Property, equipment, intangible assets and lease (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2020

Dec. 31, 2019

a) Changes in the period


	Property and equipment			Intangible assets
As of January 1, 2019		99,127			504,915
Additions		11,375			8,061
Write-offs		(56	)		(56	)
Depreciation / amortization in the period		(4,672	)		(7,055	)

As of March 31, 2019		105,774			505,865

Cost		146,865			626,921
Accumulated depreciation / amortization		(41,092	)		(121,056	)

As of January 1, 2020		142,464			553,452
Additions		20,746			19,914
Write-offs		(324	)		—
Transfers		(2,083	)		2,083
Depreciation / amortization in the period		(6,255	)		(15,648	)

As of March 31, 2020		154,548			559,801

Cost		211,839			672,045
Accumulated depreciation / amortization		(57,291	)		(112,244	)

(a) Property and equipment


	Data processing system			Furniture and equipment			Security systems			Facilities			Fixed assets in progress			Total
Balance as of January 1, 2017		9,679			8,677			459			8,789			1,061			28,665
Additions		6,308			6,309			5,650			9,915			2,187			30,369
Business combination (Note 5 (ii))		804			412			34			478						1,728
Write-offs		(149	)		(1,690	)		(9	)		(2,503	)		—			(4,351	)
Transfers		709			2,181			—			358			(3,248	)		—
Depreciations in the year		(3,608	)		(2,628	)		(1,227	)		(1,875	)		—			(9,338	)

Balance as of December 31, 2017		13,743			13,261			4,907			15,162			—			47,073

Cost		27,400			19,124			6,403			19,281			—			72,208
Accumulated depreciation		(13,657	)		(5,863	)		(1,496	)		(4,119	)		—			(25,135	)

XP Inc. and its subsidiaries

Notes to consolidated financial statements

December 31, 2019, 2018 and 2017

(In thousands of Brazilian Reais, unless otherwise stated)

[GRAPHIC]


	Data processing system			Furniture and equipment			Security systems			Facilities			Fixed assets in progress			Total
Balance as of January 1, 2018		13,743			13,261			4,907			15,162			—			47,073
Additions		22,319			10,448			376			9,930			40,076			83,149
Write-offs		(40	)		(924	)		(30	)		(5,078	)		(553	)		(6,625	)
Transfers		31			2,109			192			37,191			(39,523	)		—
Depreciation in the year		(7,282	)		(3,253	)		(2,892	)		(11,043	)		—			(24,470	)

Balance as of December 31, 2018		28,771			21,641			2,553			46,162			—			99,127

Cost		48,023			29,613			6,388			47,843			—			131,867
Accumulated depreciation		(19,252	)		(7,972	)		(3,835	)		(1,681	)		—			(32,740	)
Balance as of January 1, 2019		28,771			21,641			2,553			46,162			—			99,127
Additions		15,039			9,942			664			22,315			24,539			72,499
Write-offs		(304	)		(2,047	)		—			(6,112	)		—			(8,463	)
Transfers		—			2,409			—			22,130			(24,539	)		—
Depreciation in the year		(9,059	)		(4,189	)		(1,673	)		(5,778	)		—			(20,699	)

Balance as of December 31, 2019		34,447			27,756			1,544			78,717			—			142,464

Cost		62,235			38,086			7,716			84,726			—			192,763
Accumulated depreciation		(27,788	)		(10,330	)		(6,172	)		(6,009	)		—			(50,299	)

Summary of Right-of-use Assets and Lease Liabilities

c) Leases

Set out below, are the carrying amounts of the Group’s right-of-use assets and lease liabilities and the movements during the period:


	Right-of-use assets			Lease liabilities
As of January 1, 2019		133,870			148,494
Depreciation expense		(3,430	)		—
Interest expense		—			2,328
Effects of exchange rate		(1,281	)		134
Payment of lease liabilities		—			(7,490	)

As of March 31, 2019		129,159			143,466

As of December 31, 2019		227,478			255,406
Additions (i)		19,273			19,361
Depreciation expense		(9,623	)		—
Interest expense		—			6,145
Revaluation (ii)		(19,968	)		(19,968	)
Impairment		(3,040	)		—
Effects of exchange rate		22,016			23,561
Payment of lease liabilities		—			(15,558	)

As of March 31, 2020		236,136			268,947

Current		—			56,581
Non-current		236,136			212,367

(i)	Additions to right-of-use assets in the period include prepayments to lessors and accrued liabilities.

(ii)	Revaluation of discount rate that represent the current market assessment.

d) Leases

Set out below, are the carrying amounts of the Group’s right-of-use assets and lease liabilities and the movements during the period:


	Right-of-use assets			Lease liabilities
As of January 1, 2019		133,870			148,494
Additions (i)		123,529			124,283
Depreciation expense		(32,831	)		—
Interest expense		—			17,613
Effects of exchange rate		2,910			2,995
Payment of lease liabilities		—			(37,979	)

As of December 31, 2019		227,478			255,406

Current		—			52,771
Non-current		227,478			202,635

(i) Additions to right-of-use assets in the period include prepayments to lessors and accrued liabilities.

Summary of Intangible Assets

(b) Intangible assets


	Software			Goodwill		Costumer list			Trademarks			Other intangible assets			Total
Balance as of January 1, 2017		16,871			90,999		9,179			1,799			4,422			123,270
Additions		12,243			—		—			33			8,351			20,627
Business combination (Note 5 ii))		4,404			281,702		50,077			19,304			2,028			357,515
Write-offs		(140	)		—		—			—			—			(140	)
Transfers		(799	)		—		—			—			799			—
Amortization in the year		(6,879	)		—		(9,286	)		(898	)		(1,002	)		(18,065	)

Balance as of December 31, 2017		25,700			372,701		49,970			20,238			14,598			483,207

Cost		35,489			372,701		72,072			21,230			18,753			520,245
Accumulated Amortization		(9,789	)		—		(22,102	)		(992	)		(4,155	)		(37,038	)
Balance as of January 1, 2018		25,700			372,701		49,970			20,238			14,598			483,207
Additions		27,828			—		—			1,009			24,680			53,517
Business combination		—			9,799		—			—			—			9,799
Write-offs		(15	)		—		—			—			(13,275	)		(13,290	)
Amortization in the year		(14,742	)		—		(8,426	)		(2,024	)		(3,126	)		(28,318	)

Balance as of December 31, 2018		38,771			382,500		41,544			19,223			22,877			504,915

Cost		56,127			382,500		72,072			22,239			31,308			564,246
Accumulated amortization		(17,356	)		—		(30,528	)		(3,016	)		(8,431	)		(59,331	)
Balance as of January 1, 2019		38,771			382,500		41,544			19,223			22,877			504,915
Additions		51,348			—		27,000			—			10,601			88,949
Write-offs		(2,283	)		—		—			(33	)		(466	)		(2,782	)
Amortization in the year		(21,526	)		—		(7,945	)		(2,702	)		(5,457	)		(37,630	)

Balance as of December 31, 2019		66,310			382,500		60,599			16,488			27,555			553,452

Cost		104,270			382,500		105,977			22,239			39,823			654,809
Accumulated amortization		(37,960	)		—		(45,378	)		(5,751	)		(12,268	)		(101,357	)