Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information | |
Entity Registrant Name | BRASKEM SA |
Entity Central Index Key | 0001071438 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | No |
Is Entity Emerging Growth Company? | false |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 451,668,652 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2018 |
Entity Shell Company | false |
Statement of financial position
Statement of financial position - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | R$ 5547637 | R$ 3775093 |
Financial investments | 2,357,613 | 2,302,672 |
Trade accounts receivable | 3,075,218 | 3,281,196 |
Inventories | 8,486,577 | 6,640,049 |
Taxes recoverable | 847,088 | 982,629 |
Dividends and interest on capital | 890 | 10,859 |
Prepaid expenses | 239,500 | 134,337 |
Derivatives | 27,714 | 3,793 |
Other receivables | 451,578 | 288,391 |
Current assets | 21,033,815 | 17,419,019 |
Non-current assets | ||
Financial investments | 9,998 | 10,336 |
Trade accounts receivable | 17,785 | 37,496 |
Advances to suppliers | 31,394 | 46,464 |
Taxes recoverable | 1,574,579 | 987,236 |
Deferred income tax and social contribution | 1,104,158 | 1,165,726 |
Judicial deposits | 169,536 | 289,737 |
Insurance claims | 63,054 | 39,802 |
Derivatives | 46,664 | 32,666 |
Other receivables | 189,724 | 112,997 |
Investments | 65,954 | 101,258 |
Property, plant and equipment | 31,759,890 | 29,761,610 |
Intangible assets | 2,740,982 | 2,727,497 |
Non-current assets | 37,773,718 | 35,312,825 |
Total assets | 58,807,533 | 52,731,844 |
Current liabilities | ||
Trade payables | 8,341,252 | 5,058,796 |
Borrowings | 737,436 | 1,184,781 |
Braskem Idesa borrowings | 10,504,592 | 9,691,450 |
Debenture | 27,732 | 27,183 |
Derivatives | 70,305 | 6,875 |
Payroll and related charges | 645,396 | 630,517 |
Taxes payable | 501,273 | 894,769 |
Dividends | 672,395 | 3,850 |
Advances from customers | 153,264 | 353,222 |
Leniency agreement | 288,123 | 257,347 |
Sundry provisions | 191,536 | 178,676 |
Other payables | 632,774 | 276,957 |
Current liabilities | 22,766,078 | 18,564,423 |
Non-current liabilities | ||
Trade payables | 37,252 | 0 |
Borrowings | 24,160,720 | 22,176,640 |
Debenture | 266,777 | 286,141 |
Derivative | 161,694 | 0 |
Taxes payable | 85,904 | 52,802 |
Loan to non-controlling shareholders of Braskem Idesa | 2,183,830 | 1,756,600 |
Deferred income tax and social contribution | 381,582 | 1,005,493 |
Post-employment benefits | 206,373 | 193,775 |
Contingencies | 965,317 | 1,092,645 |
Leniency agreement | 1,554,395 | 1,747,243 |
Sundry provisions | 233,006 | 234,996 |
Other payables | 149,935 | 148,286 |
Non-current liabilities | 30,386,785 | 28,694,621 |
Shareholders' equity | ||
Capital | 8,043,222 | 8,043,222 |
Capital reserve | 232,430 | 232,430 |
Revenue reserves | 4,673,220 | 3,945,898 |
Additional paid in capital | (488,388) | (488,388) |
Other comprehensive income | (5,623,020) | (5,165,492) |
Treasury shares | (49,819) | (49,819) |
Accumulated losses | (256,575) | (217,550) |
Total attributable to the Company's shareholders | 6,531,070 | 6,300,301 |
Non-controlling interest in subsidiaries | (876,400) | (827,501) |
Shareholders' equity | 5,654,670 | 5,472,800 |
Total liabilities and shareholders' equity | R$ 58807533 | R$ 52731844 |
Statement of profit or loss
Statement of profit or loss - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Income Statements, Captions [Line Items] | |||
Net revenue | R$ 57999866 | R$ 49260594 | R$ 47663988 |
Cost of products sold | (46,431,220) | (36,177,408) | (34,985,569) |
Gross profit | 11,568,646 | 13,083,186 | 12,678,419 |
Income (expenses) | |||
Selling and distribution | (1,545,568) | (1,459,608) | (1,403,673) |
General and administrative | (1,633,003) | (1,434,272) | (1,285,613) |
Research and development | (199,821) | (167,456) | (162,010) |
Results from equity investments | (888) | 39,956 | 30,078 |
Other income (expenses), net | 90,852 | (854,880) | (3,905,954) |
Operating profit | 8,280,218 | 9,206,926 | 5,951,247 |
Financial results | |||
Financial expenses | (3,007,551) | (3,747,217) | (3,570,962) |
Financial income | 589,052 | 603,630 | 690,122 |
Exchange rate variations, net | (2,256,983) | (798,762) | (3,210,417) |
Finance income (cost) | (4,675,482) | (3,942,349) | (6,091,257) |
Profit (loss) before income tax and social contribution | 3,604,736 | 5,264,577 | (140,010) |
Current and deferred income tax and social contribution | (736,551) | (1,357,682) | (616,046) |
Profit (loss) for the year of continued operations | 2,868,185 | 3,906,895 | (756,056) |
Discontinued operations results | |||
Profit from discontinued operations before income tax and social contribution | 0 | 13,499 | 40,760 |
Current and deferred income tax and social contribution | 0 | (4,623) | (13,901) |
Profit from discontinued operations | 0 | 8,876 | 26,859 |
Profit (loss) for the year | 2,868,185 | 3,915,771 | (729,197) |
Attributable to: Company's shareholders | 2,827,650 | 3,865,440 | (411,472) |
Attributable to: non-controlling interest in subsidiaries | 40,535 | 50,331 | (317,725) |
Profit (loss) for the year | R$ 2868185 | R$ 3915771 | R$ 729197 |
Profit (loss) per share attributable to the shareholders of the Company of continued operations at the end of the year | R$ 3.5543 | R$ 4.8479 | R$ 0.5511 |
Profit per share attributable to the shareholders of the Company of discontinued operations at the end of the year | .0112 | 0.0338 | |
Profit (loss) per share attributable to the shareholders of the Company at the end of the year | 3.5543 | 4.8590 | (0.5173) |
Class A preferred shares | |||
Discontinued operations results | |||
Profit (loss) per share attributable to the shareholders of the Company of continued operations at the end of the year | 3.5543 | 4.8479 | (0.5511) |
Profit per share attributable to the shareholders of the Company of discontinued operations at the end of the year | .0112 | 0.0338 | |
Profit (loss) per share attributable to the shareholders of the Company at the end of the year | 3.5543 | 4.8590 | (0.5173) |
Class B preferred shares | |||
Discontinued operations results | |||
Profit (loss) per share attributable to the shareholders of the Company of continued operations at the end of the year | 0.591 | 0.6069 | |
Profit per share attributable to the shareholders of the Company of discontinued operations at the end of the year | |||
Profit (loss) per share attributable to the shareholders of the Company at the end of the year | R$ 0.5910 | R$ .6069 |
Statement of comprehensive inco
Statement 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$ 2868185 | R$ 3915771 | R$ 729197 |
Items that will be reclassified subsequently to profit or loss | |||
Fair value of cash flow hedge | (151,718) | 605,204 | 215,510 |
Income tax and social contribution | 54,481 | (203,186) | (75,333) |
Fair value of cash flow hedge from jointly-controlled | (2,329) | 3,534 | (3,309) |
Cash flow hedges,net of tax | (99,566) | 405,552 | 136,868 |
Exchange variation of foreign sales hedge | (3,145,857) | (397,045) | 4,121,849 |
Sales Hedge - transfer to profit or loss | 1,022,782 | 1,022,830 | 1,297,910 |
Income tax and social contribution on exchange variation | 721,845 | (212,767) | (1,842,718) |
Exchange variation of foreign sales hedge - Braskem Idesa | 16,681 | 472,717 | (1,995,065) |
Sales Hedge - transfer to profit or loss - Braskem Idesa | 236,570 | 163,696 | 59,834 |
Income tax on exchange variation - Braskem Idesa | (75,975) | (190,924) | 581,304 |
Sales hedges,net of tax | (1,223,954) | 858,507 | 2,223,114 |
Foreign subsidiaries currency translation adjustment | 801,223 | (602) | 339,296 |
Total | (522,297) | 1,263,457 | 2,699,278 |
Items that will not be reclassified to profit or loss | |||
Defined benefit plan actuarial (loss) gain | (1,289) | (5,750) | (4,119) |
Post-employment plans - Health plan, net of taxes | (280) | (2,904) | 0 |
Long term incentive plan, net of taxes | 6,406 | 0 | 0 |
Loss on investments | (65) | 0 | 0 |
Total | 4,772 | (8,654) | (4,119) |
Total comprehensive income for the year | 2,350,660 | 5,170,574 | 1,965,962 |
Attributable to: Company's shareholders | 2,398,250 | 5,049,617 | 2,355,580 |
Attributable to: Non-controlling interest in Braskem Idesa | (47,590) | 120,957 | (389,618) |
Total comprehensive income for the year | R$ 2350660 | R$ 5170574 | R$ 1965962 |
Statement of changes in equity
Statement of changes in equity - BRL (R$) R$ in Thousands | Capital | Capital reserve | Legal reserve | Tax incentive | Retention of profits | Additional dividends proposed | Additional paid in capital | Other comprehensive income | Treasury shares | Accumulated losses | Total Braskem shareholders' interest | Non-controlling interest in subsidiaries | Total |
Beginning balance at Dec. 31, 2015 | R$ 8043222 | R$ 232430 | R$ 229992 | R$ 0 | R$ 2404663 | R$ 247364 | R$ 0 | R$ 9060710 | R$ 49819 | R$ 416768 | R$ 1630374 | R$ 684885 | R$ 945489 |
Comprehensive income for the year: | |||||||||||||
Profit (loss) for the year | (411,472) | (411,472) | (317,725) | (729,197) | |||||||||
Exchange variation of foreign sales hedge, net of taxes | 2,561,596 | 2,561,596 | (338,482) | 2,223,114 | |||||||||
Fair value of cash flow hedge, net of taxes | 145,878 | 145,878 | (9,010) | 136,868 | |||||||||
Foreign subsidiaries currency translation adjustment | 63,697 | 63,697 | 275,599 | 339,296 | |||||||||
Comprehensive income (loss) for the year | 2,771,171 | (411,472) | 2,359,699 | (389,618) | 1,970,081 | ||||||||
Equity valuation adjustments: | |||||||||||||
Realization of additional property, plant and equipment price-level restatement, net of taxes | (27,236) | 27,236 | 0 | 0 | 0 | ||||||||
Realization of deemed cost of jointly-controlled investment, net of taxes | (965) | 965 | 0 | 0 | 0 | ||||||||
Actuarial gains post-employment benefits of subsidiaries , net of taxes | (4,119) | (4,119) | 0 | (4,119) | |||||||||
Post-employment plans - Health plan, net of taxes | 0 | ||||||||||||
Equity valuation adjustments | (32,320) | 28,201 | (4,119) | 0 | (4,119) | ||||||||
Contributions and distributions to shareholders: | |||||||||||||
Absorption of losses and adjustments | (800,039) | 800,039 | 0 | 0 | 0 | ||||||||
Capital increase | 0 | 56,623 | 56,623 | ||||||||||
Additional dividends approved by the General Meeting | (247,364) | (247,364) | 0 | (247,364) | |||||||||
Interim dividends approved by Board of Directors | (1,000,000) | (1,000,000) | 0 | (1,000,000) | |||||||||
Contributions and distributions to shareholders | (1,800,039) | (247,364) | 800,039 | (1,247,364) | 56,623 | (1,190,741) | |||||||
Ending balance at Dec. 31, 2016 | 8,043,222 | 232,430 | 229,992 | 0 | 604,624 | 0 | 0 | (6,321,859) | (49,819) | 0 | 2,738,590 | (1,017,880) | 1,720,710 |
Comprehensive income for the year: | |||||||||||||
Profit (loss) for the year | 3,865,440 | 3,865,440 | 50,331 | 3,915,771 | |||||||||
Exchange variation of foreign sales hedge, net of taxes | 747,135 | 747,135 | 111,372 | 858,507 | |||||||||
Fair value of cash flow hedge, net of taxes | 394,251 | 394,251 | 11,301 | 405,552 | |||||||||
Foreign subsidiaries currency translation adjustment | 51,445 | 51,445 | (52,047) | (602) | |||||||||
Comprehensive income (loss) for the year | 1,192,831 | 3,865,440 | 5,058,271 | 120,957 | 5,179,228 | ||||||||
Equity valuation adjustments: | |||||||||||||
Realization of additional property, plant and equipment price-level restatement, net of taxes | (26,847) | 26,847 | 0 | 0 | 0 | ||||||||
Realization of deemed cost of jointly-controlled investment, net of taxes | (963) | 963 | 0 | 0 | 0 | ||||||||
Actuarial gains post-employment benefits of subsidiaries , net of taxes | (5,750) | (5,750) | 0 | (5,750) | |||||||||
Post-employment plans - Health plan, net of taxes | (2,904) | (2,904) | 0 | (2,904) | |||||||||
Equity valuation adjustments | (36,464) | 27,810 | (8,654) | 0 | (8,654) | ||||||||
Contributions and distributions to shareholders: | |||||||||||||
Lapsed dividends | 482 | 482 | 0 | 482 | |||||||||
Tax incentive reserve | 71,745 | (71,745) | 0 | 0 | 0 | ||||||||
Prepaid dividends | (1,000,000) | (1,000,000) | 0 | (1,000,000) | |||||||||
Legal reserve | 204,150 | (204,150) | 0 | 0 | 0 | ||||||||
Additional dividends proposed | 1,500,000 | (1,500,000) | 0 | 0 | 0 | ||||||||
Retained earnings | 1,335,387 | (1,335,387) | 0 | 0 | 0 | ||||||||
Goodwill on the acquisition of a subsidiary under common control | (488,388) | (488,388) | 0 | (488,388) | |||||||||
Non-controlling interest in subsidiaries | 69,422 | 69,422 | |||||||||||
Contributions and distributions to shareholders | 204,150 | 71,745 | 1,335,387 | 1,500,000 | (488,388) | (4,110,800) | (1,487,906) | 69,422 | (1,418,484) | ||||
Ending balance at Dec. 31, 2017 | 8,043,222 | 232,430 | 434,142 | 71,745 | 1,940,011 | 1,500,000 | (488,388) | (5,165,492) | (49,819) | (217,550) | 6,300,301 | (827,501) | 5,472,800 |
Comprehensive income for the year: | |||||||||||||
Profit (loss) for the year | 2,827,650 | 2,827,650 | 40,535 | 2,868,185 | |||||||||
Exchange variation of foreign sales hedge, net of taxes | (1,268,273) | (1,268,273) | 44,319 | (1,223,954) | |||||||||
Fair value of cash flow hedge, net of taxes | (112,241) | (112,241) | 12,675 | (99,566) | |||||||||
Foreign subsidiaries currency translation adjustment | 946,342 | 946,342 | (145,119) | 801,223 | |||||||||
Comprehensive income (loss) for the year | (434,172) | 2,827,650 | 2,393,478 | (47,590) | 2,345,888 | ||||||||
Equity valuation adjustments: | |||||||||||||
Realization of additional property, plant and equipment price-level restatement, net of taxes | (26,717) | 26,717 | 0 | 0 | 0 | ||||||||
Realization of deemed cost of jointly-controlled investment, net of taxes | (962) | 962 | 0 | 0 | 0 | ||||||||
Actuarial gains post-employment benefits of subsidiaries , net of taxes | (1,289) | (1,289) | 0 | (1,289) | |||||||||
Post-employment plans - Health plan, net of taxes | (280) | (280) | (280) | ||||||||||
Long term incentive plan, net of taxes | 6,406 | 6,406 | 133 | 6,539 | |||||||||
Fair value adjustments of trade accounts receivable | (449) | (449) | 0 | (449) | |||||||||
Equity valuation adjustments | (23,291) | 27,679 | 4,388 | 133 | 4,521 | ||||||||
Contributions and distributions to shareholders: | |||||||||||||
Prescribed dividends | 460 | 460 | 0 | 460 | |||||||||
Additional dividends approved in the board meeting | (1,500,000) | (73) | (1,500,073) | (1,396) | (1,501,469) | ||||||||
Reversal of fiscal incentive | (130) | 130 | 0 | 0 | 0 | ||||||||
Tax incentive reserve | 81,863 | (81,863) | 0 | 0 | 0 | ||||||||
Legal reserve | 143,334 | (143,334) | 0 | 0 | 0 | ||||||||
Mandatory minimum dividends | (667,419) | (667,419) | 0 | (667,419) | |||||||||
Additional dividends proposed | 2,002,255 | (2,002,255) | 0 | 0 | 0 | ||||||||
Loss on investments | (65) | (65) | 65 | 0 | |||||||||
Sale of investments | 0 | (111) | (111) | ||||||||||
Contributions and distributions to shareholders | 143,334 | 81,733 | 502,255 | (65) | (2,894,354) | (2,167,097) | (1,442) | (2,168,539) | |||||
Ending balance at Dec. 31, 2018 | R$ 8043222 | R$ 232430 | R$ 577476 | R$ 153478 | R$ 1940011 | R$ 2002255 | R$ 488388 | R$ 5623020 | R$ 49819 | R$ 256575 | R$ 6531070 | R$ 876400 | R$ 5654670 |
Statement of cash flows
Statement 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) before income tax and social contribution and for the result with discontinued operations | R$ 3604736 | R$ 5264577 | R$ 99250 |
Adjustments for reconciliation of profit | |||
Depreciation, amortization and depletion | 2,990,577 | 2,928,855 | 2,683,100 |
Results from equity investments | 888 | (39,956) | (30,078) |
Interest and monetary and exchange variations, net | 6,013,944 | 3,697,714 | 3,026,008 |
Gain from divestment in subsidiary | 0 | (276,816) | 0 |
Leniency agreement | 0 | 375,476 | 2,853,230 |
Reversal of provisions | 23,725 | (223,340) | 0 |
PIS and COFINS credits - exclusion of ICMS from the calculation basis | (519,830) | 0 | 0 |
Provision for losses and write-offs of long-lived assets | 72,470 | 213,184 | 41,016 |
Adjustments for reconciliation of profit | 12,186,510 | 11,939,694 | 8,474,026 |
Changes in operating working capital | |||
Financial investments | 98,349 | (953,228) | (649,535) |
Trade accounts receivable | 130,113 | (1,598,392) | 1,007,875 |
Inventories | (1,537,290) | (1,351,028) | 862,338 |
Taxes recoverable | 1,022,242 | 469,293 | 1,058,104 |
Prepaid expenses | (105,163) | (30,521) | 64,029 |
Other receivables | (242,691) | 25,802 | 353,981 |
Trade payables | 1,343,375 | (1,642,649) | (4,254,575) |
Taxes payable | (977,248) | (215,514) | (292,131) |
Advances from customers | (199,958) | (13,512) | 216,850 |
Leniency agreement | (330,006) | (1,343,803) | 0 |
Sundry provisions | (116,458) | 194,596 | 558,231 |
Other payables | 833,227 | 55,541 | 38,464 |
Cash from operations | 12,105,002 | 5,536,279 | 7,437,657 |
Interest paid | (1,916,801) | (2,154,053) | (1,826,942) |
Income tax and social contribution paid | (937,831) | (920,606) | (1,152,847) |
Net cash generated by operating activities | 9,250,370 | 2,461,620 | 4,457,868 |
Proceeds from the sale of fixed assets | 95,133 | 39,660 | 564 |
Proceeds from the sale of investments | 81,000 | 450,000 | 0 |
Funds received in the investments' capital reduction | 2,254 | 0 | 0 |
Dividends received | 41,791 | 0 | 0 |
Additions to investments in subsidiaries | 0 | (608,181) | 0 |
Acquisitions to property, plant and equipment and intangible assets | (2,706,328) | (2,273,197) | (2,586,511) |
Premium in the dollar put option | (2,167) | (14,683) | (4,856) |
Held-for-maturity financial investments | 0 | 0 | 38,353 |
Net cash used in investing activities | (2,488,317) | (2,406,401) | (2,552,450) |
Short-term and Long-term debt | |||
Acquired | 4,301,626 | 8,492,341 | 4,107,626 |
Payments | (6,592,197) | (8,779,091) | (4,901,593) |
Derivative transactions | |||
Payments | 0 | (810,279) | 0 |
Braskem Idesa borrowings | |||
Acquired | 0 | 187,959 | 503,921 |
Payments | (812,929) | (1,080,502) | (469,282) |
Dividends paid | (1,499,900) | (998,893) | (1,997,984) |
Net cash used in financing activities | (4,603,400) | (2,988,465) | (2,757,312) |
Exchange variation on cash of foreign subsidiaries | (386,109) | 6,475 | 586,642 |
Increase (decrease) in cash and cash equivalents | 1,772,544 | (2,926,771) | (265,252) |
Cash and cash equivalents at the beginning of the year | 3,775,093 | 6,701,864 | 7,043,262 |
Cash and cash equivalents at the end of the year | 5,547,637 | 3,775,093 | 6,701,864 |
Increase (decrease) in cash and cash equivalents | R$ 1772544 | R$ 2926771 | R$ 265252 |
Operations
Operations | 12 Months Ended |
Dec. 31, 2018 | |
Operations | |
Operations | Braskem S.A. is a public corporation headquartered in Camaçari, Bahia (“BA”), which jointly with its subsidiaries (hereinafter “Braskem” or “Company”), is controlled by Odebrecht S.A. (“Odebrecht”), which directly and indirectly holds interests of 50.11% and 38.32% in its voting and total capital, respectively. The Company operates in industrial units in Brazil, the United States, Germany and Mexico. These units produce thermoplastic resins – polyethylene (“PE”), polypropylene (“PP”) and polyvinyl chloride (“PVC”), as well as basic petrochemicals. Braskem is also engaged in the manufacture, trading, import and export of chemicals, petrochemicals and fuels, the production, supply and sale of utilities such as steam, water, compressed air, industrial gases, as well as the provision of industrial services and the production, supply and sale of electric energy for its own use and use by other companies. Braskem also invests in other companies, either as equity method investees or associates. (a) Significant corporate and operating events impacting these financial statements In April 2018, the Company received the amount of R$81,000, adjusted by inflation, related to the outstanding balance of the R$100 million provided for in the sale made, in 2017, of the subsidiaries Quantiq Distribuidora Ltda and IQAG Armazéns Gerais Ltda. The difference between the expected amount and the received amount was recognized in the second quarter of 2018 in the line “Other income (expenses), net,” in the amount of R$19,558, resulted from an adjustment provided in the agreement. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies | |
Summary of significant accounting policies | Except for the changes that occurred with the adoption of the new standards (Note 2.3), accounting practices were applied consistently in the preparation of these financial statements and are described in the respective notes. 2.1 Basis of preparation and presentation of the financial statements The financial statements have been prepared under the historical cost convention and were adjusted, when required, to reflect the fair value of assets and liabilities. The consolidated financial statements presented in this 20-F are not equivalent to the statutory financial statements of the Company as issued under the requirements of the Brazilian jurisdiction. The date of authorization for issue of these consolidated financial statements is different from the date when the consolidated financial statements were issued in Brazil, there are differences due to adjusting and non adjusting events after the reporting period, under IAS 10 – Events after the Reporting Period. The statutory financial statements (parent company and consolidated) for the year ended December 31, 2018 were authorized for issue on March 11, 2019, in accordance with the accounting practices adopted in Brazil and the International Financial Reporting Standards (“IFRS”), filed with the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – “CVM”) on March 13, 2019. The preparation of financial statements requires the use of certain estimates. It also requires Management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3. Issue of these financial statements was authorized by the Executive Board on October 17, 2019. 2.1.1 Consolidated financial statements The consolidated financial statements were prepared and presented in accordance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). (a) Consolidation The consolidated financial statements comprise the financial statements of the Braskem S.A. and the following entities: Total and voting interest - % Headquarters 2018 2017 2016 Direct and Indirect subsidiaries Alclor Química de Alagoas Ltda ("Alclor") (i) Brazil 100.00 BM Insurance Company Limited ("BM Insurance") (ii) Bermuda 100.00 Braskem America Finance Company ("Braskem America Finance") EUA 100.00 100.00 100.00 Braskem America, Inc. (“Braskem America”) EUA 100.00 100.00 100.00 Braskem Argentina S.A. (“Braskem Argentina”) Argentina 100.00 100.00 100.00 Braskem Austria Finance GmbH ("Braskem Austria Finance") (iii) Austria 100.00 Braskem International GmbH ("Braskem Austria") (iv) Austria 100.00 100.00 Braskem Europe GmbH ("Braskem Alemanha") Germany 100.00 100.00 100.00 Braskem Finance Limited (“Braskem Finance”) Cayman Islands 100.00 100.00 100.00 Braskem Idesa S.A.P.I. ("Braskem Idesa") Mexico 75.00 75.00 75.00 Braskem Idesa Servicios S.A. de CV ("Braskem Idesa Serviços") Mexico 75.00 75.00 75.00 Braskem Incorporated Limited ("Braskem Inc") Cayman Islands 100.00 100.00 100.00 Braskem Mexico Proyectos S.A. de C.V. SOFOM ("Braskem México Sofom") Mexico 100.00 100.00 100.00 Braskem Mexico, S. de RL de CV ("Braskem México") Mexico 100.00 100.00 100.00 Braskem Mexico Servicios S. RL de CV ("Braskem México Serviços") Mexico 100.00 100.00 100.00 Braskem Netherlands B.V. ("Braskem Holanda") Netherlands 100.00 100.00 100.00 Braskem Netherlands Finance B.V. (“Braskem Holanda Finance”) Netherlands 100.00 100.00 100.00 Braskem Netherlands Inc. B.V. (“Braskem Holanda Inc”) Netherlands 100.00 100.00 100.00 Braskem Petroquímica Chile Ltda. (“Braskem Chile”) Chile 100.00 100.00 100.00 Braskem Petroquímica Ltda. ("Braskem Petroquímica") (v) Brazil 100.00 Cetrel S.A. ("Cetrel") Brazil 63.66 63.66 Distribuidora de Água Camaçari S.A. ("DAC") Brazil 63.66 63.66 Lantana Trading Co. Inc. (“Lantana”) Bahamas 100.00 100.00 100.00 Special Purpose Entity ("SPE") Fundo de Investimento Caixa Júpiter Multimercado Crédito Privado Longo Prazo ("FIM Júpiter") Brazil 100.00 100.00 100.00 Fundo de Investimento Multimercado Crédito Privado Sol (“FIM Sol”) (vi) Brazil 100.00 Fundo de Investimento Santander Netuno Multimercado Crédito Privado Longo Prazo ("FIM Netuno") (vii) Brazil 100.00 (ii) Created in October 2018. (iii) Terminated in January 2016. (iv) Terminated in June 2018. (v) Merged into the Braskem in December 2017. (vi) Contract terminated in 2016. (vii) Multi-asset fund created in December 2018. 2.2 Functional and foreign currency (a) Functional and presentation currency The functional currency of the Company is the real. The presentation currency is also real. (b) Functional currency other than the Brazilian real Certain subsidiaries have a different functional currency from that of the Braskem S.A., as follows: Functional currency Subsidiaries Braskem Alemanha Euro BM Insurance, Braskem America, Braskem America Finance, Braskem Holanda, Braskem Holanda Finance, Braskem Holanda Inc. and Braskem México Sofom U.S.dollar Braskem Idesa , Braskem Idesa Serviços, Braskem México and Braskem México Serviços Mexican peso The other subsidiaries adopt the Brazilian real as functional currency. (c) Exchange variation effects The effects from exchange variation on the Company’s transactions are mainly due to the variation in the rates of the following currencies: End of period rate at December 31 Average rate Variation 2018 2017 Variation 2018 2017 2016 2018 - 2017 2017 - 2016 U.S. dollar - Brazilizan real 3.8748 3.3080 17.13% 3.6558 3.1925 3.4833 14.51% -8.35% Euro - Brazilian real 4.4390 3.9693 11.83% 4.3094 3.6089 3.8543 19.41% -6.37% Mexican peso - Brazilian real 0.1972 0.1681 17.31% 0.1901 0.1694 0.1871 12.24% -9.50% U.S. dollar - Mexican peso 19.6655 19.6890 -0.12% 19.2363 18.9142 18.6987 1.70% 1.15% U.S. dollar - Euro 0.8729 0.8464 3.13% 0.8471 0.8871 0.9041 -4.50% -1.89% 2.3 Changes in accounting policies The Company adopted IFRS 15 – Revenue from Contracts with Customers” and “IFRS 9 – Financial Instruments” as of January 1, 2018. Due to the transition methods chosen by the Company to apply these accounting standards, the comparative information throughout these financial statements has not been restated to reflect the requirements of the new standards. The effects from the adoption of these standards are mainly due to the following: · Change in the impairment calculation methodology in accordance with IFRS 9 (Note 7); · Presentation of the variable considerations (bonuses) deducted directly from gross revenue (Note 27); · Change in the classification and measurement of financial assets (Note 2.3(a.2.i)); · Change in the accounting of operations involving dollar put and call options designated for hedge accounting (Note 19.3.1(a.i)). (a.1) IFRS 15 – Revenue from Contracts with Customers IFRS 15 introduces a comprehensive framework to determine if and when revenue must be recognized, and by how much the revenue is measured. IFRS 15 replaces the standards IAS 18 – Revenue. The Company adopted IFRS 15 using the cumulative effect method, with initial application of the standard on the initial date (i.e., January 1, 2018). As a result, the Company did not apply the requirements of IFRS 15 to the comparative period reported (2017). The Company did not incur significant changes at the time or when measuring its sales revenue for the performance obligations identified, which are: · Delivery of goods sold – the performance obligation ends when the ownership of the good is transferred to the client. For the Company, there was no difference between IAS 18 – Revenue and IFRS 15 upon recognition of the revenue associated with this performance obligation. · Contracting freight to deliver goods – the performance obligation of the Company to contract freight to deliver the goods sold ends when the service is completed. The Company did not change the time of recognition, and continue to recognize at the time of the delivery of goods sold. The Company consider immaterial on its profit and loss any change in the time of recognition the performance obligation associated with freight. The Company adopts the practice of contracting with certain clients bonuses for achieving sales targets. For clients which the Company expects will meet such targets and accordingly will receive a bonus are accrued the amounts due on a monthly basis. This provision, which until December 31, 2017 was recognized as a deduction from sales revenue, is presented, as of January 1, 2018, as a deduction from gross revenue. The Company considers commercial discounts included on client invoices as part of the fair value of the revenue recognized, according to that established by the accounting standard (IAS 18) applicable until December 31, 2017. Therefore, the commercial discounts included on client invoices did not result in any changes as a result of adoption or measurement of its accounting recognition in accordance with IFRS 15. (a.2) IFRS 9 – Financial Instruments IFRS 9 – Financial Instruments establishes requirements for recognition and measurement of financial assets, liabilities and some contracts to buy or sell non-financial items. This standard replaces IAS 39 – Financial Instruments: Recognition and Measurement. (a.2.i) Classification – Financial Assets IFRS 9 has a new approach for the classification and measurement of financial assets that reflects the business model in which assets are managed and its cash flow characteristics. IFRS 9 has three main classification categories for financial assets: measured at amortized cost (“AC”), at fair value through other comprehensive income (“FVTOCI”) and at fair value through profit and loss (“FVTPL”). The standard eliminates IAS 39 classifications of held-to-maturity, loans and receivables and available-for-sale. IFRS 9 requires the classification of financial assets based on the business model of the entity for managing their financial assets. Pursuant to IFRS 9, embedded derivatives in contracts where the host is a financial asset under the standard’s scope are never separated. Instead, the hybrid financial instrument is assessed in its entirety for classification. Based on its assessment, the Company did not have a relevant impact on the accounting of its financial investments resulting from new requirements of IFRS9. However, because some trade accounts receivables are sold to financial institutions and derecognized before the maturity date (Note 7), the Company classified part of its trade accounts receivables that could be sold at fair value under FVTOCI. The effect of this new classification on January 1, 2018 was R$601. The following table and corresponding notes explain the original measurement categories, in accordance with IAS 39 and the new categories of measurement in accordance with IFRS 9, for each class of financial asset on January 1, 2018. The effect from the adoption of IFRS 9 on the accounting balance of financial assets as of January 1, 2018 is related to the following: (i) New impairment calculation methodology (ii) Calculation of the fair value for receivables that, in accordance with the Company’s Business Model, may be sold before their maturities. Classification by category Book value IAS 39 IFRS 9 IAS 39 IFRS 9 Cash and cash equivalents Cash and banks Loans and receivables Amortized cost 1,428,766 1,428,766 Financial investments in Brazil Loans and receivables Fair value through profit or loss 1,706,784 1,706,784 Financial investments abroad Held-for-trading Fair value through profit or loss 639,543 639,543 3,775,093 3,775,093 Financial investments LFT's and LF's Held-for-trading Fair value through profit or loss 1,816,889 1,816,889 Time deposit investments Loans and receivables Amortized cost 440,616 440,616 Time deposit investments Held-for-trading Fair value through profit or loss 15,764 15,764 Other Held-for-trading Fair value through profit or loss 39,739 39,739 2,313,008 2,313,008 Trade accounts receivable Loans and receivables Amortized cost 3,244,851 3,235,463 Trade accounts receivable Loans and receivables Fair value through other comprehensive income 73,841 73,240 Derivatives Financial assets measured at fair value Fair value through profit or loss 74,378 74,378 (a.2.ii) Impairment – Financial and Contractual Assets IFRS 9 replaced the “incurred loss” model from IAS 39 for a prospective model of "expected credit losses." This requires a relevant judgment regarding the way in which changes in economic factors affect the expected credit losses, which are determined based on weighted probabilities. The new expected losses model will apply to financial assets measured at AC or FVTPL, excluding investments in equity instruments and contractual assets. According to IFRS 9, provisions for expected losses are measured using one of the following bases: · The 12-month expected credit losses, i.e. expected credit losses from possible default events within 12 months after the reporting date, and whose credit risk does not increase significantly since initial recognition; and · The full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument). The measurement of these credit losses applies when the credit risk of a financial asset at the reporting date has increased significantly since initial recognition. The Company’s assessment indicated that the adoption of the expected credit loss model as required by IFRS 9 on January 1, 2018 resulted in an incremental amount of R$9,388, net of taxes. The judgments of how changes in economic factors affect the expected credit losses of the Company are determined by stages that can be observed in Note 7. (a.2.iii) Hedge Accounting IFRS 9 requires that the Company ensure that hedge accounting relationships are aligned with the Company’s risk management objectives and strategies, and that a more qualitative and prospective approach is applied to assess hedge effectiveness. IFRS 9 also introduces new requirements for rebalancing hedge relations and prohibits the voluntary discontinuation of hedge accounting. Upon adopting IFRS 9, the Company elected to account for changes to fair value of forward points separately, as hedge cost. Thus, as of January 1, 2018, these changes are recognized in other comprehensive income (loss) and accrued in a hedge cost reserve as a separate component in equity and subsequently accounted for in the same way as the cumulative gains or losses in the cash flow hedge reserve. The types of hedge accounting relations presently designated by the Company meet the IFRS 9 requirements and are aligned with the organization's risk management objective and strategy. (a.2.iv) Transition The changes to accounting policies stemming from the adoption of IFRS 9 were applied prospectively, including: (i) Allowed exemption to not restate comparative information from prior periods due to changes in classification and measurement financial instruments, including expected credit losses. (ii) New requirements for hedge accounting. (iii) The following assessments were made based on facts and circumstances in place on the adoption date: · Determination of business model in which the financial asset is held. · Designation and revoking of prior designations of specific financial assets and liabilities measured at FVTPL. 2.4 New or revised pronouncements that are not yet effective (a) IFRS 16 – Leases This pronouncement replaces the previous standards on leases, including IAS 17 – Leases and the corresponding interpretations, such as IFRIC 4 / SIC 15 and SIC 27. The standard introduces a single and standardized model for the accounting of leases in the balance sheet of the lessees, in which it recognizes a right-of-use asset representing the right to use the leased asset and a lease liability that represents the obligation to pay the lease are recognized. Exemptions from recognition will be allowed for low-value and short-term contracts. In addition, the expenses related to these leases are no longer linear operating lease expense, going in accordance with IFRS 16 to be a cost of depreciation of use rights assets and interest expense on lease obligations. The definition of leasing includes all contracts that entitle the use and control of an identifiable asset, including lease contracts and, potentially, some components of service agreements. The variable elements of the payments related to leases (e.g., a machinery and/or equipment rental contract with part of the payments based on the asset’s productivity) are not considered in the calculation of the liability, and are recorded as operating expenses. The Company will make the transition using the modified retrospective approach, i.e., it will apply the requirements of the commercial lease standard to all existing agreements on the initial adoption date, i.e. January 1, 2019. Therefore, information and balances will not be restated for comparison purposes. The new accounting standard provides practical expedients whose election is optional. The Company intends to adopt the following accounting policies during the transition: · Not to revaluate whether the contract is or contains any lease on the initial adoption date. Instead, will apply IAS 17 to agreements that have been previously identified as leases, using IAS 17 and IFRIC 4; · Opt not to separate non-lease components from lease components, considering them, therefore, as a single lease component; · Not to record contracts with terms above 12 months, that at the transition date, will end within 12 months as from the initial adoption date; · Not to record low-value agreements (R$30 for the company in Brazil or US$10 for foreign subsidiaries), in accordance with the policy defined by the Management. · Exclude the initial costs with measuring the asset from the right of use on the initial adoption date; · Use hindsight, such as determining the term of the lease, if the contract contains options to postpone or terminate the lease, among others; and · Apply a single discount rate to the lease portfolio with reasonably similar characteristics (such as leases with similar remaining lease terms, for a similar class of underlying asset in a similar economic environment and similar financing currencies – “portfolios”). In this context, the Company expects the initial adoption of IFRS 16 to affect its financial statements and internal processes. The most significant impacts are related to: (1) recognition of new assets of right-of-use assets and lease liabilities in the balance sheet; (2) the disclosure of new significant information on lease activities. The Company does not expect significant changes in lease activities in the period between the issuance of these financial statements and the date of initial adoption. The effects expected as of January 1, 2019 are as follows: · Recognition of additional liabilities ranging between R$1,700,000 and R$1,900,000 as corresponding entries to the recognition of right-of-use assets. The amounts reflect the present value of the remaining minimum payments of the rent of existing operating leases; · The agreements that are exempt from recognition because they are short term and/or low value amount to an annual operating expense of approximately R$85,000. Furthermore, as of the reporting date of these Financial Statements, the Company is developing processes and controls to meet the new requirements. (b) IFRIC 23 – Uncertainty on Income Tax Treatment The new interpretation, that Company is obliged to adopt starting from January 1, 2019, establishes requirements for recognition and measurement in situations where the Company has determined, during the process of calculating taxes on net income (income tax and social contribution), the use of tax treatments that could be construed as uncertain and, therefore, could be questioned by the tax authorities. The Company concluded its analyses of the adoption of this standard and did not identify impacts on the financial statements. |
Application of critical estimat
Application of critical estimates and judgments | 12 Months Ended |
Dec. 31, 2018 | |
Application Of Critical Estimates And Judgments | |
Application of critical estimates and judgments | Critical estimates and judgments are those that require the most difficult, subjective or complex judgments by management, usually as a result of the need to make estimates that affect issues that are inherently uncertain. Estimates and judgments are continually reassessed and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results can differ from planned results due to differences in the variables, assumptions or conditions used in making estimates. The Company makes a series of other estimates that are presented in the respective notes, such as allowance for doubtful accounts and provision for repairing environmental damage. In order to provide an understanding of the way the Company forms its judgments on future events, the variables and assumptions used in critical estimates are presented below: 3.1 Deferred income tax (“IR”) and social contribution (“CSL”) The recognition and the amount of deferred taxes assets depend on the generation of future taxable income, which requires the use of an estimate related to the Company’s future performance. These estimates are included in the business plan, which is annually prepared by the Executive Board and submitted to the Board of Directors for approval. This plan uses as main variables projections for the price of the products manufactured by the Company, price of inputs, growth of the gross domestic product of each country where the Company operates, exchange variation, interest rate, inflation rate and fluctuations in the supply and demand of inputs and finished products. These projections are made based on specialized external consulting firms and on the Company’s historical performance and in strategic planning. Information on deferred income tax and social contribution is presented in Note 21(c). 3.2 Fair value of derivative and non-derivative financial instruments The Company evaluates the derivative financial instruments at their fair value and the main sources of information are the stock exchanges, commodities and futures markets, disclosures of the Central Bank of Brazil and quotation services, like Bloomberg and Reuters. Nevertheless, the volatility of the foreign exchange and interest rate markets in Brazil has been causing significant changes in future rates and interest rates over short periods of time, leading to significant changes in the market value of swaps and other financial instruments. The fair values of non-derivative, quoted financial instruments are based on current bid prices. If the market for a financial asset and for unlisted securities is not active, the Company establishes fair value by using valuation techniques. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models that make maximum use of market inputs and rely as little as possible on information provided by the Company’s Management. Information on derivative and non-derivative financial instruments is presented in Note 19. 3.3 Useful life of assets (a) The main factors that are taken into consideration in the definition of the useful life of the assets that compose the Company’s industrial plants are the information of manufacturers of machinery and equipment, level of the plants’ operations, quality of preventive and corrective maintenance and the prospects of technological obsolescence of assets. The Company’s management also decided that: (i) depreciation should cover all assets value because when the equipment and installations are no longer operational, they are sold by amounts that are immaterial; and (ii) land is not depreciated because it has an indefinite useful life. The useful lives applied to the assets determined the following average (%) depreciation and depletion rates: 2018 2017 Buildings and improvements 3.42 3.36 Machinery, equipment and installations 8.04 8.34 Mines and wells 8.84 8.84 Furniture and fixtures 10.03 10.13 IT equipment 20.13 20.09 Lab equipment 9.53 9.56 Security equipment 9.72 9.77 Vehicles 17.83 17.51 Other 18.82 18.17 Information on property, plant and equipment is presented in Note 12. 3.4 Impairment test and analysis (a) Tangible and intangible assets with defined useful lives Annually or when there is an indication that an asset may be impaired, the Company conducts an analysis to determine the existence of any indication that the carrying amount of tangible assets and intangible assets with defined useful lives may not be recoverable. This analysis is conducted to assess the existence of scenarios that could adversely affect its cash flow and, consequently, its ability to recover the investment in such assets. These scenarios arise from issues of a macroeconomic, legal, competitive or technological nature. Some significant and notable aspects considered by the Company in this analysis include: (i) the possibility of an oversupply of products manufactured by the Company or of a significant reduction in demand due to adverse economic factors; (ii) the prospects of material fluctuations in the prices of products and inputs; (iii) the likelihood of the development of new technologies or raw materials that could materially reduce production costs and consequently impact sales prices, ultimately leading to the full or partial obsolescence of the industrial facilities of the Company; and (iv) changes in the general regulatory environment that make the production process of Braskem infeasible or that significantly impact the sale of its products. For this analysis, the Company maintains an in-house team with a strategic vision of the business and also remains in permanent contact with a team of external consultants. If the aforementioned variables indicate any material risk to cash flows, the Management of Braskem conducts impairment tests in accordance with Note 3.4(b). The Company’s assets are grouped initially under operating Segments, based on product lines and production site location. Within each Segment, assets are grouped into Cash-Generating Units (“CGU”) as follows: Reportable operating segments: Chemicals: · CGU Chemicals Bahia: represented by assets of the chemicals plants located in the state of Bahia; · CGU Chemicals South: represented by assets of the chemicals plants located in the state of Rio Grande do Sul; · CGU Chemicals Southeast: represented by assets of the chemicals plants located in the states of Rio de Janeiro and São Paulo; Polyolefins: · CGU Polyethylene: represented by assets of the PE plants located in Brazil; · CGU Polypropylene: represented by assets of the PP plants located in Brazil; · CGU Renewables: represented by the assets of the Green PE plant located in Brazil; Vinyls: · CGU Vinyls: represented by assets of PVC and chloride soda plants located in Brazil; USA and Europe: · CGU Polypropylene USA: represented by assets of PP plants located in the United States; · CGU Polypropylene Europe: represented by assets of PP plants located in Germany; Mexico: · Represented by the assets of the ethylene and PE plants located in Mexico. (b) Intangible assets with indefinite useful lives The balances of goodwill from future profitability arising from business combinations are tested for impairment once a year. These tests are based on the projected cash generation in each operating segment (except for Chemicals Sul CGU which is tested at the cash generation unit level), for a five-year period, which are extracted from the business plan of the Company and cited in Note 3.1. In addition to the projected cash flow for the period from 2019 to 2023, perpetuity is also calculated based on the long-term vision and excluding real growth. Cash flows and perpetuity are adjusted to present value at a discount rate based on the Weighted Average Cost of Capital (“WACC”). The goodwill allocated to the Polyolefins operating segment was generated in a business combination that resulted in the simultaneous acquisition of polypropylene and polyethylene plants. The main raw materials of these plants were already supplied by the Company, which resulted in significant synergies in the operation. These synergies were one of the main drivers of that acquisition. Accordingly, the Company’s management tested this goodwill for impairment, at operating segment level, since the benefits of the synergies are associated with all units acquired. The remaining existing goodwill is allocated to the Chemicals Sul CGU and to the Vinyls operating segment. Goodwill from future profitability are presented in Note 13. Said note also presents the results of impairment tests. 3.5 Contingencies Existing contingent liabilities and provisions are mainly related to discussions in the judicial and administrative spheres arising from primarily labor, pension, civil and tax lawsuits and administrative procedures. The Management of Braskem, based on the opinion of its external legal advisors, classifies these proceedings in terms of probability of loss as follows: Probable loss – these are proceedings for which there is a higher probability of loss than of a favorable outcome, i.e., the probability of loss exceeds 50%. For these proceedings, the Company recognizes a provision that is determined as follows: (i) tax and social security claims – the amount of the provision corresponds to the amount of the claim, plus interests and penalties; and (ii) labor and other claims - the amount of the provision corresponds to the disbursement amount estimated, plus interests and penalties. Possible loss – these are proceedings for which the possibility of loss is greater than remote and lesser than probable. The loss may occur, however, the elements available are not sufficient or clear to allow for a conclusion on whether the trend is for a loss or a gain. In percentage terms, the probability of loss is between 25% and 50%. For these claims, except for the cases arising from business combinations, the Company does not recognize a provision and mentions the most significant matters in a note to the financial statements (Note 23.2). In business combination transactions, in accordance with the provision in IFRS 3, the Company records the fair value of the claims based on the assessment of loss. The amount of the provision corresponds to the value of the matter, plus charges corresponding to the variation in the Selic rate, multiplied by the probability of loss. The Company’s management believes that the estimates related to the outcome of the proceedings and the possibility of future disbursement may change in view of the following: (i) higher courts may decide in a similar case involving another company, adopting a final interpretation of the matter and, consequently, advancing the termination of the of a proceeding involving the Company, without any disbursement or without implying the need of any financial settlement of the proceeding; and (ii) programs encouraging the payment of the debts implemented in Brazil at the Federal and State levels, in favorable conditions that may lead to a disbursement that is lower than the one that is recognized in the provision or lower than the value of the matter. The Company’s contingencies are presented in Note 23. 3.6 Hedge accounting The Company designated non-derivate financial liabilities in foreign currency to hedge the future cash flows generated by its exports. This decision was based on two important concepts and judgments: (i) the performance of exports according to its business plan, which are inherent to the market and business where it operates, and (ii) the ability of the Company to refinance its liabilities in U.S. dollar, since the priority financing in U.S. dollar is part of the Company’s guidelines and strategy and the maintenance of a minimum level of net liabilities in U.S. dollar is envisaged in the Financial Policy of the Company. The subsidiary Braskem Idesa designated all of the financing it obtained from financial institutions for the construction of its industrial plant to protect part of its sales to be made in the same currency as said financing, the U.S. dollar. The sales estimate is included in the project that was presented to the banks/lenders, which, due to the consistency of the projection, granted Braskem Idesa a financing line should be paid exclusively using the cash generated by these sales. All the commercial considerations of the project were based on market studies conducted by expert consulting firms during the feasibility-analysis phase. All hedge transactions conducted by the Company are in compliance with the accounting procedures and practices adopted by Braskem, and effectiveness tests are conducted for each transaction every quarter, which prove the effectiveness of its hedge strategy. The Company determined that hedged items will be characterized by the first sales in U.S. dollars in each quarter until the amount designated for each period is reached (Notes 19.4(a.i) e 19.4(a.ii), respectively). The liabilities designated for hedge will be aligned with the hedging maturity schedule and the Company’s financial strategy. According to the Financial Policy, the Company may contract derivatives (swaps, NDFs, options, etc.) to hedge against the volatility of the foreign exchange and interest rate. These derivatives may be designated for hedge accounting based on the judgment of Management and when such designation is expected to significantly improve the demonstration of the compensatory effect on the fluctuations in the items protected by the hedge. The Company currently has derivatives designated for cash flow hedge accounting, as reported in Note 19.3. |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2018 | |
Risk Management | |
Risk management | Braskem is exposed to market risks arising from variations in commodity prices, foreign exchange rates and interest rates, credit risks of its counterparties in cash equivalents, financial investments and trade accounts receivable, and liquidity risks to meet its obligations from financial liabilities. Braskem adopts procedures for managing market and credit risks that are in conformity with its Financial Policy which is periodically reviewed by the Board of Directors. The purpose of risk management is to protect the Company’s cash flows and reduce the threats to the financing of its operating working capital and investment programs. 4.1 Market risks Braskem prepares a sensitivity analysis for foreign exchange rate and interest rate risks to which it is exposed, which is presented in Note 19.6(c.2). (a) Exposure to commodity risks Most of Braskem’s feedstocks (naphtha, ethane, propane and propylene) and main products (PE, PP and PVC) are commodities quoted on international markets. A series of factors determine the dynamics of these quotes which directly impacts Braskem’s results and cash generation. Nevertheless, the Company believes such risk is inherent to the petrochemical business and, therefore, in general, it does not seek financial instruments to hedge against commodity price fluctuations. (b) Exposure to foreign exchange risk Considering the dynamics of the international petrochemical market, where prices are mostly pegged to international dollar-denominated references, even Braskem’s sales in Brazil are strongly correlated to the U.S. currency. Therefore, the maintenance of a portion of costs in Brazilian real (fixed expenses with personnel, freight and energy, etc.) tends to generate a net exposure loss to the local currency. Therefore, with the goal of partially mitigating the long-term exchange risk, as of September 2016, the Company started to contract financial derivatives to compose a Long-Term Foreign Exchange Hedge Program. The Program mainly aims to mitigate dollar call and put option contracts, hedging expected flows over a 24-month horizon, as described in greater detail in Note 19.3. In addition to the Hedge Program, to balance the composition between dollar-denominated assets and liabilities, Braskem’s Financial Policy requires the Company to maintain a percentage of at least 70% of the dollar-denominated portion of net debt. If convenient, the company may maintain a percentage of more than 70%, although subject to a sensitivity analysis of key financial indicators and proof of the inexistence of significant risk of deterioration of these indicators. On December 31, 2018, Braskem prepared a sensitivity analysis for its exposure to the fluctuation in the U.S. dollar, as informed in Note 19.6. (c) Exposure to interest rate risk Braskem is exposed to the risk that a variation in floating interest rates causes an increase in its financial expense due to payments of future interest. Debt denominated in foreign currency subject to floating rates is mainly subject to fluctuations in Libor. Debt denominated in local currency is mainly subject to the variation in the Interbank Certificate of Deposit (“CDI”) rate. In 2018, Braskem held swap contracts (Note 19.3.1) in which it: receives Libor and pays a fixed rate. On December 31, 2018, Braskem prepared a sensitivity analysis for the exposure to the floating interest rates Libor, CDI and TJLP, as informed in Notes 19.6(c.1) and (c.2). 4.2 Exposure to credit risk The transactions that subject Braskem to the concentration of credit risks are mainly in current accounts with banks, financial investments and trade accounts receivable in which Braskem is exposed to the risk of the financial institution or customer involved. In order to manage this risk, Braskem maintains bank current accounts and financial investments with major financial institutions, weighting concentrations in accordance with the credit rating and the daily prices observed in the Credit Default Swap market for the institutions, as well as netting contracts that minimize the total credit risk arising from the many financial transactions entered into by the parties. On December 31, 2018, approximately 34.5% of the amounts recorded as “Cash and cash equivalents” (Note 5) and Financial investments (Note 6) were allocated to financial institutions that had offset agreements with the Company. The obligations under these agreements are accounted for under “Borrowings” (Note 15). The effective netting of these amounts is possible only in the event of default by one of the parties. With respect to the credit risk of customers, Braskem protects itself by performing a rigorous analysis before granting credit and obtaining secured and unsecured guarantees when considered necessary, including credit insurance. The maximum exposure to credit risk of non-derivative financial instruments on the reporting date is the sum of their carrying amounts less any provisions for impairment losses. On December 31, 2018, the balance of trade accounts receivable was net of allowance for doubtful accounts (Note 7). 4.3 Liquidity risk Braskem has a calculation methodology to determine a minimum cash “monthly vision” (30-day horizon) and a minimum cash “yearly vision” (up to 12-month horizon) for the purpose of, respectively: (i) ensuring the liquidity needed to comply with obligations of the following month; and (ii) ensuring that the Company maintains liquidity during potential crises. The amounts to determine the minimum cash “yearly vision” are calculated mainly based on the projected operating cash generation, less short-term debts and working capital needs. The amounts used for determining the minimum cash “monthly vision” consider the projected operating cash disbursement, debt service and contributions to projects, as well as the planned disbursement for derivatives maturing in the period, among other items. The Company uses as minimum cash in its financial policy the greater of these two references. In May 2018, the Company, in keeping with its commitment to maintain its financial liquidity, contracted an international revolving credit facility in the amount of US$1 billion, which expires in 2023. This line may be used without restrictions to improve the Company’s credit quality or in the event of deterioration in the macroeconomic scenario. The two facilities held by the Company before, in the amounts of R$750 million with expiration in December 2019 and of R$500 million with expiration in September 2019, were cancelled. As of December 31, 2018, the new credit line had not been used. On December 31, 2018, the subsidiary Braskem Idesa continued to record as current liabilities its financial obligations whose original maturities were long term. Such reclassification is due to the failure to comply with certain contractual covenants set forth in the financing contract of Braskem Idesa (Note 16). Note that Braskem Idesa has been settling all its obligations in accordance with the original debt maturity schedule and none of its creditors has requested or showed any intention of requesting the immediate reimbursement of said obligations or the early amortization of the debt. In case Braskem Idesa’s group of lenders decide to request the early amortization of this debt, Braskem’s financial liabilities by maturity, including the amounts due under the Leniency Agreement (Note 23.3), are as shown in the table below. These amounts are calculated from undiscounted cash flows and may not be reconciled with the balance sheet. Maturity Until Between one and Between two and More than one year two years five years five years Total Trade payables 8,435,246 37,252 8,472,498 Borrowings 806,418 6,469,288 5,479,526 26,182,832 38,938,064 Debentures 34,760 118,457 141,972 106,316 401,505 Braskem Idesa borrowings 10,504,592 10,504,592 Derivatives 76,355 55,449 128,765 260,569 Loan to non-controlling shareholder of Braskem Idesa 2,183,830 2,183,830 Leniency agreement (Note 23.3) 341,308 341,308 897,376 409,876 1,989,868 At December 31, 2018 20,198,679 7,021,754 6,647,639 28,882,854 62,750,926 Considering that Braskem Idesa’s group of lenders will remain not requesting the early amortization of this debt, Braskem’s financial liabilities by maturity, including the amounts due under the Leniency Agreement (Note 23.3), are as shown in the table below. These amounts are calculated from undiscounted cash flows and may not be reconciled with the balance sheet. Maturity Until Between one and Between two and More than one year two years five years five years Total Trade payables 8,435,246 37,252 8,472,498 Borrowings 806,418 6,469,288 5,479,526 26,182,832 38,938,064 Debentures 34,760 118,457 141,972 106,316 401,505 Braskem Idesa borrowings 995,741 2,482,602 2,835,154 7,353,752 13,667,249 Derivatives 76,355 55,449 128,765 260,569 Loan to non-controlling shareholder of Braskem Idesa 2,183,830 2,183,830 Leniency agreement (Note 23.3) 341,308 341,308 897,376 409,876 1,989,868 At December 31, 2018 10,689,828 9,504,356 9,482,793 36,236,606 65,913,583 4.4 Capital management The ideal capital structure, according to Braskem’s Management, considers the balance between own capital and the sum of all payables less the amount of cash and cash equivalents and financial investments. This composition meets the Company’s objectives of perpetuity and of offering an adequate return to shareholders and other stakeholders. This structure also permits borrowing costs to remain at adequate levels to maximize shareholder remuneration. Due to the impact of the U.S. dollar on the Company’s operations, the Management of Braskem believes that the own capital used for capital management purposes should be measured in this currency and on a historical basis. Moreover, the Company may temporarily maintain a capital structure that is different from this ideal. This occurs, for example, during periods of growth, when the Company may finance a large portion of its projects through borrowings, provided that this option maximizes return for shareholders once the financed projects start operating. In order to adjust and maintain the capital structure, the Management of Braskem may also consider the sale of non-strategic assets, the issue of new shares or even adjustments to dividend payments. As is also the case of liquidity, capital is not managed at the Parent Company level, but rather at the consolidated balance sheet level, except for the liquidity and capital of Braskem Idesa, which are managed specifically within the subsidiary. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | 2018 2017 Cash (i) 2,228,964 1,428,766 Cash equivalents: Domestic market 1,754,561 1,706,784 Foreign market (i) 1,564,112 639,543 Total 5,547,637 3,775,093 (i) On December 31, 2018, cash includes R$963,357 (R$247,286 of cash and R$47,400 of cash equivalents on December 31, 2017) held by subsidiary Braskem Idesa, available for use exclusively in its subsidiary. This item includes cash, bank deposits and highly liquid financial investments available for redemption within three months. These assets are convertible into a known cash amount and are subject to insignificant risk of change in value. Cash equivalents in Brazil are mainly represented by fixed-income instruments and time deposits held by the funds FIM Jupiter and FIM Netuno. Cash equivalents abroad mainly comprise fixed–income instruments issued by highly rated financial institutions (time deposit). |
