 32,031 8,016 Actuarial losses and (gains) recognized in other comprehensive income (16,379) 32,037 8,023 Unrecognized actuarial (gains) - (6) (7) Total cost of actuarial losses and (gains) (*) (16,379) 32,031 8,016 |
Breakdown of actuarial gains or losses | 12/31/2018 Loss due to change in demographic assumptions (139,813) Loss due to change in financial assumptions 46,917 Loss due to experience adjustments 77,672 Return on plan assets (less interest income) (51,213) Change in asset limit (excluding interest income) 50,058 Actuarial losses and (gains) (16.379) |
Actuarial assumptions used | 12/31/2018 12/31/2017 Actuarial financing method Projected unit credit Projected unit credit Functional currency Real (R$) Real (R$) Recognition of plan assets Fair value Fair value Nominal discount rate Millennium Plan: 9.69% Plan 35%: 9.60% Supplementation: 9.59% Millennium Plan: 10.42% Plan 35%: 10.30% Supplementation: 10.32% Inflation rate 4.75% 5.00% Nominal salary increase rate 5.80% 6.05% Nominal benefit increase rate 4.75% 5.00% Rate of return on investments Millennium Plan: 9.69% Millennium Plan: 10.42% Plan 35%: 9.60% Supplementation: 9.59% Plan 35%: 10.30% Supplementation: 10.32% General mortality table Millennium Plan: AT-2000 smoothed down by 10% segregated by gender. Plans 35%: AT-2000 Male aggravated by 15%. Supplementation: AT-2000 aggravated by 10% segregated by gender. Millennium Plan, Plans 35% and Supplementation of Average Salary: AT 2000 segregated by gender (10% smoothed) Disability table 35% Plan and Supplementation: Light Medium. Millenium Plan: Prudential (Ferr. Retirement) 35% Plan and Supplementation: Light Medium. Millenium Plan: Prudential (Ferr. Retirement) Disability mortality table Winklevoss - 1% Winklevoss - 1% Turnover table Millenium plan 5% per annum, zero for plans 35% and Supplementation. Millenium plan 5% per annum, zero for plans 35% and Supplementation. Retirement age 100% on the first date he/she becomes eligible for programmed retirement benefit under the plan 100% on the first date he/she becomes eligible for programmed retirement benefit under the plan Household composition of active participants 95% will be married at the time of retirement, with the wife being 4 years younger than the husband 95% will be married at the time of retirement, with the wife being 4 years younger than the husband |
Average life expectancy | Plan covering 35% of the average salary Average salary supplementation plan Mixed supplementary benefit plan (Milênio Plan) 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Longevity at age of 65 for current participants Male 18.00 21.00 18.74 20.45 21.00 21.00 Female 18.00 23.00 22.23 23.02 23.00 23.00 Longevity at age of 65 for current participants who are 40 Male 40.00 43.00 40.60 42.69 43.00 43.00 Female 40.00 47.00 45.37 46.29 47.00 47.00 |
Allocation of plan assets | 12/31/2018 12/31/2017 Variable income 141,705 4,16% 50,966 1,54% Fixed income 3,050,099 89,61% 3,085,783 93,36% Real estate 52,091 1,53% 44,083 1,33% Others 160,011 4,70% 124,524 3,77% Total 3,403,906 100,00% 3,305,356 100,00% |
Quantitative sensitivity analysis regarding the significant assumptions for the pension plans | 12/31/2018 Plan covering 35% of the average salary Average salary supplementation plan Mixed supplementary benefit plan (Milênio Plan) Assumption: Discount rate Sensitivity level 0.5% -0.5% 0.5% -0.5% 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 409 (458) 1,650 (1,897) (502) 316 Effect on present value of obligations (13,281) 15,342 (70,755) 76,222 (50,666) 54,396 Assumption: Salary growth Sensitivity level 0.5% -0.5% 0.5% -0.5% 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 252 (223) Effect on present value of obligations 2,028 (1,792) Assumption: Benefit adjustment Sensitivity level 0.5% -0.5% 0.5% -0.5% 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 1,439 (1,350) 7,578 (7,079) 5,720 (5,232) Effect on present value of obligations 14,685 (13,778) 79,305 (74,101) 57,166 (52,366) Assumption: Mortality table Sensitivity level 1.0% -1.0% 1.0% -1.0% 1.0% -1.0% Effect on current service cost and on interest on actuarial obligations (1,052) 1,054 (4,877) 4,845 (1,120) 1,128 Effect on present value of obligations (10,680) 10,706 (50,807) 50,468 (12,179) 12,165 |
Forecast benefit payments of the defined benefit plans | Payments 2018 Year 1 244,606 Year 2 252,778 Year 3 269,332 Year 4 265,261 Year 5 271,570 Next 5 years 1,436,738 Total forecast payments 2,740,285 |
Post-employment health care plan amounts | 12/31/2018 12/31/2017 Present value of obligations 897,137 866,784 Liabilities 897,137 866,784 |
Reconciliation of the healthcare liabilities | 12/31/2018 12/31/2017 Actuarial liability at the beginning of the year 866,784 691,262 Expenses recognized in income for the year 85,748 77,269 Sponsor's contributions transferred in prior year (71,632) (72,192) Recognition of actuarial loss/ (gain) 16,237 170,445 Actuarial liability at the end of the year 897,137 866,784 |
Actuarial gains and losses recognized in shareholders' equity | 12/31/2018 12/31/2017 12/31/2016 Actuarial gain /(loss) on obligation 16,237 170,445 210,257 Gain/(loss) recognized in shareholders' equity 16,237 170,445 210,257 |
Weighted average life expectancy | 12/31/2018 12/31/2017 Longevity at age of 65 for current participants Male 19.55 19.55 Female 22.17 22.17 Longevity at age of 65 for current participants who are 40 Male 41.59 41.59 Female 45.30 45.30 |
Actuarial assumptions used for calculating postemployment healthcare benefits | 12/31/2018 12/31/2017 Biometric and Demographic General mortality table AT 2000 segregated by gender AT 2000 segregated by gender Financial Actuarial nominal discount rate 9.62% 10.34% Inflation 4.75% 5.00% Real increase in medical costs based on age (Aging Factor) 0.5% - 3.00% real a.a. 0.5% - 3.00% real a.a. Nominal increase medical costs growth rate 8.15% 8.41% Average medical cost (Claim cost) 1,054.65 1,001.69 |
Quantitative sensitivity analysis regarding the significant assumptions for the postemployment healthcare plans | 12/31/2018 Healthcare Plan Assumption: Discount rate Sensitivity level 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 909 (992) Effect on present value of obligations (35,530) 38,727 Assumption: Medical Inflation Sensitivity level 1.0% -1.0% Effect on current service cost and on interest on actuarial obligations 8,091 (6,925) Effect on present value of obligations 84,560 (72,369) Assumption: Mortality table Sensitivity level 1.0% -1.0% Effect on current service cost and on interest on actuarial obligations (2,161) 2,148 Effect on present value of obligations (22,582) 22,451 |
Forecast benefit payments of the postemployment healthcare plans | Forecast benefit payments 2018 Year 1 78,100 Year 2 80,787 Year 3 83,232 Year 4 85,386 Year 5 87,224 Next 5 years 450,767 Total forecast payments 865,496 |
28. COMMITMENTS (Tables)
28. COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments Tables Abstract | |
Take-or-pay contracts | Payments in the period Type of service 2017 2018 2019 2020 2021 After 2021 Total Transportation of iron ore, coal, coke, steel products, cement and mining products. 957,373 406,920 1,024,674 962,399 831,166 3,761,232 6,579,471 Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets, coal and clinquer. 563,743 658,166 453,801 40,780 8,419 503,000 Processing of furnace sludge and slag resulting from the production process of pig iron and steel. 8,880 9,467 7,074 7,074 7,074 8,842 30,064 Manufacturing, repair, recovery and production of ingot casting machine units. 52,103 21,533 7,968 3,246 3,246 5,952 20,412 1,582,099 1,096,086 1,493,517 1,013,499 849,905 3,776,026 7,132,947 |
Minimum future payments related to government concessions | Company / Concession Type of service 2019 2020 2021 After 2021 Total FTL (Ferrovia Transnordestina Logística) 30 - year concession granted on December 31,1997, renewable for another 30 years, to develop public service and operating the railway system in northeastern Brazil.The northeastern railway system covers 4.238 Kilometers of railway network and operates in Maranhão, Piauí, Ceará, Paraíba, Pernambuco, Alagoas and Rio Grande do Norte. 9,396 9,396 9,396 50,895 79,083 CSN Mineração S.A. Concession to operate the TECAR a solid bulk terminal, one of the four terminals that make up the Port of Itaguai, located in Rio de Janeiro. The concession was renewed and the agreement expires in 2047. 133,021 133,021 133,021 3,458,541 3,857,604 Tecon 25-year concession started in July 2001. On May 10, 2017, was approved the Decree nº 9,048, which changes de concession extension period for port operations. It was established that the requested extension period, added to the initial period, cannot exceed 70 years 33,779 35,176 36,638 175,053 280,646 176,196 177,593 179,055 3,684,489 4,217,333 |
30. ADDITIONAL INFORMATION TO_2
30. ADDITIONAL INFORMATION TO CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Additional Information To Cash Flows Tables Abstract | |
Additional information related to statement of cash flows | Consolidated 12/31/2018 12/31/2017 12/31/2016 Income tax and social contribution paid 336,962 268,847 456,227 Addition to PP&E with interest capitalization (note 10 and 25) 71,611 91,957 215,794 Acquisition of fixed assets through loans 10,792 4,265 7,437 Non-monetary transaction with joint venture 20,264 419,365 385,333 679,458 |
2. SUMMARY OF SIGNIFICANT ACC_4
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Direct | Subsidiary 1 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Islands VII Corp. | CSN Islands VII Corp. |
Interest in subsidiaries | 100.00% | 100.00% |
Core business | Financial transactions | Financial transactions |
Direct | Subsidiary 2 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Islands IX Corp. (1) | CSN Islands XI Corp. |
Interest in subsidiaries | 100.00% | |
Core business | Financial transactions | Financial transactions |
Direct | Subsidiary 3 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Islands X Corp. (1) | CSN Islands XII Corp. |
Interest in subsidiaries | 100.00% | |
Core business | Financial transactions | Financial transactions |
Direct | Subsidiary 4 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Islands XI Corp. | CSN Minerals S.L.U. |
Interest in subsidiaries | 100.00% | 100.00% |
Core business | Financial transactions | Equity interests |
Direct | Subsidiary 5 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Islands XII Corp. | CSN Export Europe, S.L.U. |
Interest in subsidiaries | 100.00% | 100.00% |
Core business | Financial transactions | Financial transactions and Equity interests |
Direct | Subsidiary 6 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Minerals S.L.U. (1) | CSN Metals S.L.U. |
Interest in subsidiaries | 100.00% | |
Core business | Equity interests | Equity interests and Financial transactions |
Direct | Subsidiary 7 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Export Europe, S.L.U. (1) | CSN Americas S.L.U. |
Interest in subsidiaries | 100.00% | |
Core business | Financial transactions and Equity interests | Equity interests and Financial transactions |
Direct | Subsidiary 8 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Metals S.L.U. (1) | CSN Steel S.L.U. |
Interest in subsidiaries | 100.00% | |
Core business | Equity interests and Financial transactions | Equity interests and Financial transactions |
Direct | Subsidiary 9 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Americas S.L.U. (1) | TdBB S.A |
Interest in subsidiaries | 100.00% | |
Core business | Equity interests and Financial transactions | Equity interests |
Direct | Subsidiary 10 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Steel S.L.U. | Sepetiba Tecon S.A. |
Interest in subsidiaries | 100.00% | 99.99% |
Core business | Equity interests and Financial transactions | Port services |
Direct | Subsidiary 11 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | TdBB S.A (*) | Minérios Nacional S.A. |
Interest in subsidiaries | 100.00% | 99.99% |
Core business | Equity interests | Mining and Equity interests |
Direct | Subsidiary 12 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Sepetiba Tecon S.A. | Companhia Florestal do Brasil |
Interest in subsidiaries | 99.99% | 99.99% |
Core business | Port services | Reforestation |
Direct | Subsidiary 13 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Minérios Nacional S.A. | Estanho de Rondônia S.A. |
Interest in subsidiaries | 99.99% | 99.99% |
Core business | Mining and Equity interests | Tin Mining |
Direct | Subsidiary 14 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Companhia Florestal do Brasil | Companhia Metalúrgica Prada |
Interest in subsidiaries | 99.99% | 99.99% |
Core business | Reforestation | Manufacture of containers and distribution of steel products |
Direct | Subsidiary 15 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Estanho de Rondônia S.A. | CSN Gestão de Recursos Financeiros Ltda. |
Interest in subsidiaries | 99.99% | 99.99% |
Core business | Tin Mining | Management of funds and securities portfolio |
Direct | Subsidiary 16 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Companhia Metalúrgica Prada | CSN Mineração S.A. |
Interest in subsidiaries | 99.99% | 87.52% |
Core business | Manufacture of containers and distribution of steel products | Mining and Equity interests |
Direct | Subsidiary 17 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Gestão de Recursos Financeiros Ltda. (*) | CSN Energia S.A. |
Interest in subsidiaries | 99.99% | 99.99% |
Core business | Management of funds and securities portfolio | Sale of electric power |
Direct | Subsidiary 18 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Mineração S.A. | FTL - Ferrovia Transnordestina Logística S.A. |
Interest in subsidiaries | 87.52% | 90.78% |
Core business | Mining and Equity interests | Railroad logistics |
Direct | Subsidiary 19 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Energia S.A. | Nordeste Logística S.A. |
Interest in subsidiaries | 99.99% | 99.99% |
Core business | Sale of electric power | Port services |
Direct | Subsidiary 20 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | FTL - Ferrovia Transnordestina Logística S.A. | CGPAR - Construção Pesada S.A. (3) |
Interest in subsidiaries | 91.69% | |
Core business | Railroad logistics | Mining support services and Equity interests |
Direct | Subsidiary 21 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Nordeste Logística S.A. | |
Interest in subsidiaries | 99.99% | |
Core business | Port services | |
Direct | Subsidiary 22 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Aceros México CSN (2) | |
Interest in subsidiaries | 0.08% | |
Core business | Commercial representation, sales of steel and related activities | |
Direct | Subsidiary 23 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Inova Ltd.(3) | |
Interest in subsidiaries | 100.00% | |
Core business | Advisory and implementation of new development projects | |
Direct | Joint Operation 1 | Proportionate Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Joint operations name | Itá Energética S.A. | Itá Energética S.A. |
Interest in joint operations | 48.75% | 48.75% |
Core business | Electric power generation | Electric power generation |
Direct | Joint Operation 2 | Proportionate Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Joint operations name | Consórcio da Usina Hidrelétrica de Igarapava | Consórcio da Usina Hidrelétrica de Igarapava |
Interest in joint operations | 17.92% | 17.92% |
Core business | Electric power consortium | Electric power generation |
Direct | Joint Ventures 1 | Equity Method | ||
Disclosure of subsidiaries [line items] | ||
Joint ventures name | MRS Logística S.A. | MRS Logistica S.A. |
Interest in joint ventures | 18.64% | 18.64% |
Core business | Railroad transportation | Railroad transportation |
Direct | Joint Venture 2 | Equity Method | ||
Disclosure of subsidiaries [line items] | ||
Joint ventures name | Aceros Del Orinoco S.A. | Aceros Del Orinoco S.A. |
Interest in joint ventures | 31.82% | 31.82% |
Core business | Dormant company | Dormant company |
Direct | Joint Venture 3 | Equity Method | ||
Disclosure of subsidiaries [line items] | ||
Joint ventures name | CBSI - Companhia Brasileira de Serviços de Infraestrutura | CBSI - Companhia Brasileira de Serviços de Infraestrutura |
Interest in joint ventures | 50.00% | 50.00% |
Core business | Equity interests and product sales and iron ore | Equity interests and product sales and iron ore |
Direct | Joint Venture 4 | Equity Method | ||
Disclosure of subsidiaries [line items] | ||
Joint ventures name | Transnordestina Logística S.A. | Transnordestina Logística S.A. |
Interest in joint ventures | 46.30% | 46.30% |
Core business | Railroad logistics | Railroad logistics |
Direct | Associate 1 | Equity Method | ||
Disclosure of subsidiaries [line items] | ||
Associates name | Arvedi Metalfer do Brasil S.A. | Arvedi Metalfer do Brasil S.A. |
Interest in associates | 20.00% | 20.00% |
Core business | Metallurgy and Equity interests | Metallurgy Equity interests |
Indirect | Subsidiary 1 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Companhia Siderúrgica Nacional | Companhia Siderúrgica Nacional LLC |
Interest in subsidiaries | 100.00% | |
Core business | Steel | Steel |
Indirect | Subsidiary 2 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Lusosider Projectos Siderúrgicos S.A. | CSN Europe Lda. |
Interest in subsidiaries | ||
Core business | Equity interests and product sales | Financial transactions, product sales and Equity interests |
Indirect | Subsidiary 3 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Lusosider Aços Planos, S. A. | CSN Ibéria Lda. |
Interest in subsidiaries | ||
Core business | Steel and Equity interests | Financial transactions, product sales and Equity interests |
Indirect | Subsidiary 4 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Resources S.A. | Lusosider Projectos Siderúrgicos S.A. |
Interest in subsidiaries | 99.94% | |
Core business | Financial transactions and Equity interests | Equity interests and product sales |
Indirect | Subsidiary 5 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Companhia Brasileira de Latas | Lusosider Aços Planos, S. A. |
Interest in subsidiaries | 99.99% | |
Core business | Sale of cans and containers in general and Equity interests | Steel and Equity interests |
Indirect | Subsidiary 6 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Companhia de Embalagens Metálicas MMSA | CSN Resources S.A. |
Interest in subsidiaries | 100.00% | |
Core business | Production and sale of cans and related activities | Financial transactions and Equity interests |
Indirect | Subsidiary 7 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Companhia de Embalagens Metálicas - MTM | Companhia Brasileira de Latas |
Interest in subsidiaries | 99.99% | |
Core business | Production and sale of cans and related activities | Sale of cans and containers in general and Equity interests |
Indirect | Subsidiary 8 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Steel Holdings 1, S.L.U. | Companhia de Embalagens Metálicas MMSA |
Interest in subsidiaries | 99.67% | |
Core business | Financial transactions, product sales and Equity interests | Production and sale of cans and related activities |
Indirect | Subsidiary 9 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Productos Siderúrgicos S.L. | Companhia de Embalagens Metálicas - MTM |
Interest in subsidiaries | 99.67% | |
Core business | Financial transactions, product sales and Equity interests | Production and sale of cans and related activities |
Indirect | Subsidiary 10 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Stalhwerk Thüringen GmbH | CSN Steel Holdings 1, S.L.U. |
Interest in subsidiaries | 100.00% | |
Core business | Production and sale of long steel and related activities | Financial transactions, product sales and Equity interests |
Indirect | Subsidiary 11 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Steel Sections UK Limited (*) | CSN Productos Siderúrgicos S.L. |
Interest in subsidiaries | 100.00% | |
Core business | Sale of long steel | Financial transactions, product sales and Equity interests |
Indirect | Subsidiary 12 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Steel Sections Polska Sp.Z.o.o | Stalhwerk Thüringen GmbH |
Interest in subsidiaries | 100.00% | |
Core business | Financial transactions, product sales and Equity interests | Production and sale of long steel and related activities |
Indirect | Subsidiary 13 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Asia Limited | CSN Steel Sections UK Limited |
Interest in subsidiaries | 100.00% | |
Core business | Commercial representation | Sale of long steel |
Indirect | Subsidiary 14 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Mining Holding, S.L | CSN Steel Sections Polska Sp.Z.o.o |
Interest in subsidiaries | 100.00% | |
Core business | Financial transactions, product sales and Equity interests | Financial transactions, product sales and Equity interests |
Indirect | Subsidiary 15 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Mining GmbH | CSN Asia Limited |
Interest in subsidiaries | 100.00% | |
Core business | Financial transactions, product sales and Equity interests | Commercial representation |
Indirect | Subsidiary 16 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Mining Asia Limited (8) | CSN Mining Holding, S.L |
Interest in subsidiaries | 87.52% | |
Core business | Commercial representation | Financial transactions, product sales and Equity interests |
Indirect | Subsidiary 17 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Mining GmbH | |
Interest in subsidiaries | 87.52% | |
Core business | Financial transactions, product sales and Equity interests | |
Indirect | Subsidiary 18 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Mining Asia Limited | |
Interest in subsidiaries | 87.52% | |
Core business | Commercial representation | |
Indirect | Subsidiary 19 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Aceros México CSN | |
Interest in subsidiaries | 100.00% | |
Core business | Commercial representation,sale of steel and related activity | |
Indirect | Subsidiary 20 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Lusosider Ibérica S.A. | |
Interest in subsidiaries | 99.94% | |
Core business | Steel, commercial and industrial activities and equity interests | |
Indirect | Subsidiary 21 | Full Consolidation | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CSN Mining Portugal, Unipessoal Lda. | |
Interest in subsidiaries | 87.52% | |
Core business | Sale and commercial representation | |
Indirect | Joint Ventures 1 | Equity Method | ||
Disclosure of subsidiaries [line items] | ||
Joint ventures name | MRS Logística S.A. | MRS Logistica S.A. |
Interest in joint ventures | 16.30% | 16.30% |
Core business | Railroad transportation | Railroad transportation |
2. SUMMARY OF SIGNIFICANT ACC_5
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - Direct - Full Consolidation | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Exclusive Funds 1 | ||
Disclosure of subsidiaries [line items] | ||
Exclusive fund name | Diplic II - Private credit balanced mutual fund | Diplic II - Private credit balanced mutual fund |
Interest in exclusive fund | 100.00% | 100.00% |
Core business | Investment fund | Investment fund |
Exclusive Funds 2 | ||
Disclosure of subsidiaries [line items] | ||
Exclusive fund name | Caixa Vértice - Private credit balanced mutual fund | Caixa Vértice - Private credit balanced mutual fund |
Interest in exclusive fund | 100.00% | 100.00% |
Core business | Investment fund | Investment fund |
Exclusive Funds 3 | ||
Disclosure of subsidiaries [line items] | ||
Exclusive fund name | VR1 - Private credit balanced mutual fund | VR1 – Private Credit balanced mutual fund |
Interest in exclusive fund | 100.00% | 100.00% |
Core business | Investment fund | Investment fund |
2. SUMMARY OF SIGNIFICANT ACC_6
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Concession 1 | |
Disclosure of detailed information about service concession arrangements [line items] | |
Concession name | Sepetiba Tecon S.A. (TECON) |
Net book value | R$ 347000 |
Classification in balance sheet | Fixed assets and intangible (Software) |
Concession 2 | |
Disclosure of detailed information about service concession arrangements [line items] | |
Concession name | Tecar (CSN Mineração) |
Net book value | R$ 1616000 |
Classification in balance sheet | Fixed assets and intangible (Software) |
Concession 3 | |
Disclosure of detailed information about service concession arrangements [line items] | |
Concession name | FTL - Ferrovia Transnordestina Logística S.A. (FTL) |
Net book value | R$ 227000 |
Classification in balance sheet | Fixed assets |
Concession 4 | |
