Income taxes (Tables)

12 Months Ended

Dec. 31, 2018

The components of deferred tax assets and liabilities are as follows:


	12.31.2018			12.31.2017			01.01.2017
				(Restated)			(Restated)
Temporarily non-deductible provisions		39.7			(76.1	)		(102.7	)
Tax loss carryforwards		0.5			4.5			28.3
Functional currency effect of the non monetary assets		(323.4	)		(206.0	)		(201.0	)
Gains not realized from sales of the Company to subsidiairies		22.7			15.4			16.4
Effect of differences by fixed asset		7.5			(8.1	)		(31.2	)
Differences between basis: account x tax		20.6			25.7			36.6

Deferred tax assets (liabilities), net		(232.4	)		(244.6	)		(253.6	)

Total deferred tax asset		21.6			13.4			11.6
Total deferred tax liability		(254.0	)		(258.0	)		(265.2	)

Changes in deferred income tax that affected profit and loss were as follows:


	From the statement of income			Other comprehensive income			Total
At January 01, 2016 (Restated)		(429.9	)		32.5			(397.4	)

Temporarily non-deductible provisions		(99.9	)		—			(99.9	)
Tax loss carryforwards		7.8			—			7.8
Functional currency effect of the non monetary assets		206.1			—			206.1
Provision Gain not realized at sales from Controlling company to subsidiairies		(3.5	)		—			(3.5	)
Effect of differences by fixed asset		4.9			—			4.9
Differences between basis: account x tax		22.1			6.3			28.4

At December 31, 2016 (Restated)		(292.4	)		38.8			(253.6	)

Temporarily non-deductible provisions		26.6			—			26.6
Tax loss carryforwards		(23.8	)		—			(23.8	)
Functional currency effect of the non monetary assets		(5.0	)		—			(5.0	)
Provision Gain not realized at sales from Controlling company to subsidiairies		(1.0	)		—			(1.0	)
Effect of differences by fixed asset		23.0			—			23.0
Differences between basis: account x tax		(6.9	)		(3.9	)		(10.8	)

At December 31, 2017 (Restated)		(279.5	)		34.9			(244.6	)

Temporarily non-deductible provisions		115.8			—			115.8
Tax loss carryforwards		(4.0	)		—			(4.0	)
Functional currency effect of the non monetary assets		(117.4	)		—			(117.4	)
Gains not realized from sales of Parent Company to subsidiairies		7.3			—			7.3
Effect of differences by fixed asset		15.6			—			15.6
Differences between basis: account x tax		3.9			(9.0	)		(5.1	)

At December 31, 2018		(258.3	)		25.9			(232.4	)

22.2

Reconciliation of income tax expense


	12.31.2018			12.31.2017			12.31.2016
				(Restated)			(Restated)
Profit (loss) before taxation		(136.2	)		307.9			180.6

Income tax and social contribution expense at the nominal Brazilian enacted tax rate—34%		46.3			(104.7	)		(61.4	)

Tax on profits of overseas subsidiaries		(33.2	)		(9.8	)		(4.0	)
Functional currency effect of the non monetary assets		(117.4	)		(5.0	)		206.1
Research and development tax incentives		27.7			43.8			36.5
Interest on own capital		3.0			16.9			6.1
Fiscal credits (recognized and non recognized)		(26.0	)		19.3			(30.4	)
Tax rate diference		30.9			5.3			(0.7	)
Other difference between IFRS and fiscal basis		41.4			3.3			(90.9	)
Other		(7.7	)		3.0			(61.6	)

		(81.3	)		76.8			61.1

Income tax and social contribution income (expense) benefit as reported		(35.0	)		(27.9	)		(0.3	)

Current income tax and social contribution (expense) benefit as reported		(56.2	)		(40.8	)		(137.8	)
Deferred income tax and social contribution income (expense) benefit as reported		21.2			12.9			137.5