Financial investments
Financial investments | 12 Months Ended |
Dec. 31, 2018 | |
Financial Investments | |
Financial investments | 2018 2017 Amortized cost Time deposit investments (i) 49,630 440,616 Fair value through profit or loss Time deposit investments 15,764 Letras financeiras do tesouro - LFT´s and Letras Financeiras - LF´s (ii) 2,247,272 1,816,889 Restricted funds investments (iii) 9,998 12,404 Other 60,711 27,335 Total 2,367,611 2,313,008 Current assets 2,357,613 2,302,672 Non-current assets 9,998 10,336 Total 2,367,611 2,313,008 (i) In 2017, the amount of R$440,616 was given as guarantee to cover Braskem’s obligation related to the constitution of a reserve account for the project finance of the subsidiary Braskem Idesa. The guarantee was withdrawn in April 2018. (ii) These refer to Brazilian floating-rate government bonds (“LFTs”) issued by the Brazilian federal government and floating-rate bonds (“LFs”) issued by financial institutions. These bonds have original maturity above three months, immediate liquidity in the secondary market and Management expects their realization in the short term. (iii) Restricted funds represent bank deposits with yields of approximately 100% of the Interbank Deposit Rate (“CDI”), and their use is related to the fulfillment of the contractual obligations of the debentures. |
Trade accounts receivable
Trade accounts receivable | 12 Months Ended |
Dec. 31, 2018 | |
Trade Accounts Receivable | |
Trade accounts receivable | The Company’s billing period is generally 30 days; therefore, the amount of the trade accounts receivable corresponds to their fair value. The Company realizes part of its trade accounts receivable through the sale of trade notes to funds and financial institutions that acquire receivables. These operations are not entitled to recourse and the risks and benefits over the receivables are substantially transferred, for which reason the trade notes are written-off at the moment of the sale. 2018 2017 Customers Domestic market 1,425,444 1,459,623 Foreign market 1,901,184 2,209,094 Expected credit loss (i) (233,625) (350,025) Total 3,093,003 3,318,692 Current assets 3,075,218 3,281,196 Non-current assets 17,785 37,496 Total 3,093,003 3,318,692 (i) As disclosed in Note 2.4, the IFRS 9 replaced, as from January 1, 2018, the “incurred losses” model of IAS 39 with a prospective model of “expected credit losses,” which requires greater judgment of how the changes in economic factors affect the expected credit losses, which are determined based on the following stages: Stage 1 – when the securities are still performing at this stage, expected credit losses are calculated based on the actual experience of credit loss (write-off) over the last five years, segregating customers in accordance with their Operating Risk. Stage 2 – when there is deterioration in the credit risk of the customer since the initial recognition; at this stage, the Company considers as deterioration of credit risk any credits that were renegotiated and that must be collected in court, regardless of their maturity. Stage 3 – includes financial assets that have objective evidence of impairment; the trigger for evidence of impairment is an unprecedented delay of more than 90 days. The following table shows the Company’s expected credit loss for each stage: Estimated loss percentage Trade accounts receivable Allowance for doubtful accounts Stage 1 (Performing) Operation risk 1 No risk 1,977,941 Operation risk 2 No risk 635,549 Operation risk 3 0.27% 268,156 752 Operation risk 4 0.63% 199,499 1,218 Operation risk 5 100% 24 24 3,081,169 1,994 Stage 2 (Significant Increase in Loss Risk) 1st Renegotiation lower than 24 months 12% or 100% 10,533 1,554 2nd Renegotiation greater than 24 months 91% or 100% 2,915 2,876 Legal 100% 172,189 172,189 185,637 176,619 Stage 3 (No payment performance - Indicative of impairment) Between 90 and 180 days 50% or 100% 10,014 5,204 Above 180 days 100% 49,808 49,808 59,822 55,012 Total 3,326,628 233,625 The changes in the expected credit loss are presented below: 2018 2017 Balance of provision at the beginning of the year (350,025) (380,559) Reversal in the year 99,975 18,573 Write-offs 16,425 22,878 Addition through merger of Cetrel (10,917) Balance of provision at the end of the year (233,625) (350,025) The breakdown of trade accounts receivable by maturity is as follows: 2018 2017 Accounts receivables not past due 2,616,104 2,886,546 Past due securities: Up to 90 days 492,265 567,590 91 to 180 days 10,941 3,673 As of 180 days 207,318 210,908 3,326,628 3,668,717 Expected credit loss (233,625) (350,025) Total customers portfolio 3,093,003 3,318,692 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventories Abstract | |
Inventories | 2018 2017 Finished goods - 5,542,220 4,255,114 Raw materials, production inputs and packaging - 1,578,523 1,715,757 Maintenance materials - 465,684 365,803 Advances to suppliers - 93,445 275,169 Imports in transit - 838,099 74,670 Total - 8,517,971 6,686,513 - In current assets - 8,486,577 6,640,049 In non-current assets - 31,394 46,464 Total - 8,517,971 6,686,513 Inventories of finished products are stated at average cost of purchase or production or the estimated price of sale or acquisition, excluding taxes, whichever is lower. The value of finished products includes raw materials, ancillary and maintenance materials used, depreciation of industrial facilities, expenses with Company’s and third-party personnel involved in industrial production and maintenance, and logistics expenses with the transfer of these products from the plants to the sale terminals. Finished goods are measured at the lower of cost and net realizable value, and, when necessary, a provision is recorded. For this estimate, the Company considers the sale price projected, reduced by all costs of sale, for the period during which it expects to sell the product. This period is determined based on the historical data for the turnover of the respective inventory. In 2018, the net effect of this provision is R$13,906. |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2018 | |
Related Parties | |
Related parties | Balances at December 31, 2018 Balances at December 31, 2017 Associates companies, Jointly-controlled investment and Related companies Associates companies, Jointly-controlled investment and Related companies Odebrecht and Odebrecht and subsidiaries Petrobras and subsidiaries Petrobras and Balance sheet and associates subsidiaries Other Total and associates subsidiaries Other Total Assets Current Trade accounts receivable 20,119 2,687 22,806 7,634 45,184 60,502 113,320 Inventories 8,665 9(c.i) and 30,193 38,858 250,904 118 251,022 Dividends and interest on capital (c.ii) 890 890 10,859 10,859 Total assets 8,665 50,312 3,577 62,554 258,538 45,302 71,361 375,201 Liabilities Current Trade payables 16,851 160,324 177,175 21,530 149,058 700 171,288 Other payables 2,841 484 3,325 2,338 562 7,591 10,491 Total liabilities 19,692 160,808 180,500 23,868 149,620 8,291 181,779 Twelve-month period ended December 31, 2018 Twelve-month period ended December 31, 2017 Twelve-month period ended December 31, 2016 Associates companies, Jointly-controlled investment and Related companies Associates companies, Jointly-controlled investment and Related companies Associates companies, Jointly-controlled investment and Related companies Odebrecht and Odebrecht and Odebrecht and subsidiaries Petrobras and subsidiaries Petrobras and subsidiaries Petrobras and and associates subsidiaries Other Total and associates subsidiaries Other Total and associates subsidiaries Other Total Transactions Sales of products 1,225,443 736,192 1,961,635 27,467 1,810,789 629,302 2,467,558 49,051 2,023,815 562,709 2,635,575 Purchases of raw materials, finished goods services and utilities 460,480 15,540,144 3,800 16,004,424 742,161 12,795,819 5,664 13,543,644 1,564,103 12,291,190 56,170 13,911,463 Financial income (expenses) (49) (49) 2,056 (39,433) (37,377) (21) 6,452 6,431 Other income 4,214 4,214 General and administrative expenses Post-employment benefits plan ("EPE") Odebrecht Previdência Privada ("Odeprev") 48,514 36,725 36,725 41,845 41,845 Acquisiton of subsidiary 610,000 610,000 (a) New and/or renewed agreements with related companies As provided for in the Company’s bylaws, the Board of Directors has the exclusive power to decide on any contract with related parties that exceed R$20,000 per operation or R$60,000 altogether per fiscal year. This is valid for contracts between Braskem and its subsidiaries and: (i) direct or indirect subsidiaries of Braskem in whose capital an interest is held by the controlling shareholder, by any direct or indirect subsidiaries thereof or by Key Personnel of such entities; (ii) affiliates of Braskem and subsidiaries of such entities; and (iii) joint ventures in which Braskem participates and any subsidiaries thereof. Pursuant to Federal Law 6,404/76, officers and directors are prohibited from: (i) performing any acts of liberality with the use of the Company’s assets and in its detriment; (ii) intervening in any operations in which these officers and directors have a conflict of interest with the Company or in resolutions in which they participate; and (iii) receiving, based on their position, any type of personal advantage from third parties, directly or indirectly, without an authorization under the Bylaws or by the shareholders’ meeting. As part of its control to identify related parties, Key Personnel annually inform whether they, or their close relatives, hold full or shared control of any company. All companies that conducted transactions with Braskem and its subsidiaries, are provided in this Note. The related parties that have significant relationship with the Company are as follows: Odebrecht and its direct and indirect subsidiaries: · Atvos Agroindustrial S.A. (“Atvos”). · Agro Energia Snata Luzia S.A. (“USL”). · Construtora Norberto Odebrecht S.A. (“CNO”). · Usina Conquista do Pontal S.A. (“UCP”). Petrobras and its direct and indirect subsidiaries: · Petróleo Brasileiro S.A. (“Petrobras”). · Petrobras Distribuidora (“BR Distribuidora”). Joint ventures of Braskem: · Refinaria de Petróleo Riograndense S.A. (“RPR”). Associate of Braskem: · Borealis Brasil S.A. (“Borealis”). The main transactions between the Company and related parties, in the fiscal years ended December 31, 2018 and December 31, 2017, all conducted under normal market terms and conditions (arm’s length basis), are as follows: · Odebrecht and its subsidiaries: (i) In March 2017, the Company entered into an agreement for supply of hydrous ethanol with UCP and USL. Ethanol is the feedstock consumed by Braskem to produce green ethylene. The agreement is guaranteed by Atvos and Rio Claro Agroindustrial S.A.. The agreement also provides for a commercial discount and other flexibilities in the process of Braskem’s acquisition of the product. In December 2017, the Company entered into an amendment that changed the billing for raw material acquisitions to future delivery, so as to bring forward the billing of the volume of the goods to be delivered between January and March 2018. The amendment determines that the price practiced at time of delivery is the lesser of the ceiling established in the amendment and the reference established in the original contract. The agreement was valid until April 30, 2018. (ii) In December 2017, an agreement was entered into with USL, UCP, Atvos and Brenco Companhia Brasileira de Energia Renovável, with the purpose of ensuring the supply of hydrous ethanol volumes, which included a commercial discount on the supply and established contractual flexibilities for acquisition. The contract includes an advance of R$200,000, which is guaranteed by a pledge of the sugarcane crop, its products and sub-products at a net market value greater than the amount of the advance, with the pledged asset insured by a policy contracted from a premium insurer and with a provision for subrogation to the Company, with duration through April 30, 2019. The balance of the advance on December 31, 2018 is R$8,665. (iii) In December 2017, the Company signed an industrial maintenance services agreement with CNO that encompassed boilers and the welding of tubing and static equipment, as well as operational and maintenance services on cargo machinery to be performed at the Braskem Units located in Rio Grande do Sul. The agreement has an estimated maximum amount of R$120,000 and is valid through December 1, 2021. In 2018, the transactions amounted to R$19,054. (iv) In May 2018, Braskem entered into an agreement for caustic soda movement and storage services with Liquiport Vila Velha S.A., a wholly owned subsidiary of Odebrecht Transport S.A. The agreement has an estimated maximum value of R$93,000 and is valid for 10 years. Sales in the period amounted to R$5,844. · Petrobras and its subsidiaries: (i) Since December 2015, the Company has maintained an agreement with Petrobras for the annual supply of 7 million tons of petrochemical naphtha, which has a duration of five years. (ii) Braskem maintains agreements for the sale of gasoline to BR Distribuidora, which is renewed on a monthly basis. · Braskem joint venture: (i) In 2018, sales of gasoil to RPR amounted to R$127,342. The product is used as feedstock in the diesel production process. (ii) Braskem has maintained monthly negotiations for the sale of gasoline to RPR. Sales in fiscal year 2018 amounted to R$313,460. (b) Key management personnel Income statement transactions 2018 2017 2016 Remuneration Short-term benefits 60,922 60,303 44,277 Post-employment benefit 989 664 515 Long term incentive plan 4,404 Total 66,315 60,967 44,792 |
Taxes recoverable
Taxes recoverable | 12 Months Ended |
Dec. 31, 2018 | |
Taxes Recoverable | |
Taxes recoverable | 2018 2017 Parent Company and subsidiaries in Brazil IPI 9,050 18,226 Value-added tax on sales and services (ICMS) - normal operations (a) 427,331 483,248 ICMS - credits from PP&E 170,998 140,904 Social integration program (PIS) and social contribution on revenue 482 22,389 PIS and COFINS - credits from PP&E 255,739 223,297 IR e CSL 553,740 691,697 REINTEGRA program (b) 20,615 102,166 Federal supervenience (c) 688,111 140,537 Other 2,852 4,322 Foreign subsidiaries Value-added tax ("IVA") 173,051 92,119 IR 111,948 46,939 Other 7,750 4,021 Total 2,421,667 1,969,865 Current assets 847,088 982,629 Non-current assets 1,574,579 987,236 Total 2,421,667 1,969,865 (a) ICMS – normal operations Accumulated ICMS credits over the past few years arises mainly from domestic sales subject to deferred taxation and export sales. The Management of the Company has been prioritizing a series of actions to maximize the use of these credits and currently does not expect losses on the realization of cumulative balances. (b) REINTEGRA Program The REINTEGRA program aims to refund to exporters the federal taxes levied on the production chain for goods sold abroad. The amount to be refunded is equivalent to the following percentages of all export revenue, in accordance with Federal Law 13,043/14 and Executive Order 8,543/15: (i) 3%, between October 1, 2014 and February 28, 2016; (ii) 1%, between March 1, 2016 and November 30, 2016; (iii) 0.1% between December 1, 2016 and December 31, 2016; (iv) 2% between January 1, 2017 and May 31, 2018; and (v) 0.1% as of June 1, 2018. Such credits may be realized in two ways: (i) by offsetting own debits overdue or undue related to taxes levied by the Federal Revenue Service; or (ii) by a cash reimbursement. In the fiscal year ended December 31, 2018, the Company recognized credits in the amount of R$69,055 (R$178,716 in 2017) and offset the amount of R$144,957 (R$138,531 in 2017). In the Statement of profit or loss, credits were recognized in the item “Cost of products sold.” (c) Recovery of Federal Tax Credits In March 2017, the Federal Supreme Court (STF) decided, in connection with the Extraordinary Appeal indicated by STF itself as the leading case of this discussion, that ICMS tax should not be included in the calculation base of PIS/COFINS. Despite the filing of a motion for clarification by the Federal Government requesting the prospective effects of the decision, the STF itself and all Regional Federal Appellate Courts in Brazil have applied the decision of the lead case indiscriminately. On December 31, 2018, the Extraordinary Appeal of the Federal Government, filed in a lawsuit brought by Braskem S/A itself, was ruled moot, therefore increasing the legal certainty of the Company for recognizing its right. In this scenario, Braskem recognized, as of December 31, 2018, a tax credit in the amount of R$519,830 related to PIS and COFINS for the period from March 2017 to November 2018, of which R$265,438 was recorded under “Net revenue,”, R$235,919 under “Other operating income (expenses)” and R$18,473 under “Financial income.” |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments Abstract | |
Investments | (a) Information on investments Interest in total and Net profit (loss) voting capital (%) - 2018 for the year Equity Direct and indirect 2018 2017 2016 2018 2017 Jointly-controlled investment RPR 33.20 6,358 106,109 86,682 99,672 201,038 Odebrecht Comercializadora de Energia S.A. ("OCE") (i) (48) (543) (5,720) 5,178 Associates Borealis 20.00 (2,900) 17,752 10,538 163,884 166,630 (i) Terminated in June, 2018. (b) Changes in investments Equity in results Dividends of investees Equity Balance at and interest Effect Goodwill valuation Balance at 2017 on equity of results amortization adjustments 2018 Domestic associate Borealis 33,325 (549) 32,776 OCE 1,036 (9) (1,027) RPR 66,752 (32,060) 2,106 (3,704) 33,094 Other 145 (61) 84 (c) Impact on the consolidation of Braskem Idesa In compliance with IFRS 12, the Company is presenting the financial information of the subsidiary in which there is interest held by non-controlling shareholder with material effects in the Company’s consolidated statements. Balance sheet Consolidated Braskem without the effect of Braskem Idesa consolidated Braskem Idesa consolidated (i) Eliminations Consolidated 2018 2017 2018 2017 2018 2017 2018 2017 Assets Curent Cash and cash equivalents 4,584,280 3,480,407 963,357 294,686 5,547,637 3,775,093 Financial investments 2,357,613 2,302,672 2,357,613 2,302,672 Trade accounts receivable 2,574,791 2,809,034 627,879 620,531 (127,452) (148,369) 3,075,218 3,281,196 Inventories 7,907,429 6,293,324 579,148 346,725 8,486,577 6,640,049 Taxes recoverable 737,399 919,600 109,689 63,029 847,088 982,629 Other receivables 379,560 392,750 340,122 44,630 719,682 437,380 18,541,072 16,197,787 2,620,195 1,369,601 (127,452) (148,369) 21,033,815 17,419,019 Non-current (ii) Taxes recoverable 1,574,518 987,184 61 52 1,574,579 987,236 Deferred tax 114,000 129,469 990,158 1,036,257 1,104,158 1,165,726 Related parties 6,137,206 5,051,706 (ii) (6,137,206) (5,051,706) Other receivables 546,892 637,549 47,217 33,207 594,109 670,756 Property, plant and equipment 20,102,981 19,180,263 12,365,063 11,228,346 (iii) (708,154) (646,999) 31,759,890 29,761,610 Intangible 2,562,722 2,575,567 178,260 151,930 2,740,982 2,727,497 31,038,319 28,561,738 13,580,759 12,449,792 (6,845,360) (5,698,705) 37,773,718 35,312,825 Total assets 49,579,391 44,759,525 16,200,954 13,819,393 (6,972,812) (5,847,074) 58,807,533 52,731,844 Liabilities and shareholders' equity Current Trade payables 8,099,755 5,047,293 368,949 159,872 (127,452) (148,369) 8,341,252 5,058,796 Borrowings 737,436 1,184,781 737,436 1,184,781 Debentures 27,732 27,183 27,732 27,183 Braskem Idesa Borrowings 10,504,592 9,691,450 10,504,592 9,691,450 Payroll and related charges 617,079 609,883 28,317 20,634 645,396 630,517 Taxes payable 488,472 881,702 12,801 13,067 501,273 894,769 Other payables 1,932,548 1,019,346 75,849 57,581 2,008,397 1,076,927 11,903,022 8,770,188 10,990,508 9,942,604 (127,452) (148,369) 22,766,078 18,564,423 Non-current Loan agreements 24,160,720 22,176,640 24,160,720 22,176,640 Braskem Idesa Borrowings 266,777 286,141 266,777 286,141 Accounts payable to related parties 6,147,768 5,065,971 (ii) (6,147,768) (5,065,971) Loan to non-controlling shareholders of Braskem Idesa (v) 2,183,830 1,756,600 2,183,830 1,756,600 Provision for losses on subsidiaries 2,871,819 2,689,769 (iv) (2,871,819) (2,689,769) Other payables 3,765,110 4,467,398 10,348 7,842 3,775,458 4,475,240 31,064,426 29,619,948 8,341,946 6,830,413 (9,019,587) (7,755,740) 30,386,785 28,694,621 Shareholders' equity Attributable to the Company's shareholders 6,531,070 6,300,300 (3,131,500) (2,953,624) 3,131,500 2,953,625 6,531,070 6,300,301 Non-controlling interest om subsidiaries 80,873 69,089 (957,273) (896,590) (876,400) (827,501) 6,611,943 6,369,389 (3,131,500) (2,953,624) 2,174,227 2,057,035 5,654,670 5,472,800 Total liabilities and shareholders' equity 49,579,391 44,759,525 16,200,954 13,819,393 (6,972,812) (5,847,074) 58,807,533 52,731,844 (i) Consolidation of Braskem Idesa with its direct subsidiary Braskem Idesa Serviços. (ii) Loan from Braskem Holanda as part of shareholders’ contribution to the Braskem Idesa project. (iii) Adjustment corresponding to the capitalization of a portion of financial charges of the abovementioned loan. (iv) Provision recorded in the subsidiary Braskem Holanda for the negative shareholders' equity of Braskem Idesa. (v) Loan owed to the non-controlling shareholder as part of shareholders’ contribution to the project. Statement of profit or loss Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2018 2017 2016 2018 2017 2016 2018 2017 2016 2018 2017 2016 Net revenue 54,851,243 46,207,109 46,343,171 3,766,371 3,656,801 1,495,018 (617,748) (603,316) (174,201) 57,999,866 49,260,594 47,663,988 Cost of products sold (44,783,284) (34,675,494) (34,040,770) (2,314,998) (2,125,031) (1,109,020) 667,062 623,117 164,221 (46,431,220) (36,177,408) (34,985,569) 10,067,959 11,531,615 12,302,401 1,451,373 1,531,770 385,998 49,314 19,801 (9,980) 11,568,646 13,083,186 12,678,419 Income (expenses) Selling and distribution (1,355,986) (1,287,817) (1,286,558) (189,582) (171,791) (117,115) (1,545,568) (1,459,608) (1,403,673) General and administrative (1,524,480) (1,336,072) (1,201,489) (108,191) (122,043) (123,855) (332) 23,843 39,731 (1,633,003) (1,434,272) (1,285,613) Research and development (199,821) (167,456) (162,010) (199,821) (167,456) (162,010) Results from equity investments 76,821 191,949 (923,096) (77,709) (151,993) 953,174 (888) 39,956 30,078 Other income (expenses), net (208,252) (887,185) (3,913,567) 299,104 32,305 7,613 90,852 (854,880) (3,905,954) 6,856,241 8,045,034 4,815,681 1,452,704 1,270,241 152,641 (28,727) (108,349) 982,925 8,280,218 9,206,926 5,951,247 Financial results Financial expenses (2,227,544) (3,044,668) (3,054,334) (1,090,019) (973,952) (688,868) 310,012 271,403 172,240 (3,007,551) (3,747,217) (3,570,962) Financial income 867,185 850,367 955,423 31,879 24,666 3,193 (310,012) (271,403) (268,494) 589,052 603,630 690,122 Exchange rate variations, net (2,014,205) (936,804) (2,115,993) (232,064) 132,186 (1,094,424) (10,714) 5,856 (2,256,983) (798,762) (3,210,417) (3,374,564) (3,131,105) (4,214,904) (1,290,204) (817,100) (1,780,099) (10,714) 5,856 (96,254) (4,675,482) (3,942,349) (6,091,257) Profit before income tax and social contribution 3,481,677 4,913,929 600,777 162,500 453,141 (1,627,458) (39,441) (102,493) 886,671 3,604,736 5,264,577 (140,010) IR and CSL - current and deferred (639,394) (1,057,699) (1,039,107) (97,157) (299,983) 423,061 (736,551) (1,357,682) (616,046) (639,394) (1,057,699) (1,039,107) (97,157) (299,983) 423,061 (736,551) (1,357,682) (616,046) Profit (loss) for the year of continued operations 2,842,283 3,856,230 (438,330) 65,343 153,158 (1,204,397) (39,441) (102,493) 886,671 2,868,185 3,906,895 (756,056) Discontinued operations results Profit from discontinued operations 13,499 40,760 13,499 40,760 IR and CSL - current and deferred (4,623) (13,901) (4,623) (13,901) 8,876 26,859 8,876 26,859 Profit (loss) for the year 2,842,283 3,865,106 (411,471) 65,343 153,158 (1,204,397) (39,441) (102,493) 886,671 2,868,185 3,915,771 (729,197) Statement of cash flows Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2018 2017 2016 2018 2017 2016 2018 2017 2016 2018 2017 2016 Profit (loss) before income tax and social contribution and for the result with discontinued operations 3,481,677 4,913,929 641,537 162,500 453,141 (1,627,458) (39,441) (102,493) 886,671 3,604,736 5,264,577 (99,250) Adjustments for reconciliation of profit (loss) Depreciation, amortization and depletion 2,228,978 2,230,466 2,381,160 810,581 742,033 331,691 (48,982) (43,644) (29,751) 2,990,577 2,928,855 2,683,100 Results from equity investments (76,821) (191,949) 923,096 77,709 151,993 (953,174) 888 (39,956) (30,078) Interest and monetary and exchange variations, net 4,658,342 2,900,745 1,851,033 1,344,888 802,825 1,229,219 10,714 (5,856) (54,244) 6,013,944 3,697,714 3,026,008 Gain on sale of investment in subsidiary (276,816) (276,816) Leniency agreement 375,476 2,853,230 375,476 2,853,230 Reversal of provisions 23,725 (223,340) 23,725 (223,340) PIS and COFINS credits - exclusion of ICMS from the calculation basis (519,830) (519,830) Provision for losses and write-offs of long-lived assets 69,270 212,759 40,530 3,200 425 486 72,470 213,184 41,016 9,865,341 9,941,270 8,690,586 2,321,169 1,998,424 (66,062) (150,498) 12,186,510 11,939,694 8,474,026 Changes in operating working capital Financial investments 98,349 (953,228) (649,535) 98,349 (953,228) (649,535) Trade accounts receivable 158,378 (1,304,474) 1,083,117 (7,348) (373,066) (126,617) (20,917) 79,148 51,375 130,113 (1,598,392) 1,007,875 Inventories (1,337,618) (1,387,696) 966,974 (199,672) 36,668 (104,636) (1,537,290) (1,351,028) 862,338 Taxes recoverable 1,068,637 415,923 976,770 (46,395) 53,370 81,334 1,022,242 469,293 1,058,104 Prepaid expenses (67,051) (21,732) 64,029 (38,112) (8,789) (105,163) (30,521) 64,029 Other receivables (6,299) 34,500 332,673 (236,392) (8,698) 21,308 (242,691) 25,802 353,981 Trade payables 1,113,381 (1,444,468) (4,052,705) 209,077 (119,033) (150,495) 20,917 (79,148) (51,375) 1,343,375 (1,642,649) (4,254,575) Taxes payable (828,222) (132,697) (674,466) (149,026) (82,817) 382,335 (977,248) (215,514) (292,131) Advances from customers (218,623) (3,089) 207,020 18,665 (10,423) 9,830 (199,958) (13,512) 216,850 Leniency agreement (330,006) (1,343,803) (330,006) (1,343,803) Other payables 299,010 124,050 430,714 417,759 126,087 165,981 716,769 250,137 596,695 Cash from operations 9,815,277 3,924,556 7,375,177 2,289,725 1,611,723 212,978 (150,498) 12,105,002 5,536,279 7,437,657 Interest paid (1,328,420) (1,648,971) (1,611,718) (588,381) (505,082) (215,224) (1,916,801) (2,154,053) (1,826,942) Income tax and social contribution paid (937,557) (919,236) (1,152,847) (274) (1,370) (937,831) (920,606) (1,152,847) Net cash generated by operating activities 7,549,300 1,356,349 4,610,612 1,701,070 1,105,271 (2,246) (150,498) 9,250,370 2,461,620 4,457,868 Proceeds from the sale of fixed assets and intangible assets 95,133 95,133 Proceeds from the sale of investments 81,000 450,000 81,000 450,000 Funds received in the investments´ capital reduction 2,254 2,254 Dividends received 41,791 41,791 Additions to investments in subsidiaries (608,181) (608,181) Acquisitions to property, plant and equipment and intangible assets (2,635,906) (2,185,567) (1,844,510) (70,422) (87,630) (892,499) 150,498 (2,706,328) (2,273,197) (2,586,511) Other investments (2,167) 24,977 34,061 (2,167) 24,977 34,061 Net cash used in investing activities (2,417,895) (2,318,771) (1,810,449) (70,422) (87,630) (892,499) 150,498 (2,488,317) (2,406,401) (2,552,450) Short-term and long-term debt Acquired 4,301,626 8,492,341 4,107,626 4,301,626 8,492,341 4,107,626 Payments (6,592,197) (8,779,091) (4,901,593) (6,592,197) (8,779,091) (4,901,593) Derivative transactions - payments (810,279) (810,279) Braskem Idesa borrowings Acquired 187,959 503,921 187,959 503,921 Payments (812,929) (1,080,502) (469,282) (812,929) (1,080,502) (469,282) Related parties Acquired loans (payment of loans) 72,880 20,637 (882,158) (72,880) (20,637) 882,158 Dividends paid (1,499,900) (998,893) (1,997,984) (1,499,900) (998,893) (1,997,984) Net provided (used) in financing activities (3,717,591) (2,075,285) (3,674,109) (885,809) (913,180) 916,797 (4,603,400) (2,988,465) (2,757,312) Exchange variation on cash of foreign subsidiaries (309,941) 17,849 541,734 (76,168) (11,374) 44,908 (386,109) 6,475 586,642 Increase (decrease) in cash and cash equivalents 1,103,873 (3,019,858) (332,212) 668,671 93,087 66,960 1,772,544 (2,926,771) (265,252) Represented by Cash and cash equivalents at the beginning of the year 3,480,407 6,500,265 6,908,623 294,686 201,599 134,639 3,775,093 6,701,864 7,043,262 Cash and cash equivalents at the end of the year 4,584,280 3,480,407 6,576,411 963,357 294,686 201,599 5,547,637 3,775,093 6,778,010 Increase (decrease) in cash and cash equivalents 1,103,873 (3,019,858) (332,212) 668,671 93,087 66,960 1,772,544 (2,926,771) (265,252) |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | (a) Change Land Buildings and Improvements Machinery, Equipment and Facilities Projects and Stoppage in Progress (i) Other Total Cost 471,655 5,530,714 36,804,409 3,495,965 1,404,759 47,707,502 Accumulated depreciation/depletion (1,111,642) (16,595,497) (663,653) (18,370,792) Balance as of December 31, 2016 471,655 4,419,072 20,208,912 3,495,965 741,106 29,336,710 Acquisitions 149,018 2,090,157 6,066 2,245,241 Additions for acquisition of subsidiary 14,937 122,846 63,081 46,833 92,052 339,749 Capitalized financial charges 130,272 130,272 Foreign currency translation adjustment 5,600 168,554 387,757 56,425 4,877 623,213 Transfers by concluded projects 29,703 145,622 2,216,704 (2,539,041) 147,012 Disposals (21,249) (5,149) (166,585) (5,946) (12,342) (211,271) Cost (21,249) (7,444) (525,724) (5,946) (21,368) (581,731) Depletion 2,295 359,139 9,026 370,460 Depreciation / depletion (280,448) (2,275,788) (146,068) (2,702,304) Net book value 500,646 4,570,497 20,583,099 3,274,665 832,703 29,761,610 Cost 500,646 6,058,259 39,211,042 3,274,665 1,755,092 50,799,704 Accumulated depreciation/depletion (1,487,762) (18,627,943) (922,389) (21,038,094) Balance as of December 31, 2017 500,646 4,570,497 20,583,099 3,274,665 832,703 29,761,610 Cost - previously disclosed 500,646 6,058,259 39,211,042 3,274,665 1,755,092 50,799,704 Cost - reclassification 68,902 (70,296) 1,038,042 186,606 (92,650) 1,130,604 Cost - reclassified 569,548 5,987,963 40,249,084 3,461,271 1,662,442 51,930,308 Accumulated depreciation/depletion - previously disclosed (1,487,762) (18,627,943) (922,389) (21,038,094) Accumulated depreciation/depletion - reclassification (88,244) (964,517) (77,843) (1,130,604) Accumulated depreciation/depletion - reclassified (1,576,006) (19,592,460) (1,000,232) (22,168,698) Balance as of January 1, 2018 569,548 4,411,957 20,656,624 3,461,271 662,210 29,761,610 Acquisitions 372 201,492 2,439,286 13,199 2,654,349 Capitalized financial charges 178,055 178,055 Foreign currency translation adjustment 32,751 593,228 1,433,855 137,551 30,411 2,227,796 Cost 32,751 674,720 1,727,164 137,551 52,242 2,624,428 Depletion (81,492) (293,309) (21,831) (396,632) Transfers by concluded projects 16,477 1,022,560 (1,106,975) 67,938 Cost 16,477 1,022,560 (1,106,975) 67,938 Depletion Transfers to intangible (2,922) (1,539) (4,461) Cost (2,922) (1,539) (4,461) Depletion Other (2,009) (40,503) (3,873) (1,675) (48,060) Depreciation / depletion (370,035) (2,487,820) (151,544) (3,009,399) Net book value 602,299 4,649,990 20,786,208 5,102,393 619,000 31,759,890 Cost 602,299 6,676,549 43,024,738 5,102,393 1,784,807 57,190,786 Accumulated depreciation/depletion (2,026,559) (22,238,530) (1,165,807) (25,430,896) Balance as of December 31, 2018 602,299 4,649,990 20,786,208 5,102,393 619,000 31,759,890 (i) On December 31, 2018, the main amounts recorded under this item corresponded to expenses with scheduled maintenance shutdowns in Brazil and at overseas plants that are either in the preparation phase or ongoing (R$975,509), capitalized financial charges (R$293,697), inventories of spare parts (R$441,133), strategic projects in Brazil (R$125,541) and the strategic projects of Braskem America (R$1,547,870). The remainder corresponds mainly to various operational projects for maintaining the production capacity of plants. The machinery, equipment and facilities of the Company require inspections, replacement of components and maintenance in regular intervals. The Company makes shutdowns in regular intervals that vary from two to six years to perform these activities. These shutdowns can involve the plant as a whole, a part of it, or even only relevant pieces of equipment, such as industrial boilers, turbines and tanks. Shutdowns that take place every six years, for example, are usually made for the maintenance of industrial plants as a whole. Expenses with each scheduled shutdown are included in property, plant and equipment items that were the subject matter of the stoppage and are fully depreciated until the beginning of the following related stoppage. The expenditures with personnel, the consumption of small materials, maintenance and the related services from third parties are recorded, when incurred, as production costs. Property, plant and equipment items are depreciated on a straight-line basis. Projects in progress are not depreciated. Depreciation begins when the assets are available for use. Based on the analysis cited in Note 3.4(a), the Management of Braskem believes that the plants will operate at their full capacity, or close to it, within the projected period, therefore additional impairment tests of these assets were not necessary. The prices of products manufactured by the Company are quoted in international markets, in the short or medium term, and adjust to the prices of raw materials to preserve the historical margins of the business. Financial charges are capitalized on the balance of ongoing projects using: (i) the average rate of all financings; and (ii) the exchange variation portion that corresponds to any positive difference between the average rate of financing in the domestic market and the rate cited in item (i). In 2018, charges amounting to R$178,055 (R$130,272 in 2017) were capitalized. The average rate of these charges in the year was 8.78% p.a. (7.78% p.a. in 2017). (b) Property, plant and equipment by country 2018 2017 Brazil 16,278,608 16,665,988 Mexico 11,656,910 10,581,347 United States of America 3,539,495 2,275,987 Germany 273,987 229,328 Other 10,890 8,960 31,759,890 29,761,610 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets | |
Intangible assets | Goodwill based on Customers expected future Brands Software and Suppliers profitability and Patents licenses Agreements Total Cost 3,187,722 339,512 566,673 772,888 4,866,795 Accumulated amortization (1,128,848) (110,880) (364,336) (453,644) (2,057,708) Balance as of December 31, 2016 2,058,874 228,632 202,337 319,244 2,809,087 Acquisitions 340 27,319 297 27,956 Additions through acquisition on subsidiary 1,316 402 1,718 Foreign currency translation adjustment 8,357 4,759 (932) 12,184 Other 1,107 (124) 983 Cost 1,107 269 1,376 Amortization (393) (393) Amortization (8,349) (43,467) (72,615) (124,431) Net book value 2,058,874 230,087 192,140 246,396 2,727,497 Cost 3,187,722 349,316 607,528 772,253 4,916,819 Accumulated amortization (1,128,848) (119,229) (415,388) (525,857) (2,189,322) Balance as of December 31, 2017 2,058,874 230,087 192,140 246,396 2,727,497 Cost - reclassification (44) 58,515 117,743 121,861 298,075 Cost - reclassified 3,187,678 407,831 725,271 894,114 5,214,894 Accumulated amortization - reclassification 44 (61,252) (108,644) (128,223) (298,075) Accumulated amortization - reclassified (1,128,804) (180,481) (524,032) (654,080) (2,487,397) Balance as of January 1, 2018 2,058,874 227,350 201,239 240,034 2,727,497 Acquisitions 51,707 272 51,979 Foreign currency translation adjustment 23,966 10,037 (185) 33,818 Cost 27,021 21,053 94,351 142,425 Amortization (3,055) (11,016) (94,536) (108,607) Transfers from property, plant and equipment projects and stoppage in progress - 2,532 1,929 4,461 Other (1,003) (1,003) Cost (596,557) (596,557) Amortization 595,554 595,554 Amortization (7,551) (30,780) (37,439) (75,770) Net book value 2,058,874 246,297 234,132 201,679 2,740,982 Cost 3,187,678 437,384 799,960 392,180 4,817,202 Accumulated amortization (1,128,804) (191,087) (565,828) (190,501) (2,076,220) Balance as of December 31, 2018 2,058,874 246,297 234,132 201,679 2,740,982 Average annual rates of amortization 4.96% 11.71% 6.00% The Company adopts the following accounting practice for each class of intangible assets: (a) Goodwill based on future profitability The existing goodwill was determined in accordance with the criteria established by the accounting practices adopted in Brazil before the adoption of the IASB pronouncements and represent the excess of the amount paid over the amount of equity of the companies acquired. Such goodwill was systematically amortized until December 2008. As from 2009, it has been subject to annual impairment tests. In November 2018, Braskem conducted an impairment test of the goodwill using the value in use method (discounted cash flow) and did not identify any loss, as shown in the table below: Book value Allocated Cash flow (with goodwill goodwill (CF) and work capital) CF/Book value CGU and operating segments CGU - Chemicals South 926,854 9,628,209 2,479,778 3.9 Operating segment - Polyolefins 939,667 21,750,937 8,189,204 2.7 Operating segment - Vinyls 192,353 4,617,326 2,763,882 1.7 (i) The carrying amount includes, in addition to goodwill, tangible and intangible assets with defined useful lives and working capital from each operating segment. The assumptions adopted to determine the discounted cash flow are described in Note 3.4(b). The WACC used was 11.72% p.a. The inflation rate considered for perpetuity was 3.7%. Given the potential impact on cash flows of the “discount rate” and “perpetuity”, Braskem conducted a sensitivity analysis based on changes in these variables, with cash flows shown in the table below: +0.5% on -0.5% on discount rate perpetuity CGU and operating segments CGU - Chemicals South 9,099,954 9,249,202 Operating segment - Polyolefins 20,455,434 20,798,767 Operating segment - Vinyls 4,351,801 4,424,347 The main assumptions used for projecting cash flows are related to the projection of macroeconomic indicators, international prices and global and local demand in the countries where Braskem has operational production plants. Macroeconomic indicators are provided by a widely recognized consulting firm and include items such as: exchange, inflation and interest rates, among others. Prices for key petrochemical products are obtained from projections made by an international consulting firm. However, final prices take into consideration meetings of specific internal committees and the knowledge of the Company’s experts in preparing the benchmarks for each market. In most cases, for the projected period, the internally projected prices have gone through a new revision compared to those originally projected by the international consulting firm. Similar to for prices, global demand also is contracted from a specific consulting firm and, in the markets where the Company operates more directly, they consider additional variables for the composition of local demand. In the Vinyls segment, whose main product is PVC, the projected cash flow exceeded the book value of assets by 67%. The main variables impacting this business are related to fluctuations in the exchange rate, international spreads (especially those related to the prices of naphtha, PVC and Caustic Soda) and Brazilian demand. Effective deviations of these important variables from the Company’s projections could lead to cash flows being lower than the value of the assets. (b) Intangible assets with defined useful lives (b.1) Trademarks and patents The technologies acquired from third parties, including those acquired through business combination, are recorded at the cost of acquisition and/or fair value and other directly attributed costs, net of accumulated amortization and provision for impairment, when applicable. Technologies that have defined useful lives and are amortized using the straight-line method based on the term of the purchase agreement (between 10 and 20 years). Expenditures with research and development are accounted for in profit and loss as they are incurred. (b.2) Contractual customer and supplier relationships Contractual customer and supplier relationships arising from a business combination were recognized at fair value at the respective acquisition dates. These contractual customer and supplier relationships have a finite useful life and are amortized using the straight-line method over the term of the respective purchase or sale agreement (between 14 and 28 years). (b.3) Software All software booked has defined useful life estimated between 3 and 10 years and is amortized using the straight-line method. Costs associated with maintaining computer software programs are recognized in profit and loss as incurred. (c) Intangible assets by country 2018 2017 Brazil 2,510,503 2,502,231 Mexico 178,261 151,930 United States of America 26,791 47,357 Germany 25,373 25,948 Other 54 31 2,740,982 2,727,497 |
Trade account payables
Trade account payables | 12 Months Ended |
Dec. 31, 2018 | |
Trade Account Payables | |
Trade account payables | 2018 2017 Trade payables: Domestic market 1,551,554 2,287,767 Foreign market (i) 6,934,598 2,817,917 Present value adjustment - foreign market (107,648) (46,888) 8,378,504 5,058,796 Current liabilities 8,341,252 5,058,796 Non-current liabilities 37,252 8,378,504 5,058,796 (i) |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Borrowings [abstract] | |
Borrowings | (a) Borrowings Annual financial charges 2018 2017 Foreign currency Bonds Note 15 (b) 21,930,575 20,082,588 Export prepayment Note 15 (c) 810,542 781,573 Export credit notes Exchange variation + 7.30 (i) 679,895 Working capital US dollar exchange variation + 3.15% 883,181 Working capital Argentine Peso exchange variation 48 Investments Note 15 (d) 620,160 Other - SACE Note 15 (e) 1,147,397 Transactions costs (346,921) (285,657) 24,161,801 22,141,580 Current liabilities 610,922 985,639 Non-current liabilities 23,550,879 21,155,941 Total 24,161,801 22,141,580 Local currency Export credit notes 100.00 of CDI + 0.70 406,258 Export credit notes 105.00 and 108.00 of CDI (i) 508,146 BNDES TJLP + interest between 0.00 and 2.62 (i) 31,347 BNDES SELIC + 2.32 (i) 22,039 BNDES Interest between 3.50 and 4.00 (ii) 52,081 132,020 BNB/ FINEP/ FUNDES/FINISA/FINAME 5.83% (iii) 239,969 486,227 FINAME TJLP + 6.00 555 2,293 Fundo de Desenvolvimento do Nordeste (FDNE) 6.5% 37,099 42,045 Other 19.14% 426 655 Transactions costs (33) (4,931) 736,355 1,219,841 Current liabilities 126,514 199,142 Non-current liabilities 609,841 1,020,699 Total 736,355 1,219,841 Foreign currency and local currency Current liabilities 737,436 1,184,781 Non-current liabilities 24,160,720 22,176,640 Total 24,898,156 23,361,421 (i) Contracts with advanced settlement. (ii) Contracts partially settled in advance in the amount of R$32.287. (iii) Contracts partially settled in advance in the amount of R$138.230. (b) Bonds Issue amount Interest Issue date US$ Maturity (% per year) 2018 2017 June-2008 500,000 June-2018 7.25 440,274 May-2010 400,000 May-2020 7.00 81,434 159,341 May-2010 350,000 May-2020 7.00 1,370,156 1,169,732 October-2010 (i) 450,000 no maturity date 7.38 985,767 1,514,826 April-2011 750,000 April-2021 5.75 2,676,195 2,502,351 July-2011 500,000 July-2041 7.13 1,997,984 1,705,722 February-2012 250,000 April-2021 5.75 980,304 836,907 February-2012 250,000 no maturity date 7.38 985,767 841,570 May-2012 500,000 May-2022 5.38 1,954,177 1,668,323 July-2012 250,000 July-2041 7.13 998,992 852,861 February-2014 500,000 February-2024 6.45 1,988,773 1,697,859 May-2014 250,000 February-2024 6.45 994,387 848,929 October-2017 500,000 January-2023 3.50 1,969,609 1,667,025 October-2017 1,250,000 January-2028 4.50 4,947,030 4,176,868 Total 6,700,000 21,930,575 20,082,588 (i) Part of the contracts settled in the amount of R$825,720. (c) Export pre-payment Initial amount of the transaction Issue date (US$ thousand) Maturity Charges (% per year) 2018 2017 January-2013 200,000 November-2022 US dollar exchange variation + semiannual Libor + 1.10 311,082 331,701 September-2017 135,000 March-2017 US dollar exchange variation + semiannual Libor + 1.61 499,460 449,872 Total 335,000 810,542 781,573 (d) Capital raised for investments The subsidiary Braskem America contracted a credit facility in the amount of up to US$225 million that is secured by Euler Hermes, a German export credit agency, which will be used to finance a portion of the investment in the new PP plant located in La Porte, Texas, United States. The funds will be released in accordance with the progress of the project’s construction and the total amount funded is expected to be disbursed by December 30, 2020. Initial amount of the transaction Issue date (US$) Maturity Charges (% per year) 2018 2017 July-2018 (i) 158,150 December-2028 Us dollar exchange variation + semianual Libor + 0.65 620,160 Total 158,150 620,160 (i) US$130,650 released in July 2018, US$13,677 released in September 2018 and US$13,823 released in December 2018. (e) Others - SACE The subsidiary Braskem Netherlands B.V. secured a financing facility of US$295 million guaranteed by SACE Covered Facility Agreement, the Italian export credit agency. Initial amount of the transaction Issue date (US$) Maturity Charges (% per year) 2018 2017 November-2018 295,125 November-2028 Us dollar exchange variation + semianual Libor + 0.90 1,147,397 Total 295,125 1,147,397 (f) Payment schedule The maturity profile of the long-term amounts is as follows: 2018 2017 2019 1,245,895 2020 1,748,531 2,199,869 2021 3,933,857 3,655,465 2022 2,256,444 1,801,844 2023 2,355,549 1,709,587 2024 3,336,032 2,539,216 2025 234,270 45,994 2026 234,296 44,239 2027 205,157 17,586 2028 and thereafter 9,856,584 8,916,945 Total 24,160,720 22,176,640 (g) Guarantees Braskem gave collateral for part of its borrowings as follows: Total Total Loans Maturity debt 2018 guaranteed Guarantees BNB December-2022 88,909 88,909 Mortgage of plants, pledge of machinery and equipment BNB March-2023 32,093 32,093 Bank surety BNDES January-2021 52,081 52,081 Mortgage of plants, land and property, pledge of machinery and equipment FUNDES June-2020 47,929 47,929 Mortgage of plants, land and property, pledge of machinery and equipment FINEP July-2024 61,725 61,725 Bank surety FINEP December-2019 2,872 2,872 Bank surety, pledge of equipment and current account lockout (restricted fund). FINAME April-2021 1,496 1,496 Pledge of equipment FINISA December-2023 5,500 5,500 Bank surety OTHER July-2021 424 424 Pledge of equipment Total 293,029 293,029 |
Braskem Idesa Financing
Braskem Idesa Financing | 12 Months Ended |
Dec. 31, 2018 | |
Braskem Idesa Financing | |
Braskem Idesa Financing | Initial value of operation Identification US$ Maturity Charges (% per year) 2018 2017 Project finance (i) Project finance I 700,000 February-2027 Us dollar exchange variation + quarterly Libor + 3.25 2,335,825 2,179,981 Project finance II 210,000 February-2027 Us dollar exchange variation + 6.17 657,689 621,140 Project finance III 600,000 February-2029 Us dollar exchange variation + 4.33 1,983,113 1,827,811 Project finance IV 660,000 February-2029 Us dollar exchange variation + quarterly Libor + 3.88 2,225,042 2,032,093 Project finance V 400,000 February-2029 Us dollar exchange variation + quarterly Libor + 4.65 1,326,901 1,221,997 Project finance VI 89,994 February-2029 Us dollar exchange variation + quarterly Libor + 2.73 297,158 273,887 Project finance VII 533,095 February-2029 Us dollar exchange variation + quarterly Libor + 4.64 1,768,389 1,627,479 Transactions costs (89,525) (92,938) Total 3,193,089 10,504,592 9,691,450 Current liabilities 10,504,592 9,691,450 Total 10,504,592 9,691,450 In keeping with the Company’s Financial Policy, the investment in the Braskem Idesa petrochemical complex has been financed under a Project Finance structure, in which the construction loan must be repaid using exclusively the cash generated by Braskem Idea and with the shareholders pledging limited guarantees. Accordingly, this financing structure includes guarantees typical to transactions of this kind, such as assets, receivables, cash generation and other rights of Braskem Idesa. Project Finance borrowings include various contractual obligations (covenants) that are typical in contracts of this kind. On the reporting date of the financial statements of December 31, 2018, the company remains in breach of part of its non-financial contractual obligations. As a result, remains the reclassification to the current liability the entire balance of the non-current portion of the loan outstanding, in the amount of R$9,554,476, in accordance with IAS 1 (Presentation of Financial Statements). In accordance with the aforementioned accounting standards, reclassification is required in situations in which the breach of certain contractual obligations entitles creditors to request from Braskem Idesa the prepayment of obligations in the short term. In this context, note that none of the creditors requested said prepayment of obligations and that Braskem Idesa has been settling its debt service obligations in accordance with their original maturity schedule. As described in note 35.1, on October 9, 2019, Braskem Idesa obtained the waiver for such breaches with its creditors, therefore the long term debt will be reclassified from current liabilities back to non-current liabilities, in the next annual financial statements. The following amortization schedule presents the original long-term maturities, excluding the reclassification to current liabilities arising from the aforementioned breach of contractual obligations. 2018 2017 2019 748,071 2020 1,016,916 877,450 2021 1,161,108 1,002,270 2022 968,519 835,009 2023 1,280,154 1,105,295 2024 1,385,087 1,195,682 2025 1,381,192 1,195,096 2026 1,194,964 1,052,156 2027 582,393 474,438 2028 and thereafter 584,143 422,266 Total 9,554,476 8,907,733 |
Debentures
Debentures | 12 Months Ended |
Dec. 31, 2018 | |
Debentures Abstract | |
Debentures | Issue date Series Maturity Annual financial charges (%) 2018 2017 March-2013 Single March-2025 IPCA + 6% 210,506 216,968 September-2013 Single September-2025 126,5% of CDI 84,003 96,356 294,509 313,324 Current liabilities 27,732 27,183 Non-current liabilities 266,777 286,141 Total 294,509 313,324 (a) Payment schedule The amount of debentures with long-term maturities, is as follows: 2018 2017 2019 26,629 2020 44,811 43,674 2021 50,722 49,326 2022 50,745 49,326 2023 50,769 49,326 2024 50,796 49,326 2025 18,934 18,534 Total 266,777 286,141 (b) Guarantees The Company entered into agreements for the fiduciary assignment of receivables, with the maintenance of collection accounts in order to meet the debt service equivalent for up to three months of future installments, in accordance with the respective assignment agreements. |
Reconciliation of financing act
Reconciliation of financing activities in statement of cash flow | 12 Months Ended |
Dec. 31, 2018 | |
Reconciliation Of Financing Activities In Statement Of Cash Flow | |
Reconciliation of financing activities in statement of cash flow | Current and non-current Borrowings, debentures and Braskem Idesa financing Total borrowings Braskem Idesa Borrowings Debentures and debentures financing Total Dividends Balance at December 31, 2017 23,361,421 313,324 23,674,745 9,691,450 33,366,195 3,850 Acquired 4,301,626 4,301,626 4,301,626 Payments (6,569,073) (23,124) (6,592,197) (812,929) (7,405,126) (1,499,900) Cash used in financing activities (2,267,447) (23,124) (2,290,571) (812,929) (3,103,500) (1,499,900) Other changes Interest paid (1,304,811) (23,609) (1,328,420) (588,381) (1,916,801) Interest and monetary and exchange variations, net 3,703,892 27,918 3,731,810 604,837 4,336,647 Currency translation adjustments 1,405,101 1,405,101 1,609,615 3,014,716 Additional dividends approved in the boar meeting 1,500,000 Mandatory minimum dividends 667,419 Prescribed dividends / other 1,026 3,804,182 4,309 3,808,491 1,626,071 5,434,562 2,168,445 Balance at December 31, 2018 24,898,156 294,509 25,192,665 10,504,592 35,697,257 672,395 |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments | |
Financial instruments | 19.1 Fair Value (a) Fair value calculation The fair value of financial assets and liabilities is estimated as the amount for which a financial instrument could be exchanged in an arm’s length transaction and not in a forced sale or settlement. The following methods and assumptions were used to estimate the fair value: (i) Financial assets classified as fair value through profit and loss or as fair value through other comprehensive income are measured in accordance with the fair value hierarchy (Level 1 and Level 2), with inputs used in the measurement processes obtained from sources that reflect the most recent observable market prices. (ii) Trade accounts receivable and trade payables, mostly classified as amortized cost, corresponds to their respective carrying amounts due to the short-term maturity of these instruments. When purchase or sale prices include material financial charges, the securities are adjusted to their present value. (iii) The fair value of borrowings is estimated by discounting future contractual cash flows at the market interest rate, which is available to Braskem in similar financial instruments. (iv) The fair value of bonds is based on prices negotiated in financial markets, plus the respective carrying amount of interests. The fair values of the remaining assets and liabilities correspond to their carrying amount. (b) Fair value hierarchy The Company adopts IFRS 7 to measure the fair value of financial instruments recorded in the balance sheet; this requires disclosure in accordance with the following fair value measurement hierarchy: Level 1 – fair value obtained through prices quoted (without adjustments) in active markets for identical assets or liabilities, such as the stock exchange; and Level 2 – fair value obtained from financial models using directly observable market data, such as discounted cash flow, when the instrument is a forward purchase/sale or a swap contract, or such as the Black-Scholes model, when the instrument has the characteristics of an option. To measure the credit risk of the parties involved in derivative instruments, Braskem uses CVA (Credit Valuation Adjustment) or DVA (Debt Valuation Adjustment) models, applied flow by flow on the mark-to-market value of each instrument. The Company adopts the ratings of the other parties for positive flows and its own rating for negative flows, both available in the market and disclosed by renowned rating agencies, as a necessary assumption to define the probability of default. 19.2 Non-derivative financial instruments and leniency agreement (Note 23.3) Fair value Book value Fair value Note Classification by category hierarchy 2018 2017 2018 2017 Cash and cash equivalents 5 Cash and banks Amortized cost 2,228,964 1,428,766 2,228,964 1,428,766 Financial investments in Brazil Fair value through profit or loss Level 2 1,754,561 1,706,784 1,754,561 1,706,784 Financial investments abroad Fair value through profit or loss Level 2 1,564,112 639,543 1,564,112 639,543 5,547,637 3,775,093 5,547,637 3,775,093 Financial investments 6 Letras financeiras do tesouro - LFT Fair value through profit or loss Level 2 2,247,272 1,816,889 2,247,272 1,816,889 Time deposit investments Amortized cost Level 2 49,630 440,616 49,630 440,616 Time deposit investments Fair value through profit or loss Level 2 15,764 15,764 Other Fair value through profit or loss Level 2 70,709 39,739 70,709 39,739 2,367,611 2,313,008 2,367,611 2,313,008 Trade accounts receivable 6 Amortized cost 3,045,463 3,244,851 3,045,463 3,244,851 Trade accounts receivable 6 Fair value through profit or loss Level 2 47,540 73,841 47,540 73,240 Trade payables 14 Amortized cost 8,378,516 5,058,796 8,378,504 5,058,796 Borrowings 15 Amortized cost Foreign currency - Bond Level 1 21,930,575 20,082,588 22,028,040 21,230,567 Foreign currency - other borrowings Level 2 2,578,147 2,344,649 2,277,069 2,228,608 Local currency Level 2 736,388 1,224,772 598,926 1,039,873 25,245,110 23,652,009 24,904,035 24,499,048 Braskem Idesa borrowings 16 Amortized cost Level 2 10,594,117 9,784,388 9,367,878 8,675,711 Debentures 17 Amortized cost Level 2 294,509 313,324 239,976 214,815 Loan ton non-controlling shareholder of Braskem Idesa Amortized cost 2,183,830 1,756,600 2,183,830 1,756,600 Leniency agreement 23.3 Amortized cost 1,842,518 2,004,590 1,842,518 2,004,590 19.3 Derivative financial instruments 19.3.1 Changes Net Net Operation characteristics (Asset)/ (Asset)/ Fair value Principal exposure Accumulated Liability Change in Financial Liability Identification Note hierarchy Derivatives OCI (equity) 2017 fair value settlement 2018 Non-hedge accounting transactions Exchange swap Level 2 Argentine peso Dollar 752 (235) 517 NCE swap Level 2 Real Dollar 5,231 5,231 5,983 (235) 5,748 Hedge accounting transactions Dollar put option 19.3.1 (a.i) Level 2 Real Dollar (40,338) (3,793) 39,932 36,139 Dollar swap 19.3.1 (a.ii) Level 2 CDI Dollar+Interests (183,808) 183,398 183,398 Interest rate swaps 19.3.1 (a.iii) Level 2 Libor Fixed rates (209,067) (25,791) (41,590) (283) (67,664) (433,213) (29,584) 181,740 (283) 151,873 Derivatives Current assets (3,793) (27,714) Non-current assets (32,666) (46,664) Current liabilities 6,875 70,305 Non-current liabilities 161,694 (29,584) 157,621 The counterparties in these contracts are constantly monitored based on the analysis of their respective ratings and Credit Default Swaps – CDS. Braskem has many bilateral risk mitigators in its derivative contracts, such as the possibility of depositing or requesting deposits of a guarantee margin from the counterparties it deems convenient. Derivative financial instruments designated for hedge accounting are presented in the balance sheet at their fair value in an asset or liability account depending on whether the fair value represents a positive or a negative balance to Braskem, respectively, and are necessarily classified as "fair value through profit and loss". All hedge financial instruments held at December 31, 2018 were contracted on Over the Counter - OTC markets with large financial counterparties under global derivative contracts in Brazil or abroad. Braskem’s Financial Policy provides for the active management and continued protection against undesired fluctuations in currencies and rates arising from its operations and financial items, with the possibility of contracting derivative instruments (swaps, NDFs, options, etc.). The other market risks are addressed on a case-by-case basis for each transaction. In general, Braskem assesses the need for hedging in the analysis of prospective transactions and seeks to customize the hedge and keeps it in place for the same period of the hedged transaction. Braskem may elect derivatives for the application of hedge accounting in accordance with IFRS 9. The hedge designation is not mandatory. In general, Braskem will elect to designate financial instruments as hedges when the application is expected to provide a significant improvement in the presentation of the offsetting effect on the changes in the hedged items. The effective portion of the changes in the fair value of hedge derivatives and of the exchange variation of financial liabilities designated and qualified as sales flow hedge is recognized in equity, under “Other comprehensive income”. These amounts are transferred to profit and loss for the periods in which the hedged item affects the financial results. The ineffective portion is recognized immediately in profit and loss as “Financial result.” When a hedge instrument matures or is sold or when it no longer meets the criteria for hedge accounting, it is prospectively discontinued and any cumulative gain or loss in equity remains in equity and is recognized in financial result when the hedged item or transaction affects profit and loss. If the hedged item or transaction is settled in advance, discontinued or is not expected to occur, the cumulative gain or loss in equity is immediately transferred to financial result. (a) Hedge accounting transactions (a.i) Dollar call and put option On December 31, 2018, Braskem held a total notional amount of put options of R$2.2 billion, with an average strike price of 3.29 R$/US$. Simultaneously, the Company also held a total notional amount of call options of R$1.6 billion, with an average strike price of R$/US$4.61. The operations have a maximum term of 24 months. Dollar-denominated future sales in Brazilian real were designated for hedge accounting, with the months of revenue recognition always coinciding with the months of the options. According to IFRS 9, the accounting standard in force as from January 1, 2018, the amount of the mark-to-market (“MtM”) adjustment, as well as the amount of the premium of the operation, is recognized as “Other comprehensive income” (“OCI”) under shareholders' equity. The fair value of the options is composed of the notional value of the operations multiplied by the sum of the intrinsic value, which refers to the amount by which the option exceeded the exercise price at the time of evaluation, and the time value of the derivative until its maturity. From the beginning of operations and their respective designations as hedge accounting, the Company began to recognize in OCI all possible premiums paid on the options purchased, in the form of hedge costs. On December 31, 2018, the amount recorded in OCI as cost of hedge is R$4.1 million. (a.ii) To remain aligned with its risk management strategy, the Company contracted foreign exchange derivative operations (“swaps”) in the aggregate amount of R$1.3 billion, with annual maturities over the following 5 years starting January 30, 2019. These operations were designated to cash flow hedge accounting, where the hedging instruments are foreign exchange derivatives and the hedged objects are highly probable future revenues in the domestic market subject to fluctuations in Brazilian real/U.S. dollar price. Accordingly, the mark-to-market adjustment of the effective portion of the hedge will be recognized under shareholders equity in the line “Other comprehensive income” and will be recognized in the financial result only upon the maturity of each installment. (a.iii) Hedge operation by Braskem Idesa related to Project finance Interest rate swap linked to Libor Identification Nominal value Hedge Maturity Fair value US$ (interest rate per year) 2018 2017 Swap Libor I to VI 1,312,892 1.9825% May-2025 (67,664) (25,791) Total 1,312,892 (67,664) (25,791) Derivatives Current assets (21,000) Non-Current assets (46,664) (32,666) Current liabilities 6,875 Total (67,664) (25,791) Braskem Idesa contracted swap operations with the purpose of offsetting part of the Libor variation arising from the financings mentioned in Note 16. This hedge operation shares the same guarantees with the Project finance. 