Disclosure of detailed information about service concession arrangements [line items] | |
Concession name | Transnordestina logística S.A. (TLSA) |
Net book value | R$ 8439000 |
Classification in balance sheet | Investment |
2. SUMMARY OF SIGNIFICANT ACC_7
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) | 12 Months Ended |
Dec. 31, 2018 | |
Standard 1 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Standard | IFRS16 – Leases |
Main items introduced by the standard | This new standard defines the principles for recognition, measurement, presentation and disclosure of leases and introduces a single model for the accounting of leases in the balance sheet for the lessees. A lessee recognizes a right of use asset that represents his right to use the leased asset and a lease liability that represents his obligation to make lease payments. Optional exemptions are available for short-term leases and low-value items. For lessors, accounting treatment remains practically the same, with the classification of leases as operating leases or financial leases. |
Effective date | Jan. 1, 2019 |
Standard 2 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Standard | IFRIC 23 – Uncertainty over Income Tax Treatments |
Main items introduced by the standard | Can be unclear how tax law applies to a particular transaction or circumstance. This interpretation complements the CPC 32/ IAS 12 – Income Tax, clarify how to reflect the effects of uncertainty over income tax treatments. |
Effective date | Jan. 1, 2019 |
Standard 3 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Standard | The Conceptual framework for financial reporting |
Main items introduced by the standard | Review of the Conceptual Framework by establishing a comprehensive set of concepts for guidance on financial performance reporting; better definitions and guidelines, highlighting the definition of a liability; and clarification in relevant areas. |
Effective date | Jan. 1, 2020 |
2. SUMMARY OF SIGNIFICANT ACC_8
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - R$ / $ | Dec. 31, 2018 | Dec. 31, 2017 |
BRL/USD | ||
Disclosure of fair value measurement of assets [line items] | ||
Exchange rate | 3.8748 | 3.3080 |
BRL/EUR | ||
Disclosure of fair value measurement of assets [line items] | ||
Exchange rate | 4.4390 | 3.9693 |
3. SALE OF FOREIGN SUBSIDIARY_2
3. SALE OF FOREIGN SUBSIDIARY (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2018 | |
USD | ||
SaleOfForeignSubsidiaryLineItems [Line Items] | ||
Receipt from disposal of the investment | R$ 395661 | |
Deposit in Warranty | 2,000 | |
Contractual expenses and fees (d) | 2,339 | |
Basis price for alienation (a) | 400,000 | |
Working Capital Receivable (b) (*) | 34,008 | |
Shareholder's Equity da LLC (c) | 133,445 | |
Net gain of alienation = (a+b-c-d) | 298,224 | |
USD | Change in working capital | ||
SaleOfForeignSubsidiaryLineItems [Line Items] | ||
Working Capital Receivable (b) (*) | 3,581 | |
Net gain of alienation = (a+b-c-d) | 3,581 | |
R | ||
SaleOfForeignSubsidiaryLineItems [Line Items] | ||
Receipt from disposal of the investment | 1,525,590 | |
Deposit in Warranty | 7,712 | |
Contractual expenses and fees (d) | 9,021 | |
Basis price for alienation (a) | 1,542,323 | |
Working Capital Receivable (b) (*) | 131,127 | |
Shareholder's Equity da LLC (c) | 514,537 | |
Net gain of alienation = (a+b-c-d) | 1,149,892 | |
R | Change in working capital | ||
SaleOfForeignSubsidiaryLineItems [Line Items] | ||
Receipt from disposal of the investment | R$ 1525590 | |
Deposit in Warranty | 7,712 | |
Contractual expenses and fees (d) | 9,021 | |
Basis price for alienation (a) | 1,542,323 | |
Working Capital Receivable (b) (*) | 14,402 | 145,529 |
Shareholder's Equity da LLC (c) | 514,537 | |
Net gain of alienation = (a+b-c-d) | R$ 14402 | R$ 1164294 |
3. SALE OF FOREIGN SUBSIDIARY_3
3. SALE OF FOREIGN SUBSIDIARY (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||||
Current Assets | R$ 12014483 | R$ 11881496 | ||||
Cash and cash equivalents | 2,248,004 | 3,411,572 | R$ 4871162 | R$ 7861052 | ||
Trade Receivable | 2,078,182 | 2,197,078 | ||||
Inventory | 5,039,560 | 4,464,419 | ||||
Non-current assets | 35,313,041 | 33,328,474 | ||||
Property, plant and equipment | 18,046,864 | 17,964,839 | 18,135,879 | |||
TOTAL ASSETS | 47,327,524 | 45,209,970 | ||||
LIABILITIES | ||||||
Current Liabilities | 11,438,552 | 10,670,050 | ||||
Tax payables | 251,746 | 264,097 | ||||
Non-current liabilities | 25,875,532 | 26,251,691 | ||||
Borrowings and Financing | 5,019,978 | |||||
Shareholders' equity (disposal) | R$ 10013440 | 8,288,229 | 7,384,521 | R$ 7091288 | ||
LLC | ||||||
ASSETS | ||||||
Current Assets | R$ 418014 | |||||
Cash and cash equivalents | 760,000 | R$ 33930 | R$ 38860 | R$ 112428 | ||
Trade Receivable | 114,266 | |||||
Inventory | 299,373 | |||||
Other current assets | 3,615 | |||||
Non-current assets | 191,431 | |||||
Other non-current assets | 205 | |||||
Property, plant and equipment | 191,226 | |||||
TOTAL ASSETS | 609,445 | |||||
LIABILITIES | ||||||
Current Liabilities | 89,810 | |||||
Borrowings and Financing | 5,446 | |||||
Social and Labor obligations | 5,526 | |||||
Trade payables | 76,400 | |||||
Tax payables | 1,398 | |||||
Other payables | 1,040 | |||||
Non-current liabilities | 5,098 | |||||
Borrowings and Financing | 5,098 | |||||
Shareholders' equity (disposal) | 514,537 | |||||
TOTAL LIABILITIES | R$ 609445 |
3. SALE OF FOREIGN SUBSIDIARY_4
3. SALE OF FOREIGN SUBSIDIARY (Details 2) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SaleOfForeignSubsidiaryLineItems [Line Items] | |||||
Net Revenues | R$ 22968885 | R$ 18524601 | R$ 17148949 | ||
Cost of sales and services | (16,105,657) | (13,596,141) | (12,640,042) | ||
Gross profit | 6,863,228 | 4,928,460 | 4,508,907 | ||
Selling expenses | (2,263,688) | (1,815,107) | (1,696,896) | ||
General and administrative expenses | (494,023) | (415,841) | (518,232) | ||
Other operating expenses, net | (1,330,706) | (646,944) | (1,076,730) | ||
Profit before financial income (expenses) and taxes | 6,946,560 | 2,983,965 | 1,945,476 | ||
Financial income (expenses), net | (1,495,643) | (2,463,627) | (2,522,427) | ||
Profit (loss) before taxes | 5,450,917 | 520,338 | (576,951) | ||
Income tax and social contribution | (250,334) | (409,109) | (266,546) | ||
Profit (loss) for the year | R$ 5200583 | R$ 111229 | R$ 853058 | ||
LLC | |||||
SaleOfForeignSubsidiaryLineItems [Line Items] | |||||
Net Revenues | R$ 997061 | R$ 472409 | |||
Cost of sales and services | (888,850) | (388,322) | |||
Gross profit | 108,211 | 84,087 | |||
Selling expenses | (24,650) | (10,521) | |||
General and administrative expenses | (15,649) | (9,531) | |||
Other operating expenses, net | (844) | (358) | |||
Profit before financial income (expenses) and taxes | 67,068 | 63,677 | |||
Financial income (expenses), net | (2,641) | (428) | |||
Profit (loss) before taxes | 64,427 | 63,249 | |||
Income tax and social contribution | (1,730) | 0 | |||
Profit (loss) for the year | R$ 62697 | R$ 63249 |
3. SALE OF FOREIGN SUBSIDIARY_5
3. SALE OF FOREIGN SUBSIDIARY (Details 3) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SaleOfForeignSubsidiaryLineItems [Line Items] | |||||
Net cash provided by (used) by operating activities | R$ 2208105 | R$ 571851 | R$ 275918 | ||
Net cash provided by (used) by investing activities | (98,459) | (1,049,224) | (2,305,168) | ||
Net cash provided by (used) by financing activities | (3,257,186) | (993,755) | (883,012) | ||
Increase (decrease) in cash and cash equivalents for the period | (1,163,568) | (1,459,590) | (2,989,890) | ||
Cash and cash equivalents at the beginning of the year | R$ 3411572 | R$ 4871162 | 3,411,572 | 4,871,162 | 7,861,052 |
Cash and cash equivalents at the end of the year | 2,248,004 | 3,411,572 | 4,871,162 | ||
LLC | |||||
SaleOfForeignSubsidiaryLineItems [Line Items] | |||||
Net cash provided by (used) by operating activities | 149,691 | (69,216) | |||
Net cash provided by (used) by investing activities | (6,269) | (2,492) | |||
Net cash provided by (used) by financing activities | (176,592) | (1,860) | |||
Increase (decrease) in cash and cash equivalents for the period | (33,170) | (73,568) | |||
Cash and cash equivalents at the beginning of the year | 33,930 | 112,428 | R$ 33930 | 112,428 | |
Cash and cash equivalents at the end of the year | 760,000 | R$ 38860 | R$ 33930 | R$ 112428 | |
Net cash received from the sale of the asset | 1,525,590 | ||||
Cash and cash equivalents transferred on the sale of the assets | (760) | ||||
Working capital received | 145,529 | ||||
Net cash provided by the sale of assets | R$ 1670359 |
4. CASH AND CASH EQUIVALENTS (D
4. CASH AND CASH EQUIVALENTS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of fair value measurement of assets [line items] | ||||
Cash and banks | R$ 1124714 | R$ 193702 | ||
Short-term investments | 1,123,290 | 3,217,870 | ||
Cash and cash equivalents | 2,248,004 | 3,411,572 | R$ 4871162 | R$ 7861052 |
Brazil | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Short-term investments | 619,727 | 656,625 | ||
Brazil | Government securities | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Short-term investments | 10,247 | 12,100 | ||
Brazil | Private securities | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Short-term investments | 609,480 | 644,525 | ||
Abroad | Time deposits | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Short-term investments | R$ 503563 | R$ 2561245 |
5. FINANCIAL INVESTMENTS (Detai
5. FINANCIAL INVESTMENTS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement of assets [line items] | ||
Financial Investments | R$ 895713 | R$ 735712 |
CDB - Bank deposit certificate | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial Investments | 882,376 | 716,218 |
Government securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial Investments | R$ 13337 | R$ 19494 |
6. TRADE RECEIVABLES (Details)
6. TRADE RECEIVABLES (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement of assets [line items] | ||
Trade receivables | R$ 2078182 | R$ 2197078 |
Third parties | ||
Disclosure of fair value measurement of assets [line items] | ||
Trade receivables | 2,222,217 | 2,273,669 |
Third parties | Domestic market | ||
Disclosure of fair value measurement of assets [line items] | ||
Trade receivables | 1,369,396 | 1,290,823 |
Third parties | Foreign market | ||
Disclosure of fair value measurement of assets [line items] | ||
Trade receivables | 852,821 | 982,846 |
Allowance for doubtful accounts | ||
Disclosure of fair value measurement of assets [line items] | ||
Trade receivables | (237,352) | (191,979) |
Subtotal | ||
Disclosure of fair value measurement of assets [line items] | ||
Trade receivables | 1,984,865 | 2,081,690 |
Related parties | ||
Disclosure of fair value measurement of assets [line items] | ||
Trade receivables | R$ 93317 | R$ 115388 |
6. TRADE RECEIVABLES (Details 1
6. TRADE RECEIVABLES (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement of assets [line items] | ||
Trade receivables | R$ 2078182 | R$ 2197078 |
Third parties | ||
Disclosure of fair value measurement of assets [line items] | ||
Trade receivables | 2,222,217 | 2,273,669 |
Third parties | Current | ||
Disclosure of fair value measurement of assets [line items] | ||
Trade receivables | 1,514,847 | 1,391,839 |
Third parties | Past-due up to 30 days | ||
Disclosure of fair value measurement of assets [line items] | ||
Trade receivables | 177,287 | 167,760 |
Third parties | Past-due up to 180 days | ||
Disclosure of fair value measurement of assets [line items] | ||
Trade receivables | 47,684 | 142,346 |
Third parties | Past-due over 180 days | ||
Disclosure of fair value measurement of assets [line items] | ||
Trade receivables | R$ 482399 | R$ 571724 |
6. TRADE RECEIVABLES (Details 2
6. TRADE RECEIVABLES (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Trade Receivables | ||
Opening balance | R$ 191979 | R$ 172782 |
Expected credit losses | (53,706) | (36,697) |
Recovery of receivables | 8,333 | 17,500 |
Closing balance | R$ 237352 | R$ 191979 |
6. TRADE RECEIVABLES (Details N
6. TRADE RECEIVABLES (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Trade Receivables Details Narrative Abstract | ||
Trade receivables transaction costs | R$ 46210 | R$ 186627 |
7. INVENTORIES (Details)
7. INVENTORIES (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Inventories Details Abstract | |||
Finished goods | R$ 1362981 | R$ 1308802 | |
Work in progress | 1,122,933 | 1,135,589 | |
Raw materials | 1,560,499 | 1,050,588 | |
Spare parts | 856,097 | 814,725 | |
Iron ore | 258,612 | 278,041 | |
Advances to suppliers | 36,192 | 12,514 | |
(-) Provision for losses | (157,754) | (135,840) | R$ 101176 |
Inventories | R$ 5039560 | R$ 4464419 |
7. INVENTORIES (Details 1)
7. INVENTORIES (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Inventories Details 1Abstract | ||
Provision for inventory losses, beginning | R$ 135840 | R$ 101176 |
(Estimated losses) / Reversal of inventories with low turnover and obsolescence | (21,914) | (34,664) |
Provision for inventory losses, ending | R$ 157754 | R$ 135840 |
8. OTHER CURRENT AND NON-CURR_3
8. OTHER CURRENT AND NON-CURRENT ASSETS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement of assets [line items] | ||
Other current assets | R$ 1753024 | R$ 1072715 |
Other non-current assets | 4,285,223 | 2,528,475 |
Judicial deposits | ||
Disclosure of fair value measurement of assets [line items] | ||
Other non-current assets | 347,950 | 339,351 |
Credits with the PGFN | ||
Disclosure of fair value measurement of assets [line items] | ||
Other non-current assets | 46,774 | 46,774 |
Recoverable taxes | ||
Disclosure of fair value measurement of assets [line items] | ||
Other current assets | 1,412,335 | 866,986 |
Other non-current assets | 1,822,388 | 401,071 |
Prepaid expenses | ||
Disclosure of fair value measurement of assets [line items] | ||
Other current assets | 49,830 | 50,078 |
Other non-current assets | 49,808 | 30,741 |
Actuarial asset - related party | ||
Disclosure of fair value measurement of assets [line items] | ||
Other non-current assets | 99,894 | 111,281 |
Derivative financial instruments | ||
Disclosure of fair value measurement of assets [line items] | ||
Other current assets | 351 | |
Securities held for trading | ||
Disclosure of fair value measurement of assets [line items] | ||
Other current assets | 4,503 | 2,952 |
Iron ore inventory | ||
Disclosure of fair value measurement of assets [line items] | ||
Other non-current assets | 144,499 | 144,499 |
Northeast Investment Fund - FINOR | ||
Disclosure of fair value measurement of assets [line items] | ||
Other non-current assets | 26,598 | 26,598 |
Other receivables | ||
Disclosure of fair value measurement of assets [line items] | ||
Other non-current assets | 7,451 | 20,024 |
Loans with related parties | ||
Disclosure of fair value measurement of assets [line items] | ||
Other current assets | 2,675 | 2,441 |
Other non-current assets | 706,605 | 554,694 |
Other receivables from related parties | ||
Disclosure of fair value measurement of assets [line items] | ||
Other current assets | 3,649 | 3,577 |
Other non-current assets | 218,840 | 30,770 |
Monetary adjustment related to the Eletrobras's compulsory loan | ||
Disclosure of fair value measurement of assets [line items] | ||
Other non-current assets | 813,428 | 784,741 |
Dividends receivable | ||
Disclosure of fair value measurement of assets [line items] | ||
Other current assets | 46,171 | 41,528 |
Debit of employees | ||
Disclosure of fair value measurement of assets [line items] | ||
Other current assets | 31,645 | 33,942 |
Other credits | ||
Disclosure of fair value measurement of assets [line items] | ||
Other current assets | 117,156 | 3,667 |
Other | ||
Disclosure of fair value measurement of assets [line items] | ||
Other current assets | 12,753 | 67,544 |
Other non-current assets | R$ 988 | R$ 37931 |
9. INVESTMENTS (Details)
9. INVESTMENTS (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of fair value measurement of assets [line items] | ||||
Assets | R$ 47327524 | R$ 45209970 | ||
Shareholders' equity | 10,013,440 | 8,288,229 | R$ 7384521 | R$ 7091288 |
Fair Value Allocation | 271,116 | 271,116 | ||
Profit (loss) for the year | (5,200,583) | (111,229) | R$ 853058 | |
Classified as available for sale | ||||
Usiminas | 2,250,623 | 2,200,459 | ||
Panatlantica | 28,566 | 21,974 | ||
Classified as available for sale | 2,279,189 | 2,222,433 | ||
Others investments | ||||
Others investments | 112 | 76 | ||
Total Investments | R$ 5359497 | R$ 5228879 | ||
Joint Venture/Joint Operation 1 | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Joint venture and joint operation name | MRS Logística S.A. | |||
Number of common shares held by CSN | 126,716,070 | |||
Direct equity interest, joint venture and joint operation | 37.27% | 37.27% | ||
Assets | R$ 3125912 | R$ 3039761 | ||
Liabilities | 1,693,200 | 1,714,729 | ||
Shareholders' equity | 1,878,095 | 1,782,162 | ||
Profit (loss) for the year | R$ 194403 | R$ 171905 | ||
Joint Venture/Joint Operation 2 | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Joint venture and joint operation name | CBSI - Companhia Brasileira de Serviços de Infraestrutura | |||
Number of common shares held by CSN | 1,876,146 | |||
Direct equity interest, joint venture and joint operation | 50.00% | 50.00% | ||
Assets | R$ 25941 | R$ 16005 | ||
Liabilities | 19,997 | 13,654 | ||
Shareholders' equity | 5,944 | 2,351 | ||
Profit (loss) for the year | R$ 4501 | R$ 1785 | ||
Joint Venture/Joint Operation 3 | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Joint venture and joint operation name | Transnordestina Logística S.A. | |||
Number of common shares held by CSN | 24,168,304 | |||
Direct equity interest, joint venture and joint operation | 46.30% | 46.28% | ||
Assets | R$ 4065604 | R$ 3806380 | ||
Liabilities | 2,883,851 | 2,604,198 | ||
Shareholders' equity | 1,181,753 | 1,202,182 | ||
Fair Value Allocation | 271,116 | 271,116 | ||
Profit (loss) for the year | (20,429) | (21,357) | ||
Joint Venture/Joint Operation | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Assets | 7,217,457 | 6,862,146 | ||
Liabilities | 4,597,048 | 4,332,581 | ||
Shareholders' equity | 3,065,792 | 2,986,695 | ||
Fair Value Allocation | 271,116 | 271,116 | ||
Profit (loss) for the year | R$ 178475 | R$ 152333 | ||
Associate 1 | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Associate name | Arvedi Metalfer do Brasil | |||
Number of common shares held by CSN | 46,994,971 | |||
Direct equity interest, associate | 20.00% | 20.00% | ||
Assets | R$ 40712 | R$ 43653 | ||
Liabilities | 26,308 | 23,978 | ||
Shareholders' equity | 14,404 | 19,675 | ||
Profit (loss) for the year | (5,087) | (4,368) | ||
Associate | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Assets | 40,712 | 43,653 | ||
Liabilities | 26,308 | 23,978 | ||
Shareholders' equity | 14,404 | 19,675 | ||
Profit (loss) for the year | R$ 5087 | R$ 4368 |
9. INVESTMENTS (Details 1)
9. INVESTMENTS (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Details 1Abstract | ||
Investments in associates and joint controlled entities, beginning | R$ 5499995 | R$ 4568451 |
Capital increase | 20,579 | |
Dividends | (87,846) | (79,189) |
Comprehensive income (1) | 272 | 850,640 |
Equity in results of affiliated companies (2) | 173,145 | 147,800 |
Received from sale of Usimina's shares | (39,377) | |
Update of shares measured at Fair Value through profit or loss (VJR) (note 13 II) | 96,133 | |
Amortization of fair value - investment in MRS | (11,746) | (11,746) |
Others | 37 | 3,460 |
Investments in associates and joint controlled entities, ending | R$ 5630613 | R$ 5499995 |
9. INVESTMENTS (Details 2)
9. INVESTMENTS (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of fair value measurement of assets [line items] | |||
Equity in results of affiliated companies | R$ 173145 | R$ 147800 | |
Eliminations | |||
To cost of sales | (42,806) | (40,823) | |
To taxes | 14,554 | 13,880 | |
Others | |||
Amortization of fair value - investment in MRS | (11,746) | (11,746) | |
Others | 2,559 | ||
Equity in results adjusted | 135,706 | 109,111 | R$ 64918 |
MRS Logistica S.A. | |||
Disclosure of fair value measurement of assets [line items] | |||
Equity in results of affiliated companies | 194,403 | 171,905 | |
CBSI - Companhia Brasileira de Servicos de Infraestrutura | |||
Disclosure of fair value measurement of assets [line items] | |||
Equity in results of affiliated companies | 4,501 | 1,785 | |
Transnordestina | |||
Disclosure of fair value measurement of assets [line items] | |||
Equity in results of affiliated companies | (20,429) | (21,357) | |
Arvedi Metalfer do Brasil | |||
Disclosure of fair value measurement of assets [line items] | |||
Equity in results of affiliated companies | (5,087) | (4,368) | |
Others | |||
Disclosure of fair value measurement of assets [line items] | |||
Equity in results of affiliated companies | R$ 243 | R$ 165 |
9. INVESTMENTS (Details 3)
9. INVESTMENTS (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||||
Cash and cash equivalents | R$ 2248004 | R$ 3411572 | R$ 4871162 | R$ 7861052 |
Advances to suppliers | 36,192 | 12,514 | ||
Total current assets | 12,014,483 | 11,881,496 | ||
Non-current assets | ||||
Investments, PP&E and intangible assets | 18,046,864 | 17,964,839 | 18,135,879 | |
Tota non-current assets | 35,313,041 | 33,328,474 | ||
Total assets | 47,327,524 | 45,209,970 | ||
Current liabilities | ||||
Borrowings and financing | 5,653,439 | 6,526,902 | ||
Total current liabilities | 11,438,552 | 10,670,050 | ||
Non-current liabilities | ||||
Borrowings and financing | 23,173,635 | 22,983,942 | ||
Total non-current liabilities | 25,875,532 | 26,251,691 | ||
Shareholders' equity | 10,013,440 | 8,288,229 | R$ 7384521 | R$ 7091288 |
Total liabilities and shareholders' equity | 47,327,524 | 45,209,970 | ||
Ita Energetica | Joint Operation | ||||
Current assets | ||||
Cash and cash equivalents | 29,870 | 16,231 | ||
Advances to suppliers | 937 | 22 | ||
Other current assets | 16,718 | 16,447 | ||
Total current assets | 47,525 | 32,700 | ||
Non-current assets | ||||
Other non-current assets | 25,840 | 27,459 | ||
Investments, PP&E and intangible assets | 457,578 | 484,406 | ||
Tota non-current assets | 483,418 | 511,865 | ||
Total assets | 530,943 | 544,565 | ||
Current liabilities | ||||
Borrowings and financing | 0 | |||
Other current liabilities | 18,298 | 33,666 | ||
Total current liabilities | 18,298 | 33,666 | ||
Non-current liabilities | ||||
Borrowings and financing | 0 | |||
Other non-current liabilities | 15,113 | 3,471 | ||
Total non-current liabilities | 15,113 | 3,471 | ||
Shareholders' equity | 497,532 | 507,428 | ||
Total liabilities and shareholders' equity | 530,943 | 544,565 | ||
Joint Venture | MRS Logistica | ||||
Current assets | ||||
Cash and cash equivalents | 345,962 | 484,978 | ||
Advances to suppliers | 17,750 | 14,911 | ||
Other current assets | 736,768 | 685,311 | ||
Total current assets | 1,100,480 | 1,185,200 | ||
Non-current assets | ||||
Other non-current assets | 804,570 | 693,434 | ||
Investments, PP&E and intangible assets | 6,482,292 | 6,277,550 | ||
Tota non-current assets | 7,286,862 | 6,970,984 | ||
Total assets | 8,387,342 | 8,156,184 | ||
Current liabilities | ||||
Borrowings and financing | 422,793 | 668,947 | ||
Other current liabilities | 1,368,290 | 1,272,365 | ||
Total current liabilities | 1,791,083 | 1,941,312 | ||
Non-current liabilities | ||||
Borrowings and financing | 2,111,518 | 2,084,422 | ||
Other non-current liabilities | 640,535 | 575,170 | ||
Total non-current liabilities | 2,752,053 | 2,659,592 | ||
Shareholders' equity | 3,844,206 | 3,555,280 | ||
Total liabilities and shareholders' equity | 8,387,342 | 8,156,184 | ||
Joint Venture | CBSI | ||||
Current assets | ||||
Cash and cash equivalents | 2,091 | 101 | ||
Advances to suppliers | 73 | 37 | ||
Other current assets | 41,284 | 28,475 | ||
Total current assets | 43,448 | 28,613 | ||
Non-current assets | ||||
Other non-current assets | 2,111 | 974 | ||
Investments, PP&E and intangible assets | 6,324 | 2,423 | ||
Tota non-current assets | 8,435 | 3,397 | ||
Total assets | 51,883 | 32,010 | ||
Current liabilities | ||||
Borrowings and financing | 4,350 | 1,411 | ||
Other current liabilities | 33,844 | 25,898 | ||
Total current liabilities | 38,194 | 27,309 | ||
Non-current liabilities | ||||
Borrowings and financing | 1,262 | 0 | ||
Other non-current liabilities | 539 | 0 | ||
Total non-current liabilities | 1,801 | 0 | ||
Shareholders' equity | 11,888 | 4,701 | ||
Total liabilities and shareholders' equity | 51,883 | 32,010 | ||
Joint Venture | Transnordestina Logistica | ||||
Current assets | ||||
Cash and cash equivalents | 19,234 | 5,763 | ||
Advances to suppliers | 1,734 | 0 | ||
