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SEGMENTAL INFORMATION

12 Months Ended

Dec. 31, 2019

Disclosure of operating segments [text block] [Abstract]

Disclosure of operating segments [text block]

NOTE 5 - SEGMENTAL INFORMATION

As of December 31, 2019, the Company considers that it has a single operating segment, that of Air Transport. This segment corresponds to the route network for air transport and is based on the way in which the business is managed, according to the centralized nature of its operations, the ability to open and close routes, as well as reassignment (airplanes, crew, personnel, etc.) within the network, which implies a functional interrelation between all of them, making them inseparable. This segment definition is one of the most common worldwide in the airline industry.

Until June 2019, the Company presented two operating segments, the one corresponding to Air transport and the Multiplus coalition and loyalty program segment, discussed in Note 1, the Company Multiplus S.A. Administrator of the Coalition and Loyalty Program Multiplus merged into TAM Linhas Aereas S.A., ceasing to be an entity with independent administration. The Multiplus coalition and Loyalty program, which was defined as an operating segment, due to this independent administration, became part of the Air Transport segment together with the LATAM Pass and LATAM fidelidades programs.

The company has restated the information corresponding to December 31, 2018 and 2017 for the presentation of a single segment of information.

For the year ended
	Air
	Transportation
	At December 31,
	2019			2018			2017
	ThUS$			ThUS$			ThUS$
				Restated			Restated
Income from ordinary activities from external customers (*)		10,070,063			9,895,456			9,613,907
Passenger		9,005,629			8,708,988			8,494,477
Freight		1,064,434			1,186,468			1,119,430
Income from ordinary activities from transactions with other operating segments		-			-			-
Other operating income		360,864			472,758			549,889
Interest income		26,283			53,253			78,695
Interest expense		(589,934	)		(539,137	)		(579,233	)
Total net interest expense		(563,651	)		(485,884	)		(500,538	)
Depreciation and amortization		(1,469,976	)		(1,372,628	)		(1,377,135	)
Material non-cash items other than depreciation and amortization		(130,011	)		(104,123	)		(105,404	)
Disposal of fixed assets and inventory losses		(60,893	)		(46,351	)		(39,238	)
Doubtful accounts		(21,558	)		(18,837	)		(18,416	)
Exchange differences		(32,571	)		(38,070	)		(48,498	)
Result of indexation units		(14,989	)		(865	)		748
Income (loss) attributable to owners of the parents		190,430			309,811			108,896
Expenses for income tax		53,697			(73,879	)		(158,998	)
Segment profit / (loss)		195,613			341,786			154,386
Assets of segment		21,087,806			20,078,722			21,673,713
Segment liabilities		17,958,629			16,638,121			17,717,420
Amount of non-current asset additions		2,658,541			1,090,177			412,846
Property, plant and equipment		2,519,305			995,085			325,513
Intangibles other than goodwill		139,236			95,092			87,333
Purchase of non-monetary assets of segment		1,416,794			756,913			499,872

(*)

The Company does not have any interest income that should be recognized as income from ordinary activities by interest.

For the year ended
	Air
	Transportation
	At December 31,
	2019			2018			2017
	ThUS$			ThUS$			ThUS$
				Restated			Restated
				(2)			(2)
Net cash flows from
Purchases of property, plant and equipment		1,276,621			660,707			403,666
Additions associated with maintenance		453,827			375,634			217,687
Other additions		822,794			285,073			185,979
Purchases of intangible assets		140,173			96,206			96,206
Net cash flows from (used in) operating activities		2,826,667			2,073,316			2,186,823
Net cash flow from (used in) investing activities		(1,419,207	)		(358,368	)		(293,925	)
Net cash flows from (used in) financing activities		(1,343,521	)		(1,608,597	)		(1,692,668	)

The information by segments as of December 31, 2018 and 2017, which included the Multiplus Coalition and Loyalty Program segment has been restated to present its incorporation into the Air Transport segment. This restatement is presented in the following table:

For the year ended
	Air			Segment						Air
	Transportation			Adjustment			Eliminations			Transportation
	At December 31,			At December 31,			At December 31,			At December 31,
	2018			2018			2018			2018
	ThUS$			ThUS$			ThUS$			ThUS$
	Previously reported									Restated
Income from ordinary activities from external customers (*)		9,887,090			60,020			(51,654	)		9,895,456
Passenger		8,700,622			60,020			(51,654	)		8,708,988
Freight		1,186,468			-			-			1,186,468
Other operating income		346,315			126,443			-			472,758
Interest income		27,181			26,072			-			53,253
Interest expense		(539,137	)		-			-			(539,137	)
Total net interest expense		(511,956	)		26,072			-			(485,884	)
Depreciation and amortization		(1,365,809	)		(6,819	)		-			(1,372,628	)
Material non-cash items other than depreciation and amortization		(104,038	)		(85	)		-			(104,123	)
Disposal of fixed assets and inventory losses		(46,351	)		-			-			(46,351	)
Doubtful accounts		(18,741	)		(96	)		-			(18,837	)
Exchange differences		(38,081	)		11			-			(38,070	)
Result of indexation units		(865	)		-			-			(865	)
Income (loss) attributable to owners of the parents		200,209			109,602			-			309,811
Expenses for income tax		121,155			(47,276	)		-			73,879
Segment profit / (loss)		287,206			54,580			-			341,786
Assets of segment		18,943,127			1,145,942			(10,347	)		20,078,722
Segment liabilities		16,212,905			449,347			(24,131	)		16,638,121
Amount of non-current asset additions		1,090,177			-			-			1,090,177
Property, plant and equipment		995,085			-			-			995,085
Intangibles other than goodwill		95,092			-			-			95,092
Purchase of non-monetary assets of segment		756,913			-			-			756,913

(*) The Company does not have any interest income that should be recognized as income from ordinary activities by interest.