19.4 Non-derivative financial liabilities designated to hedge accounting (a.i) Future exports in U.S. dollars On May 1, 2013, Braskem S.A. designated non-derivative financial instrument liabilities, denominated in U.S. dollars, as hedge for the flow of its highly probable future exports. Thus, the impact of exchange rates on future cash flows in dollars derived from these exports is offset by the foreign exchange variation on the designated liabilities, partly eliminating the volatility of results. The exchange rate on the date of the designation was Therefore, on December 31, 2018, exports that were designated not yet realized and not discontinued are shown below: Total nominal value US$ 2019 733,980 2020 723,999 2021 716,000 2022 719,000 2023 718,372 2024 688,854 2028 1,250,000 5,550,205 There were no changes in financial instruments designated for this hedge in the period ended December 31, 2018. The Company considers these exports in the selected period (2019/2028) as highly probable, based on the following factors: · In recent years, Braskem S.A. exported an average US$3.1 billion per year, which represents around 3 to 4 times the annual exports of the hedged exports. · Hedged exports represent between 20% and 30% of the export flows planned by the Company. The exports of the Company are not sporadic or occasional, but constitute an integral part of its strategy and of the petrochemical business, in which competition is global. On December 31, 2018, the maturities of financial liabilities designated were as follows: Total nominal value US$ 2019 733,980 2020 723,999 2021 716,000 2022 719,000 2023 718,372 2024 688,854 2028 1,250,000 5,550,205 To ensure the continuity of the hedging relationship, the Company plans to refinance and/or substitute these hedge instruments to adjust them to the schedule and value of the hedged exports. The rollover or replacement of the hedge instrument are provided for in IFRS 9. This explains the fact that liabilities designated for hedge are not necessarily equivalent to the exports designated in the year. The following table provides the balances of exchange variation recognized in the Company’s net financial income (expenses) due to the realization of exports designated for this hedge in the 12-month period ended December 31, 2018: Conversion rate Total nominal at Inception Closing rate Gross nominal value US$ R$/US$ R$/US$ value First quarter 189,325 2.0017 3.3082 247,353 Second quarter 208,405 2.0017 3.2769 265,758 Third quarter 193,190 2.0017 3.3080 252,364 Fourth quarter 196,973 2.0017 3.3080 257,307 787,893 1,022,782 The changes in foreign exchange variation and Income Tax and Social Contribution under “Other comprehensive income” of this hedge are as follows: Exchange Net variation IR and CSL effect At December 31, 2017 (6,814,142) 2,316,808 (4,497,334) Exchange variation recorded in the period on OCI / IR and CSL (3,145,857) 1,069,591 (2,076,266) Exchange variation transferred to profit or loss / IR and CSL 1,022,782 (347,746) 675,036 At December 31, 2018 (8,937,217) 3,038,653 (5,898,564) The realizations expected for 2019 will occur through the payments of financial instruments in conformity with exports made, and the exchange variation recorded in “Other comprehensive income” will be written off to the financial results. For all quarters of the year, realizations will be made at the discounted cash flow rates. The quarterly schedule of hedged exports in 2019 follows: Total nominal value US$ First quarter 150,000 Second quarter 183,495 Third quarter 183,495 Fourth quarter 216,990 733,980 (a.ii) Liabilities related to the Project finance of future sales in U.S. dollar On October 1, 2014, the subsidiary Braskem Idesa designated its liabilities in the amount of R$2,878,936 related to Project Finance, denominated in U.S. dollar, as hedge instruments to protect highly probably future sales flows. Due to the disbursements by the project's financiers in 2015, Braskem Idesa designated new amounts in April and September 2015, of US$290,545 and US$23,608, respectively, for hedge accounting. Therefore, the impact of exchange variation on future flows of sales in U.S. dollar derived from these sales in dollar will be offset by the exchange variation on the designated liabilities, partially eliminating the volatility in the results of the subsidiary. The Management of Braskem Idesa believes these future sales are highly probable, based on the following: · In Mexico, domestic sales can be made in U.S. dollar. In 2016, the company began to operate and sell products, including sales in U.S. dollar in the domestic and international markets. · The hedged flow corresponds to less than 35% of the planned revenue flow of the project over the designated period. The current amount of sales already meets the volume of designated hedge, which confirms the highly probably nature of the designated cash flow. · The financing was obtained through a Project Finance structure and will be repaid exclusively through the cash generation of the project (Note 16). Therefore, the existence of the debit is directly associated with the highly probable nature of the future sales in U.S. dollar. As of December 31, 2018, designated and unrealized sales were as follows: Nominal value US$ 2019 229,270 2020 266,690 2021 303,392 2022 253,204 2023 333,093 2024 359,559 2025 357,903 2026 309,240 2027 152,103 2028 124,654 2029 31,164 2,720,272 US$ Sales in Hedge 2017 the year discontinued 2018 Designated balance 2,930,246 (221,790) 400 2,708,856 In 2018, the maturities of designated financial liabilities were distributed as follows: Nominal value US$ 2019 228,850 2020 266,187 2021 302,816 2022 252,723 2023 332,458 2024 358,873 2025 357,221 2026 308,650 2027 150,419 2028 124,347 2029 26,312 2,708,856 The following table provides the amounts of hedge accounting discontinued in the year ended December 31, 2018 (US$11,416), which is recorded in Braskem Idesa’s shareholders’ equity under “Other comprehensive income” and will be transferred to financial income (expenses) according to the schedule of future hedged sales as they occur: Conversion rate Total nominal at Inception Closing rate Total nominal Gross nominal value US$ MXN/US$ MXN/US$ value MXN value Hedge descontinued 11,416 13.4541 17.9915 51,799 8,707 51,799 8,707 The following table provides the balances of exchange variation recognized in Braskem Idesa’s financial income (expenses) due to the realization of sales designated for this hedge in the year ended December 31, 2018: Conversion rate Total nominal at Inception Closing rate Total nominal Gross nominal value US$ MXN/US$ MXN/US$ value MXN value First quarter 53,889 13.6649 18.6631 269,348 46,934 Second quarter 55,136 13.6560 19.4484 319,370 59,371 Third quarter 56,383 13.6536 18.8320 291,974 60,810 Fourth quarter 56,382 13.6537 20.2473 371,757 69,455 221,790 1,252,449 236,570 The changes in foreign exchange variation and Income Tax and Social Contribution under “Other comprehensive income” are as follows: Exchange Net variation IR effect At December 31, 2017 (3,545,639) 1,064,426 (2,481,213) Exchange variation recorded in the period on OCI / IR 16,681 (5,004) 11,677 Exchange variation transferred to profit or loss / IR 236,570 (70,971) 165,599 At December 31, 2018 (3,292,388) 988,451 (2,303,937) Effectiveness tests were conducted as set forth in IFRS 9 and all operations were deemed effective in reducing the dispersion of revenue from sales designated for hedge, when evaluated in Pesos. The realizations expected for 2019 will occur in accordance with the payments under the project finance, and the exchange variation recorded in “Other comprehensive income” will be written off to the financial results. Below is the quarterly schedule of hedged sales in U.S. dollars in 2019: Nominal value US$ First quarter 56,382 Second quarter 56,383 Third quarter 57,629 Fourth quarter 58,876 229,270 19.5 Credit quality of financial assets (a) Trade accounts receivable Virtually none of Braskem’s clients have risk ratings assigned by credit rating agencies. For this reason, Braskem developed its own credit rating system for all accounts receivable from clients in Brazil and abroad. On December 31, 2018, the credit ratings for the domestic and foreign market were as follows: (%) 2018 1 Minimum risk 67.50 2 Low risk 18.60 3 Moderate risk 7.61 4 High risk 5.02 5 Very high risk (i) 1.27 On December 31, 2017, the credit ratings for the domestic market were as follows: (%) 2017 1 Minimum risk 18.84 2 Low risk 50.84 3 Moderate risk 13.33 4 High risk 13.40 5 Very high risk (i) 3.59 (i) Most clients in this group are inactive and the respective accounts are in the process of collection actions in the courts. Clients in this group that are still active buy from Braskem and pay in advance. Default indicators: Last 12 months Domestic market Export market December 31, 2018 0.08% 0.45% December 31, 2017 0.08% 0.19% December 31, 2016 0.18% 0.04% This calculation considers the amount of accounts receivables overdue more than 5 days for the domestic market and 30 days for the international market, divided by consolidated gross revenue in the last 12 months. (b) Other financial assets In order to determine the credit ratings of counterparties of financial assets classified under cash and cash equivalents and financial investments, Braskem uses the risk rating of agencies Standard & Poor’s, Moody’s and Fitch Ratings, within the limits established in its financial policy approved by the Board of Directors. 2018 2017 Financial assets with risk assessment AAA 4,294,100 3,569,392 AA+ 1,175,098 27,094 AA 79,136 8,047 AA- 1,076 209,389 A+ 1,103,647 1,465,107 A 165,899 349,823 A- 169,580 BBB+ 917,541 453,367 BB+ 252 BB- 29 7,906,358 6,082,219 Financial assets without risk assessment Other financial assets with no risk assessment (i) 8,890 5,882 8,890 5,882 Total 7,915,248 6,088,101 (i) Investments approved by the Management of the Company, in accordance with the financial policy. 19.6 Sensitivity analysis Financial instruments, including derivatives, may be subject to changes in their fair value as a result of the variation in commodity prices, foreign exchange rates, interest rates, shares and share indexes, price indexes and other variables. The sensitivity of the derivative and non-derivative financial instruments to these variables are presented below: (a) Selection of risks On December 31, 2018, the main risks that can affect the value of Braskem’s financial instruments are: · Brazilian U.S. dollar/real exchange rate; · Mexican peso/Brazilian real exchange rate; · Euro/Brazilian real exchange rate; · Libor floating interest rate; · Selic interest rate; · CDI interest rate; · TJLP interest rate; and · IPCA interest rate. For the purposes of the risk sensitivity analysis, Braskem presents the exposures to currencies as if they were independent, that is, without reflecting in the exposure to a foreign exchange rate the risks of the variation in other foreign exchange rates that could be directly influenced by it. (b) Value at risk The value at risk of the derivatives held by Braskem which is defined as the loss that could result in one month as from December 31, 2018, with a probability of 5%, and under normal market conditions, was estimated by the Company at US$8,279 for put options and call options (Note 19.3.1 (a.i)), US$38,573 for the swap of Libor related to Braskem Idesa project, US$27,756 for Dollar swap (Note 19.3.1(a.ii)) and US$8,503 for NCE swap. (c) Selection of scenarios (c.1) Probable scenario The Focus The probable scenario for the TJLP is an increase of 0.63 percentage point from the current rate of 7.06%, i.e., considering the same pace of decrease in the Selic basic interest rate. The Market Readout does not publish forecasts for the Libor interest rate. Therefore, to determine the probable scenario, Braskem considered a 5% increase. For adverse scenarios, Braskem considered 25% and 50% increases on current market levels. (c.2) Possible and extreme adverse scenario The sensitivity values in the table below are the changes in the value of the financial instruments in each scenario. Gain (losses) Possible adverse Extreme adverse Instrument / Sensitivity Probable (25%) (50%) Brazilian real/U.S. dollar exchange rate Bonds 418,995 (5,426,211) (10,852,422) Braskem Idesa borrowings 204,511 (2,648,529) (5,297,058) Export prepayments 15,647 (202,635) (405,271) Investments 11,972 (155,040) (310,080) Sace 22,150 (286,849) (573,699) Dollar put option 31,532 (708,357) (2,000,912) Dollar swap 38,308 (353,647) (717,505) Swap NCE 7,865 (101,872) (203,747) Financial investments abroad 70,689 (915,461) (1,830,922) Libor floating interest rate Export prepayments (5,133) (25,665) (51,330) Swaps 13,747 67,773 133,197 Braskem Idesa borrowings (82,386) (411,928) (823,857) CDI interest rate Export credit notes (884) (21,986) (58,762) Debentures 9,416 232 (10,035) Financial investments in local currency 26,228 67,665 135,371 IPCA interest rate Debentures (5,879) (21,556) (44,125) TJLP interest rate FINAME (5) (15) (31) |
Taxes payable
Taxes payable | 12 Months Ended |
Dec. 31, 2018 | |
Taxes Payable | |
Taxes payable | 2018 2017 Brazil IPI 64,672 60,917 IR and CSL 57,664 405,567 ICMS 239,126 257,720 PIS and COFINS 145,090 82,140 Other 36,454 52,926 Other countries IR 11,604 66,059 Value-added tax 7,482 22,242 Other 25,085 Total 587,177 947,571 Current liabilities 501,273 894,769 Non-current liabilities 85,904 52,802 Total 587,177 947,571 |
Income tax (''IR'') and social
Income tax (''IR'') and social contribution (''CSL'') | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Ir And Social Contribution | |
Income tax (''IR'') and social contribution (''CSL'') | 21.1 Reconciliation of the effects of income tax and social contribution on profit and loss 2018 2017 2016 Income before IR and CSL and after discontinued operations 3,604,736 5,264,577 (140,010) IR and CSL at the rate of 34% (1,225,610) (1,789,956) 47,603 Permanent adjustments to the IR and CSL calculation basis IR and CSL on equity in results of investees (302) 2,201 10,227 IR and CSL accrued in previous years (46,460) Deferred tax losses and negative base 39,092 Tax benefits (Sudene and PAT) 87,186 Difference of rate applicable to each country (i) 468,129 250,130 81,638 Fine in leniency agreement (117,140) (692,299) Other permanent adjustments 21,232 170,805 (16,755) Effect of IR and CSL on results of operations (736,551) (1,357,682) (616,046) Breakdown of IR and CSL: Current IR and CSL (509,774) (869,493) (898,845) Deferred IR and CSL (226,777) (488,189) 282,799 Total (736,551) (1,357,682) (616,046) (i) Includes the impact from the difference between IR/CSL tax rate in Brazil (34%) used for the preparation of this note and the tax rates in countries where the subsidiaries abroad are located, as follows: Official rate - % Headquarters (Country) 2018 Braskem Alemanha Germany 31.18 Braskem America e Braskem America Finance (i) USA 21.00 Braskem Argentina Argentina 30.00 Braskem Chile Chile 27.00 Braskem Holanda, Braskem Holanda Finance and Braskem Holanda Inc Netherlands 25.00 Braskem Idesa, Braskem Idesa Serviços, Braskem México Braskem México Serviços and Braskem México Proyectos Mexico 30.00 (i) In fiscal year 2018, the rate was changed from 35.00% to 21.00%. 21.2 Deferred income tax and social contribution The income tax (“IR”) and social contribution (“CSL”) recorded in the year are determined on the current and deferred tax basis. These taxes are calculated on the basis of the tax laws enacted at the balance sheet date in the countries where the Company operates and are recognized in the statement of profit or loss, except to the extent they relate to items directly recorded in equity. (a) Movement in deferred tax balance Assets As of December 31, 2016 Impact on the P&L Impact on the equity Cetrel consolidated As of December 31, 2017 Impact on the P&L Impact on the equity As of December 31, 2018 Tax losses (IR) and negative base (CSL) 2,420,376 (590,037) 48,470 1,878,809 142,769 2,021,578 Goodwill amortized 4,624 (708) 55,419 59,335 (20,053) 39,282 Exchange variations 464,947 (76,654) 388,293 (348,334) 39,959 Temporary adjustments 717,868 (564,239) (7,946) 9,857 155,540 646,630 802,170 Business combination 191,250 (7,465) 183,785 (24,213) 159,572 Tax credits 176,290 176,290 3,799,065 (1,239,103) (7,946) 113,746 2,665,762 573,089 3,238,851 Liabilities Amortization of goodwill based on future profitability 767,277 (54,404) 712,873 10,463 723,336 Tax depreciation 867,922 92,280 960,202 49,710 1,009,912 Temporary adjustments 316,991 (85,169) 231,822 44,878 276,700 Business combination 198,381 (197,079) 8,362 9,664 (8,362) 1,302 Additional indexation PP&E 118,202 (51,130) 67,072 (9,905) 57,167 Hedge accounting (606,877) 606,877 700,351 (700,351) Deferred on health plans 15,269 (15,269) Amortization of fair value adjustments on the assets from the acquisiton of Quattor 263,808 255,815 519,623 (75,548) 444,075 Long term incentive plan - LTI (2,072) 2,072 Other 123,892 (104,350) (15,269) 4,273 90,351 (90,841) 3,783 2,656,473 (750,914) 591,608 8,362 2,505,529 799,866 (789,120) 2,516,275 Net 1,142,592 (488,189) (599,554) 105,384 160,233 (226,777) 789,120 722,576 Presentation in the balance sheet: Non-current assets 1,653,115 1,165,726 1,104,158 (-) Non-current liabilities 510,523 1,005,493 381,582 (b) Offset for the purpose of presentation in the balance sheet 2018 Headquarters IR and CSL (Country) Tax calculation Compensation Balance Assets Braskem S.A. Brazil 2,126,658 (2,126,658) Braskem Argentina Argentina 11,337 11,337 Braskem Alemanha Germany 11,251 11,251 Braskem Chile Chile 308 (268) 40 Braskem Idesa Mexico 980,762 980,762 Braskem México Serviços Mexico 9,409 9,409 Cetrel Brazil 26,478 (6,645) 19,833 DAC Brazil 72,648 (1,122) 71,526 3,238,851 (2,134,693) 1,104,158 Liabilities Braskem S.A Brazil 2,239,727 (2,126,658) 113,069 Braskem America USA 268,513 268,513 Braskem Petroquímica Chile Chile 268 (268) Cetrel Brazil 6,645 (6,645) DAC Brazil 1,122 (1,122) 2,516,275 (2,134,693) 381,582 2017 Headquarters IR and CSL (Country) Tax calculation Compesation Balance Assets Braskem S.A. Brazil 1,491,423 (1,491,423) Braskem Argentina Argentina 3,398 3,398 Braskem Alemanha Germany 19,353 19,353 Braskem Chile Chile 251 (251) Braskem Idesa Mexico 1,036,257 1,036,257 Braskem México Serviços Mexico 1,334 1,334 Cetrel Brazil 29,268 (7,454) 21,814 DAC Brazil 84,478 (908) 83,570 2,665,762 (1,500,036) 1,165,726 Liabilities Braskem S.A Brazil 2,272,775 (1,491,423) 781,352 Braskem America USA 223,635 223,635 Braskem Chile Chile 757 (251) 506 Cetrel Brazil 7,454 (7,454) DAC Brazil 908 (908) 2,505,529 (1,500,036) 1,005,493 (c) Realization of deferred income tax and social contribution Balance at Realization December 31, 2024 Assets Note 2018 2019 2020 2021 2022 2023 thereafter Tax losses (IR) and negative base (CSL) (i) 2,021,578 95,076 122,790 307,069 505,880 990,763 Goodwill amortized 39,282 3,654 3,654 3,654 3,654 3,655 21,011 Exchange variations (ii) 39,959 39,959 Temporary adjustments (iii) 802,170 135,622 72,550 33,556 12,882 11,331 536,229 Business combination (iv) 159,572 33,666 33,666 33,666 29,287 29,287 Tax credits (v) 176,290 176,290 Total assets 3,238,851 444,308 232,660 377,945 551,703 1,035,036 597,199 Liabilities Amortization of goodwill based on future profitability (vi) 723,336 717,529 Tax depreciation (vii) 1,009,912 213,070 326,919 445,962 23,961 Temporary differences (viii) 276,700 65,560 23,374 10,811 4,150 3,651 169,154 Business combination (ix) 1,302 187 187 187 187 187 6,174 Additional indexation PP&E (x) 57,167 4,573 4,573 4,573 4,573 4,573 34,302 Amortization of fair value adjustments on the assets from the acquisiton of Quattor 444,075 35,526 35,526 35,526 35,526 35,526 266,445 Other 3,783 3,783 Total liabilities 2,516,275 318,916 390,579 497,059 68,397 43,937 1,197,387 Net 722,576 125,392 (157,919) (119,114) 483,306 991,099 (600,188) Basis for constitution and realization: (i) In Brazil, the use of tax loss has limit of 30% to the amount of taxable income for the year, but the balance does not expire. In Mexico there is no limit for the year, however, the tax loss expires in 10 years. (ii) In Brazil, the Company opted to tax exchange variation of assets and liabilities denominated in foreign currency under the cash method. Thus, this variation will be realized as assets and liabilities are received/paid. For accounting purposes, exchange variation is recognized under the accrual basis, reason why it is recorded deferred IR and CSL. (iii) Accounting expenses not yet deductible for calculating income tax and social contribution, whose recognition for tax purposes occurs in subsequent periods. (iv) Refers to: tax-related goodwill, and contingencies recognized from business combinations. Tax realization of goodwill will occur upon the merger of the investments and contingencies arising from write-offs due to the settlement or reversal of the processes involved. (v) Tax credits arising from balance of tax paid on profit abroad. (vi) Goodwill for the future profitability of the merged companies not amortized since the adoption of Law 11,638/07. Tax realization is associated with the write-off of goodwill due to impairment or upon divestment. (vii) For calculation of IR and CSL, assets are depreciated at rates higher than those used for accounting purposes. As tax depreciation is exhausted, these deferred IR and CSL start to be realized. (viii) Accounting provisions whose taxation will occur in subsequent periods. (ix) Fair value adjustments on property, plant and equipment and intangible assets identified in business combinations, whose tax realization is based on the depreciation and amortization of these assets. (x) Additional adjustment of property, plant and equipment, whose tax realization is based on the depreciation of assets. Annually, the Company revises its projection of taxable income based on its Business Plan (Note 3.1). If this projection indicates that the taxable income will not be sufficient to absorb the deferred taxes, the amount corresponding to portion of the asset that will not be recovered is written off. |
Sundry provisions
Sundry provisions | 12 Months Ended |
Dec. 31, 2018 | |
Sundry Provisions | |
Sundry provisions | Note 2018 2017 Provision for customers rebates (a) 88,026 87,913 Provision for recovery of environmental damages (b) 307,546 300,249 Other 28,970 25,510 Total 424,542 413,672 Current liabilities 191,536 178,676 Non-current liabilities 233,006 234,996 Total 424,542 413,672 (a) Client bonus Some sales agreements of Braskem provide for a rebate, in products, should some sales volumes be achieved within the year, six-month period or three-month period, depending on the agreement. The bonus is recognized monthly in a provision, assuming that the minimum contractual amount will be achieved. As it is recognized based on contracts, the provision is not subject to significant uncertainties with respect to their amount or settlement. (b) Recovery of environmental damages Braskem has a provision for future expenses for the recovery of environmental damages in some of its industrial plants. The amount provisioned corresponds to the best estimate of the expenses required to repair the damages. (c) Changes in provisions Recovery of environmental Bonus damage Other Total December 31, 2017 87,913 300,249 25,510 413,672 Additions, inflation adjustments and exchange variation, net 104,431 89,395 8,593 202,419 Write-offs through usage and payments (104,318) (82,098) (5,133) (191,549) December 31, 2018 88,026 307,546 28,970 424,542 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Contingencies Abstract | |
Contingencies | Braskem is a defendant in lawsuits and administrative proceedings arising from the normal course of its business. These claims are of a tax, labor and social security, civil and corporate nature. Proceedings assessed as having a probable chance of loss are provisioned for, as described in Note 3.5. Proceedings assessed as having a possible chance of loss are not provisioned for, except in relevant cases involving business combinations. Any changes in the court’s understanding of the position could cause future impacts on the financial statements of the Company due to such proceedings. 23.1 Claims with probable chance of loss and claims arising from business combinations with possible loss 2018 2017 Labor claims (a) 177,751 250,075 Tax claims (b) Normal operations IR and CSL 20,717 17,313 PIS and COFINS (i) 156,796 155,681 ICMS (ii) 64,468 76,342 Other tax claims 23,237 13,117 265,218 262,453 Business Combination IR and CSL 1,500 50,051 PIS and COFINS (iii) 59,739 56,135 ICMS - interstate purchases (iv) 280,622 263,538 341,861 369,724 Corporate claims (c) 111,049 135,779 Civil claims and other 69,438 74,614 965,317 1,092,645 (a) Labor claims The provision on December 31, 2018 is related to 477 labor claims, including occupational health and security cases (599 in 2017). The Company’s legal advisors estimate that the term for the termination of these types of claims in Brazil exceeds five years. The estimates related to the outcome of proceedings and the possibility of future disbursement may change in view of new decisions in higher courts. (b) Tax claims On December 31, 2018, the main claims are the following: (i) Non-cumulative PIS and COFINS The Company is charged amounts arising from the compensation of Non-Cumulative PIS and COFINS tax credits that were not approved by the Federal Revenue Service of Brazil (“RFB”) in Offsetting Statements (“DCOMPs”), with credits in amounts that exceeded those declared in the respective Statement of Calculation of Social Contributions (“DACONs”). In October 2017, through the federal tax amnesty program (PERT), the items related to non-acceptance of the credits were settled, due to the following reasons: (i) differences between the amounts reported in the DACONs and those in the electronic files of tax invoices; (ii) amounts not recorded in the interim balance sheets, acquisitions not taxed for contributions, recording of a credit on a portion of IPI, failure to submit tax documents; and (iii) nonpayment of amounts stated as due in tax documents. Said amounts were provisioned for. On December 31, 2018, the balance of this provision was R$154,673. The Company’s external legal advisors, after considering the precedents on the matters at the Administrative Council of Tax Appeals (“CARF”), assessed that the disputes related to such matters have a probable likelihood of loss and estimated the conclusion of administrative procedures in 2020. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level. (ii) ICMS – Decree 38,394/2000 The main claims provisioned in 2018 is related to the tax deficiency notice received by the Company in 2017 from the Tax Authority of the State of Alagoas, for the administrative collection by an ICMS tax that allegedly was paid below the amount due, in the period from August 2012 to April 2016, in accordance with Article 9 of Decree 38.394/2000. On December 31, 2018, the balance of this provision was R$45,027. The Company’s external legal advisors, considering the behavior of the administrative bodies judging the case, assessed that the disputes related to the highlighted matters have a probable likelihood of loss and estimated the conclusion of administrative proceedings in 2021. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level. (iii) PIS and COFINS The Company is assessed for the payment of these taxes in many claims, such as: · Insufficient payment of COFINS for the period from March 1999 to December 2000, from February 2001 to March 2002, from May to July 2002 and September 2002 due to alleged calculation errors, and non-compliance with the widening the tax calculation base and increasing the contribution rate envisaged in Law 9,718/98; · Offset of the COFINS dues relating to September and October 1999 using the credit resulting from the addition of 1% to the COFINS rate; · Rejection of the offset of PIS and COFINS dues relating to the period from February to April 2002 using the PIS credits under Decree-Laws 2,445 and 2,449, calculated between June 1990 and October 1995, under the argument that the time period for using said credits had expired; and · Alleged non-taxation of revenue from foreign exchange variations, determined as a result of successive reductions in the capital of the associated company. The Company’s external advisors assessed that the disputes related to the highlighted matters have a possible likelihood of loss and estimated the conclusion of administrative proceedings in 2020. Guarantees were offered for these claims in the form of bank guarantee and finished products, which, together, cover the amount of court claims. (iv) ICMS - interstate purchases In 2009, the merged company Braskem Qpar was assessed by the Finance Department of the State of São Paulo for the payment, at the administrative level, of ICMS in view of allegedly committing the following violations: · Undue use of ICMS tax credits (i) in the amount of R$53,478, in the periods from February 2004 to August 2005, November 2005 to February 2006, and September 2006 to January 2008, due to the recording of credits indicated on the invoices for the sale of “acrylonitrile,” issued by Acrinor Acrilonitrila do Nordeste S/A; (ii) in the amount of R$1,581, in the period from December 2004 to August 2005, arising from the undue recording of credits on invoices for the sale of methyl acrylate, issued by Proquigel Química S/A; and (iii) in the amount of R$3,105, in the period from August 2004 to November 2005, arising from the undue recording of credits in invoices for the sale of methyl methacrylate, issued by Proquigel Química S/A, since the products were to be exported, and therefore were exempt from payment of ICMS tax; · The fine for the abovementioned tax offense corresponds to 100% of the principal value recorded, as per Article 527, item II, sub-item “j” jointly with paragraphs 1 and 10 of RICMS/SP; · Fine in the amount of 30% on R$480,389, which corresponds to the sum of the amounts indicated in tax documents whose outflow of goods was not identified by the tax authority, entered based on the provisions of Article 527, item IV, sub-item “b” jointly with paragraphs 1 and 10 of RICMS/SP; and · Fine due to lack of presentation of tax documents requested under a specific deficiency notice, as per Article 527, item IV, sub-item “j” jointly with paragraphs 8 and 10 of RICMS/SP. Discussions in the administrative sphere were ended in 2016, with the Company proposing lawsuits. Due to the favorable injunctions granted to the Company: (i) in one of the claims, the São Paulo Treasury Department rectified the amount of the debt to apply interest for late payment and inflation adjustment limited to the SELIC basic interest rate, which resulted in the debit being reduced by 20% and (ii) in the other claim, the tax liability was suspended. The Company’s external advisors have assessed that the disputes related to the highlighted matters remain with a possible likelihood of loss and estimate the conclusion of legal proceedings in 2025. A performance bond was offered as a guarantee for these claims. (c) Corporate claims On December 31, 2018, the main claim is related to an ordinary collection claim combined with a request for damages for losses, requesting the payment of dividends and a share bonus arising from the class "A" preferred shares of the terminated company Salgema Indústrias Químicas S.A. Once the claim was granted, the amount effectively owed by Braskem began to be calculated. During this phase, the judge recognized that dividends and bonus related to fiscal years prior to 1987 had become time-barred and were no longer owed by Braskem. However, the Alagoas State Court of Appeals reviewed the decision and considered that amounts prior to such period also were owed. Against the decision, Braskem filed a Special Appeal with the Superior Court of Justice (“STJ”), which was partially granted, so that the possibility that the statute of limitation will be recognized in a procedure of liquidation of the award will be submitted to the STJ. On December 31, 2018, the balance of this provision is R$59,577 and there is no guarantee related to this claim. (d) Changes in claims with probable chance of loss Corporate Civil claims Labor claims Tax claims claims and other Total December 31, 2017 250,075 632,177 135,779 74,614 1,092,645 Additions, inflation adjustments and exchange variation 80,685 77,236 8,676 5,001 171,598 Payments (70,553) (40,768) (31,680) (173) (143,174) Reversals (82,456) (61,566) (1,726) (10,004) (155,752) December 31, 2018 177,751 607,079 111,049 69,438 965,317 23.2 Claims with possible chance of loss 2018 2017 Tax claims 6,082,336 6,048,462 Labor claims 992,205 812,400 Civil claims 579,145 693,188 Social security tax claims 125,338 91,824 Other lawsuits 535,802 285,944 Total 8,314,826 7,931,818 (a) Civil (i) Excess weight Public-Interest Civil Action filed by the Federal Prosecution Office in Brasilia, with the objective of holding the company liable for damages caused to federal roads by trucks carrying excess weight. The action claims damages to the country for material damages and collective pain and suffering, in the amount of R$71 million, on December 31, 2018. The action was denied in the lower court. (ii) Caustic soda transportation The Company is the defendant in civil lawsuits filed by the owner of a former distributor of caustic soda and by the shipping company that provided services to this former distributor, which, at December 31, 2018, totaled R$99.2 million. The claimants seek indemnity for damages related to the alleged non-performance of the distribution agreement by the Company. Management's evaluation, supported by the opinion of its external legal advisors who are responsible for the cases, is that the lawsuits will possibly be dismissed within a period of 8 years. No judicial deposit or other form of guarantee was accrued for these lawsuits. (iii) Resale of solvents In January 2017, the Company became defendant in a civil lawsuit filed by former reseller of solvents, claiming alleged breach of a tacit distribution agreement. On December 31, 2018, the damages claimed in the lawsuit amounted to R$185.6 million. Based on the opinion of external legal counsel accompanying the case, the Management believes that the lawsuit has a possible risk of loss within an eight-year period. No judicial deposit or other form of security was made for these suits. (iv) Hashimoto Public-Interest Civil Action The Public-Interest Civil Action was filed in June 2018 by the São Paulo State Public Prosecutor’s Office against the Company and other firms that operate in the Capuava Petrochemical Complex, claiming the reparation and/or remediation of environmental damages supposedly arising from the emission of pollutants into the air, as well as the joint judgement of companies that comprise said complex seeking environmental moral damages in the amount of R$107.6 million. Based on the opinion of the external legal counsel handling the case, the Management believes that the lawsuit possibly will be dismissed within a period of eight years. No judicial deposit or other form of security was accrued for the case. (v) Redress proceeding Compensation action filed by the insurer of a client of the Company. The insurer seeks, in return, the reimbursement of the amount paid to the customer due to the insurance contract entered into with the client, whose amount up to December 31, 2018 is R$73.8 million. According to the insurer, the losses incurred by the customer, for which it was reimbursed, would have been caused by the supply of off specification products by Braskem. The Management's evaluation, based on the opinion of the external legal counsel responsible for conducting the cases, is that the lawsuits may be dismissed in a period of up to 8 years. There is no judicial deposit or other type of guarantee for the process. (b) Tax (i) PIS and COFINS: taxation of tax losses and reductions in debits in connection with the installment payment program under MP 470/09 The Company was assessed for not recording as taxable the amounts of the credits from tax losses and social contribution tax loss carryforwards used to settle tax debits paid in installments under Provisional Presidential Decree 470/09. In the specific case of PIS and COFINS taxes, the assessment also includes the reductions applied to fines and interest arising from the adoption of the installment payment plan. Said tax credits and reductions of debits were not taxed, given the understanding of the Company that they did not represent taxable income. In November 2018, the tax-deficiency notice related to IR/CSL was fully denied in a final and unappealed decision issued by CARF. On December 31, 2018, the inflation-adjusted amount of taxes recorded and tax effects of disallowances of income tax losses and social contribution tax loss carryforwards through said tax deficiency notices is R$842 million. The Company’s external legal advisors estimate that the administrative proceeding should be concluded by 2020. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level. (ii) Income Tax (“IR”) and Social Contribution (“CSL”) – Charges with goodwill amortization The Company was served by the Brazilian Federal Revenue Service (“RFB”) for deducting amortization charges, from 2007 to 2013, relating to goodwill originated from acquisitions of shareholding interests in 2002. In that year, several business groups divested their petrochemical assets, which were consolidated to enable the consequent foundation of Braskem. In May 2018, one of the proceedings was deemed valid in a final and unappealed decision issued by CARF, which reduced liabilities by R$166 million. On December 31, 2018, the updated value of the taxes recorded in said tax deficiency notices amounted to R$1.2 billion. The assessment of risk in these claims is based on the following: (i) the equity interests were acquired with effective payment, business purpose and the participation of independent parties; and (ii) the real economic nature of the transactions that resulted in the recording of interest and exchange variation expenses. The Company’s external legal advisors estimate that the administrative proceeding should be concluded by 2022. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed. (iii) Non-cumulative PIS and COFINS taxes The Company received a deficiency notice from the RFB due to the use of non-cumulative PIS and COFINS tax credits in the acquisition of certain goods and services consumed in its production process. The matters whose chance of loss is deemed as possible are mainly related to the following: (i) effluent treatment services; (ii) charges on transmission of electricity; (iii) freight for storage of finished products; and (iv) extemporaneous credits from acquisitions of property, plant and equipment. These matters have already been contested at the administrative level and comprise the period from 2006 to 2011. On December 31, 2018, the amount under discussion of these notices is R$1.2 billion. The Company’s external legal advisors estimate that: (i) the administrative proceedings should be concluded by 2022; and (ii) in the event of an adverse ruling for the Company, which is not expected, these contingencies could be settled for up to 50% of the amounts in dispute. These estimates are based on the probability of loss of the Company's defense thesis, based on previous administrative and court precedents. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level. (iv) IR and CSL – Unlimited offsetting In December 2009, December 2013 and March 2017, the Company received tax deficiency notices claiming that the methodology used to offset tax losses and tax loss carryforwards that failed to observe the limit of 30% of the Taxable Profit and Social Contribution calculation base when offsetting such liabilities with Income Tax and Social Contribution liabilities in merger operations, respectively, in November 2007, September 2008 and August 2013. On December 31, 2018, the restated value of the taxes recorded amounted to R$348 million. The Company’s external legal advisors estimate that the administrative proceedings should be concluded by 2020. The only proceeding currently under litigation is expected to be concluded in 2027. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level and the only one being disputed in court has had its payment suspended by a preliminary injunction, confirmed by a court decision. (v) ICMS The Company is involved in many ICMS collection claims drawn up in the States of São Paulo, Rio de Janeiro, Rio Grande do Sul, Bahia and Alagoas. On December 31, 2018, the adjusted amounts of these claims total R$644 million and the claims include the following matters: · ICMS credit on the acquisition of assets that are considered by the Revenue Services as being of use and consumption. The Revenue Service understands that the asset has to be a physically integral part of the final product to give rise to a credit. Most of the inputs questioned do not physically compose the final product. However, the Judicial branch has a precedent that says that the input must be an integral part of the product or be consumed in the production process. · ICMS credit arising from the acquisition of assets to be used in property, plant and equipment, which is considered by the Revenue Services as not being related to the production activity, such as laboratory equipment, material for the construction of warehouses, security equipment, etc. · internal transfer of finished products for an amount lower than the production cost; · omission of the entry or shipment of goods based on physical count of inventories; · lack of evidence that the Company exported goods so that the shipment of the goods is presumably taxed for the domestic market; · non-payment of ICMS on the sale of products subject to tax substitution and credit from acquisitions of products subject to tax substitution; · fines for the failure to register invoices; · nonpayment of ICMS tax on charges related to the use of the electricity transmission system in operations conducted in the Free Market (ACL) of the Electric Power Trading Chamber (CCEE); and · usage of ICMS tax base below the level envisaged in legislation for internal transfers to another unit in the State of Alagoas of DCE (dichloroethane), between January 2013 and May 2016, which is a product that is not subject to deferral in such transactions. The payment represents 30% of the total contingency. The Company’s legal advisors estimate that: (i) these judicial proceedings are expected to be terminated in 2023, and (ii) in the event of an unfavorable decision to the Company, which is not expected, these contingencies could be settled for up to 50% of the amounts in dispute. This estimate is based on the probability of loss of the Company’s defense theory taking into consideration the case law at the administrative and judicial levels. The Company offered assets for pledge in the amount of R$62 million, supporting exclusively the amounts involved in the lawsuits. (vi) IOF The Company is a party to claims for the collection of IOF tax debits in administrative proceedings and lawsuits, which claim: (i) non-payment of IOF on operations relating to Advances for Future Capital Increase (AFAC) and checking accounts conducted by the merged companies Quattor Participações S.A. and Quattor Química S.A., which were considered loans by tax authorities; and (ii) requirement to pay IOF/credit on international fund transfers between the Company and CPN Incorporated through a checking account contract and single cash management related to the period from May 2002 to April 2004. The current value of these notices on December 31, 2018, is R$175 million. The Company’s external legal advisors estimate that the claims in the judicial sphere will be concluded by 2022. The Company offered a guarantee of R$59 million, which supports the amount involved exclusively in the claims. (vii) PIS and COFINS sundry The Company is involved in collection actions related to PIS and COFINS assessments in the administrative and judicial courts, which discuss the alleged undue offsetting of credits arising from other administrative proceedings and lawsuits, including: (i) Income Tax prepayments; (ii) FINSOCIAL; (iii) tax on net income (ILL); (iv) PIS-Decrees; and (v) the COFINS tax arising from the undue payment or payment in excess. The current value of these notices on December 31, 2018, is R$144 million. The Company’s external legal advisors estimate that: (i) these judicial proceedings are expected to be terminated in 2022; and (ii) in the event of an unfavorable decision to the Company, which is not expected, these contingencies could be settled for up to 50% of the amounts in dispute. This estimate is based on the probability of loss of the Company’s defense theory taking into consideration the case law at the administrative and judicial levels. The Company offered assets in guarantee, in the amount of R$144 million, that cover the entire amount of the claims. (viii) IRRF, IR and CSL – Commission expenses In December 2017, the Company received a tax deficiency notice from the RFB arising from: (i) the disallowance of commission expenses paid by Braskem in 2011; (ii) the disallowance of commission expenses paid by Braskem Inc. in 2013 and 2014; (iii) lack of payment of withholding income tax (IRRF) on the payments referred to in the previous item; and (iv) the disallowance of advertising expenses incurred in 2013. On December 31, 2018, the restated amount of taxes and tax effects from disallowances of income tax losses and social contribution tax loss carryforwards through said tax deficiency notice is R$122 million. The assessment of success in this claim is based on the following: (i) the expenses incurred in 2011 already are subject to the statute of limitations. Furthermore, the tax credit recognized by the Tax Authority considered the sum of the disallowances disputed in other administrative proceedings that are pending a final decision, which do not belong in the claim in question; (ii) the expenses incurred by Braskem INC already were paid by the Company itself, which led only to the reduction of its tax loss backlog, without the need to pay additional taxes; (iii) the IRRF claimed by the Tax Authority aims to reach a taxpayer located abroad, which as such is not subject to Brazilian tax law; and (iv) the disallowed advertising expenses are related to the Company’s business activities. The Company’s external legal advisors estimate that the administrative proceeding should be concluded in 2022. There are no judicial deposits or any other type of guarantee for this procedure, since it is still being discussed at the administrative level. (ix) IR and CSL – Exchange variation on naphtha imports In December 2017, the Company received a tax deficiency notice related to the disallowance of exchange variation expenses between the due date of commercial invoices and the effective payment of obligations related to naphtha imports. The Company disallowed expenses in calendar year 2012, since they were considered unnecessary, which caused adjustments in the tax loss and in social contribution tax loss carryforwards. On December 31, 2018, the restated value of this deficiency notice amounted to R$104 million. The Company’s external legal advisors estimate that the administrative proceeding should be concluded in 2022. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level. (x) Isolated fine – failure to ratify DCOMPS In 2016 through 2018, the Company was notified of isolated fines corresponding to 50% of non-cumulative COFINS tax credits: i) non-cumulative PIS/COFINS; ii) Negative Balance of IR/CSL; iii) REINTEGRA and iv) other credits, which were offset with federal taxes and not approved by the RFB. The matter is assessed as having a possible chance of loss due to favorable court precedents on the matter. On December 31, 2018, the restated value of these deficiency notices amounted to R$215 million. The Company’s external legal counsels estimate that the conclusion in the administrative level will occur in 2022. No deposit or other form of security was accrued for most of these claims, as they are still being discussed administratively. (xi) IR/CSL – Negative Balance – Offset The Company claims, at the administrative level, that RFB denies Offset Statements seeking to settle federal taxes with credits arising from negative balance of IR and CSL. On December 31, 2018, the restated value of the taxes whose offset was not approved amounted to R$182 million. The Company’s external legal advisors estimate that the administrative proceeding should be concluded by 2022. There are no deposits or any other type of guarantee for this proceeding, since it is still being disputed at the administrative level. (xii) IPI and II – Customs difference In October 2002, the merged company Ipiranga Petroquímica received a tax-deficiency notice from RFB for contracting two different companies, one to provide parts and technology and the other to provide specialized labor for technical support, on the occasion of the construction of an industrial plant in Rio Grande do Sul, which, according to RFB, was allegedly conducted only to reduce the price of parts and technology used and, consequently, decrease the IPI and II payable. On December 31, 2018, the restated value of the taxes recorded amounted to R$68 million. The Company’s external legal advisors estimate that the administrative proceeding should be concluded by 2022. There are no judicial deposits or any other type of guarantee for this procedure, since it is still being discussed at the administrative level. (c) Corporate The Company currently is subject to a settlement of judgement related to an lawsuit filed in 1988, which sentenced Polialden Petroquímica S.A., merged into Braskem, to pay its non-controlling preferred shareholders the distribution of the remaining profits of the company. The purpose of the liquidation is to determine the value of the award calculated in accordance with the sentence, which will occur through an arbitration procedure, as determined by the court, and was appealed against by the judgment winner, which is pending trial. The procedure is awaiting the beginning of the expert analysis. The amount of provision on December 31, 2018 is R$16 million. The amount in dispute with a possible likelihood of loss is R$186 million. (d) Other lawsuits (i) Social Security Contributions – Withholding of 11% The Company was assessed by the RFB for allegedly withholding social security at the rate of 11% on the gross amount of invoices, bills or trade notes related to services executed through assigned labor, in the period from February 1999 to June 2002, amounting to R$52 million, on December 31, 2018. The Company's legal advisors, in view of prior decisions by the Administrative Council of Tax Appeals (CARF) and the evidence provided by the Company, assess as possible the chances of loss at the administrative level. The conclusion is supported, among other things, by the following: (i) the nullity and time-barring of the debits; (ii) the mismatch between the service provided and the tax substitution system under Article 31 of Federal Law 8,212/1991; (iii) the lack of the requirements to characterize assignment of labor, and other matters that would have to be evidenced through a tax diligence. The Company’s external legal advisors estimate that the administrative proceeding should be concluded still in 2019. 23.3 Leniency Agreement (a) Global Settlement with authorities In the context of the allegations of undue payments in connection with Operation Car Wash in Brazil, the Company has engaged experts in internal investigations to conduct an independent investigation into such allegations (“Investigation”) and report their findings. The Company has cooperated and continues to cooperate with authorities in various jurisdictions, including the U.S. Department of Justice (DoJ), the U.S. Securities and Exchange Commission (SEC), the Federal Prosecution Office of Brazil (MPF) and the Office of the Attorney General in Switzerland (OAG). In December, 2016, the Company entered into a Leniency Agreement (“Agreement”) with the Federal Prosecution Office (“MPF Agreement”) and with the authorities in the United States and Switzerland (“Global Settlement”), in the approximate value of US$957 million (approximately R$3.1 billion at the time), which were approved as follows: 1. In Brazil, the Agreement was ratified by the 5 th th 2. The agreement with the U.S. Department of Justice (“DoJ”) was confirmed by a U.S. court ruling on January 26, 2017. 3. The agreement with the Securities and Exchange Commission (“SEC”) was confirmed on February 28, 2017. 4. The agreement with Swiss authorities did not require ratification to produce effect. On December 21, 2016, the OAG concluded its investigations and issued an order to close the case based on the Company's collaboration. The MPF agreed to allocate most of the amounts received under the MPF Agreement to reparation of the victims of the wrongdoings, including other authorities and government agencies, and to coordinate with these third parties with which Braskem can begin negotiations related to the facts described in the Global Settlement, with the goal of avoiding duplicate payment of reparations. In this respect, as per the notice to the market dated July 10, 2018 and the material fact notice dated May 27, 2019, the Company engaged in a cooperation and negotiation process with the Ministry of Transparency, the Office of the Federal Controller General (“CGU”) and the Office of the General Counsel for the Federal Government (“AGU”), which culminated in the signing of a leniency agreement with said authorities on May 31, 2019 (“CGU/AGU Agreement”). The CGU/AGU Agreement addresses the same facts that are the subject of the Global Settlement entered into in December 2016 and provides for an additional disbursement of approximately R$410 million (net effect of present value recorded at December 31, 2018 is R$ 399.5 million) due to the calculations and parameters adopted by CGU/AGU. In response to a request by the Company and the MPF, the Federal Courts ratified the allocation of funds under the MPF Agreement to the payment of the CGU/AGU Agreement, with the outstanding installments restated by the variation of the SELIC basic interest rate as of the execution of the CGU/AGU Agreement. The additional disbursement of approximately R$410 million will be paid in two annual installments at the end of the payment schedule of the MPF Agreement, in 2024 and 2025. The CGU/AGU Agreement jointly with the Global Settlement are referred to as the “Agreements.” Until December 31, 2018 of the aggregate amount of the Global Settlement, the Company already has paid approximately R$2.0 billion, as follows: 1. US$94,894 (R$296,591) to the DoJ, paid on February 8, 2017; 2. US$65,000 (R$206,460) to the SEC, paid on April 27, 2017; 3. CHF30,240 (R$104,307) to the Swiss Office of the Attorney General, paid on June 27, 2017; 4. R$736,445 to the MPF, paid on July 6, 2017; 5. R$267,985 to the MPF, related to the first of six annual installments due by 2023, paid on January 30, 2018; 6. CHF16,065 (R$62,021) to the Swiss Office of the Attorney General, related to the first of four annual installments due by 2021, paid on June 28, 2018; 7. R$278,034 to the MPF, related to the second of six annual installments due by 2023, paid on January 30, 2019; and 8. CHF 16,065 (R$58,034) to the |
Benefits offered to team member
Benefits offered to team members | 12 Months Ended |
Dec. 31, 2018 | |
Benefits Offered To Team Members | |
Benefits offered to team members | 24.1 Short-term benefits 2018 2017 2016 Health care 162,338 140,553 139,412 Private pension 84,525 67,008 61,593 Transport 64,714 58,825 55,223 Feeding 33,537 30,916 28,874 Training 27,463 18,285 20,589 Other 18,271 16,173 13,237 390,848 331,760 318,928 (a) Long-term incentive plan (“ILP Plan”) On March 21, 2018, the Extraordinary Shareholders' Meeting approved the ILP Plan, which aims to align the interests of its participants with those of the Company’s shareholders and to encourage participants’ retention at the Company by offering eligible participants an opportunity to receive restricted shares in the Company by voluntarily investing own funds and holding such shares through the end of the three-year vesting period. On March 28, 2018, the Board of Directors approved the “ILP Plan 2018,” in accordance with the terms and conditions of the ILP Plan, which includes the list of eligible persons, the deadline for acquiring own shares by participants and the number of restricted shares to be delivered to participants as matching contribution for each own share acquired. The maximum number of shares the Company expects to deliver to the participants of the ILP Program 2018, after the vesting period and subject to compliance with all necessary requirements, is 727,688 shares. The program’s grant date is April 6, 2018. The shares to be delivered by the Company to participants of the ILP Program 2018 are those currently held in treasury or acquired through repurchase programs, and in the event said shares cannot be delivered, the Company will pay participants in cash the amount corresponding to the shares, based on the quote on the stock exchange on the second business day immediately prior to the respective payment date. The fair value of the Company’s matching contribution is the market price of the equity instruments quoted on the grant date. For eligible persons of the Company, the fair value is based on the quoted price of the class “A” preferred shares (R$46.62). For eligible persons of subsidiaries abroad, the fair value is based on the quoted price of the American Depository Receipts - ADR (US$27.56). The fair value, net of taxes, recorded on equity at December 31, 2018, is R$6,406. 24.2 Post-employment benefits 24.2.1 Retirement plans - defined benefit plans and health plants For each of the below plans, based on the experts actuarial report, the Company measures its future obligations. The assumptions adopted are in full compliance with IAS 19. (a) Braskem America The subsidiary Braskem America is the sponsor of Novamont, which is a defined benefit plan of the employees of the plant located in the State of West Virginia. At December 31, 2018, the plan has 38 active participants and 172 assisted participants (39 active participants and 166 assisted participants in 2017). The contributions by Braskem America in the year amount to R$20,544 (R$4,069 in 2017). The participants made no contributions in 2018 and 2017. (b) Braskem Alemanha and Braskem Holanda The subsidiaries Braskem Alemanha and Braskem Holanda are the sponsor of the defined benefit plans of its employees. At December 31, 2018, the plan has 158 participants (139 in 2017) and no contributions were made by Braskem Alemanha and Braskem Holanda in 2018 and 2017. The participants made no contributions in 2018 and 2017. (c) Braskem Idesa Servicios Braskem Idesa employees are granted a government retirement benefit plan when they retire or reach retirement age. On December 31, 2018, all 812 employees of Braskem Idesa were active participants in this government retirement plan. On May 2018, Braskem Idesa implemented a private pension plan (defined benefit obligation); by the end of that year we had the participation of 339 employees out of 812. (d) Health plan According to Brazilian laws, the type of health plan offered by the Company, named contributory plan, ensures to the participant who retires or is dismissed without cause the right to remain in the plan with the same assistance coverage conditions they had during the employment term, provided they assume the full payment of the plan (company’s part + participant’s part). (i) Amounts in balance sheet Consolidated 2018 2017 Defined benefit Novamont Braskem America 68,904 62,963 Braskem Alemanha and Netherlands 114,705 93,994 183,609 156,957 Health care Bradesco saúde 90,679 83,233 Total obligations 274,288 240,190 Fair value of plan assets Novamont Braskem America (66,073) (44,823) Braskem Alemanha (1,842) (1,592) (67,915) (46,415) Consolidated net balance (non-current liabilities) 206,373 193,775 (ii) Change in obligations 2018 2017 2016 Balance at beginning of year 240,190 201,516 216,632 Health care 7,446 11,334 2,203 Current service cost 5,842 5,058 4,576 Interest cost 4,906 4,139 3,983 Benefits paid (3,845) (3,399) (3,156) Change plan 1,391 Actuarial losses (gain) (3,713) 9,661 3,590 Exchange variation 22,071 11,881 (26,312) Balance at the end of the year 274,288 240,190 201,516 (iii) Change in fair value plan assets 2018 2017 2016 Balance at beginning of year 46,415 39,380 46,395 Actual return on plan assets (3,200) 5,115 221 Employer contributions 20,544 4,069 3,569 Benefits paid (3,712) (2,915) (3,087) Exchange variation 7,868 766 (7,718) Balance at the end of the year 67,915 46,415 39,380 (iv) Amounts recognized in profit and loss 2018 2017 2016 Health care 7,446 11,334 2,203 Current service cost 5,842 5,058 4,576 Interest cost 4,906 4,139 3,983 Expected return on plan assets (28) (31) Actuarial losses 2,077 6,069 2,472 20,271 26,572 13,203 (v) Actuarial assumptions (%) 2018 2017 2016 Health United Health United Health United insurance States Germany Netherlands insurance States Germany Netherlands insurance States Germany Netherlands Discount rate 5.03 4.45 2.00 2.00 5.45 3.70 2.00 2.00 4.18 4.35 2.00 n/a Inflation rate 4.50 n/a 2.00 2.00 4.50 n/a n/a n/a 6.00 n/a 2.00 n/a Expected return on plan assets n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Rate of increase in future salary levels n/a n/a 3.00 3.00 n/a n/a 2.50 2.50 n/a n/a 3.00 n/a Rate of increase in future pension plan n/a n/a 1.75 1.75 n/a n/a 1.75 1.75 n/a n/a 1.75 n/a Aging factor 2.50 n/a n/a n/a 2.50 n/a n/a n/a 2.50 n/a n/a n/a Medical inflation 3.50 n/a n/a n/a 3.50 n/a n/a n/a 3.50 n/a n/a n/a Duration 19.66 n/a n/a n/a 18.84 n/a n/a n/a 29.24 n/a n/a n/a (vi) Hierarchy of fair value assets On December 31, 2018, the balance of the fair value of assets is represented by the assets of the Novamont defined benefit plan, which has a level-1 fair value hierarchy. (vii) Sensitivity analysis Impact on the defined benefit obligation Premise change Premise increase Premise reduction Health United Health United Health United insurance States Germany Netherlands insurance States Germany Netherlands insurance States Germany Netherlands Discount rate 1.0% 1.0% 0.5% 0.5% 10,428 7,261 10,802 563 (12,868) (8,802) (11,971) (626) Real medical inflation n/a n/a n/a n/a 15,698 n/a n/a n/a (12,454) n/a n/a n/a Rate of increase in future salary levels n/a n/a 1% 1% n/a n/a 6,256 336 n/a n/a (5,934) (318) Rate of increase in future pension plan 1% n/a 0% 0% n/a n/a 3,087 166 n/a n/a (3,006) (161) Life expectancy 1% n/a 1 year 1 year n/a n/a 2,848 144 n/a n/a (2,973) (150) Mortality rate n/a 10% n/a n/a n/a 1,984 n/a n/a n/a (2,164) n/a n/a Health insurance - Impact on cost of services and interests costs Premise change Premise increase Premise reduction Cost of Iterests Cost of Iterests Cost of Iterests services costs services costs services costs Discount rate 1.0% 1.0% 381 198 (488) (193) Real medical inflation 1.0% 1.0% 344 1,532 (288) (1,215) Rate of increase in future pension plan 1.0% 1.0% 66 216 (67) (221) 24.2.2 Retirement plan - defined contribution The Company and the subsidiaries in Brazil sponsor a defined contribution plan for its team members managed by ODEPREV, a private pension plan entity. ODEPREV offers its participants, which are employees of the sponsoring companies, an optional defined contribution plan in which monthly and additional participant contributions and monthly and annual sponsor contributions are made to individual pension savings accounts. For this plan, the sponsors pay contributions to private pension plan on contractual or voluntary bases. As soon as the contributions are paid, the sponsors do not have any further obligations related to additional payments. At December 31, 2018, the number of active participants in ODEPREV totals 5,725 (5,280 in 2017) and the contributions made by the sponsors in the year amount to R$50,610 (R$38,332 in 2017) and the contributions made by the participants amounted to R$69,058 (R$60,038 in 2017). |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders' equity | |