Other current assets | 108,851 | 49,494 | ||
Total current assets | 129,819 | 55,257 | ||
Non-current assets | ||||
Other non-current assets | 222,630 | 238,004 | ||
Investments, PP&E and intangible assets | 8,428,567 | 7,927,881 | ||
Tota non-current assets | 8,651,197 | 8,165,885 | ||
Total assets | 8,781,016 | 8,221,142 | ||
Current liabilities | ||||
Borrowings and financing | 75,906 | 52,691 | ||
Other current liabilities | 179,816 | 113,739 | ||
Total current liabilities | 255,722 | 166,430 | ||
Non-current liabilities | ||||
Borrowings and financing | 5,754,073 | 5,457,768 | ||
Other non-current liabilities | 218,839 | 434 | ||
Total non-current liabilities | 5,972,912 | 5,458,202 | ||
Shareholders' equity | 2,552,382 | 2,596,510 | ||
Total liabilities and shareholders' equity | R$ 8781016 | R$ 8221142 |
9. INVESTMENTS (Details 4)
9. INVESTMENTS (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of fair value measurement of assets [line items] | |||
Net revenues | R$ 22968885 | R$ 18524601 | R$ 17148949 |
Cost of sales and services | 16,105,657 | 13,596,141 | 12,640,042 |
Gross profit | 6,863,228 | 4,928,460 | 4,508,907 |
Operating (expense) income | 83,332 | (1,944,495) | (2,563,431) |
Finance income (costs), net | (1,495,643) | (2,463,627) | (2,522,427) |
Income before income tax and social contribution | 5,450,917 | 520,338 | (576,951) |
Current and deferred income tax and social contribution | 250,334 | 409,109 | 266,546 |
Profit (loss) for the year | (5,200,583) | (111,229) | R$ 853058 |
Ita Energetica | Joint Operation | |||
Disclosure of fair value measurement of assets [line items] | |||
Net revenues | 166,358 | 168,194 | |
Cost of sales and services | (77,829) | (76,810) | |
Gross profit | 88,529 | 91,384 | |
Operating (expense) income | (60,104) | (58,465) | |
Finance income (costs), net | (126) | 317 | |
Income before income tax and social contribution | 28,299 | 33,236 | |
Current and deferred income tax and social contribution | (9,452) | (11,105) | |
Profit (loss) for the year | 18,847 | 22,131 | |
Joint Venture | MRS Logistica | |||
Disclosure of fair value measurement of assets [line items] | |||
Net revenues | 3,726,448 | 3,492,805 | |
Cost of sales and services | (2,476,628) | (2,307,108) | |
Gross profit | 1,249,820 | 1,185,697 | |
Operating (expense) income | (313,606) | (283,151) | |
Finance income (costs), net | (151,839) | (187,295) | |
Income before income tax and social contribution | 784,375 | 715,251 | |
Current and deferred income tax and social contribution | (262,760) | (254,001) | |
Profit (loss) for the year | 521,615 | 461,250 | |
Joint Venture | CBSI | |||
Disclosure of fair value measurement of assets [line items] | |||
Net revenues | 166,080 | 135,399 | |
Cost of sales and services | (142,254) | (120,647) | |
Gross profit | 23,826 | 14,752 | |
Operating (expense) income | (10,884) | (8,340) | |
Finance income (costs), net | (179) | (1,004) | |
Income before income tax and social contribution | 12,763 | 5,408 | |
Current and deferred income tax and social contribution | (3,761) | (1,838) | |
Profit (loss) for the year | 9,002 | 3,570 | |
Joint Venture | Transnordestina Logistica | |||
Disclosure of fair value measurement of assets [line items] | |||
Net revenues | 0 | ||
Cost of sales and services | 0 | ||
Gross profit | 0 | ||
Operating (expense) income | (18,020) | (32,245) | |
Finance income (costs), net | (26,103) | (13,938) | |
Income before income tax and social contribution | (44,123) | (46,183) | |
Current and deferred income tax and social contribution | 0 | ||
Profit (loss) for the year | R$ 44123 | R$ 46183 |
9. INVESTMENTS (Details 5)
9. INVESTMENTS (Details 5) | 12 Months Ended |
Dec. 31, 2018 | |
Gross Margin | |
Disclosure of fair value measurement of assets [line items] | |
Main assumptions (Until 2057) | Based on market studies to capture operations costs and loads, according studied of market trends. |
Estimated Costs | |
Disclosure of fair value measurement of assets [line items] | |
Main assumptions (Until 2057) | Costs based on studies and market trends. |
Growth rate in perpetuity | |
Disclosure of fair value measurement of assets [line items] | |
Main assumptions (Until 2057) | Growth rate was not considered due to the projection model until the end of the concession. |
Discount rate | |
Disclosure of fair value measurement of assets [line items] | |
Main assumptions (Until 2057) | Between 5.1% to 7.9% in real terms. |
9. INVESTMENTS (Details Narrati
9. INVESTMENTS (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of fair value measurement of assets [line items] | ||
Expenses | R$ 1380193 | |
Consorcio da Usina Hidrelectrica de Igarapava | ||
Disclosure of fair value measurement of assets [line items] | ||
Property, plant and equipment | R$ 23596 | 24,759 |
Expenses | R$ 5827 | R$ 5966 |
10. PROPERTY, PLANT AND EQUIP_3
10. PROPERTY, PLANT AND EQUIPMENT (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Cost, beginning | R$ 29083214 | R$ 27726117 |
Accumulated depreciation, beginning | (11,118,375) | (9,590,238) |
Property, plant and equipment, beginning | 17,964,839 | 18,135,879 |
Translation Adjustment | 115,359 | 107,184 |
Acquisitions | 1,327,894 | 1,063,746 |
Capitalized interest | 71,611 | 91,957 |
Write-off and estimative losses, net of reversed | (38,245) | (28,057) |
Depreciation | (1,380,193) | |
Write-off - sale of subsidiary LLC | (191,226) | |
Transfers to intangible assets | 3,807 | (26,183) |
Others | (1,603) | 506 |
Property, plant and equipment, ending | 18,046,864 | 17,964,839 |
Cost, ending | 30,269,600 | 29,083,214 |
Accumulated depreciation, ending | (12,222,736) | (11,118,375) |
Land | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Cost, beginning | 279,740 | 264,629 |
Property, plant and equipment, beginning | 279,740 | 264,629 |
Translation Adjustment | 7,730 | 8,702 |
Acquisitions | 622 | 8,241 |
Write-off and estimative losses, net of reversed | 653 | |
Depreciation | (134,534) | |
Transfers to other asset categories | 30,031 | (2,485) |
Write-off - sale of subsidiary LLC | (238) | |
Property, plant and equipment, ending | 287,854 | 279,740 |
Cost, ending | 287,854 | 279,740 |
Buildings and Infrastructure | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Cost, beginning | 3,819,929 | 3,637,903 |
Accumulated depreciation, beginning | (1,022,982) | (822,224) |
Property, plant and equipment, beginning | 2,796,947 | 2,815,679 |
Translation Adjustment | 11,653 | 21,737 |
Acquisitions | 1,259 | 1,196 |
Write-off and estimative losses, net of reversed | (9,768) | 30,634 |
Depreciation | (1,043,188) | (156,580) |
Transfers to other asset categories | 685,005 | 84,281 |
Write-off - sale of subsidiary LLC | (16,950) | |
Property, plant and equipment, ending | 2,678,638 | 2,796,947 |
Cost, ending | 3,751,429 | 3,819,929 |
Accumulated depreciation, ending | (1,072,791) | (1,022,982) |
Machinery, equipment and facilities | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Cost, beginning | 21,674,362 | 20,712,371 |
Accumulated depreciation, beginning | (9,688,442) | (8,342,741) |
Property, plant and equipment, beginning | 11,985,920 | 12,369,630 |
Translation Adjustment | 86,553 | 72,811 |
Acquisitions | 144,499 | 91,251 |
Write-off and estimative losses, net of reversed | (21,468) | (30,383) |
Depreciation | (5,394) | (1,174,852) |
Transfers to other asset categories | 891 | 659,119 |
Write-off - sale of subsidiary LLC | (145,958) | |
Transfers to intangible assets | 5,559 | |
Others | (9,651) | (1,656) |
Property, plant and equipment, ending | 11,687,271 | 11,985,920 |
Cost, ending | 22,426,782 | 21,674,362 |
Accumulated depreciation, ending | (10,739,511) | (9,688,442) |
Furniture and fixtures | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Cost, beginning | 164,152 | 173,821 |
Accumulated depreciation, beginning | (131,049) | (140,658) |
Property, plant and equipment, beginning | 33,103 | 33,163 |
Translation Adjustment | 543 | 593 |
Acquisitions | 1,574 | 1,171 |
Write-off and estimative losses, net of reversed | (6) | (37) |
Depreciation | (5,656) | |
Transfers to other asset categories | (424,443) | 3,869 |
Write-off - sale of subsidiary LLC | (181) | |
Property, plant and equipment, ending | 30,530 | 33,103 |
Cost, ending | 165,331 | 164,152 |
Accumulated depreciation, ending | (134,801) | (131,049) |
Construction in progress | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Cost, beginning | 2,475,935 | 2,260,864 |
Accumulated depreciation, beginning | ||
Property, plant and equipment, beginning | 2,475,935 | 2,260,864 |
Translation Adjustment | 4,275 | 3,076 |
Acquisitions | 1,158,788 | 951,796 |
Capitalized interest | 71,611 | 91,957 |
Write-off and estimative losses, net of reversed | (4,348) | (2,536) |
Depreciation | (22,456) | |
Transfers to other asset categories | (291,484) | (805,207) |
Write-off - sale of subsidiary LLC | (6,070) | |
Transfers to intangible assets | (1,752) | (26,183) |
Others | 8,440 | 2,168 |
Property, plant and equipment, ending | 3,282,436 | 2,475,935 |
Cost, ending | 3,282,436 | 2,475,935 |
Other | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Cost, beginning | 669,096 | 676,529 |
Accumulated depreciation, beginning | (275,902) | (284,615) |
Property, plant and equipment, beginning | 393,194 | 391,914 |
Translation Adjustment | 4,605 | 265 |
Acquisitions | 21,152 | 10,091 |
Write-off and estimative losses, net of reversed | (2,655) | (26,388) |
Depreciation | (1,205,572) | (43,105) |
Transfers to other asset categories | 60,423 | |
Write-off - sale of subsidiary LLC | (21,829) | |
Others | (392) | (6) |
Property, plant and equipment, ending | 80,135 | 393,194 |
Cost, ending | 355,768 | 669,096 |
Accumulated depreciation, ending | R$ 275633 | R$ 275902 |
10. PROPERTY, PLANT AND EQUIP_4
10. PROPERTY, PLANT AND EQUIPMENT (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Construction in progress | R$ 3282436 | R$ 2475935 |
Logistics | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Construction in progress | 89,595 | 106,956 |
Logistics | Current investments to maintain current operations at their full capacity | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Construction in progress | 89,595 | 106,956 |
Mining | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Construction in progress | 1,859,108 | 1,435,332 |
Mining | Current investments to maintain current operations at their full capacity | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Construction in progress | R$ 725616 | 408,522 |
Mining | Expansion of Casa de Pedra Mine capacity production | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Start date | 2007 | |
Completion date | 2020 | |
Construction in progress | R$ 844194 | 750,999 |
Mining | Expansion of TECAR export capacity | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Start date | 2009 | |
Completion date | 2022 | |
Construction in progress | R$ 289298 | 275,811 |
Steel | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Construction in progress | 653,842 | 327,512 |
Steel | Current investments to maintain current operations at their full capacity | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Construction in progress | R$ 558922 | 228,029 |
Steel | Supply of 16 torpedo's cars for operation in the steel industry | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Start date | 2008 | |
Completion date | 2020 | |
Construction in progress | R$ 94920 | 99,483 |
Cement | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Construction in progress | 679,891 | 606,135 |
Cement | Current investments to maintain current operations at their full capacity | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Construction in progress | R$ 94728 | 51,270 |
Cement | Construction of cement plants | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Start date | 2011 | |
Completion date | 2023 | |
Construction in progress | R$ 585163 | R$ 554865 |
10. PROPERTY, PLANT AND EQUIP_5
10. PROPERTY, PLANT AND EQUIPMENT (Details 2) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Buildings | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated useful life | 38 years | 39 years |
Machinery, equipment and facilities | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated useful life | 22 years | 21 years |
Furniture and fixtures | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated useful life | 11 years | 12 years |
Other | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated useful life | 15 years | 17 years |
10. PROPERTY, PLANT AND EQUIP_6
10. PROPERTY, PLANT AND EQUIPMENT (Details 3) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Unspecified projects | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capitalized borrowing costs rate (in percent) | 6.31% | 8.63% |
10. PROPERTY, PLANT AND EQUIP_7
10. PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Unspecified projects | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capitalized borrowing costs | R$ 71611 | R$ 91957 |
11. INTANGIBLE ASSETS (Details)
11. INTANGIBLE ASSETS (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | ||
Cost, beginning | R$ 7834751 | R$ 7764371 |
Accumulated amortization, beginning | (453,375) | (396,637) |
Adjustment for accumulated recoverable value, beginning | (109,330) | (109,330) |
Intangible assets, beginning | 7,272,046 | 7,258,404 |
Translation Adjustment | 50,185 | 60,105 |
Acquisitions and expenditures | 2,200 | 622 |
Transfer of property, plant and equipment | (3,807) | 26,183 |
Write-offs/disposals | (70) | |
Amortization | (67,449) | (73,142) |
Aquisition control - CGPAR | (56) | |
Transfer of Metalic - Held for sale | ||
Intangible assets, ending | 7,253,175 | 7,272,046 |
Cost, ending | 7,903,220 | 7,834,751 |
Accumulated amortization, ending | (540,715) | (453,375) |
Adjustment for accumulated recoverable value, ending | (109,330) | (109,330) |
Goodwill | ||
Disclosure of detailed information about intangible assets [line items] | ||
Cost, beginning | 3,834,234 | 3,834,234 |
Accumulated amortization, beginning | (133,973) | (133,973) |
Adjustment for accumulated recoverable value, beginning | (109,330) | (109,330) |
Intangible assets, beginning | 3,590,931 | 3,590,931 |
Translation Adjustment | ||
Acquisitions and expenditures | ||
Transfer of property, plant and equipment | ||
Write-offs/disposals | ||
Amortization | ||
Aquisition control - CGPAR | ||
Transfer of Metalic - Held for sale | ||
Intangible assets, ending | 3,590,931 | 3,590,931 |
Cost, ending | 3,831,338 | 3,834,234 |
Accumulated amortization, ending | (131,077) | (133,973) |
Adjustment for accumulated recoverable value, ending | (109,330) | (109,330) |
Customer relationships | ||
Disclosure of detailed information about intangible assets [line items] | ||
Cost, beginning | 513,068 | 444,635 |
Accumulated amortization, beginning | (212,193) | (146,975) |
Adjustment for accumulated recoverable value, beginning | ||
Intangible assets, beginning | 300,875 | 297,660 |
Translation Adjustment | 34,107 | 41,916 |
Acquisitions and expenditures | ||
Transfer of property, plant and equipment | ||
Write-offs/disposals | ||
Amortization | (46,209) | (38,701) |
Aquisition control - CGPAR | ||
Transfer of Metalic - Held for sale | ||
Intangible assets, ending | 288,773 | 300,875 |
Cost, ending | 573,614 | 513,068 |
Accumulated amortization, ending | (284,841) | (212,193) |
Adjustment for accumulated recoverable value, ending | ||
Software | ||
Disclosure of detailed information about intangible assets [line items] | ||
Cost, beginning | 167,162 | 183,166 |
Accumulated amortization, beginning | (93,977) | (114,913) |
Adjustment for accumulated recoverable value, beginning | ||
Intangible assets, beginning | 73,185 | 68,253 |
Translation Adjustment | 148 | 183 |
Acquisitions and expenditures | 1,216 | 622 |
Transfer of property, plant and equipment | (3,807) | 26,183 |
Write-offs/disposals | (70) | |
Amortization | (15,770) | (21,986) |
Aquisition control - CGPAR | ||
Transfer of Metalic - Held for sale | ||
Intangible assets, ending | 54,972 | 73,185 |
Cost, ending | 161,067 | 167,162 |
Accumulated amortization, ending | (106,095) | (93,977) |
Adjustment for accumulated recoverable value, ending | ||
Trademark and patents | ||
Disclosure of detailed information about intangible assets [line items] | ||
Cost, beginning | 134,137 | 116,196 |
Accumulated amortization, beginning | ||
Adjustment for accumulated recoverable value, beginning | ||
Intangible assets, beginning | 134,137 | 116,196 |
Translation Adjustment | 15,872 | 17,941 |
Acquisitions and expenditures | ||
Transfer of property, plant and equipment | ||
Write-offs/disposals | ||
Amortization | ||
Aquisition control - CGPAR | ||
Transfer of Metalic - Held for sale | ||
Intangible assets, ending | 150,009 | 134,137 |
Cost, ending | 150,009 | 134,137 |
Accumulated amortization, ending | ||
Adjustment for accumulated recoverable value, ending | ||
Rights and licenses | ||
Disclosure of detailed information about intangible assets [line items] | ||
Cost, beginning | 3,185,701 | 3,185,700 |
Accumulated amortization, beginning | (13,232) | (776) |
Adjustment for accumulated recoverable value, beginning | ||
Intangible assets, beginning | 3,172,469 | 3,184,924 |
Translation Adjustment | ||
Acquisitions and expenditures | ||
Transfer of property, plant and equipment | ||
Write-offs/disposals | ||
Amortization | (5,470) | (12,455) |
Aquisition control - CGPAR | ||
Transfer of Metalic - Held for sale | ||
Intangible assets, ending | 3,166,999 | 3,172,469 |
Cost, ending | 3,185,701 | 3,185,701 |
Accumulated amortization, ending | (18,702) | (13,232) |
Adjustment for accumulated recoverable value, ending | ||
Others | ||
Disclosure of detailed information about intangible assets [line items] | ||
Cost, beginning | 449 | 440 |
Accumulated amortization, beginning | ||
Adjustment for accumulated recoverable value, beginning | ||
Intangible assets, beginning | 449 | 440 |
Translation Adjustment | 58 | 65 |
Acquisitions and expenditures | 984 | |
Transfer of property, plant and equipment | ||
Write-offs/disposals | ||
Amortization | ||
Aquisition control - CGPAR | (56) | |
Transfer of Metalic - Held for sale | ||
Intangible assets, ending | 1,491 | 449 |
Cost, ending | 1,491 | 449 |
Accumulated amortization, ending | ||
Adjustment for accumulated recoverable value, ending |
11. INTANGIBLE ASSETS (Details
11. INTANGIBLE ASSETS (Details 1) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Software | ||
Disclosure of detailed information about intangible assets [line items] | ||
Estimated useful life | 7 years | 8 years |
Customer relationships | ||
Disclosure of detailed information about intangible assets [line items] | ||
Estimated useful life | 13 years | 13 years |
11. INTANGIBLE ASSETS (Detail_2
11. INTANGIBLE ASSETS (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | R$ 3590931 | R$ 3590931 |
Trademarks | 150,009 | 134,137 |
Total | 3,740,940 | 3,725,068 |
Packaging | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | 158,748 | 158,748 |
Trademarks | ||
Total | 158,748 | 158,748 |
Long steel | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | 235,595 | 235,595 |
Trademarks | 150,009 | 134,137 |
Total | 385,604 | 369,732 |
Mining | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | 3,196,588 | 3,196,588 |
Trademarks | ||
Total | R$ 3196588 | R$ 3196588 |
11. INTANGIBLE ASSETS (Detail_3
11. INTANGIBLE ASSETS (Details 3) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | |
Discount rate | For Metal packaging, flat steel and mining, these cash flows were considered using a discount rate after taxes between 5% and 13% p.a. in |
Metal packaging | |
Disclosure of detailed information about intangible assets [line items] | |
Measurement of recoverable value | Discounted Cash Flow |
Cash flow projection | Until 2028 + perpetuity |
Gross Margin | Gross margin updated based on historical data, impacts of business restructuring and market trends |
Cost Actualization | Cost based on historical data of each product and impacts of business restructuring |
Growth rate | Growth of 1.5% p.a in real terms updated by long term inflation of 4.0% p.a. |
Flat steel | |
Disclosure of detailed information about intangible assets [line items] | |
Measurement of recoverable value | Discounted Cash Flow |
Cash flow projection | Until 2028 + perpetuity |
Gross Margin | Gross margin updated based on historical data and market trends. |
Cost Actualization | Updated costs based on historical data and market trends |
Growth rate | Growth of 1.4% p.a in real terms updated by long term inflation of 2.5% p.a. of the Euro zone |
Logistic | |
Disclosure of detailed information about intangible assets [line items] | |
Measurement of recoverable value | Discounted Cash Flow |
Cash flow projection | Until 2027 |
Gross Margin | Estimated based on market studies for cargo captures and operational costs according market trends. |
Cost Actualization | Costs based on historical data and market trends |
Growth rate | Growth of 1.5% p.a in real terms |
Mining | |
Disclosure of detailed information about intangible assets [line items] | |
Measurement of recoverable value | Discounted Cash Flow |
Cash flow projection | Until 2054 |
Gross Margin | Reflects projection of costs due to the progress of the mining plan as well as startup and ramp up of projects . Price and exchange rate projected according industry reports. |
Cost Actualization | Updated costs based on historical data, progress of mining plan as well as startup and ramp up of projects |
Growth rate | Without growth in real terms updated only by long term inflation of 4.0% p.a. |
12. BORROWINGS, FINANCING AND_3
12. BORROWINGS, FINANCING AND DEBENTURES (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing, current | R$ 5681797 | R$ 6551764 |
Borrowings and financing, noncurrent | 23,260,944 | 23,017,953 |
Transaction costs and issue premiums, current | (28,358) | (24,862) |
Transaction costs and issue premiums, noncurrent | (87,309) | (34,011) |
Borrowings and financing and transaction costs, current | 5,653,439 | 6,526,902 |
Borrowings and financing and transaction costs, noncurrent | 23,173,635 | 22,983,942 |
Foreign Currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing, current | 3,687,971 | 1,566,302 |
Borrowings and financing, noncurrent | 12,550,266 | 13,214,982 |
Foreign Currency | Prepayment | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing, current | 1,016,737 | 791,163 |
Borrowings and financing, noncurrent | 3,830,240 | 4,097,509 |
Foreign Currency | Perpetual bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing, current | 2,490,178 | |
Borrowings and financing, noncurrent | 8,613,491 | |
Foreign Currency | Others | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing, current | 181,056 | 251,630 |
Borrowings and financing, noncurrent | 106,535 | 197,131 |
Foreign Currency | Advance contract exchange (ACC) | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing, current | 523,509 | |
Borrowings and financing, noncurrent | 8,920,342 | |
Local Currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing, current | 1,993,826 | 4,985,462 |
Borrowings and financing, noncurrent | 10,710,678 | 9,802,972 |
Local Currency | Prepayment | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing, current | 103,376 | 3,303 |
Borrowings and financing, noncurrent | 100,000 | |
Local Currency | BNDES/FINAME | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing, current | 1,890,450 | 4,982,159 |
Borrowings and financing, noncurrent | R$ 10710678 | R$ 9702972 |
12. BORROWINGS, FINANCING AND_4
12. BORROWINGS, FINANCING AND DEBENTURES (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Disclosure of detailed information about borrowings [line items] | |
Total debt | R$ 28942741 |
USD | |
Disclosure of detailed information about borrowings [line items] | |
Average interest rate | 5.88% |
Total debt | R$ 12704504 |
R | |
Disclosure of detailed information about borrowings [line items] | |
Average interest rate | 8.19% |
Total debt | R$ 15950646 |
EUR | |
Disclosure of detailed information about borrowings [line items] | |
Average interest rate | 3.88% |
Total debt | R$ 287591 |
12. BORROWINGS, FINANCING AND_5
12. BORROWINGS, FINANCING AND DEBENTURES (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | R$ 23173635 | R$ 22983942 |
Bank loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 13,484,023 | |
Capital markets | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 8,882,827 | |
Development agencies | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 894,094 | |
2020 | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 6,753,338 | |
2020 | Bank loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 3,187,269 | |
2020 | Capital markets | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 3,499,177 | |
2020 | Development agencies | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 66,892 | |
