XML 86 R18.htm IDEA: XBRL DOCUMENT

OTHER NON-FINANCIAL ASSETS

12 Months Ended

Dec. 31, 2021

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,
	2021		2020		2021		2020		2021		2020
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
(a) Advance payments

Aircraft insurance and other		12,331		10,137		-		-		12,331		10,137
Others		11,404		15,375		2,002		2,998		13,406		18,373
Subtotal advance payments		23,735		25,512		2,002		2,998		25,737		28,510

(b) Contract assets (1)

GDS costs		6,439		4,491		-		-		6,439		4,491
Credit card commissions		10,550		6,021		-		-		10,550		6,021
Travel agencies commissions		8,091		4,964		-		-		8,091		4,964
Subtotal advance payments		25,080		15,476		-		-		25,080		15,476

(c) Other assets

Aircraft maintenance reserve (2)		-		8,613		-		-		-		8,613
Sales tax		57,634		102,010		33,212		46,210		90,846		148,220
Other taxes		1,661		4,023		-		-		1,661		4,023
Contributions to the International Aeronautical Telecommunications Society (“SITA”)		258		258		739		739		997		997
Contributions to Universal Air Travel Plan “UATP”		-		-		20		-		20		-
Judicial deposits		-		-		89,459		76,835		89,459		76,835
Subtotal other assets		59,553		114,904		123,430		123,784		182,983		238,688
Total Other Non - Financial Assets		108,368		155,892		125,432		126,782		233,800		282,674

(1) Movement of Contracts assets:

					Cumulative
					translation
	Initial balance		Activation		adjustment			Amortization			Final balance
		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
From January 1 to December 31, 2020		56,576		146,778		(14,672	)		(173,206	)		15,476
From January 1 to December 31, 2021		15,476		67,647		(6,680	)		(51,363	)		25,080

(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, 2021, the company does not maintain maintenance reserves, these were exercised by the lessors for the non-payment of rent as a result of the Chapter 11 Proceedings (ThUS$ 8,613 as of December 31, 2020).

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).