Equity | (a) Capital On December 31, 2018, the Company's subscribed and paid up capital stock amounted to R$8,043,222 and comprised 797,218,554 shares with no par value, distributed as follows: Amount of shares Preferred Preferred Common shares shares shares % class A % class B % Total % Odebrecht 226,334,623 50.11 79,182,498 22.95 305,517,121 38.32 Petrobras 212,426,952 47.03 75,761,739 21.96 288,188,691 36.15 ADR (i) 48,780,072 14.14 48,780,072 6.12 Other 12,907,077 2.86 140,090,605 40.59 500,230 100.00 153,497,912 19.26 Total 451,668,652 100.00 343,814,914 99.64 500,230 100.00 795,983,796 99.85 Treasury shares 1,234,758 0.36 1,234,758 0.15 Total 451,668,652 100.00 345,049,672 100.00 500,230 100.00 797,218,554 100.00 (i) American Depositary Receipts traded on the New York Stock Exchange (USA); (b) Legal reserve Under Brazilian Corporation Law, companies must transfer 5% of net profit for the year to a legal reserve until this reserve is equivalent to 20% of the paid-up capital. The legal reserve can be used for capital increase or absorption of losses. (c) Share rights Preferred shares carry no voting rights but they ensure priority, non-cumulative annual dividend of 6% of their unit value, according to profits available for distribution. The unit value of the shares is obtained through the division of capital by the total number of outstanding shares. Only class “A” preferred shares will have the same claim on the remaining profit as common shares and will be entitled to dividends only after the priority dividend is paid to preferred shareholders. Only class “A” preferred shares also have the same claim as common shares on the distribution of shares resulting from capitalization of other reserves. Only class “A” preferred shares can be converted into common shares upon resolution of majority voting shareholders present at a General Meeting. Class “B” preferred shares can be converted into class “A” preferred shares at any time, at the ratio of two class “B” preferred shares for one class “A” preferred share, upon a simple written request to the Company, provided that the non-transferability period provided for in specific legislation that allowed for the issue and payment of such shares with tax incentive funds has elapsed. In 2018, 78,100 class “B" preferred shares were converted into 39,050 class “A" preferred shares. In the event of liquidation of the Company, class “A” and “B” preferred shares will have priority in the reimbursement of capital. Shareholders are entitled to receive a mandatory minimum dividend of 25% on profit for the year, adjusted under Federal Law 6,404/76. (d) Profit allocation and payment of dividends Under the Company’s bylaws, profit for the year, adjusted according to Federal Law 6,404/76, is appropriated as follows: (i) 5% to a legal reserve; (ii) 25% to pay for mandatory, non-cumulative dividends, provided that the legal and statutory advantages of the Class “A” and “B” preferred shares are observed. When the amount of the priority dividend paid to class “A” and “B” preferred shares is equal to or higher than 25% of profit for the year calculated under Article 202 of Federal Law 6,404/76, it is the full payment of the mandatory dividend. Any surplus remaining after the payment of the priority dividend will be used to: · pay dividends to common shareholders up to the limit of the priority dividends of preferred shares; and · if there still is any surplus, distribute additional dividends to common shareholders and class “A” preferred shareholders so that the same amount of dividends is paid for each common share or class “A” preferred share. (d.1) Profit allocation and dividends proposed 2018 Net income for the year of Company's shareholders 2,866,675 Amounts recorded directly to retained earnings Legal reserves distribution (143,334) Tax incentive reserve distribution (81,863) Realization of additional property, plant and equipment 27,679 Prescribed dividends / other 517 2,669,674 Allocations: Minimum dividends - 25% adjusted net income (667,419) Additional dividends proposed (2,002,255) (2,669,674) Per-share dividend of R$3.35565826658 per common and class “A” preferred share and R$0.60628536320 per class “B” preferred share. (d.2) Additional dividends related to fiscal year 2017 The Annual Shareholders’ Meeting held on April 30, 2018 approved the declaration of additional dividends on profit related to fiscal year 2017 in the amount of R$ 1,500,000, the payment of which commenced on May 10, 2018, of which R$851,729 was paid to holders of common shares and R$648,271 to holders of class “A” preferred shares. (e) Other comprehensive income Attributed to shareholders' interest Deemed cost Fair value Defined Foreign and additional adjustments of Gain (loss) Foreign benefit currency Total indexation of trade accounts on interest sales Fair value plans actuarial translation Braskem Non-controlling PP&E receivable in subsidiary hedge of hedge Gain (loss) adjustment shareholders' interest in (ii) (iii) (i) (iv) (iv) (v) (vi) interest Braskem Idesa Total On December 31, 2015 234,904 (9,404) (9,666,973) (685,396) (39,232) 1,105,391 (9,060,710) (476,708) (9,537,418) Additional indexation Realization by depreciation or write-off assets (41,268) (41,268) (41,268) Income tax and social contribution 14,032 14,032 14,032 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,461) (1,461) (1,461) Income tax and social contribution 496 496 496 Foreign sales hedge Exchange rate 2,625,551 2,625,551 (498,767) 2,126,784 Transfer to result 1,342,785 1,342,785 14,959 1,357,744 Income tax and social contribution (1,406,740) (1,406,740) 145,326 (1,261,414) Fair value of Cash flow hedge Change in fair value 247,815 247,815 (736) 247,079 Transfer to result (19,434) (19,434) (12,135) (31,569) Income tax and social contribution (79,194) (79,194) 3,861 (75,333) Fair value of cash flow hedge from jointly-controlled (3,309) (3,309) (3,309) Actuarial loss with post-employment benefits, net of taxes (4,119) (4,119) (4,119) Foreign currency translation adjustment 63,697 63,697 275,599 339,296 On December 31, 2016 206,703 (9,404) (7,105,377) (539,518) (43,351) 1,169,088 (6,321,859) (548,601) (6,870,460) Additional indexation Realization by depreciation or write-off assets (40,678) (40,678) (40,678) Income tax and social contribution 13,831 13,831 13,831 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,459) (1,459) (1,459) Income tax and social contribution 496 496 496 Foreign sales hedge Exchange rate (42,507) (42,507) 118,179 75,672 Transfer to result 1,145,602 1,145,602 40,924 1,186,526 Income tax and social contribution (355,960) (355,960) (47,731) (403,691) Fair value of Cash flow hedge Change in fair value 876,636 876,636 6,513 883,149 Transfer to result (287,576) (287,576) 9,632 (277,944) Income tax and social contribution (198,343) (198,343) (4,844) (203,187) Fair value of cash flow hedge from jointly-controlled 3,534 3,534 3,534 Actuarial loss with post-employment benefits, net of taxes (8,654) (8,654) (8,654) Foreign currency translation adjustment 51,445 51,445 (52,047) (602) On December 31, 2017 178,893 (9,404) (6,358,242) (145,267) (52,005) 1,220,533 (5,165,492) (477,975) (5,643,467) Attributed to shareholders' interest Deemed cost and additional indexation of PP&E (ii) Fair value adjustments of trade accounts receivable (iii) Gain (loss) on interest in subsidiary (i) Foreign sales hedge (iv) Fair value of hedge (iv) Defined benefit plans actuarial Gain (loss) (v) Foreign currency translation adjustment (vi) Total Braskem shareholders' interest Non-controlling interest in Braskem Idesa Total On December 31, 2017 178,893 (9,404) (6,358,242) (145,267) (52,005) 1,220,533 (5,165,492) (477,975) (5,643,467) Additional indexation Realization by depreciation or write-off assets (40,481) (40,481) (40,481) Income tax and social contribution 13,764 13,764 13,764 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,458) (1,458) (1,458) Income tax and social contribution 496 496 496 Fair value adjustments Accounts receivable (449) (449) Foreign sales hedge Exchange rate (3,133,346) (3,133,346) 4,170 (3,129,176) Transfer to result 1,200,209 1,200,209 59,143 1,259,352 Income tax and social contribution 664,864 664,864 (18,994) 645,870 Fair value of Cash flow hedge Change in fair value (449) (196,790) (196,790) 7,722 (189,068) Transfer to result 26,964 26,964 10,386 37,350 Income tax and social contribution 59,914 59,914 (5,433) 54,481 Fair value of cash flow hedge from jointly-controlled (2,329) (2,329) (2,329) Actuarial loss with post-employment benefits, net of taxes (1,569) (1,569) (1,569) ILP PLan fair value Change in fair value 9,297 9,297 133 9,430 Income tax and social contribution (2,891) (2,891) (2,891) Foreign currency translation adjustment 946,342 946,342 (145,119) 801,223 (Loss) investment gains (65) (65) 65 On December 31, 2018 151,214 5,957 (9,469) (7,626,515) (257,508) (53,574) 2,166,875 (5,623,020) (565,902) (6,188,922) (i) Transfer to the income statement when divestment or transfer of control of subsidiary. (ii) Transfer to retained earnings as the asset is depreciated or written-off/sold. (iii) For receivables classified as fair value through other comprehensive income, transfer to the income statement when attainment of jurisdiction or early liquidation. For the ILP Plan, Transfer to retained earnings according to the grace period of the plan. (iv) Transfer to the income statement when maturity, prepayment or loss of efficacy for hedge accounting. (v) Transfer to retained earnings when the extinction of the plan. (vi) Transfer to the income statement when write-off of subsidiary abroad. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share [abstract] | |
Earnings per share | Basic and diluted earnings (loss) per share is calculated by means of the division of adjusted profit for the year attributable to the Company’s common and preferred shareholders by the weighted average number of these shares held by shareholders, excluding those held in treasury and following the rules for the distribution of dividends provided for in the Company’s bylaws, as described in Note 25(d), particularly in relation to the limited rights enjoyed by class “B” preferred shares. In view of these limited rights, this class of share does not participate in losses. In this case, the diluted result takes into account the conversion of two class "B" preferred shares into one class “A” preferred share, as provided for in the bylaws of the Company. Class “A” preferred shares participate in dividends with common shares after the mandatory dividends has been attributed in accordance with the formula provided for in the Company’s bylaws, as described in Note 25(c) and there is no highest limit for their participation. Diluted and basic earnings (losses) per share are equal when there is profit in the year, since Braskem has not issued convertible financial instruments. As required by IAS 33, the table below show the reconciliation of profit (loss) for the period adjusted to the amounts used to calculate basic and diluted earnings (loss) per share. Basic and diluted 2018 2017 2016 Profit (loss) for the year attributed to Company's shareholders of continued operations 2,827,650 3,856,564 (442,430) Distribution of priority dividends attributable to: Preferred shares class "A" 208,450 208,416 Preferred shares class "B" 303 351 208,753 208,767 Distribution of 6% of unit value of common shares 273,840 273,827 Distribution of plus income, by class: Common shares 1,331,513 1,915,805 Preferred shares class "A" 1,013,544 1,458,165 2,345,057 3,373,970 Reconciliation of income available for distribution, by class (numerator): Common shares 1,605,353 2,189,632 (251,222) Preferred shares class "A" 1,221,994 1,666,581 (191,208) Preferred shares class "B" 303 351 2,827,650 3,856,564 (442,430) Weighted average number of shares, by class (denominator): Common shares 451,668,652 451,668,652 451,668,652 Preferred shares class "A" 343,808,699 343,775,864 343,771,165 Preferred shares class "B" 512,660 578,330 795,990,011 796,022,846 795,439,817 Profit (loss) per share (in R$) Common shares 3.5543 4.8479 (0.5562) Preferred shares class "A" 3.5543 4.8479 (0.5562) Preferred shares class "B" 0.5910 0.6069 2018 Preferred shares Class "A" Class "B" Outstanding Weighted Outstanding Weighted shares average shares average Amount at beginning of year 343,775,864 343,775,864 578,330 578,330 Conversion of preferred shares class "B" to "A" 39,050 32,835 (78,100) (65,670) Amount at the end of the year 343,814,914 343,808,699 500,230 512,660 2016 Preferred shares Preferred shares Class "A" Outstanding Weighted shares average Amount at beginning of year 343,768,220 343,768,220 Conversion of preferred shares class "B" to "A" 7,644 2,945 Amount at the end of the year 343,775,864 343,771,165 |
Net revenues
Net revenues | 12 Months Ended |
Dec. 31, 2018 | |
Net Revenues | |
Net revenues | 2018 2017 2016 Sales revenue Domestic market Revenue 42,189,365 34,983,265 32,293,042 Rebates (45,290) (35,538) (25,400) 42,144,075 34,947,727 32,267,642 Foreign market Revenue 26,577,433 23,297,304 23,084,703 Rebates (58,188) (60,990) (23,820) 26,519,245 23,236,314 23,060,883 68,663,320 58,184,041 55,328,525 Sales and services deductions Taxes Domestic market (10,219,138) (8,663,707) (7,316,325) Foreign market (36,562) (33,798) (102,831) Sales returns Domestic market (148,918) (125,153) (168,625) Foreign market (258,836) (100,789) (76,756) (10,663,454) (8,923,447) (7,664,537) Net sales and services revenue 57,999,866 49,260,594 47,663,988 Revenues from sales of products are recognized when (i) the amount of sales can be reliably measured and the Company does not have control over the products sold; (ii) it is probable that the Company will received the economic benefits; and (iii) risks and benefits of product ownership are substantially transferred to the client. The Company does not make sales with continued management involvement. Most of Braskem’s sales are made to industrial customers and, in a lower volume, to resellers. The moment when the legal right, as well as the risks and benefits, are substantially transferred to the client is determined as follows: (i) for contracts under which the Company is responsible for the freight and insurance, the legal right and the risks and benefits are transferred to the client as soon as the risk of the goods are delivered at the destination established in the contract; (ii) for agreements under which the freight and insurance are a responsibility of the client, risks and benefits are transferred as soon as the products are delivered to the client’s carrier; and (iii) for contracts under which product delivery involves the use of pipelines, especially basic petrochemicals, the risks and benefits are transferred immediately after the Company’s official markers, which is the point of delivery of the products and transfer of their ownership. The cost of freight services related to sales, transfers to storage facilities and finished product transfers between Braskem establishments are included in cost of sales. (a) Net revenue by country 2018 2017 2016 Brazil 31,801,222 26,147,559 24,640,077 United States 9,887,701 8,539,972 7,965,209 Argentina 1,166,191 1,336,440 1,244,267 United Kingdom 366,328 202,830 589,725 Germany 1,385,482 1,192,287 1,198,760 Mexico 4,168,140 3,408,385 2,075,695 Italy 650,605 604,546 667,265 Netherlands 293,315 333,134 262,289 Singapore 756,069 542,866 1,101,156 Switzerland 315,254 415,729 227,504 Colombia 363,497 340,396 369,359 Spain 329,458 282,854 342,154 Chile 686,646 554,237 522,796 Peru 540,495 493,654 397,186 Uruguay 155,571 122,251 122,783 Japan 245,208 126,956 1,631,564 Poland 260,449 231,716 252,508 Paraguay 214,959 174,783 185,432 France 135,094 166,314 236,727 Bolivia 250,048 163,862 211,382 Canada 290,453 235,612 242,492 South Korea 314,517 339,430 254,512 Other 3,423,164 3,304,781 2,923,146 57,999,866 49,260,594 47,663,988 (b) Net revenue by product 2018 2017 2016 PE/PP 37,979,148 33,105,714 30,790,364 Ethylene, Propylene 4,283,709 3,351,805 2,906,796 Naphtha, condensate and crude oil 248,313 135,165 2,582,257 Benzene, toluene and xylene 2,785,400 2,683,406 2,411,031 PVC/Caustic Soda/EDC 3,167,390 3,066,879 3,016,390 ETBE/Gasoline 2,928,993 2,433,360 2,058,952 Butadiene 2,023,465 1,819,387 1,315,892 Cumene 909,409 578,482 501,958 Solvents 476,311 401,455 379,745 Other 3,197,729 1,684,941 1,700,603 57,999,866 49,260,594 47,663,988 (c) Main clients The Company does not have any revenue arising from transactions with only one client that is equal to or higher than 10% of its total net revenue. In 2018, the most significant revenue from a single client amounts to approximately 2.4% of total net revenues of the Company and refers to the Chemical segment. |
Tax incentives
Tax incentives | 12 Months Ended |
Dec. 31, 2018 | |
Tax Incentives | |
Tax incentives | (a) Income Tax Since 2015, the Company obtained grant in lawsuits claiming the reduction of 75% of IR on income from the following industrial units: (i) PVC and Chlor-Alkali ( Cloro Soda (b) PRODESIN - ICMS The Company has ICMS tax incentives granted by the state of Alagoas, through the state of Alagoas Integrated Development Program – PRODESIN, which are aimed at implementing and expanding a plant in that state. This incentive is considered an offsetting entry to sales taxes. In fiscal year 2018, the amount was R$81,863 (R$95,704 in 2017). Since 2018, through Complementary Law 160/2017, the amount recorded is now allocated to reserve the tax incentives in stockholders' equity, in accordance with Article 195-A of Federal Law 6,404/76. |
Other income (expenses), net
Other income (expenses), net | 12 Months Ended |
Dec. 31, 2018 | |
Other Income Expenses Net | |
Other income (expenses), net | Note 2018 2017 2016 Bonus to employees (375,360) (399,828) (361,796) Expenses from fixed assets (40,061) (205,929) (53,774) Allowance for judicial and labor claims (83,280) (119,919) (169,973) Fine on supply contract of raw material, net (i) 336,533 PIS and COFINS credits - exclusion of ICMS from the calculation basis 10(c) 235,919 Capital gain - sale of Quantiq 276,816 Recovery of environmental damages (89,395) (102,466) (182,600) Leniency agreement 23.3(a) (375,476) (2,860,402) Other 106,496 71,922 (277,409) 90,852 (854,880) (3,905,954) (i) The contractual penalty for failing to supply feedstock to the subsidiary Braskem Idesa is R$338,125. |
Financial results
Financial results | 12 Months Ended |
Dec. 31, 2018 | |
Financial Results | |
Financial results | 2018 2017 2016 Financial income Interest income 530,007 512,051 646,727 Other 59,045 91,579 43,395 589,052 603,630 690,122 Financial expenses (2,084,780) (2,219,503) (2,447,481) Monetary variations on fiscal debts (33,429) (191,101) (249,578) Customer discounts granted (141,223) (137,389) (108,606) Loans transaction costs (89,982) (64,771) (56,020) Adjustment to present value (296,065) (284,992) (507,744) (362,072) (849,461) (201,533) (3,007,551) (3,747,217) (3,570,962) Exchange rate variations, net On financial assets 1,268,741 216,381 (1,139,676) On financial liabilities (3,525,724) (1,015,143) (2,070,741) (2,256,983) (798,762) (3,210,417) (4,675,482) (3,942,349) (6,091,257) |
Expenses by nature and function
Expenses by nature and function | 12 Months Ended |
Dec. 31, 2018 | |
Expenses By Nature And Function | |
Expenses by nature and function | 2018 2017 2016 Classification by nature: Raw materials other inputs (38,889,949) (29,364,996) (28,197,875) Personnel expenses (2,412,118) (2,173,640) (2,576,107) Outsourced services (2,306,048) (2,120,001) (2,135,412) Depreciation, amortization and depletion (2,990,577) (2,928,855) (2,677,672) Freights (2,275,375) (2,058,574) (1,918,973) Costs of idle industrial plants (138,242) (67,593) (60,944) Other income (expenses), net (706,451) (1,379,965) (4,175,836) Total (49,718,760) (40,093,624) (41,742,819) Classification by function: Cost of products sold (46,431,220) (36,177,408) (34,985,569) Selling and distribution (1,545,568) (1,459,608) (1,403,673) General and administrative (1,633,003) (1,434,272) (1,285,613) Research and development (199,821) (167,456) (162,010) Other income (expenses), net 90,852 (854,880) (3,905,954) Total (49,718,760) (40,093,624) (41,742,819) |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Information | |
Segment information | Braskem’s organizational structure was formed by the following segments: · Chemicals: comprises the activities related to the production of ethylene, propylene butadiene, toluene, xylene, cumene and benzene, as well as gasoline, diesel and LPG (Liquefied Petroleum Gas), and other petroleum derivatives and the supply of electric energy, steam, compressed air and other inputs to second-generation producers located in the Camaçari, Triunfo, São Paulo and Rio de Janeiro petrochemical complexes. · Polyolefins: comprises the activities related to the production of PE and PP in Brazil. · Vinyls: comprises the activities related to the production of PVC, caustic soda and chloride in Brazil. · United States and Europe: operations related to PP production in the United States and Europe, through the subsidiaries Braskem America and Braskem Alemanha, respectively. · Mexico: comprises the activities relation to the production of PE in Mexico, through the subsidiary Braskem Idesa. (a) Presentation, measurement and reconciliation of segment results Information by segment is generated in accounting records, which are reflected in the consolidated financial statements. The eliminations stated in the operating segment information, when compared with the consolidated balances, are represented by transfers of inputs between segments that are measured as arm’s length sales. The operating segments are stated based on the results of operations, which does not include financial results, and current and deferred income tax and social contribution expenses. (b) Results by segment 2018 Operating expenses Net Cost of Selling, general Results from Other operating sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net profit (loss) Reporting segments Chemicals 31,111,650 (27,464,046) 3,647,604 (756,719) (139,393) 2,751,492 Vinyls 3,167,390 (2,889,519) 277,871 (169,377) (18,416) 90,078 Polyolefins 22,483,866 (19,255,377) 3,228,489 (1,310,080) (93,465) 1,824,944 USA and Europe 11,724,776 (9,126,392) 2,598,384 (610,384) 10,656 1,998,656 Mexico 3,770,506 (2,333,849) 1,436,657 (296,391) 305,457 1,445,723 Total 72,258,188 (61,069,183) 11,189,005 (3,142,951) 64,839 8,110,893 Other segments 292,435 (173,608) 118,827 (34,819) (103) 83,905 Corporate unit 265,438 (i) 265,438 (200,622) (888) 26,116 (i) 90,044 Braskem consolidated before eliminations and reclassifications 72,816,061 (61,242,791) 11,573,270 (3,378,392) (888) 90,852 8,284,842 Eliminations and reclassifications (14,816,195) 14,811,571 (4,624) (4,624) Total 57,999,866 (46,431,220) 11,568,646 (3,378,392) (888) 90,852 8,280,218 2017 Operating expenses Net Cost of Selling, general Results from Other operating sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net profit (loss) Reporting segments Chemicals 25,179,288 (20,478,914) 4,700,374 (773,396) (197,275) 3,729,703 Vinyls 3,066,879 (2,572,774) 494,105 (162,989) (163,374) 167,742 Polyolefins 19,650,398 (15,432,179) 4,218,219 (1,321,575) (177,518) 2,719,126 USA and Europe 9,854,496 (7,419,261) 2,435,235 (582,672) (21,279) 1,831,284 Mexico 3,600,820 (2,097,471) 1,503,349 (283,318) 27,914 1,247,945 Total 61,351,881 (48,000,599) 13,351,282 (3,123,950) (531,532) 9,695,800 Other segments 83,720 (65,743) 17,977 (13,391) (2,430) 2,156 Corporate unit (61,384) 39,956 (320,918) (ii) (342,346) Braskem consolidated before eliminations and reclassifications 61,435,601 (48,066,342) 13,369,259 (3,198,725) 39,956 (854,880) 9,355,610 Eliminations and reclassifications (12,175,007) 11,888,934 (286,073) 137,389 (148,684) Total 49,260,594 (36,177,408) 13,083,186 (3,061,336) 39,956 (854,880) 9,206,926 2016 Operating expenses Net Cost of Selling, general Results from Other operating sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net profit (loss) Reporting segments Chemicals 25,062,602 (20,248,175) 4,814,427 (680,083) (409,920) 3,724,424 Vinyls 3,016,390 (2,815,184) 201,206 (236,771) (71,880) (107,445) Polyolefins 20,307,367 (15,980,935) 4,326,432 (1,284,665) (199,098) 2,842,669 USA and Europe 8,896,071 (6,080,722) 2,815,349 (497,810) (71,000) 2,246,539 Mexico 1,586,927 (1,152,047) 434,880 (231,795) (4,805) 198,280 Total 58,869,357 (46,277,063) 12,592,294 (2,931,124) (756,703) 8,904,467 Other segments 12,202 (14,760) (2,558) (1,876) (20,864) (25,298) Corporate unit (33,582) 30,078 (3,128,387) (iii) (3,131,891) Braskem consolidated before eliminations and reclassifications 58,881,559 (46,291,823) 12,589,736 (2,966,582) 30,078 (3,905,954) 5,747,278 Eliminations and reclassifications (11,217,571) 11,306,254 88,683 115,286 203,969 Total 47,663,988 (34,985,569) 12,678,419 (2,851,296) 30,078 (3,905,954) 5,951,247 (i) Includes the amount of R$501.357 (R$265,438 in “Net revenue" and R$235,919 in “Other operating income (expenses), net”) related to PIS and COFINS tax credits – exclusion of ICMS from the calculation basis (note 10(c)). (ii) Includes gain from sale of “Chemicals distribution” segment in the amount of R$276,816. (iii) Inclusion of the provision for the Leniency Agreement in the amount of R$2,860,402. (c) Property, plant and equipment and intangible assets by segment 2018 2017 Reporting segments Chemicals 10,916,874 11,136,125 Polyolefins 4,985,337 5,072,162 Vinyls 2,334,270 2,433,882 USA and Europe 3,875,566 2,587,302 Mexico 11,835,170 10,733,277 Total 33,947,217 31,962,748 Unallocated amounts 553,655 526,359 Total 34,500,872 32,489,107 |
Insurance coverage
Insurance coverage | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Coverage | |
Insurance coverage | Braskem contracts insurance policies to the domestic and international operations of its plants, as detailed below. In addition, also contracts other insurance policies, including general civil liability, the civil liability of directors and offices (D&O), domestic and international charter operations, charter's liability, etc. The Insurance Program maintained by the Company is consistent with the standards adopted by petrochemical companies operating globally. The All Risks Program provides coverage for material damages and consequent loss of profit of all Braskem plants through an “All Risks” program. The program is divided into three different policies that ensure coverage of the operations in Brazil, United States/Germany and Mexico, which are valid through April 2020. The following table presents additional information on the policies in force. Each has maximum indemnity limits (“MIL”) per event to cover possible claims in view of the nature of the Company’s activities and benchmarks, as well estimated maximum loss studies prepared by external advisors. Maximum indemnity limit Amount insured Maturity US$ million R$ million US$ million R$ million Units in Brazil April 10, 2020 3,375 13,077 26,406 102,318 Units in United States and Germany April 10, 2020 500 1,937 2,037 7,893 Units in Mexico April 10, 2020 2,936 11,376 6,068 23,512 Total 34,511 133,723 The risk assumptions adopted are not part of the audit scope and, therefore, were not subject to review by our independent accountants. These policies provide coverage for material losses arising from accidents related to fire, explosion and machinery breakdown, etc., and consequential loss of profit, with maximum indemnity periods ranging from 12 and 33 months, depending on the plant and/or coverage. Braskem also carries an insurance policy against general civil liability that guarantees any damages caused to third parties from its operations and products, including any losses caused by sudden pollution. The Company’s new projects are covered by specific Engineering Risk policies and/or construction and assembly clauses included in the Operational Risks policies. |
Information related to guarante
Information related to guaranteed securities issued by subsidiaries | 12 Months Ended |
Dec. 31, 2018 | |
Information Related To Guaranteed Securities Issued By Subsidiaries | |
Information related to guaranteed securities issued by subsidiaries | Braskem S.A. has fully and unconditionally guaranteed the debt securities issued by Braskem Finance, Braskem America Finance and Braskem Holanda Finance 100-percent-owned subsidiaries of Braskem. There are no significant restrictions on the ability of Braskem to obtain funds from these subsidiaries. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events | |
Subsequent events | (a) (b) (c) The maximum number of shares the Company expects to deliver to the participants of the ILP Program 2019, after the vesting period and subject to compliance with all necessary requirements, is 573,345 shares. The shares to be delivered by the Company to participants of the ILP Program 2019 are those currently held in treasury or acquired through repurchase programs, and in the event said shares cannot be delivered, the Company will pay participants in cash the amount corresponding to the shares, based on the quote on the stock exchange on the second business day immediately prior to the respective payment date. This plan will be accounted for in accordance with CPC 10 – Share-Based Payment and its corresponding standard IFRS 2, which requires the Company to calculate the value of equity instruments granted based on the fair value thereof on the grant date. The corresponding expense will be recognized by the accrual method over the vesting period for exercising the instruments. (d) The plaintiffs requested a provisional remedy to freeze Braskem’s assets in the amount of R$6.7 billion. The court’s A preliminary decision ordered the freezing of R$100 million in the Braskem’s bank accounts, which already has been carried out. After both parties filed Interlocutory Appeals, the Alagoas State Court of Appeals granted the appeal filed by the State Prosecution Office, ordering the suspension of the distribution of dividends to shareholders, under penalty of freezing R$2.7 billion. The decision was revised by a Suspension of Injunction and Order, through a decision of the presiding judge of the Superior Court of Justice (STJ), which authorized the decision involving the distribution of dividends conditioned to Braskem effectively issuing an insurance guarantee. On June 26, 2019, the Alagoas State Prosecution Office and the Alagoas State Public Defender’s Office amended the action to change the boundaries of the claim, which involved excluding the alleged environmental damages and reducing the request for immediate freeze of assets to R$3.7 billion, which would correspond to the sum of the pecuniary damages caused to the residents of the districts affected by the geological event. Immediately thereafter, the presiding judge of the Alagoas State Court of Appeals issued, during a courthouse vacation, a decision ordering the freezing of R$3.7 billion. On August 9, 2019, the decision of the presiding judge of the STJ lifted the freezing of cash, conditioned upon the effective presentation of a new insurance guarantee in the same amount by Braskem to the court. The Company continues to collaborate with the authorities to identify the environmental causes of damages, with the support of independent experts, and is committed to implementing solutions. (e) On October 10, 2019, the Judge of the 7 th The Company informs will keep the market informed of any material developments in the matter. (f) So far, there is no decision about the injunction requested. The Company informs that it has taken all applicable measures within the legal periods and will keep the market informed of any relevant development in this matter. (g) The Company appealed the decision, which is scheduled by the NYSE for October 17, 2019. On October 7, 2019 the Company filed Form 20-F for the year ended December 31, 2017. (h) (i) The Company further informs that it has no relevant amounts receivable from Odebrecht and that the court-supervised reorganization does not trigger the early termination of any of its liabilities. (j) (k) (l) The approval of the Waivers & Consent package allows Braskem Idesa to reclassify the Senior Debt from current to non-current liabilities. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies | |
Basis of preparation and presentation of the financial statements | The financial statements have been prepared under the historical cost convention and were adjusted, when required, to reflect the fair value of assets and liabilities. The consolidated financial statements presented in this 20-F are not equivalent to the statutory financial statements of the Company as issued under the requirements of the Brazilian jurisdiction. The date of authorization for issue of these consolidated financial statements is different from the date when the consolidated financial statements were issued in Brazil, there are differences due to adjusting and non adjusting events after the reporting period, under IAS 10 – Events after the Reporting Period. The statutory financial statements (parent company and consolidated) for the year ended December 31, 2018 were authorized for issue on March 11, 2019, in accordance with the accounting practices adopted in Brazil and the International Financial Reporting Standards (“IFRS”), filed with the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – “CVM”) on March 13, 2019. The preparation of financial statements requires the use of certain estimates. It also requires Management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3. Issue of these financial statements was authorized by the Executive Board on October 17, 2019. 2.1.1 Consolidated financial statements The consolidated financial statements were prepared and presented in accordance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). (a) Consolidation The consolidated financial statements comrise the financial statements of the Braskem S.A. and the following entities: Total and voting interest - % Headquarters 2018 2017 2016 Direct and Indirect subsidiaries Alclor Química de Alagoas Ltda ("Alclor") (i) Brazil 100.00 BM Insurance Company Limited ("BM Insurance") (ii) Bermuda 100.00 Braskem America Finance Company ("Braskem America Finance") EUA 100.00 100.00 100.00 Braskem America, Inc. (“Braskem America”) EUA 100.00 100.00 100.00 Braskem Argentina S.A. (“Braskem Argentina”) Argentina 100.00 100.00 100.00 Braskem Austria Finance GmbH ("Braskem Austria Finance") (iii) Austria 100.00 Braskem International GmbH ("Braskem Austria") (iv) Austria 100.00 100.00 Braskem Europe GmbH ("Braskem Alemanha") Germany 100.00 100.00 100.00 Braskem Finance Limited (“Braskem Finance”) Cayman Islands 100.00 100.00 100.00 Braskem Idesa S.A.P.I. ("Braskem Idesa") Mexico 75.00 75.00 75.00 Braskem Idesa Servicios S.A. de CV ("Braskem Idesa Serviços") Mexico 75.00 75.00 75.00 Braskem Incorporated Limited ("Braskem Inc") Cayman Islands 100.00 100.00 100.00 Braskem Mexico Proyectos S.A. de C.V. SOFOM ("Braskem México Sofom") Mexico 100.00 100.00 100.00 Braskem Mexico, S. de RL de CV ("Braskem México") Mexico 100.00 100.00 100.00 Braskem Mexico Servicios S. RL de CV ("Braskem México Serviços") Mexico 100.00 100.00 100.00 Braskem Netherlands B.V. ("Braskem Holanda") Netherlands 100.00 100.00 100.00 Braskem Netherlands Finance B.V. (“Braskem Holanda Finance”) Netherlands 100.00 100.00 100.00 Braskem Netherlands Inc. B.V. (“Braskem Holanda Inc”) Netherlands 100.00 100.00 100.00 Braskem Petroquímica Chile Ltda. (“Braskem Chile”) Chile 100.00 100.00 100.00 Braskem Petroquímica Ltda. ("Braskem Petroquímica") (v) Brazil 100.00 Cetrel S.A. ("Cetrel") Brazil 63.66 63.66 Distribuidora de Água Camaçari S.A. ("DAC") Brazil 63.66 63.66 Lantana Trading Co. Inc. (“Lantana”) Bahamas 100.00 100.00 100.00 Special Purpose Entity ("SPE") Fundo de Investimento Caixa Júpiter Multimercado Crédito Privado Longo Prazo ("FIM Júpiter") Brazil 100.00 100.00 100.00 Fundo de Investimento Multimercado Crédito Privado Sol (“FIM Sol”) (vi) Brazil 100.00 Fundo de Investimento Santander Netuno Multimercado Crédito Privado Longo Prazo ("FIM Netuno") (vii) Brazil 100.00 (ii) Created in October 2018. (iii) Terminated in January 2016. (iv) Terminated in June 2018. (v) Merged into the Braskem in December 2017. (vi) Contract terminated in 2016. (vii) Multi-asset fund created in December 2018. |
Functional and foreign currency | (a) Functional and presentation currency The functional currency of the Company is the real. The presentation currency is also real. (b) Functional currency other than the Brazilian real Certain subsidiaries have a different functional currency from that of the Braskem S.A., as follows: Functional currency Subsidiaries Braskem Alemanha Euro BM Insurance, Braskem America, Braskem America Finance, Braskem Holanda, Braskem Holanda Finance, Braskem Holanda Inc. and Braskem México Sofom U.S.dollar Braskem Idesa , Braskem Idesa Serviços, Braskem México and Braskem México Serviços Mexican peso The other subsidiaries adopt the Brazilian real as functional currency. (c) Exchange variation effects The effects from exchange variation on the Company’s transactions are mainly due to the variation in the rates of the following currencies: End of period rate at December 31 Average rate Variation 2018 2017 Variation 2018 2017 2016 2018 - 2017 2017 - 2016 U.S. dollar - Brazilizan real 3.8748 3.3080 17.13% 3.6558 3.1925 3.4833 14.51% -8.35% Euro - Brazilian real 4.4390 3.9693 11.83% 4.3094 3.6089 3.8543 19.41% -6.37% Mexican peso - Brazilian real 0.1972 0.1681 17.31% 0.1901 0.1694 0.1871 12.24% -9.50% U.S. dollar - Mexican peso 19.6655 19.6890 -0.12% 19.2363 18.9142 18.6987 1.70% 1.15% U.S. dollar - Euro 0.8729 0.8464 3.13% 0.8471 0.8871 0.9041 -4.50% -1.89% |
Changes in accounting policies | The Company adopted IFRS 15 – Revenue from Contracts with Customers” and “IFRS 9 – Financial Instruments” as of January 1, 2018. Due to the transition methods chosen by the Company to apply these accounting standards, the comparative information throughout these financial statements has not been restated to reflect the requirements of the new standards. The effects from the adoption of these standards are mainly due to the following: · Change in the impairment calculation methodology in accordance with IFRS 9 (Note 7); · Presentation of the variable considerations (bonuses) deducted directly from gross revenue (Note 27); · Change in the classification and measurement of financial assets (Note 2.3(a.2.i)); · Change in the accounting of operations involving dollar put and call options designated for hedge accounting (Note 19.3.1(a.i)). (a.1) IFRS 15 – Revenue from Contracts with Customers IFRS 15 introduces a comprehensive framework to determine if and when revenue must be recognized, and by how much the revenue is measured. IFRS 15 replaces the standards IAS 18 – Revenue. The Company adopted IFRS 15 using the cumulative effect method, with initial application of the standard on the initial date (i.e., January 1, 2018). As a result, the Company did not apply the requirements of IFRS 15 to the comparative period reported (2017). The Company did not incur significant changes at the time or when measuring its sales revenue for the performance obligations identified, which are: · Delivery of goods sold – the performance obligation ends when the ownership of the good is transferred to the client. For the Company, there was no difference between IAS 18 – Revenue and IFRS 15 upon recognition of the revenue associated with this performance obligation. · Contracting freight to deliver goods – the performance obligation of the Company to contract freight to deliver the goods sold ends when the service is completed. The Company did not change the time of recognition, and continue to recognize at the time of the delivery of goods sold. The Company consider immaterial on its profit and loss any change in the time of recognition the performance obligation associated with freight. The Company adopts the practice of contracting with certain clients bonuses for achieving sales targets. For clients which the Company expects will meet such targets and accordingly will receive a bonus are accrued the amounts due on a monthly basis. This provision, which until December 31, 2017 was recognized as a deduction from sales revenue, is presented, as of January 1, 2018, as a deduction from gross revenue. The Company considers commercial discounts included on client invoices as part of the fair value of the revenue recognized, according to that established by the accounting standard (IAS 18) applicable until December 31, 2017. Therefore, the commercial discounts included on client invoices did not result in any changes as a result of adoption or measurement of its accounting recognition in accordance with IFRS 15. (a.2) IFRS 9 – Financial Instruments IFRS 9 – Financial Instruments establishes requirements for recognition and measurement of financial assets, liabilities and some contracts to buy or sell non-financial items. This standard replaces IAS 39 – Financial Instruments: Recognition and Measurement. (a.2.i) Classification – Financial Assets IFRS 9 has a new approach for the classification and measurement of financial assets that reflects the business model in which assets are managed and its cash flow characteristics. IFRS 9 has three main classification categories for financial assets: measured at amortized cost (“AC”), at fair value through other comprehensive income (“FVTOCI”) and at fair value through profit and loss (“FVTPL”). The standard eliminates IAS 39 classifications of held-to-maturity, loans and receivables and available-for-sale. IFRS 9 requires the classification of financial assets based on the business model of the entity for managing their financial assets. Pursuant to IFRS 9, embedded derivatives in contracts where the host is a financial asset under the standard’s scope are never separated. Instead, the hybrid financial instrument is assessed in its entirety for classification. Based on its assessment, the Company did not have a relevant impact on the accounting of its financial investments resulting from new requirements of IFRS9. However, because some trade accounts receivables are sold to financial institutions and derecognized before the maturity date (Note 7), the Company classified part of its trade accounts receivables that could be sold at fair value under FVTOCI. The effect of this new classification on January 1, 2018 was R$601. The following table and corresponding notes explain the original measurement categories, in accordance with IAS 39 and the new categories of measurement in accordance with IFRS 9, for each class of financial asset on January 1, 2018. The effect from the adoption of IFRS 9 on the accounting balance of financial assets as of January 1, 2018 is related to the following: (i) New impairment calculation methodology (ii) Calculation of the fair value for receivables that, in accordance with the Company’s Business Model, may be sold before their maturities. Classification by category Book value IAS 39 IFRS 9 IAS 39 IFRS 9 Cash and cash equivalents Cash and banks Loans and receivables Amortized cost 1,428,766 1,428,766 Financial investments in Brazil Loans and receivables Fair value through profit or loss 1,706,784 1,706,784 Financial investments abroad Held-for-trading Fair value through profit or loss 639,543 639,543 3,775,093 3,775,093 Financial investments LFT's and LF's Held-for-trading Fair value through profit or loss 1,816,889 1,816,889 Time deposit investments Loans and receivables Amortized cost 440,616 440,616 Time deposit investments Held-for-trading Fair value through profit or loss 15,764 15,764 Other Held-for-trading Fair value through profit or loss 39,739 39,739 2,313,008 2,313,008 Trade accounts receivable Loans and receivables Amortized cost 3,244,851 3,235,463 Trade accounts receivable Loans and receivables Fair value through other comprehensive income 73,841 73,240 Derivatives Financial assets measured at fair value Fair value through profit or loss 74,378 74,378 (a.2.ii) Impairment – Financial and Contractual Assets IFRS 9 replaced the “incurred loss” model from IAS 39 for a prospective model of "expected credit losses." This requires a relevant judgment regarding the way in which changes in economic factors affect the expected credit losses, which are determined based on weighted probabilities. The new expected losses model will apply to financial assets measured at AC or FVTPL, excluding investments in equity instruments and contractual assets. According to IFRS 9, provisions for expected losses are measured using one of the following bases: · The 12-month expected credit losses, i.e. expected credit losses from possible default events within 12 months after the reporting date, and whose credit risk does not increase significantly since initial recognition; and · The full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument). The measurement of these credit losses applies when the credit risk of a financial asset at the reporting date has increased significantly since initial recognition. The Company’s assessment indicated that the adoption of the expected credit loss model as required by IFRS 9 on January 1, 2018 resulted in an incremental amount of R$9,388, net of taxes. The judgments of how changes in economic factors affect the expected credit losses of the Company are determined by stages that can be observed in Note 7. (a.2.iii) Hedge Accounting IFRS 9 requires that the Company ensure that hedge accounting relationships are aligned with the Company’s risk management objectives and strategies, and that a more qualitative and prospective approach is applied to assess hedge effectiveness. IFRS 9 also introduces new requirements for rebalancing hedge relations and prohibits the voluntary discontinuation of hedge accounting. Upon adopting IFRS 9, the Company elected to account for changes to fair value of forward points separately, as hedge cost. Thus, as of January 1, 2018, these changes are recognized in other comprehensive income (loss) and accrued in a hedge cost reserve as a separate component in equity and subsequently accounted for in the same way as the cumulative gains or losses in the cash flow hedge reserve. The types of hedge accounting relations presently designated by the Company meet the IFRS 9 requirements and are aligned with the organization's risk management objective and strategy. (a.2.iv) Transition The changes to accounting policies stemming from the adoption of IFRS 9 were applied prospectively, including: (i) Allowed exemption to not restate comparative information from prior periods due to changes in classification and measurement financial instruments, including expected credit losses. (ii) New requirements for hedge accounting. (iii) The following assessments were made based on facts and circumstances in place on the adoption date: · Determination of business model in which the financial asset is held. · Designation and revoking of prior designations of specific financial assets and liabilities measured at FVTPL. |
New or revised pronouncements that are not yet effective | (a) IFRS 16 – Leases This pronouncement replaces the previous standards on leases, including IAS 17 – Leases and the corresponding interpretations, such as IFRIC 4 / SIC 15 and SIC 27. The standard introduces a single and standardized model for the accounting of leases in the balance sheet of the lessees, in which it recognizes a right-of-use asset representing the right to use the leased asset and a lease liability that represents the obligation to pay the lease are recognized. Exemptions from recognition will be allowed for low-value and short-term contracts. In addition, the expenses related to these leases are no longer linear operating lease expense, going in accordance with IFRS 16 to be a cost of depreciation of use rights assets and interest expense on lease obligations. The definition of leasing includes all contracts that entitle the use and control of an identifiable asset, including lease contracts and, potentially, some components of service agreements. The variable elements of the payments related to leases (e.g., a machinery and/or equipment rental contract with part of the payments based on the asset’s productivity) are not considered in the calculation of the liability, and are recorded as operating expenses. The Company will make the transition using the modified retrospective approach, i.e., it will apply the requirements of the commercial lease standard to all existing agreements on the initial adoption date, i.e. January 1, 2019. Therefore, information and balances will not be restated for comparison purposes. The new accounting standard provides practical expedients whose election is optional. The Company intends to adopt the following accounting policies during the transition: · Not to revaluate whether the contract is or contains any lease on the initial adoption date. Instead, will apply IAS 17 to agreements that have been previously identified as leases, using IAS 17 and IFRIC 4; · Opt not to separate non-lease components from lease components, considering them, therefore, as a single lease component; · Not to record contracts with terms above 12 months, that at the transition date, will end within 12 months as from the initial adoption date; · Not to record low-value agreements (R$30 for the company in Brazil or US$10 for foreign subsidiaries), in accordance with the policy defined by the Management. · Exclude the initial costs with measuring the asset from the right of use on the initial adoption date; · Use hindsight, such as determining the term of the lease, if the contract contains options to postpone or terminate the lease, among others; and · Apply a single discount rate to the lease portfolio with reasonably similar characteristics (such as leases with similar remaining lease terms, for a similar class of underlying asset in a similar economic environment and similar financing currencies – “portfolios”). In this context, the Company expects the initial adoption of IFRS 16 to affect its financial statements and internal processes. The most significant impacts are related to: (1) recognition of new assets of right-of-use assets and lease liabilities in the balance sheet; (2) the disclosure of new significant information on lease activities. The Company does not expect significant changes in lease activities in the period between the issuance of these financial statements and the date of initial adoption. The effects expected as of January 1, 2019 are as follows: · Recognition of additional liabilities ranging between R$1,700,000 and R$1,900,000 as corresponding entries to the recognition of right-of-use assets. The amounts reflect the present value of the remaining minimum payments of the rent of existing operating leases; · The agreements that are exempt from recognition because they are short term and/or low value amount to an annual operating expense of approximately R$85,000. Furthermore, as of the reporting date of these Financial Statements, the Company is developing processes and controls to meet the new requirements. (b) IFRIC 23 – Uncertainty on Income Tax Treatment The new interpretation, that Company is obliged to adopt starting from January 1, 2019, establishes requirements for recognition and measurement in situations where the Company has determined, during the process of calculating taxes on net income (income tax and social contribution), the use of tax treatments that could be construed as uncertain and, therefore, could be questioned by the tax authorities. The Company concluded its analyses of the adoption of this standard and did not identify impacts on the financial statements. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies | |
Schedule of subsidiaries and specific purpose entities | Total and voting interest - % Headquarters 2018 2017 2016 Direct and Indirect subsidiaries Alclor Química de Alagoas Ltda ("Alclor") (i) Brazil 100.00 BM Insurance Company Limited ("BM Insurance") (ii) Bermuda 100.00 Braskem America Finance Company ("Braskem America Finance") EUA 100.00 100.00 100.00 Braskem America, Inc. (“Braskem America”) EUA 100.00 100.00 100.00 Braskem Argentina S.A. (“Braskem Argentina”) Argentina 100.00 100.00 100.00 Braskem Austria Finance GmbH ("Braskem Austria Finance") (iii) Austria 100.00 Braskem International GmbH ("Braskem Austria") (iv) Austria 100.00 100.00 Braskem Europe GmbH ("Braskem Alemanha") Germany 100.00 100.00 100.00 Braskem Finance Limited (“Braskem Finance”) Cayman Islands 100.00 100.00 100.00 Braskem Idesa S.A.P.I. ("Braskem Idesa") Mexico 75.00 75.00 75.00 Braskem Idesa Servicios S.A. de CV ("Braskem Idesa Serviços") Mexico 75.00 75.00 75.00 Braskem Incorporated Limited ("Braskem Inc") Cayman Islands 100.00 100.00 100.00 Braskem Mexico Proyectos S.A. de C.V. SOFOM ("Braskem México Sofom") Mexico 100.00 100.00 100.00 Braskem Mexico, S. de RL de CV ("Braskem México") Mexico 100.00 100.00 100.00 Braskem Mexico Servicios S. RL de CV ("Braskem México Serviços") Mexico 100.00 100.00 100.00 Braskem Netherlands B.V. ("Braskem Holanda") Netherlands 100.00 100.00 100.00 Braskem Netherlands Finance B.V. (“Braskem Holanda Finance”) Netherlands 100.00 100.00 100.00 Braskem Netherlands Inc. B.V. (“Braskem Holanda Inc”) Netherlands 100.00 100.00 100.00 Braskem Petroquímica Chile Ltda. (“Braskem Chile”) Chile 100.00 100.00 100.00 Braskem Petroquímica Ltda. ("Braskem Petroquímica") (v) Brazil 100.00 Cetrel S.A. ("Cetrel") Brazil 63.66 63.66 Distribuidora de Água Camaçari S.A. ("DAC") Brazil 63.66 63.66 Lantana Trading Co. Inc. (“Lantana”) Bahamas 100.00 100.00 100.00 Specific Purpose Entity ("SPE") Fundo de Investimento Caixa Júpiter Multimercado Crédito Privado Longo Prazo ("FIM Júpiter") Brazil 100.00 100.00 100.00 Fundo de Investimento Multimercado Crédito Privado Sol (“FIM Sol”) (vi) Brazil 100.00 Fundo de Investimento Santander Netuno Multimercado Crédito Privado Longo Prazo ("FIM Netuno") (vii) Brazil 100.00 (ii) Created in October 2018. (iii) Terminated in January 2016. (iv) Terminated in June 2018. (v) Merged into the Braskem in December 2017. (vi) Contract terminated in 2016. (vii) Multi-asset fund created in December 2018. |
Schedule of functional currencies | Functional currency Subsidiaries Braskem Alemanha Euro BM Insurance, Braskem America, Braskem America Finance, Braskem Holanda, Braskem Holanda Finance, Braskem Holanda Inc. and Braskem México Sofom U.S.dollar Braskem Idesa , Braskem Idesa Serviços, Braskem México and Braskem México Serviços Mexican peso |
Schedule of exchange variation effects | End of period rate at December 31 Average rate Variation 2018 2017 Variation 2018 2017 2016 2018 - 2017 2017 - 2016 U.S. dollar - Brazilizan real 3.8748 3.3080 17.13% 3.6558 3.1925 3.4833 14.51% -8.35% Euro - Brazilian real 4.4390 3.9693 11.83% 4.3094 3.6089 3.8543 19.41% -6.37% Mexican peso - Brazilian real 0.1972 0.1681 17.31% 0.1901 0.1694 0.1871 12.24% -9.50% U.S. dollar - Mexican peso 19.6655 19.6890 -0.12% 19.2363 18.9142 18.6987 1.70% 1.15% U.S. dollar - Euro 0.8729 0.8464 3.13% 0.8471 0.8871 0.9041 -4.50% -1.89% |
Schedule of effect from new accounting standard | Classification by category Book value IAS 39 IFRS 9 IAS 39 IFRS 9 Cash and cash equivalents Cash and banks Loans and receivables Amortized cost 1,428,766 1,428,766 Financial investments in Brazil Loans and receivables Fair value through profit or loss 1,706,784 1,706,784 Financial investments abroad Held-for-trading Fair value through profit or loss 639,543 639,543 3,775,093 3,775,093 Financial investments LFT's and LF's Held-for-trading Fair value through profit or loss 1,816,889 1,816,889 Time deposit investments Loans and receivables Amortized cost 440,616 440,616 Time deposit investments Held-for-trading Fair value through profit or loss 15,764 15,764 Other Held-for-trading Fair value through profit or loss 39,739 39,739 2,313,008 2,313,008 Trade accounts receivable Loans and receivables Amortized cost 3,244,851 3,235,463 Trade accounts receivable Loans and receivables Fair value through other comprehensive income 73,841 73,240 Derivatives Financial assets measured at fair value Fair value through profit or loss 74,378 74,378 |
Application of critical estim_2
Application of critical estimates and judgments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Application Of Critical Estimates And Judgments | |
Schedule of useful life of assets | 2018 2017 Buildings and improvements 3.42 3.36 Machinery, equipment and installations 8.04 8.34 Mines and wells 8.84 8.84 Furniture and fixtures 10.03 10.13 IT equipment 20.13 20.09 Lab equipment 9.53 9.56 Security equipment 9.72 9.77 Vehicles 17.83 17.51 Other 18.82 18.17 |
Risk management (Tables)
Risk management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risk Management | |
Schedule of financial liabilities by maturity | In case Braskem Idesa’s group of lenders decide to request the early amortization of this debt, Braskem’s financial liabilities by maturity, including the amounts due under the Leniency Agreement (Note 23.3), are as shown in the table below. These amounts are calculated from undiscounted cash flows and may not be reconciled with the balance sheet. Maturity Until Between one and Between two and More than one year two years five years five years Total Trade payables 8,435,246 37,252 8,472,498 Borrowings 806,418 6,469,288 5,479,526 26,182,832 38,938,064 Debentures 34,760 118,457 141,972 106,316 401,505 Braskem Idesa borrowings 10,504,592 10,504,592 Derivatives 76,355 55,449 128,765 260,569 Loan to non-controlling shareholder of Braskem Idesa 2,183,830 2,183,830 Leniency agreement (Note 23.3) 341,308 341,308 897,376 409,876 1,989,868 At December 31, 2018 20,198,679 7,021,754 6,647,639 28,882,854 62,750,926 Considering that Braskem Idesa’s group of lenders will remain not requesting the early amortization of this debt, Braskem’s financial liabilities by maturity, including the amounts due under the Leniency Agreement (Note 23.3), are as shown in the table below. These amounts are calculated from undiscounted cash flows and may not be reconciled with the balance sheet. Maturity Until Between one and Between two and More than one year two years five years five years Total Trade payables 8,435,246 37,252 8,472,498 Borrowings 806,418 6,469,288 5,479,526 26,182,832 38,938,064 Debentures 34,760 118,457 141,972 106,316 401,505 Braskem Idesa borrowings 995,741 2,482,602 2,835,154 7,353,752 13,667,249 Derivatives 76,355 55,449 128,765 260,569 Loan to non-controlling shareholder of Braskem Idesa 2,183,830 2,183,830 Leniency agreement (Note 23.3) 341,308 341,308 897,376 409,876 1,989,868 At December 31, 2018 10,689,828 9,504,356 9,482,793 36,236,606 65,913,583 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | 2018 2017 Cash (i) 2,228,964 1,428,766 Cash equivalents: Domestic market 1,754,561 1,706,784 Foreign market (i) 1,564,112 639,543 Total 5,547,637 3,775,093 (i) On December 31, 2018, cash includes R$963,357 (R$247,286 of cash and R$47,400 of cash equivalents on December 31, 2017) held by subsidiary Braskem Idesa, available for use exclusively in its subsidiary. This item includes cash, bank deposits and highly liquid financial investments available for redemption within three months. These assets are convertible into a known cash amount and are subject to insignificant risk of change in value. Cash equivalents in Brazil are mainly represented by fixed-income instruments and time deposits held by the funds FIM Jupiter and FIM Netuno. Cash equivalents abroad mainly comprise fixed–income instruments issued by highly rated financial institutions (time deposit). |
Financial investments (Tables)
Financial investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Investments | |
Schedule of financial investments | 2018 2017 Amortized cost Time deposit investments (i) 49,630 440,616 Fair value through profit or loss Time deposit investments 15,764 Letras financeiras do tesouro - LFT´s and Letras Financeiras - LF´s (ii) 2,247,272 1,816,889 Restricted funds investments (iii) 9,998 12,404 Other 60,711 27,335 Total 2,367,611 2,313,008 Current assets 2,357,613 2,302,672 Non-current assets 9,998 10,336 Total 2,367,611 2,313,008 (i) In 2017, the amount of R$440,616 was given as guarantee to cover Braskem’s obligation related to the constitution of a reserve account for the project finance of the subsidiary Braskem Idesa. The guarantee was withdrawn in April 2018. (ii) These refer to Brazilian floating-rate government bonds (“LFTs”) issued by the Brazilian federal government and floating-rate bonds (“LFs”) issued by financial institutions. These bonds have original maturity above three months, immediate liquidity in the secondary market and Management expects their realization in the short term. (iii) Restricted funds represent bank deposits with yields of approximately 100% of the Interbank Deposit Rate (“CDI”), and their use is related to the fulfillment of the contractual obligations of the debentures. |
Trade accounts receivable (Tabl
Trade accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade Accounts Receivable | |
Schedule of trade accounts receivable | 2018 2017 Customers Domestic market 1,425,444 1,459,623 Foreign market 1,901,184 2,209,094 Expected credit loss (i) (233,625) (350,025) Total 3,093,003 3,318,692 Current assets 3,075,218 3,281,196 Non-current assets 17,785 37,496 Total 3,093,003 3,318,692 (i) As disclosed in Note 2.4, the IFRS 9 replaced, as from January 1, 2018, the “incurred losses” model of IAS 39 with a prospective model of “expected credit losses,” which requires greater judgment of how the changes in economic factors affect the expected credit losses, which are determined based on the following stages: Stage 1 – when the securities are still performing at this stage, expected credit losses are calculated based on the actual experience of credit loss (write-off) over the last five years, segregating customers in accordance with their Operating Risk. Stage 2 – when there is deterioration in the credit risk of the customer since the initial recognition; at this stage, the Company considers as deterioration of credit risk any credits that were renegotiated and that must be collected in court, regardless of their maturity. Stage 3 – includes financial assets that have objective evidence of impairment; the trigger for evidence of impairment is an unprecedented delay of more than 90 days. |
Schedule of expected credit loss | Estimated loss percentage Trade accounts receivable Allowance for doubtful accounts Stage 1 (Performing) Operation risk 1 No risk 1,977,941 Operation risk 2 No risk 635,549 Operation risk 3 0.27% 268,156 752 Operation risk 4 0.63% 199,499 1,218 Operation risk 5 100% 24 24 3,081,169 1,994 Stage 2 (Significant Increase in Loss Risk) 1st Renegotiation lower than 24 months 12% or 100% 10,533 1,554 2nd Renegotiation greater than 24 months 91% or 100% 2,915 2,876 Legal 100% 172,189 172,189 185,637 176,619 Stage 3 (No payment performance - Indicative of impairment) Between 90 and 180 days 50% or 100% 10,014 5,204 Above 180 days 100% 49,808 49,808 59,822 55,012 Total 3,326,628 233,625 |
Schedule of changes in expected credit loss | 2018 2017 Balance of provision at the beginning of the year (350,025) (380,559) Reversal in the year 99,975 18,573 Write-offs 16,425 22,878 Addition through merger of Cetrel (10,917) Balance of provision at the end of the year (233,625) (350,025) |
Schedule of trade accounts receivable by maturity | 2018 2017 Accounts receivables not past due 2,616,104 2,886,546 Past due securities: Up to 90 days 492,265 567,590 91 to 180 days 10,941 3,673 As of 180 days 207,318 210,908 3,326,628 3,668,717 Expected credit loss (233,625) (350,025) Total customers portfolio 3,093,003 3,318,692 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventories Abstract | |