2021 | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 3,439,268 | |
2021 | Bank loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 3,263,810 | |
2021 | Capital markets | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 116,003 | |
2021 | Development agencies | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 59,455 | |
2022 | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 3,182,553 | |
2022 | Bank loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 3,087,732 | |
2022 | Capital markets | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 36,667 | |
2022 | Development agencies | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 58,154 | |
2023 | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 4,082,376 | |
2023 | Bank loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 2,669,211 | |
2023 | Capital markets | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 1,356,180 | |
2023 | Development agencies | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 56,985 | |
2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 1,343,735 | |
2024 | Bank loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 1,276,001 | |
2024 | Development agencies | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 67,734 | |
After 2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 584,874 | |
After 2024 | Development agencies | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 584,874 | |
Perpetual bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | 3,874,800 | |
Perpetual bonds | Capital markets | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of borrowings and financing | R$ 3874800 |
12. BORROWINGS, FINANCING AND_6
12. BORROWINGS, FINANCING AND DEBENTURES (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Borrowings Financing And Debentures Details 2Abstract | ||
New funding transactions and amortization, beginning | R$ 29510844 | R$ 30441018 |
Funding raised | 2,154,471 | 538,771 |
Principal repayments | (5,019,978) | (1,528,023) |
Payments of charges | (2,141,710) | (2,634,931) |
Provision of charges | 2,009,688 | 2,438,555 |
Write-off - sale of subsidiary LLC | (10,544) | |
Others | 2,324,303 | 255,454 |
New funding transactions and amortization, ending | R$ 28827074 | R$ 29510844 |
12. BORROWINGS, FINANCING AND_7
12. BORROWINGS, FINANCING AND DEBENTURES (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about borrowings [line items] | |||
Raised | R$ 2154471 | ||
Payment of Principal | 5,019,978 | ||
Debt charges | 2,141,710 | R$ 2634931 | R$ 3050036 |
Prepayment | |||
Disclosure of detailed information about borrowings [line items] | |||
Payment of Principal | 849,654 | ||
Debt charges | 280,923 | ||
Bonds | |||
Disclosure of detailed information about borrowings [line items] | |||
Raised | 1,749,099 | ||
Payment of Principal | 1,632,464 | ||
Debt charges | 675,370 | ||
BNDES/FINAME | |||
Disclosure of detailed information about borrowings [line items] | |||
Raised | 10,792 | ||
Payment of Principal | 1,948,014 | ||
Debt charges | 1,173,380 | ||
Other | |||
Disclosure of detailed information about borrowings [line items] | |||
Raised | 394,580 | ||
Payment of Principal | 589,846 | ||
Debt charges | R$ 12037 |
12. BORROWINGS, FINANCING AND_8
12. BORROWINGS, FINANCING AND DEBENTURES (Details 5) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 15565802 | R$ 14948054 |
Tax foreclosure | 38,498 | 25,376 |
Other | 22,093 | 58,714 |
Total | 3,649,736 | 15,032,144 |
Total in US$ | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 2,950,000 | 2,950,000 |
Total | 2,950,000 | |
Total in EUR | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 123,000 | 145,000 |
Total | 145,000 | |
Total in R$ | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 4,613,905 | |
Tax foreclosure | 25,376 | |
Other | 58,714 | |
Total | 4,697,995 | |
Total in R$ | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 3,589,145 | 10,334,149 |
Total | R$ 11976657 | 10,334,149 |
Transnordestina Logisitca | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | R$ | |
Maturities | Until 09/19/2056 and Indefinite | |
Borrowings | R$ 2108917 | 2,541,347 |
Tax foreclosure | 35,336 | 22,214 |
Other | 8,231 | 3,866 |
Total | R$ 2152484 | 2,567,427 |
FTL - Ferrovia Transnordestina | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | R$ | |
Maturities | 11/15/2020 | |
Borrowings | R$ 62407 | 69,405 |
Total | R$ 62407 | 69,405 |
Sepetiba Tecon | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | R$ | |
Other | 36,308 | |
Total | 36,308 | |
Cia Metalurgica Prada | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | R$ | |
Maturities | Indefinite | |
Tax foreclosure | R$ 333 | 333 |
Other | 11,942 | 18,540 |
Total | R$ 12275 | 18,873 |
CSN Energia | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | R$ | |
Maturities | Until 11/26/2023 and Undetermined | |
Tax foreclosure | R$ 2829 | 2,829 |
Other | 1,920 | |
Total | R$ 4749 | 2,829 |
CSN Mineracao | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | R$ | |
Maturities | Until 12/26/2024 | |
Borrowings | R$ 1407363 | 2,000,000 |
Total | R$ 1407363 | 2,000,000 |
Estanho de Rondonia | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | R$ | |
Maturities | 07/15/2022 | |
Borrowings | R$ 3153 | 3,153 |
Total | R$ 3153 | 3,153 |
Nacional Minerios S.A. | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | R$ | |
Maturities | Until 09/10/2021 | |
Borrowings | R$ 7305 | |
Total | R$ 7305 | |
CSN Islands XI | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | US$ | |
Maturities | 09/21/2019 | |
CSN Islands XI | USD | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 547094 | 750,000 |
Total | 750,000 | |
CSN Islands XII | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | US$ | |
Maturities | Perpetual | |
CSN Islands XII | USD | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 1000000 | 1,000,000 |
Total | 1,000,000 | |
CSN Resources | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | US$ | |
Maturities | Until 02/13/2023 | |
CSN Resources | USD | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 1402906 | 1,200,000 |
Total | 1,200,000 | |
CSN Steel S.L. | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | EUR | |
Maturities | 1/31/2020 | |
CSN Steel S.L. | EUR | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 48000 | 120,000 |
Total | 120,000 | |
Lusosider Acos Planos | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | EUR | |
Maturities | Indefinite | |
Lusosider Acos Planos | EUR | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 75000 | 25,000 |
Total | R$ 25000 |
12. BORROWINGS, FINANCING AND_9
12. BORROWINGS, FINANCING AND DEBENTURES (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Borrowings Financing And Debentures Details Narrative Abstract | ||
Accrued commision on risk assumption | R$ 38134 | R$ 30843 |
13. FINANCIAL INSTRUMENTS (Deta
13. FINANCIAL INSTRUMENTS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit loss | R$ 2284043 | R$ 2952 |
Other assets measured at amortized costs | 6,806,001 | 41,528 |
Total assets | 9,090,044 | 9,188,434 |
Fair value of liabilities through profit loss | 33,348,569 | |
Other liabilities measured at amortized costs | 33,348,569 | 32,541,183 |
Total liabilities | 32,541,183 | |
Current assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit loss | 4,854 | 2,952 |
Other assets measured at amortized costs | 5,270,745 | 41,528 |
Total assets | 5,275,599 | 6,391,283 |
Current assets | Cash and cash equivalants | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit loss | ||
Other assets measured at amortized costs | 2,248,004 | |
Total assets | 2,248,004 | 3,411,572 |
Current assets | Short-term investments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit loss | ||
Other assets measured at amortized costs | 895,713 | |
Total assets | 895,713 | 735,712 |
Current assets | Trade receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit loss | ||
Other assets measured at amortized costs | 2,078,182 | |
Total assets | 2,078,182 | 2,197,078 |
Current assets | Dividends receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit loss | ||
Other assets measured at amortized costs | 46,171 | 41,528 |
Total assets | 46,171 | 41,528 |
Current assets | Derivative financial instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit loss | 351 | |
Other assets measured at amortized costs | ||
Total assets | 351 | |
Current assets | Trading securities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit loss | 4,503 | 2,952 |
Other assets measured at amortized costs | ||
Total assets | 4,503 | 2,952 |
Current assets | Loans - related parties | ||
Disclosure of detailed information about financial instruments [line items] | ||
Other assets measured at amortized costs | 2,675 | |
Total assets | 2,675 | |
Non-current assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit loss | 2,279,189 | |
Other assets measured at amortized costs | 1,535,256 | |
Total assets | 3,814,445 | 2,797,151 |
Non-current assets | Loans - related parties | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit loss | ||
Other assets measured at amortized costs | 706,605 | |
Total assets | 706,605 | 554,694 |
Non-current assets | Short-term investments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Other assets measured at amortized costs | 7,772 | |
Total assets | 7,772 | |
Non-current assets | Other trade receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit loss | ||
Other assets measured at amortized costs | 820,879 | |
Total assets | 820,879 | 20,024 |
Non-current assets | Investments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit loss | 2,279,189 | |
Other assets measured at amortized costs | ||
Total assets | 2,279,189 | 2,222,433 |
Current liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of liabilities through profit loss | 10,087,624 | |
Other liabilities measured at amortized costs | 10,087,624 | 9,523,230 |
Total liabilities | 9,523,230 | |
Current liabilities | Derivative financial instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of liabilities through profit loss | ||
Other liabilities measured at amortized costs | ||
Total liabilities | ||
Current liabilities | Borrowings and financing | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of liabilities through profit loss | 5,681,797 | |
Other liabilities measured at amortized costs | 5,681,797 | 6,551,764 |
Total liabilities | 6,551,764 | |
Current liabilities | Trade payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of liabilities through profit loss | 3,473,822 | |
Other liabilities measured at amortized costs | 3,473,822 | 2,460,774 |
Total liabilities | 2,460,774 | |
Current liabilities | Dividends and JCP | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of liabilities through profit loss | 932,005 | |
Other liabilities measured at amortized costs | 932,005 | 510,692 |
Total liabilities | 510,692 | |
Non-current liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of liabilities through profit loss | 23,260,945 | |
Other liabilities measured at amortized costs | 23,260,945 | 23,017,953 |
Total liabilities | 23,017,953 | |
Non-current liabilities | Borrowings and financing | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of liabilities through profit loss | 23,260,945 | |
Other liabilities measured at amortized costs | R$ 23260945 | 23,017,953 |
Total liabilities | R$ 23017953 |
13. FINANCIAL INSTRUMENTS (De_2
13. FINANCIAL INSTRUMENTS (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Available for sale assets | R$ 2279189 | R$ 2222433 |
Total assets | 9,090,044 | 9,188,434 |
Fair value of liabilities through profit or loss | 33,348,569 | |
Total liabilities | 32,541,183 | |
Current assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total assets | 5,275,599 | 6,391,283 |
Current assets | Derivative financial instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit or loss | 351 | |
Total assets | 351 | |
Current assets | Derivative financial instruments | Level 1 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit or loss | ||
Current assets | Derivative financial instruments | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit or loss | 351 | |
Current assets | Trading securities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit or loss | 4,503 | 2,952 |
Available for sale assets | ||
Total assets | 4,503 | 2,952 |
Current assets | Trading securities | Level 1 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit or loss | 4,503 | 2,952 |
Current assets | Trading securities | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit or loss | ||
Non-current assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total assets | 3,814,445 | 2,797,151 |
Non-current assets | Investments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of assets through profit or loss | ||
Available for sale assets | 2,279,189 | 2,222,433 |
Total assets | 2,279,189 | 2,222,433 |
Non-current assets | Investments | Level 1 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Available for sale assets | 2,279,189 | 2,222,433 |
Non-current assets | Investments | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Available for sale assets | ||
Assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total assets | 2,284,043 | 2,225,385 |
Assets | Level 1 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total assets | 2,283,692 | 2,225,385 |
Assets | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total assets | 351 | |
Current liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of liabilities through profit or loss | R$ 10087624 | |
Total liabilities | 9,523,230 | |
Current liabilities | Derivative financial instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of liabilities through profit or loss | ||
Total liabilities |
13. FINANCIAL INSTRUMENTS (De_3
13. FINANCIAL INSTRUMENTS (Details 2) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | |||
Quantity (in shares) | 220,298,749 | 223,434,849 | |
Closing Balance | R$ 2279189 | R$ 2222433 | |
Fair Value Adjustment Recognized in profit or loss | 96,133 | ||
Reclassification of Comprehensive Income for the year (note 31) | R$ 1655813 | R$ 0 | R$ 0 |
Sale of shares, quantity | 3,136,100 | ||
Sale of shares, share price | R$ 12.56 | ||
Sale of shares, Cash Received | R$ 39377 | ||
USIM3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Quantity (in shares) | 107,156,651 | 107,156,651 | |
Share price | R$ 11.44 | R$ 10.83 | |
Closing Balance | R$ 1225872 | R$ 1160506 | |
Fair Value Adjustment Recognized in profit or loss | 65,366 | ||
Reclassification of Comprehensive Income for the year (note 31) | R$ 694685 | ||
USIM5 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Quantity (in shares) | 111,144,456 | 114,280,556 | |
Share price | R$ 9.22 | R$ 9.10 | |
Closing Balance | R$ 1024752 | R$ 1039953 | |
Fair Value Adjustment Recognized in profit or loss | 24,176 | ||
Reclassification of Comprehensive Income for the year (note 31) | R$ 865264 | ||
Sale of shares, quantity | 3,136,100 | ||
Sale of shares, share price | R$ 12.56 | ||
Sale of shares, Cash Received | R$ 39377 | ||
PATI3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Quantity (in shares) | 1,997,642 | 1,997,642 | |
Share price | R$ 14.30 | R$ 11.00 | |
Closing Balance | R$ 28565 | R$ 21974 | |
Fair Value Adjustment Recognized in profit or loss | 6,591 | ||
Reclassification of Comprehensive Income for the year (note 31) | R$ 269 |
13. FINANCIAL INSTRUMENTS (De_4
13. FINANCIAL INSTRUMENTS (Details 3) R$ in Thousands | Dec. 31, 2018BRL (R$) |
USD | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | R$ 475909 |
USD | Foreign exchange exposure | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | (3,551,954) |
USD | Cash flow hedge accounting | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | 2,076,045 |
USD | Net foreign exchange exposure | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | (1,475,909) |
USD | Perpetual bonds | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | 1,000,000 |
USD | Borrowings and financing | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | (4,116,508) |
USD | Trade payables | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | (175,404) |
USD | Other liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | (3,529) |
USD | Total liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | (4,295,441) |
USD | Cash and cash equivalents overseas | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | 376,581 |
USD | Trade receivables | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | 358,283 |
USD | Other assets | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | 8,623 |
USD | Total assets | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | 743,487 |
Euro | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | (552) |
Euro | Foreign exchange exposure | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | (48,552) |
Euro | Net Investment hedge accounting | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | 48 |
Euro | Net foreign exchange exposure | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | (552) |
Euro | Borrowings and financing | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | (48,791) |
Euro | Trade payables | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | (7,946) |
Euro | Other liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | (920) |
Euro | Total liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | (57,657) |
Euro | Cash and cash equivalents overseas | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | 3,387 |
Euro | Trade receivables | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | 1,124 |
Euro | Other assets | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | 4,594 |
Euro | Total assets | |
Disclosure of detailed information about financial instruments [line items] | |
Foreign exchange exposure | R$ 9105 |
13. FINANCIAL INSTRUMENTS (De_5
13. FINANCIAL INSTRUMENTS (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | R$ 18563 | |
Asset position | 71,967 | |
Liability position | (71,616) | |
Fair market value of amounts receivable/(payable) | R$ 351 | |
Dollar-to-euro swap | ||
Disclosure of detailed information about financial instruments [line items] | ||
Counterparty name | BCP | |
Notional amount | R$ 18563 | |
Asset position | 71,967 | |
Liability position | (71,616) | |
Fair market value of amounts receivable/(payable) | 351 | |
Impact on finance income (cost) | R$ 1 | R$ 28503 |
13. FINANCIAL INSTRUMENTS (De_6
13. FINANCIAL INSTRUMENTS (Details 5) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||
Current assets | R$ 351 | |
Total assets | 351 | |
Dollar-to-euro swap | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current assets | 351 | |
Total assets | 351 | |
Net finance income | (1) | R$ 28503 |
Forward dollar | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net finance income | (1) | (229) |
Fixed rate-to-CDI interest rate swap | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net finance income | R$ 1 | R$ 28274 |
13. FINANCIAL INSTRUMENTS (De_7
13. FINANCIAL INSTRUMENTS (Details 6) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$)R$ / $ | |
Disclosure of detailed information about hedged items [line items] | |
Designated amounts | R$ 2745045 |
Amortized part | (669,000) |
Effect on Result | 370,191 |
Impact on Shareholders' equity | R$ 1441295 |
Hedging relationship 1 | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 11/03/2014 |
Hedging instrument | Export prepayments in US$ to third parties |
Hedged item | Part of the highly probable future monthly iron ore exports |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate |
Hedged period | October 2016 - September 2019 |
Exchange rate on designation | R$ / $ | 2.4442 |
Designated amounts | R$ 500000 |
Amortized part | (250,003) |
Effect on Result | 171,983 |
Impact on Shareholders' equity | R$ 357649 |
Hedging relationship 2 | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 12/01/2014 |
Hedging instrument | Export prepayments in US$ to third parties |
Hedged item | Part of the highly probable future monthly iron ore exports |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate |
Hedged period | October 2015 - February 2019 |
Exchange rate on designation | R$ / $ | 2.5601 |
Designated amounts | R$ 175000 |
Amortized part | (154,999) |
Effect on Result | 36,766 |
Impact on Shareholders' equity | R$ 26295 |
Hedging relationship 3 | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 12/18/2014 |
Hedging instrument | Export prepayments in US$ to third parties |
Hedged item | Part of the highly probable future monthly iron ore exports |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate |
Hedged period | May 2020 |
Exchange rate on designation | R$ / $ | 2.6781 |
Designated amounts | R$ 100000 |
Impact on Shareholders' equity | R$ 119670 |
Hedging relationship 4 | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 07/21/2015 |
Hedging instrument | Export prepayments in US$ to third parties |
Hedged item | Part of the highly probable future monthly iron ore exports |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate |
Hedged period | July 2019 - March 2021 |
Exchange rate on designation | R$ / $ | 3.1813 |
Designated amounts | R$ 60000 |
Impact on Shareholders' equity | R$ 41610 |
Hedging relationship 5 | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 07/23/2015 |
Hedging instrument | Export prepayments in US$ to third parties |
Hedged item | Part of the highly probable future monthly iron ore exports |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate |
Hedged period | July 2019 - March 2021 |
Exchange rate on designation | R$ / $ | 3.2850 |
Designated amounts | R$ 100000 |
Impact on Shareholders' equity | R$ 58980 |
Hedging relationship 6 | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 07/23/2015 |
Hedging instrument | Export prepayments in US$ to third parties |
Hedged item | Part of the highly probable future monthly iron ore exports |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate |
Hedged period | October 2018 - October 2022 |
Exchange rate on designation | R$ / $ | 3.285 |
Designated amounts | R$ 30000 |
Amortized part | (6,000) |
Effect on Result | 5,102 |
Impact on Shareholders' equity | R$ 14155 |
Hedging relationship 7 | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 07/24/2015 |
Hedging instrument | Export prepayments in US$ to third parties |
Hedged item | Part of the highly probable future monthly iron ore exports |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate |
Hedged period | October 2018 - October 2022 |
Exchange rate on designation | R$ / $ | 3.3254 |
Designated amounts | R$ 100000 |
Amortized part | (20,000) |
Effect on Result | 16,198 |
Impact on Shareholders' equity | R$ 43952 |
Hedging relationship 8 | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 07/27/2015 |
Hedging instrument | Export prepayments in US$ to third parties |
Hedged item | Part of the highly probable future monthly iron ore exports |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate |
Hedged period | October 2018 - October 2022 |
Exchange rate on designation | R$ / $ | 3.3557 |
Designated amounts | R$ 25000 |
Amortized part | (5,000) |
Effect on Result | 3,898 |
Impact on Shareholders' equity | R$ 10382 |
Hedging relationship 9 | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 07/27/2015 |
Hedging instrument | Export prepayments in US$ to third parties |
Hedged item | Part of the highly probable future monthly iron ore exports |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate |
Hedged period | October 2018 - October 2022 |
Exchange rate on designation | R$ / $ | 3.3557 |
Designated amounts | R$ 70000 |
Amortized part | (14,000) |
Effect on Result | 10,914 |
Impact on Shareholders' equity | R$ 29070 |
Hedging relationship 10 | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 07/27/2015 |
Hedging instrument | Export prepayments in US$ to third parties |
Hedged item | Part of the highly probable future monthly iron ore exports |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate |
Hedged period | October 2018 - October 2022 |
Exchange rate on designation | R$ / $ | 3.3557 |
Designated amounts | R$ 30000 |
Amortized part | (6,000) |
Effect on Result | 4,677 |
Impact on Shareholders' equity | R$ 12458 |
Hedging relationship 11 | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 07/28/2015 |
Hedging instrument | Export prepayments in US$ to third parties |
Hedged item | Part of the highly probable future monthly iron ore exports |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate |
Hedged period | October 2018 - October 2022 |
Exchange rate on designation | R$ / $ | 3.3815 |
Designated amounts | R$ 30000 |
Amortized part | (6,000) |
Effect on Result | 4,523 |
Impact on Shareholders' equity | R$ 11839 |
