XML 140 R20.htm IDEA: XBRL DOCUMENT
v3.20.1

Right to Use Assets and Leases payable | 12 Months Ended
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Dec. 31, 2019
Presentation of leases for lessee [abstract] |
Right to use assets and leases payable | 13. Right to Use Assets and Leases payable Some of the subsidiaries of the Company have real estate leases, substantially related to: (i) Ipiranga: fuel stations and distribution center; (ii) Extrafarma: pharmacies and distribution center; (iii) Ultragaz: points of sale and bottling base; (iv) Ultracargo: port areas; and (v) Oxiteno: industrial plant. Some subsidiaries also have lease agreements relating to vehicles. a. Right to Use Assets
|  | Weighted average useful life (years) |  |  | Adoption IFRS 16 |  |  | Additions and remeasurement |  |  | Write-offs |  |  | Transfer |  |  | Effect of foreign currency exchange rate variation |  |  | Amortization |  |  | Balance on 12/31/2019 |
Cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate |  |  | 7 |  |  |  | 1,636,330 |  |  |  | 308,622 |  |  |  | (55,605 | ) |  |  | 98,043 |  |  |  | 80,930 |  |  |  | — |  |  |  | 2,068,320 |
Port area (*) |  |  | — |  |  |  | — |  |  |  | 68,007 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 68,007 |
Other |  |  | 4 |  |  |  | 95,097 |  |  |  | 26,235 |  |  |  | (1,981 | ) |  |  | 27,847 |  |  |  | 4,272 |  |  |  | — |  |  |  | 151,470 |
|  |  |  |  |  |  | 1,731,427 |  |  |  | 402,864 |  |  |  | (57,586 | ) |  |  | 125,890 |  |  |  | 85,202 |  |  |  | — |  |  |  | 2,287,797 |
Accumulated amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate |  |  |  |  |  |  | — |  |  |  | — |  |  |  | 6,682 |  |  |  | — |  |  |  | 36 |  |  |  | (262,750 | ) |  |  | (256,032 | )
Port area |  |  |  |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0 |
Other |  |  |  |  |  |  | — |  |  |  | — |  |  |  | 442 |  |  |  | (14,068 | ) |  |  | 81 |  |  |  | (37,308 | ) |  |  | (50,853 | )
|  |  |  |  |  |  | — |  |  |  | — |  |  |  | 7,124 |  |  |  | (14,068 | ) |  |  | 117 |  |  |  | (300,058 | ) |  |  | (306,885 | )
Net amount |  |  |  |  |  |  | 1,731,427 |  |  |  | 402,864 |  |  |  | (50,462 | ) |  |  | 111,822 |  |  |  | 85,319 |  |  |  | (300,058 | ) |  |  | 1,980,912 |
(*) | Refers to the port concession grants (area port lease), of which R$ 68,007 was paid by subsidiaries of the Company until the 4 th quarter of 2019 (see Note 35.c).
The amortization expenses were recognized in the financial statements as shown below:
|  | 2019 |  |  | 2018 |  |  | 2017 |
Inventories and cost of products and services sold |  |  | 48,134 |  |  |  | 15,044 |  |  |  | 2,165 |
Selling and marketing |  |  | 244,974 |  |  |  | 8,920 |  |  |  | 11,689 |
General and administrative |  |  | 6,950 |  |  |  | 75,370 |  |  |  | 57,369 |
|  |  | 300,058 |  |  |  | 99,334 |  |  |  | 71,223 |
b. Leases Payable The changes in leases payable are shown below:
Balance as of December 31, 2018 |  |  | 46,066 |
Adoption IFRS 16 |  |  | 1,363,803 |
Interest accrued |  |  | 128,996 |
Payments |  |  | (321,716 | )
Additions and remeasurement |  |  | 334,857 |
Write-offs |  |  | (52,129 | )
Effect of foreign currency exchange rate variation |  |  | 88,796 |
Balance as of December 31, 2019 |  |  | 1,588,673 |
Current |  |  | 206,396 |
Non-current |  |  | 1,382,277 |
The future disbursements (installments) assumed under leases contracts are presented below:
|  | 12/31/2019 |
Up to 1 year |  |  | 309,977 |
From 1 to 2 years |  |  | 508,976 |
From 2 to 3 years |  |  | 395,743 |
From 3 to 4 years |  |  | 316,682 |
From 4 to 5 years |  |  | 192,017 |
More than 5 years |  |  | 320,357 |
Total |  |  | 2,043,752 |
The contracts related to the leases payable are substantially indexed by the IGP-M (General Market Price Index is a measure of Brazilian inflation, calculated by the Getúlio Vargas Foundation). c. Lease Contracts of Low Amount Assets Subsidiaries Cia. Ultragaz, Bahiana, Tequimar, Serma, and Oxiteno S.A. have operating lease contracts for the use of IT equipment. These contracts have terms from 36 to 48 months. The subsidiaries have the option to purchase the assets at a price equal to the fair market price on the date of option, and management does not intend to exercise such option. The future disbursements (installments), assumed under these contracts, amount approximately to:
|  | Up to 1 year |  |  | Between 1 and 5 years |  |  | More than 5 years |  |  | Total |
12/31/2019 |  |  | 3,474 |  |  |  | 6,028 |  |  |  | 0 |  |  |  | 9,502 |
The expense recognized in 2019 was R$ 11,400 (R$ 11,386 in 2018).

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- Definition The entire disclosure for leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 16 -IssueDate 2019-01-01 -Section Presentation -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=16&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IFRS16_g47-50_TI -URIDate 2019-03-27 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 16 -IssueDate 2019-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=16&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IFRS16_g51-60_TI -URIDate 2019-03-27 + Details
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