Schedule of inventory | 2018 2017 Finished goods - 5,542,220 4,255,114 Raw materials, production inputs and packaging - 1,578,523 1,715,757 Maintenance materials - 465,684 365,803 Advances to suppliers - 93,445 275,169 Imports in transit - 838,099 74,670 Total - 8,517,971 6,686,513 - In current assets - 8,486,577 6,640,049 In non-current assets - 31,394 46,464 Total - 8,517,971 6,686,513 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Parties | |
Schedule of related party transactions | Balances at December 31, 2018 Balances at December 31, 2017 Associates companies, Jointly-controlled investment and Related companies Associates companies, Jointly-controlled investment and Related companies Odebrecht and Odebrecht and subsidiaries Petrobras and subsidiaries Petrobras and Balance sheet and associates subsidiaries Other Total and associates subsidiaries Other Total Assets Current Trade accounts receivable 20,119 2,687 22,806 7,634 45,184 60,502 113,320 Inventories 8,665 9(c.i) and 30,193 38,858 250,904 118 251,022 Dividends and interest on capital (c.ii) 890 890 10,859 10,859 Total assets 8,665 50,312 3,577 62,554 258,538 45,302 71,361 375,201 Liabilities Current Trade payables 16,851 160,324 177,175 21,530 149,058 700 171,288 Other payables 2,841 484 3,325 2,338 562 7,591 10,491 Total liabilities 19,692 160,808 180,500 23,868 149,620 8,291 181,779 Twelve-month period ended December 31, 2018 Twelve-month period ended December 31, 2017 Twelve-month period ended December 31, 2016 Associates companies, Jointly-controlled investment and Related companies Associates companies, Jointly-controlled investment and Related companies Associates companies, Jointly-controlled investment and Related companies Odebrecht and Odebrecht and Odebrecht and subsidiaries Petrobras and subsidiaries Petrobras and subsidiaries Petrobras and and associates subsidiaries Other Total and associates subsidiaries Other Total and associates subsidiaries Other Total Transactions Sales of products 1,225,443 736,192 1,961,635 27,467 1,810,789 629,302 2,467,558 49,051 2,023,815 562,709 2,635,575 Purchases of raw materials, finished goods services and utilities 460,480 15,540,144 3,800 16,004,424 742,161 12,795,819 5,664 13,543,644 1,564,103 12,291,190 56,170 13,911,463 Financial income (expenses) (49) (49) 2,056 (39,433) (37,377) (21) 6,452 6,431 Other income 4,214 4,214 General and administrative expenses Post-employment benefits plan ("EPE") Odebrecht Previdência Privada ("Odeprev") 48,514 36,725 36,725 41,845 41,845 Acquisiton of subsidiary 610,000 610,000 |
Schedule of key management personnel | Income statement transactions 2018 2017 2016 Remuneration Short-term benefits 60,922 60,303 44,277 Post-employment benefit 989 664 515 Long term incentive plan 4,404 Total 66,315 60,967 44,792 |
Taxes recoverable (Tables)
Taxes recoverable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Taxes Recoverable | |
Schedule of taxes recoverable | 2018 2017 Parent Company and subsidiaries in Brazil IPI 9,050 18,226 Value-added tax on sales and services (ICMS) - normal operations (a) 427,331 483,248 ICMS - credits from PP&E 170,998 140,904 Social integration program (PIS) and social contribution on revenue 482 22,389 PIS and COFINS - credits from PP&E 255,739 223,297 IR e CSL 553,740 691,697 REINTEGRA program (b) 20,615 102,166 Federal supervenience (c) 688,111 140,537 Other 2,852 4,322 Foreign subsidiaries Value-added tax ("IVA") 173,051 92,119 IR 111,948 46,939 Other 7,750 4,021 Total 2,421,667 1,969,865 Current assets 847,088 982,629 Non-current assets 1,574,579 987,236 Total 2,421,667 1,969,865 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Abstract | |
Schedule of investments | Interest in total and Net profit (loss) voting capital (%) - 2018 for the year Equity Direct and indirect 2018 2017 2016 2018 2017 Jointly-controlled investment RPR 33.20 6,358 106,109 86,682 99,672 201,038 Odebrecht Comercializadora de Energia S.A. ("OCE") (i) (48) (543) (5,720) 5,178 Associates Borealis 20.00 (2,900) 17,752 10,538 163,884 166,630 |
Schedule of changes in investments | Equity in results Dividends of investees Equity Balance at and interest Effect Goodwill valuation Balance at 2017 on equity of results amortization adjustments 2018 Domestic associate Borealis 33,325 (549) 32,776 OCE 1,036 (9) (1,027) RPR 66,752 (32,060) 2,106 (3,704) 33,094 Other 145 (61) 84 |
Schedule of impact on the consolidation of Braskem Idesa | Balance sheet Consolidated Braskem without the effect of Braskem Idesa consolidated Braskem Idesa consolidated (i) Eliminations Consolidated 2018 2017 2018 2017 2018 2017 2018 2017 Assets Curent Cash and cash equivalents 4,584,280 3,480,407 963,357 294,686 5,547,637 3,775,093 Financial investments 2,357,613 2,302,672 2,357,613 2,302,672 Trade accounts receivable 2,574,791 2,809,034 627,879 620,531 (127,452) (148,369) 3,075,218 3,281,196 Inventories 7,907,429 6,293,324 579,148 346,725 8,486,577 6,640,049 Taxes recoverable 737,399 919,600 109,689 63,029 847,088 982,629 Other receivables 379,560 392,750 340,122 44,630 719,682 437,380 18,541,072 16,197,787 2,620,195 1,369,601 (127,452) (148,369) 21,033,815 17,419,019 Non-current (ii) Taxes recoverable 1,574,518 987,184 61 52 1,574,579 987,236 Deferred tax 114,000 129,469 990,158 1,036,257 1,104,158 1,165,726 Related parties 6,137,206 5,051,706 (ii) (6,137,206) (5,051,706) Other receivables 546,892 637,549 47,217 33,207 594,109 670,756 Property, plant and equipment 20,102,981 19,180,263 12,365,063 11,228,346 (iii) (708,154) (646,999) 31,759,890 29,761,610 Intangible 2,562,722 2,575,567 178,260 151,930 2,740,982 2,727,497 31,038,319 28,561,738 13,580,759 12,449,792 (6,845,360) (5,698,705) 37,773,718 35,312,825 Total assets 49,579,391 44,759,525 16,200,954 13,819,393 (6,972,812) (5,847,074) 58,807,533 52,731,844 Liabilities and shareholders' equity Current Trade payables 8,099,755 5,047,293 368,949 159,872 (127,452) (148,369) 8,341,252 5,058,796 Borrowings 737,436 1,184,781 737,436 1,184,781 Debentures 27,732 27,183 27,732 27,183 Braskem Idesa Borrowings 10,504,592 9,691,450 10,504,592 9,691,450 Payroll and related charges 617,079 609,883 28,317 20,634 645,396 630,517 Taxes payable 488,472 881,702 12,801 13,067 501,273 894,769 Other payables 1,932,548 1,019,346 75,849 57,581 2,008,397 1,076,927 11,903,022 8,770,188 10,990,508 9,942,604 (127,452) (148,369) 22,766,078 18,564,423 Non-current Loan agreements 24,160,720 22,176,640 24,160,720 22,176,640 Braskem Idesa Borrowings 266,777 286,141 266,777 286,141 Accounts payable to related parties 6,147,768 5,065,971 (ii) (6,147,768) (5,065,971) Loan to non-controlling shareholders of Braskem Idesa (v) 2,183,830 1,756,600 2,183,830 1,756,600 Provision for losses on subsidiaries 2,871,819 2,689,769 (iv) (2,871,819) (2,689,769) Other payables 3,765,110 4,467,398 10,348 7,842 3,775,458 4,475,240 31,064,426 29,619,948 8,341,946 6,830,413 (9,019,587) (7,755,740) 30,386,785 28,694,621 Shareholders' equity Attributable to the Company's shareholders 6,531,070 6,300,300 (3,131,500) (2,953,624) 3,131,500 2,953,625 6,531,070 6,300,301 Non-controlling interest om subsidiaries 80,873 69,089 (957,273) (896,590) (876,400) (827,501) 6,611,943 6,369,389 (3,131,500) (2,953,624) 2,174,227 2,057,035 5,654,670 5,472,800 Total liabilities and shareholders' equity 49,579,391 44,759,525 16,200,954 13,819,393 (6,972,812) (5,847,074) 58,807,533 52,731,844 (i) Consolidation of Braskem Idesa with its direct subsidiary Braskem Idesa Serviços. (ii) Loan from Braskem Holanda as part of shareholders’ contribution to the Braskem Idesa project. (iii) Adjustment corresponding to the capitalization of a portion of financial charges of the abovementioned loan. (iv) Provision recorded in the subsidiary Braskem Holanda for the negative shareholders' equity of Braskem Idesa. (v) Loan owed to the non-controlling shareholder as part of shareholders’ contribution to the project. Statement of profit or loss Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2018 2017 2016 2018 2017 2016 2018 2017 2016 2018 2017 2016 Net revenue 54,851,243 46,207,109 46,343,171 3,766,371 3,656,801 1,495,018 (617,748) (603,316) (174,201) 57,999,866 49,260,594 47,663,988 Cost of products sold (44,783,284) (34,675,494) (34,040,770) (2,314,998) (2,125,031) (1,109,020) 667,062 623,117 164,221 (46,431,220) (36,177,408) (34,985,569) 10,067,959 11,531,615 12,302,401 1,451,373 1,531,770 385,998 49,314 19,801 (9,980) 11,568,646 13,083,186 12,678,419 Income (expenses) Selling and distribution (1,355,986) (1,287,817) (1,286,558) (189,582) (171,791) (117,115) (1,545,568) (1,459,608) (1,403,673) General and administrative (1,524,480) (1,336,072) (1,201,489) (108,191) (122,043) (123,855) (332) 23,843 39,731 (1,633,003) (1,434,272) (1,285,613) Research and development (199,821) (167,456) (162,010) (199,821) (167,456) (162,010) Results from equity investments 76,821 191,949 (923,096) (77,709) (151,993) 953,174 (888) 39,956 30,078 Other income (expenses), net (208,252) (887,185) (3,913,567) 299,104 32,305 7,613 90,852 (854,880) (3,905,954) 6,856,241 8,045,034 4,815,681 1,452,704 1,270,241 152,641 (28,727) (108,349) 982,925 8,280,218 9,206,926 5,951,247 Financial results Financial expenses (2,227,544) (3,044,668) (3,054,334) (1,090,019) (973,952) (688,868) 310,012 271,403 172,240 (3,007,551) (3,747,217) (3,570,962) Financial income 867,185 850,367 955,423 31,879 24,666 3,193 (310,012) (271,403) (268,494) 589,052 603,630 690,122 Exchange rate variations, net (2,014,205) (936,804) (2,115,993) (232,064) 132,186 (1,094,424) (10,714) 5,856 (2,256,983) (798,762) (3,210,417) (3,374,564) (3,131,105) (4,214,904) (1,290,204) (817,100) (1,780,099) (10,714) 5,856 (96,254) (4,675,482) (3,942,349) (6,091,257) Profit before income tax and social contribution 3,481,677 4,913,929 600,777 162,500 453,141 (1,627,458) (39,441) (102,493) 886,671 3,604,736 5,264,577 (140,010) IR and CSL - current and deferred (639,394) (1,057,699) (1,039,107) (97,157) (299,983) 423,061 (736,551) (1,357,682) (616,046) (639,394) (1,057,699) (1,039,107) (97,157) (299,983) 423,061 (736,551) (1,357,682) (616,046) Profit (loss) for the year of continued operations 2,842,283 3,856,230 (438,330) 65,343 153,158 (1,204,397) (39,441) (102,493) 886,671 2,868,185 3,906,895 (756,056) Discontinued operations results Profit from discontinued operations 13,499 40,760 13,499 40,760 IR and CSL - current and deferred (4,623) (13,901) (4,623) (13,901) 8,876 26,859 8,876 26,859 Profit (loss) for the year 2,842,283 3,865,106 (411,471) 65,343 153,158 (1,204,397) (39,441) (102,493) 886,671 2,868,185 3,915,771 (729,197) Statement of cash flows Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2018 2017 2016 2018 2017 2016 2018 2017 2016 2018 2017 2016 Profit (loss) before income tax and social contribution and for the result with discontinued operations 3,481,677 4,913,929 641,537 162,500 453,141 (1,627,458) (39,441) (102,493) 886,671 3,604,736 5,264,577 (99,250) Adjustments for reconciliation of profit (loss) Depreciation, amortization and depletion 2,228,978 2,230,466 2,381,160 810,581 742,033 331,691 (48,982) (43,644) (29,751) 2,990,577 2,928,855 2,683,100 Results from equity investments (76,821) (191,949) 923,096 77,709 151,993 (953,174) 888 (39,956) (30,078) Interest and monetary and exchange variations, net 4,658,342 2,900,745 1,851,033 1,344,888 802,825 1,229,219 10,714 (5,856) (54,244) 6,013,944 3,697,714 3,026,008 Gain on sale of investment in subsidiary (276,816) (276,816) Leniency agreement 375,476 2,853,230 375,476 2,853,230 Reversal of provisions 23,725 (223,340) 23,725 (223,340) PIS and COFINS credits - exclusion of ICMS from the calculation basis (519,830) (519,830) Provision for losses and write-offs of long-lived assets 69,270 212,759 40,530 3,200 425 486 72,470 213,184 41,016 9,865,341 9,941,270 8,690,586 2,321,169 1,998,424 (66,062) (150,498) 12,186,510 11,939,694 8,474,026 Changes in operating working capital Financial investments 98,349 (953,228) (649,535) 98,349 (953,228) (649,535) Trade accounts receivable 158,378 (1,304,474) 1,083,117 (7,348) (373,066) (126,617) (20,917) 79,148 51,375 130,113 (1,598,392) 1,007,875 Inventories (1,337,618) (1,387,696) 966,974 (199,672) 36,668 (104,636) (1,537,290) (1,351,028) 862,338 Taxes recoverable 1,068,637 415,923 976,770 (46,395) 53,370 81,334 1,022,242 469,293 1,058,104 Prepaid expenses (67,051) (21,732) 64,029 (38,112) (8,789) (105,163) (30,521) 64,029 Other receivables (6,299) 34,500 332,673 (236,392) (8,698) 21,308 (242,691) 25,802 353,981 Trade payables 1,113,381 (1,444,468) (4,052,705) 209,077 (119,033) (150,495) 20,917 (79,148) (51,375) 1,343,375 (1,642,649) (4,254,575) Taxes payable (828,222) (132,697) (674,466) (149,026) (82,817) 382,335 (977,248) (215,514) (292,131) Advances from customers (218,623) (3,089) 207,020 18,665 (10,423) 9,830 (199,958) (13,512) 216,850 Leniency agreement (330,006) (1,343,803) (330,006) (1,343,803) Other payables 299,010 124,050 430,714 417,759 126,087 165,981 716,769 250,137 596,695 Cash from operations 9,815,277 3,924,556 7,375,177 2,289,725 1,611,723 212,978 (150,498) 12,105,002 5,536,279 7,437,657 Interest paid (1,328,420) (1,648,971) (1,611,718) (588,381) (505,082) (215,224) (1,916,801) (2,154,053) (1,826,942) Income tax and social contribution paid (937,557) (919,236) (1,152,847) (274) (1,370) (937,831) (920,606) (1,152,847) Net cash generated by operating activities 7,549,300 1,356,349 4,610,612 1,701,070 1,105,271 (2,246) (150,498) 9,250,370 2,461,620 4,457,868 Proceeds from the sale of fixed assets and intangible assets 95,133 95,133 Proceeds from the sale of investments 81,000 450,000 81,000 450,000 Funds received in the investments´ capital reduction 2,254 2,254 Dividends received 41,791 41,791 Additions to investments in subsidiaries (608,181) (608,181) Acquisitions to property, plant and equipment and intangible assets (2,635,906) (2,185,567) (1,844,510) (70,422) (87,630) (892,499) 150,498 (2,706,328) (2,273,197) (2,586,511) Other investments (2,167) 24,977 34,061 (2,167) 24,977 34,061 Net cash used in investing activities (2,417,895) (2,318,771) (1,810,449) (70,422) (87,630) (892,499) 150,498 (2,488,317) (2,406,401) (2,552,450) Short-term and long-term debt Acquired 4,301,626 8,492,341 4,107,626 4,301,626 8,492,341 4,107,626 Payments (6,592,197) (8,779,091) (4,901,593) (6,592,197) (8,779,091) (4,901,593) Derivative transactions - payments (810,279) (810,279) Braskem Idesa borrowings Acquired 187,959 503,921 187,959 503,921 Payments (812,929) (1,080,502) (469,282) (812,929) (1,080,502) (469,282) Related parties Acquired loans (payment of loans) 72,880 20,637 (882,158) (72,880) (20,637) 882,158 Dividends paid (1,499,900) (998,893) (1,997,984) (1,499,900) (998,893) (1,997,984) Net provided (used) in financing activities (3,717,591) (2,075,285) (3,674,109) (885,809) (913,180) 916,797 (4,603,400) (2,988,465) (2,757,312) Exchange variation on cash of foreign subsidiaries (309,941) 17,849 541,734 (76,168) (11,374) 44,908 (386,109) 6,475 586,642 Increase (decrease) in cash and cash equivalents 1,103,873 (3,019,858) (332,212) 668,671 93,087 66,960 1,772,544 (2,926,771) (265,252) Represented by Cash and cash equivalents at the beginning of the year 3,480,407 6,500,265 6,908,623 294,686 201,599 134,639 3,775,093 6,701,864 7,043,262 Cash and cash equivalents at the end of the year 4,584,280 3,480,407 6,576,411 963,357 294,686 201,599 5,547,637 3,775,093 6,778,010 Increase (decrease) in cash and cash equivalents 1,103,873 (3,019,858) (332,212) 668,671 93,087 66,960 1,772,544 (2,926,771) (265,252) |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |
Schedule of changes in property, plant and equipment | Land Buildings and Improvements Machinery, Equipment and Facilities Projects and Stoppage in Progress (i) Other Total Cost 471,655 5,530,714 36,804,409 3,495,965 1,404,759 47,707,502 Accumulated depreciation/depletion (1,111,642) (16,595,497) (663,653) (18,370,792) Balance as of December 31, 2016 471,655 4,419,072 20,208,912 3,495,965 741,106 29,336,710 Acquisitions 149,018 2,090,157 6,066 2,245,241 Additions for acquisition of subsidiary 14,937 122,846 63,081 46,833 92,052 339,749 Capitalized financial charges 130,272 130,272 Foreign currency translation adjustment 5,600 168,554 387,757 56,425 4,877 623,213 Transfers by concluded projects 29,703 145,622 2,216,704 (2,539,041) 147,012 Disposals (21,249) (5,149) (166,585) (5,946) (12,342) (211,271) Cost (21,249) (7,444) (525,724) (5,946) (21,368) (581,731) Depletion 2,295 359,139 9,026 370,460 Depreciation / depletion (280,448) (2,275,788) (146,068) (2,702,304) Net book value 500,646 4,570,497 20,583,099 3,274,665 832,703 29,761,610 Cost 500,646 6,058,259 39,211,042 3,274,665 1,755,092 50,799,704 Accumulated depreciation/depletion (1,487,762) (18,627,943) (922,389) (21,038,094) Balance as of December 31, 2017 500,646 4,570,497 20,583,099 3,274,665 832,703 29,761,610 Cost - previously disclosed 500,646 6,058,259 39,211,042 3,274,665 1,755,092 50,799,704 Cost - reclassification 68,902 (70,296) 1,038,042 186,606 (92,650) 1,130,604 Cost - reclassified 569,548 5,987,963 40,249,084 3,461,271 1,662,442 51,930,308 Accumulated depreciation/depletion - previously disclosed (1,487,762) (18,627,943) (922,389) (21,038,094) Accumulated depreciation/depletion - reclassification (88,244) (964,517) (77,843) (1,130,604) Accumulated depreciation/depletion - reclassified (1,576,006) (19,592,460) (1,000,232) (22,168,698) Balance as of January 1, 2018 569,548 4,411,957 20,656,624 3,461,271 662,210 29,761,610 Acquisitions 372 201,492 2,439,286 13,199 2,654,349 Capitalized financial charges 178,055 178,055 Foreign currency translation adjustment 32,751 593,228 1,433,855 137,551 30,411 2,227,796 Cost 32,751 674,720 1,727,164 137,551 52,242 2,624,428 Depletion (81,492) (293,309) (21,831) (396,632) Transfers by concluded projects 16,477 1,022,560 (1,106,975) 67,938 Cost 16,477 1,022,560 (1,106,975) 67,938 Depletion Transfers to intangible (2,922) (1,539) (4,461) Cost (2,922) (1,539) (4,461) Depletion Other (2,009) (40,503) (3,873) (1,675) (48,060) Depreciation / depletion (370,035) (2,487,820) (151,544) (3,009,399) Net book value 602,299 4,649,990 20,786,208 5,102,393 619,000 31,759,890 Cost 602,299 6,676,549 43,024,738 5,102,393 1,784,807 57,190,786 Accumulated depreciation/depletion (2,026,559) (22,238,530) (1,165,807) (25,430,896) Balance as of December 31, 2018 602,299 4,649,990 20,786,208 5,102,393 619,000 31,759,890 (i) On December 31, 2018, the main amounts recorded under this item corresponded to expenses with scheduled maintenance shutdowns in Brazil and at overseas plants that are either in the preparation phase or ongoing (R$975,509), capitalized financial charges (R$293,697), inventories of spare parts (R$441,133), strategic projects in Brazil (R$125,541) and the strategic projects of Braskem America (R$1,547,870). The remainder corresponds mainly to various operational projects for maintaining the production capacity of plants. |
Schedule of property, plant and equipment by country | 2018 2017 Brazil 16,278,608 16,665,988 Mexico 11,656,910 10,581,347 United States of America 3,539,495 2,275,987 Germany 273,987 229,328 Other 10,890 8,960 31,759,890 29,761,610 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets | |
Schedule of changes in intangible assets | Goodwill based on Customers expected future Brands Software and Suppliers profitability and Patents licenses Agreements Total Cost 3,187,722 339,512 566,673 772,888 4,866,795 Accumulated amortization (1,128,848) (110,880) (364,336) (453,644) (2,057,708) Balance as of December 31, 2016 2,058,874 228,632 202,337 319,244 2,809,087 Acquisitions 340 27,319 297 27,956 Additions through acquisition on subsidiary 1,316 402 1,718 Foreign currency translation adjustment 8,357 4,759 (932) 12,184 Other 1,107 (124) 983 Cost 1,107 269 1,376 Amortization (393) (393) Amortization (8,349) (43,467) (72,615) (124,431) Net book value 2,058,874 230,087 192,140 246,396 2,727,497 Cost 3,187,722 349,316 607,528 772,253 4,916,819 Accumulated amortization (1,128,848) (119,229) (415,388) (525,857) (2,189,322) Balance as of December 31, 2017 2,058,874 230,087 192,140 246,396 2,727,497 Cost - reclassification (44) 58,515 117,743 121,861 298,075 Cost - reclassified 3,187,678 407,831 725,271 894,114 5,214,894 Accumulated amortization - reclassification 44 (61,252) (108,644) (128,223) (298,075) Accumulated amortization - reclassified (1,128,804) (180,481) (524,032) (654,080) (2,487,397) Balance as of January 1, 2018 2,058,874 227,350 201,239 240,034 2,727,497 Acquisitions 51,707 272 51,979 Foreign currency translation adjustment 23,966 10,037 (185) 33,818 Cost 27,021 21,053 94,351 142,425 Amortization (3,055) (11,016) (94,536) (108,607) Transfers from property, plant and equipment projects and stoppage in progress - 2,532 1,929 4,461 Other (1,003) (1,003) Cost (596,557) (596,557) Amortization 595,554 595,554 Amortization (7,551) (30,780) (37,439) (75,770) Net book value 2,058,874 246,297 234,132 201,679 2,740,982 Cost 3,187,678 437,384 799,960 392,180 4,817,202 Accumulated amortization (1,128,804) (191,087) (565,828) (190,501) (2,076,220) Balance as of December 31, 2018 2,058,874 246,297 234,132 201,679 2,740,982 Average annual rates of amortization 4.96% 11.71% 6.00% |
Schedule of goodwill impairment testing | Book value Allocated Cash flow (with goodwill goodwill (CF) and work capital) CF/Book value CGU and operating segments CGU - Chemicals South 926,854 9,628,209 2,479,778 3.9 Operating segment - Polyolefins 939,667 21,750,937 8,189,204 2.7 Operating segment - Vinyls 192,353 4,617,326 2,763,882 1.7 (i) The carrying amount includes, in addition to goodwill, tangible and intangible assets with defined useful lives and working capital from each operating segment. |
Schedule of sensitivity analysis | +0.5% on -0.5% on discount rate perpetuity CGU and operating segments CGU - Chemicals South 9,099,954 9,249,202 Operating segment - Polyolefins 20,455,434 20,798,767 Operating segment - Vinyls 4,351,801 4,424,347 |
Schedule of intangible assets by country | 2018 2017 Brazil 2,510,503 2,502,231 Mexico 178,261 151,930 United States of America 26,791 47,357 Germany 25,373 25,948 Other 54 31 2,740,982 2,727,497 |
Trade account payables (Tables)
Trade account payables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade Account Payables | |
Schedule or trade account payables | 2018 2017 Trade payables: Domestic market 1,551,554 2,287,767 Foreign market (i) 6,934,598 2,817,917 Present value adjustment - foreign market (107,648) (46,888) 8,378,504 5,058,796 Current liabilities 8,341,252 5,058,796 Non-current liabilities 37,252 8,378,504 5,058,796 (i) |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Borrowings [abstract] | |
Schedule of borrowings | Annual financial charges 2018 2017 Foreign currency Bonds Note 15 (b) 21,930,575 20,082,588 Export prepayment Note 15 (c) 810,542 781,573 Export credit notes Exchange variation + 7.30 (i) 679,895 Working capital US dollar exchange variation + 3.15% 883,181 Working capital Argentine Peso exchange variation 48 Investments Note 15 (d) 620,160 Other - SACE Note 15 (e) 1,147,397 Transactions costs (346,921) (285,657) 24,161,801 22,141,580 Current liabilities 610,922 985,639 Non-current liabilities 23,550,879 21,155,941 Total 24,161,801 22,141,580 Local currency Export credit notes 100.00 of CDI + 0.70 406,258 Export credit notes 105.00 and 108.00 of CDI (i) 508,146 BNDES TJLP + interest between 0.00 and 2.62 (i) 31,347 BNDES SELIC + 2.32 (i) 22,039 BNDES Interest between 3.50 and 4.00 (ii) 52,081 132,020 BNB/ FINEP/ FUNDES/FINISA/FINAME 5.83% (iii) 239,969 486,227 FINAME TJLP + 6.00 555 2,293 Fundo de Desenvolvimento do Nordeste (FDNE) 6.5% 37,099 42,045 Other 19.14% 426 655 Transactions costs (33) (4,931) 736,355 1,219,841 Current liabilities 126,514 199,142 Non-current liabilities 609,841 1,020,699 Total 736,355 1,219,841 Foreign currency and local currency Current liabilities 737,436 1,184,781 Non-current liabilities 24,160,720 22,176,640 Total 24,898,156 23,361,421 (i) Contracts with advanced settlement. (ii) Contracts partially settled in advance in the amount of R$32.287. (iii) Contracts partially settled in advance in the amount of R$138.230. |
Schedule of bonds | Issue amount Interest Issue date US$ Maturity (% per year) 2018 2017 June-2008 500,000 June-2018 7.25 440,274 May-2010 400,000 May-2020 7.00 81,434 159,341 May-2010 350,000 May-2020 7.00 1,370,156 1,169,732 October-2010 (i) 450,000 no maturity date 7.38 985,767 1,514,826 April-2011 750,000 April-2021 5.75 2,676,195 2,502,351 July-2011 500,000 July-2041 7.13 1,997,984 1,705,722 February-2012 250,000 April-2021 5.75 980,304 836,907 February-2012 250,000 no maturity date 7.38 985,767 841,570 May-2012 500,000 May-2022 5.38 1,954,177 1,668,323 July-2012 250,000 July-2041 7.13 998,992 852,861 February-2014 500,000 February-2024 6.45 1,988,773 1,697,859 May-2014 250,000 February-2024 6.45 994,387 848,929 October-2017 500,000 January-2023 3.50 1,969,609 1,667,025 October-2017 1,250,000 January-2028 4.50 4,947,030 4,176,868 Total 6,700,000 21,930,575 20,082,588 (i) Part of the contracts settled in the amount of R$825,720. |
Schedule of export pre-payment | Initial amount of the transaction Issue date (US$ thousand) Maturity Charges (% per year) 2018 2017 January-2013 200,000 November-2022 US dollar exchange variation + semiannual Libor + 1.10 311,082 331,701 September-2017 135,000 March-2017 US dollar exchange variation + semiannual Libor + 1.61 499,460 449,872 Total 335,000 810,542 781,573 |
Schedule of capital raised for investments | Initial amount of the transaction Issue date (US$) Maturity Charges (% per year) 2018 2017 July-2018 (i) 158,150 December-2028 Us dollar exchange variation + semianual Libor + 0.65 620,160 Total 158,150 620,160 (i) US$130,650 released in July 2018, US$13,677 released in September 2018 and US$13,823 released in December 2018. |
Schedule of others - SACE | Initial amount of the transaction Issue date (US$) Maturity Charges (% per year) 2018 2017 November-2018 295,125 November-2028 Us dollar exchange variation + semianual Libor + 0.90 1,147,397 Total 295,125 1,147,397 |
Schedule of long-term maturities | 2018 2017 2019 1,245,895 2020 1,748,531 2,199,869 2021 3,933,857 3,655,465 2022 2,256,444 1,801,844 2023 2,355,549 1,709,587 2024 3,336,032 2,539,216 2025 234,270 45,994 2026 234,296 44,239 2027 205,157 17,586 2028 and thereafter 9,856,584 8,916,945 Total 24,160,720 22,176,640 |
Schedule of guarantees | Total Total Loans Maturity debt 2018 guaranteed Guarantees BNB December-2022 88,909 88,909 Mortgage of plants, pledge of machinery and equipment BNB March-2023 32,093 32,093 Bank surety BNDES January-2021 52,081 52,081 Mortgage of plants, land and property, pledge of machinery and equipment FUNDES June-2020 47,929 47,929 Mortgage of plants, land and property, pledge of machinery and equipment FINEP July-2024 61,725 61,725 Bank surety FINEP December-2019 2,872 2,872 Bank surety, pledge of equipment and current account lockout (restricted fund). FINAME April-2021 1,496 1,496 Pledge of equipment FINISA December-2023 5,500 5,500 Bank surety OTHER July-2021 424 424 Pledge of equipment Total 293,029 293,029 |
Braskem Idesa Financing (Tables
Braskem Idesa Financing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Braskem Idesa Financing | |
Schedule of Braskem Idesa Financing | Initial value of operation Identification US$ Maturity Charges (% per year) 2018 2017 Project finance (i) Project finance I 700,000 February-2027 Us dollar exchange variation + quarterly Libor + 3.25 2,335,825 2,179,981 Project finance II 210,000 February-2027 Us dollar exchange variation + 6.17 657,689 621,140 Project finance III 600,000 February-2029 Us dollar exchange variation + 4.33 1,983,113 1,827,811 Project finance IV 660,000 February-2029 Us dollar exchange variation + quarterly Libor + 3.88 2,225,042 2,032,093 Project finance V 400,000 February-2029 Us dollar exchange variation + quarterly Libor + 4.65 1,326,901 1,221,997 Project finance VI 89,994 February-2029 Us dollar exchange variation + quarterly Libor + 2.73 297,158 273,887 Project finance VII 533,095 February-2029 Us dollar exchange variation + quarterly Libor + 4.64 1,768,389 1,627,479 Transactions costs (89,525) (92,938) Total 3,193,089 10,504,592 9,691,450 Current liabilities 10,504,592 9,691,450 Total 10,504,592 9,691,450 |
Schedule of amortization | 2018 2017 2019 748,071 2020 1,016,916 877,450 2021 1,161,108 1,002,270 2022 968,519 835,009 2023 1,280,154 1,105,295 2024 1,385,087 1,195,682 2025 1,381,192 1,195,096 2026 1,194,964 1,052,156 2027 582,393 474,438 2028 and thereafter 584,143 422,266 Total 9,554,476 8,907,733 |
Debentures (Tables)
Debentures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debentures Abstract | |
Schedule of debentures | Issue date Series Maturity Annual financial charges (%) 2018 2017 March-2013 Single March-2025 IPCA + 6% 210,506 216,968 September-2013 Single September-2025 126,5% of CDI 84,003 96,356 294,509 313,324 Current liabilities 27,732 27,183 Non-current liabilities 266,777 286,141 Total 294,509 313,324 |
Schedule of long-term debenture maturity | 2018 2017 2019 26,629 2020 44,811 43,674 2021 50,722 49,326 2022 50,745 49,326 2023 50,769 49,326 2024 50,796 49,326 2025 18,934 18,534 Total 266,777 286,141 |
Reconciliation of financing a_2
Reconciliation of financing activities in statement of cash flow (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reconciliation Of Financing Activities In Statement Of Cash Flow | |
Schedule of reconciliation of financing activities in statement of cash flow | Current and non-current Borrowings, debentures and Braskem Idesa financing Total borrowings Braskem Idesa Borrowings Debentures and debentures financing Total Dividends Balance at December 31, 2017 23,361,421 313,324 23,674,745 9,691,450 33,366,195 3,850 Acquired 4,301,626 4,301,626 4,301,626 Payments (6,569,073) (23,124) (6,592,197) (812,929) (7,405,126) (1,499,900) Cash used in financing activities (2,267,447) (23,124) (2,290,571) (812,929) (3,103,500) (1,499,900) Other changes Interest paid (1,304,811) (23,609) (1,328,420) (588,381) (1,916,801) Interest and monetary and exchange variations, net 3,703,892 27,918 3,731,810 604,837 4,336,647 Currency translation adjustments 1,405,101 1,405,101 1,609,615 3,014,716 Additional dividends approved in the boar meeting 1,500,000 Mandatory minimum dividends 667,419 Prescribed dividends / other 1,026 3,804,182 4,309 3,808,491 1,626,071 5,434,562 2,168,445 Balance at December 31, 2018 24,898,156 294,509 25,192,665 10,504,592 35,697,257 672,395 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments | |
Schedule of non-derivative financial instruments and leniency agreement | Fair value Book value Fair value Note Classification by category hierarchy 2018 2017 2018 2017 Cash and cash equivalents 5 Cash and banks Amortized cost 2,228,964 1,428,766 2,228,964 1,428,766 Financial investments in Brazil Fair value through profit or loss Level 2 1,754,561 1,706,784 1,754,561 1,706,784 Financial investments abroad Fair value through profit or loss Level 2 1,564,112 639,543 1,564,112 639,543 5,547,637 3,775,093 5,547,637 3,775,093 Financial investments 6 Letras financeiras do tesouro - LFT Fair value through profit or loss Level 2 2,247,272 1,816,889 2,247,272 1,816,889 Time deposit investments Amortized cost Level 2 49,630 440,616 49,630 440,616 Time deposit investments Fair value through profit or loss Level 2 15,764 15,764 Other Fair value through profit or loss Level 2 70,709 39,739 70,709 39,739 2,367,611 2,313,008 2,367,611 2,313,008 Trade accounts receivable 6 Amortized cost 3,045,463 3,244,851 3,045,463 3,244,851 Trade accounts receivable 6 Fair value through profit or loss Level 2 47,540 73,841 47,540 73,240 Trade payables 14 Amortized cost 8,378,516 5,058,796 8,378,504 5,058,796 Borrowings 15 Amortized cost Foreign currency - Bond Level 1 21,930,575 20,082,588 22,028,040 21,230,567 Foreign currency - other borrowings Level 2 2,578,147 2,344,649 2,277,069 2,228,608 Local currency Level 2 736,388 1,224,772 598,926 1,039,873 25,245,110 23,652,009 24,904,035 24,499,048 Braskem Idesa borrowings 16 Amortized cost Level 2 10,594,117 9,784,388 9,367,878 8,675,711 Debentures 17 Amortized cost Level 2 294,509 313,324 239,976 214,815 Loan ton non-controlling shareholder of Braskem Idesa Amortized cost 2,183,830 1,756,600 2,183,830 1,756,600 Leniency agreement 23.3 Amortized cost 1,842,518 2,004,590 1,842,518 2,004,590 |
Schedule of changes in derivative financial instruments | Net Net Operation characteristics (Asset)/ (Asset)/ Fair value Principal exposure Accumulated Liability Change in Financial Liability Identification Note hierarchy Derivatives OCI (equity) 2017 fair value settlement 2018 Non-hedge accounting transactions Exchange swap Level 2 Argentine peso Dollar 752 (235) 517 NCE swap Level 2 Real Dollar 5,231 5,231 5,983 (235) 5,748 Hedge accounting transactions Dollar put option 19.3.1 (a.i) Level 2 Real Dollar (40,338) (3,793) 39,932 36,139 Dollar swap 19.3.1 (a.ii) Level 2 CDI Dollar+Interests (183,808) 183,398 183,398 Interest rate swaps 19.3.1 (a.iii) Level 2 Libor Fixed rates (209,067) (25,791) (41,590) (283) (67,664) (433,213) (29,584) 181,740 (283) 151,873 Derivatives Current assets (3,793) (27,714) Non-current assets (32,666) (46,664) Current liabilities 6,875 70,305 Non-current liabilities 161,694 (29,584) 157,621 |
Schedule of interest rate swap linked to Libor | Identification Nominal value Hedge Maturity Fair value US$ (interest rate per year) 2018 2017 Swap Libor I to VI 1,312,892 1.9825% May-2025 (67,664) (25,791) Total 1,312,892 (67,664) (25,791) Derivatives Current assets (21,000) Non-Current assets (46,664) (32,666) Current liabilities 6,875 Total (67,664) (25,791) |
Schedule of non-derivative financial liabilities designated to hedge accounting | Total nominal value US$ 2019 733,980 2020 723,999 2021 716,000 2022 719,000 2023 718,372 2024 688,854 2028 1,250,000 5,550,205 |
Schedule of financial liability maturity | Total nominal value US$ 2019 733,980 2020 723,999 2021 716,000 2022 719,000 2023 718,372 2024 688,854 2028 1,250,000 5,550,205 |
Schedule of exchange variation | Conversion rate Total nominal at Inception Closing rate Gross nominal value US$ R$/US$ R$/US$ value First quarter 189,325 2.0017 3.3082 247,353 Second quarter 208,405 2.0017 3.2769 265,758 Third quarter 193,190 2.0017 3.3080 252,364 Fourth quarter 196,973 2.0017 3.3080 257,307 787,893 1,022,782 |
Schedule of changes in foreign exchange variation and income tax and social contribution | Exchange Net variation IR and CSL effect At December 31, 2017 (6,814,142) 2,316,808 (4,497,334) Exchange variation recorded in the period on OCI / IR and CSL (3,145,857) 1,069,591 (2,076,266) Exchange variation transferred to profit or loss / IR and CSL 1,022,782 (347,746) 675,036 At December 31, 2018 (8,937,217) 3,038,653 (5,898,564) |
Schedule of hedged exports | Total nominal value US$ First quarter 150,000 Second quarter 183,495 Third quarter 183,495 Fourth quarter 216,990 733,980 |
Schedule of designated and unrealized sales | Nominal value US$ 2019 229,270 2020 266,690 2021 303,392 2022 253,204 2023 333,093 2024 359,559 2025 357,903 2026 309,240 2027 152,103 2028 124,654 2029 31,164 2,720,272 |
Schedule of financial instruments designated for hedge | US$ Sales in Hedge 2017 the year discontinued 2018 Designated balance 2,930,246 (221,790) 400 2,708,856 |
Schedule of designated financial liabilities maturities | Nominal value US$ 2019 228,850 2020 266,187 2021 302,816 2022 252,723 2023 332,458 2024 358,873 2025 357,221 2026 308,650 2027 150,419 2028 124,347 2029 26,312 2,708,856 |
Schedule of discontinued hedge accounting | Conversion rate Total nominal at Inception Closing rate Total nominal Gross nominal value US$ MXN/US$ MXN/US$ value MXN value Hedge descontinued 11,416 13.4541 17.9915 51,799 8,707 51,799 8,707 |
Schedule of exchange variation - Braskem Idesa | Conversion rate Total nominal at Inception Closing rate Total nominal Gross nominal value US$ MXN/US$ MXN/US$ value MXN value First quarter 53,889 13.6649 18.6631 269,348 46,934 Second quarter 55,136 13.6560 19.4484 319,370 59,371 Third quarter 56,383 13.6536 18.8320 291,974 60,810 Fourth quarter 56,382 13.6537 20.2473 371,757 69,455 221,790 1,252,449 236,570 |
Schedule of changes in foreign exchange variation and income tax and social contribution - Braskem Idesa | Exchange Net variation IR effect At December 31, 2017 (3,545,639) 1,064,426 (2,481,213) Exchange variation recorded in the period on OCI / IR 16,681 (5,004) 11,677 Exchange variation transferred to profit or loss / IR 236,570 (70,971) 165,599 At December 31, 2018 (3,292,388) 988,451 (2,303,937) |
Schedule of hedged exports - Braskem Idesa | Nominal value US$ First quarter 56,382 Second quarter 56,383 Third quarter 57,629 Fourth quarter 58,876 229,270 |
Schedule of trade accounts receivable by credit ratings | On December 31, 2018, the credit ratings for the domestic and foreign market were as follows: (%) 2018 1 Minimum risk 67.50 2 Low risk 18.60 3 Moderate risk 7.61 4 High risk 5.02 5 Very high risk (i) 1.27 On December 31, 2017, the credit ratings for the domestic market were as follows: (%) 2017 1 Minimum risk 18.84 2 Low risk 50.84 3 Moderate risk 13.33 4 High risk 13.40 5 Very high risk (i) 3.59 (i) Most clients in this group are inactive and the respective accounts are in the process of collection actions in the courts. Clients in this group that are still active buy from Braskem and pay in advance. |
Schedule of default indicators | Last 12 months Domestic market Export market December 31, 2018 0.08% 0.45% December 31, 2017 0.08% 0.19% December 31, 2016 0.18% 0.04% |
Schedule of financial assets with and without risk assessment | 2018 2017 Financial assets with risk assessment AAA 4,294,100 3,569,392 AA+ 1,175,098 27,094 AA 79,136 8,047 AA- 1,076 209,389 A+ 1,103,647 1,465,107 A 165,899 349,823 A- 169,580 BBB+ 917,541 453,367 BB+ 252 BB- 29 7,906,358 6,082,219 Financial assets without risk assessment Other financial assets with no risk assessment (i) 8,890 5,882 8,890 5,882 Total 7,915,248 6,088,101 (i) Investments approved by the Management of the Company, in accordance with the financial policy. |
Schedule of sensitivity analysis | Gain (losses) Possible adverse Extreme adverse Instrument / Sensitivity Probable (25%) (50%) Brazilian real/U.S. dollar exchange rate Bonds 418,995 (5,426,211) (10,852,422) Braskem Idesa borrowings 204,511 (2,648,529) (5,297,058) Export prepayments 15,647 (202,635) (405,271) Investments 11,972 (155,040) (310,080) Sace 22,150 (286,849) (573,699) Dollar put option 31,532 (708,357) (2,000,912) Dollar swap 38,308 (353,647) (717,505) Swap NCE 7,865 (101,872) (203,747) Financial investments abroad 70,689 (915,461) (1,830,922) Libor floating interest rate Export prepayments (5,133) (25,665) (51,330) Swaps 13,747 67,773 133,197 Braskem Idesa borrowings (82,386) (411,928) (823,857) CDI interest rate Export credit notes (884) (21,986) (58,762) Debentures 9,416 232 (10,035) Financial investments in local currency 26,228 67,665 135,371 IPCA interest rate Debentures (5,879) (21,556) (44,125) TJLP interest rate FINAME (5) (15) (31) |
Taxes payable (Tables)
Taxes payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Taxes Payable | |
Schedule of taxes payable | 2018 2017 Brazil IPI 64,672 60,917 IR and CSL 57,664 405,567 ICMS 239,126 257,720 PIS and COFINS 145,090 82,140 Other 36,454 52,926 Other countries IR 11,604 66,059 Value-added tax 7,482 22,242 Other 25,085 Total 587,177 947,571 Current liabilities 501,273 894,769 Non-current liabilities 85,904 52,802 Total 587,177 947,571 |
Income tax (''IR'') and socia_2
Income tax (''IR'') and social contribution (''CSL'') (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Ir And Social Contribution | |
Schedule of income tax and social contribution reconciliation | 2018 2017 2016 Income before IR and CSL and after discontinued operations 3,604,736 5,264,577 (140,010) IR and CSL at the rate of 34% (1,225,610) (1,789,956) 47,603 Permanent adjustments to the IR and CSL calculation basis IR and CSL on equity in results of investees (302) 2,201 10,227 IR and CSL accrued in previous years (46,460) Deferred tax losses and negative base 39,092 Tax benefits (Sudene and PAT) 87,186 Difference of rate applicable to each country (i) 468,129 250,130 81,638 Fine in leniency agreement (117,140) (692,299) Other permanent adjustments 21,232 170,805 (16,755) Effect of IR and CSL on results of operations (736,551) (1,357,682) (616,046) Breakdown of IR and CSL: Current IR and CSL (509,774) (869,493) (898,845) Deferred IR and CSL (226,777) (488,189) 282,799 Total (736,551) (1,357,682) (616,046) (i) Includes the impact from the difference between IR/CSL tax rate in Brazil (34%) used for the preparation of this note and the tax rates in countries where the subsidiaries abroad are located, as follows: |
Schedule of foreign income tax rates | Official rate - % Headquarters (Country) 2018 Braskem Alemanha Germany 31.18 Braskem America e Braskem America Finance (i) USA 21.00 Braskem Argentina Argentina 30.00 Braskem Chile Chile 27.00 Braskem Holanda, Braskem Holanda Finance and Braskem Holanda Inc Netherlands 25.00 Braskem Idesa, Braskem Idesa Serviços, Braskem México Braskem México Serviços and Braskem México Proyectos Mexico 30.00 (i) In fiscal year 2018, the rate was changed from 35.00% to 21.00%. |
Schedule of changes in deferred taxes | Assets As of December 31, 2016 Impact on the P&L Impact on the equity Cetrel consolidated As of December 31, 2017 Impact on the P&L Impact on the equity As of December 31, 2018 Tax losses (IR) and negative base (CSL) 2,420,376 (590,037) 48,470 1,878,809 142,769 2,021,578 Goodwill amortized 4,624 (708) 55,419 59,335 (20,053) 39,282 Exchange variations 464,947 (76,654) 388,293 (348,334) 39,959 Temporary adjustments 717,868 (564,239) (7,946) 9,857 155,540 646,630 802,170 Business combination 191,250 (7,465) 183,785 (24,213) 159,572 Tax credits 176,290 176,290 3,799,065 (1,239,103) (7,946) 113,746 2,665,762 573,089 3,238,851 Liabilities Amortization of goodwill based on future profitability 767,277 (54,404) 712,873 10,463 723,336 Tax depreciation 867,922 92,280 960,202 49,710 1,009,912 Temporary adjustments 316,991 (85,169) 231,822 44,878 276,700 Business combination 198,381 (197,079) 8,362 9,664 (8,362) 1,302 Additional indexation PP&E 118,202 (51,130) 67,072 (9,905) 57,167 Hedge accounting (606,877) 606,877 700,351 (700,351) Deferred on health plans 15,269 (15,269) Amortization of fair value adjustments on the assets from the acquisiton of Quattor 263,808 255,815 519,623 (75,548) 444,075 Long term incentive plan - LTI (2,072) 2,072 Other 123,892 (104,350) (15,269) 4,273 90,351 (90,841) 3,783 2,656,473 (750,914) 591,608 8,362 2,505,529 799,866 (789,120) 2,516,275 Net 1,142,592 (488,189) (599,554) 105,384 160,233 (226,777) 789,120 722,576 Presentation in the balance sheet: Non-current assets 1,653,115 1,165,726 1,104,158 (-) Non-current liabilities 510,523 1,005,493 381,582 |
Schedule of deferred taxes offset for the purpose of presentation in the balance sheet | 2018 Headquarters IR and CSL (Country) Tax calculation Compensation Balance Assets Braskem S.A. Brazil 2,126,658 (2,126,658) Braskem Argentina Argentina 11,337 11,337 Braskem Alemanha Germany 11,251 11,251 Braskem Chile Chile 308 (268) 40 Braskem Idesa Mexico 980,762 980,762 Braskem México Serviços Mexico 9,409 9,409 Cetrel Brazil 26,478 (6,645) 19,833 DAC Brazil 72,648 (1,122) 71,526 3,238,851 (2,134,693) 1,104,158 Liabilities Braskem S.A Brazil 2,239,727 (2,126,658) 113,069 Braskem America USA 268,513 268,513 Braskem Petroquímica Chile Chile 268 (268) Cetrel Brazil 6,645 (6,645) DAC Brazil 1,122 (1,122) 2,516,275 (2,134,693) 381,582 2017 Headquarters IR and CSL (Country) Tax calculation Compensation Balance Assets Braskem S.A. Brazil 1,491,423 (1,491,423) Braskem Argentina Argentina 3,398 3,398 Braskem Alemanha Germany 19,353 19,353 Braskem Chile Chile 251 (251) Braskem Idesa Mexico 1,036,257 1,036,257 Braskem México Serviços Mexico 1,334 1,334 Cetrel Brazil 29,268 (7,454) 21,814 DAC Brazil 84,478 (908) 83,570 2,665,762 (1,500,036) 1,165,726 Liabilities Braskem S.A Brazil 2,272,775 (1,491,423) 781,352 Braskem America USA 223,635 223,635 Braskem Chile Chile 757 (251) 506 Cetrel Brazil 7,454 (7,454) DAC Brazil 908 (908) 2,505,529 (1,500,036) 1,005,493 |
Schedule of deferred income tax and social contribution | Balance at Realization December 31, 2024 Assets Note 2018 2019 2020 2021 2022 2023 thereafter Tax losses (IR) and negative base (CSL) (i) 2,021,578 95,076 122,790 307,069 505,880 990,763 Goodwill amortized 39,282 3,654 3,654 3,654 3,654 3,655 21,011 Exchange variations (ii) 39,959 39,959 Temporary adjustments (iii) 802,170 135,622 72,550 33,556 12,882 11,331 536,229 Business combination (iv) 159,572 33,666 33,666 33,666 29,287 29,287 Tax credits (v) 176,290 176,290 Total assets 3,238,851 444,308 232,660 377,945 551,703 1,035,036 597,199 Liabilities Amortization of goodwill based on future profitability (vi) 723,336 717,529 Tax depreciation (vii) 1,009,912 213,070 326,919 445,962 23,961 Temporary differences (viii) 276,700 65,560 23,374 10,811 4,150 3,651 169,154 Business combination (ix) 1,302 187 187 187 187 187 6,174 Additional indexation PP&E (x) 57,167 4,573 4,573 4,573 4,573 4,573 34,302 Amortization of fair value adjustments on the assets from the acquisiton of Quattor 444,075 35,526 35,526 35,526 35,526 35,526 266,445 Other 3,783 3,783 Total liabilities 2,516,275 318,916 390,579 497,059 68,397 43,937 1,197,387 Net 722,576 125,392 (157,919) (119,114) 483,306 991,099 (600,188) Basis for constitution and realization: (i) In Brazil, the use of tax loss has limit of 30% to the amount of taxable income for the year, but the balance does not expire. In Mexico there is no limit for the year, however, the tax loss expires in 10 years. (ii) In Brazil, the Company opted to tax exchange variation of assets and liabilities denominated in foreign currency under the cash method. Thus, this variation will be realized as assets and liabilities are received/paid. For accounting purposes, exchange variation is recognized under the accrual basis, reason why it is recorded deferred IR and CSL. (iii) Accounting expenses not yet deductible for calculating income tax and social contribution, whose recognition for tax purposes occurs in subsequent periods. (iv) Refers to: tax-related goodwill, and contingencies recognized from business combinations. Tax realization of goodwill will occur upon the merger of the investments and contingencies arising from write-offs due to the settlement or reversal of the processes involved. (v) Tax credits arising from balance of tax paid on profit abroad. (vi) Goodwill for the future profitability of the merged companies not amortized since the adoption of Law 11,638/07. Tax realization is associated with the write-off of goodwill due to impairment or upon divestment. (vii) For calculation of IR and CSL, assets are depreciated at rates higher than those used for accounting purposes. As tax depreciation is exhausted, these deferred IR and CSL start to be realized. (viii) Accounting provisions whose taxation will occur in subsequent periods. (ix) Fair value adjustments on property, plant and equipment and intangible assets identified in business combinations, whose tax realization is based on the depreciation and amortization of these assets. (x) Additional adjustment of property, plant and equipment, whose tax realization is based on the depreciation of assets. |
Sundry provisions (Tables)
Sundry provisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Sundry Provisions | |
Schedule of sundry provisions | Note 2018 2017 Provision for customers rebates (a) 88,026 87,913 Provision for recovery of environmental damages (b) 307,546 300,249 Other 28,970 25,510 Total 424,542 413,672 Current liabilities 191,536 178,676 Non-current liabilities 233,006 234,996 Total 424,542 413,672 |
Schedule of changes in sundry provisions | Recovery of environmental Bonus damage Other Total December 31, 2017 87,913 300,249 25,510 413,672 Additions, inflation adjustments and exchange variation, net 104,431 89,395 8,593 202,419 Write-offs through usage and payments (104,318) (82,098) (5,133) (191,549) December 31, 2018 88,026 307,546 28,970 424,542 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Contingencies Abstract | |
Schedule of claims with probable chance of loss and claims arising from business combinations with possible loss | 2018 2017 Labor claims (a) 177,751 250,075 Tax claims (b) Normal operations IR and CSL 20,717 17,313 PIS and COFINS (i) 156,796 155,681 ICMS (ii) 64,468 76,342 Other tax claims 23,237 13,117 265,218 262,453 Business Combination IR and CSL 1,500 50,051 PIS and COFINS (iii) 59,739 56,135 ICMS - interstate purchases (iv) 280,622 263,538 341,861 369,724 Corporate claims (c) 111,049 135,779 Civil claims and other 69,438 74,614 965,317 1,092,645 |
Schedule of changes in claims with probable chance of loss | Corporate Civil claims Labor claims Tax claims claims and other Total December 31, 2017 250,075 632,177 135,779 74,614 1,092,645 Additions, inflation adjustments and exchange variation 80,685 77,236 8,676 5,001 171,598 Payments (70,553) (40,768) (31,680) (173) (143,174) Reversals (82,456) (61,566) (1,726) (10,004) (155,752) December 31, 2018 177,751 607,079 111,049 69,438 965,317 |
Schedule of claims with probable chance of loss | 2018 2017 Tax claims 6,082,336 6,048,462 Labor claims 992,205 812,400 Civil claims 579,145 693,188 Social security tax claims 125,338 91,824 Other lawsuits 535,802 285,944 Total 8,314,826 7,931,818 |
Benefits offered to team memb_2
Benefits offered to team members (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Benefits Offered To Team Members | |
Schedule of short-term benefits | 2018 2017 2016 Health care 162,338 140,553 139,412 Private pension 84,525 67,008 61,593 Transport 64,714 58,825 55,223 Feeding 33,537 30,916 28,874 Training 27,463 18,285 20,589 Other 18,271 16,173 13,237 390,848 331,760 318,928 |
Schedule of defined benefit obligations | Consolidated 2018 2017 Defined benefit Novamont Braskem America 68,904 62,963 Braskem Alemanha and Netherlands 114,705 93,994 183,609 156,957 Health care Bradesco saúde 90,679 83,233 Total obligations 274,288 240,190 Fair value of plan assets Novamont Braskem America (66,073) (44,823) Braskem Alemanha (1,842) (1,592) (67,915) (46,415) Consolidated net balance (non-current liabilities) 206,373 193,775 |
Schedule of changes in defined benefit obligations | 2018 2017 2016 Balance at beginning of year 240,190 201,516 216,632 Health care 7,446 11,334 2,203 Current service cost 5,842 5,058 4,576 Interest cost 4,906 4,139 3,983 Benefits paid (3,845) (3,399) (3,156) Change plan 1,391 Actuarial losses (gain) (3,713) 9,661 3,590 Exchange variation 22,071 11,881 (26,312) Balance at the end of the year 274,288 240,190 201,516 |
Schedule of changes in fair value plan assets | 2018 2017 2016 Balance at beginning of year 46,415 39,380 46,395 Actual return on plan assets (3,200) 5,115 221 Employer contributions 20,544 4,069 3,569 Benefits paid (3,712) (2,915) (3,087) Exchange variation 7,868 766 (7,718) Balance at the end of the year 67,915 46,415 39,380 |
Schedule of amounts recognized in profit and loss | 2018 2017 2016 Health care 7,446 11,334 2,203 Current service cost 5,842 5,058 4,576 Interest cost 4,906 4,139 3,983 Expected return on plan assets (28) (31) Actuarial losses 2,077 6,069 2,472 20,271 26,572 13,203 |
Schedule of actuarial assumptions | (%) 2018 2017 2016 Health United Health United Health United insurance States Germany Netherlands insurance States Germany Netherlands insurance States Germany Netherlands Discount rate 5.03 4.45 2.00 2.00 5.45 3.70 2.00 2.00 4.18 4.35 2.00 n/a Inflation rate 4.50 n/a 2.00 2.00 4.50 n/a n/a n/a 6.00 n/a 2.00 n/a Expected return on plan assets n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Rate of increase in future salary levels n/a n/a 3.00 3.00 n/a n/a 2.50 2.50 n/a n/a 3.00 n/a Rate of increase in future pension plan n/a n/a 1.75 1.75 n/a n/a 1.75 1.75 n/a n/a 1.75 n/a Aging factor 2.50 n/a n/a n/a 2.50 n/a n/a n/a 2.50 n/a n/a n/a Medical inflation 3.50 n/a n/a n/a 3.50 n/a n/a n/a 3.50 n/a n/a n/a Duration 19.66 n/a n/a n/a 18.84 n/a n/a n/a 29.24 n/a n/a n/a |
Schedule of sensitivity analysis | Impact on the defined benefit obligation Premise change Premise increase Premise reduction Health United Health United Health United insurance States Germany Netherlands insurance States Germany Netherlands insurance States Germany Netherlands Discount rate 1.0% 1.0% 0.5% 0.5% 10,428 7,261 10,802 563 (12,868) (8,802) (11,971) (626) Real medical inflation n/a n/a n/a n/a 15,698 n/a n/a n/a (12,454) n/a n/a n/a Rate of increase in future salary levels n/a n/a 1% 1% n/a n/a 6,256 336 n/a n/a (5,934) (318) Rate of increase in future pension plan 1% n/a 0% 0% n/a n/a 3,087 166 n/a n/a (3,006) (161) Life expectancy 1% n/a 1 year 1 year n/a n/a 2,848 144 n/a n/a (2,973) (150) Mortality rate n/a 10% n/a n/a n/a 1,984 n/a n/a n/a (2,164) n/a n/a Health insurance - Impact on cost of services and interests costs Premise change Premise increase Premise reduction Cost of Iterests Cost of Iterests Cost of Iterests services costs services costs services costs Discount rate 1.0% 1.0% 381 198 (488) (193) Real medical inflation 1.0% 1.0% 344 1,532 (288) (1,215) Rate of increase in future pension plan 1.0% 1.0% 66 216 (67) (221) |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders' equity | |
Schedule of shares distributed | Amount of shares Preferred Preferred Common shares shares shares % class A % class B % Total % Odebrecht 226,334,623 50.11 79,182,498 22.95 305,517,121 38.32 Petrobras 212,426,952 47.03 75,761,739 21.96 288,188,691 36.15 ADR (i) 48,780,072 14.14 48,780,072 6.12 Other 12,907,077 2.86 140,090,605 40.59 500,230 100.00 153,497,912 19.26 Total 451,668,652 100.00 343,814,914 99.64 500,230 100.00 795,983,796 99.85 Treasury shares 1,234,758 0.36 1,234,758 0.15 Total 451,668,652 100.00 345,049,672 100.00 500,230 100.00 797,218,554 100.00 (i) American Depositary Receipts traded on the New York Stock Exchange (USA); |
Schedule of profit allocation and dividends proposed | 2018 Net income for the year of Company's shareholders 2,866,675 Amounts recorded directly to retained earnings Legal reserves distribution (143,334) Tax incentive reserve distribution (81,863) Realization of additional property, plant and equipment 27,679 Prescribed dividends / other 517 2,669,674 Allocations: Minimum dividends - 25% adjusted net income (667,419) Additional dividends proposed (2,002,255) (2,669,674) |
Schedule of other comprehensive income | Attributed to shareholders' interest Deemed cost Fair value Defined Foreign and additional adjustments of Gain (loss) Foreign benefit currency Total indexation of trade accounts on interest sales Fair value plans actuarial translation Braskem Non-controlling PP&E receivable in subsidiary hedge of hedge Gain (loss) adjustment shareholders' interest in (ii) (iii) (i) (iv) (iv) (v) (vi) interest Braskem Idesa Total On December 31, 2015 234,904 (9,404) (9,666,973) (685,396) (39,232) 1,105,391 (9,060,710) (476,708) (9,537,418) Additional indexation Realization by depreciation or write-off assets (41,268) (41,268) (41,268) Income tax and social contribution 14,032 14,032 14,032 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,461) (1,461) (1,461) Income tax and social contribution 496 496 496 Foreign sales hedge Exchange rate 2,625,551 2,625,551 (498,767) 2,126,784 Transfer to result 1,342,785 1,342,785 14,959 1,357,744 Income tax and social contribution (1,406,740) (1,406,740) 145,326 (1,261,414) Fair value of Cash flow hedge Change in fair value 247,815 247,815 (736) 247,079 Transfer to result (19,434) (19,434) (12,135) (31,569) Income tax and social contribution (79,194) (79,194) 3,861 (75,333) Fair value of cash flow hedge from jointly-controlled (3,309) (3,309) (3,309) Actuarial loss with post-employment benefits, net of taxes (4,119) (4,119) (4,119) Foreign currency translation adjustment 63,697 63,697 275,599 339,296 On December 31, 2016 206,703 (9,404) (7,105,377) (539,518) (43,351) 1,169,088 (6,321,859) (548,601) (6,870,460) Additional indexation Realization by depreciation or write-off assets (40,678) (40,678) (40,678) Income tax and social contribution 13,831 13,831 13,831 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,459) (1,459) (1,459) Income tax and social contribution 496 496 496 Foreign sales hedge Exchange rate (42,507) (42,507) 118,179 75,672 Transfer to result 1,145,602 1,145,602 40,924 1,186,526 Income tax and social contribution (355,960) (355,960) (47,731) (403,691) Fair value of Cash flow hedge Change in fair value 876,636 876,636 6,513 883,149 Transfer to result (287,576) (287,576) 9,632 (277,944) Income tax and social contribution (198,343) (198,343) (4,844) (203,187) Fair value of cash flow hedge from jointly-controlled 3,534 3,534 3,534 Actuarial loss with post-employment benefits, net of taxes (8,654) (8,654) (8,654) Foreign currency translation adjustment 51,445 51,445 (52,047) (602) On December 31, 2017 178,893 (9,404) (6,358,242) (145,267) (52,005) 1,220,533 (5,165,492) (477,975) (5,643,467) Attributed to shareholders' interest Deemed cost and additional indexation of PP&E (ii) Fair value adjustments of trade accounts receivable (iii) Gain (loss) on interest in subsidiary (i) Foreign sales hedge (iv) Fair value of hedge (iv) Defined benefit plans actuarial Gain (loss) (v) Foreign currency translation adjustment (vi) Total Braskem shareholders' interest Non-controlling interest in Braskem Idesa Total On December 31, 2017 178,893 (9,404) (6,358,242) (145,267) (52,005) 1,220,533 (5,165,492) (477,975) (5,643,467) Additional indexation Realization by depreciation or write-off assets (40,481) (40,481) (40,481) Income tax and social contribution 13,764 13,764 13,764 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,458) (1,458) (1,458) Income tax and social contribution 496 496 496 Fair value adjustments Accounts receivable (449) (449) Foreign sales hedge Exchange rate (3,133,346) (3,133,346) 4,170 (3,129,176) Transfer to result 1,200,209 1,200,209 59,143 1,259,352 Income tax and social contribution 664,864 664,864 (18,994) 645,870 Fair value of Cash flow hedge Change in fair value (449) (196,790) (196,790) 7,722 (189,068) Transfer to result 26,964 26,964 10,386 37,350 Income tax and social contribution 59,914 59,914 (5,433) 54,481 Fair value of cash flow hedge from jointly-controlled (2,329) (2,329) (2,329) Actuarial loss with post-employment benefits, net of taxes (1,569) (1,569) (1,569) ILP PLan fair value Change in fair value 9,297 9,297 133 9,430 Income tax and social contribution (2,891) (2,891) (2,891) Foreign currency translation adjustment 946,342 946,342 (145,119) 801,223 (Loss) investment gains (65) (65) 65 On December 31, 2018 151,214 5,957 (9,469) (7,626,515) (257,508) (53,574) 2,166,875 (5,623,020) (565,902) (6,188,922) (i) Transfer to the income statement when divestment or transfer of control of subsidiary. (ii) Transfer to retained earnings as the asset is depreciated or written-off/sold. (iii) For receivables classified as fair value through other comprehensive income, transfer to the income statement when attainment of jurisdiction or early liquidation. For the ILP Plan, Transfer to retained earnings according to the grace period of the plan. (iv) Transfer to the income statement when maturity, prepayment or loss of efficacy for hedge accounting. (v) Transfer to retained earnings when the extinction of the plan. (vi) Transfer to the income statement when write-off of subsidiary abroad. |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share [abstract] | |
Schedule of earnings per share reconciliation | Basic and diluted 2018 2017 2016 Profit (loss) for the year attributed to Company's shareholders of continued operations 2,827,650 3,856,564 (442,430) Distribution of priority dividends attributable to: Preferred shares class "A" 208,450 208,416 Preferred shares class "B" 303 351 208,753 208,767 Distribution of 6% of unit value of common shares 273,840 273,827 Distribution of plus income, by class: Common shares 1,331,513 1,915,805 Preferred shares class "A" 1,013,544 1,458,165 2,345,057 3,373,970 Reconciliation of income available for distribution, by class (numerator): Common shares 1,605,353 2,189,632 (251,222) Preferred shares class "A" 1,221,994 1,666,581 (191,208) Preferred shares class "B" 303 351 2,827,650 3,856,564 (442,430) Weighted average number of shares, by class (denominator): Common shares 451,668,652 451,668,652 451,668,652 Preferred shares class "A" 343,808,699 343,775,864 343,771,165 Preferred shares class "B" 512,660 578,330 795,990,011 796,022,846 795,439,817 Profit (loss) per share (in R$) Common shares 3.5543 4.8479 (0.5562) Preferred shares class "A" 3.5543 4.8479 (0.5562) Preferred shares class "B" 0.5910 0.6069 2018 Preferred shares Class "A" Class "B" Outstanding Weighted Outstanding Weighted shares average shares average Amount at beginning of year 343,775,864 343,775,864 578,330 578,330 Conversion of preferred shares class "B" to "A" 39,050 32,835 (78,100) (65,670) Amount at the end of the year 343,814,914 343,808,699 500,230 512,660 2016 Preferred shares Preferred shares Class "A" Outstanding Weighted shares average Amount at beginning of year 343,768,220 343,768,220 Conversion of preferred shares class "B" to "A" 7,644 2,945 Amount at the end of the year 343,775,864 343,771,165 |
Net revenues (Tables)
Net revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Net Revenues | |
Schedule of sales and service revenue | 2018 2017 2016 Sales revenue Domestic market Revenue 42,189,365 34,983,265 32,293,042 Rebates (45,290) (35,538) (25,400) 42,144,075 34,947,727 32,267,642 Foreign market Revenue 26,577,433 23,297,304 23,084,703 Rebates (58,188) (60,990) (23,820) 26,519,245 23,236,314 23,060,883 68,663,320 58,184,041 55,328,525 Sales and services deductions Taxes Domestic market (10,219,138) (8,663,707) (7,316,325) Foreign market (36,562) (33,798) (102,831) Sales returns Domestic market (148,918) (125,153) (168,625) Foreign market (258,836) (100,789) (76,756) (10,663,454) (8,923,447) (7,664,537) Net sales and services revenue 57,999,866 49,260,594 47,663,988 |
Schedule of revenue by country | 2018 2017 2016 Brazil 31,801,222 26,147,559 24,640,077 United States 9,887,701 8,539,972 7,965,209 Argentina 1,166,191 1,336,440 1,244,267 United Kingdom 366,328 202,830 589,725 Germany 1,385,482 1,192,287 1,198,760 Mexico 4,168,140 3,408,385 2,075,695 Italy 650,605 604,546 667,265 Netherlands 293,315 333,134 262,289 Singapore 756,069 542,866 1,101,156 Switzerland 315,254 415,729 227,504 Colombia 363,497 340,396 369,359 Spain 329,458 282,854 342,154 Chile 686,646 554,237 522,796 Peru 540,495 493,654 397,186 Uruguay 155,571 122,251 122,783 Japan 245,208 126,956 1,631,564 Poland 260,449 231,716 252,508 Paraguay 214,959 174,783 185,432 France 135,094 166,314 236,727 Bolivia 250,048 163,862 211,382 Canada 290,453 235,612 242,492 South Korea 314,517 339,430 254,512 Other 3,423,164 3,304,781 2,923,146 57,999,866 49,260,594 47,663,988 |
Schedule of revenue by product | 2018 2017 2016 PE/PP 37,979,148 33,105,714 30,790,364 Ethylene, Propylene 4,283,709 3,351,805 2,906,796 Naphtha, condensate and crude oil 248,313 135,165 2,582,257 Benzene, toluene and xylene 2,785,400 2,683,406 2,411,031 PVC/Caustic Soda/EDC 3,167,390 3,066,879 3,016,390 ETBE/Gasoline 2,928,993 2,433,360 2,058,952 Butadiene 2,023,465 1,819,387 1,315,892 Cumene 909,409 578,482 501,958 Solvents 476,311 401,455 379,745 Other 3,197,729 1,684,941 1,700,603 57,999,866 49,260,594 47,663,988 |
Other income (expenses), net (T
Other income (expenses), net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income Expenses Net | |