Hedging relationship 12 | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 3/8/2015 |
Hedging instrument | Export prepayments in US$ to third parties |
Hedged item | Part of the highly probable future monthly iron ore exports |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate |
Hedged period | October 2018 - October 2022 |
Exchange rate on designation | R$ / $ | 3.3940 |
Designated amounts | R$ 355000 |
Amortized part | (11,998) |
Effect on Result | 6,179 |
Impact on Shareholders' equity | R$ 164915 |
Hedging relationship 13 | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 04/02/2018 |
Hedging instrument | Bonds |
Hedged item | Part of the highly probable future monthly iron ore exports |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate |
Hedged period | July 2018 - February 2023 |
Exchange rate on designation | R$ / $ | 3.3104 |
Designated amounts | R$ 1170045 |
Amortized part | (195,000) |
Effect on Result | 109,951 |
Impact on Shareholders' equity | R$ 550320 |
13. FINANCIAL INSTRUMENTS (De_8
13. FINANCIAL INSTRUMENTS (Details 7) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about hedged items [line items] | |||
Fair value of cash flow hedge, net of taxes, beginning | R$ 395524 | ||
Movement | 1,415,962 | R$ 50987 | R$ 1005968 |
Realization | (370,191) | (92,140) | R$ 77444 |
Fair value of cash flow hedge, net of taxes, ending | 1,441,295 | 395,524 | |
Cash flow hedge accounting | |||
Disclosure of detailed information about hedged items [line items] | |||
Fair value of cash flow hedge, net of taxes, beginning | 395,524 | ||
Movement | 1,415,962 | ||
Realization | (370,191) | ||
Fair value of cash flow hedge, net of taxes, ending | R$ 1441295 | R$ 395524 |
13. FINANCIAL INSTRUMENTS (De_9
13. FINANCIAL INSTRUMENTS (Details 8) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$)R$ / € | |
Disclosure of detailed information about hedged items [line items] | |
Designated amounts | R$ 2745045 |
Amortized part | (669,000) |
Impact on Shareholders' equity | R$ 1441295 |
Foreign Subsidiaries | |
Disclosure of detailed information about hedged items [line items] | |
Designation date | 9/1/2015 |
Hedging instrument | Non-derivative financial liabilities in EUR – Debt contract |
Hedged item | Investments in subsidiaries which EUR is the functional currency |
Type of hedged risk | Foreign exchange - R$ vs. EUR spot rate |
Exchange rate on designation | R$ / € | 4.0825 |
Designated amounts | R$ 120000 |
Amortized part | (72,000) |
Impact on Shareholders' equity | R$ 3941 |
13. FINANCIAL INSTRUMENTS (D_10
13. FINANCIAL INSTRUMENTS (Details 9) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about hedged items [line items] | |||
Movement | R$ 1415962 | R$ 50987 | R$ 1005968 |
Realization | (370,191) | (92,140) | R$ 77444 |
Foreign Subsidiaries | |||
Disclosure of detailed information about hedged items [line items] | |||
Fair value of net investment hedge in foreign operations, beginning | (17,911) | ||
Movement | 21,852 | ||
Realization | |||
Fair value of net investment hedge in foreign operations, ending | 3,941 | (17,911) | |
Foreign Subsidiaries | Net Investment hedge accounting | |||
Disclosure of detailed information about hedged items [line items] | |||
Fair value of net investment hedge in foreign operations, beginning | (17,911) | ||
Movement | 21,852 | ||
Realization | |||
Fair value of net investment hedge in foreign operations, ending | R$ 3941 | R$ 17911 |
13. FINANCIAL INSTRUMENTS (D_11
13. FINANCIAL INSTRUMENTS (Details 10) | Dec. 31, 2018R$ / $R$ / € |
USD | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Exchange rate | 3.8748 |
USD | Probable Scenario | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Exchange rate | 3.7626 |
USD | Scenario 1 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Exchange rate | 4.8435 |
USD | Scenario 2 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Exchange rate | 5.8122 |
EUR | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Exchange rate | R$ / € | 4.4390 |
EUR | Probable Scenario | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Exchange rate | R$ / € | 4.2833 |
EUR | Scenario 1 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Exchange rate | R$ / € | 5.5488 |
EUR | Scenario 2 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Exchange rate | R$ / € | 6.6585 |
USD x EUR | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Exchange rate | 1.1456 |
USD x EUR | Probable Scenario | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Exchange rate | 1.1346 |
USD x EUR | Scenario 1 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Exchange rate | 1.4320 |
USD x EUR | Scenario 2 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Exchange rate | 1.7184 |
13. FINANCIAL INSTRUMENTS (D_12
13. FINANCIAL INSTRUMENTS (Details 11) | Dec. 31, 2018 |
CDI | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate (in percent) | 6.40% |
CDI | Scenario 1 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate (in percent) | 8.00% |
CDI | Scenario 2 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate (in percent) | 9.60% |
TJLP | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate (in percent) | 6.98% |
TJLP | Scenario 1 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate (in percent) | 8.73% |
TJLP | Scenario 2 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate (in percent) | 10.47% |
LIBOR | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate (in percent) | 2.88% |
LIBOR | Scenario 1 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate (in percent) | 3.60% |
LIBOR | Scenario 2 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate (in percent) | 4.32% |
13. FINANCIAL INSTRUMENTS (D_13
13. FINANCIAL INSTRUMENTS (Details 13) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
TJLP | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate (in percent) | 6.98% |
TJLP | Probable Scenario | |
Disclosure of financial instruments by type of interest rate [line items] | |
Impact on profit or loss | R$ 2793 |
TJLP | Scenario 1 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Impact on profit or loss | (16,658) |
TJLP | Scenario 2 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Impact on profit or loss | R$ 33316 |
LIBOR | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate (in percent) | 2.88% |
LIBOR | Probable Scenario | |
Disclosure of financial instruments by type of interest rate [line items] | |
Impact on profit or loss | R$ 47391 |
LIBOR | Scenario 1 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Impact on profit or loss | (34,505) |
LIBOR | Scenario 2 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Impact on profit or loss | R$ 69010 |
CDI | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate (in percent) | 6.40% |
CDI | Probable Scenario | |
Disclosure of financial instruments by type of interest rate [line items] | |
Impact on profit or loss | R$ 53528 |
CDI | Scenario 1 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Impact on profit or loss | (176,924) |
CDI | Scenario 2 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Impact on profit or loss | R$ 353848 |
13. FINANCIAL INSTRUMENTS (D_14
13. FINANCIAL INSTRUMENTS (Details 14) R$ in Thousands | Dec. 31, 2018BRL (R$) |
Borrowings, financing and debentures | |
Disclosure of financial liabilities [line items] | |
Contractual maturities | R$ 28942742 |
Borrowings, financing and debentures | Less than one year | |
Disclosure of financial liabilities [line items] | |
Contractual maturities | 5,681,797 |
Borrowings, financing and debentures | From one to two years | |
Disclosure of financial liabilities [line items] | |
Contractual maturities | 10,192,606 |
Borrowings, financing and debentures | From two to five years | |
Disclosure of financial liabilities [line items] | |
Contractual maturities | 8,608,664 |
Borrowings, financing and debentures | Over five years | |
Disclosure of financial liabilities [line items] | |
Contractual maturities | 4,459,675 |
Trade payables | |
Disclosure of financial liabilities [line items] | |
Contractual maturities | 3,473,822 |
Trade payables | Less than one year | |
Disclosure of financial liabilities [line items] | |
Contractual maturities | 3,473,822 |
Dividends and interest on capital | |
Disclosure of financial liabilities [line items] | |
Contractual maturities | 932,005 |
Dividends and interest on capital | Less than one year | |
Disclosure of financial liabilities [line items] | |
Contractual maturities | R$ 932005 |
13. FINANCIAL INSTRUMENTS (D_15
13. FINANCIAL INSTRUMENTS (Details 15) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Perpetual bonds | ||
Disclosure of financial liabilities [line items] | ||
Carrying amount | R$ 3880074 | R$ 3312503 |
Fair value | 2,850,615 | 2,602,090 |
Fixed rate notes | ||
Disclosure of financial liabilities [line items] | ||
Carrying amount | 6,745,132 | 5,751,526 |
Fair value | R$ 7595765 | R$ 6207946 |
13. FINANCIAL INSTRUMENTS (D_16
13. FINANCIAL INSTRUMENTS (Details 16) R$ in Thousands | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | Dec. 31, 2016BRL (R$) | Dec. 31, 2015BRL (R$) |
Financial Instruments Details 16Abstract | ||||
Shareholder's equity (equity) | R$ 10013440 | R$ 8288229 | R$ 7384521 | R$ 7091288 |
Borrowings and Financing (Third-party capital) | R$ 28827074 | R$ 29510844 | ||
Gross Debit/Shareholder's equity | 2.88 | 3.56 |
13. FINANCIAL INSTRUMENTS (D_17
13. FINANCIAL INSTRUMENTS (Details Narrative) R$ in Thousands | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Financial Instruments Details Narrative Abstract | |
Investments available for sale, net of taxes | R$ 1559680 |
14. OTHER PAYABLES (Details)
14. OTHER PAYABLES (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | R$ 1704857 | R$ 1014980 |
Other payables, noncurrent | 227,328 | 129,323 |
Parent Company | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 1,679,538 | 534,587 |
Other payables, noncurrent | 24,024 | 57,599 |
Payables to related parties | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 35,499 | 3,097 |
Other payables, noncurrent | 96,629 | |
Payables to related parties | Parent Company | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 308,056 | 244,828 |
Other payables, noncurrent | 14,501 | 49,254 |
Derivative financial instruments | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | ||
Other payables, noncurrent | ||
Derivative financial instruments | Parent Company | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | ||
Other payables, noncurrent | ||
Dividends and interest on capital payable | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 932,005 | 510,692 |
Other payables, noncurrent | ||
Dividends and interest on capital payable | Parent Company | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 900,541 | 2,345 |
Other payables, noncurrent | ||
Advances from customers | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 137,418 | 68,521 |
Other payables, noncurrent | ||
Advances from customers | Parent Company | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 64,416 | 50,391 |
Other payables, noncurrent | ||
Taxes in installments | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 20,179 | 21,551 |
Other payables, noncurrent | 73,934 | 79,242 |
Taxes in installments | Parent Company | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 9,756 | 9,420 |
Other payables, noncurrent | 2,378 | 1,421 |
Profit sharing - employees | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 113,219 | 42,699 |
Other payables, noncurrent | ||
Profit sharing - employees | Parent Company | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 72,555 | 26,759 |
Other payables, noncurrent | ||
Freight provision | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | ||
Other payables, noncurrent | ||
Freight provision | Parent Company | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | ||
Other payables, noncurrent | ||
Provision for industrial restructuring | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | ||
Other payables, noncurrent | ||
Provision for industrial restructuring | Parent Company | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | ||
Other payables, noncurrent | ||
Taxes payable | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | ||
Other payables, noncurrent | 8,631 | 8,410 |
Taxes payable | Parent Company | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | ||
Other payables, noncurrent | 7,145 | 6,924 |
Other provision | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 392,612 | 336,886 |
Other payables, noncurrent | ||
Other provision | Parent Company | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 275,973 | 194,619 |
Other payables, noncurrent | ||
Third party materials in our possession | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 45,915 | 231 |
Other payables, noncurrent | ||
Third party materials in our possession | Parent Company | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 45,721 | |
Other payables, noncurrent | ||
Other payables | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 28,010 | 31,303 |
Other payables, noncurrent | 48,134 | 41,671 |
Other payables | Parent Company | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Other payables, current | 2,520 | 6,225 |
Other payables, noncurrent |
15. INCOME TAX AND SOCIAL CON_3
15. INCOME TAX AND SOCIAL CONTRIBUTION (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax And Social Contribution Details Abstract | |||
Income tax and social contribution income (expense), current | R$ 827229 | R$ 358981 | R$ 206178 |
Income tax and social contribution income (expense), deferred | 576,895 | (50,128) | (60,368) |
Income tax and social contribution income (expense) | R$ 250334 | R$ 409109 | R$ 266546 |
15. INCOME TAX AND SOCIAL CON_4
15. INCOME TAX AND SOCIAL CONTRIBUTION (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of fair value measurement of liabilities [line items] | |||
(Loss)/Profit before income tax and social contribution | R$ 5450917 | R$ 520338 | R$ 576951 |
Tax rate (in percent) | 34.00% | 34.00% | 34.00% |
Income tax and social contribution at combined statutory rate | R$ 1853312 | R$ 176915 | R$ 196163 |
Adjustment to reflect the effective rate | (250,334) | ||
Income tax and social contribution in profit for the period | (250,334) | (409,109) | (266,546) |
Equity in results of affiliated companies | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Adjustment to reflect the effective rate | 50,134 | 42,431 | 22,072 |
Profit with differentiated rates or untaxed | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Adjustment to reflect the effective rate | (46,006) | 37,605 | (287,502) |
Transfer pricing adjustment | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Adjustment to reflect the effective rate | (74,836) | (34,746) | (63,638) |
Tax loss carryforwards without recognizing deferred taxes | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Adjustment to reflect the effective rate | (27,683) | (368,612) | (821,920) |
Limit of Indebtedness | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Adjustment to reflect the effective rate | (38,486) | (39,378) | (35,391) |
Unrecorded deferred taxes on temporary differences | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Adjustment to reflect the effective rate | (11,964) | 541,655 | 643,990 |
Defered Income Tax and social contribution on temporary diferences | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Adjustment to reflect the effective rate | 971,972 | ||
(Losses)/Reversal for deferred income and social contribution tax credits | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Adjustment to reflect the effective rate | 835,937 | (403,080) | 44,691 |
Income tax and social contribution on foreign profit | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Adjustment to reflect the effective rate | (30,219) | (29,964) | (35,613) |
Goodwill amortization of Metalic | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Adjustment to reflect the effective rate | 31,439 | 31,439 | |
Tax Incentives | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Adjustment to reflect the effective rate | 36,710 | 14,358 | 22,673 |
Reversal of deferred tax in Namisa | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Adjustment to reflect the effective rate | (43,667) | ||
Other permanent deductions (additions) | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Adjustment to reflect the effective rate | R$ 18914 | R$ 7537 | R$ 16490 |
15. INCOME TAX AND SOCIAL CON_5
15. INCOME TAX AND SOCIAL CONTRIBUTION (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | R$ 1110440 | R$ 976746 | |||
Movement in shareholders' equity | 21,208 | 26,778 | |||
Movement in profit or loss | 576,895 | (50,128) | |||
Other movement | (110,344) | ||||
Deferred tax asset/liability, ending | (512,337) | (1,110,440) | |||
Total deferred assets | R$ 89394 | R$ 63119 | R$ 70151 | ||
Total deferred liabilities | (601,731) | (1,173,559) | (1,046,897) | ||
Total deferred | (512,337) | (1,110,440) | (512,337) | (1,110,440) | (976,746) |
Deferred income tax losses | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 1,137,234 | 970,800 | |||
Movement in profit or loss | (177,378) | 245,846 | |||
Other movement | (616) | (79,412) | |||
Deferred tax asset/liability, ending | 959,240 | 1,137,234 | |||
Total deferred | 1,137,234 | 1,137,234 | 959,240 | 1,137,234 | 970,800 |
Deferred social contribution tax losses | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 406,884 | 340,629 | |||
Movement in profit or loss | (39,303) | 94,843 | |||
Other movement | (223) | (28,588) | |||
Deferred tax asset/liability, ending | 367,358 | 406,884 | |||
Total deferred | 406,884 | 406,884 | 367,358 | 406,884 | 340,629 |
Temporary differences | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | (2,654,558) | (2,288,175) | |||
Movement in shareholders' equity | 21,208 | 26,778 | |||
Movement in profit or loss | 793,576 | (390,817) | |||
Other movement | 839 | (2,344) | |||
Deferred tax asset/liability, ending | (1,838,935) | (2,654,558) | |||
Total deferred | (2,654,558) | (2,654,558) | (1,838,935) | (2,654,558) | (2,288,175) |
Provision for tax social security, labor, civil and environmental risks | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 269,899 | 256,936 | |||
Movement in profit or loss | (5,846) | 12,963 | |||
Other movement | 3,184 | ||||
Deferred tax asset/liability, ending | 267,237 | 269,899 | |||
Total deferred | 269,899 | 269,899 | 267,237 | 269,899 | 256,936 |
Provision for environmental liabilities | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 86,851 | 95,048 | |||
Movement in profit or loss | (19,708) | (8,197) | |||
Deferred tax asset/liability, ending | 67,143 | 86,851 | |||
Total deferred | 86,851 | 86,851 | 67,143 | 86,851 | 95,048 |
Assets impairment losses | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 88,433 | 93,908 | |||
Movement in profit or loss | (7,092) | (5,475) | |||
Deferred tax asset/liability, ending | 81,341 | 88,433 | |||
Total deferred | 88,433 | 88,433 | 81,341 | 88,433 | 93,908 |
Inventory impairment losses | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 45,814 | 35,703 | |||
Movement in profit or loss | (7,054) | 10,111 | |||
Deferred tax asset/liability, ending | 38,760 | 45,814 | |||
Total deferred | 45,814 | 45,814 | 38,760 | 45,814 | 35,703 |
(Gains )/ losses in financial instruments | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | (912) | (2,300) | |||
Movement in profit or loss | (2,407) | 1,388 | |||
Deferred tax asset/liability, ending | (3,319) | (912) | |||
Total deferred | (912) | (912) | (3,319) | (912) | (2,300) |
(Gains )/losses on available for sale financial assets | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 417,659 | 705,929 | |||
Movement in shareholders' equity | 530,292 | 316,563 | |||
Movement in profit or loss | (584,856) | ||||
Deferred tax asset/liability, ending | 363,095 | 417,659 | |||
Total deferred | 417,659 | 417,659 | 363,095 | 417,659 | 705,929 |
Actuarial liability (pension and healthcare plan) | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 273,058 | 134,578 | |||
Movement in shareholders' equity | (48) | 180,834 | |||
Movement in profit or loss | 3,022 | (41,065) | |||
Other movement | (1,289) | ||||
Deferred tax asset/liability, ending | 276,032 | 273,058 | |||
Total deferred | 273,058 | 273,058 | 276,032 | 273,058 | 134,578 |
Accrued supplies and services | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 67,716 | 123,101 | |||
Movement in profit or loss | 27,928 | (55,385) | |||
Deferred tax asset/liability, ending | 95,644 | 67,716 | |||
Total deferred | 67,716 | 67,716 | 95,644 | 67,716 | 123,101 |
Allowance for doubtful debts | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 47,216 | 42,008 | |||
Movement in profit or loss | 14,199 | 5,208 | |||
Deferred tax asset/liability, ending | 61,415 | 47,216 | |||
Total deferred | 47,216 | 47,216 | 61,415 | 47,216 | 42,008 |
Goodwil on merger | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 608 | 815 | |||
Movement in profit or loss | (608) | (207) | |||
Deferred tax asset/liability, ending | 608 | ||||
Total deferred | 608 | 608 | 608 | 815 | |
Unrealized exchange differences | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 1,511,152 | 1,589,651 | |||
Movement in shareholders' equity | 56,493 | ||||
Movement in profit or loss | (500,620) | (134,992) | |||
Deferred tax asset/liability, ending | 1,010,532 | 1,511,152 | |||
Total deferred | 1,511,152 | 1,511,152 | 1,010,532 | 1,511,152 | 1,589,651 |
(Gain) in control loss on Transnordestina | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | (92,180) | (92,180) | |||
Deferred tax asset/liability, ending | (92,180) | (92,180) | |||
Total deferred | (92,180) | (92,180) | (92,180) | (92,180) | (92,180) |
Cash flow hedge accounting | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 134,479 | 148,471 | |||
Movement in shareholders' equity | 355,563 | (13,992) | |||
Deferred tax asset/liability, ending | 490,042 | 134,479 | |||
Total deferred | 134,479 | 134,479 | 490,042 | 134,479 | 148,471 |
Acquisition Fair Value SWT/CBL | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | (193,311) | (199,001) | |||
Movement in shareholders' equity | (16,683) | (21,143) | |||
Movement in profit or loss | 37,880 | 26,833 | |||
Deferred tax asset/liability, ending | (172,114) | (193,311) | |||
Total deferred | (193,311) | (193,311) | (172,114) | (193,311) | (199,001) |
Deferred taxes non computed | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | (212,236) | (1,324,437) | |||
Movement in shareholders' equity | (566,173) | ||||
Movement in profit or loss | (38,359) | (3,255) | |||
Other movement | (2,345) | (115) | |||
Deferred tax asset/liability, ending | (252,940) | (212,236) | |||
Total deferred | (212,236) | (212,236) | (252,940) | (212,236) | (1,324,437) |
Estimated (Losses)/reversals to deferred taxes credits | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | (4,130,928) | (3,013,730) | |||
Movement in shareholders' equity | (885,069) | 82,769 | |||
Movement in profit or loss | 1,929,424 | (123,056) | |||
Deferred tax asset/liability, ending | (3,086,573) | (4,130,928) | |||
Total deferred | (4,130,928) | (4,130,928) | (3,086,573) | (4,130,928) | (3,013,730) |
Business Combination | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | (1,040,536) | (1,072,824) | |||
Movement in profit or loss | 9,724 | 32,288 | |||
Deferred tax asset/liability, ending | (1,030,812) | (1,040,536) | |||
Total deferred | (1,040,536) | (1,040,536) | (1,030,812) | (1,040,536) | (1,072,824) |
Others | |||||
Disclosure of fair value measurement of liabilities [line items] | |||||
Deferred tax asset/liability, beginning | 72,660 | 190,149 | |||
Movement in shareholders' equity | 37,153 | (8,573) | |||
Movement in profit or loss | (62,051) | (107,976) | |||
Other movement | (940) | ||||
Deferred tax asset/liability, ending | 47,762 | 72,660 | |||
Total deferred | R$ 72660 | R$ 72660 | R$ 47762 | R$ 72660 | R$ 190149 |
15. INCOME TAX AND SOCIAL CON_6
15. INCOME TAX AND SOCIAL CONTRIBUTION (Details 3) | 12 Months Ended |
Dec. 31, 2018 | |
Tax losses | |
Disclosure of fair value measurement of liabilities [line items] | |
Description of deferred tax assets on tax losses and temporary differences | In recent periods, the Company started to incur in tax losses, mostly because of high financial expenses, as substantially all our loans and financings of CSN group, and presented a taxable income in 2018. |
Foreign exchange differences | |
Disclosure of fair value measurement of liabilities [line items] | |
Description of deferred tax assets on tax losses and temporary differences | Since 2012 the Company opted by the taxation of exchange differences on a cash basis. As the Company have operated without taxable profit it would not make sense to use this deductibility year by year (accrual basis). As a result of the cash basis tax treatment, taxes are only due and expenses are only deductible at the time of debt settlement. |