For the year ended
	Air			Segment						Air
	Transportation			Adjustment			Eliminations			Transportation
	At December 31,			At December 31,			At December 31,			At December 31,
	2017			2017			2017			2017
	ThUS$			ThUS$			ThUS$			ThUS$
	Previously reported									Restated
Income from ordinary activities from external customers (*)		9,159,031			454,876			-			9,613,907
Passenger		8,039,601			454,876			-			8,494,477
Freight		1,119,430			-			-			1,119,430
Income from ordinary activities from transactions with other operating segments		454,876			67,554			(522,430	)		-
Other operating income		308,937			240,952			-			549,889
Interest income		28,184			50,511			-			78,695
Interest expense		(579,233	)		-			-			(579,233	)
Total net interest expense		(551,049	)		50,511			-			(500,538	)
Depreciation and amortization		(1,384,344	)		7,209			-			(1,377,135	)
Material non-cash items other than depreciation and amortization		(105,259	)		(145	)		-			(105,404	)
Disposal of fixed assets and inventory losses		(39,238	)		-			-			(39,238	)
Doubtful accounts		(18,272	)		(144	)		-			(18,416	)
Exchange differences		(48,497	)		(1	)		-			(48,498	)
Result of indexation units		748			-			-			748
Income (loss) attributable to owners of the parents (**)		(49,887	)		158,783			-			108,896
Expenses for income tax		(89,870	)		(69,128	)		-			(158,998	)
Segment profit / (loss)		(4,397	)		158,783			-			154,386
Assets of segment		17,430,937			1,373,049			(6,014	)		18,797,972
Segment liabilities		14,007,916			563,849			(41,029	)		14,530,736
Amount of non-current asset additions		412,846			-			-			412,846
Property, plant and equipment		325,513			-			-			325,513
Intangibles other than goodwill		87,333			-			-			87,333
Purchase of non-monetary assets of segment		490,983			-			-			490,983

(*)

The Company does not have any interest income that should be recognized as income from ordinary activities by interest.

(**)

The result of the Company includes a net result of ThUS$ (8,162) resulting from the application of IAS 21 and IAS 29, for the subsidiaries that are in hyperinflationary economies.

For the year ended
	Air			Segment					Air
	Transportation			adjustment			Eliminations		Transportation
	At December 31,			At December 31,			At December 31,		At December 31,
	2018			2018			2018		2018
	ThUS$			ThUS$			ThUS$		ThUS$
	Previously reported								Restated
Net cash flows from
Purchases of property, plant and equipment		660,631			76			-		660,707
Additions associated with maintenance		375,634			-			-		375,634
Other additions		284,997			76			-		285,073
Purchases of intangible assets (***)		85,628			10,578			-		96,206
Net cash flows from (used in) operating activities		1,950,532			111,161			11,623		2,073,316
Net cash flow from (used in) investing activities		(348,346	)		(10,022	)		-		(358,368	)
Net cash flows from (used in) financing activities		(1,512,898	)		(95,699	)		-		(1,608,597	)

(***)

The Company does not have cash flows from purchases of intangible assets associated with maintenance.

For the year ended

	Air			Segment						Air
	Transportation			adjustment			Eliminations			Transportation
	At December 31,			At December 31,			At December 31,			At December 31,
	2017			2017			2017			2017
	ThUS$			ThUS$			ThUS$			ThUS$
	Previously reported									Restated
Net cash flows from
Purchases of property, plant and equipment		403,282			384			-			403,666
Additions associated with maintenance		218,537			-			-			218,537
Other additions		184,745			384			-			185,129
Purchases of intangible assets (***)		79,102			8,216			-			87,318
Net cash flows from (used in) operating activities		1,489,797			186,367			(9,424	)		1,666,740
Net cash flow from (used in) investing activities		(278,790	)		(8,632	)		-			(287,422	)
Net cash flows from (used in) financing activities		(1,010,705	)		(168,383	)		-			(1,179,088	)

(***)

The Company does not have cash flows from purchases of intangible assets associated with maintenance.

The Company’s revenues by geographic area are as follows:

	For the year ended At December 31,
	2019		2018		2017
	ThUS$		ThUS$		ThUS$
Peru		801,965		705,133		626,316
Argentina		584,959		989,883		1,113,467
U.S.A.		1,004,238		985,919		900,413
Europe		726,165		782,197		676,282
Colombia		380,449		372,794		359,276
Brazil		3,949,797		3,433,877		3,436,402
Ecuador		203,334		203,842		190,268
Chile		1,546,960		1,591,313		1,527,158
Asia Pacific and rest of Latin America		872,196		830,498		784,325
Income from ordinary activities		10,070,063		9,895,456		9,613,907
Other operating income		360,864		472,758		549,889

The Company allocates revenues by geographic area based on the point of sale of the passenger ticket or cargo. Assets are composed primarily of aircraft and aeronautical equipment, which are used throughout the different countries, so it is not possible to assign a geographic area.

The Company has no customers that individually represent more than 10% of sales.