Schedule of other income (expenses), net | Note 2018 2017 2016 Bonus to employees (375,360) (399,828) (361,796) Expenses from fixed assets (40,061) (205,929) (53,774) Allowance for judicial and labor claims (83,280) (119,919) (169,973) Fine on supply contract of raw material, net (i) 336,533 PIS and COFINS credits - exclusion of ICMS from the calculation basis 10(c) 235,919 Capital gain - sale of Quantiq 276,816 Recovery of environmental damages (89,395) (102,466) (182,600) Leniency agreement 23.3(a) (375,476) (2,860,402) Other 106,496 71,922 (277,409) 90,852 (854,880) (3,905,954) (i) The contractual penalty for failing to supply feedstock to the subsidiary Braskem Idesa is R$338,125. |
Financial results (Tables)
Financial results (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Results | |
Schedule of financial results | 2018 2017 2016 Financial income Interest income 530,007 512,051 646,727 Other 59,045 91,579 43,395 589,052 603,630 690,122 Financial expenses (2,084,780) (2,219,503) (2,447,481) Monetary variations on fiscal debts (33,429) (191,101) (249,578) Customer discounts granted (141,223) (137,389) (108,606) Loans transaction costs (89,982) (64,771) (56,020) Adjustment to present value (296,065) (284,992) (507,744) (362,072) (849,461) (201,533) (3,007,551) (3,747,217) (3,570,962) Exchange rate variations, net On financial assets 1,268,741 216,381 (1,139,676) On financial liabilities (3,525,724) (1,015,143) (2,070,741) (2,256,983) (798,762) (3,210,417) (4,675,482) (3,942,349) (6,091,257) |
Expenses by nature and functi_2
Expenses by nature and function (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Expenses By Nature And Function | |
Schedule of expenses by nature and function | 2018 2017 2016 Classification by nature: Raw materials other inputs (38,889,949) (29,364,996) (28,197,875) Personnel expenses (2,412,118) (2,173,640) (2,576,107) Outsourced services (2,306,048) (2,120,001) (2,135,412) Depreciation, amortization and depletion (2,990,577) (2,928,855) (2,677,672) Freights (2,275,375) (2,058,574) (1,918,973) Costs of idle industrial plants (138,242) (67,593) (60,944) Other income (expenses), net (706,451) (1,379,965) (4,175,836) Total (49,718,760) (40,093,624) (41,742,819) Classification by function: Cost of products sold (46,431,220) (36,177,408) (34,985,569) Selling and distribution (1,545,568) (1,459,608) (1,403,673) General and administrative (1,633,003) (1,434,272) (1,285,613) Research and development (199,821) (167,456) (162,010) Other income (expenses), net 90,852 (854,880) (3,905,954) Total (49,718,760) (40,093,624) (41,742,819) |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Information | |
Schedule of results by segment | 2018 Operating expenses Net Cost of Selling, general Results from Other operating sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net profit (loss) Reporting segments Chemicals 31,111,650 (27,464,046) 3,647,604 (756,719) (139,393) 2,751,492 Vinyls 3,167,390 (2,889,519) 277,871 (169,377) (18,416) 90,078 Polyolefins 22,483,866 (19,255,377) 3,228,489 (1,310,080) (93,465) 1,824,944 USA and Europe 11,724,776 (9,126,392) 2,598,384 (610,384) 10,656 1,998,656 Mexico 3,770,506 (2,333,849) 1,436,657 (296,391) 305,457 1,445,723 Total 72,258,188 (61,069,183) 11,189,005 (3,142,951) 64,839 8,110,893 Other segments 292,435 (173,608) 118,827 (34,819) (103) 83,905 Corporate unit 265,438 (i) 265,438 (200,622) (888) 26,116 (i) 90,044 Braskem consolidated before eliminations and reclassifications 72,816,061 (61,242,791) 11,573,270 (3,378,392) (888) 90,852 8,284,842 Eliminations and reclassifications (14,816,195) 14,811,571 (4,624) (4,624) Total 57,999,866 (46,431,220) 11,568,646 (3,378,392) (888) 90,852 8,280,218 2017 Operating expenses Net Cost of Selling, general Results from Other operating sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net profit (loss) Reporting segments Chemicals 25,179,288 (20,478,914) 4,700,374 (773,396) (197,275) 3,729,703 Vinyls 3,066,879 (2,572,774) 494,105 (162,989) (163,374) 167,742 Polyolefins 19,650,398 (15,432,179) 4,218,219 (1,321,575) (177,518) 2,719,126 USA and Europe 9,854,496 (7,419,261) 2,435,235 (582,672) (21,279) 1,831,284 Mexico 3,600,820 (2,097,471) 1,503,349 (283,318) 27,914 1,247,945 Total 61,351,881 (48,000,599) 13,351,282 (3,123,950) (531,532) 9,695,800 Other segments 83,720 (65,743) 17,977 (13,391) (2,430) 2,156 Corporate unit (61,384) 39,956 (320,918) (ii) (342,346) Braskem consolidated before eliminations and reclassifications 61,435,601 (48,066,342) 13,369,259 (3,198,725) 39,956 (854,880) 9,355,610 Eliminations and reclassifications (12,175,007) 11,888,934 (286,073) 137,389 (148,684) Total 49,260,594 (36,177,408) 13,083,186 (3,061,336) 39,956 (854,880) 9,206,926 2016 Operating expenses Net Cost of Selling, general Results from Other operating sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net profit (loss) Reporting segments Chemicals 25,062,602 (20,248,175) 4,814,427 (680,083) (409,920) 3,724,424 Vinyls 3,016,390 (2,815,184) 201,206 (236,771) (71,880) (107,445) Polyolefins 20,307,367 (15,980,935) 4,326,432 (1,284,665) (199,098) 2,842,669 USA and Europe 8,896,071 (6,080,722) 2,815,349 (497,810) (71,000) 2,246,539 Mexico 1,586,927 (1,152,047) 434,880 (231,795) (4,805) 198,280 Total 58,869,357 (46,277,063) 12,592,294 (2,931,124) (756,703) 8,904,467 Other segments 12,202 (14,760) (2,558) (1,876) (20,864) (25,298) Corporate unit (33,582) 30,078 (3,128,387) (iii) (3,131,891) Braskem consolidated before eliminations and reclassifications 58,881,559 (46,291,823) 12,589,736 (2,966,582) 30,078 (3,905,954) 5,747,278 Eliminations and reclassifications (11,217,571) 11,306,254 88,683 115,286 203,969 Total 47,663,988 (34,985,569) 12,678,419 (2,851,296) 30,078 (3,905,954) 5,951,247 |
Schedule of property, plant and equipment and intangible assets by segment | 2018 2017 Reporting segments Chemicals 10,916,874 11,136,125 Polyolefins 4,985,337 5,072,162 Vinyls 2,334,270 2,433,882 USA and Europe 3,875,566 2,587,302 Mexico 11,835,170 10,733,277 Total 33,947,217 31,962,748 Unallocated amounts 553,655 526,359 Total 34,500,872 32,489,107 |
Insurance coverage (Tables)
Insurance coverage (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Coverage | |
Schedule of insurance policy information | Maximum indemnity limit Amount insured Maturity US$ million R$ million US$ million R$ million Units in Brazil April 10, 2020 3,375 13,077 26,406 102,318 Units in United States and Germany April 10, 2020 500 1,937 2,037 7,893 Units in Mexico April 10, 2020 2,936 11,376 6,068 23,512 Total 34,511 133,723 |
Summary of significant accoun_4
Summary of significant accounting policies (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subsidiary 1 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Alclor Química de Alagoas Ltda (""Alclor"") | ||
Headquarters | Brazil | ||
Total voting interest | 100.00% | ||
Subsidiary 2 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | BM Insurance Company Limited (""BM Insurance"") | ||
Headquarters | Bermuda | ||
Total voting interest | 100.00% | ||
Subsidiary 3 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem America Finance Company (""Braskem America Finance"") | ||
Headquarters | EUA | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Subsidiary 4 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem America, Inc. (“Braskem America”) | ||
Headquarters | EUA | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Subsidiary 5 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Argentina S.A. (“Braskem Argentina”) | ||
Headquarters | Argentina | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Subsidiary 6 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Austria Finance GmbH (""Braskem Austria Finance"") | ||
Headquarters | Austria | ||
Total voting interest | 100.00% | ||
Subsidiary 7 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem International GmbH (""Braskem Austria"") | ||
Headquarters | Austria | ||
Total voting interest | 100.00% | 100.00% | |
Subsidiary 8 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Europe GmbH (""Braskem Alemanha"") | ||
Headquarters | Germany | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Subsidiary 9 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Finance Limited (“Braskem Finance”) | ||
Headquarters | Cayman Islands | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Subsidiary 10 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Idesa S.A.P.I. (""Braskem Idesa"") | ||
Headquarters | Mexico | ||
Total voting interest | 75.00% | 75.00% | 75.00% |
Subsidiary 11 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Idesa Servicios S.A. de CV (""Braskem Idesa Serviços"") | ||
Headquarters | Mexico | ||
Total voting interest | 75.00% | 75.00% | 75.00% |
Subsidiary 12 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Incorporated Limited (""Braskem Inc"") | ||
Headquarters | Cayman Islands | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Subsidiary 13 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Mexico Proyectos S.A. de C.V. SOFOM (""Braskem México Sofom"") | ||
Headquarters | Mexico | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Subsidiary 14 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Mexico, S. de RL de CV (""Braskem México"") | ||
Headquarters | Mexico | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Subsidiary 15 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Mexico Servicios S. RL de CV (""Braskem México Serviços"") | ||
Headquarters | Mexico | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Subsidiary 16 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Netherlands B.V. (""Braskem Holanda"") | ||
Headquarters | Netherlands | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Subsidiary 17 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Netherlands Finance B.V. (“Braskem Holanda Finance”) | ||
Headquarters | Netherlands | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Subsidiary 18 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Netherlands Inc. B.V. (“Braskem Holanda Inc”) | ||
Headquarters | Netherlands | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Subsidiary 19 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Petroquímica Chile Ltda. (“Braskem Chile”) | ||
Headquarters | Chile | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Subsidiary 20 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Braskem Petroquímica Ltda. (""Braskem Petroquímica"") | ||
Headquarters | Brazil | ||
Total voting interest | 100.00% | ||
Subsidiary 21 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Cetrel S.A. (""Cetrel"") | ||
Headquarters | Brazil | ||
Total voting interest | 63.66% | 63.66% | |
Subsidiary 22 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Distribuidora de Água Camaçari S.A. (""DAC"") | ||
Headquarters | Brazil | ||
Total voting interest | 63.66% | 63.66% | |
Subsidiary 23 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Lantana Trading Co. Inc. (“Lantana”) | ||
Headquarters | Bahamas | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Specific Purpose Entity 1 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Fundo de Investimento Caixa Júpiter Multimercado Crédito Privado Longo Prazo (""FIM Júpiter"") | ||
Headquarters | Brazil | ||
Total voting interest | 100.00% | 100.00% | 100.00% |
Specific Purpose Entity 2 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Fundo de Investimento Multimercado Crédito Privado Sol (“FIM Sol”) | ||
Headquarters | Brazil | ||
Total voting interest | 100.00% | ||
Specific Purpose Entity 3 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary/Special Purpose Entity name | Fundo de Investimento Santander Netuno Multimercado Crédito Privado Longo Prazo (""FIM Netuno"") | ||
Headquarters | Brazil | ||
Total voting interest | 100.00% |
Summary of significant accoun_5
Summary of significant accounting policies (Details 1) | 12 Months Ended |
Dec. 31, 2018 | |
Braskem Alemanha | |
Disclosure of subsidiaries [line items] | |
Functional currency | Euro |
BM Insurance, Braskem America, Braskem America Finance, Braskem Holanda, Braskem Holanda Finance, Braskem Holanda Inc. and Braskem México Sofom | |
Disclosure of subsidiaries [line items] | |
Functional currency | U.S.dollar |
Braskem Idesa , Braskem Idesa Serviços, Braskem México and Braskem México Serviços | |
Disclosure of subsidiaries [line items] | |
Functional currency | Mexican peso |
Summary of significant accoun_6
Summary of significant accounting policies (Details 2) | 12 Months Ended | ||
Dec. 31, 2018R$ / $R$ / €R$ / $$ / $€ / $ | Dec. 31, 2017R$ / $R$ / €R$ / $$ / $€ / $ | Dec. 31, 2016R$ / $R$ / €R$ / $$ / $€ / $ | |
U.S. Dollar - Brazilian Real | |||
DisclosureOfCurrencyExchangeRatesLineItems [Line Items] | |||
End of period exchange rate | 3.8748 | 3.308 | |
End of period exchange rate, variation | 17.13% | ||
Average exchange rate | 3.6558 | 3.1925 | 3.4833 |
Average exchange rate, variation | 14.51% | (8.35%) | |
Euro - Brazilian Real | |||
DisclosureOfCurrencyExchangeRatesLineItems [Line Items] | |||
End of period exchange rate | R$ / € | 4.439 | 3.9693 | |
End of period exchange rate, variation | 11.83% | ||
Average exchange rate | R$ / € | 4.3094 | 3.6089 | 3.8543 |
Average exchange rate, variation | 19.41% | (6.37%) | |
Mexican Peso - Brazilian Real | |||
DisclosureOfCurrencyExchangeRatesLineItems [Line Items] | |||
End of period exchange rate | 0.1972 | 0.1681 | |
End of period exchange rate, variation | 17.31% | ||
Average exchange rate | 0.1901 | 0.1694 | 0.1871 |
Average exchange rate, variation | 12.24% | (9.50%) | |
U.S. Dollar - Mexican Peso | |||
DisclosureOfCurrencyExchangeRatesLineItems [Line Items] | |||
End of period exchange rate | $ / $ | 19.6655 | 19.689 | |
End of period exchange rate, variation | (0.12%) | ||
Average exchange rate | $ / $ | 19.2363 | 18.9142 | 18.6987 |
Average exchange rate, variation | 1.70% | 1.15% | |
U.S. Dollar - Euro | |||
DisclosureOfCurrencyExchangeRatesLineItems [Line Items] | |||
End of period exchange rate | € / $ | 0.8729 | 0.8464 | |
End of period exchange rate, variation | 3.13% | ||
Average exchange rate | € / $ | 0.8471 | 0.8871 | 0.9041 |
Average exchange rate, variation | (4.50%) | (1.89%) |
Summary of significant accoun_7
Summary of significant accounting policies (Details 3) R$ in Thousands | Dec. 31, 2017BRL (R$) |
Cash and banks | IAS 39 | |
Disclosure of financial assets [line items] | |
Assets at amortized cost | R$ 1428766 |
Cash and banks | IFRS 9 | |
Disclosure of financial assets [line items] | |
Assets at amortized cost | 1,428,766 |
Financial investments in Brazil | IAS 39 | |
Disclosure of financial assets [line items] | |
Assets at fair value through profit or loss | 1,706,784 |
Financial investments in Brazil | IFRS 9 | |
Disclosure of financial assets [line items] | |
Assets at fair value through profit or loss | 1,706,784 |
Financial investments abroad | IAS 39 | |
Disclosure of financial assets [line items] | |
Assets at fair value through profit or loss | 639,543 |
Financial investments abroad | IFRS 9 | |
Disclosure of financial assets [line items] | |
Assets at fair value through profit or loss | 639,543 |
Cash and cash equivalents | IAS 39 | |
Disclosure of financial assets [line items] | |
Assets at fair value through other comprehensive income | 3,775,093 |
Cash and cash equivalents | IFRS 9 | |
Disclosure of financial assets [line items] | |
Assets at fair value through other comprehensive income | 3,775,093 |
LFT's and LF's | IAS 39 | |
Disclosure of financial assets [line items] | |
Assets at fair value through profit or loss | 1,816,889 |
LFT's and LF's | IFRS 9 | |
Disclosure of financial assets [line items] | |
Assets at fair value through profit or loss | 1,816,889 |
Time deposit investments | IAS 39 | |
Disclosure of financial assets [line items] | |
Assets at amortized cost | 440,616 |
Time deposit investments | IFRS 9 | |
Disclosure of financial assets [line items] | |
Assets at amortized cost | 440,616 |
Time deposit investments | IAS 39 | |
Disclosure of financial assets [line items] | |
Assets at fair value through profit or loss | 15,764 |
Time deposit investments | IFRS 9 | |
Disclosure of financial assets [line items] | |
Assets at fair value through profit or loss | 15,764 |
Other | IAS 39 | |
Disclosure of financial assets [line items] | |
Assets at fair value through profit or loss | 39,739 |
Other | IFRS 9 | |
Disclosure of financial assets [line items] | |
Assets at fair value through profit or loss | 39,739 |
Financial investments | IAS 39 | |
Disclosure of financial assets [line items] | |
Total | 2,313,008 |
Financial investments | IFRS 9 | |
Disclosure of financial assets [line items] | |
Total | 2,313,008 |
Trade accounts receivable | IAS 39 | |
Disclosure of financial assets [line items] | |
Assets at amortized cost | 3,244,851 |
Trade accounts receivable | IFRS 9 | |
Disclosure of financial assets [line items] | |
Assets at amortized cost | 3,235,463 |
Trade accounts receivable | IAS 39 | |
Disclosure of financial assets [line items] | |
Assets at fair value through other comprehensive income | 73,841 |
Trade accounts receivable | IFRS 9 | |
Disclosure of financial assets [line items] | |
Assets at fair value through other comprehensive income | 73,240 |
Derivatives | IAS 39 | |
Disclosure of financial assets [line items] | |
Assets at fair value through profit or loss | 74,378 |
Derivatives | IFRS 9 | |
Disclosure of financial assets [line items] | |
Assets at fair value through profit or loss | R$ 74378 |
Application of critical estim_3
Application of critical estimates and judgments (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Buildings and improvements | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 3.42% | 3.36% |
Machinery, equipment and installations | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 8.04% | 8.34% |
Mines and wells | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 8.84% | 8.84% |
Furniture and fixtures | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 10.03% | 10.13% |
IT equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 20.13% | 20.09% |
Lab equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 9.53% | 9.56% |
Security equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 9.72% | 9.77% |
Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 17.83% | 17.51% |
Other | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 18.82% | 18.17% |
Risk management (Details)
Risk management (Details) R$ in Thousands | Dec. 31, 2018BRL (R$) |
If requested | |
Disclosure of financial liabilities [line items] | |
Trade payables | R$ 8472498 |
Borrowings | 38,938,064 |
Debentures | 401,505 |
Braskem Idesa borrowings | 10,504,592 |
Derivatives | 260,569 |
Loan to non-controlling shareholder of Braskem Idesa | 2,183,830 |
Leniency agreement | 1,989,868 |
Total | 62,750,926 |
If requested | Until one year | |
Disclosure of financial liabilities [line items] | |
Trade payables | 8,435,246 |
Borrowings | 806,418 |
Debentures | 34,760 |
Braskem Idesa borrowings | 10,504,592 |
Derivatives | 76,355 |
Loan to non-controlling shareholder of Braskem Idesa | 0 |
Leniency agreement | 341,308 |
Total | 20,198,679 |
If requested | Between one and two years | |
Disclosure of financial liabilities [line items] | |
Trade payables | 37,252 |
Borrowings | 6,469,288 |
Debentures | 118,457 |
Braskem Idesa borrowings | 0 |
Derivatives | 55,449 |
Loan to non-controlling shareholder of Braskem Idesa | 0 |
Leniency agreement | 341,308 |
Total | 7,021,754 |
If requested | Between two and five years | |
Disclosure of financial liabilities [line items] | |
Trade payables | 0 |
Borrowings | 5,479,526 |
Debentures | 141,972 |
Braskem Idesa borrowings | 0 |
Derivatives | 128,765 |
Loan to non-controlling shareholder of Braskem Idesa | 0 |
Leniency agreement | 897,376 |
Total | 6,647,639 |
If requested | More than five years | |
Disclosure of financial liabilities [line items] | |
Trade payables | 0 |
Borrowings | 26,182,832 |
Debentures | 106,316 |
Braskem Idesa borrowings | 0 |
Loan to non-controlling shareholder of Braskem Idesa | 2,183,830 |
Leniency agreement | 409,876 |
Total | 28,882,854 |
Not requested | |
Disclosure of financial liabilities [line items] | |
Trade payables | 8,472,498 |
Borrowings | 38,938,064 |
Debentures | 401,505 |
Braskem Idesa borrowings | 13,667,249 |
Derivatives | 260,569 |
Loan to non-controlling shareholder of Braskem Idesa | 2,183,830 |
Leniency agreement | 1,989,868 |
Total | 65,913,583 |
Not requested | Until one year | |
Disclosure of financial liabilities [line items] | |
Trade payables | 8,435,246 |
Borrowings | 806,418 |
Debentures | 34,760 |
Braskem Idesa borrowings | 995,741 |
Derivatives | 76,355 |
Loan to non-controlling shareholder of Braskem Idesa | 0 |
Leniency agreement | 341,308 |
Total | 10,689,828 |
Not requested | Between one and two years | |
Disclosure of financial liabilities [line items] | |
Trade payables | 37,252 |
Borrowings | 6,469,288 |
Debentures | 118,457 |
Braskem Idesa borrowings | 2,482,602 |
Derivatives | 55,449 |
Loan to non-controlling shareholder of Braskem Idesa | 0 |
Leniency agreement | 341,308 |
Total | 9,504,356 |
Not requested | Between two and five years | |
Disclosure of financial liabilities [line items] | |
Trade payables | 0 |
Borrowings | 5,479,526 |
Debentures | 141,972 |
Braskem Idesa borrowings | 2,835,154 |
Derivatives | 128,765 |
Loan to non-controlling shareholder of Braskem Idesa | 0 |
Leniency agreement | 897,376 |
Total | 9,482,793 |
Not requested | More than five years | |
Disclosure of financial liabilities [line items] | |
Trade payables | 0 |
Borrowings | 26,182,832 |
Debentures | 106,316 |
Braskem Idesa borrowings | 7,353,752 |
Loan to non-controlling shareholder of Braskem Idesa | 2,183,830 |
Leniency agreement | 409,876 |
Total | R$ 36236606 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash | R$ 2228968 | R$ 1428766 | ||
Total | 5,547,637 | 3,775,093 | R$ 6701864 | R$ 7043262 |
Domestic market | ||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash equivalents | 1,754,561 | 1,706,784 | ||
Foreign market | ||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash equivalents | R$ 1564112 | R$ 639543 |
Financial investments (Details)
Financial investments (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfFinancialInvestmentsLineItems [Line Items] | ||
Financial investments | R$ 2367611 | R$ 2313008 |
Current financial investments | 2,357,613 | 2,302,672 |
Noncurrent financial investments | 9,998 | 10,336 |
Amortized cost | Time deposit investments | ||
DisclosureOfFinancialInvestmentsLineItems [Line Items] | ||
Financial investments | 49,630 | 440,616 |
Fair value through profit or loss | Time deposit investments | ||
DisclosureOfFinancialInvestmentsLineItems [Line Items] | ||
Financial investments | 0 | 15,764 |
Fair value through profit or loss | LFT's and LF's | ||
DisclosureOfFinancialInvestmentsLineItems [Line Items] | ||
Financial investments | 2,247,272 | 1,816,889 |
Fair value through profit or loss | Restricted funds investments | ||
DisclosureOfFinancialInvestmentsLineItems [Line Items] | ||
Financial investments | 9,998 | 12,404 |
Fair value through profit or loss | Other | ||
DisclosureOfFinancialInvestmentsLineItems [Line Items] | ||
Financial investments | R$ 60711 | R$ 27335 |
Trade accounts receivable (Deta
Trade accounts receivable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||
Trade accounts receivable, gross | R$ 3326628 | R$ 3668717 | |
Expected credit loss | (233,625) | (350,025) | R$ 380559 |
Trade accounts receivable, net | 3,093,003 | 3,318,692 | |
Current trade accounts receivable | 3,075,218 | 3,281,196 | |
Noncurrent trade accounts receivable | 17,785 | 37,496 | |
Domestic market | |||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||
Trade accounts receivable, gross | 1,425,444 | 1,459,623 | |
Foreign market | |||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||
Trade accounts receivable, gross | R$ 1901184 | R$ 2209094 |
Trade accounts receivable (De_2
Trade accounts receivable (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | R$ 3326628 | R$ 3668717 | |
Allowance for doubtful accounts | 233,625 | R$ 350025 | R$ 380559 |
Stage 1 | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | 3,081,169 | ||
Allowance for doubtful accounts | 1,994 | ||
Stage 1 | Operation risk 1 | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | 1,977,941 | ||
Allowance for doubtful accounts | 0 | ||
Stage 1 | Operation risk 2 | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | 635,549 | ||
Allowance for doubtful accounts | 0 | ||
Stage 1 | Operation risk 3 | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | 268,156 | ||
Allowance for doubtful accounts | 752 | ||
Stage 1 | Operation risk 4 | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | 199,499 | ||
Allowance for doubtful accounts | 1,218 | ||
Stage 1 | Operation risk 5 | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | 24 | ||
Allowance for doubtful accounts | 24 | ||
Stage 2 | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | 185,637 | ||
Allowance for doubtful accounts | 176,619 | ||
Stage 2 | 1st Renegotiation lower than 24 months | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | 10,533 | ||
Allowance for doubtful accounts | 1,554 | ||
Stage 2 | 2nd Renegotiation greater than 24 months | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | 2,915 | ||
Allowance for doubtful accounts | 2,876 | ||
Stage 2 | Legal | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | 172,189 | ||
Allowance for doubtful accounts | 172,189 | ||
Stage 3 | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | 59,822 | ||
Allowance for doubtful accounts | 55,012 | ||
Stage 3 | Between 90 and 180 days | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | 10,014 | ||
Allowance for doubtful accounts | 5,204 | ||
Stage 3 | Above 180 days | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||
Trade accounts receivable | 49,808 | ||
Allowance for doubtful accounts | R$ 49808 |
Trade accounts receivable (De_3
Trade accounts receivable (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Trade Accounts Receivable | ||
Beginning balance | R$ 350025 | R$ 380559 |
Reversal in the year | 99,975 | 18,573 |
Write-offs | 16,425 | 22,878 |
Addition through merger of Cetrel | 0 | (10,917) |
Ending balance | R$ 233625 | R$ 350025 |
Trade accounts receivable (De_4
Trade accounts receivable (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||
Trade accounts receivable, gross | R$ 3326628 | R$ 3668717 | |
Expected credit loss | (233,625) | (350,025) | R$ 380559 |
Trade accounts receivable, net | 3,093,003 | 3,318,692 | |
Not past due | |||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||
Trade accounts receivable, gross | 2,616,104 | 2,886,546 | |
Up to 90 days | |||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||
Trade accounts receivable, gross | 492,265 | 567,590 | |
91 to 180 days | |||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||
Trade accounts receivable, gross | 10,941 | 3,673 | |
As of 180 days | |||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||
Trade accounts receivable, gross | R$ 207318 | R$ 210908 |
Inventories (Details)
Inventories (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventories Abstract | ||
Finished goods | R$ 5542220 | R$ 4255114 |
Raw materials, production inputs and packaging | 1,578,523 | 1,715,757 |
Maintenance materials | 465,684 | 365,803 |
Advances to suppliers | 93,445 | 275,169 |
Imports in transit | 838,099 | 74,670 |
Total | 8,517,971 | 6,686,513 |
Current inventory | 8,486,577 | 6,640,049 |
Noncurrent inventory | R$ 31394 | R$ 46464 |
Related parties (Details)
Related parties (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current assets | |||
Trade accounts receivable | R$ 3075218 | R$ 3281196 | |
Inventories | 8,486,577 | 6,640,049 | |
Dividends and interest on capital | 890 | 10,859 | |
Total assets | 58,807,533 | 52,731,844 | |
Current liabilities | |||
Trade payables | 8,341,252 | 5,058,796 | |
Other payables | 632,774 | 276,957 | |
Sales of products | 57,999,866 | 49,260,594 | R$ 47663988 |
Purchases of raw materials, finished goods services and utilities | 46,431,220 | 36,177,408 | 34,985,569 |
Financial income (expenses) | (4,675,482) | (3,942,349) | (6,091,257) |
Other income | 90,852 | (854,880) | (3,905,954) |
General and administrative expenses | 1,633,003 | 1,434,272 | 1,285,613 |
Odebrecht and subsidiaries and associates | |||
Current assets | |||
Trade accounts receivable | 0 | 7,634 | |
Inventories | 8,665 | 250,904 | |
Dividends and interest on capital | 0 | 0 | |
Total assets | 8,665 | 258,538 | |
Current liabilities | |||
Trade payables | 16,851 | 21,530 | |
Other payables | 2,841 | 2,338 | |
Total liabilities | 19,692 | 23,868 | |
Sales of products | 0 | 27,467 | 49,051 |
Purchases of raw materials, finished goods services and utilities | 460,480 | 742,161 | 1,564,103 |
Financial income (expenses) | 0 | 2,056 | (21) |
Other income | 4,214 | 0 | 0 |
General and administrative expenses | 0 | 0 | 0 |
Post-employment benefits plan ("EPE") Odebrecht Previdencia Privada ("Odeprev") | 0 | 0 | 0 |
Acquisiton of subsidiary | 0 | 610,000 | 0 |
Petrobras and subsidiaries | |||
Current assets | |||
Trade accounts receivable | 20,119 | 45,184 | |
Inventories | 30,193 | 118 | |
Dividends and interest on capital | 0 | 0 | |
Total assets | 50,312 | 45,302 | |
Current liabilities | |||
Trade payables | 160,324 | 149,058 | |
Other payables | 484 | 562 | |
Total liabilities | 160,808 | 149,620 | |
Sales of products | 1,225,443 | 1,810,789 | 2,023,815 |
Purchases of raw materials, finished goods services and utilities | 15,540,144 | 12,795,819 | 12,291,190 |
Financial income (expenses) | (49) | (39,433) | 6,452 |
Other income | 0 | 0 | 0 |
General and administrative expenses | 0 | 0 | 0 |
Post-employment benefits plan ("EPE") Odebrecht Previdencia Privada ("Odeprev") | 0 | 0 | 0 |
Acquisiton of subsidiary | 0 | 0 | 0 |
Other | |||
Current assets | |||
Trade accounts receivable | 2,687 | 60,502 | |
Inventories | 0 | 0 | |
Dividends and interest on capital | 890 | 10,859 | |
Total assets | 3,577 | 71,361 | |
Current liabilities | |||
Trade payables | 0 | 700 | |
Other payables | 0 | 7,591 | |
Total liabilities | 0 | 8,291 | |
Sales of products | 736,192 | 629,302 | 562,709 |
Purchases of raw materials, finished goods services and utilities | 3,800 | 5,664 | 56,170 |
Financial income (expenses) | 0 | 0 | 0 |
Other income | 0 | 0 | 0 |
General and administrative expenses | 0 | 0 | 0 |
Post-employment benefits plan ("EPE") Odebrecht Previdencia Privada ("Odeprev") | 48,514 | 36,725 | 41,845 |
Acquisiton of subsidiary | 0 | 0 | 0 |
Associates companies, jointly-controlled investment and related companies | |||
Current assets | |||
Trade accounts receivable | 22,806 | 113,320 | |
Inventories | 38,858 | 251,022 | |
Dividends and interest on capital | 890 | 10,859 | |
Total assets | 62,554 | 375,201 | |
Current liabilities | |||
Trade payables | 177,175 | 171,288 | |
Other payables | 3,325 | 10,491 | |
Total liabilities | 180,500 | 181,779 | |
Sales of products | 1,961,635 | 2,467,558 | 2,635,575 |
Purchases of raw materials, finished goods services and utilities | 16,004,424 | 13,543,644 | 13,911,463 |
Financial income (expenses) | (49) | (37,377) | 6,431 |
Other income | 4,214 | 0 | 0 |
General and administrative expenses | 0 | 0 | 0 |
Post-employment benefits plan ("EPE") Odebrecht Previdencia Privada ("Odeprev") | 0 | 36,725 | 41,845 |
Acquisiton of subsidiary | R$ 0 | R$ 610000 | R$ 0 |
Related parties (Details 1)
Related parties (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Parties | |||
Short-term benefits | R$ 60922 | R$ 60303 | R$ 44277 |
Post-employment benefit | 989 | 664 | 515 |
Long term incentive plan | 4,404 | 0 | 0 |
Total | R$ 66315 | R$ 60967 | R$ 44792 |
Taxes recoverable (Details)
Taxes recoverable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | R$ 2421667 | R$ 1969865 |
Current taxes recoverable | 847,088 | 982,629 |
Noncurrent taxes recoverable | 1,574,579 | 987,236 |
Parent Company and subsidiaries in Brazil | IPI | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 9,050 | 18,226 |
Parent Company and subsidiaries in Brazil | Value-added tax on sales and services (ICMS) - normal operations | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 427,331 | 483,248 |
Parent Company and subsidiaries in Brazil | ICMS - credits from PP&E | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 170,998 | 140,904 |
Parent Company and subsidiaries in Brazil | Social integration program (PIS) and social contribution on revenue | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 482 | 22,389 |
Parent Company and subsidiaries in Brazil | PIS and COFINS - credits from PP&E | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 255,739 | 223,297 |
Parent Company and subsidiaries in Brazil | IR and CSL | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 553,740 | 691,697 |
Parent Company and subsidiaries in Brazil | REINTEGRA program | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 20,615 | 102,166 |
Parent Company and subsidiaries in Brazil | Federal supervenience | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 688,111 | 140,537 |
Parent Company and subsidiaries in Brazil | Other | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 2,852 | 4,322 |
Foreign subsidiaries | Other | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 7,750 | 4,021 |
Foreign subsidiaries | Value-added tax ("IVA") | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 173,051 | 92,119 |
Foreign subsidiaries | IR | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | R$ 111948 | R$ 46939 |
Investments (Details)
Investments (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of associates [line items] | ||||
Net profit (loss) for the year | R$ 2868185 | R$ 3915771 | R$ 729197 | |
Equity | R$ 5654670 | 5,472,800 | 1,720,710 | R$ 945489 |
Investment 1 | ||||
Disclosure of associates [line items] | ||||
Investment name | RPR | |||
Interest in total and voting capital (%) | 33.20% | |||
Net profit (loss) for the year | R$ 6358 | 106,109 | 86,682 | |
Equity | R$ 99672 | 201,038 | ||
Investment 2 | ||||
Disclosure of associates [line items] | ||||
Investment name | Odebrecht Comercializadora de Energia S.A. ("OCE") | |||
Interest in total and voting capital (%) | 0.00% | |||
Net profit (loss) for the year | R$ 48 | (543) | (5,720) | |
Equity | R$ 0 | 5,178 | ||
Investment 3 | ||||
Disclosure of associates [line items] | ||||
Investment name | Borealis | |||
Interest in total and voting capital (%) | 20.00% | |||
Net profit (loss) for the year | R$ 2900 | 17,752 | R$ 10538 | |
Equity | R$ 163884 | R$ 166630 |
Investments (Details 1)
Investments (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Disclosure of associates [line items] | |
Beginning balance | R$ 101258 |
Ending balance | R$ 65954 |
Associate 1 | |
Disclosure of associates [line items] | |
Domestic associate name | Borealis |
Beginning balance | R$ 33325 |
Dividends and interest on equity | 0 |
Equity in results of investees | (549) |
Goodwill amortization | 0 |
Equity valuation adjustments | 0 |
Ending balance | R$ 32776 |
Associate 2 | |
Disclosure of associates [line items] | |
Domestic associate name | OCE |
Beginning balance | R$ 1036 |
Dividends and interest on equity | 0 |
Equity in results of investees | (9) |
Goodwill amortization | (1,027) |
Equity valuation adjustments | 0 |
Ending balance | R$ 0 |
Associate 3 | |
Disclosure of associates [line items] | |
Domestic associate name | RPR |
Beginning balance | R$ 66752 |
Dividends and interest on equity | (32,060) |
Equity in results of investees | 2,106 |
Goodwill amortization | 0 |
Equity valuation adjustments | (3,704) |
Ending balance | R$ 33094 |
Associate 4 | |
Disclosure of associates [line items] | |
Domestic associate name | Other |
Beginning balance | R$ 145 |
Dividends and interest on equity | 0 |
Equity in results of investees | 0 |
Goodwill amortization | (61) |
Equity valuation adjustments | 0 |
Ending balance | R$ 84 |
Investments (Details 2)
Investments (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||||
Cash and cash equivalents | R$ 5547637 | R$ 3775093 | R$ 6701864 | R$ 7043262 |
Financial investments | 2,357,613 | 2,302,672 | ||
Trade accounts receivable | 3,075,218 | 3,281,196 | ||
Inventories | 8,486,577 | 6,640,049 | ||
Taxes recoverable | 847,088 | 982,629 | ||
Other receivables | 719,682 | 437,380 | ||
Current assets | 21,033,815 | 17,419,019 | ||
Non-current assets | ||||
Taxes recoverable | 1,574,579 | 987,236 | ||
Deferred income tax and social contribution | 1,104,158 | 1,165,726 | 1,653,115 | |
Related parties | 0 | 0 | ||
Other receivables | 594,109 | 670,756 | ||
Property, plant and equipment | 31,759,890 | 29,761,610 | 29,336,710 | |
Intangible assets | 2,740,982 | 2,727,497 | ||
Non-current assets | 37,773,718 | 35,312,825 | ||
Total assets | 58,807,533 | 52,731,844 | ||
Current liabilities | ||||
Trade payables | 8,341,252 | 5,058,796 | ||
Borrowings | 737,436 | 1,184,781 | ||
Debenture | 27,732 | 27,183 | ||
Braskem Idesa borrowings | 10,504,592 | 9,691,450 | ||
Payroll and related charges | 645,396 | 630,517 | ||
Taxes payable | 501,273 | 894,769 | ||
Other payables | 2,008,397 | 1,076,927 | ||
Current liabilities | 22,766,078 | 18,564,423 | ||
Non-current liabilities | ||||
Loan agreements | 24,160,720 | 22,176,640 | ||
Braskem Idesa Borrowings | 266,777 | 286,141 | ||
Accounts payable to related parties | 0 | 0 | ||
Loan to non-controlling shareholders of Braskem Idesa | 2,183,830 | 1,756,600 | ||
Provision for losses on subsidiaries | 0 | 0 | ||
Other payables | 3,775,458 | 4,475,240 | ||
Non-current liabilities | 30,386,785 | 28,694,621 | ||
Shareholders' equity | ||||
Total attributable to the Company's shareholders | 6,531,070 | 6,300,301 | ||
Non-controlling interest in subsidiaries | (876,400) | (827,501) | ||
Shareholders' equity | 5,654,670 | 5,472,800 | 1,720,710 | 945,489 |
Total liabilities and shareholders' equity | 58,807,533 | 52,731,844 | ||
Consolidated Braskem without the effect of Braskem Idesa consolidated | ||||
Current assets | ||||
Cash and cash equivalents | 4,584,280 | 3,480,407 | 6,500,265 | 6,908,623 |
Financial investments | 2,357,613 | 2,302,672 | ||
Trade accounts receivable | 2,574,791 | 2,809,034 | ||
Inventories | 7,907,429 | 6,293,324 | ||
Taxes recoverable | 737,399 | 919,600 | ||
Other receivables | 379,560 | 392,750 | ||
Current assets | 18,541,072 | 16,197,787 | ||
Non-current assets | ||||
Taxes recoverable | 1,574,518 | 987,184 | ||
Deferred income tax and social contribution | 114,000 | 129,469 | ||
Related parties | 6,137,206 | 5,051,706 | ||
Other receivables | 546,892 | 637,549 | ||
Property, plant and equipment | 20,102,981 | 19,180,263 | ||
Intangible assets | 2,562,722 | 2,575,567 | ||
Non-current assets | 31,038,319 | 28,561,738 | ||
Total assets | 49,579,391 | 44,759,525 | ||
Current liabilities | ||||
Trade payables | 8,099,755 | 5,047,293 | ||
Borrowings | 737,436 | 1,184,781 | ||
Debenture | 27,732 | 27,183 | ||
Braskem Idesa borrowings | 0 | 0 | ||
Payroll and related charges | 617,079 | 609,883 | ||
Taxes payable | 488,472 | 881,702 | ||
Other payables | 1,932,548 | 1,019,346 | ||
Current liabilities | 11,903,022 | 8,770,188 | ||
Non-current liabilities | ||||
Loan agreements | 24,160,720 | 22,176,640 | ||
Braskem Idesa Borrowings | 266,777 | 286,141 | ||
Accounts payable to related parties | 0 | 0 | ||
Loan to non-controlling shareholders of Braskem Idesa | 0 | 0 | ||
Provision for losses on subsidiaries | 2,871,819 | 2,689,769 | ||
Other payables | 3,765,110 | 4,467,398 | ||
Non-current liabilities | 31,064,426 | 29,619,948 | ||
Shareholders' equity | ||||
Total attributable to the Company's shareholders | 6,531,070 | 6,300,300 | ||
Non-controlling interest in subsidiaries | 80,873 | 69,089 | ||
Shareholders' equity | 6,611,943 | 6,369,389 | ||
Total liabilities and shareholders' equity | 49,579,391 | 44,759,525 | ||
Braskem Idesa consolidated | ||||
Current assets | ||||
Cash and cash equivalents | 963,357 | 294,686 | 201,599 | 134,639 |
Financial investments | 0 | 0 | ||
Trade accounts receivable | 627,879 | 620,531 | ||
Inventories | 579,148 | 346,725 | ||
Taxes recoverable | 109,689 | 63,029 | ||
Other receivables | 340,122 | 44,630 | ||
Current assets | 2,620,195 | 1,369,601 | ||
Non-current assets | ||||
Taxes recoverable | 61 | 52 | ||
Deferred income tax and social contribution | 990,158 | 1,036,257 | ||
Related parties | 0 | 0 | ||
Other receivables | 47,217 | 33,207 | ||
Property, plant and equipment | 12,365,063 | 11,228,346 | ||
Intangible assets | 178,260 | 151,930 | ||
Non-current assets | 13,580,759 | 12,449,792 | ||
Total assets | 16,200,954 | 13,819,393 | ||
Current liabilities | ||||
Trade payables | 368,949 | 159,872 | ||
Borrowings | 0 | 0 | ||
Debenture | 0 | 0 | ||
Braskem Idesa borrowings | 10,504,592 | 9,691,450 | ||
Payroll and related charges | 28,317 | 20,634 | ||
Taxes payable | 12,801 | 13,067 | ||
Other payables | 75,849 | 57,581 | ||
Current liabilities | 10,990,508 | 9,942,604 | ||
Non-current liabilities | ||||
Loan agreements | 0 | 0 | ||
Braskem Idesa Borrowings | 0 | 0 | ||
Accounts payable to related parties | 6,147,768 | 5,065,971 | ||
Loan to non-controlling shareholders of Braskem Idesa | 2,183,830 | 1,756,600 | ||
Provision for losses on subsidiaries | 0 | 0 | ||
Other payables | 10,348 | 7,842 | ||
Non-current liabilities | 8,341,946 | 6,830,413 | ||
Shareholders' equity | ||||
Total attributable to the Company's shareholders | (3,131,500) | (2,953,624) | ||
Non-controlling interest in subsidiaries | 0 | 0 | ||
Shareholders' equity | (3,131,500) | (2,953,624) | ||
Total liabilities and shareholders' equity | 16,200,954 | 13,819,393 | ||
Eliminations | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | R$ 0 | R$ 0 |
Financial investments | 0 | 0 | ||
Trade accounts receivable | (127,452) | (148,369) | ||
Inventories | 0 | 0 | ||
Taxes recoverable | 0 | 0 | ||
Other receivables | 0 | 0 | ||
Current assets | (127,452) | (148,369) | ||
Non-current assets | ||||
Taxes recoverable | 0 | 0 | ||
Deferred income tax and social contribution | 0 | 0 | ||
Related parties | (6,137,206) | (5,051,706) | ||
Other receivables | 0 | 0 | ||
Property, plant and equipment | (708,154) | (646,999) | ||
Intangible assets | 0 | 0 | ||
Non-current assets | (6,845,360) | (5,698,705) | ||
Total assets | (6,972,812) | (5,847,074) | ||
Current liabilities | ||||
Trade payables | (127,452) | (148,369) | ||
Borrowings | 0 | 0 | ||
Debenture | 0 | 0 | ||
Braskem Idesa borrowings | 0 | 0 | ||
Payroll and related charges | 0 | 0 | ||
Taxes payable | 0 | 0 | ||
Other payables | 0 | 0 | ||
Current liabilities | (127,452) | (148,369) | ||
Non-current liabilities | ||||
Loan agreements | 0 | 0 | ||
Braskem Idesa Borrowings | 0 | 0 | ||
Accounts payable to related parties | (6,147,768) | (5,065,971) | ||
Loan to non-controlling shareholders of Braskem Idesa | 0 | 0 | ||
Provision for losses on subsidiaries | (2,871,819) | (2,689,769) | ||
Other payables | 0 | 0 | ||
Non-current liabilities | (9,019,587) | (7,755,740) | ||
Shareholders' equity | ||||
Total attributable to the Company's shareholders | 3,131,500 | 2,953,625 | ||
Non-controlling interest in subsidiaries | (957,273) | (896,590) | ||
Shareholders' equity | 2,174,227 | 2,057,035 | ||
Total liabilities and shareholders' equity | R$ 6972812 | R$ 5847074 |
Investments (Details 3)
Investments (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of subsidiaries [line items] | |||
Net revenue | R$ 57999866 | R$ 49260594 | R$ 47663988 |
Cost of products sold | (46,431,220) | (36,177,408) | (34,985,569) |
Gross profit | 11,568,646 | 13,083,186 | 12,678,419 |
Income (expenses) | |||
Selling and distribution | (1,545,568) | (1,459,608) | (1,403,673) |
General and administrative | (1,633,003) | (1,434,272) | (1,285,613) |
Research and development | (199,821) | (167,456) | (162,010) |
Results from equity investments | (888) | 39,956 | 30,078 |
Other income (expenses), net | 90,852 | (854,880) | (3,905,954) |
Operating profit | 8,280,218 | 9,206,926 | 5,951,247 |
Financial results | |||
Financial expenses | (3,007,551) | (3,747,217) | (3,570,962) |
Financial income | 589,052 | 603,630 | 690,122 |
Exchange rate variations, net | (2,256,983) | (798,762) | (3,210,417) |
Finance income (cost) | (4,675,482) | (3,942,349) | (6,091,257) |
Profit (loss) before income tax and social contribution | 3,604,736 | 5,264,577 | (140,010) |
Current and deferred income tax and social contribution | (736,551) | (1,357,682) | (616,046) |
Profit (loss) for the year of continued operations | 2,868,185 | 3,906,895 | (756,056) |
Discontinued operations results | |||
Profit from discontinued operations before income tax and social contribution | 0 | 13,499 | 40,760 |
Current and deferred income tax and social contribution | 0 | (4,623) | (13,901) |
Profit from discontinued operations | 0 | 8,876 | 26,859 |
Profit (loss) for the year | 2,868,185 | 3,915,771 | (729,197) |
Consolidated Braskem without the effect of Braskem Idesa consolidated | |||
Disclosure of subsidiaries [line items] | |||
Net revenue | 54,851,243 | 46,207,109 | 46,343,171 |
Cost of products sold | (44,783,284) | (34,675,494) | (34,040,770) |
Gross profit | 10,067,959 | 11,531,615 | 12,302,401 |
Income (expenses) | |||
Selling and distribution | (1,355,986) | (1,287,817) | (1,286,558) |
General and administrative | (1,524,480) | (1,336,072) | (1,201,489) |
Research and development | (199,821) | (167,456) | (162,010) |
Results from equity investments | 76,821 | 191,949 | (923,096) |
Other income (expenses), net | (208,252) | (887,185) | (3,913,567) |
Operating profit | 6,856,241 | 8,045,034 | 4,815,681 |
Financial results | |||
Financial expenses | (2,227,544) | (3,044,668) | (3,054,334) |
Financial income | 867,185 | 850,367 | 955,423 |
Exchange rate variations, net | (2,014,205) | (936,804) | (2,115,993) |
Finance income (cost) | (3,374,564) | (3,131,105) | (4,214,904) |
Profit (loss) before income tax and social contribution | 3,481,677 | 4,913,929 | 600,777 |
Current and deferred income tax and social contribution | (639,394) | (1,057,699) | (1,039,107) |
Profit (loss) for the year of continued operations | 2,842,283 | 3,856,230 | (438,330) |
Discontinued operations results | |||
Profit from discontinued operations before income tax and social contribution | 0 | 13,499 | 40,760 |
Current and deferred income tax and social contribution | 0 | (4,623) | (13,901) |
Profit from discontinued operations | 0 | 8,876 | 26,859 |
Profit (loss) for the year | 2,842,283 | 3,865,106 | (411,471) |
Braskem Idesa consolidated | |||
Disclosure of subsidiaries [line items] | |||
Net revenue | 3,766,371 | 3,656,801 | 1,495,018 |
Cost of products sold | (2,314,998) | (2,125,031) | (1,109,020) |
Gross profit | 1,451,373 | 1,531,770 | 385,998 |
Income (expenses) | |||
Selling and distribution | (189,582) | (171,791) | (117,115) |
General and administrative | (108,191) | (122,043) | (123,855) |
Research and development | 0 | 0 | 0 |
Results from equity investments | 0 | 0 | 0 |
Other income (expenses), net | 299,104 | 32,305 | 7,613 |
Operating profit | 1,452,704 | 1,270,241 | 152,641 |
Financial results | |||
Financial expenses | (1,090,019) | (973,952) | (688,868) |
Financial income | 31,879 | 24,666 | 3,193 |
Exchange rate variations, net | (232,064) | 132,186 | (1,094,424) |
Finance income (cost) | (1,290,204) | (817,100) | (1,780,099) |
Profit (loss) before income tax and social contribution | 162,500 | 453,141 | (1,627,458) |
Current and deferred income tax and social contribution | (97,157) | (299,983) | 423,061 |
Profit (loss) for the year of continued operations | 65,343 | 153,158 | (1,204,397) |
Discontinued operations results | |||
Profit from discontinued operations before income tax and social contribution | 0 | 0 | 0 |
Current and deferred income tax and social contribution | 0 | 0 | 0 |
Profit from discontinued operations | 0 | 0 | 0 |
Profit (loss) for the year | 65,343 | 153,158 | (1,204,397) |
Eliminations | |||
Disclosure of subsidiaries [line items] | |||
Net revenue | (617,748) | (603,316) | (174,201) |
Cost of products sold | 667,062 | 623,117 | 164,221 |
Gross profit | 49,314 | 19,801 | (9,980) |
Income (expenses) | |||
Selling and distribution | 0 | 0 | 0 |
General and administrative | (332) | 23,843 | 39,731 |
Research and development | 0 | 0 | 0 |
Results from equity investments | (77,709) | (151,993) | 953,174 |
Other income (expenses), net | 0 | 0 | 0 |
Operating profit | (28,727) | (108,349) | 982,925 |
Financial results | |||
Financial expenses | 310,012 | 271,403 | 172,240 |
Financial income | (310,012) | (271,403) | (268,494) |
Exchange rate variations, net | (10,714) | 5,856 | 0 |
Finance income (cost) | (10,714) | 5,856 | (96,254) |
Profit (loss) before income tax and social contribution | (39,441) | (102,493) | 886,671 |
Current and deferred income tax and social contribution | 0 | 0 | 0 |
Profit (loss) for the year of continued operations | (39,441) | (102,493) | 886,671 |
Discontinued operations results | |||
Profit from discontinued operations before income tax and social contribution | 0 | 0 | 0 |
Current and deferred income tax and social contribution | 0 | 0 | 0 |
Profit from discontinued operations | 0 | 0 | 0 |
Profit (loss) for the year | R$ 39441 | R$ 102493 | R$ 886671 |
Investments (Details 4)
Investments (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of subsidiaries [line items] | |||
Profit (loss) before income tax and social contribution and for the result with discontinued operations | R$ 3604736 | R$ 5264577 | R$ 99250 |
Adjustments for reconciliation of profit | |||
Depreciation, amortization and depletion | 2,990,577 | 2,928,855 | 2,683,100 |
Results from equity investments | 888 | (39,956) | (30,078) |
Interest and monetary and exchange variations, net | 6,013,944 | 3,697,714 | 3,026,008 |
Gain from divestment in subsidiary | 0 | (276,816) | 0 |
Leniency agreement | 0 | 375,476 | 2,853,230 |
Reversal of provisions | 23,725 | (223,340) | 0 |
PIS and COFINS credits - exclusion of ICMS from the calculation basis | (519,830) | 0 | 0 |
Provision for losses and write-offs of long-lived assets | 72,470 | 213,184 | 41,016 |
Adjustments for reconciliation of profit | 12,186,510 | 11,939,694 | 8,474,026 |
Changes in operating working capital | |||
Financial investments | 98,349 | (953,228) | (649,535) |
Trade accounts receivable | 130,113 | (1,598,392) | 1,007,875 |
Inventories | (1,537,290) | (1,351,028) | 862,338 |
Taxes recoverable | 1,022,242 | 469,293 | 1,058,104 |
Prepaid expenses | (105,163) | (30,521) | 64,029 |
Other receivables | (242,691) | 25,802 | 353,981 |
Trade payables | 1,343,375 | (1,642,649) | (4,254,575) |
Taxes payable | (977,248) | (215,514) | (292,131) |
Advances from customers | (199,958) | (13,512) | 216,850 |
Leniency agreement | (330,006) | (1,343,803) | 0 |
Other payables | 716,769 | 250,137 | 596,695 |
Cash from operations | 12,105,002 | 5,536,279 | 7,437,657 |
Interest paid | (1,916,801) | (2,154,053) | (1,826,942) |
Income tax and social contribution paid | (937,831) | (920,606) | (1,152,847) |
Net cash generated by operating activities | 9,250,370 | 2,461,620 | 4,457,868 |
Proceeds from the sale of fixed assets | 95,133 | 39,660 | 564 |
Proceeds from the sale of investments | 81,000 | 450,000 | 0 |
Funds received in the investments' capital reduction | 2,254 | 0 | 0 |
Dividends received | 41,791 | 0 | 0 |
Additions to investments in subsidiaries | 0 | (608,181) | 0 |
Acquisitions to property, plant and equipment and intangible assets | (2,706,328) | (2,273,197) | (2,586,511) |
Other investments | (2,167) | 24,977 | 34,061 |
Net cash used in investing activities | (2,488,317) | (2,406,401) | (2,552,450) |
Short-term and Long-term debt | |||
Acquired | 4,301,626 | 8,492,341 | 4,107,626 |
Payments | (6,592,197) | (8,779,091) | (4,901,593) |
Derivative transactions | |||
Payments | 0 | (810,279) | 0 |
Braskem Idesa borrowings | |||
Acquired | 0 | 187,959 | 503,921 |
Payments | (812,929) | (1,080,502) | (469,282) |
Related parties | |||
Acquired loans (payment of loans) | 0 | 0 | 0 |
Dividends paid | (1,499,900) | (998,893) | (1,997,984) |
Net cash used in financing activities | (4,603,400) | (2,988,465) | (2,757,312) |
Exchange variation on cash of foreign subsidiaries | (386,109) | 6,475 | 586,642 |
Increase (decrease) in cash and cash equivalents | 1,772,544 | (2,926,771) | (265,252) |
Cash and cash equivalents at the beginning of the year | 3,775,093 | 6,701,864 | 7,043,262 |
Cash and cash equivalents at the end of the year | 5,547,637 | 3,775,093 | 6,701,864 |
Consolidated Braskem without the effect of Braskem Idesa consolidated | |||
Disclosure of subsidiaries [line items] | |||
Profit (loss) before income tax and social contribution and for the result with discontinued operations | 3,481,677 | 4,913,929 | 641,537 |
Adjustments for reconciliation of profit | |||
Depreciation, amortization and depletion | 2,228,978 | 2,230,466 | 2,381,160 |
Results from equity investments | (76,821) | (191,949) | 923,096 |
Interest and monetary and exchange variations, net | 4,658,342 | 2,900,745 | 1,851,033 |
Gain from divestment in subsidiary | 0 | (276,816) | 0 |
Leniency agreement | 0 | 375,476 | 2,853,230 |
Reversal of provisions | 23,725 | (223,340) | 0 |
PIS and COFINS credits - exclusion of ICMS from the calculation basis | (519,830) | 0 | 0 |
Provision for losses and write-offs of long-lived assets | 69,270 | 212,759 | 40,530 |
Adjustments for reconciliation of profit | 9,865,341 | 9,941,270 | 8,690,586 |
Changes in operating working capital | |||
Financial investments | 98,349 | (953,228) | (649,535) |
Trade accounts receivable | 158,378 | (1,304,474) | 1,083,117 |
Inventories | (1,337,618) | (1,387,696) | 966,974 |
Taxes recoverable | 1,068,637 | 415,923 | 976,770 |
Prepaid expenses | (67,051) | (21,732) | 64,029 |
Other receivables | (6,299) | 34,500 | 332,673 |
Trade payables | 1,113,381 | (1,444,468) | (4,052,705) |
Taxes payable | (828,222) | (132,697) | (674,466) |
Advances from customers | (218,623) | (3,089) | 207,020 |
Leniency agreement | (330,006) | (1,343,803) | |
Other payables | 299,010 | 124,050 | 430,714 |
Cash from operations | 9,815,277 | 3,924,556 | 7,375,177 |
Interest paid | (1,328,420) | (1,648,971) | (1,611,718) |
Income tax and social contribution paid | (937,557) | (919,236) | (1,152,847) |
Net cash generated by operating activities | 7,549,300 | 1,356,349 | 4,610,612 |
Proceeds from the sale of fixed assets | 95,133 | 0 | 0 |
Proceeds from the sale of investments | 81,000 | 450,000 | 0 |
Funds received in the investments' capital reduction | 2,254 | 0 | 0 |
Dividends received | 41,791 | 0 | 0 |
Additions to investments in subsidiaries | 0 | (608,181) | 0 |
Acquisitions to property, plant and equipment and intangible assets | (2,635,906) | (2,185,567) | (1,844,510) |
Other investments | (2,167) | 24,977 | 34,061 |
Net cash used in investing activities | (2,417,895) | (2,318,771) | (1,810,449) |
Short-term and Long-term debt | |||
Acquired | 4,301,626 | 8,492,341 | 4,107,626 |
Payments | (6,592,197) | (8,779,091) | (4,901,593) |
Derivative transactions | |||
Payments | 0 | (810,279) | 0 |
Braskem Idesa borrowings | |||
Acquired | 0 | 0 | 0 |
Payments | 0 | 0 | 0 |
Related parties | |||
Acquired loans (payment of loans) | 72,880 | 20,637 | (882,158) |
Dividends paid | (1,499,900) | (998,893) | (1,997,984) |
Net cash used in financing activities | (3,717,591) | (2,075,285) | (3,674,109) |
Exchange variation on cash of foreign subsidiaries | (309,941) | 17,849 | 541,734 |
Increase (decrease) in cash and cash equivalents | 1,103,873 | (3,019,858) | (332,212) |
Cash and cash equivalents at the beginning of the year | 3,480,407 | 6,500,265 | 6,908,623 |
Cash and cash equivalents at the end of the year | 4,584,280 | 3,480,407 | 6,500,265 |
Braskem Idesa consolidated | |||
Disclosure of subsidiaries [line items] | |||
Profit (loss) before income tax and social contribution and for the result with discontinued operations | 162,500 | 453,141 | (1,627,458) |
Adjustments for reconciliation of profit | |||
Depreciation, amortization and depletion | 810,581 | 742,033 | 331,691 |
Results from equity investments | 0 | 0 | 0 |
Interest and monetary and exchange variations, net | 1,344,888 | 802,825 | 1,229,219 |
Gain from divestment in subsidiary | 0 | 0 | 0 |
Leniency agreement | 0 | 0 | 0 |
Reversal of provisions | 0 | 0 | 0 |
PIS and COFINS credits - exclusion of ICMS from the calculation basis | 0 | 0 | 0 |
Provision for losses and write-offs of long-lived assets | 3,200 | 425 | 486 |
Adjustments for reconciliation of profit | 2,321,169 | 1,998,424 | (66,062) |
Changes in operating working capital | |||
Financial investments | 0 | 0 | 0 |
Trade accounts receivable | (7,348) | (373,066) | (126,617) |
Inventories | (199,672) | 36,668 | (104,636) |
Taxes recoverable | (46,395) | 53,370 | 81,334 |
Prepaid expenses | (38,112) | (8,789) | |
Other receivables | (236,392) | (8,698) | 21,308 |
Trade payables | 209,077 | (119,033) | (150,495) |
Taxes payable | (149,026) | (82,817) | 382,335 |
Advances from customers | 18,665 | (10,423) | 9,830 |
Other payables | 417,759 | 126,087 | 165,981 |
Cash from operations | 2,289,725 | 1,611,723 | 212,978 |
Interest paid | (588,381) | (505,082) | (215,224) |
Income tax and social contribution paid | (274) | (1,370) | 0 |
Net cash generated by operating activities | 1,701,070 | 1,105,271 | (2,246) |
Proceeds from the sale of fixed assets | 0 | 0 | 0 |
Proceeds from the sale of investments | 0 | 0 | 0 |
Funds received in the investments' capital reduction | 0 | 0 | 0 |
Dividends received | 0 | 0 | 0 |
Additions to investments in subsidiaries | 0 | 0 | 0 |
Acquisitions to property, plant and equipment and intangible assets | (70,422) | (87,630) | (892,499) |
Other investments | 0 | 0 | 0 |
Net cash used in investing activities | (70,422) | (87,630) | (892,499) |
Short-term and Long-term debt | |||
Acquired | 0 | 0 | 0 |
Payments | 0 | 0 | 0 |
Derivative transactions | |||
Payments | 0 | 0 | 0 |
Braskem Idesa borrowings | |||
Acquired | 0 | 187,959 | 503,921 |
Payments | (812,929) | (1,080,502) | (469,282) |
Related parties | |||
Acquired loans (payment of loans) | (72,880) | (20,637) | 882,158 |
Dividends paid | 0 | 0 | 0 |
Net cash used in financing activities | (885,809) | (913,180) | 916,797 |
Exchange variation on cash of foreign subsidiaries | (76,168) | (11,374) | 44,908 |
Increase (decrease) in cash and cash equivalents | 668,671 | 93,087 | 66,960 |
Cash and cash equivalents at the beginning of the year | 294,686 | 201,599 | 134,639 |
Cash and cash equivalents at the end of the year | 963,357 | 294,686 | 201,599 |
Eliminations | |||
Disclosure of subsidiaries [line items] | |||
Profit (loss) before income tax and social contribution and for the result with discontinued operations | (39,441) | (102,493) | 886,671 |
Adjustments for reconciliation of profit | |||
Depreciation, amortization and depletion | (48,982) | (43,644) | (29,751) |
Results from equity investments | 77,709 | 151,993 | (953,174) |
Interest and monetary and exchange variations, net | 10,714 | (5,856) | (54,244) |
Gain from divestment in subsidiary | 0 | 0 | 0 |
Leniency agreement | 0 | 0 | 0 |
Reversal of provisions | 0 | 0 | 0 |
PIS and COFINS credits - exclusion of ICMS from the calculation basis | 0 | 0 | 0 |
Provision for losses and write-offs of long-lived assets | 0 | 0 | 0 |
Adjustments for reconciliation of profit | 0 | 0 | (150,498) |
Changes in operating working capital | |||
Financial investments | 0 | 0 | 0 |
Trade accounts receivable | (20,917) | 79,148 | 51,375 |
Inventories | 0 | 0 | 0 |
Taxes recoverable | 0 | 0 | 0 |
Prepaid expenses | 0 | 0 | 0 |
Other receivables | 0 | 0 | 0 |
Trade payables | 20,917 | (79,148) | (51,375) |
Taxes payable | 0 | 0 | 0 |
Advances from customers | 0 | 0 | 0 |
Leniency agreement | 0 | 0 | 0 |
Other payables | 0 | 0 | 0 |
Cash from operations | 0 | 0 | (150,498) |
Interest paid | 0 | 0 | 0 |
Income tax and social contribution paid | 0 | 0 | 0 |
Net cash generated by operating activities | 0 | 0 | (150,498) |
Proceeds from the sale of fixed assets | 0 | 0 | 0 |
Proceeds from the sale of investments | 0 | 0 | 0 |
Funds received in the investments' capital reduction | 0 | 0 | 0 |
Dividends received | 0 | 0 | 0 |
Additions to investments in subsidiaries | 0 | 0 | 0 |
Acquisitions to property, plant and equipment and intangible assets | 0 | 0 | 150,498 |
Other investments | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 150,498 |
Short-term and Long-term debt | |||
Acquired | 0 | 0 | 0 |
Payments | 0 | 0 | 0 |
Derivative transactions | |||
Payments | 0 | 0 | 0 |
Braskem Idesa borrowings | |||
Acquired | 0 | 0 | 0 |
Payments | 0 | 0 | 0 |
Related parties | |||
Acquired loans (payment of loans) | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Net cash used in financing activities | 0 | 0 | 0 |
Exchange variation on cash of foreign subsidiaries | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at the beginning of the year | 0 | 0 | 0 |
Cash and cash equivalents at the end of the year | R$ 0 | R$ 0 | R$ 0 |
Property, plant and equipment_2
Property, plant and equipment (Details) - 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 detailed information about property, plant and equipment [line items] | |||||
Beginning balance | R$ 29761610 | R$ 29336710 | |||
Acquisitions | 2,654,349 | 2,245,241 | |||
Additions for acquisition of subsidiary | 339,749 | ||||
Capitalized financial charges | 178,055 | 130,272 | |||
Foreign currency translation adjustment | 2,227,796 | 623,213 | |||
Cost | 2,624,428 | ||||
Depletion | (396,632) | ||||
Transfers by concluded projects | 0 | 0 | |||
Cost | 0 | ||||
Depletion | 0 | ||||
Transfers to intangible | (4,461) | ||||
Cost | (4,461) | ||||
Depletion | 0 | ||||
Disposals | (211,271) | ||||
Cost | (581,731) | ||||
Depletion | 370,460 | ||||
Other | (48,060) | ||||
Depreciation / depletion | (3,009,399) | (2,702,304) | |||
Ending balance | 31,759,890 | 29,761,610 | |||
Property, plant and equipment, cost | R$ 57190786 | R$ 50799704 | R$ 47707502 | ||
Accumulated depreciation/depletion | (25,430,896) | (21,038,094) | (18,370,792) | ||
Property, plant and equipment | 31,759,890 | 29,761,610 | 31,759,890 | 29,761,610 | 29,336,710 |
Previously disclosed | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 50,799,704 | ||||
Accumulated depreciation/depletion | (21,038,094) | ||||
Reclassification | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 1,130,604 | ||||
Accumulated depreciation/depletion | (1,130,604) | ||||
Reclassified | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 51,930,308 | ||||
Accumulated depreciation/depletion | (22,168,698) | ||||
Land | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 569,548 | 471,655 | |||
Acquisitions | 0 | 0 | |||
Additions for acquisition of subsidiary | 14,937 | ||||
Capitalized financial charges | 0 | 0 | |||
Foreign currency translation adjustment | 32,751 | 5,600 | |||
Cost | 32,751 | ||||
Depletion | 0 | ||||
Transfers by concluded projects | 0 | 29,703 | |||
Cost | 0 | ||||
Depletion | 0 | ||||
Transfers to intangible | 0 | ||||
Cost | 0 | ||||
Depletion | 0 | ||||
Disposals | (21,249) | ||||
Cost | (21,249) | ||||
Depletion | 0 | ||||
Other | 0 | ||||
Depreciation / depletion | 0 | 0 | |||
Ending balance | 602,299 | 569,548 | |||
Property, plant and equipment, cost | 602,299 | 500,646 | 471,655 | ||
Accumulated depreciation/depletion | 0 | 0 | 0 | ||
Property, plant and equipment | 569,548 | 569,548 | 602,299 | 569,548 | 471,655 |
Land | Previously disclosed | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 500,646 | ||||
Accumulated depreciation/depletion | 0 | ||||
Land | Reclassification | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 68,902 | ||||
Accumulated depreciation/depletion | 0 | ||||
Land | Reclassified | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 569,548 | ||||
Accumulated depreciation/depletion | 0 | ||||
Buildings and improvements | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 4,411,957 | 4,419,072 | |||
Acquisitions | 372 | 0 | |||
Additions for acquisition of subsidiary | 122,846 | ||||
Capitalized financial charges | 0 | 0 | |||
Foreign currency translation adjustment | 593,228 | 168,554 | |||
Cost | 674,720 | ||||
Depletion | (81,492) | ||||