Losses on Usiminas shares | |
Disclosure of fair value measurement of liabilities [line items] | |
Description of deferred tax assets on tax losses and temporary differences | The losses on Usiminas shares are recognized on an accrual basis, but the taxable event will occur only at the time of divestment. |
Other provisions | |
Disclosure of fair value measurement of liabilities [line items] | |
Description of deferred tax assets on tax losses and temporary differences | Various accounting provisions are recognized on an accrual basis, but their taxation occurs only at the time of its realization, such as provisions for contingencies, impairment losses, environmental liabilities, etc. |
15. INCOME TAX AND SOCIAL CON_7
15. INCOME TAX AND SOCIAL CONTRIBUTION (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Tax Installments Programs Details 1Abstract | ||
Actuarial gains on defined benefit pension plan | R$ 176700 | R$ 176658 |
Estimated losses for deferred income and social contribution tax credits - actuarial gains | (180,048) | (180,834) |
Changes in the fair value of assets measured at fair value through other comprehensive income | (530,292) | |
Estimated losses for deferred income tax and social contribution assets - assets measured at fair value through other comprehensive income | 530,292 | |
Exchange differences on translating foreign operations | (325,350) | (369,017) |
Cash flow hedge accounting | 490,041 | 134,478 |
Estimated losses for deferred income and social contribution tax credits - cash flow hedge | (490,041) | (134,478) |
Income tax and social contribution | R$ 328698 | R$ 373193 |
16. TAX INSTALLMENTS PROGRAMS_2
16. TAX INSTALLMENTS PROGRAMS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement of liabilities [line items] | ||
REFIS debts and other tax installment payment plans, current | R$ 20179 | R$ 21551 |
REFIS debts and other tax installment payment plans, noncurrent | 73,934 | 79,242 |
Federal REFIS Law 11.941/09 | ||
Disclosure of fair value measurement of liabilities [line items] | ||
REFIS debts and other tax installment payment plans, current | 12,100 | 12,552 |
REFIS debts and other tax installment payment plans, noncurrent | 18,895 | 20,083 |
Federal REFIS Law 12.865/13 | ||
Disclosure of fair value measurement of liabilities [line items] | ||
REFIS debts and other tax installment payment plans, current | 6,240 | 5,984 |
REFIS debts and other tax installment payment plans, noncurrent | 52,661 | 56,381 |
Other taxes in installments | ||
Disclosure of fair value measurement of liabilities [line items] | ||
REFIS debts and other tax installment payment plans, current | 1,839 | 3,015 |
REFIS debts and other tax installment payment plans, noncurrent | R$ 2378 | R$ 2778 |
17. PROVISION FOR TAX, SOCIAL_3
17. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement of liabilities [line items] | ||
Accrued liabilities | R$ 792456 | R$ 825091 |
Judicial deposits | 347,950 | 339,351 |
Provisions for tax, social security, labor and civil risks | 106,503 | 105,958 |
Provision for environmental liabilities and decommissioning of assets | 281,766 | 337,013 |
Deposit from banks | 339,351 | |
Tax | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Accrued liabilities | 118,490 | 113,451 |
Judicial deposits | 46,321 | 52,542 |
Social security | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Accrued liabilities | 70,084 | 74,522 |
Judicial deposits | 50,898 | 50,098 |
Labor | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Accrued liabilities | 362,228 | 451,173 |
Judicial deposits | 214,625 | 202,104 |
Civil | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Accrued liabilities | 210,264 | 148,212 |
Judicial deposits | 22,024 | 22,752 |
Environmental | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Accrued liabilities | 31,390 | 37,733 |
Judicial deposits | 1,900 | 1,826 |
Deposit of a guarantee | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Judicial deposits | R$ 12182 | R$ 10029 |
17. PROVISION FOR TAX, SOCIAL_4
17. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Disclosure of fair value measurement of liabilities [line items] | |
Accrued liabilities, beginning | R$ 825091 |
Additions | 114,583 |
Accrued charges | 54,678 |
Net utilization of reversal | (157,262) |
Accrued liabilities, ending | 792,456 |
Tax | |
Disclosure of fair value measurement of liabilities [line items] | |
Accrued liabilities, beginning | 113,451 |
Additions | 24,805 |
Accrued charges | 6,325 |
Net utilization of reversal | (37,202) |
Accrued liabilities, ending | 118,490 |
Social security | |
Disclosure of fair value measurement of liabilities [line items] | |
Accrued liabilities, beginning | 74,522 |
Additions | 10,333 |
Accrued charges | 3,121 |
Net utilization of reversal | (1,506) |
Accrued liabilities, ending | 70,084 |
Labor | |
Disclosure of fair value measurement of liabilities [line items] | |
Accrued liabilities, beginning | 451,173 |
Additions | 42,400 |
Accrued charges | 33,330 |
Net utilization of reversal | (109,979) |
Accrued liabilities, ending | 362,228 |
Civil | |
Disclosure of fair value measurement of liabilities [line items] | |
Accrued liabilities, beginning | 148,212 |
Additions | 3,496 |
Accrued charges | 11,681 |
Net utilization of reversal | (4,822) |
Accrued liabilities, ending | 210,264 |
Environmental | |
Disclosure of fair value measurement of liabilities [line items] | |
Accrued liabilities, beginning | 37,733 |
Additions | 33,549 |
Accrued charges | 221 |
Net utilization of reversal | (3,753) |
Accrued liabilities, ending | R$ 31390 |
17. PROVISION FOR TAX, SOCIAL_5
17. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | R$ 31612488 | R$ 30639075 |
Tax assessment notice issued against the Company for an alleged sale of 40% of the shares of its joint venture NAMISA to a Japanese-Korean consortium | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 11,812,071 | 11,073,961 |
Income tax / Social contribution - Assessment Notice and Imposition of Fine (AIIM) - Disallowance of deductions of goodwill generated in the reverse incorporation of Big Jump by Namisa | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 3,722,888 | 2,623,179 |
Assessment Notice and Imposition of Fine (AIIM) - Income tax / Social contribution - gloss of interest on prepayment arising from supply contracts of iron ore and port services | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 2,165,088 | 2,500,606 |
Assessment Notice and Imposition of Fine (AIIM) - Income tax / Social contribution - Due to profits from foreign subsidiaries (years 2008, 2010 and 2011) | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 1,891,149 | 1,858,640 |
Tax foreclosures - ICMS - Electricity credits | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 974,479 | 920,306 |
Installments MP 470 - alleged insufficiency of tax losses | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 704,739 | |
Offset of taxes that were not approved by the Federal Revenue Service - IRPJ/CSLL, PIS/COFINS e IPI | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 1,481,382 | 1,685,648 |
Disallowance of the ICMS credits - Transfer of iron ore | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 529,607 | 499,006 |
ICMS - Refers to the transfer of imported raw material at an amount lower than the price disclosed in the import documentation | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 294,527 | 275,233 |
Disallowance of the tax losses arising on adjustments to the SAPLI | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 516,583 | 491,862 |
Assessment Notice - ICMS - shipping and return merchandise for Industrialization | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 816,199 | |
Assessment Notice- Income tax- Capital Gain of CFM vendors located outside | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 243,007 | 203,185 |
CFEM - Divergence on the understanding between CSN and DNPM on the calculation basis | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 311,582 | 290,249 |
Other tax (federal, state, and municipal) lawsuits | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 976,438 | 3,065,131 |
Assessment Notice - ICMS - Questions about sales to incentive zone | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 3,625,167 | 170,330 |
Social security lawsuits | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 287,823 | 278,600 |
Annulment action filed by CSN against CADE | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 101,683 | 98,189 |
Other civil lawsuits | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 922,171 | 1,111,944 |
Labor and social security lawsuits | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 1,537,078 | 1,569,712 |
Environmental lawsuits - ACP TAC/PAC - Compliance with environmental obligations | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 216,878 | |
Tax foreclosures - Fine of Volta Grande IV (2) | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | 75,530 | 67,620 |
Others Environmental lawsuits | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Legal matters with possible risk of loss | R$ 144235 | R$ 117858 |
18. PROVISION FOR ENVIRONMENT_3
18. PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMENT OBLIGATIONS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement of liabilities [line items] | ||
Provision for environmental liabilities and decommissioning of assets | R$ 281766 | R$ 337013 |
Environmental liabilities | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Provision for environmental liabilities and decommissioning of assets | 198,386 | 255,517 |
Asset retirement obligations | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Provision for environmental liabilities and decommissioning of assets | R$ 83380 | R$ 81496 |
19. RELATED-PARTY BALANCES AN_3
19. RELATED-PARTY BALANCES AND TRANSACTIONS (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfRelatedpartyBalancesAndTransactionsLineItems [Line Items] | ||
Proposed dividends | R$ 477553 | R$ 0 |
Vicunha Acos | ||
DisclosureOfRelatedpartyBalancesAndTransactionsLineItems [Line Items] | ||
Proposed dividends | 439,913 | |
Rio Iaco Participacoes S.A. | ||
DisclosureOfRelatedpartyBalancesAndTransactionsLineItems [Line Items] | ||
Proposed dividends | R$ 37640 |
19. RELATED-PARTY BALANCES AN_4
19. RELATED-PARTY BALANCES AND TRANSACTIONS (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of transactions between related parties [line items] | ||
Current assets | R$ 238144 | R$ 162987 |
Noncurrent assets | 1,025,339 | 696,745 |
Current liabilities | 171,300 | 138,071 |
Noncurrent liabilities | 104,611 | 41,937 |
Total assets | 1,263,483 | 859,732 |
Total liabilities | 275,911 | 180,008 |
Accounts payable | ||
Disclosure of transactions between related parties [line items] | ||
Current liabilities | 29,286 | 57,008 |
Noncurrent liabilities | 96,629 | |
Total liabilities | 125,915 | 57,008 |
Provision for consumption and services | ||
Disclosure of transactions between related parties [line items] | ||
Current liabilities | 6,213 | |
Total liabilities | 6,213 | |
Trade payables | ||
Disclosure of transactions between related parties [line items] | ||
Current liabilities | 135,801 | 81,063 |
Total liabilities | 135,801 | 81,063 |
Actuarial liabilities | ||
Disclosure of transactions between related parties [line items] | ||
Noncurrent liabilities | 7,982 | 41,937 |
Total liabilities | 7,982 | 41,937 |
Trade receivables | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 93,317 | 115,388 |
Total assets | 93,317 | 115,388 |
Dividends receivable | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 46,171 | 41,528 |
Total assets | 46,171 | 41,528 |
Actuarial asset | ||
Disclosure of transactions between related parties [line items] | ||
Noncurrent assets | 99,894 | 111,281 |
Total assets | 99,894 | 111,281 |
Short-term investments/Investments | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 92,332 | 53 |
Total assets | 92,332 | 53 |
Loans | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 2,675 | 2,441 |
Noncurrent assets | 706,605 | 554,694 |
Total assets | 709,280 | 557,135 |
Other receivables | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 3,649 | 3,577 |
Noncurrent assets | 218,840 | 30,770 |
Total assets | R$ 222489 | R$ 34347 |
19. RELATED-PARTY BALANCES AN_5
19. RELATED-PARTY BALANCES AND TRANSACTIONS (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Related party revenues | R$ 1278751 | R$ 880145 | R$ 878992 |
Related party expenses | (1,418,282) | (1,176,930) | (1,099,851) |
Foreign exchange and monetary variation, net | 13,611 | (18,398) | |
Related party transactions, net | (77,124) | (235,236) | (181,478) |
Purchases | |||
Disclosure of transactions between related parties [line items] | |||
Related party expenses | (1,418,282) | (1,176,930) | (1,099,851) |
Interest | |||
Disclosure of transactions between related parties [line items] | |||
Related party expenses | (16,092) | (3,185) | |
Sales | |||
Disclosure of transactions between related parties [line items] | |||
Related party revenues | 1,278,751 | 880,145 | 878,992 |
Interest | |||
Disclosure of transactions between related parties [line items] | |||
Related party revenues | R$ 64888 | R$ 61549 | R$ 60964 |
19. RELATED-PARTY BALANCES AN_6
19. RELATED-PARTY BALANCES AND TRANSACTIONS (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of transactions between related parties [line items] | ||
Current assets | R$ 238144 | R$ 162987 |
Noncurrent assets | 1,025,339 | 696,745 |
Total assets | 1,263,483 | 859,732 |
Current liabilities | 171,300 | 138,071 |
Noncurrent liabilities | 104,611 | 41,937 |
Total liabilities | 275,911 | R$ 180008 |
Other Related Parties | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 147,453 | |
Noncurrent assets | 99,894 | |
Total assets | 247,347 | |
Current liabilities | 16,472 | |
Noncurrent liabilities | 7,982 | |
Total liabilities | 24,454 | |
CBS Previdencia | Other Related Parties | ||
Disclosure of transactions between related parties [line items] | ||
Noncurrent assets | 99,894 | |
Total assets | 99,894 | |
Noncurrent liabilities | 7,982 | |
Total liabilities | 7,982 | |
Banco Fibra | Other Related Parties | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 92,334 | |
Total assets | 92,334 | |
Panatlantica | Other Related Parties | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 53,027 | |
Total assets | 53,027 | |
Current liabilities | 15,643 | |
Total liabilities | 15,643 | |
Other | Other Related Parties | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 2,092 | |
Total assets | 2,092 | |
Current liabilities | 829 | |
Total liabilities | 829 | |
Arvedi Metalfer do Brasil S.A. | Associates | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 42,834 | |
Total assets | 42,834 | |
Joint Venture/Joint Operation | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 47,857 | |
Noncurrent assets | 925,445 | |
Total assets | 973,302 | |
Current liabilities | 154,828 | |
Noncurrent liabilities | 96,629 | |
Total liabilities | 251,457 | |
Joint Venture/Joint Operation | Ita Energetica S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Current liabilities | 2,550 | |
Total liabilities | 2,550 | |
Joint Venture/Joint Operation | MRS Logistica S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 46,243 | |
Total assets | 46,243 | |
Current liabilities | 101,264 | |
Noncurrent liabilities | 96,629 | |
Total liabilities | 197,893 | |
Joint Venture/Joint Operation | CBSI | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 3 | |
Total assets | 3 | |
Current liabilities | 37,362 | |
Total liabilities | 37,362 | |
Joint Venture/Joint Operation | Transnordestina Logistica S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Current assets | 1,611 | |
Noncurrent assets | 925,445 | |
Total assets | 927,056 | |
Current liabilities | 13,652 | |
Total liabilities | R$ 13652 |
19. RELATED-PARTY BALANCES AN_7
19. RELATED-PARTY BALANCES AND TRANSACTIONS (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Related party sales | R$ 1278751 | R$ 880145 | R$ 878992 |
Related party purchases | (1,418,282) | (1,176,930) | (1,099,851) |
Relared party finance income and costs, net | 48,796 | 57,779 | |
Foreign exchange and monetary variation, net | 13,611 | (18,398) | |
Related party transactions, net | (77,124) | (181,478) | |
AssociatesMember | Discontinued operations [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party sales | 43,250 | ||
Related party purchases | (138) | ||
Relared party finance income and costs, net | (130) | ||
Related party transactions, net | 42,982 | ||
Arvedi Metalfer do Brasil | AssociatesMember | |||
Disclosure of transactions between related parties [line items] | |||
Related party sales | 100,608 | ||
Relared party finance income and costs, net | 234 | ||
Related party transactions, net | 100,842 | ||
Arvedi Metalfer do Brasil S,A, | AssociatesMember | |||
Disclosure of transactions between related parties [line items] | |||
Related party sales | 31,026 | ||
Relared party finance income and costs, net | 2,995 | ||
Related party transactions, net | 34,021 | ||
Joint Venture/Joint Operation | |||
Disclosure of transactions between related parties [line items] | |||
Related party sales | 414 | 2,604 | 5,057 |
Related party purchases | (1,307,694) | (1,125,228) | (1,082,272) |
Relared party finance income and costs, net | 33,911 | 53,261 | 55,758 |
Related party transactions, net | (1,273,369) | (1,069,363) | (1,021,457) |
Joint Venture/Joint Operation | Ita Energetica | |||
Disclosure of transactions between related parties [line items] | |||
Related party purchases | (32,275) | (32,363) | |
Related party transactions, net | (32,275) | (32,363) | |
Joint Venture/Joint Operation | MRS Logistica | |||
Disclosure of transactions between related parties [line items] | |||
Related party purchases | (1,111,695) | (934,279) | (903,030) |
Relared party finance income and costs, net | (16,092) | ||
Related party transactions, net | (1,127,787) | (934,279) | (903,030) |
Joint Venture/Joint Operation | CBSI - Companhia Brasileira de Servicos e Infraestrutura | |||
Disclosure of transactions between related parties [line items] | |||
Related party sales | 47 | 55 | 18 |
Related party purchases | (180,332) | (150,758) | (138,374) |
Related party transactions, net | (180,285) | (150,703) | (138,356) |
Joint Venture/Joint Operation | Transnordestina Logistica S,A | |||
Disclosure of transactions between related parties [line items] | |||
Related party sales | 367 | 2,549 | 5,039 |
Related party purchases | (15,667) | (7,916) | (8,505) |
Relared party finance income and costs, net | 50,003 | 53,261 | 55,758 |
Related party transactions, net | 34,703 | 47,894 | 52,292 |
Other Related Parties | |||
Disclosure of transactions between related parties [line items] | |||
Related party sales | 1,177,729 | 874,881 | 799,659 |
Related party purchases | (110,588) | (51,702) | (17,441) |
Relared party finance income and costs, net | 14,651 | 6,290 | (844) |
Foreign exchange and monetary variation, net | 13,611 | (18,398) | |
Related party transactions, net | 1,095,403 | 829,469 | 762,976 |
Other Related Parties | Fundacao CSN | |||
Disclosure of transactions between related parties [line items] | |||
Related party purchases | (4,045) | (4,045) | |
Related party transactions, net | (4,045) | (4,045) | |
Other Related Parties | Banco Fibra | |||
Disclosure of transactions between related parties [line items] | |||
Relared party finance income and costs, net | 14,651 | (844) | (844) |
Foreign exchange and monetary variation, net | 13,611 | (18,398) | (18,398) |
Related party transactions, net | 28,262 | (19,242) | (19,242) |
Other Related Parties | Usiminas | |||
Disclosure of transactions between related parties [line items] | |||
Related party sales | 17,027 | 17,027 | |
Related party purchases | (382) | (6,026) | (6,026) |
Related party transactions, net | (382) | 11,001 | 11,001 |
Other Related Parties | Panatlantica | |||
Disclosure of transactions between related parties [line items] | |||
Related party sales | 1,174,984 | 779,503 | 779,503 |
Related party purchases | (94,515) | ||
Related party transactions, net | 1,080,469 | 779,503 | 779,503 |
Other Related Parties | Ibis Participacoes e Servicos | |||
Disclosure of transactions between related parties [line items] | |||
Related party sales | 47 | 47 | |
Related party purchases | (4,501) | (7,370) | (7,370) |
Related party transactions, net | (4,501) | (7,323) | R$ 7323 |
Other Related Parties | Other | |||
Disclosure of transactions between related parties [line items] | |||
Related party sales | 2,745 | 3,082 | |
Related party purchases | (11,190) | ||
Related party transactions, net | R$ 8445 | 3,082 | |
Other Related Parties | Partfib Projetos Imobiliarios | |||
Disclosure of transactions between related parties [line items] | |||
Related party sales | 2,821 | ||
Related party transactions, net | 2,821 | ||
Other Related Parties | Vicunha Textil S.A. | |||
Disclosure of transactions between related parties [line items] | |||
Related party purchases | (232) | ||
Related party transactions, net | (232) | ||
Other Related Parties | Vicunha Servicos Ltda. | |||
Disclosure of transactions between related parties [line items] | |||
Related party purchases | (61) | ||
Related party transactions, net | R$ 61 |
19. RELATED-PARTY BALANCES AN_8
19. RELATED-PARTY BALANCES AND TRANSACTIONS (Details 5) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Relatedparty Balances And Transactions Details 4Abstract | |||
Short-term benefits for employees and officers | R$ 32848 | R$ 39721 | R$ 71852 |
Post-employment benefits | 105 | 110 | 306 |
Key management personnel compensation | R$ 32953 | R$ 39831 | R$ 71158 |
20. SHAREHOLDERS' EQUITY (Detai
20. SHAREHOLDERS' EQUITY (Details) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Number of common shares outstanding | 1,387,524,047 | 1,387,524,047 |
Percent of total shares | 100.00% | 100.00% |
USIM3 | ||
Number of common shares outstanding | 1,380,114,547 | |
Percent of total shares | 99.47% | |
Percent of voting capital | 100.00% | |
Treasury shares | ||
Number of common shares outstanding | 7,409,500 | 30,391,000 |
Percent of total shares | 0.53% | 2.19% |
Common | ||
Number of common shares outstanding | 1,357,133,047 | |
Percent of total shares | 97.81% | |
Percent of voting capital | 100.00% | |
Vicunha Acos S.A. | ||
Number of common shares outstanding | 679,522,254 | 682,855,454 |
Percent of total shares | 48.97% | 49.21% |
Percent of voting capital | 49.24% | 50.32% |
Rio Iaco Participacoes S.A. | ||
Number of common shares outstanding | 58,193,503 | 58,193,503 |
Percent of total shares | 4.19% | 4.19% |
Percent of voting capital | 4.22% | 4.29% |
NYSE (ADRs) | ||
Number of common shares outstanding | 284,152,319 | 303,590,364 |
Percent of total shares | 20.48% | 21.88% |
Percent of voting capital | 20.59% | 22.37% |
Other | ||
Number of common shares outstanding | 358,246,471 | 312,493,726 |
Percent of total shares | 25.82% | 22.52% |
Percent of voting capital | 25.95% | 23.02% |
20. SHAREHOLDERS' EQUITY (Det_2
20. SHAREHOLDERS' EQUITY (Details 1) - R$ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Average buyback price | R$ 7.86 | |
Number bought back | 7,409,500 | |
Balance in treasury | 1,387,524,047 | 1,387,524,047 |
Buyback program 1 | ||
Board's Authorization | 3/13/2014 | |
Authorized quantity | 70,205,661 | |
Program Period | From 3/14/2014 to 4/14/2014 | |
Average buyback price | R$ 9.34 | |
Minimum and maximum buyback price | R$ 9,22 and R$ 9,45 | |
Number bought back | 2,350,000 | |
Balance in treasury | 2,350,000 | |
Buyback program 2 | ||
Board's Authorization | 4/15/2014 | |
Authorized quantity | 67,855,661 | |
Program Period | From 4/16/2014 to 5/23/2014 | |
Average buyback price | R$ 8.97 | |
Minimum and maximum buyback price | R$ 8,70 and R$ 9,48 | |
Number bought back | 9,529,500 | |
Balance in treasury | 11,879,500 | |
Buyback program 3 | ||
Board's Authorization | 5/23/2014 | |
Authorized quantity | 58,326,161 | |
Program Period | From 5/26/2014 to 6/25/2014 | |
Average buyback price | R$ 9.21 | |
Minimum and maximum buyback price | R$ 8,61 and R$ 9,72 | |
Number bought back | 31,544,500 | |
Balance in treasury | 43,424,000 | |
Buyback program 4 | ||
Board's Authorization | 6/26/2014 | |
Authorized quantity | 26,781,661 | |
Program Period | From 6/26/2014 to 7/17/2014 | |
Average buyback price | R$ 10.42 | |
Minimum and maximum buyback price | R$ 9,33 and R$ 11,54 | |
Number bought back | 26,781,661 | |
Balance in treasury | 70,205,661 | |
Buyback program 4 (2) | ||
Board's Authorization | 7/18/2014 | |
Average buyback price | ||
