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OTHER NON-FINANCIAL ASSETS

12 Months Ended

Dec. 31, 2020

OTHER NON-FINANCIAL ASSETS [Abstract]

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		As of		As of		As of		As of		As of
	December 31,		December 31,		December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019		2020		2019
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$

(a) Advance payments
Aircraft insurance and other		10,137		11,179		-		523		10,137		11,702
Others		15,375		15,167		2,998		1,832		18,373		16,999
Subtotal advance payments		25,512		26,346		2,998		2,355		28,510		28,701
(b) Contract assets (1)
GDS costs		4,491		16,593		-		-		4,491		16,593
Credit card commissions		6,021		23,437		-		-		6,021		23,437
Travel agencies commissions		4,964		16,546		-		-		4,964		16,546
Subtotal advance payments		15,476		56,576		-		-		15,476		56,576
(c) Other assets
Aircraft maintenance reserve (2)		8,613		27,987		-		17,844		8,613		45,831
Sales tax		102,010		167,987		46,210		34,680		148,220		202,667
Other taxes		4,023		34,295		-		-		4,023		34,295
Contributions to the International Aeronautical
Telecommunications Society (“SITA”)		258		258		739		739		997		997
Judicial deposits		-		-		76,835		149,310		76,835		149,310
Subtotal other assets		114,904		230,527		123,784		202,573		238,688		433,100
Total Other Non - Financial Assets		155,892		313,449		126,782		204,928		282,674		518,377

(1) Movement of Contracts assets:

	Initial balance		Activation		Cummulative translation adjustment			Amortization			Final balance
	ThUS$		ThUS$		ThUS$			ThUS$			ThUS$

From January 1 to December 31, 2019		48,957		166,300		(4,950	)		(153,731	)		56,576
From January 1 to December 31, 2020		56,576		146,778		(14,672	)		(173,206	)		15,476

(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 deposits are calculated based on the operation, measured in cycles or flight hours, are paid periodically, and it is contractually stipulated that they be returned to the Company each time major maintenance is carried out. At the end of the lease, the unused maintenance reserves are returned to the Company or used to compensate the lessor for any debt related to the maintenance conditions of the aircraft.

In some cases, (2 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, 2020, maintenance reserves amount to ThUS$ 8,613 (ThUS$ 45,831 as of December 31, 2019), corresponding to 2 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).