Transfers by concluded projects | 16,477 | 145,622 | |||
Cost | 16,477 | ||||
Depletion | 0 | ||||
Transfers to intangible | 0 | ||||
Cost | 0 | ||||
Depletion | 0 | ||||
Disposals | (5,149) | ||||
Cost | (7,444) | ||||
Depletion | 2,295 | ||||
Other | (2,009) | ||||
Depreciation / depletion | (370,035) | (280,448) | |||
Ending balance | 4,649,990 | 4,411,957 | |||
Property, plant and equipment, cost | 6,676,549 | 6,058,259 | 5,530,714 | ||
Accumulated depreciation/depletion | (2,026,559) | (1,487,762) | (1,111,642) | ||
Property, plant and equipment | 4,411,957 | 4,411,957 | 4,649,990 | 4,411,957 | 4,419,072 |
Buildings and improvements | Previously disclosed | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 6,058,259 | ||||
Accumulated depreciation/depletion | (1,487,762) | ||||
Buildings and improvements | Reclassification | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | (70,296) | ||||
Accumulated depreciation/depletion | (88,244) | ||||
Buildings and improvements | Reclassified | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 5,987,963 | ||||
Accumulated depreciation/depletion | (1,576,006) | ||||
Machinery, Equipment and Facilities | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 20,656,624 | 20,208,912 | |||
Acquisitions | 201,492 | 149,018 | |||
Additions for acquisition of subsidiary | 63,081 | ||||
Capitalized financial charges | 0 | 0 | |||
Foreign currency translation adjustment | 1,433,855 | 387,757 | |||
Cost | 1,727,164 | ||||
Depletion | (293,309) | ||||
Transfers by concluded projects | 1,022,560 | 2,216,704 | |||
Cost | 1,022,560 | ||||
Depletion | 0 | ||||
Transfers to intangible | 0 | ||||
Cost | 0 | ||||
Depletion | 0 | ||||
Disposals | (166,585) | ||||
Cost | (525,724) | ||||
Depletion | 359,139 | ||||
Other | (40,503) | ||||
Depreciation / depletion | (2,487,820) | (2,275,788) | |||
Ending balance | 20,786,208 | 20,656,624 | |||
Property, plant and equipment, cost | 43,024,738 | 39,211,042 | 36,804,409 | ||
Accumulated depreciation/depletion | (22,238,530) | (18,627,943) | (16,595,497) | ||
Property, plant and equipment | 20,656,624 | 20,656,624 | 20,786,208 | 20,656,624 | 20,208,912 |
Machinery, Equipment and Facilities | Previously disclosed | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 39,211,042 | ||||
Accumulated depreciation/depletion | (18,627,943) | ||||
Machinery, Equipment and Facilities | Reclassification | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 1,038,042 | ||||
Accumulated depreciation/depletion | (964,517) | ||||
Machinery, Equipment and Facilities | Reclassified | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 40,249,084 | ||||
Accumulated depreciation/depletion | (19,592,460) | ||||
Projects and Stoppage in Progress | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 3,461,271 | 3,495,965 | |||
Acquisitions | 2,439,286 | 2,090,157 | |||
Additions for acquisition of subsidiary | 46,833 | ||||
Capitalized financial charges | 178,055 | 130,272 | |||
Foreign currency translation adjustment | 137,551 | 56,425 | |||
Cost | 137,551 | ||||
Depletion | 0 | ||||
Transfers by concluded projects | (1,106,975) | (2,539,041) | |||
Cost | (1,106,975) | ||||
Depletion | 0 | ||||
Transfers to intangible | (2,922) | ||||
Cost | (2,922) | ||||
Depletion | 0 | ||||
Disposals | (5,946) | ||||
Cost | (5,946) | ||||
Depletion | 0 | ||||
Other | (3,873) | ||||
Depreciation / depletion | 0 | 0 | |||
Ending balance | 5,102,393 | 3,461,271 | |||
Property, plant and equipment, cost | 5,102,393 | 3,274,665 | 3,495,965 | ||
Accumulated depreciation/depletion | 0 | 0 | 0 | ||
Property, plant and equipment | 3,461,271 | 3,461,271 | 5,102,393 | 3,461,271 | 3,495,965 |
Projects and Stoppage in Progress | Previously disclosed | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 3,274,665 | ||||
Accumulated depreciation/depletion | 0 | ||||
Projects and Stoppage in Progress | Reclassification | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 186,606 | ||||
Accumulated depreciation/depletion | 0 | ||||
Projects and Stoppage in Progress | Reclassified | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 3,461,271 | ||||
Accumulated depreciation/depletion | 0 | ||||
Other | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 662,210 | 741,106 | |||
Acquisitions | 13,199 | 6,066 | |||
Additions for acquisition of subsidiary | 92,052 | ||||
Capitalized financial charges | 0 | 0 | |||
Foreign currency translation adjustment | 30,411 | 4,877 | |||
Cost | 52,242 | ||||
Depletion | (21,831) | ||||
Transfers by concluded projects | 67,938 | 147,012 | |||
Cost | 67,938 | ||||
Depletion | 0 | ||||
Transfers to intangible | (1,539) | ||||
Cost | (1,539) | ||||
Depletion | 0 | ||||
Disposals | (12,342) | ||||
Cost | (21,368) | ||||
Depletion | 9,026 | ||||
Other | (1,675) | ||||
Depreciation / depletion | (151,544) | (146,068) | |||
Ending balance | 619,000 | 662,210 | |||
Property, plant and equipment, cost | 1,784,807 | 1,755,092 | 1,404,759 | ||
Accumulated depreciation/depletion | (1,165,807) | (922,389) | (663,653) | ||
Property, plant and equipment | R$ 662210 | R$ 662210 | R$ 619000 | 662,210 | R$ 741106 |
Other | Previously disclosed | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 1,755,092 | ||||
Accumulated depreciation/depletion | (922,389) | ||||
Other | Reclassification | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | (92,650) | ||||
Accumulated depreciation/depletion | (77,843) | ||||
Other | Reclassified | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment, cost | 1,662,442 | ||||
Accumulated depreciation/depletion | R$ 1000232 |
Property, plant and equipment_3
Property, plant and equipment (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | R$ 31759890 | R$ 29761610 | R$ 29336710 |
Brazil | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 16,278,608 | 16,665,988 | |
Mexico | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 11,656,910 | 10,581,347 | |
United States of America | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 3,539,495 | 2,275,987 | |
Germany | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 273,987 | 229,328 | |
Other | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | R$ 10890 | R$ 8960 |
Intangible assets (Details)
Intangible assets (Details) - 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 detailed information about intangible assets [line items] | |||||
Beginning balance | R$ 2727497 | R$ 2809087 | |||
Acquisitions | 51,979 | 27,956 | |||
Additions through acquisition on subsidiary | 1,718 | ||||
Foreign currency translation adjustment | 33,818 | 12,184 | |||
Cost | 142,425 | ||||
Amortization | (108,607) | ||||
Transfers from property, plant and equipment projects and stoppage in progress | 4,461 | ||||
Other | (1,003) | 983 | |||
Cost | (596,557) | 1,376 | |||
Amortization | 595,554 | (393) | |||
Amortization | (75,770) | (124,431) | |||
Ending balance | 2,740,982 | 2,727,497 | |||
Intangible assets, cost | R$ 4817202 | R$ 4916819 | R$ 4866795 | ||
Accumulated amortization | (2,076,220) | (2,189,322) | (2,057,708) | ||
Intangible assets | 2,740,982 | 2,727,497 | 2,740,982 | 2,727,497 | 2,809,087 |
Reclassification | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, cost | 298,075 | ||||
Accumulated amortization | (298,075) | ||||
Reclassified | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, cost | 5,214,894 | ||||
Accumulated amortization | (2,487,397) | ||||
Goodwill based on expected future profitability | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 2,058,874 | 2,058,874 | |||
Acquisitions | 0 | 0 | |||
Additions through acquisition on subsidiary | 0 | ||||
Foreign currency translation adjustment | 0 | 0 | |||
Cost | 0 | ||||
Amortization | 0 | ||||
Transfers from property, plant and equipment projects and stoppage in progress | 0 | ||||
Other | 0 | 0 | |||
Cost | 0 | 0 | |||
Amortization | 0 | 0 | |||
Amortization | 0 | 0 | |||
Ending balance | 2,058,874 | 2,058,874 | |||
Intangible assets, cost | 3,187,678 | 3,187,722 | 3,187,722 | ||
Accumulated amortization | (1,128,804) | (1,128,848) | (1,128,848) | ||
Intangible assets | 2,058,874 | 2,058,874 | 2,058,874 | 2,058,874 | 2,058,874 |
Goodwill based on expected future profitability | Reclassification | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, cost | (44) | ||||
Accumulated amortization | 44 | ||||
Goodwill based on expected future profitability | Reclassified | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, cost | 3,187,678 | ||||
Accumulated amortization | (1,128,804) | ||||
Brands and Patents | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 227,350 | 228,632 | |||
Acquisitions | 0 | 340 | |||
Additions through acquisition on subsidiary | 0 | ||||
Foreign currency translation adjustment | 23,966 | 8,357 | |||
Cost | 27,021 | ||||
Amortization | (3,055) | ||||
Transfers from property, plant and equipment projects and stoppage in progress | 2,532 | ||||
Other | 0 | 1,107 | |||
Cost | 0 | 1,107 | |||
Amortization | 0 | 0 | |||
Amortization | (7,551) | (8,349) | |||
Ending balance | 246,297 | 227,350 | |||
Intangible assets, cost | 437,384 | 349,316 | 339,512 | ||
Accumulated amortization | (191,087) | (119,229) | (110,880) | ||
Intangible assets | 227,350 | 227,350 | 246,297 | 227,350 | 228,632 |
Brands and Patents | Reclassification | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, cost | 58,515 | ||||
Accumulated amortization | (61,252) | ||||
Brands and Patents | Reclassified | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, cost | 407,831 | ||||
Accumulated amortization | (180,481) | ||||
Software licenses | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 201,239 | 202,337 | |||
Acquisitions | 51,707 | 27,319 | |||
Additions through acquisition on subsidiary | 1,316 | ||||
Foreign currency translation adjustment | 10,037 | 4,759 | |||
Cost | 21,053 | ||||
Amortization | (11,016) | ||||
Transfers from property, plant and equipment projects and stoppage in progress | 1,929 | ||||
Other | 0 | (124) | |||
Cost | 0 | 269 | |||
Amortization | 0 | (393) | |||
Amortization | (30,780) | (43,467) | |||
Ending balance | 234,132 | 201,239 | |||
Intangible assets, cost | 799,960 | 607,528 | 566,673 | ||
Accumulated amortization | (565,828) | (415,388) | (364,336) | ||
Intangible assets | 201,239 | 201,239 | 234,132 | 201,239 | 202,337 |
Software licenses | Reclassification | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, cost | 117,743 | ||||
Accumulated amortization | (108,644) | ||||
Software licenses | Reclassified | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, cost | 725,271 | ||||
Accumulated amortization | (524,032) | ||||
Customers and Suppliers Agreements | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 240,034 | 319,244 | |||
Acquisitions | 272 | 297 | |||
Additions through acquisition on subsidiary | 402 | ||||
Foreign currency translation adjustment | (185) | (932) | |||
Cost | 94,351 | ||||
Amortization | (94,536) | ||||
Transfers from property, plant and equipment projects and stoppage in progress | 0 | ||||
Other | (1,003) | 0 | |||
Cost | (596,557) | 0 | |||
Amortization | 595,554 | 0 | |||
Amortization | (37,439) | (72,615) | |||
Ending balance | 201,679 | 240,034 | |||
Intangible assets, cost | 392,180 | 772,253 | 772,888 | ||
Accumulated amortization | (190,501) | (525,857) | (453,644) | ||
Intangible assets | R$ 240034 | R$ 240034 | R$ 201679 | 240,034 | R$ 319244 |
Customers and Suppliers Agreements | Reclassification | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, cost | 121,861 | ||||
Accumulated amortization | (128,223) | ||||
Customers and Suppliers Agreements | Reclassified | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, cost | 894,114 | ||||
Accumulated amortization | R$ 654080 |
Intangible assets (Details 1)
Intangible assets (Details 1) R$ in Thousands | Dec. 31, 2018BRL (R$) |
CGU - Chemicals South | |
Disclosure of detailed information about intangible assets [line items] | |
Allocated goodwill | R$ 926854 |
Cash flow (CF) | 9,628,209 |
Book value (with goodwill and work capital) | R$ 2479778 |
CF/Book value | 390.00% |
Operating segment - Polyolefins | |
Disclosure of detailed information about intangible assets [line items] | |
Allocated goodwill | R$ 939667 |
Cash flow (CF) | 21,750,937 |
Book value (with goodwill and work capital) | R$ 8189204 |
CF/Book value | 270.00% |
Operating segment - Vinyls | |
Disclosure of detailed information about intangible assets [line items] | |
Allocated goodwill | R$ 192353 |
Cash flow (CF) | 4,617,326 |
Book value (with goodwill and work capital) | R$ 2763882 |
CF/Book value | 170.00% |
Intangible assets (Details 2)
Intangible assets (Details 2) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
CGU - Chemicals South | |
Disclosure of detailed information about intangible assets [line items] | |
+0.5% on discount rate | R$ 9099954 |
-0.5% on perpetuity | 9,249,202 |
Operating segment - Polyolefins | |
Disclosure of detailed information about intangible assets [line items] | |
+0.5% on discount rate | 20,455,434 |
-0.5% on perpetuity | 20,798,767 |
Operating segment - Vinyls | |
Disclosure of detailed information about intangible assets [line items] | |
+0.5% on discount rate | 4,351,801 |
-0.5% on perpetuity | R$ 4424347 |
Intangible assets (Details 3)
Intangible assets (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | R$ 2740982 | R$ 2727497 | R$ 2809087 |
Brazil | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 2,510,503 | 2,502,231 | |
Mexico | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 178,261 | 151,930 | |
United States of America | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 26,791 | 47,357 | |
Germany | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 25,373 | 25,948 | |
Other | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | R$ 54 | R$ 31 |
Trade account payables (Details
Trade account payables (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfTradeAccountPayablesLineItems [Line Items] | ||
Trade account payables | R$ 8378504 | R$ 5058796 |
Trade account payables, current | 8,341,252 | 5,058,796 |
Trade account payables, noncurrent | 37,252 | 0 |
Domestic market | ||
DisclosureOfTradeAccountPayablesLineItems [Line Items] | ||
Trade account payables | 1,551,554 | 2,287,767 |
Foreign market | ||
DisclosureOfTradeAccountPayablesLineItems [Line Items] | ||
Trade account payables | 6,934,598 | 2,817,917 |
Present value adjustment - foreign market | ||
DisclosureOfTradeAccountPayablesLineItems [Line Items] | ||
Trade account payables | R$ 107648 | R$ 46888 |
Borrowings (Details)
Borrowings (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 24898156 | R$ 23361421 |
Borrowings, current | 737,436 | 1,184,781 |
Borrowings, noncurrent | 24,160,720 | 22,176,640 |
Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 24,161,801 | 22,141,580 |
Borrowings, current | 610,922 | 985,639 |
Borrowings, noncurrent | 23,550,879 | 21,155,941 |
Foreign currency | Bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 21,930,575 | 20,082,588 |
Foreign currency | Export prepayment | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 810,542 | 781,573 |
Foreign currency | Export credit notes | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 679,895 |
Foreign currency | Working capital | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 883,181 |
Foreign currency | Working capital | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 48 | 0 |
Foreign currency | Investments | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 620,160 | 0 |
Foreign currency | Other - SACE | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,147,397 | 0 |
Foreign currency | Transactions costs | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | (346,921) | (285,657) |
Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 736,355 | 1,219,841 |
Borrowings, current | 126,514 | 199,142 |
Borrowings, noncurrent | 609,841 | 1,020,699 |
Local currency | Export credit notes | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 406,258 | 0 |
Local currency | Transactions costs | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | (33) | (4,931) |
Local currency | Export credit notes | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 508,146 |
Local currency | BNDES | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 31,347 |
Local currency | BNDES | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 22,039 |
Local currency | BNDES | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 52,081 | 132,020 |
Local currency | BNB/FINEP/FUNDES/FINISA/FINAME | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 239,969 | 486,227 |
Local currency | FINAME | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 555 | 2,293 |
Local currency | Fundo de Desenvolvimento do Nordeste (FDNE) | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 37,099 | 42,045 |
Local currency | Other | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 426 | R$ 655 |
Borrowings (Details 1)
Borrowings (Details 1) R$ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2017BRL (R$) | |
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | $ | $ 3,193,089 | ||
Borrowings | R$ 24898156 | R$ 23361421 | |
Foreign currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | R$ 24161801 | 22,141,580 | |
Foreign currency | Bonds 1 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | June 2008 | ||
Issue amount | $ | $ 500,000 | ||
Maturity | June 2018 | ||
Interest (% per year) | 7.25% | 7.25% | |
Borrowings | R$ 0 | 440,274 | |
Foreign currency | Bonds 2 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | May 2010 | ||
Issue amount | $ | $ 400,000 | ||
Maturity | May 2020 | ||
Interest (% per year) | 7.00% | 7.00% | |
Borrowings | R$ 81434 | 159,341 | |
Foreign currency | Bonds 3 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | May 2010 | ||
Issue amount | $ | $ 350,000 | ||
Maturity | May 2020 | ||
Interest (% per year) | 7.00% | 7.00% | |
Borrowings | R$ 1370156 | 1,169,732 | |
Foreign currency | Bonds 4 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | October 2010 | ||
Issue amount | $ | $ 450,000 | ||
Maturity | no maturity date | ||
Interest (% per year) | 7.38% | 7.38% | |
Borrowings | R$ 985767 | 1,514,826 | |
Foreign currency | Bonds 5 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | April 2011 | ||
Issue amount | $ | $ 750,000 | ||
Maturity | April 2021 | ||
Interest (% per year) | 5.75% | 5.75% | |
Borrowings | R$ 2676195 | 2,502,351 | |
Foreign currency | Bonds 6 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | July 2011 | ||
Issue amount | $ | $ 500,000 | ||
Maturity | July 2041 | ||
Interest (% per year) | 7.13% | 7.13% | |
Borrowings | R$ 1997984 | 1,705,722 | |
Foreign currency | Bonds 7 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | February 2012 | ||
Issue amount | $ | $ 250,000 | ||
Maturity | April 2021 | ||
Interest (% per year) | 5.75% | 5.75% | |
Borrowings | R$ 980304 | 836,907 | |
Foreign currency | Bonds 8 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | February 2012 | ||
Issue amount | $ | $ 250,000 | ||
Maturity | no maturity date | ||
Interest (% per year) | 7.38% | 7.38% | |
Borrowings | R$ 985767 | 841,570 | |
Foreign currency | Bonds 9 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | May 2012 | ||
Issue amount | $ | $ 500,000 | ||
Maturity | May 2022 | ||
Interest (% per year) | 5.38% | 5.38% | |
Borrowings | R$ 1954177 | 1,668,323 | |
Foreign currency | Bonds 10 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | July 2012 | ||
Issue amount | $ | $ 250,000 | ||
Maturity | July 2041 | ||
Interest (% per year) | 7.13% | 7.13% | |
Borrowings | R$ 998992 | 852,861 | |
Foreign currency | Bonds 11 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | February 2014 | ||
Issue amount | $ | $ 500,000 | ||
Maturity | February 2024 | ||
Interest (% per year) | 6.45% | 6.45% | |
Borrowings | R$ 1988773 | 1,697,859 | |
Foreign currency | Bonds 12 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | May 2014 | ||
Issue amount | $ | $ 250,000 | ||
Maturity | February 2024 | ||
Interest (% per year) | 6.45% | 6.45% | |
Borrowings | R$ 994387 | 848,929 | |
Foreign currency | Bonds 13 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | October 2017 | ||
Issue amount | $ | $ 500,000 | ||
Maturity | January 2023 | ||
Interest (% per year) | 3.50% | 3.50% | |
Borrowings | R$ 1969609 | 1,667,025 | |
Foreign currency | Bonds 14 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | October 2017 | ||
Issue amount | $ | $ 1,250,000 | ||
Maturity | January 2028 | ||
Interest (% per year) | 4.50% | 4.50% | |
Borrowings | R$ 4947030 | 4,176,868 | |
Foreign currency | Bonds | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | $ | $ 6,700,000 | ||
Borrowings | R$ 21930575 | R$ 20082588 |
Borrowings (Details 2)
Borrowings (Details 2) R$ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2017BRL (R$) | |
Disclosure of detailed information about borrowings [line items] | |||
Initial amount of the transaction | $ | $ 3,193,089 | ||
Borrowings | R$ 24898156 | R$ 23361421 | |
Foreign currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | R$ 24161801 | 22,141,580 | |
Foreign currency | Export prepayment 1 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | January 2013 | ||
Initial amount of the transaction | $ | 200,000 | ||
Maturity | November 2022 | ||
Charges (% per year) | US dollar exchange variation + semiannual Libor + 1.10 | ||
Borrowings | R$ 311082 | 331,701 | |
Foreign currency | Export prepayment 2 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | September 2017 | ||
Initial amount of the transaction | $ | 135,000 | ||
Maturity | March 2017 | ||
Charges (% per year) | US dollar exchange variation + semiannual Libor + 1.61 | ||
Borrowings | R$ 499460 | 449,872 | |
Foreign currency | Export prepayment | |||
Disclosure of detailed information about borrowings [line items] | |||
Initial amount of the transaction | $ | $ 335,000 | ||
Borrowings | R$ 810542 | R$ 781573 |
Borrowings (Details 3)
Borrowings (Details 3) R$ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2017BRL (R$) | |
Disclosure of detailed information about borrowings [line items] | |||
Initial amount of the transaction | $ | $ 3,193,089 | ||
Borrowings | R$ 24898156 | R$ 23361421 | |
Foreign currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | R$ 24161801 | 22,141,580 | |
Foreign currency | Investment 1 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | July 2018 | ||
Initial amount of the transaction | $ | 158,150 | ||
Maturity | December 2028 | ||
Charges (% per year) | Us dollar exchange variation + semianual Libor + 0.65 | ||
Borrowings | R$ 620160 | 0 | |
Foreign currency | Investments | |||
Disclosure of detailed information about borrowings [line items] | |||
Initial amount of the transaction | $ | $ 158,150 | ||
Borrowings | R$ 620160 | R$ 0 |
Borrowings (Details 4)
Borrowings (Details 4) R$ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2017BRL (R$) | |
Disclosure of detailed information about borrowings [line items] | |||
Initial amount of the transaction | $ | $ 3,193,089 | ||
Borrowings | R$ 24898156 | R$ 23361421 | |
Foreign currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | R$ 24161801 | 22,141,580 | |
Foreign currency | Other - SACE 1 | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | November 2018 | ||
Initial amount of the transaction | $ | 295,125 | ||
Maturity | November 2028 | ||
Charges (% per year) | Us dollar exchange variation + semianual Libor + 0.90 | ||
Borrowings | R$ 1147397 | 0 | |
Foreign currency | Other - SACE | |||
Disclosure of detailed information about borrowings [line items] | |||
Initial amount of the transaction | $ | $ 295,125 | ||
Borrowings | R$ 1147397 | R$ 0 |
Borrowings (Details 5)
Borrowings (Details 5) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | R$ 24160720 | R$ 22176640 |
2019 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 0 | 1,245,895 |
2020 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 1,748,531 | 2,199,869 |
2021 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 3,933,857 | 3,655,465 |
2022 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 2,256,444 | 1,801,844 |
2023 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 2,355,549 | 1,709,587 |
2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 3,336,032 | 2,539,216 |
2025 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 234,270 | 45,994 |
2026 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 234,296 | 44,239 |
2027 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 205,157 | 17,586 |
2028 and thereafter | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | R$ 9856584 | R$ 8916945 |
Borrowings (Details 6)
Borrowings (Details 6) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Disclosure of detailed information about borrowings [line items] | |
Total debt | R$ 293029 |
Total guaranteed | R$ 293029 |
BNB | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | December 2022 |
Total debt | R$ 88909 |
Total guaranteed | R$ 88909 |
Guarantees | Mortgage of plants, pledge of machinery and equipment |
BNB | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | March 2023 |
Total debt | R$ 32093 |
Total guaranteed | R$ 32093 |
Guarantees | Bank surety |
BNDES | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | January 2021 |
Total debt | R$ 52081 |
Total guaranteed | R$ 52081 |
Guarantees | Mortgage of plants, land and property, pledge of machinery and equipment |
FUNDES | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | June 2020 |
Total debt | R$ 47929 |
Total guaranteed | R$ 47929 |
Guarantees | Mortgage of plants, land and property, pledge of machinery and equipment |
FINEP | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | July 2024 |
Total debt | R$ 61725 |
Total guaranteed | R$ 61725 |
Guarantees | Bank surety |
FINEP | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | December 2019 |
Total debt | R$ 2872 |
Total guaranteed | R$ 2872 |
Guarantees | Bank surety, pledge of equipment and current account lockout (restricted fund). |
FINAME | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | April 2021 |
Total debt | R$ 1496 |
Total guaranteed | R$ 1496 |
Guarantees | Pledge of equipment |
FINISA | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | December 2023 |
Total debt | R$ 5500 |
Total guaranteed | R$ 5500 |
Guarantees | Bank surety |
OTHER | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | July 2021 |
Total debt | R$ 424 |
Total guaranteed | R$ 424 |
Guarantees | Pledge of equipment |
Braskem Idesa Financing (Detail
Braskem Idesa Financing (Details) R$ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2017BRL (R$) | |
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | |||
Initial amount of the transaction | $ | $ 3,193,089 | ||
Braskem Idesa borrowings | R$ 10504592 | R$ 9691450 | |
Braskem Idesa borrowings, current | R$ 10504592 | 9,691,450 | |
Project finance I | |||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | |||
Initial amount of the transaction | $ | 700,000 | ||
Maturity | February 2027 | ||
Charges (% per year) | Us dollar exchange variation + quarterly Libor + 3.25 | ||
Braskem Idesa borrowings | R$ 2335825 | 2,179,981 | |
Project finance II | |||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | |||
Initial amount of the transaction | $ | 210,000 | ||
Maturity | February 2027 | ||
Charges (% per year) | Us dollar exchange variation + 6.17 | ||
Braskem Idesa borrowings | R$ 657689 | 621,140 | |
Project finance III | |||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | |||
Initial amount of the transaction | $ | 600,000 | ||
Maturity | February 2029 | ||
Charges (% per year) | Us dollar exchange variation + 4.33 | ||
Braskem Idesa borrowings | R$ 1983113 | 1,827,811 | |
Project finance IV | |||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | |||
Initial amount of the transaction | $ | 660,000 | ||
Maturity | February 2029 | ||
Charges (% per year) | Us dollar exchange variation + quarterly Libor + 3.88 | ||
Braskem Idesa borrowings | R$ 2225042 | 2,032,093 | |
Project finance V | |||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | |||
Initial amount of the transaction | $ | 400,000 | ||
Maturity | February 2029 | ||
Charges (% per year) | Us dollar exchange variation + quarterly Libor + 4.65 | ||
Braskem Idesa borrowings | R$ 1326901 | 1,221,997 | |
Project finance VI | |||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | |||
Initial amount of the transaction | $ | 89,994 | ||
Maturity | February 2029 | ||
Charges (% per year) | Us dollar exchange variation + quarterly Libor + 2.73 | ||
Braskem Idesa borrowings | R$ 297158 | 273,887 | |
Project finance VII | |||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | |||
Initial amount of the transaction | $ | $ 533,095 | ||
Maturity | February 2029 | ||
Charges (% per year) | Us dollar exchange variation + quarterly Libor + 4.64 | ||
Braskem Idesa borrowings | R$ 1768389 | 1,627,479 | |
Transactions costs | |||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | |||
Braskem Idesa borrowings | R$ 89525 | R$ 92938 |
Braskem Idesa Financing (Deta_2
Braskem Idesa Financing (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | R$ 9554476 | R$ 8907733 |
2019 | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 0 | 748,071 |
2020 | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 1,016,916 | 877,450 |
2021 | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 1,161,108 | 1,002,270 |
2022 | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 968,519 | 835,009 |
2023 | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 1,280,154 | 1,105,295 |
2024 | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 1,385,087 | 1,195,682 |
2025 | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 1,381,192 | 1,195,096 |
2026 | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 1,194,964 | 1,052,156 |
2027 | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 582,393 | 474,438 |
2028 and thereafter | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | R$ 584143 | R$ 422266 |
Debentures (Details)
Debentures (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures | R$ 294509 | R$ 313324 |
Debentures, current | 27,732 | 27,183 |
Debentures, noncurrent | R$ 266777 | 286,141 |
Debentures 1 | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Issue date | March 2013 | |
Maturity | March 2025 | |
Annual financial charges (%) | IPCA + 6% | |
Debentures | R$ 210506 | 216,968 |
Debentures 2 | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Issue date | September 2013 | |
Maturity | September 2025 | |
Annual financial charges (%) | 126.5% of CDI | |
Debentures | R$ 84003 | R$ 96356 |
Debentures (Details 1)
Debentures (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | R$ 266777 | R$ 286141 |
2019 | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | 0 | 26,629 |
2020 | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | 44,811 | 43,674 |
2021 | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | 50,722 | 49,326 |
2022 | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | 50,745 | 49,326 |
2023 | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | 50,769 | 49,326 |
2024 | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | 50,796 | 49,326 |
2025 | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | R$ 18934 | R$ 18534 |
Reconciliation of financing a_3
Reconciliation of financing activities in statement of cash flow (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
DisclosureOfFinancingActivitiesInStatementOfCashFlowLineItems [Line Items] | |
Beginning balance | R$ 33366195 |
Acquired | 4,301,626 |
Payments | (7,405,126) |
Cash used in financing activities | (3,103,500) |
Other changes | |
Interest paid | (1,916,801) |
Interest and monetary and exchange variations, net | 4,336,647 |
Currency translation adjustments | 3,014,716 |
Additional dividends approved in the board meeting | 0 |
Mandatory minimum dividends | 0 |
Prescribed dividends / other | 0 |
Total other changes | 5,434,562 |
Ending balance | 35,697,257 |
Borrowings | |
DisclosureOfFinancingActivitiesInStatementOfCashFlowLineItems [Line Items] | |
Beginning balance | 23,361,421 |
Acquired | 4,301,626 |
Payments | (6,569,073) |
Cash used in financing activities | (2,267,447) |
Other changes | |
Interest paid | (1,304,811) |
Interest and monetary and exchange variations, net | 3,703,892 |
Currency translation adjustments | 1,405,101 |
Additional dividends approved in the board meeting | 0 |
Mandatory minimum dividends | 0 |
Prescribed dividends / other | 0 |
Total other changes | 3,804,182 |
Ending balance | 24,898,156 |
Debentures | |
DisclosureOfFinancingActivitiesInStatementOfCashFlowLineItems [Line Items] | |
Beginning balance | 313,324 |
Acquired | 0 |
Payments | (23,124) |
Cash used in financing activities | (23,124) |
Other changes | |
Interest paid | (23,609) |
Interest and monetary and exchange variations, net | 27,918 |
Currency translation adjustments | 0 |
Additional dividends approved in the board meeting | 0 |
Mandatory minimum dividends | 0 |
Prescribed dividends / other | 0 |
Total other changes | 4,309 |
Ending balance | 294,509 |
Total borrowings and debentures | |
DisclosureOfFinancingActivitiesInStatementOfCashFlowLineItems [Line Items] | |
Beginning balance | 23,674,745 |
Acquired | 4,301,626 |
Payments | (6,592,197) |
Cash used in financing activities | (2,290,571) |
Other changes | |
Interest paid | (1,328,420) |
Interest and monetary and exchange variations, net | 3,731,810 |
Currency translation adjustments | 1,405,101 |
Additional dividends approved in the board meeting | 0 |
Mandatory minimum dividends | 0 |
Prescribed dividends / other | 0 |
Total other changes | 3,808,491 |
Ending balance | 25,192,665 |
Braskem Idesa financing | |
DisclosureOfFinancingActivitiesInStatementOfCashFlowLineItems [Line Items] | |
Beginning balance | 9,691,450 |
Acquired | 0 |
Payments | (812,929) |
Cash used in financing activities | (812,929) |
Other changes | |
Interest paid | (588,381) |
Interest and monetary and exchange variations, net | 604,837 |
Currency translation adjustments | 1,609,615 |
Additional dividends approved in the board meeting | 0 |
Mandatory minimum dividends | 0 |
Prescribed dividends / other | 0 |
Total other changes | 1,626,071 |
Ending balance | 10,504,592 |
Dividends | |
DisclosureOfFinancingActivitiesInStatementOfCashFlowLineItems [Line Items] | |
Beginning balance | 3,850 |
Acquired | 0 |
Payments | (1,499,900) |
Cash used in financing activities | (1,499,900) |
Other changes | |
Interest paid | 0 |
Interest and monetary and exchange variations, net | 0 |
Currency translation adjustments | 0 |
Additional dividends approved in the board meeting | 1,500,000 |
Mandatory minimum dividends | 667,419 |
Prescribed dividends / other | 1,026 |
Total other changes | 2,168,445 |
Ending balance | R$ 672395 |
Financial instruments (Details)
Financial instruments (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Trade payables | Amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | R$ 8378504 | R$ 5058796 |
Fair value financial liabilities | 8,378,504 | 5,058,796 |
Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 25,245,110 | 23,652,009 |
Fair value financial liabilities | 24,904,035 | 24,499,048 |
Loan to non-controlling shareholder of Braskem Idesa | Amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 2,183,830 | 1,756,600 |
Fair value financial liabilities | 2,183,830 | 1,756,600 |
Leniency agreement | Amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 1,443,002 | 1,629,114 |
Fair value financial liabilities | 0 | 1,629,114 |
Level 2 | Borrowings | Amortized cost | Foreign currency - other borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 2,578,147 | 2,344,649 |
Fair value financial liabilities | 2,277,069 | 2,228,608 |
Level 2 | Borrowings | Amortized cost | Local currency | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 736,388 | 1,224,772 |
Fair value financial liabilities | 598,926 | 1,039,873 |
Level 2 | Braskem Idesa borrowings | Amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 10,594,117 | 9,784,388 |
Fair value financial liabilities | 9,367,878 | 8,675,711 |
Level 2 | Debentures | Amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 294,509 | 313,324 |
Fair value financial liabilities | 239,976 | 214,815 |
Level 1 | Borrowings | Amortized cost | Foreign currency - Bond | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 21,930,575 | 20,082,588 |
Fair value financial liabilities | 22,028,040 | 21,230,567 |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 5,547,637 | 3,775,093 |
Fair value financial assets | 5,547,637 | 3,775,093 |
Cash and cash equivalents | Cash and banks | Amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 2,228,964 | 1,428,766 |
Fair value financial assets | 2,228,964 | 1,428,766 |
Cash and cash equivalents | Financial investments in Brazil | Fair value through profit or loss | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 1,754,561 | 1,706,784 |
Fair value financial assets | 1,754,561 | 1,706,784 |
Cash and cash equivalents | Financial investments abroad | Fair value through profit or loss | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 1,564,112 | 639,543 |
Fair value financial assets | 1,564,112 | 639,543 |
Financial investments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 2,367,611 | 2,313,008 |
Fair value financial assets | 2,367,611 | 2,313,008 |
Financial investments | Letras financeiras do tesouro - LFT | Fair value through profit or loss | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 2,247,272 | 1,816,889 |
Fair value financial assets | 2,247,272 | 1,816,889 |
Financial investments | Time deposit investments | Fair value through profit or loss | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 0 | 15,764 |
Fair value financial assets | 0 | 15,764 |
Financial investments | Time deposit investments | Amortized cost | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 49,630 | 440,616 |
Fair value financial assets | 49,630 | 440,616 |
Financial investments | Other | Fair value through profit or loss | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 70,709 | 39,739 |
Fair value financial assets | 70,709 | 39,739 |
Trade accounts receivable | Fair value through profit or loss | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 47,540 | 73,841 |
Fair value financial assets | 47,540 | 73,240 |
Trade accounts receivable | Amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 3,045,463 | 3,244,851 |
Fair value financial assets | R$ 3045463 | R$ 3244851 |
Financial instruments (Details
Financial instruments (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives | ||
Current assets | R$ 27714 | R$ 3793 |
Non-current assets | (46,664) | (32,666) |
Current liabilities | 70,305 | 6,875 |
Non-current liabilities | 161,694 | R$ 0 |
Non-hedge accounting transactions | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | 0 | |
Change in fair value | 5,983 | |
Financial settlement | (235) | |
Ending balance | 5,748 | |
Non-hedge accounting transactions | Exchange swap | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | 0 | |
Change in fair value | 752 | |
Financial settlement | (235) | |
Ending balance | 517 | |
Non-hedge accounting transactions | NCE swap | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | 0 | |
Change in fair value | 5,231 | |
Financial settlement | 0 | |
Ending balance | 5,231 | |
Hedge accounting transactions | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | (29,584) | |
Change in fair value | 181,740 | |
Financial settlement | (283) | |
Ending balance | 151,873 | |
Accumulated OCI (equity) | (433,213) | |
Hedge accounting transactions | Dollar put option | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | (3,793) | |
Change in fair value | 39,932 | |
Financial settlement | 0 | |
Ending balance | 36,139 | |
Accumulated OCI (equity) | (40,338) | |
Hedge accounting transactions | Dollar swap | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | 0 | |
Change in fair value | 183,398 | |
Financial settlement | 0 | |
Ending balance | 183,398 | |
Accumulated OCI (equity) | (183,808) | |
Hedge accounting transactions | Interest rate swaps | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | (25,791) | |
Change in fair value | (41,590) | |
Financial settlement | (283) | |
Ending balance | (67,664) | |
Accumulated OCI (equity) | R$ 209067 |
Financial instruments (Detail_2
Financial instruments (Details 2) R$ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2017BRL (R$) | |
Derivatives | |||
Current assets | R$ 27714 | R$ 3793 | |
Non-current assets | (46,664) | (32,666) | |
Current liabilities | 70,305 | 6,875 | |
Braskem Idesa | |||
Disclosure of detailed information about financial instruments [line items] | |||
Nominal value | $ | $ 1,312,892 | ||
Fair value | (67,664) | (25,791) | |
Derivatives | |||
Current assets | (21,000) | 0 | |
Non-current assets | (46,664) | (32,666) | |
Current liabilities | 0 | 6,875 | |
Total | R$ 67664 | (25,791) | |
Braskem Idesa | Swap Libor I to VI | |||
Disclosure of detailed information about financial instruments [line items] | |||
Nominal value | $ | $ 1,312,892 | ||
Hedge (interest rate per year) | 1.9825% | 1.9825% | |
Maturity | May 2025 | ||
Fair value | R$ 67664 | R$ 25791 |
Financial instruments (Detail_3
Financial instruments (Details 3) $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | $ 5,550,205 |
2019 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 733,980 |
2020 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 723,999 |
2021 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 716,000 |
2022 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 719,000 |
2023 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 718,372 |
2024 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 688,854 |
2028 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | $ 1,250,000 |
Financial instruments (Detail_4
Financial instruments (Details 4) $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | $ 5,550,205 |
2019 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 733,980 |
2020 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 723,999 |
2021 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 716,000 |
2022 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 719,000 |
2023 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 718,372 |
2024 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 688,854 |
2028 | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | $ 1,250,000 |
Financial instruments (Detail_5
Financial instruments (Details 5) R$ in Thousands, $ in Thousands | Dec. 31, 2018BRL (R$)R$ / $ | Dec. 31, 2018USD ($)R$ / $ |
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 787,893 | |
Gross nominal value | R$ | R$ 1022782 | |
First quarter | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 189,325 | |
Conversion rate at inception | 2.0017 | 2.0017 |
Closing rate | 3.3082 | 3.3082 |
Gross nominal value | R$ | R$ 247353 | |
Second quarter | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 208,405 | |
Conversion rate at inception | 2.0017 | 2.0017 |
Closing rate | 3.2769 | 3.2769 |
Gross nominal value | R$ | R$ 265758 | |
Third quarter | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 193,190 | |
Conversion rate at inception | 2.0017 | 2.0017 |
Closing rate | 3.3080 | 3.3080 |
Gross nominal value | R$ | R$ 252364 | |
Fourth quarter | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 196,973 | |
Conversion rate at inception | 2.0017 | 2.0017 |
Closing rate | 3.3080 | 3.3080 |
Gross nominal value | R$ | R$ 257307 |
Financial instruments (Detail_6
Financial instruments (Details 6) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | R$ 4497334 |
Exchange variation recorded in the period on OCI / IR and CSL | (2,076,266) |
Exchange variation transferred to profit or loss / IR and CSL | 675,036 |
Ending balance | (5,898,564) |
Exchange variation | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | (6,814,142) |
Exchange variation recorded in the period on OCI / IR and CSL | (3,145,857) |
Exchange variation transferred to profit or loss / IR and CSL | 1,022,782 |
Ending balance | (8,937,217) |
IR and CSL | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | 2,316,808 |
Exchange variation recorded in the period on OCI / IR and CSL | 1,069,591 |
Exchange variation transferred to profit or loss / IR and CSL | (347,746) |
Ending balance | R$ 3038653 |
Financial instruments (Detail_7
Financial instruments (Details 7) $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | $ 733,980 |
First quarter | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 150,000 |
Second quarter | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 183,495 |
Third quarter | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 183,495 |
Fourth quarter | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | $ 216,990 |
Financial instruments (Detail_8
Financial instruments (Details 8) $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | $ 2,720,272 |
2019 | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 229,270 |
2020 | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 266,690 |
2021 | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 303,392 |
2022 | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 253,204 |
2023 | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 333,093 |
2024 | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 359,559 |
2025 | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 357,903 |
2026 | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 309,240 |
2027 | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 152,103 |
2028 | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 124,654 |
2029 | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | $ 31,164 |
Financial instruments (Detail_9
Financial instruments (Details 9) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Financial Instruments | |
Beginning balance | $ 2,930,246 |
Sales in the year | (221,790) |
Hedge discontinued | 400 |
Ending balance | $ 2,708,856 |
Financial instruments (Detai_10
Financial instruments (Details 10) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | $ 2,708,856 | $ 2,930,246 |
2019 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 228,850 | |
2020 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 266,187 | |
2021 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 302,816 | |
2022 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 252,723 | |
2023 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 332,458 | |
2024 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 358,873 | |
2025 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 357,221 | |
2026 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 308,650 | |
2027 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 150,419 | |
2028 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 124,347 | |
2029 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | $ 26,312 |
Financial instruments (Detai_11
Financial instruments (Details 11) - Braskem Idesa R$ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2018BRL (R$)$ / $ | Dec. 31, 2018USD ($)$ / $ | Dec. 31, 2018MXN ($)$ / $ |
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 51,799 | ||
Gross nominal value | R$ | R$ 8707 | ||
Hedge discontinued | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 11,416 | ||
Conversion rate at inception | $ / $ | 13.4541 | 13.4541 | 13.4541 |
Closing rate | $ / $ | 17.9915 | 17.9915 | 17.9915 |
Total nominal value | $ 51,799 | ||
Gross nominal value | R$ | R$ 8707 |
Financial instruments (Detai_12
Financial instruments (Details 12) - Dec. 31, 2018 R$ in Thousands, $ in Thousands, $ in Thousands | BRL (R$)R$ / $$ / $ | USD ($)R$ / $$ / $ | MXN ($)R$ / $$ / $ |
First quarter | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | R$ / $ | 2.0017 | 2.0017 | 2.0017 |
Closing rate | R$ / $ | 3.3082 | 3.3082 | 3.3082 |
Second quarter | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | R$ / $ | 2.0017 | 2.0017 | 2.0017 |
Closing rate | R$ / $ | 3.2769 | 3.2769 | 3.2769 |
Third quarter | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | R$ / $ | 2.0017 | 2.0017 | 2.0017 |
Closing rate | R$ / $ | 3.3080 | 3.3080 | 3.3080 |
Fourth quarter | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | R$ / $ | 2.0017 | 2.0017 | 2.0017 |
Closing rate | R$ / $ | 3.3080 | 3.3080 | 3.3080 |
Braskem Idesa | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 221,790 | ||
Total nominal value | $ 1,252,449 | ||
Gross nominal value | R$ | R$ 236570 | ||
Braskem Idesa | First quarter | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 53,889 | ||
Conversion rate at inception | $ / $ | 13.6649 | 13.6649 | 13.6649 |
Closing rate | $ / $ | 18.6631 | 18.6631 | 18.6631 |
Total nominal value | $ 269,348 | ||
Gross nominal value | R$ | R$ 46934 | ||
Braskem Idesa | Second quarter | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 55,136 | ||
Conversion rate at inception | $ / $ | 13.6560 | 13.6560 | 13.6560 |
Closing rate | $ / $ | 19.4484 | 19.4484 | 19.4484 |
Total nominal value | $ 319,370 | ||
Gross nominal value | R$ | R$ 59371 | ||
Braskem Idesa | Third quarter | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 56,383 | ||
Conversion rate at inception | $ / $ | 13.6536 | 13.6536 | 13.6536 |
Closing rate | $ / $ | 18.832 | 18.832 | 18.832 |
Total nominal value | $ 291,974 | ||
Gross nominal value | R$ | R$ 60810 | ||
Braskem Idesa | Fourth quarter | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 56,382 | ||
Conversion rate at inception | $ / $ | 13.6537 | 13.6537 | 13.6537 |
Closing rate | $ / $ | 20.2473 | 20.2473 | 20.2473 |
Total nominal value | $ 371,757 | ||
Gross nominal value | R$ | R$ 69455 |
Financial instruments (Detai_13
Financial instruments (Details 13) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | R$ 4497334 |
Exchange variation recorded in the period on OCI / IR and CSL | (2,076,266) |
Exchange variation transferred to profit or loss / IR and CSL | 675,036 |
Ending balance | (5,898,564) |
Exchange variation | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | (6,814,142) |
Exchange variation recorded in the period on OCI / IR and CSL | (3,145,857) |
Exchange variation transferred to profit or loss / IR and CSL | 1,022,782 |
Ending balance | (8,937,217) |
IR and CSL | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | 2,316,808 |
Exchange variation recorded in the period on OCI / IR and CSL | 1,069,591 |
Exchange variation transferred to profit or loss / IR and CSL | (347,746) |
Ending balance | 3,038,653 |
Braskem Idesa | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | (2,481,213) |
Exchange variation recorded in the period on OCI / IR and CSL | 11,677 |
Exchange variation transferred to profit or loss / IR and CSL | 165,599 |
Ending balance | (2,303,937) |
Braskem Idesa | Exchange variation | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | (3,545,639) |
Exchange variation recorded in the period on OCI / IR and CSL | 16,681 |
Exchange variation transferred to profit or loss / IR and CSL | 236,570 |
Ending balance | (3,292,388) |
Braskem Idesa | IR and CSL | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | 1,064,426 |
Exchange variation recorded in the period on OCI / IR and CSL | (5,004) |
Exchange variation transferred to profit or loss / IR and CSL | (70,971) |
Ending balance | R$ 988451 |
Financial instruments (Detai_14
Financial instruments (Details 14) - Braskem Idesa $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | $ 229,270 |
First quarter | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 56,382 |
Second quarter | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 56,383 |
Third quarter | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 57,629 |
Fourth quarter | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | $ 58,876 |
Financial instruments (Detai_15
Financial instruments (Details 15) | Dec. 31, 2018 | Dec. 31, 2017 |
1 Minimum risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Credit rating | 67.50% | 18.84% |
2 Low risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Credit rating | 18.60% | 50.84% |
3 Moderate risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Credit rating | 7.61% | 13.33% |
4 High risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Credit rating | 5.02% | 13.40% |
5 Very high risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Credit rating | 1.27% | 3.59% |
Financial instruments (Detai_16
Financial instruments (Details 16) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Domestic market | |||
Disclosure of detailed information about financial instruments [line items] | |||
Credit rating | 0.08% | 0.08% | 0.18% |
Export market | |||
Disclosure of detailed information about financial instruments [line items] | |||
Credit rating | 0.45% | 0.19% | 0.04% |
Financial instruments (Detai_17
Financial instruments (Details 17) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets with risk assessment | R$ 7906358 | R$ 6082219 |
Financial assets without risk assessment | 8,890 | 5,882 |
Financial assets | 7,915,248 | 6,088,101 |
AAA | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets with risk assessment | 4,294,100 | 3,569,392 |
AA+ | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets with risk assessment | 1,175,098 | 27,094 |
AA | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets with risk assessment | 79,136 | 8,047 |
AA- | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets with risk assessment | 1,076 | 209,389 |
A+ | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets with risk assessment | 1,103,647 | 1,465,107 |
A | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets with risk assessment | 165,899 | 349,823 |
A- | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets with risk assessment | 169,580 | 0 |
BBB+ | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets with risk assessment | 917,541 | 453,367 |
BB+ | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets with risk assessment | 252 | 0 |
BB- | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets with risk assessment | 29 | 0 |
Other financial assets with no risk assessment | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets without risk assessment | R$ 8890 | R$ 5882 |
Financial instruments (Detai_18
Financial instruments (Details 18) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Brazilian real/U.S. dollar exchange rate | Bonds | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | R$ 418995 |
Possible adverse gain (loss) -25% | (5,426,211) |
Extreme adverse gain (loss) -50% | (10,852,422) |
Brazilian real/U.S. dollar exchange rate | Braskem Idesa borrowings | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 204,511 |
Possible adverse gain (loss) -25% | (2,648,529) |
Extreme adverse gain (loss) -50% | (5,297,058) |
Brazilian real/U.S. dollar exchange rate | Export prepayments | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 15,647 |
Possible adverse gain (loss) -25% | (202,635) |
Extreme adverse gain (loss) -50% | (405,271) |
Brazilian real/U.S. dollar exchange rate | Investments | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 11,972 |
Possible adverse gain (loss) -25% | (155,040) |
Extreme adverse gain (loss) -50% | (310,080) |
Brazilian real/U.S. dollar exchange rate | Sace | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 22,150 |
Possible adverse gain (loss) -25% | (286,849) |
Extreme adverse gain (loss) -50% | (573,699) |
Brazilian real/U.S. dollar exchange rate | Dollar put option | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 31,532 |
Possible adverse gain (loss) -25% | (708,357) |
Extreme adverse gain (loss) -50% | (2,000,912) |
Brazilian real/U.S. dollar exchange rate | Dollar swap | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 38,308 |
Possible adverse gain (loss) -25% | (353,647) |
Extreme adverse gain (loss) -50% | (717,505) |
Brazilian real/U.S. dollar exchange rate | Swap NCE | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 7,865 |
Possible adverse gain (loss) -25% | (101,872) |
Extreme adverse gain (loss) -50% | (203,747) |
Brazilian real/U.S. dollar exchange rate | Financial investments abroad | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 70,689 |
Possible adverse gain (loss) -25% | (915,461) |
Extreme adverse gain (loss) -50% | (1,830,922) |
Libor floating interest rate | Braskem Idesa borrowings | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (82,386) |
Possible adverse gain (loss) -25% | (411,928) |
Extreme adverse gain (loss) -50% | (823,857) |
Libor floating interest rate | Export prepayments | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (5,133) |
Possible adverse gain (loss) -25% | (25,665) |
Extreme adverse gain (loss) -50% | (51,330) |
Libor floating interest rate | Swaps | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 13,747 |
Possible adverse gain (loss) -25% | 67,773 |
Extreme adverse gain (loss) -50% | 133,197 |
CDI interest rate | Export credit notes | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (884) |
Possible adverse gain (loss) -25% | (21,986) |
Extreme adverse gain (loss) -50% | (58,762) |
CDI interest rate | Debentures | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 9,416 |
Possible adverse gain (loss) -25% | 232 |
Extreme adverse gain (loss) -50% | (10,035) |
CDI interest rate | Financial investments in local currency | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 26,228 |
Possible adverse gain (loss) -25% | 67,665 |
Extreme adverse gain (loss) -50% | 135,371 |
IPCA interest rate | Debentures | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (5,879) |
Possible adverse gain (loss) -25% | (21,556) |
Extreme adverse gain (loss) -50% | (44,125) |
TJLP interest rate | FINAME | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (5) |
Possible adverse gain (loss) -25% | (15) |
Extreme adverse gain (loss) -50% | R$ 31 |
Taxes payable (Details)
Taxes payable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | R$ 587177 | R$ 947571 |
Taxes payable, current | 501,273 | 894,769 |
Taxes payable, noncurrent | 85,904 | 52,802 |
Brazil | IPI | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | 64,672 | 60,917 |
Brazil | IR and CSL | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | 57,664 | 405,567 |
Brazil | ICMS | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | 239,126 | 257,720 |
Brazil | PIS and COFINS | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | 145,090 | 82,140 |
Brazil | Other | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | 36,454 | 52,926 |
Other countries | Other | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | 25,085 | 0 |
Other countries | IR | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | 11,604 | 66,059 |
Other countries | Value-added tax | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | R$ 7482 | R$ 22242 |
Income tax (''IR'') and socia_3
Income tax (''IR'') and social contribution (''CSL'') (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Ir And Social Contribution | |||
Income before IR and CSL and after discontinued operations | R$ 3604736 | R$ 5264577 | R$ 140010 |
IR and CSL at the rate of 34% | (1,225,610) | (1,789,956) | 47,603 |
Permanent adjustments to the IR and CSL calculation basis | |||
IR and CSL on equity in results of investees | (302) | 2,201 | 10,227 |
IR and CSL accrued in previous years | 0 | 0 | (46,460) |
Deferred tax losses and negative base | 0 | 39,092 | 0 |
Tax benefits (Sudene and PAT) | 0 | 87,186 | 0 |
Difference of rate applicable to each country | 468,129 | 250,130 | 81,638 |
Fine in leniency agreement | 0 | (117,140) | (692,299) |
Other permanent adjustments | 21,232 | 170,805 | (16,755) |
Effect of IR and CSL on results of operations | (736,551) | (1,357,682) | (616,046) |
Current IR and CSL | (509,774) | (869,493) | (898,845) |
Deferred IR and CSL | R$ 226777 | R$ 488189 | R$ 282799 |
Income tax (''IR'') and socia_4
Income tax (''IR'') and social contribution (''CSL'') (Details 1) | 12 Months Ended |
Dec. 31, 2018 | |
Subsidiary 1 | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Subsidiary name | Braskem Alemanha |
Headquarters country | Germany |
Official rate | 31.18% |
Subsidiary 2 | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Subsidiary name | Braskem America e Braskem America Finance |
Headquarters country | USA |
Official rate | 21.00% |
Subsidiary 3 | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Subsidiary name | Braskem Argentina |
Headquarters country | Argentina |
Official rate | 30.00% |
Subsidiary 4 | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Subsidiary name | Braskem Chile |
Headquarters country | Chile |
Official rate | 27.00% |
Subsidiary 5 | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Subsidiary name | Braskem Holanda, Braskem Holanda Finance and Braskem Holanda Inc |
Headquarters country | Netherlands |
Official rate | 25.00% |
Subsidiary 6 | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Subsidiary name | Braskem Idesa, Braskem Idesa Serviços, Braskem México, Braskem México Serviços and Braskem México Proyectos |
Headquarters country | Mexico |
Official rate | 30.00% |
Income tax (''IR'') and socia_5
Income tax (''IR'') and social contribution (''CSL'') (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | R$ 160233 | R$ 1142592 | |
Impact on the P&L | (235,517) | (422,775) | |
Impact on the equity | 789,120 | (599,554) | |
Cetrel consolidated | 105,384 | ||
Ending balance | 722,576 | 160,233 | |
Presentation in the balance sheet: | |||
Non-current assets | 1,104,158 | 1,165,726 | R$ 1653115 |
Non-current liabilities | 381,582 | 1,005,493 | R$ 510523 |
Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 2,505,529 | 2,656,473 | |
Impact on the P&L | 799,866 | (750,914) | |
Impact on the equity | (789,120) | 591,608 | |
Cetrel consolidated | 8,362 | ||
Ending balance | 2,516,275 | 2,505,529 | |
Presentation in the balance sheet: | |||
Non-current liabilities | 381,582 | 1,005,493 | |
Temporary adjustments | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 231,822 | 316,991 | |
Impact on the P&L | 44,878 | (85,169) | |
Impact on the equity | 0 | 0 | |
Cetrel consolidated | 0 | ||
Ending balance | 276,700 | 231,822 | |
Business combination | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 9,664 | 198,381 | |
Impact on the P&L | (8,362) | (197,079) | |
Impact on the equity | 0 | 0 | |
Cetrel consolidated | 8,362 | ||
Ending balance | 1,302 | 9,664 | |
Amortization of goodwill based on future profitability | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 712,873 | 767,277 | |
Impact on the P&L | 10,463 | (54,404) | |
Impact on the equity | 0 | 0 | |
Cetrel consolidated | 0 | ||
Ending balance | 723,336 | 712,873 | |
Tax depreciation | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 960,202 | 867,922 | |
Impact on the P&L | 49,710 | 92,280 | |
Impact on the equity | 0 | 0 | |
Cetrel consolidated | 0 | ||
Ending balance | 1,009,912 | 960,202 | |
Additional indexation PP&E | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 67,072 | 118,202 | |
Impact on the P&L | (9,905) | (51,130) | |
Impact on the equity | 0 | 0 | |
Cetrel consolidated | 0 | ||
Ending balance | 57,167 | 67,072 | |
Hedge accounting | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 0 | 0 | |
Impact on the P&L | 700,351 | (606,877) | |
Impact on the equity | (700,351) | 606,877 | |
Cetrel consolidated | 0 | ||
Ending balance | 0 | 0 | |
Deferred on health plans | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 0 | 0 | |
Impact on the P&L | 0 | 15,269 | |
Impact on the equity | 0 | (15,269) | |
Cetrel consolidated | 0 | ||
Ending balance | 0 | 0 | |
Amortization of fair value adjustments on the assets from the acquisiton of Quattor | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 519,623 | 263,808 | |
Impact on the P&L | (75,548) | 255,815 | |
Impact on the equity | 0 | 0 | |
Cetrel consolidated | 0 | ||
Ending balance | 444,075 | 519,623 | |
Long term incentive plan - LTI | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 0 | 0 | |
Impact on the P&L | (2,072) | 0 | |
Impact on the equity | 2,072 | 0 | |
Cetrel consolidated | 0 | ||
Ending balance | 0 | 0 | |