Minimum and maximum buyback price | Not applicable | |
Share cancelation | 60,000,000 | |
Balance in treasury | 10,205,661 | |
Buyback program 5 | ||
Board's Authorization | 7/18/2014 | |
Authorized quantity | 64,205,661 | |
Program Period | From 7/18/2014 to 8/18/2014 | |
Average buyback price | R$ 11.40 | |
Minimum and maximum buyback price | R$ 11.40 | |
Number bought back | 240,400 | |
Balance in treasury | 10,446,061 | |
Buyback program 5 (2) | ||
Board's Authorization | 8/18/2014 | |
Average buyback price | ||
Minimum and maximum buyback price | Not applicable | |
Share cancelation | 10,446,061 | |
Buyback program 6 | ||
Board's Authorization | 8/18/2014 | |
Authorized quantity | 63,161,055 | |
Program Period | From 8/19/2014 to 9/25/2014 | |
Average buyback price | R$ 9.82 | |
Minimum and maximum buyback price | R$ 9,47 and R$ 10,07 | |
Number bought back | 6,791,300 | |
Balance in treasury | 6,791,300 | |
Buyback program 7 | ||
Board's Authorization | 9/29/2014 | |
Authorized quantity | 56,369,755 | |
Program Period | From 9/29/2014 to 2/29/2014 | |
Average buyback price | R$ 7.49 | |
Minimum and maximum buyback price | R$ 4,48 and R$ 9,16 | |
Number bought back | 21,758,600 | |
Balance in treasury | 28,549,900 | |
Buyback program 8 | ||
Board's Authorization | 12/30/2014 | |
Authorized quantity | 34,611,155 | |
Program Period | From 12/31/2014 to 3/31/2015 | |
Average buyback price | R$ 5.10 | |
Minimum and maximum buyback price | R$ 4,90 and R$ 5,39 | |
Number bought back | 1,841,100 | |
Balance in treasury | 30,391,000 | |
Buyback program 9 | ||
Board's Authorization | 03/31/2015 | |
Authorized quantity | 32,770,055 | |
Program Period | From 4/01/2015 to 6/30/2015 | |
Balance in treasury | 30,391,000 | |
Buyback program 9 (2) | ||
Board's Authorization | 04/20/2018 | |
Authorized quantity | 30,391,000 | |
Program Period | From 4/20/2018 to 4/30/2018 | |
Average buyback price | ||
Minimum and maximum buyback price | Não aplicável | |
Number bought back | 0 | |
Share cancelation | 0 | |
Disposal of shares | 22,981,500 | |
Balance in treasury | 7,409,500 |
20. SHAREHOLDERS' EQUITY (Det_3
20. SHAREHOLDERS' EQUITY (Details 2) - BRL (R$) R$ / shares in Units, R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Shareholders Equity Details 2Abstract | ||
Treasury share purchased | 7,409,500 | |
Amount paid for treasury share | R$ 58264 | R$ 238976 |
Minimum share price | R$ 4.48 | |
Maximum share price | 10.07 | |
Average share price | R$ 7.86 | |
Treasury share market price | R$ 65500 |
20. SHAREHOLDERS' EQUITY (Det_4
20. SHAREHOLDERS' EQUITY (Details 3) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
(Loss) profit for the year | |||
Continued operations | R$ 5074136 | R$ 10272 | R$ 925186 |
Discontinued operations | 0 | 0 | (9,561) |
(Loss) profit for the year | R$ 5074136 | R$ 10272 | R$ 934747 |
Weighted average number of shares | 1,373,250,595 | 1,357,133,047 | 1,357,133,047 |
Basic and diluted EPS | |||
Continued Operations | R$ 3.69498 | R$ 0.00757 | R$ 0.68172 |
Discontinued Operations | 0 | 0 | (0.00704) |
Basic and diluted EPS | R$ 3.69498 | R$ 0.00757 | R$ 0.68876 |
20. SHAREHOLDERS' EQUITY (Det_5
20. SHAREHOLDERS' EQUITY (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Shareholders Equity Details Narrative Abstract | ||
Issued capital | R$ 4540000 | R$ 4540000 |
Number of common shares outstanding | 1,387,524,047 | 1,387,524,047 |
21. PAYMENT TO SHAREHOLDERS (De
21. PAYMENT TO SHAREHOLDERS (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Payment To Shareholders Details Abstract | |||
Profit for the year | R$ 5074136 | R$ 10272 | R$ 934747 |
Absorption of deficits | (1,291,689) | ||
Legal reserve | (189,122) | ||
Allocation of profits | 3,593,325 | ||
Proposed destination: | |||
Mandatory minimum dividends | (898,332) | ||
Intended for statutory reserve of working capital | (2,694,993) | ||
In current liabilities | |||
Dividends to be paid on December 31, 2017 | 2,209 | ||
Mandatory minimum dividends | 898,332 | ||
Dividends to be paid on December 31, 2018 | R$ 900541 | R$ 2209 | |
Weighted average number of shares | 1,373,251 | ||
Dividends per share approved | R$ 0.65416 |
21. PAYMENT TO SHAREHOLDERS (_2
21. PAYMENT TO SHAREHOLDERS (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Approved dividends | R$ 898332 |
Dividend 1 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Approval year | 2017 (*) |
Approved dividends | R$ 0 |
Payment year | 2017 |
Paid dividends | R$ 0 |
Dividend 2 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Approval year | 2018 |
Approved dividends | R$ 898332 |
Payment year | 2018 |
Paid dividends | R$ 0 |
22. NET SALES AND SERVICES RE_3
22. NET SALES AND SERVICES REVENUE (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Gross revenue | R$ 26570460 | R$ 21467583 | R$ 19777825 |
Sales returns and discounts | (234,851) | (262,989) | (190,415) |
Taxes on sales | (3,366,724) | (2,679,993) | (2,438,461) |
Deductions | (3,601,575) | (2,942,982) | (2,628,876) |
Net revenues | 22,968,885 | 18,524,601 | 17,148,949 |
Domestic market | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Gross revenue | 14,752,901 | 11,487,011 | 10,206,195 |
Net revenues | 11,353,437 | 8,706,466 | 7,729,913 |
Foreign market | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Gross revenue | 11,817,559 | 9,980,572 | 9,571,630 |
Net revenues | R$ 11615448 | R$ 9818135 | R$ 9419036 |
23. EXPENSES BY NATURE (Details
23. EXPENSES BY NATURE (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Expenses by Nature | R$ 18863368 | R$ 15827089 | R$ 14855170 |
Cost of sales and services | (16,105,657) | (13,596,141) | (12,640,042) |
Selling expenses | (2,263,688) | (1,815,107) | (1,696,896) |
General and administrative expenses | (494,023) | (415,841) | (518,232) |
Raw materials and inputs | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Expenses by Nature | (6,759,275) | (5,404,801) | (4,518,718) |
Labor cost | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Expenses by Nature | (2,743,460) | (2,400,579) | (2,482,111) |
Supplies | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Expenses by Nature | (1,782,576) | (1,451,437) | (1,384,437) |
Maintenance cost (services and materials) | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Expenses by Nature | (1,326,894) | (1,145,974) | (1,203,294) |
Outsourcing services | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Expenses by Nature | (2,368,387) | (2,062,352) | (2,228,786) |
Freight | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Expenses by Nature | (1,802,541) | (1,362,087) | 0 |
Depreciation, amortization and depletion | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Expenses by Nature | (1,175,107) | (1,408,765) | (1,278,816) |
Other | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Expenses by Nature | R$ 905128 | R$ 591094 | R$ 495274 |
23. EXPENSES BY NATURE (Detai_2
23. EXPENSES BY NATURE (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expenses By Nature Details 1Abstract | |||
Production costs | R$ 1145793 | R$ 1376862 | R$ 1241425 |
Sales expenses | 5,850 | 8,851 | 9,163 |
General and Administrative Expenses | 23,464 | 23,052 | 28,228 |
Depreciation, amortization and depletion | 1,175,107 | 1,408,765 | 1,278,816 |
Other operating expenses | (1,330,706) | (646,944) | (1,076,730) |
Total | R$ 1273021 | R$ 1453335 | R$ 1322497 |
24. OTHER OPERATING INCOME (E_3
24. OTHER OPERATING INCOME (EXPENSES) (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating income | R$ 4036043 | R$ 824286 | R$ 663509 | |
Other operating expenses | (1,330,706) | (646,944) | (1,076,730) | |
Other operating income (expenses), net | 2,705,337 | 177,342 | (413,221) | |
Taxes and fees | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (26,197) | (136,348) | (88,249) | |
Write-off / (Provision) of judicial deposits | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (54,330) | (38,258) | (64,886) | |
Expenses with environmental liabilities, net | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (60,311) | (7,156) | (5,023) | |
Expenses from tax, social security, labor, civil and environmental law suits | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (59,219) | (95,744) | ||
Contractual fines | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (104,086) | |||
Depreciation of unused equipment and amortization of intangible assets | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (97,914) | (44,570) | (43,681) | |
Write off of PP&E and Intangible assets | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (27,260) | (28,127) | (88,339) | |
Losses /reversals estimated in inventories | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (149,704) | (12,903) | (29,316) | |
Losses on spare parts | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (2,872) | |||
Studies and project engineering expenses | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (33,738) | (32,956) | (31,156) | |
Research and development expenses | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (2,688) | (3,944) | R$ 2269 | |
Advisory expenses | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (508) | (3,419) | (20,865) | |
Healthcare plan expenses | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (108,369) | (97,837) | (80,489) | |
Provisions/(Provision) for industrial restructuring | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (17,490) | 5,807 | 96,390 | |
Hedge cash flow realized | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (370,191) | (92,140) | (77,444) | |
Impairment of fair value of Transnordestina | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (387,989) | |||
Other expenses | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating expenses | (218,701) | (56,477) | (85,256) | |
Indemnities/gains on lawsuits | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating income | 46,256 | 6,106 | 26,871 | |
Rentals and leases | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating income | 5,430 | 1,841 | 1,483 | |
Dividends received | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating income | 9,188 | 3,248 | 567 | |
Extemporaneous PIS/COFINS credits | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating income | 1,102,365 | 203,504 | ||
Contractual fines | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating income | 3,965 | 2,970 | 2,501 | |
Gain on business combination | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating income | 66,496 | |||
Actuarial pension plan | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating income | 20,983 | 36,952 | 48,790 | |
Updated shares - VJR | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating income | 1,655,813 | |||
Gain on sale of LLC | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating income | 1,164,294 | |||
Other revenues | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating income | R$ 27749 | 18,018 | 61,274 | |
Gain on sales of assets held for sale | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Other operating income | R$ 755151 | R$ 252023 |
25. FINANCIAL INCOME (EXPENSE_3
25. FINANCIAL INCOME (EXPENSES) (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial income | R$ 1310514 | R$ 295074 | R$ 643590 |
Financial expenses | (2,806,157) | (2,758,701) | (3,166,017) |
Inflation adjustment and exchange differences, net | (533,919) | 116,948 | |
Financial income (expense), net | (1,495,643) | (2,463,627) | (2,522,427) |
Statement of gains and (losses) on derivative transactions | (1) | 28,274 | (812,227) |
Dollar-to-euro swap | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Statement of gains and (losses) on derivative transactions | (1) | (229) | (6,467) |
Future DI | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Statement of gains and (losses) on derivative transactions | 28,503 | 5,829 | |
Future Dollar | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Statement of gains and (losses) on derivative transactions | (805,760) | ||
Swap Pre x CDI | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Statement of gains and (losses) on derivative transactions | (299) | ||
Swap CDI x Pre | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Statement of gains and (losses) on derivative transactions | (63) | ||
Borrowings and financing - foreign currency | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial expenses | (988,821) | (827,841) | (930,508) |
Borrowings and financing - local currency | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial expenses | (1,020,867) | (1,610,714) | (2,229,849) |
Related parties | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial expenses | (16,092) | (3,185) | |
Capitalized interest | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial expenses | 71,611 | 91,957 | 215,794 |
Losses on derivatives | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial expenses | (362) | ||
Interest, fines and late payment charges | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial expenses | (71,100) | (72,343) | (38,002) |
Commission and bank fees | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial expenses | (182,179) | (159,088) | (155,249) |
PIS/COFINS over financial income | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial expenses | (84,404) | (21,926) | (39,154) |
Other financial expenses | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial expenses | 19,614 | (142,296) | (102,450) |
Inflation adjustment and exchange differences, net | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial expenses | (16,450) | ||
Inflation adjustment and exchange differences, net | (1,035) | 7,865 | |
Inflation adjustments, net | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial expenses | (10,556) | ||
Exchange differences, net | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial expenses | (5,665) | ||
Inflation adjustment and exchange differences, net | (532,883) | 921,310 | |
Exchange gain (losses) on derivatives | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial expenses | (229) | ||
Inflation adjustment and exchange differences, net | (1) | (812,227) | |
Related parties | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial income | 64,888 | 61,549 | 60,964 |
Income from financial investments | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial income | 111,235 | 162,292 | 301,401 |
Gain from derivative | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial income | 28,503 | 5,829 | |
Gain on repurchase of debt securities | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial income | 146,214 | ||
Other income | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Financial income | R$ 1134391 | R$ 42730 | R$ 129182 |
26. SEGMENT INFORMATION (Detail
26. SEGMENT INFORMATION (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of operating segments [line items] | |||
Net revenues | R$ 22968885 | R$ 18524601 | R$ 17148949 |
Cost of sales and services | (16,105,657) | (13,596,141) | (12,640,042) |
Gross profit | 6,863,228 | 4,928,460 | 4,508,907 |
General and administrative expenses | (2,757,711) | (2,230,948) | (2,215,128) |
Depreciation | 1,175,107 | 1,408,765 | 1,278,816 |
Proportionate EBITDA of joint ventures | 568,045 | 538,170 | 502,345 |
Adjusted EBITDA | 5,848,669 | 4,644,447 | 4,074,940 |
Domestic market | |||
Disclosure of operating segments [line items] | |||
Net revenues | 11,353,437 | 8,706,466 | 7,729,913 |
Foreign market | |||
Disclosure of operating segments [line items] | |||
Net revenues | R$ 11615448 | R$ 9818135 | R$ 9419036 |
Steel | |||
Disclosure of operating segments [line items] | |||
Metric tons (Thou.) | 5,068,758 | 4921719 | 4,857,174 |
Net revenues | R$ 15634143 | R$ 12959023 | R$ 11515908 |
Cost of sales and services | 12,613,216 | (10,537,547) | 9,393,237 |
Gross profit | 3,020,927 | 2,421,476 | 2,122,671 |
General and administrative expenses | (984,980) | (963,822) | (914,927) |
Depreciation | 609,274 | 658,587 | 679,074 |
Adjusted EBITDA | 2,645,221 | 2,116,241 | 1,886,818 |
Steel | Domestic market | |||
Disclosure of operating segments [line items] | |||
Net revenues | 10,328,372 | 7,818,552 | 6,980,087 |
Steel | Foreign market | |||
Disclosure of operating segments [line items] | |||
Net revenues | R$ 5305771 | R$ 5140471 | R$ 4535821 |
Mining | |||
Disclosure of operating segments [line items] | |||
Metric tons (Thou.) | 34,780,756 | 32576843 | 36,983,297 |
Net revenues | R$ 5984781 | R$ 4620971 | R$ 4581903 |
Cost of sales and services | 3,585,691 | (3,005,840) | 3,099,236 |
Gross profit | 2,399,090 | 1,615,131 | 1,482,667 |
General and administrative expenses | (144,754) | (158,958) | (185,149) |
Depreciation | 366,547 | 490,805 | 461,287 |
Adjusted EBITDA | 2,620,883 | 1,946,978 | 1,758,805 |
Mining | Domestic market | |||
Disclosure of operating segments [line items] | |||
Net revenues | 972,360 | 829,268 | 542,028 |
Mining | Foreign market | |||
Disclosure of operating segments [line items] | |||
Net revenues | 5,012,421 | 3,791,703 | 4,039,875 |
Port | |||
Disclosure of operating segments [line items] | |||
Net revenues | 266,378 | 238,240 | 207,722 |
Cost of sales and services | 189,999 | (156,997) | 141,542 |
Gross profit | 76,379 | 81,243 | 66,180 |
General and administrative expenses | (35,423) | (27,943) | (25,180) |
Depreciation | 20,368 | 15,752 | 13,430 |
Adjusted EBITDA | 61,324 | 69,052 | 54,430 |
Port | Domestic market | |||
Disclosure of operating segments [line items] | |||
Net revenues | 266,378 | 238,240 | 207,722 |
Port | Foreign market | |||
Disclosure of operating segments [line items] | |||
Net revenues | |||
Railroads | |||
Disclosure of operating segments [line items] | |||
Net revenues | 1,506,114 | 1,416,612 | 1,319,907 |
Cost of sales and services | 1,049,071 | (1,024,696) | 914,361 |
Gross profit | 457,043 | 391,916 | 405,546 |
General and administrative expenses | (106,412) | (94,921) | (83,020) |
Depreciation | 258,985 | 294,571 | 227,792 |
Adjusted EBITDA | 609,616 | 591,566 | 550,318 |
Railroads | Domestic market | |||
Disclosure of operating segments [line items] | |||
Net revenues | 1,506,114 | 1,416,612 | 1,319,907 |
Railroads | Foreign market | |||
Disclosure of operating segments [line items] | |||
Net revenues | |||
Energy | |||
Disclosure of operating segments [line items] | |||
Net revenues | 410,606 | 407,671 | 269,095 |
Cost of sales and services | 286,734 | (285,085) | 195,994 |
Gross profit | 123,872 | 122,586 | 73,101 |
General and administrative expenses | (27,948) | (27,098) | (25,196) |
Depreciation | 17,285 | 17,265 | 17,140 |
Adjusted EBITDA | 113,209 | 112,753 | 65,045 |
Energy | Domestic market | |||
Disclosure of operating segments [line items] | |||
Net revenues | 410,606 | 407,671 | 269,095 |
Energy | Foreign market | |||
Disclosure of operating segments [line items] | |||
Net revenues | |||
Cement | |||
Disclosure of operating segments [line items] | |||
Metric tons (Thou.) | 3,313,061 | ||
Net revenues | 588,230 | R$ 487129 | 490,608 |
Cost of sales and services | 544,266 | (512,762) | 467,373 |
Gross profit | 43,964 | (25,633) | 23,235 |
General and administrative expenses | (95,893) | (80,823) | (74,528) |
Depreciation | 115,411 | 121,801 | 73,030 |
Adjusted EBITDA | 63,482 | 15,345 | 21,737 |
Cement | Domestic market | |||
Disclosure of operating segments [line items] | |||
Net revenues | 588,230 | 487,129 | R$ 490608 |
Cement | Foreign market | |||
Disclosure of operating segments [line items] | |||
Net revenues | |||
Corporate expenses/elimination | |||
Disclosure of operating segments [line items] | |||
Metric tons (Thou.) | (5,359,571) | (4,062,774) | |
Net revenues | (1,421,367) | R$ 1605045 | R$ 1236194 |
Cost of sales and services | (2,163,320) | 1,926,786 | (1,571,701) |
Gross profit | 741,953 | 321,741 | 335,507 |
General and administrative expenses | (1,362,301) | (877,383) | (907,128) |
Depreciation | (212,763) | (190,016) | (192,937) |
Proportionate EBITDA of joint ventures | 568,045 | 538,170 | 502,345 |
Adjusted EBITDA | (265,066) | (207,488) | (262,213) |
Corporate expenses/elimination | Domestic market | |||
Disclosure of operating segments [line items] | |||
Net revenues | (2,718,623) | (2,491,006) | (2,079,534) |
Corporate expenses/elimination | Foreign market | |||
Disclosure of operating segments [line items] | |||
Net revenues | R$ 1297256 | R$ 885961 | R$ 843340 |
26. SEGMENT INFORMATION (Deta_2
26. SEGMENT INFORMATION (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Information Details 1Abstract | |||
Net income / (loss) for the year | R$ 5200583 | R$ 111229 | R$ 853058 |
Result from discontinued operations with the following value 9,561 | 0 | 0 | 9,561 |
Depreciation / amortization / depletion (note 23) | 1,175,107 | 1,408,765 | 1,278,816 |
Income tax and social contribution (note 15) | 250,334 | 409,109 | 266,546 |
Financial income / (expenses) (note 25) | 1,495,643 | 2,463,627 | 2,522,427 |
EBITDA | 8,121,667 | 4,392,730 | 3,224,292 |
Other operating (income) / expenses (note 24) | (2,705,337) | (177,342) | 413,221 |
Equity in results of affiliated companies | (135,706) | (109,111) | (64,918) |
Proportionate EBITDA of joint ventures | 568,045 | 538,170 | 502,345 |
Adjusted EBITDA (*) | R$ 5848669 | R$ 4644447 | R$ 4074940 |
27. EMPLOYEE BENEFITS (Details)
27. EMPLOYEE BENEFITS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of fair value of plan assets [line items] | |||
Actuarial assets | R$ 99894 | R$ 111281 | |
Actuarial liabilities | 905,119 | 908,721 | |
Pension plan benefits | |||
Disclosure of fair value of plan assets [line items] | |||
Actuarial assets | (99,894) | (111,281) | |
Actuarial liabilities | 7,982 | 41,937 | |
Post-employment healthcare benefits | |||
Disclosure of fair value of plan assets [line items] | |||
Actuarial assets | 0 | 0 | |
Actuarial liabilities | R$ 897137 | R$ 866784 | R$ 691262 |
27. EMPLOYEE BENEFITS (Details
27. EMPLOYEE BENEFITS (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Employee Benefits Details 1Abstract | |||
Present value of defined benefit obligation | R$ 3087433 | R$ 3077849 | R$ 2872442 |
Fair value of plan assets | (3,403,906) | (3,305,356) | R$ 3193493 |
Deficit (Surplus) | (316,473) | (227,507) | |
Restriction to actuarial assets due to recovery limitation | 224,561 | 158,163 | |
Liabilities (Assets), net | (91,912) | (69,344) | |
Liabilities | 7,982 | 41,937 | |
Assets | (99,894) | (111,281) | |
(Assets) liabilities recognized in the balance sheet | R$ 91912 | R$ 69344 |
27. EMPLOYEE BENEFITS (Detail_2
27. EMPLOYEE BENEFITS (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits Details 2Abstract | ||
Present value of defined benefit obligation, beginning | R$ 3077849 | R$ 2872442 |
Cost of service | 1,169 | 1,285 |
Interest cost | 304,132 | 322,359 |
Benefits paid | (280,493) | (284,777) |
Actuarial loss/(gain) | (15,224) | 166,540 |
Present value of defined benefit obligation, ending | R$ 3087433 | R$ 3077849 |
27. EMPLOYEE BENEFITS (Detail_3
27. EMPLOYEE BENEFITS (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits Details 3Abstract | ||
Fair value of plan assets, beginning | R$ 3305356 | R$ 3193493 |
Interest income | (327,830) | (360,013) |
Benefits paid | 280,493 | 284,777 |
Expected return on plan assets (less interest income) | (51,213) | (36,627) |
Fair value of plan assets, ending | R$ 3403906 | R$ 3305356 |
27. EMPLOYEE BENEFITS (Detail_4
27. EMPLOYEE BENEFITS (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits Details 4Abstract | ||
Cost of current service | R$ 1169 | R$ 1285 |
Interest cost | 304,132 | 322,359 |
Expected return on plan assets | (327,830) | (360,013) |
Interest on the asset ceiling effect | 16,340 | 26,843 |
Total | (6,189) | (9,526) |
Total unrecognized costs / (income) (*) | 0 | 6 |
Total costs / (income) recognized in the income statement | (6,189) | (9,532) |
Total costs / (income), net (*) | R$ 6189 | R$ 9526 |
27. EMPLOYEE BENEFITS (Detail_5
27. EMPLOYEE BENEFITS (Details 5) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits Details 5Abstract | ||
Actuarial losses and (gains) | R$ 15224 | R$ 166540 |
Return on plan assets (less interest income) | (51,213) | (36,627) |
Total | (66,437) | 129,913 |
Actuarial losses and (gains) recognized in other comprehensive income | (16,379) | 32,037 |
Unrecognized actuarial (gains) | 0 | (6) |
Total | R$ 66437 | R$ 129913 |
27. EMPLOYEE BENEFITS (Detail_6
27. EMPLOYEE BENEFITS (Details 6) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits Details 6Abstract | ||
Loss due to change in demographic assumptions | R$ 139813 | |
Loss due to change in financial assumptions | 46,917 | |
Loss due to experience adjustments | 77,672 | |
Return on plan assets (less interest income) | (51,213) | R$ 36627 |
Actuarial losses and (gains) | R$ 66437 | R$ 129913 |
27. EMPLOYEE BENEFITS (Detail_7
27. EMPLOYEE BENEFITS (Details 7) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits Details 7Abstract | ||
Actuarial financing method | Projected unit credit | Projected unit credit |
