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Cash and cash equivalents and marketable securities
 12 Months Ended
Dec. 31, 2024
Cash And Cash Equivalents And Marketable Securities  
Cash and cash equivalents and marketable securities

 

8.Cash and cash equivalents and marketable securities
8.1.Cash and cash equivalents

They include cash, available bank deposits and short-term financial investments with high liquidity, which meet the definition of cash equivalents.

   
  12.31.2024 12.31.2023
Cash at bank and in hand 136 103
Short-term financial investments    
- In Brazil    
Brazilian interbank deposit rate investment funds and other short-term deposits 1,453 1,742
Other investment funds 186 279
  1,639 2,021
- Abroad    
Time deposits 728 7,737
Automatic investing accounts and interest checking accounts 726 2,852
Other financial investments 42 14
  1,496 10,603
Total short-term financial investments 3,135 12,624
Total cash and cash equivalents 3,271 12,727

 

 

Short-term financial investments in Brazil primarily consist of investments in funds holding Brazilian Federal Government Bonds that can be redeemed immediately, as well as reverse repurchase agreements that mature within three months as of the date of their acquisition. Short-term financial investments abroad comprise time deposits that mature in three months or less from the date of their acquisition, highly-liquid automatic investment accounts, interest checking accounts and other short-term fixed income instruments.

The main use of these funds in 2024 were for payment of dividends and share repurchase program of US$ 18,784, repayment of principal and interests related to finance debt and repayment of lease liability, amounting to US$ 16,349, as well as for acquisition of PP&E and intangible assets in the amount of US$ 14,644.

Cash and cash equivalents were mainly provided by operating activities (US$ 37,984), proceeds from finance debt (US$ 2,129), proceeds from disposal of assets - divestment (US$ 863) and financial compensation from co-participation agreements (US$ 397).

Accounting policy for cash and cash equivalents

Cash and cash equivalents comprise cash on hand, term deposits with banks and short-term highly-liquid financial investments that are readily convertible to known amounts of cash, are subject to insignificant risk of changes in value and have a maturity of three months or less from the date of acquisition.

 

8.2.Marketable securities
           
      12.31.2024     12.31.2023
  In Brazil Abroad Total In Brazil Abroad Total
Fair value through profit or loss 531 − 531 926 − 926
Amortized cost - Bank Deposit Certificates and time deposits 2,263 2,006 4,269 4,249 − 4,249
Amortized cost - Others 45 − 45 53 − 53
Total 2,839 2,006 4,845 5,228 − 5,228
Current 2,257 2,006 4,263 2,819 − 2,819
Non-current 582 − 582 2,409 − 2,409

 

 

Marketable securities classified as fair value through profit or loss refer mainly to investments in Brazilian Federal Government Bonds (amounts determined by level 1 of the fair value hierarchy). These financial investments have maturities of more than three months.

Securities classified as amortized cost refer to investments in Brazil in floating rate Bank Deposit Certificates with daily liquidity, with initial maturities between one and two years, and to investments abroad in time deposits with maturities of more than three months from the contracting date.

Accounting policy for marketable securities

The amounts invested in operations with terms of more than three months, as from the date of the agreement, are initially measured at fair value and subsequently according to their respective classifications, which are based on the way in which these funds are managed and their features of contractual cash flows:

·Amortized cost – financial assets that give rise, on specified dates, to cash flows represented exclusively by payments of principal and interest on the outstanding principal amount, the purpose of which is to receive its contractual cash flows. They are presented in current and in non-current assets according to their expectation of realization. Interest income from these investments is calculated using the effective interest rate method.
·Fair value through profit or loss – financial assets whose purpose is to receive from its sale. They are presented in current assets due to the expectation of realization within 12 months of the reporting date.