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PROVISIONS
 12 Months Ended
Dec. 31, 2022
Provisions [abstract]  
PROVISIONS

 

27.PROVISIONS

(a) Provision changes

 

           
  Balance as of December 31, 2020 Effect of changes in foreign exchange rates Additions Provisions used  Provisions reversed Balance as of December 31, 2021
 
Provision for disputes and litigation  
Taxes on sales  184.1   -     198.5   (57.3)  (106.7)  218.6 
Labor  129.9   (0.8)  163.1   (147.2)  (20.8)  124.2 
Civil  86.8   (2.2)  273.9   (71.8)  (33.8)  252.9 
Other taxes  156.7   2.0   14.6   (5.2)  (5.1)  163.0 
Total provision for disputes and litigation  557.5   (1.0)  650.1   (281.5)  (166.4)  758.7 
 
Restructuring  14.5   1.2   6.8   (5.1)  -     17.4 
             
Total provisions  572.0   0.2   656.9   (286.6)  (166.4)  776.1 

 

  Balance as of December 31, 2021 Effect of changes in foreign exchange rates Additions Provisions used  Provisions reversed Balance as of December 31, 2022
             
Provision for disputes and litigation    
Taxes on sales  218.6   -     157.6   (85.8)  (43.3)  247.1 
Labor  124.2   (4.6)  194.2   (162.0)  (19.7)  132.1 
Civil  252.9   (17.5)  312.7   (196.6)  (15.6)  335.9 
Other taxes  163.0   (8.1)  60.1   (7.2)  (15.0)  192.8 
Total provision for disputes and litigation  758.7   (30.2)  724.6   (451.6)  (93.6)  907.9 
 
Restructuring  17.4   (2.0)  -     (3.6)  -     11.8 
             
Total provisions  776.1   (32.2)  724.6   (455.2)  (93.6)  919.7 

 

(b)Expected settlement

 

         
  2022   2021
  Non-current Current   Non-current Current
Provision for disputes and litigation  
Taxes on sales  193.8   53.3     163.2   55.4 
Labor  104.9   27.2     96.2   28.0 
Civil  263.0   72.9     194.1   58.8 
Other taxes  170.1   22.7     142.1   20.9 
Total provision for disputes and litigation  731.8   176.1     595.6   163.1 
 
Restructuring  7.2   4.6     8.2   9.2 
 
Total provisions  739.0   180.7    603.8   172.3 

 

The expected settlement of provisions was based on management’s best estimate at the balance sheet date.

(c)Main lawsuits with a probable likelihood of loss:

 

(c.1) Sales taxes

 

In Brazil, the Company and its subsidiaries are parties to various administrative and judicial proceedings related to ICMS, IPI, PIS and COFINS taxes, considered as probable likelihood of loss. Such proceedings include, among others, tax offsetting, appropriation of tax credits and alleged insufficient payment of the respective taxes.

 

(c.2) Labor

 

The Company and its subsidiaries are parties to labor proceedings with former employees or former employees of service providers. The main issues involve overtime and related effects and respective charges.

 

(c.3) Civil

 

The Company and its subsidiaries are involved in civil lawsuits considered as representing a probable likelihood of loss. The most relevant portion of these lawsuits refers to former distributors, mainly in Brazil, mostly claiming damages resulting from the termination of their contracts.

 

The processes representing possible probabilities are disclosed in Note 30 - Contingencies.