XML 111 R18.htm IDEA: XBRL DOCUMENT

OTHER NON-FINANCIAL ASSETS

12 Months Ended

Dec. 31, 2019

Disclosure Of Other Non Financial Assets Explanatory [Abstract]

OTHER NON-FINANCIAL ASSETS [Text Block]]

NOTE 12 - OTHER NON-FINANCIAL ASSETS

The composition of other non-financial assets is as follows:

	Current assets				Non-current assets				Total Assets
	As of December 31, 2019		As of December 31, 2018		As of December 31, 2019		As of December 31, 2018		As of December 31, 2019		As of December 31, 2018
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
			Restated				Restated				Restated
(a) Advance payments

Aircraft insurance and other		11,179		16,483		523		-		11,702		16,483
Others		15,167		20,105		1,832		4,460		16,999		24,565
Subtotal advance payments		26,346		36,588		2,355		4,460		28,701		41,048

(b) Contract assets (1)

GDS costs		16,593		14,708		-		-		16,593		14,708
Credit card commissions		23,437		21,614		-		-		23,437		21,614
Travel agencies commissions		16,546		12,635		-		-		16,546		12,635
Subtotal advance payments		56,576		48,957		-		-		56,576		48,957

(c) Other assets

Aircraft maintenance reserve (2)		27,987		831		17,844		51,836		45,831		52,667
Sales tax		167,987		187,410		34,680		38,186		202,667		225,596
Other taxes		34,295		15,255		-		-		34,295		15,255
Contributions to Société Internationale de
Télécommunications Aéronautiques (“SITA”)		258		258		739		739		997		997
Judicial deposits		-		-		149,310		132,267		149,310		132,267
Others		-		1,177		-		53		-		1,230
Subtotal other assets		230,527		204,931		202,573		223,081		433,100		428,012
Total Other Non - Financial Assets		313,449		290,476		204,928		227,541		518,377		518,017

(1) Movement of Contracts assets:

					Adjustments		Difference
	Initial				by the application		by						Final
	balance		Activation		IFRS 15		conversion			Amortization			balance
	ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$

From January 1 to December 31, 2018		-		180,171		54,361		(5,019	)		(180,556	)		48,957
From January 1 to December 31, 2019		48,957		166,300		-		(4,950	)		(153,731	)		56,576

(2) Aircraft maintenance reserves reflect prepayment deposits made by the group to lessors of certain aircraft under operating lease agreements in order to ensure that funds are available to support the scheduled heavy maintenance of the aircraft.

These amounts are calculated based on performance measures, such as flight hours or cycles, are paid periodically (usually monthly) and are contractually required to be repaid to the lessee upon the completion of the required maintenance of the leased aircraft. At the end of the lease term, any unused maintenance reserves are either returned to the Company in cash or used to offset amounts that we may owe the lessor as a maintenance adjustment.

In some cases, (five lease agreements), if the maintenance cost incurred by LATAM is less than the corresponding maintenance reserves, the lessor is entitled to retain those excess amounts at the time the heavy maintenance is performed. The Company periodically reviews its maintenance reserves for each of its leased aircraft to ensure that they will be recovered and recognizes an expense if any such amounts are less than probable of being returned. The cost of aircraft maintenance in the last years has been higher than the related maintenance reserves for all aircraft.

As of December 31, 2019, maintenance reserves amount to ThUS$ 45,831 (ThUS$ 52,667 as of December 31, 2018), corresponding to 8 aircraft that maintain remaining balances, which will be settled in the next maintenance or return.

Aircraft maintenance reserves are classified as current or non-current depending on the dates when the related maintenance is expected to be performed (Note 2.23).