Functional currency | Real (R$) | Real (R$) |
Recognition of plan assets | Fair value | Fair value |
Nominal discount rate | Millennium Plan: 9.69% Plan 35%: 9.60% Supplementation: 9.59% | Milenium Plan: 10.42% Plan 35%: 10.30% and Supplementation: 10.32% |
Inflation rate | 4.75% | 5.00% |
Nominal salary increase rate | 5.80% | 6.05% |
Nominal benefit increase rate | 4.75% | 5.00% |
Rate of return on investments | Millennium Plan: 9.69% Plan 35%: 9.60% Supplementation: 9.59% | Milenium Plan: 10.42% Plan 35%: 10.30% and Supplementation: 10.32% |
General mortality table | Millennium Plan: AT-2000 smoothed down by 10% segregated by gender. Plans 35%: AT-2000 Male aggravated by 15%. Supplementation: AT-2000 aggravated by 10% segregated by gender. | 35% and Average Salary Supplementation Plans : AT 2000 segregated by gender (10% smoothed) |
Disability table | 35% Plan and Supplementation: Light Medium. Millenium Plan: Prudential (Ferr. Retirement) | Plan 35% and Supplementation: Light Média Millênnium Plan: Prudential ( retirement) |
Disability mortality table | Winklevoss - 1% | Winklevoss - 1% |
Turnover table | Millenium plan 5% per annum, zero for plans 35% and Supplementation. | Millennium plan 5% p.a., nil for DB plans |
Retirement age | 100% on the first date he/she becomes eligible for programmed retirement benefit under the plan | 100% on the first date he/she becomes eligible for programmed retirement benefit under the plan |
Household composition of active participants | 95% will be married at the time of retirement, with the wife being 4 years younger than the husband | 95% will be married at the time of retirement, with the wife being 4 years younger than the husband |
27. EMPLOYEE BENEFITS (Detail_8
27. EMPLOYEE BENEFITS (Details 8) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Plan covering 35% of the average salary | Male | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 18 | 21 |
Average life expectancy in years of employees who are 40 (in years) | 40 | 43 |
Plan covering 35% of the average salary | Female | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 18 | 23 |
Average life expectancy in years of employees who are 40 (in years) | 40 | 47 |
Average salary supplementation plan | Male | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 18.74 | 20.45 |
Average life expectancy in years of employees who are 40 (in years) | 40.6 | 42.69 |
Average salary supplementation plan | Female | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 22.23 | 23.02 |
Average life expectancy in years of employees who are 40 (in years) | 45.37 | 46.29 |
Milenio Plan | Male | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 21 | 21 |
Average life expectancy in years of employees who are 40 (in years) | 43 | 43 |
Milenio Plan | Female | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 23 | 23 |
Average life expectancy in years of employees who are 40 (in years) | 47 | 47 |
27. EMPLOYEE BENEFITS (Detail_9
27. EMPLOYEE BENEFITS (Details 9) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [line items] | |||
Allocation of plan assets | R$ 3403906 | R$ 3305356 | R$ 3193493 |
Allocation of plan assets percent | 100.00% | 100.00% | |
Variable income | |||
Disclosure of defined benefit plans [line items] | |||
Allocation of plan assets | R$ 141705 | R$ 50966 | |
Allocation of plan assets percent | 4.16% | 1.54% | |
Fixed income | |||
Disclosure of defined benefit plans [line items] | |||
Allocation of plan assets | R$ 3050099 | R$ 3085783 | |
Allocation of plan assets percent | 89.61% | 93.36% | |
Real estate | |||
Disclosure of defined benefit plans [line items] | |||
Allocation of plan assets | R$ 52091 | R$ 44083 | |
Allocation of plan assets percent | 1.53% | 1.33% | |
Others | |||
Disclosure of defined benefit plans [line items] | |||
Allocation of plan assets | R$ 160011 | R$ 124524 | |
Allocation of plan assets percent | 4.70% | 3.77% |
27. EMPLOYEE BENEFITS (Detai_10
27. EMPLOYEE BENEFITS (Details 10) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||
Effect on present value of obligations | R$ 51213 | R$ 36627 |
Plan covering 35% of the average salary | Discount rate | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 0.50% | |
Effect on current service cost and on interest on actuarial obligations | R$ 409 | |
Effect on present value of obligations | R$ 13281 | |
Plan covering 35% of the average salary | Salary growth | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 0.50% | |
Plan covering 35% of the average salary | Mortality table | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 0.50% | |
Effect on current service cost and on interest on actuarial obligations | R$ 1439 | |
Effect on present value of obligations | R$ 14685 | |
Plan covering 35% of the average salary | Benefit adjustment | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 1.00% | |
Effect on current service cost and on interest on actuarial obligations | R$ 1052 | |
Effect on present value of obligations | R$ 10680 | |
Plan covering 35% of the average salary | Discount rate | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (0.50%) | |
Effect on current service cost and on interest on actuarial obligations | R$ 458 | |
Effect on present value of obligations | R$ 15342 | |
Plan covering 35% of the average salary | Salary growth | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (0.50%) | |
Plan covering 35% of the average salary | Mortality table | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (0.50%) | |
Effect on current service cost and on interest on actuarial obligations | R$ 1350 | |
Effect on present value of obligations | R$ 13778 | |
Plan covering 35% of the average salary | Benefit adjustment | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (1.00%) | |
Effect on current service cost and on interest on actuarial obligations | R$ 1054 | |
Effect on present value of obligations | R$ 10706 | |
Average salary supplementation plan | Discount rate | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 0.50% | |
Effect on current service cost and on interest on actuarial obligations | R$ 1650 | |
Effect on present value of obligations | R$ 70755 | |
Average salary supplementation plan | Salary growth | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 0.50% | |
Average salary supplementation plan | Mortality table | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 0.50% | |
Effect on current service cost and on interest on actuarial obligations | R$ 7578 | |
Effect on present value of obligations | R$ 79305 | |
Average salary supplementation plan | Benefit adjustment | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 1.00% | |
Effect on current service cost and on interest on actuarial obligations | R$ 4877 | |
Effect on present value of obligations | R$ 50807 | |
Average salary supplementation plan | Discount rate | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (0.50%) | |
Effect on current service cost and on interest on actuarial obligations | R$ 1897 | |
Effect on present value of obligations | R$ 76222 | |
Average salary supplementation plan | Salary growth | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (0.50%) | |
Average salary supplementation plan | Mortality table | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (0.50%) | |
Effect on current service cost and on interest on actuarial obligations | R$ 7079 | |
Effect on present value of obligations | R$ 74101 | |
Average salary supplementation plan | Benefit adjustment | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (1.00%) | |
Effect on current service cost and on interest on actuarial obligations | R$ 4845 | |
Effect on present value of obligations | R$ 50468 | |
Mixed supplementary benefit plan (Milenio Plan) | Discount rate | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 0.50% | |
Effect on current service cost and on interest on actuarial obligations | R$ 502 | |
Effect on present value of obligations | R$ 50666 | |
Mixed supplementary benefit plan (Milenio Plan) | Salary growth | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 0.50% | |
Effect on current service cost and on interest on actuarial obligations | R$ 252 | |
Effect on present value of obligations | R$ 2028 | |
Mixed supplementary benefit plan (Milenio Plan) | Mortality table | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 0.50% | |
Effect on current service cost and on interest on actuarial obligations | R$ 5720 | |
Effect on present value of obligations | R$ 57166 | |
Mixed supplementary benefit plan (Milenio Plan) | Benefit adjustment | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 1.00% | |
Effect on current service cost and on interest on actuarial obligations | R$ 1120 | |
Effect on present value of obligations | R$ 12179 | |
Mixed supplementary benefit plan (Milenio Plan) | Discount rate | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (0.50%) | |
Effect on current service cost and on interest on actuarial obligations | R$ 316 | |
Effect on present value of obligations | R$ 54396 | |
Mixed supplementary benefit plan (Milenio Plan) | Salary growth | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (0.50%) | |
Effect on current service cost and on interest on actuarial obligations | R$ 223 | |
Effect on present value of obligations | R$ 1792 | |
Mixed supplementary benefit plan (Milenio Plan) | Mortality table | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (0.50%) | |
Effect on current service cost and on interest on actuarial obligations | R$ 5232 | |
Effect on present value of obligations | R$ 52366 | |
Mixed supplementary benefit plan (Milenio Plan) | Benefit adjustment | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (1.00%) | |
Effect on current service cost and on interest on actuarial obligations | R$ 1128 | |
Effect on present value of obligations | R$ 12165 |
27. EMPLOYEE BENEFITS (Detai_11
27. EMPLOYEE BENEFITS (Details 11) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | R$ 2740285 |
Year 1 | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | 244,606 |
Year 2 | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | 252,778 |
Year 3 | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | 269,332 |
Year 4 | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | 265,261 |
Year 5 | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | 271,570 |
Next 5 years | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | R$ 1436738 |
27. EMPLOYEE BENEFITS (Detai_12
27. EMPLOYEE BENEFITS (Details 12) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of net defined benefit liability (asset) [line items] | |||
Present value of obligations | R$ 3087433 | R$ 3077849 | R$ 2872442 |
Actuarial liabilities | 905,119 | 908,721 | |
Post-employment healthcare benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Present value of obligations | 897,137 | 866,784 | |
Actuarial liabilities | R$ 897137 | R$ 866784 | R$ 691262 |
27. EMPLOYEE BENEFITS (Detai_13
27. EMPLOYEE BENEFITS (Details 13) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Actuarial liability at the beginning of the year | R$ 908721 | |
Actuarial liability at the end of the year | 905,119 | R$ 908721 |
Post-employment healthcare benefits | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Actuarial liability at the beginning of the year | 866,784 | 691,262 |
Expenses recognized in income for the year | 85,748 | 77,269 |
Sponsor's contributions transferred in prior year | (71,632) | (72,192) |
Recognition of actuarial loss/ (gain) | 16,237 | 170,445 |
Actuarial liability at the end of the year | R$ 897137 | R$ 866784 |
27. EMPLOYEE BENEFITS (Detai_14
27. EMPLOYEE BENEFITS (Details 14) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of defined benefit plans [line items] | |||
Actuarial gain (loss) on obligation | R$ 15224 | R$ 166540 | |
Gain (loss) recognized in shareholders' equity | (66,437) | 129,913 | |
Post-employment healthcare benefits | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial gain (loss) on obligation | 16,237 | 170,445 | R$ 210257 |
Gain (loss) recognized in shareholders' equity | R$ 16237 | R$ 170445 | R$ 210257 |
27. EMPLOYEE BENEFITS (Detai_15
27. EMPLOYEE BENEFITS (Details 15) - Post-employment healthcare benefits | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Male | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 19.55 | 19.55 |
Average life expectancy in years of employees who are 40 (in years) | 41.59 | 41.59 |
Female | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 22.17 | 22.17 |
Average life expectancy in years of employees who are 40 (in years) | 45.30 | 45.30 |
27. EMPLOYEE BENEFITS (Detai_16
27. EMPLOYEE BENEFITS (Details 16) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||
General mortality table | Millennium Plan: AT-2000 smoothed down by 10% segregated by gender. Plans 35%: AT-2000 Male aggravated by 15%. Supplementation: AT-2000 aggravated by 10% segregated by gender. | 35% and Average Salary Supplementation Plans : AT 2000 segregated by gender (10% smoothed) |
Disability mortality table | Winklevoss - 1% | Winklevoss - 1% |
Inflation | 4.75% | 5.00% |
Post-employment healthcare benefits | ||
Disclosure of defined benefit plans [line items] | ||
General mortality table | AT 2000 segregated by gender | AT 2000 segregated by gender |
Disability mortality table | Winklevoss with death probabilities reduced by 1% in all ages | Winklevoss with death probabilities reduced by 1% in all ages |
Actuarial nominal discount rate | 9.62% | 10.34% |
Inflation | 4.75% | 5.00% |
Real increase in medical costs based on age (Aging Factor) | 0.5% - 3.00%real a.a | 0.5% - 3.00%real a.a |
Nominal increase medical costs growth rate | 8.15% | 8.41% |
Average medical cost | 1054.65 | 1,001.69 |
27. EMPLOYEE BENEFITS (Detai_17
27. EMPLOYEE BENEFITS (Details 17) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||
Effect on present value of obligations | R$ 51213 | R$ 36627 |
Post-employment healthcare benefits | Discount rate | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 0.50% | |
Effect on current service cost and on interest on actuarial obligations | R$ 909 | |
Effect on present value of obligations | R$ 35530 | |
Post-employment healthcare benefits | Medical inflation | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 1.00% | |
Effect on current service cost and on interest on actuarial obligations | R$ 8091 | |
Effect on present value of obligations | R$ 84560 | |
Post-employment healthcare benefits | Mortality table | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | 1.00% | |
Effect on current service cost and on interest on actuarial obligations | R$ 2161 | |
Effect on present value of obligations | R$ 22582 | |
Post-employment healthcare benefits | Discount rate | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (0.50%) | |
Effect on current service cost and on interest on actuarial obligations | R$ 992 | |
Effect on present value of obligations | R$ 38727 | |
Post-employment healthcare benefits | Medical inflation | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (1.00%) | |
Effect on current service cost and on interest on actuarial obligations | R$ 6925 | |
Effect on present value of obligations | R$ 72369 | |
Post-employment healthcare benefits | Mortality table | ||
Disclosure of defined benefit plans [line items] | ||
Sensitivity level | (1.00%) | |
Effect on current service cost and on interest on actuarial obligations | R$ 2148 | |
Effect on present value of obligations | R$ 22451 |
27. EMPLOYEE BENEFITS (Detai_18
27. EMPLOYEE BENEFITS (Details 18) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | R$ 2740285 |
Post-employment healthcare benefits | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | 865,496 |
Post-employment healthcare benefits | Year 1 | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | 78,100 |
Post-employment healthcare benefits | Year 2 | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | 80,787 |
Post-employment healthcare benefits | Year 3 | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | 83,232 |
Post-employment healthcare benefits | Year 4 | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | 85,386 |
Post-employment healthcare benefits | Year 5 | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | 87,224 |
Post-employment healthcare benefits | Next 5 years | |
Disclosure of defined benefit plans [line items] | |
Benefit payments of the defined benefit plans | R$ 450767 |
27. EMPLOYEE BENEFITS (Detai_19
27. EMPLOYEE BENEFITS (Details Narrative) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018BRL (R$)Participants | Dec. 31, 2017BRL (R$)Participants | Dec. 31, 2016BRL (R$)Participants | |
Disclosure of defined benefit plans [line items] | |||
Total participants | 34,985 | 35,176 | 34,051 |
Pension plan expense | R$ | R$ 40199 | R$ 41544 | R$ 35798 |
Active contributors | |||
Disclosure of defined benefit plans [line items] | |||
Total participants | 20,872 | 20,734 | |
Retired employees | |||
Disclosure of defined benefit plans [line items] | |||
Total participants | 13,454 | 13,587 | |
Related beneficiaries | |||
Disclosure of defined benefit plans [line items] | |||
Total participants | 659 | 855 |
28. COMMITMENTS (Details)
28. COMMITMENTS (Details) R$ in Thousands | Dec. 31, 2018BRL (R$) |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | R$ 7132947 |
2017 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 1,582,099 |
2018 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 1,096,086 |
2019 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 1,493,517 |
2020 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 1,013,499 |
2021 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 849,905 |
After 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 3,776,026 |
Transportation of iron ore, coal, coke, steel products, cement and mining products | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 6,579,471 |
Transportation of iron ore, coal, coke, steel products, cement and mining products | 2017 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 957,373 |
Transportation of iron ore, coal, coke, steel products, cement and mining products | 2018 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 406,920 |
Transportation of iron ore, coal, coke, steel products, cement and mining products | 2019 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 1,024,674 |
Transportation of iron ore, coal, coke, steel products, cement and mining products | 2020 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 962,399 |
Transportation of iron ore, coal, coke, steel products, cement and mining products | 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 831,166 |
Transportation of iron ore, coal, coke, steel products, cement and mining products | After 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 3,761,232 |
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 503,000 |
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets | 2017 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 563,743 |
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets | 2018 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 658,166 |
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets | 2019 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 453,801 |
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets | 2020 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 40,780 |
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets | 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 8,419 |
Processing of furnace sludge and slag generated during pig iron and steel production | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 30,064 |
Processing of furnace sludge and slag generated during pig iron and steel production | 2017 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 8,880 |
Processing of furnace sludge and slag generated during pig iron and steel production | 2018 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 9,467 |
Processing of furnace sludge and slag generated during pig iron and steel production | 2019 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 7,074 |
Processing of furnace sludge and slag generated during pig iron and steel production | 2020 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 7,074 |
Processing of furnace sludge and slag generated during pig iron and steel production | 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 7,074 |
Processing of furnace sludge and slag generated during pig iron and steel production | After 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 8,842 |
Manufacturing, repair, recovery and production of ingot casting machine units | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 20,412 |
Manufacturing, repair, recovery and production of ingot casting machine units | 2017 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 52,103 |
Manufacturing, repair, recovery and production of ingot casting machine units | 2018 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 21,533 |
Manufacturing, repair, recovery and production of ingot casting machine units | 2019 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 7,968 |
Manufacturing, repair, recovery and production of ingot casting machine units | 2020 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 3,246 |
Manufacturing, repair, recovery and production of ingot casting machine units | 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | 3,246 |
Manufacturing, repair, recovery and production of ingot casting machine units | After 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Take-or-pay contracts | R$ 5952 |
28. COMMITMENTS (Details 1)
28. COMMITMENTS (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | R$ 4217333 |
2019 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | 176,196 |
2020 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | 177,593 |
2021 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | 179,055 |
After 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | R$ 3684489 |
FTL | |
Disclosure of detailed information about borrowings [line items] | |
Type of service | 30 - year concession granted on December 31,1997, renewable for another 30 years, to develop public service and operating the raiw ayrailway system in northeastern Brazil.The northeastern raiway system covers 4.238 Kilometers of railway network and operates in Maranhão, Piauí, Ceará, Paraíba, Pernambuco, Alagoas and Rio Grande do Norte. |
Minimum future payments related to government concessions | R$ 79083 |
FTL | 2019 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | 9,396 |
FTL | 2020 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | 9,396 |
FTL | 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | 9,396 |
FTL | After 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | R$ 50895 |
Tecar | |
Disclosure of detailed information about borrowings [line items] | |
Type of service | Concession to operate the TECAR a solid bulk terminal, one of the four terminals that make up the Port of Itaguai, located in Rio de Janeiro. The concession was renewed and the agreement expires in 2047. |
Minimum future payments related to government concessions | R$ 3857604 |
Tecar | 2019 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | 133,021 |
Tecar | 2020 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | 133,021 |
Tecar | 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | 133,021 |
Tecar | After 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | R$ 3458541 |
Tecon | |
Disclosure of detailed information about borrowings [line items] | |
Type of service | 25-year concession started in July 2001. On May 10, 2017, was approved the Decree nº 9,048, which changes de concession extension period for port operations. It was established that the requested extension period, added to the initial period, cannot exceed 70 years |
Minimum future payments related to government concessions | R$ 280646 |
Tecon | 2019 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | 33,779 |
Tecon | 2020 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | 35,176 |
Tecon | 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | 36,638 |
Tecon | After 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Minimum future payments related to government concessions | R$ 175053 |
30. ADDITIONAL INFORMATION TO_3
30. ADDITIONAL INFORMATION TO CASH FLOWS (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Additional Information To Cash Flows Details Abstract | |||
Income tax and social contribution paid | R$ 336962 | R$ 268847 | R$ 456227 |
Addition to PP&E with interest capitalization | 71,611 | 91,957 | 215,794 |
Acquisition of fixed assets through loans | 10,792 | 4,265 | 7,437 |
Non-monetary transaction with joint venture | 0 | 20,264 | |
Total additional information to cash flows | R$ 419365 | R$ 385333 | R$ 679458 |