Other | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 4,273 | 123,892 | |
Impact on the P&L | 90,351 | (104,350) | |
Impact on the equity | (90,841) | (15,269) | |
Cetrel consolidated | 0 | ||
Ending balance | 3,783 | 4,273 | |
Assets | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 2,731,176 | 3,799,065 | |
Impact on the P&L | 573,089 | (1,173,689) | |
Impact on the equity | 0 | (7,946) | |
Cetrel consolidated | 113,746 | ||
Ending balance | 3,238,851 | 2,731,176 | |
Presentation in the balance sheet: | |||
Non-current assets | 1,104,158 | 1,165,726 | |
Assets | Tax losses (IR) and negative base (CSL) | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 1,878,809 | 2,420,376 | |
Impact on the P&L | 142,769 | (590,037) | |
Impact on the equity | 0 | 0 | |
Cetrel consolidated | 48,470 | ||
Ending balance | 2,021,578 | 1,878,809 | |
Assets | Goodwill amortized | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 59,335 | 4,624 | |
Impact on the P&L | (20,053) | (708) | |
Impact on the equity | 0 | 0 | |
Cetrel consolidated | 55,419 | ||
Ending balance | 39,282 | 59,335 | |
Assets | Exchange variations | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 388,293 | 464,947 | |
Impact on the P&L | (348,334) | (76,654) | |
Impact on the equity | 0 | 0 | |
Cetrel consolidated | 0 | ||
Ending balance | 39,959 | 388,293 | |
Assets | Temporary adjustments | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 155,540 | 717,868 | |
Impact on the P&L | 646,630 | (498,825) | |
Impact on the equity | 0 | (7,946) | |
Cetrel consolidated | 9,857 | ||
Ending balance | 802,170 | 155,540 | |
Assets | Business combination | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 183,785 | 191,250 | |
Impact on the P&L | (24,213) | (7,465) | |
Impact on the equity | 0 | 0 | |
Cetrel consolidated | 0 | ||
Ending balance | 159,572 | 183,785 | |
Assets | Tax credits | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Beginning balance | 0 | 0 | |
Impact on the P&L | 176,290 | 0 | |
Impact on the equity | 0 | 0 | |
Cetrel consolidated | 0 | ||
Ending balance | R$ 176290 | R$ 0 |
Income tax (''IR'') and socia_6
Income tax (''IR'') and social contribution (''CSL'') (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Balance, assets | R$ 1104158 | R$ 1165726 | R$ 1653115 |
Balance, liabilities | 381,582 | 1,005,493 | R$ 510523 |
Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Tax calculation, liabilities | 2,516,275 | 2,505,529 | |
Compensation, liabilities | (2,134,693) | (1,500,036) | |
Balance, liabilities | R$ 381582 | 1,005,493 | |
Braskem S.A. | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Brazil | ||
Tax calculation, liabilities | R$ 2239727 | 2,272,775 | |
Compensation, liabilities | (2,126,658) | (1,491,423) | |
Balance, liabilities | R$ 113069 | 781,352 | |
Cetrel | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Brazil | ||
Tax calculation, liabilities | R$ 6645 | 7,454 | |
Compensation, liabilities | (6,645) | (7,454) | |
Balance, liabilities | R$ 0 | 0 | |
DAC | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Brazil | ||
Tax calculation, liabilities | R$ 1122 | 908 | |
Compensation, liabilities | (1,122) | (908) | |
Balance, liabilities | R$ 0 | 0 | |
Braskem America | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | USA | ||
Tax calculation, liabilities | R$ 268513 | 223,635 | |
Compensation, liabilities | 0 | 0 | |
Balance, liabilities | R$ 268513 | 223,635 | |
Braskem Petroquímica Chile | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Chile | ||
Tax calculation, liabilities | R$ 268 | 757 | |
Compensation, liabilities | (268) | (251) | |
Balance, liabilities | 0 | 506 | |
Assets | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Tax calculation, assets | 3,238,851 | 2,665,762 | |
Compensation, assets | (2,134,693) | (1,500,036) | |
Balance, assets | R$ 1104158 | 1,165,726 | |
Assets | Braskem S.A. | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Brazil | ||
Tax calculation, assets | R$ 2126658 | 1,491,423 | |
Compensation, assets | (2,126,658) | (1,491,423) | |
Balance, assets | R$ 0 | 0 | |
Assets | Braskem Argentina | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Argentina | ||
Tax calculation, assets | R$ 11337 | 3,398 | |
Compensation, assets | 0 | 0 | |
Balance, assets | R$ 11337 | 3,398 | |
Assets | Braskem Alemanha | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Germany | ||
Tax calculation, assets | R$ 11251 | 19,353 | |
Compensation, assets | 0 | 0 | |
Balance, assets | R$ 11251 | 19,353 | |
Assets | Braskem Chile | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Chile | ||
Tax calculation, assets | R$ 308 | 251 | |
Compensation, assets | (268) | (251) | |
Balance, assets | R$ 40 | 0 | |
Assets | Braskem Idesa | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Mexico | ||
Tax calculation, assets | R$ 1036257 | 1,036,257 | |
Compensation, assets | 0 | 0 | |
Balance, assets | R$ 980762 | 1,036,257 | |
Assets | Braskem México Serviços | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Mexico | ||
Tax calculation, assets | R$ 9409 | 1,334 | |
Compensation, assets | 0 | 0 | |
Balance, assets | R$ 9409 | 1,334 | |
Assets | Cetrel | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Brazil | ||
Tax calculation, assets | R$ 26478 | 29,268 | |
Compensation, assets | (6,645) | (7,454) | |
Balance, assets | R$ 19833 | 21,814 | |
Assets | DAC | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Brazil | ||
Tax calculation, assets | R$ 72648 | 84,478 | |
Compensation, assets | (1,122) | (908) | |
Balance, assets | R$ 71526 | R$ 83570 |
Income tax (''IR'') and socia_7
Income tax (''IR'') and social contribution (''CSL'') (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | R$ 722576 | R$ 160233 | R$ 1142592 |
Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 2,516,275 | 2,505,529 | 2,656,473 |
2019 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 1,125,392 | ||
2019 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 318,916 | ||
2020 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | (157,919) | ||
2020 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 390,579 | ||
2021 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | (119,114) | ||
2021 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 497,059 | ||
2022 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 483,306 | ||
2022 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 68,397 | ||
2023 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 991,099 | ||
2023 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 43,937 | ||
2024 thereafter | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | (600,188) | ||
2024 thereafter | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 1,197,387 | ||
Temporary adjustments | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 276,700 | 231,822 | 316,991 |
Temporary adjustments | 2019 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 65,560 | ||
Temporary adjustments | 2020 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 23,374 | ||
Temporary adjustments | 2021 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 10,811 | ||
Temporary adjustments | 2022 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 4,150 | ||
Temporary adjustments | 2023 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 3,651 | ||
Temporary adjustments | 2024 thereafter | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 169,154 | ||
Business combination | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 1,302 | 9,664 | 198,381 |
Business combination | 2019 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 187 | ||
Business combination | 2020 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 187 | ||
Business combination | 2021 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 187 | ||
Business combination | 2022 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 187 | ||
Business combination | 2023 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 187 | ||
Business combination | 2024 thereafter | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 6,174 | ||
Amortization of goodwill based on future profitability | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 723,336 | 712,873 | 767,277 |
Amortization of goodwill based on future profitability | 2019 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Amortization of goodwill based on future profitability | 2020 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Amortization of goodwill based on future profitability | 2021 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Amortization of goodwill based on future profitability | 2022 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Amortization of goodwill based on future profitability | 2023 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Amortization of goodwill based on future profitability | 2024 thereafter | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 717,529 | ||
Tax depreciation | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 1,009,912 | 960,202 | 867,922 |
Tax depreciation | 2019 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 213,070 | ||
Tax depreciation | 2020 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 326,919 | ||
Tax depreciation | 2021 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 445,962 | ||
Tax depreciation | 2022 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 23,961 | ||
Tax depreciation | 2023 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Tax depreciation | 2024 thereafter | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Additional indexation PP&E | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 57,167 | 67,072 | 118,202 |
Additional indexation PP&E | 2019 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 4,573 | ||
Additional indexation PP&E | 2020 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 4,573 | ||
Additional indexation PP&E | 2021 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 4,573 | ||
Additional indexation PP&E | 2022 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 4,573 | ||
Additional indexation PP&E | 2023 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 4,573 | ||
Additional indexation PP&E | 2024 thereafter | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 34,302 | ||
Amortization of fair value adjustments on the assets from the acquisiton of Quattor | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 444,075 | 519,623 | 263,808 |
Amortization of fair value adjustments on the assets from the acquisiton of Quattor | 2019 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 35,526 | ||
Amortization of fair value adjustments on the assets from the acquisiton of Quattor | 2020 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 35,526 | ||
Amortization of fair value adjustments on the assets from the acquisiton of Quattor | 2021 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 35,526 | ||
Amortization of fair value adjustments on the assets from the acquisiton of Quattor | 2022 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 35,526 | ||
Amortization of fair value adjustments on the assets from the acquisiton of Quattor | 2023 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 35,526 | ||
Amortization of fair value adjustments on the assets from the acquisiton of Quattor | 2024 thereafter | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 266,445 | ||
Other | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 3,783 | 4,273 | 123,892 |
Other | 2019 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Other | 2020 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Other | 2021 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Other | 2022 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Other | 2023 | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Other | 2024 thereafter | Liabilities | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 3,783 | ||
Assets | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 3,238,851 | 2,731,176 | 3,799,065 |
Assets | 2019 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 444,308 | ||
Assets | 2020 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 232,660 | ||
Assets | 2021 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 377,945 | ||
Assets | 2022 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 551,703 | ||
Assets | 2023 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 1,035,036 | ||
Assets | 2024 thereafter | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 597,199 | ||
Assets | Tax losses (IR) and negative base (CSL) | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 2,021,578 | 1,878,809 | 2,420,376 |
Assets | Tax losses (IR) and negative base (CSL) | 2019 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 95,076 | ||
Assets | Tax losses (IR) and negative base (CSL) | 2020 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 122,790 | ||
Assets | Tax losses (IR) and negative base (CSL) | 2021 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 307,069 | ||
Assets | Tax losses (IR) and negative base (CSL) | 2022 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 505,880 | ||
Assets | Tax losses (IR) and negative base (CSL) | 2023 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 990,763 | ||
Assets | Tax losses (IR) and negative base (CSL) | 2024 thereafter | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Assets | Goodwill amortized | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 39,282 | 59,335 | 4,624 |
Assets | Goodwill amortized | 2019 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 3,654 | ||
Assets | Goodwill amortized | 2020 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 3,654 | ||
Assets | Goodwill amortized | 2021 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 3,654 | ||
Assets | Goodwill amortized | 2022 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 3,654 | ||
Assets | Goodwill amortized | 2023 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 3,655 | ||
Assets | Goodwill amortized | 2024 thereafter | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 21,011 | ||
Assets | Exchange variations | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 39,959 | 388,293 | 464,947 |
Assets | Exchange variations | 2019 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Assets | Exchange variations | 2020 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Assets | Exchange variations | 2021 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Assets | Exchange variations | 2022 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Assets | Exchange variations | 2023 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Assets | Exchange variations | 2024 thereafter | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 39,959 | ||
Assets | Temporary adjustments | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 802,170 | 155,540 | 717,868 |
Assets | Temporary adjustments | 2019 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 135,622 | ||
Assets | Temporary adjustments | 2020 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 72,550 | ||
Assets | Temporary adjustments | 2021 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 33,556 | ||
Assets | Temporary adjustments | 2022 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 12,882 | ||
Assets | Temporary adjustments | 2023 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 11,331 | ||
Assets | Temporary adjustments | 2024 thereafter | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 536,229 | ||
Assets | Business combination | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 159,572 | 183,785 | 191,250 |
Assets | Business combination | 2019 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 33,666 | ||
Assets | Business combination | 2020 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 33,666 | ||
Assets | Business combination | 2021 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 33,666 | ||
Assets | Business combination | 2022 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 29,287 | ||
Assets | Business combination | 2023 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 29,287 | ||
Assets | Business combination | 2024 thereafter | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Assets | Tax credits | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 176,290 | R$ 0 | R$ 0 |
Assets | Tax credits | 2019 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 176,290 | ||
Assets | Tax credits | 2020 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Assets | Tax credits | 2021 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Assets | Tax credits | 2022 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Assets | Tax credits | 2023 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | 0 | ||
Assets | Tax credits | 2024 thereafter | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred tax assets/liabilites | R$ 0 |
Sundry provisions (Details)
Sundry provisions (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfSundryProvisionsLineItems [Line Items] | ||
Sundry provisions | R$ 424542 | R$ 413672 |
Sundry provisions, current | 191,536 | 178,676 |
Sundry provisions, noncurrent | 233,006 | 234,996 |
Provision for customers rebates | ||
DisclosureOfSundryProvisionsLineItems [Line Items] | ||
Sundry provisions | 88,026 | 87,913 |
Provision for recovery of environmental damages | ||
DisclosureOfSundryProvisionsLineItems [Line Items] | ||
Sundry provisions | 307,546 | 300,249 |
Other | ||
DisclosureOfSundryProvisionsLineItems [Line Items] | ||
Sundry provisions | R$ 28970 | R$ 25510 |
Sundry provisions (Details 1)
Sundry provisions (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
DisclosureOfSundryProvisionsLineItems [Line Items] | |
Beginning balance | R$ 413672 |
Additions, inflation adjustments and exchange variation, net | 202,419 |
Write-offs through usage and payments | (191,549) |
Ending balance | 424,542 |
Bonus | |
DisclosureOfSundryProvisionsLineItems [Line Items] | |
Beginning balance | 87,913 |
Additions, inflation adjustments and exchange variation, net | 104,431 |
Write-offs through usage and payments | (104,318) |
Ending balance | 88,026 |
Recovery of environmental damage | |
DisclosureOfSundryProvisionsLineItems [Line Items] | |
Beginning balance | 300,249 |
Additions, inflation adjustments and exchange variation, net | 89,395 |
Write-offs through usage and payments | (82,098) |
Ending balance | 307,546 |
Other | |
DisclosureOfSundryProvisionsLineItems [Line Items] | |
Beginning balance | 25,510 |
Additions, inflation adjustments and exchange variation, net | 8,593 |
Write-offs through usage and payments | (5,133) |
Ending balance | R$ 28970 |
Contingencies (Details)
Contingencies (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfContingenciesLineItems [Line Items] | ||
Contingencies | R$ 965317 | R$ 1092645 |
Labor claims | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Contingencies | 177,751 | 250,075 |
Tax claims | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Contingencies | 265,218 | 262,453 |
Tax claims | IR and CSL | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Contingencies | 20,717 | 17,313 |
Tax claims | PIS and COFINS | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Contingencies | 156,796 | 155,681 |
Tax claims | ICMS | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Contingencies | 64,468 | 76,342 |
Tax claims | Other tax claims | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Contingencies | 23,237 | 13,117 |
Business combination | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Contingencies | 341,861 | 369,724 |
Business combination | IR and CSL | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Contingencies | 1,500 | 50,051 |
Business combination | PIS and COFINS | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Contingencies | 59,739 | 56,135 |
Business combination | ICMS | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Contingencies | 280,622 | 263,538 |
Corporate claims | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Contingencies | 111,049 | 135,779 |
Civil claims and other | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Contingencies | R$ 69438 | R$ 74614 |
Contingencies (Details 1)
Contingencies (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
DisclosureOfContingenciesLineItems [Line Items] | |
Beginning balance | R$ 1092645 |
Additions, inflation adjustments and exchange variation | 171,598 |
Payments | (143,174) |
Reversals | (155,752) |
Ending balance | 965,317 |
Labor claims | |
DisclosureOfContingenciesLineItems [Line Items] | |
Beginning balance | 250,075 |
Additions, inflation adjustments and exchange variation | 80,685 |
Payments | (70,553) |
Reversals | (82,456) |
Ending balance | 177,751 |
Tax claims | |
DisclosureOfContingenciesLineItems [Line Items] | |
Beginning balance | 632,177 |
Additions, inflation adjustments and exchange variation | 77,236 |
Payments | (40,768) |
Reversals | (61,566) |
Ending balance | 607,079 |
Corporate claims | |
DisclosureOfContingenciesLineItems [Line Items] | |
Beginning balance | 135,779 |
Additions, inflation adjustments and exchange variation | 8,676 |
Payments | (31,680) |
Reversals | (1,726) |
Ending balance | 111,049 |
Civil claims and other | |
DisclosureOfContingenciesLineItems [Line Items] | |
Beginning balance | 74,614 |
Additions, inflation adjustments and exchange variation | 5,001 |
Payments | (173) |
Reversals | (10,004) |
Ending balance | R$ 69438 |
Contingencies (Details 2)
Contingencies (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfContingenciesLineItems [Line Items] | ||
Claims with possible chance of loss | R$ 8314826 | R$ 7931818 |
Labor claims | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Claims with possible chance of loss | 6,082,336 | 6,048,462 |
Tax claims | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Claims with possible chance of loss | 992,205 | 812,400 |
Civil claims | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Claims with possible chance of loss | 579,145 | 693,188 |
Social security tax claims | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Claims with possible chance of loss | 125,338 | 91,824 |
Other lawsuits | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Claims with possible chance of loss | R$ 535802 | R$ 285944 |
Benefits offered to team memb_3
Benefits offered to team members (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | R$ 390848 | R$ 331760 | R$ 318928 |
Health care | |||
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | 162,338 | 140,553 | 139,412 |
Private pension | |||
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | 84,525 | 67,008 | 61,593 |
Transport | |||
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | 64,714 | 58,825 | 55,223 |
Feeding | |||
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | 33,537 | 30,916 | 28,874 |
Training | |||
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | 27,463 | 18,285 | 20,589 |
Other | |||
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | R$ 18271 | R$ 16173 | R$ 13237 |
Benefits offered to team memb_4
Benefits offered to team members (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of defined benefit plans [line items] | ||||
Total obligations | R$ 274288 | R$ 240190 | R$ 201516 | R$ 216632 |
Fair value of plan assets | (67,915) | (46,415) | R$ 39380 | R$ 46395 |
Consolidated net balance (non-current liabilities) | 206,373 | 193,775 | ||
Novamont Braskem America | ||||
Disclosure of defined benefit plans [line items] | ||||
Fair value of plan assets | (66,073) | (44,823) | ||
Braskem Alemanha | ||||
Disclosure of defined benefit plans [line items] | ||||
Fair value of plan assets | (1,842) | (1,592) | ||
Defined benefit | ||||
Disclosure of defined benefit plans [line items] | ||||
Total obligations | 183,609 | 156,957 | ||
Defined benefit | Novamont Braskem America | ||||
Disclosure of defined benefit plans [line items] | ||||
Total obligations | 68,904 | 62,963 | ||
Defined benefit | Braskem Alemanha and Netherlands | ||||
Disclosure of defined benefit plans [line items] | ||||
Total obligations | 114,705 | 93,994 | ||
Health care | Bradesco saúde | ||||
Disclosure of defined benefit plans [line items] | ||||
Total obligations | R$ 90679 | R$ 83233 |
Benefits offered to team memb_5
Benefits offered to team members (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Benefits Offered To Team Members | |||
Beginning balance | R$ 240190 | R$ 201516 | R$ 216632 |
Health care | 7,446 | 11,334 | 2,203 |
Current service cost | 5,842 | 5,058 | 4,576 |
Interest cost | 4,906 | 4,139 | 3,983 |
Benefits paid | (3,845) | (3,399) | (3,156) |
Change plan | 1,391 | 0 | 0 |
Actuarial losses (gain) | (3,713) | 9,661 | 3,590 |
Exchange variation | 22,071 | 11,881 | (26,312) |
Ending balance | R$ 274288 | R$ 240190 | R$ 201516 |
Benefits offered to team memb_6
Benefits offered to team members (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Benefits Offered To Team Members | |||
Beginning balance | R$ 46415 | R$ 39380 | R$ 46395 |
Actual return on plan assets | (3,200) | 5,115 | 221 |
Employer contributions | 20,544 | 4,069 | 3,569 |
Benefits paid | (3,712) | (2,915) | (3,087) |
Exchange variation | 7,868 | 766 | (7,718) |
Ending balance | R$ 67915 | R$ 46415 | R$ 39380 |
Benefits offered to team memb_7
Benefits offered to team members (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Benefits Offered To Team Members | |||
Health care | R$ 7446 | R$ 11334 | R$ 2203 |
Current service cost | 5,842 | 5,058 | 4,576 |
Interest cost | 4,906 | 4,139 | 3,983 |
Expected return on plan assets | 0 | (28) | (31) |
Actuarial losses | 2,077 | 6,069 | 2,472 |
Amounts recognized in profit and loss | R$ 20271 | R$ 26572 | R$ 13203 |
Benefits offered to team memb_8
Benefits offered to team members (Details 5) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Health insurance | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate | 5.03% | 5.45% | 4.18% |
Inflation rate | 4.50% | 4.50% | 6.00% |
Expected return on plan assets | |||
Rate of increase in future salary levels | |||
Rate of increase in future pension plan | |||
Aging factor | 2.50% | 2.50% | 2.50% |
Medical inflation | 3.50% | 3.50% | 3.50% |
Duration | 19.66% | 18.84% | 29.24% |
United States of America | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate | 4.45% | 3.70% | 4.35% |
Inflation rate | |||
Expected return on plan assets | |||
Rate of increase in future salary levels | |||
Rate of increase in future pension plan | |||
Aging factor | |||
Medical inflation | |||
Duration | |||
Germany | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate | 2.00% | 2.00% | 2.00% |
Inflation rate | 2.00% | 2.00% | |
Expected return on plan assets | |||
Rate of increase in future salary levels | 3.00% | 2.50% | 3.00% |
Rate of increase in future pension plan | 1.75% | 1.75% | 1.75% |
Aging factor | |||
Medical inflation | |||
Duration | |||
Netherlands | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate | 2.00% | 2.00% | |
Inflation rate | 2.00% | ||
Expected return on plan assets | |||
Rate of increase in future salary levels | 3.00% | 2.50% | |
Rate of increase in future pension plan | 1.75% | 1.75% | |
Aging factor | |||
Medical inflation | |||
Duration |
Benefits offered to team memb_9
Benefits offered to team members (Details 6) R$ in Thousands | Dec. 31, 2018BRL (R$) |
Health insurance | Discount rate | |
Disclosure of defined benefit plans [line items] | |
Premise change | 1.00% |
Premise increase | R$ 10428 |
Premise reduction | R$ 12868 |
Health insurance | Real medical inflation | |
Disclosure of defined benefit plans [line items] | |
Premise change | |
Premise increase | R$ 15698 |
Premise reduction | R$ 12454 |
Health insurance | Rate of increase in future salary levels | |
Disclosure of defined benefit plans [line items] | |
Premise change | |
Premise increase | |
Premise reduction | |
Health insurance | Rate of increase in future pension plan | |
Disclosure of defined benefit plans [line items] | |
Premise change | 1.00% |
Premise increase | |
Premise reduction | |
Health insurance | Life expectancy | |
Disclosure of defined benefit plans [line items] | |
Premise change | 1.00% |
Premise increase | |
Premise reduction | |
Health insurance | Mortality rate | |
Disclosure of defined benefit plans [line items] | |
Premise change | |
Premise increase | |
Premise reduction | |
United States of America | Discount rate | |
Disclosure of defined benefit plans [line items] | |
Premise change | 1.00% |
Premise increase | R$ 7261 |
Premise reduction | R$ 8802 |
United States of America | Real medical inflation | |
Disclosure of defined benefit plans [line items] | |
Premise change | |
Premise increase | |
Premise reduction | |
United States of America | Rate of increase in future salary levels | |
Disclosure of defined benefit plans [line items] | |
Premise change | |
Premise increase | |
Premise reduction | |
United States of America | Rate of increase in future pension plan | |
Disclosure of defined benefit plans [line items] | |
Premise change | |
Premise increase | |
Premise reduction | |
United States of America | Life expectancy | |
Disclosure of defined benefit plans [line items] | |
Premise change | |
Premise increase | |
Premise reduction | |
United States of America | Mortality rate | |
Disclosure of defined benefit plans [line items] | |
Premise change | 10.00% |
Premise increase | R$ 1984 |
Premise reduction | R$ 2164 |
Germany | Discount rate | |
Disclosure of defined benefit plans [line items] | |
Premise change | 0.50% |
Premise increase | R$ 10802 |
Premise reduction | R$ 11971 |
Germany | Real medical inflation | |
Disclosure of defined benefit plans [line items] | |
Premise change | |
Premise increase | |
Premise reduction | |
Germany | Rate of increase in future salary levels | |
Disclosure of defined benefit plans [line items] | |
Premise change | 1.00% |
Premise increase | R$ 6256 |
Premise reduction | R$ 5934 |
Germany | Rate of increase in future pension plan | |
Disclosure of defined benefit plans [line items] | |
Premise change | 0.00% |
Premise increase | R$ 3087 |
Premise reduction | R$ 3006 |
Germany | Life expectancy | |
Disclosure of defined benefit plans [line items] | |
Premise change | 1.00% |
Premise increase | R$ 2848 |
Premise reduction | R$ 2973 |
Germany | Mortality rate | |
Disclosure of defined benefit plans [line items] | |
Premise change | |
Premise increase | |
Premise reduction | |
Netherlands | Discount rate | |
Disclosure of defined benefit plans [line items] | |
Premise change | 0.50% |
Premise increase | R$ 563 |
Premise reduction | R$ 626 |
Netherlands | Real medical inflation | |
Disclosure of defined benefit plans [line items] | |
Premise change | |
Premise increase | |
Premise reduction | |
Netherlands | Rate of increase in future salary levels | |
Disclosure of defined benefit plans [line items] | |
Premise change | 1.00% |
Premise increase | R$ 336 |
Premise reduction | R$ 318 |
Netherlands | Rate of increase in future pension plan | |
Disclosure of defined benefit plans [line items] | |
Premise change | 0.00% |
Premise increase | R$ 166 |
Premise reduction | R$ 161 |
Netherlands | Life expectancy | |
Disclosure of defined benefit plans [line items] | |
Premise change | 1.00% |
Premise increase | R$ 144 |
Premise reduction | R$ 150 |
Netherlands | Mortality rate | |
Disclosure of defined benefit plans [line items] | |
Premise change | |
Premise increase | |
Premise reduction |
Benefits offered to team mem_10
Benefits offered to team members (Details 7) R$ in Thousands | Dec. 31, 2018BRL (R$) |
Discount rate | |
Disclosure of defined benefit plans [line items] | |
Premise change, cost of services | 1.00% |
Premise change, interest costs | 1.00% |
Premise increase, cost of services | R$ 381 |
Premise increase, interest costs | 198 |
Premise reduction, cost of services | (488) |
Premise reduction, interest costs | R$ 193 |
Real medical inflation | |
Disclosure of defined benefit plans [line items] | |
Premise change, cost of services | 1.00% |
Premise change, interest costs | 1.00% |
Premise increase, cost of services | R$ 344 |
Premise increase, interest costs | 1,532 |
Premise reduction, cost of services | (288) |
Premise reduction, interest costs | R$ 1215 |
Rate of increase in future pension plan | |
Disclosure of defined benefit plans [line items] | |
Premise change, cost of services | 1.00% |
Premise change, interest costs | 1.00% |
Premise increase, cost of services | R$ 66 |
Premise increase, interest costs | 216 |
Premise reduction, cost of services | (67) |
Premise reduction, interest costs | R$ 221 |
Equity (Details)
Equity (Details) | Dec. 31, 2018shares |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 797,218,554 |
Percent of shares outstanding | 100.00% |
Odebrecht | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 305,517,121 |
Percent of shares outstanding | 38.32% |
Petrobras | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 288,188,691 |
Percent of shares outstanding | 36.15% |
ADR | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 48,780,072 |
Percent of shares outstanding | 6.12% |
Other | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 153,497,912 |
Percent of shares outstanding | 19.26% |
Total | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 795,983,796 |
Percent of shares outstanding | 99.85% |
Treasury shares | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 1,234,758 |
Percent of shares outstanding | 0.15% |
Common | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 451,668,652 |
Percent of shares outstanding | 100.00% |
Common | Odebrecht | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 226,334,623 |
Percent of shares outstanding | 50.11% |
Common | Petrobras | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 212,426,952 |
Percent of shares outstanding | 47.03% |
Common | Other | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 12,907,077 |
Percent of shares outstanding | 2.86% |
Common | Total | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 451,668,652 |
Percent of shares outstanding | 100.00% |
Common | Treasury shares | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 0 |
Class A preferred shares | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 345,049,672 |
Percent of shares outstanding | 100.00% |
Class A preferred shares | Odebrecht | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 79,182,498 |
Percent of shares outstanding | 22.95% |
Class A preferred shares | Petrobras | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 75,761,739 |
Percent of shares outstanding | 21.96% |
Class A preferred shares | ADR | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 48,780,072 |
Percent of shares outstanding | 14.14% |
Class A preferred shares | Other | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 140,090,605 |
Percent of shares outstanding | 40.59% |
Class A preferred shares | Total | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 343,814,914 |
Percent of shares outstanding | 99.64% |
Class A preferred shares | Treasury shares | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 1,234,758 |
Percent of shares outstanding | 0.36% |
Class B preferred shares | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 500,230 |
Percent of shares outstanding | 100.00% |
Class B preferred shares | Other | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 500,230 |
Percent of shares outstanding | 100.00% |
Class B preferred shares | Total | |
Disclosure of classes of share capital [line items] | |
Shares outstanding | 500,230 |
Percent of shares outstanding | 100.00% |
Equity (Details 1)
Equity (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shareholders' equity | |||
Net income for the year of Company's shareholders | R$ 2827650 | R$ 3865440 | R$ 411472 |
Amounts recorded directly to retained earnings | |||
Legal reserves distribution | (143,334) | ||
Tax incentive reserve distribution | (81,863) | ||
Realization of additional property, plant and equipment | 27,679 | ||
Prescribed dividends / other | 517 | ||
Net income after retained earnings | 2,669,674 | ||
Allocations: | |||
Minimum dividends - 25% adjusted net income | (667,419) | ||
Additional dividends proposed | (2,002,255) | ||
Total | R$ 2669674 |
Equity (Details 2)
Equity (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of analysis of other comprehensive income by item [line items] | |||
Beginning balance | R$ 5643467 | R$ 6870460 | R$ 9537418 |
Additional indexation | |||
Realization by depreciation or write-off assets | (40,481) | (40,678) | (41,268) |
Income tax and social contribution | 13,764 | 13,831 | 14,032 |
Deemed cost of jointly-controlled investment | |||
Realization by depreciation or write-off assets | (1,458) | (1,459) | (1,461) |
Income tax and social contribution | 496 | 496 | 496 |
Fair value adjustments | |||
Accounts receivable | (449) | ||
Foreign sales hedge | |||
Exchange rate | (3,129,176) | 75,672 | 2,126,784 |
Transfer to result | 1,259,352 | 1,186,526 | 1,357,744 |
Income tax and social contribution | 645,870 | (403,691) | (1,261,414) |
Fair value of Cash flow hedge | |||
Change in fair value | (189,068) | 883,149 | 247,079 |
Transfer to result | 37,350 | (277,944) | (31,569) |
Income tax and social contribution | 54,481 | (203,187) | (75,333) |
Fair value of cash flow hedge from jointly-controlled | (2,329) | 3,534 | (3,309) |
Actuarial loss with post-employment benefits, net of taxes | (1,569) | (8,654) | (4,119) |
ILP Plan fair value | |||
Change in fair value | 9,430 | ||
Income tax and social contribution | (2,891) | ||
Foreign currency translation adjustment | 801,223 | (602) | 339,296 |
(Loss) investment gains | 0 | ||
Ending balance | (6,188,922) | (5,643,467) | (6,870,460) |
Deemed cost and additional indexation of PP&E | |||
Disclosure of analysis of other comprehensive income by item [line items] | |||
Beginning balance | 178,893 | 206,703 | 234,904 |
Additional indexation | |||
Realization by depreciation or write-off assets | (40,481) | (40,678) | (41,268) |
Income tax and social contribution | 13,764 | 13,831 | 14,032 |
Deemed cost of jointly-controlled investment | |||
Realization by depreciation or write-off assets | (1,458) | (1,459) | (1,461) |
Income tax and social contribution | 496 | 496 | 496 |
ILP Plan fair value | |||
Ending balance | 151,214 | 178,893 | 206,703 |
Fair value adjustments of trade accounts recivable | |||
Disclosure of analysis of other comprehensive income by item [line items] | |||
Beginning balance | 0 | 0 | 0 |
Fair value of Cash flow hedge | |||
Change in fair value | (449) | ||
ILP Plan fair value | |||
Change in fair value | 9,297 | ||
Income tax and social contribution | (2,891) | ||
Ending balance | 5,957 | 0 | 0 |
Gain (loss) on interest in subsidiary | |||
Disclosure of analysis of other comprehensive income by item [line items] | |||
Beginning balance | (9,404) | (9,404) | (9,404) |
ILP Plan fair value | |||
(Loss) investment gains | (65) | ||
Ending balance | (9,469) | (9,404) | (9,404) |
Foreign sales hedge | |||
Disclosure of analysis of other comprehensive income by item [line items] | |||
Beginning balance | (6,358,242) | (7,105,377) | (9,666,973) |
Foreign sales hedge | |||
Exchange rate | (3,133,346) | (42,507) | 2,625,551 |
Transfer to result | 1,200,209 | 1,145,602 | 1,342,785 |
Income tax and social contribution | 664,864 | (355,960) | (1,406,740) |
ILP Plan fair value | |||
Ending balance | (7,626,515) | (6,358,242) | (7,105,377) |
Fair value of hedge | |||
Disclosure of analysis of other comprehensive income by item [line items] | |||
Beginning balance | (145,267) | (539,518) | (685,396) |
Fair value of Cash flow hedge | |||
Change in fair value | (196,790) | 876,636 | 247,815 |
Transfer to result | 26,964 | (287,576) | (19,434) |
Income tax and social contribution | 59,914 | (198,343) | (79,194) |
Fair value of cash flow hedge from jointly-controlled | (2,329) | 3,534 | (3,309) |
ILP Plan fair value | |||
Ending balance | (257,508) | (145,267) | (539,518) |
Defined benefit plans actuarial gain (loss) | |||
Disclosure of analysis of other comprehensive income by item [line items] | |||
Beginning balance | (52,005) | (43,351) | (39,232) |
Fair value of Cash flow hedge | |||
Actuarial loss with post-employment benefits, net of taxes | (1,569) | (8,654) | (4,119) |
ILP Plan fair value | |||
Ending balance | (53,574) | (52,005) | (43,351) |
Foreign currency translation adjustment | |||
Disclosure of analysis of other comprehensive income by item [line items] | |||
Beginning balance | 1,220,533 | 1,169,088 | 1,105,391 |
ILP Plan fair value | |||
Foreign currency translation adjustment | 946,342 | 51,445 | 63,697 |
Ending balance | 2,166,875 | 1,220,533 | 1,169,088 |
Total Braskem shareholders' interest | |||
Disclosure of analysis of other comprehensive income by item [line items] | |||
Beginning balance | (5,165,492) | (6,321,859) | (9,060,710) |
Additional indexation | |||
Realization by depreciation or write-off assets | (40,481) | (40,678) | (41,268) |
Income tax and social contribution | 13,764 | 13,831 | 14,032 |
Deemed cost of jointly-controlled investment | |||
Realization by depreciation or write-off assets | (1,458) | (1,459) | (1,461) |
Income tax and social contribution | 496 | 496 | 496 |
Fair value adjustments | |||
Accounts receivable | (449) | ||
Foreign sales hedge | |||
Exchange rate | (3,133,346) | (42,507) | 2,625,551 |
Transfer to result | 1,200,209 | 1,145,602 | 1,342,785 |
Income tax and social contribution | 664,864 | (355,960) | (1,406,740) |
Fair value of Cash flow hedge | |||
Change in fair value | (196,790) | 876,636 | 247,815 |
Transfer to result | 26,964 | (287,576) | (19,434) |
Income tax and social contribution | 59,914 | (198,343) | (79,194) |
Fair value of cash flow hedge from jointly-controlled | (2,329) | 3,534 | (3,309) |
Actuarial loss with post-employment benefits, net of taxes | (1,569) | (8,654) | (4,119) |
ILP Plan fair value | |||
Change in fair value | 9,297 | ||
Income tax and social contribution | (2,891) | ||
Foreign currency translation adjustment | 946,342 | 51,445 | 63,697 |
(Loss) investment gains | (65) | ||
Ending balance | (5,623,020) | (5,165,492) | (6,321,859) |
Non-controlling interest in Braskem Idesa | |||
Disclosure of analysis of other comprehensive income by item [line items] | |||
Beginning balance | (477,975) | (548,601) | (476,708) |
Additional indexation | |||
Realization by depreciation or write-off assets | 0 | 0 | 0 |
Income tax and social contribution | 0 | 0 | 0 |
Deemed cost of jointly-controlled investment | |||
Realization by depreciation or write-off assets | 0 | 0 | 0 |
Income tax and social contribution | 0 | 0 | 0 |
Fair value adjustments | |||
Accounts receivable | 0 | ||
Foreign sales hedge | |||
Exchange rate | 4,170 | 118,179 | (498,767) |
Transfer to result | 59,143 | 40,924 | 14,959 |
Income tax and social contribution | (18,994) | (47,731) | 145,326 |
Fair value of Cash flow hedge | |||
Change in fair value | 7,722 | 6,513 | (736) |
Transfer to result | 10,386 | 9,632 | (12,135) |
Income tax and social contribution | (5,433) | (4,844) | 3,861 |
Fair value of cash flow hedge from jointly-controlled | 0 | 0 | 0 |
Actuarial loss with post-employment benefits, net of taxes | 0 | 0 | 0 |
ILP Plan fair value | |||
Change in fair value | 133 | ||
Income tax and social contribution | 0 | ||
Foreign currency translation adjustment | (145,119) | (52,047) | 275,599 |
(Loss) investment gains | 65 | ||
Ending balance | R$ 565902 | R$ 477975 | R$ 548601 |
Earnings per share (Details)
Earnings per share (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [line items] | |||
Profit (loss) for the year attributed to Company's shareholders of continued operations | R$ 2827650 | R$ 3856564 | R$ 442430 |
Distribution of priority dividends | 208,753 | 208,767 | 0 |
Distribution of 6% of unit value of common shares | 273,840 | 273,827 | 0 |
Distribution of plus income | 2,345,057 | 3,373,970 | 0 |
Reconciliation of income available for distribution (numerator) | R$ 2827650 | R$ 3856564 | R$ 442430 |
Weighted average number of shares (denominator) | 795,990,011 | 796,022,846 | 795,439,817 |
Common | |||
Earnings per share [line items] | |||
Distribution of plus income | R$ 1331513 | R$ 1915805 | R$ 0 |
Reconciliation of income available for distribution (numerator) | R$ 1605353 | R$ 2189632 | R$ 251222 |
Weighted average number of shares (denominator) | 451,668,652 | 451,668,652 | 451,668,652 |
Profit (loss) per share | R$ 3.5543 | R$ 4.8479 | R$ 0.5562 |
Class A preferred shares | |||
Earnings per share [line items] | |||
Distribution of priority dividends | R$ 208450 | R$ 208416 | R$ 0 |
Distribution of plus income | 1,013,544 | 1,458,165 | 0 |
Reconciliation of income available for distribution (numerator) | R$ 1221994 | R$ 1666581 | R$ 191208 |
Weighted average number of shares (denominator) | 343,808,699 | 343,775,864 | 343,771,165 |
Profit (loss) per share | R$ 3.5543 | R$ 4.8479 | R$ 0.5562 |
Class B preferred shares | |||
Earnings per share [line items] | |||
Distribution of priority dividends | R$ 303 | R$ 351 | R$ 0 |
Reconciliation of income available for distribution (numerator) | R$ 303 | R$ 351 | R$ 0 |
Weighted average number of shares (denominator) | 512,660 | 578,330 | 0 |
Profit (loss) per share | R$ .5910 | R$ .6069 | R$ .0000 |
Earnings per share (Details 1)
Earnings per share (Details 1) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2016 | |
Class A preferred shares | ||
Earnings per share [line items] | ||
Beginning balance | 343,775,864 | 343,768,220 |
Conversion of preferred shares class "B" to "A" | 39,050 | 7,644 |
Ending balance | 343,814,914 | 343,775,864 |
Class A preferred shares | Weighted average | ||
Earnings per share [line items] | ||
Beginning balance | 343,775,864 | 343,768,220 |
Conversion of preferred shares class "B" to "A" | 32,835 | 2,945 |
Ending balance | 343,808,699 | 343,771,165 |
Class B preferred shares | ||
Earnings per share [line items] | ||
Beginning balance | 578,330 | |
Conversion of preferred shares class "B" to "A" | (78,100) | |
Ending balance | 500,230 | |
Class B preferred shares | Weighted average | ||
Earnings per share [line items] | ||
Beginning balance | 578,330 | |
Conversion of preferred shares class "B" to "A" | (65,670) | |
Ending balance | 512,660 |
Net revenues (Details)
Net revenues (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] | |||
Net revenue | R$ 57999866 | R$ 49260594 | R$ 47663988 |
Sales revenue | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 68,663,320 | 58,184,041 | 55,328,525 |
Sales revenue | Domestic market | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 42,144,075 | 34,947,727 | 32,267,642 |
Sales revenue | Domestic market | Revenue | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 42,189,365 | 34,983,265 | 32,293,042 |
Sales revenue | Domestic market | Rebates | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | (45,290) | (35,538) | (25,400) |
Sales revenue | Foreign market | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 26,519,245 | 23,236,314 | 23,060,883 |
Sales revenue | Foreign market | Revenue | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 26,577,433 | 23,297,304 | 23,084,703 |
Sales revenue | Foreign market | Rebates | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | (58,188) | (60,990) | (23,820) |
Sales and services deductions | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | (10,663,454) | (8,923,447) | (7,664,537) |
Sales and services deductions | Domestic market | Taxes | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | (10,219,138) | (8,663,707) | (7,316,325) |
Sales and services deductions | Domestic market | Sales returns | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | (148,918) | (125,153) | (168,625) |
Sales and services deductions | Foreign market | Taxes | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | (36,562) | (33,798) | (102,831) |
Sales and services deductions | Foreign market | Sales returns | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | R$ 258836 | R$ 100789 | R$ 76756 |
Net revenues (Details 1)
Net revenues (Details 1) - 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] | |||
Net revenue | R$ 57999866 | R$ 49260594 | R$ 47663988 |
Brazil | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 31,801,222 | 26,147,559 | 24,640,077 |
United States of America | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 9,887,701 | 8,539,972 | 7,965,209 |
Argentina | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 1,166,191 | 1,336,440 | 1,244,267 |
United Kingdom | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 366,328 | 202,830 | 589,725 |
Germany | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 1,385,482 | 1,192,287 | 1,198,760 |
Mexico | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 4,168,140 | 3,408,385 | 2,075,695 |
Italy | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 650,605 | 604,546 | 667,265 |
Netherlands | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 293,315 | 333,134 | 262,289 |
Singapore | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 756,069 | 542,866 | 1,101,156 |
Switzerland | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 315,254 | 415,729 | 227,504 |
Colombia | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 363,497 | 340,396 | 369,359 |
Spain | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 329,458 | 282,854 | 342,154 |
Chile | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 686,646 | 554,237 | 522,796 |
Peru | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 540,495 | 126,956 | 397,186 |
Uruguay | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 155,571 | 493,654 | 122,783 |
Japan | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 245,208 | 122,251 | 1,631,564 |
Poland | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 260,449 | 231,716 | 252,508 |
Paraguay | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 214,959 | 174,783 | 185,432 |
France | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 135,094 | 166,314 | 236,727 |
Bolivia | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 250,048 | 163,862 | 211,382 |
Canada | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 290,453 | 235,612 | 242,492 |
South Korea | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 314,517 | 339,430 | 254,512 |
Other | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | R$ 3423164 | R$ 3304781 | R$ 2923146 |
Net revenues (Details 2)
Net revenues (Details 2) - 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] | |||
Net revenue | R$ 57999866 | R$ 49260594 | R$ 47663988 |
PE/PP | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 37,979,148 | 33,105,714 | 30,790,364 |
Ethylene, Propylene | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 4,283,709 | 3,351,805 | 2,906,796 |
Naphtha, condensate and crude oil | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 248,313 | 135,165 | 2,582,257 |
Benzene, toluene and xylene | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 2,785,400 | 2,683,406 | 2,411,031 |
PVC/Caustic Soda/EDC | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 3,167,390 | 3,066,879 | 3,016,390 |
ETBE/Gasoline | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 2,928,993 | 2,433,360 | 2,058,952 |
Butadiene | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 2,023,465 | 1,819,387 | 1,315,892 |
Cumene | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 909,409 | 578,482 | 501,958 |
Solvents | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 476,311 | 401,455 | 379,745 |
Other | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | R$ 3197729 | R$ 1684941 | R$ 1700603 |
Other income (expenses), net (D
Other income (expenses), net (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | |||
Other income (expenses), net | R$ 90852 | R$ 854880 | R$ 3905954 |
Bonus to employees | |||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | |||
Other income (expenses), net | (375,360) | (399,828) | (361,796) |
Expenses from fixed assets | |||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | |||
Other income (expenses), net | (40,061) | (205,929) | (53,774) |
Allowance for judicial and labor claims | |||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | |||
Other income (expenses), net | (83,280) | (119,919) | (169,973) |
Fine on supply contract of raw material, net | |||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | |||
Other income (expenses), net | 336,533 | 0 | 0 |
PIS and COFINS credits - exclusion of ICMS from the calculation basis | |||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | |||
Other income (expenses), net | 235,919 | 0 | 0 |
Capital gain - sale of Quantiq | |||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | |||
Other income (expenses), net | 0 | 276,816 | 0 |
Recovery of environmental damages | |||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | |||
Other income (expenses), net | (89,395) | (102,466) | (182,600) |
Leniency agreement | |||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | |||
Other income (expenses), net | 0 | (375,476) | (2,860,402) |
Other | |||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | |||
Other income (expenses), net | R$ 106496 | R$ 71922 | R$ 277409 |
Financial results (Details)
Financial results (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial income | R$ 589052 | R$ 603630 | R$ 690122 |
Financial expenses | (3,007,551) | (3,747,217) | (3,570,962) |
Exchange rate variations, net | (2,256,983) | (798,762) | (3,210,417) |
Finance income (cost) | (4,675,482) | (3,942,349) | (6,091,257) |
Interest income | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial income | 530,007 | 512,051 | 646,727 |
Other | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial income | 59,045 | 91,579 | 43,395 |
Interest expenses | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | (2,084,780) | (2,219,503) | (2,447,481) |
Monetary variations on fiscal debts | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | (33,429) | (191,101) | (249,578) |
Customer discounts granted | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | (141,223) | (137,389) | (108,606) |
Loans transaction costs | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | (89,982) | (64,771) | (56,020) |
Adjustment to present value | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | (296,065) | (284,992) | (507,744) |
Other | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | (362,072) | (849,461) | (201,533) |
Financial assets | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Exchange rate variations, net | 1,268,741 | 216,381 | (1,139,676) |
Financial liabilities | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Exchange rate variations, net | R$ 3525724 | R$ 1015143 | R$ 2070741 |
Expenses by nature and functi_3
Expenses by nature and function (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Nature | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | R$ 49718760 | R$ 40093624 | R$ 41742819 |
Nature | Raw materials other inputs | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (38,889,949) | (29,364,996) | (28,197,875) |
Nature | Personnel expenses | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (2,412,118) | (2,173,640) | (2,576,107) |
Nature | Outsourced services | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (2,306,048) | (2,120,001) | (2,135,412) |
Nature | Depreciation, amortization and depletion | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (2,990,577) | (2,928,855) | (2,677,672) |
Nature | Freights | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (2,275,375) | (2,058,574) | (1,918,973) |
Nature | Costs of idle industrial plants | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (138,242) | (67,593) | (60,944) |
Nature | Other income (expenses), net | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | 706,451 | (1,379,965) | (4,175,836) |
Function | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (49,718,760) | (40,093,624) | (41,742,819) |
Function | Other income (expenses), net | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | 90,852 | (854,880) | (3,905,954) |
Function | Cost of products sold | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (46,431,220) | (36,177,408) | (34,985,569) |
Function | Selling and distribution | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (1,545,568) | (1,459,608) | (1,403,673) |
Function | General and administrative | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (1,633,003) | (1,434,272) | (1,285,613) |
Function | Research and development | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | R$ 199821 | R$ 167456 | R$ 162010 |
Segment information (Details)
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 revenue | R$ 57999866 | R$ 49260594 | R$ 47663988 |
Cost of products sold | (46,431,220) | (36,177,408) | (34,985,569) |
Gross profit | 11,568,646 | 13,083,186 | 12,678,419 |
Selling, general and distribuition expenses | (3,378,392) | (3,061,336) | (2,851,296) |
Results from equity investments | (888) | 39,956 | 30,078 |
Other operating income (expenses), net | 90,852 | (854,880) | (3,905,954) |
Operating profit (loss) | 8,280,218 | 9,206,926 | 5,951,247 |
Reporting segments | |||
Disclosure of operating segments [line items] | |||
Net revenue | 72,258,188 | 61,351,881 | 58,869,357 |
Cost of products sold | (61,069,183) | (48,000,599) | (46,277,063) |
Gross profit | 11,189,005 | 13,351,282 | 12,592,294 |
Selling, general and distribuition expenses | (3,142,951) | (3,123,950) | (2,931,124) |
Results from equity investments | 0 | 0 | 0 |
Other operating income (expenses), net | 64,839 | (531,532) | (756,703) |
Operating profit (loss) | 8,110,893 | 9,695,800 | 8,904,467 |
Reporting segments | Chemicals | |||
Disclosure of operating segments [line items] | |||
Net revenue | 31,111,650 | 25,179,288 | 25,062,602 |
Cost of products sold | (27,464,046) | (20,478,914) | (20,248,175) |
Gross profit | 3,647,604 | 4,700,374 | 4,814,427 |
Selling, general and distribuition expenses | (756,719) | (773,396) | (680,083) |
Results from equity investments | 0 | 0 | 0 |
Other operating income (expenses), net | (139,393) | (197,275) | (409,920) |
Operating profit (loss) | 2,751,492 | 3,729,703 | 3,724,424 |
Reporting segments | Vinyls | |||
Disclosure of operating segments [line items] | |||
Net revenue | 3,167,390 | 3,066,879 | 3,016,390 |
Cost of products sold | (2,889,519) | (2,572,774) | (2,815,184) |
Gross profit | 277,871 | 494,105 | 201,206 |
Selling, general and distribuition expenses | (169,377) | (162,989) | (236,771) |
Results from equity investments | 0 | 0 | 0 |
Other operating income (expenses), net | (18,416) | (163,374) | (71,880) |
Operating profit (loss) | 90,078 | 167,742 | (107,445) |
Reporting segments | Polyolefins | |||
Disclosure of operating segments [line items] | |||
Net revenue | 22,483,866 | 19,650,398 | 20,307,367 |
Cost of products sold | (19,255,377) | (15,432,179) | (15,980,935) |
Gross profit | 3,228,489 | 4,218,219 | 4,326,432 |
Selling, general and distribuition expenses | (1,310,080) | (1,321,575) | (1,284,665) |
Results from equity investments | 0 | 0 | 0 |
Other operating income (expenses), net | (93,465) | (177,518) | (199,098) |
Operating profit (loss) | 1,824,944 | 2,719,126 | 2,842,669 |
Reporting segments | USA and Europe | |||
Disclosure of operating segments [line items] | |||
Net revenue | 11,724,776 | 9,854,496 | 8,896,071 |
Cost of products sold | (9,126,392) | (7,419,261) | (6,080,722) |
Gross profit | 2,598,384 | 2,435,235 | 2,815,349 |
Selling, general and distribuition expenses | (610,384) | (582,672) | (497,810) |
Results from equity investments | 0 | 0 | 0 |
Other operating income (expenses), net | 10,656 | (21,279) | (71,000) |
Operating profit (loss) | 1,998,656 | 1,831,284 | 2,246,539 |
Reporting segments | Mexico | |||
Disclosure of operating segments [line items] | |||
Net revenue | 3,770,506 | 3,600,820 | 1,586,927 |
Cost of products sold | (2,333,849) | (2,097,471) | (1,152,047) |
Gross profit | 1,436,657 | 1,503,349 | 434,880 |
Selling, general and distribuition expenses | (296,391) | (283,318) | (231,795) |
Results from equity investments | 0 | 0 | 0 |
Other operating income (expenses), net | 305,457 | 27,914 | (4,805) |
Operating profit (loss) | 1,445,723 | 1,247,945 | 198,280 |
Other segments | |||
Disclosure of operating segments [line items] | |||
Net revenue | 292,435 | 83,720 | 12,202 |
Cost of products sold | (173,608) | (65,743) | (14,760) |
Gross profit | 118,827 | 17,977 | (2,558) |
Selling, general and distribuition expenses | (34,819) | (13,391) | (1,876) |
Results from equity investments | 0 | 0 | 0 |
Other operating income (expenses), net | (103) | (2,430) | (20,864) |
Operating profit (loss) | 83,905 | 2,156 | (25,298) |
Corporate unit | |||
Disclosure of operating segments [line items] | |||
Net revenue | 265,438 | 0 | 0 |
Cost of products sold | 0 | 0 | |
Gross profit | 265,438 | 0 | 0 |
Selling, general and distribuition expenses | (200,622) | (61,384) | (33,582) |
Results from equity investments | (888) | 39,956 | 30,078 |
Other operating income (expenses), net | 26,116 | (320,918) | (3,128,387) |
Operating profit (loss) | 90,044 | (342,346) | (3,131,891) |
Braskem consolidated before eliminations and reclassifications | |||
Disclosure of operating segments [line items] | |||
Net revenue | 72,816,061 | 61,435,601 | 58,881,559 |
Cost of products sold | (61,242,791) | (48,066,342) | (46,291,823) |
Gross profit | 11,573,270 | 13,369,259 | 12,589,736 |
Selling, general and distribuition expenses | (3,378,392) | (3,198,725) | (2,966,582) |
Results from equity investments | (888) | 39,956 | 30,078 |
Other operating income (expenses), net | 90,852 | (854,880) | (3,905,954) |
Operating profit (loss) | 8,284,842 | 9,355,610 | 5,747,278 |
Eliminations and reclassifications | |||
Disclosure of operating segments [line items] | |||
Net revenue | (14,816,195) | (12,175,007) | (11,217,571) |
Cost of products sold | 14,811,571 | 11,888,934 | 11,306,254 |
Gross profit | (4,624) | (286,073) | 88,683 |
Selling, general and distribuition expenses | 0 | 137,389 | 115,286 |
Results from equity investments | 0 | 0 | 0 |
Other operating income (expenses), net | 0 | 0 | 0 |
Operating profit (loss) | R$ 4624 | R$ 148684 | R$ 203969 |
Segment information (Details 1)
Segment information (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | R$ 34500872 | R$ 32489107 |
Reporting segments | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | 33,947,217 | 31,962,748 |
Reporting segments | Chemicals | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | 10,916,874 | 11,136,125 |
Reporting segments | Polyolefins | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | 4,985,337 | 5,072,162 |
Reporting segments | Vinyls | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | 2,334,270 | 2,433,882 |
Reporting segments | USA and Europe | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | 3,875,566 | 2,587,302 |
Reporting segments | Mexico | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | 11,835,170 | 10,733,277 |
Unallocated amounts | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | R$ 553655 | R$ 526359 |
Insurance coverage (Details)
Insurance coverage (Details) R$ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||
Amount insured (US$) | $ | $ 34,511,000 | |
Amount insured (R$) | R$ | R$ 133723000 | |
Brazil | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||
Maturity | April 10, 2020 | April 10, 2020 |
Maximum indemnity limit (US$) | $ | $ 3,375,000 | |
Maximum indemnity limit (R$) | R$ | R$ 13077000 | |
Amount insured (US$) | $ | $ 26,406,000 | |
Amount insured (R$) | R$ | R$ 102318000 | |
United States and Germany | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||
Maturity | April 10, 2020 | April 10, 2020 |
Maximum indemnity limit (US$) | $ | $ 500,000 | |
Maximum indemnity limit (R$) | R$ | R$ 1937000 | |
Amount insured (US$) | $ | $ 2,037,000 | |
Amount insured (R$) | R$ | R$ 7893000 | |
Mexico | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||
Maturity | April 10, 2020 | April 10, 2020 |
Maximum indemnity limit (US$) | $ | $ 2,936,000 | |
Maximum indemnity limit (R$) | R$ | R$ 11376000 | |
Amount insured (US$) | $ | $ 6,068,000 | |
Amount insured (R$) | R$ | R$ 23512000 |