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v3.21.1

Intangible Assets | 12 Months Ended
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Dec. 31, 2020
Text block [abstract] |
Intangible Assets | # 15. Intangible a ssets Balances and changes in intangible assets are as follows:
| Weighted average useful life (years) | Balance on 12/31/2019 |  |  | Additions |  |  | Amortization |  |  | Transfer (i) |  |  | Write-offs and disposals |  |  | Effect of foreign currency exchange rate variation |  |  | Balance on 12/31/2020 |
Cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill (a) | - | 1,525,088 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 1,525,088 |
Software (b) | 4 | 1,210,529 |  |  | 184,027 |  |  | - |  |  | 993 |  |  | (6,633 | ) |  | 6,130 |  |  | 1,395,046 |
Technology (c) | - | 32,617 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 32,617 |
Commercial property rights | - | 7,934 |  |  | - |  |  | - |  |  | - |  |  | (7,934 | ) |  | - |  |  | - |
Distribution rights | 10 | 133,599 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 133,599 |
Brands (d) | - | 122,504 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 14,458 |  |  | 136,962 |
Trademark rights (d) | 39 | 114,792 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 114,792 |
Others (e) | 10 | 44,900 |  |  | 1,040 |  |  | - |  |  | - |  |  | - |  |  | 4,758 |  |  | 50,698 |
Decarbonization credits (f) |  | - |  |  | 125,345 |  |  | - |  |  | (1,058 | ) |  | (124,287 | ) |  | - |  |  | - |
|  | 3,191,963 |  |  | 310,412 |  |  | - |  |  | (65 | ) |  | (138,854 | ) |  | 25,346 |  |  | 3,388,802 |
Accumulated amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Software |  | (648,861 | ) |  | - |  |  | (175,144 | ) |  | - |  |  | 3,375 |  |  | (4,394 | ) |  | (825,024 | )
Technology |  | (32,616 | ) |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (32,616 | )
Commercial property rights |  | (6,384 | ) |  | - |  |  | (85 | ) |  | - |  |  | 6,469 |  |  | - |  |  | - |
Distribution rights |  | (108,932 | ) |  | - |  |  | (4,394 | ) |  | - |  |  | - |  |  | - |  |  | (113,326 | )
Trademark rights |  | (6,119 | ) |  | - |  |  | (2,937 | ) |  | - |  |  | - |  |  | - |  |  | (9,056 | )
Others |  | (32,713 | ) |  | - |  |  | (121 | ) |  | - |  |  | - |  |  | (11 | ) |  | (32,845 | )
|  | (835,625 | ) |  | - |  |  | (182,681 | ) |  | - |  |  | 9,844 |  |  | (4,405 | ) |  | (1,012,867 | )
Provision for losses and impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill (a) |  | (593,280 | ) |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (593,280 | )
Commercial property rights |  | (465 | ) |  | - |  |  | - |  |  | - |  |  | 465 |  |  | - |  |  | - |
|  | (593,745 | ) |  | - |  |  | - |  |  | - |  |  | 465 |  |  | - |  |  | (593,280 | )
Net amount |  | 1,762,593 |  |  | 310,412 |  |  | (182,681 | ) |  | (65 | ) |  | (128,545 | ) |  | 20,941 |  |  | 1,782,655 |
(i) Refers to amounts transferred to PP&E and prepaid expenses.
| Weighted average useful life (years) | Balance on 12/31/2018 |  |  | Adoption IFRS 16 |  |  | Additions |  |  | Amortization |  |  | Transfer (i) |  |  | Write-offs and disposals |  |  | Effect of foreign currency exchange rate variation |  |  | Oxiteno Andina (*) |  |  | Balance on 12/31/2019 |
Cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill (a) | - | 1,525,088 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 1,525,088 |
Software (b) | 3 | 1,062,486 |  |  | - |  |  | 145,004 |  |  | - |  |  | 2,553 |  |  | (784 | ) |  | 1,551 |  |  | (281 | ) |  | 1,210,529 |
Technology (c) | 5 | 32,617 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 32,617 |
Commercial property rights | 10 | 64,032 |  |  | (56,114 | ) |  | 3,820 |  |  | - |  |  | (1,401 | ) |  | (2,403 | ) |  | - |  |  | - |  |  | 7,934 |
Distribution rights | 6 | 142,989 |  |  | - |  |  | 1,505 |  |  | - |  |  | (10,895 | ) |  | - |  |  | - |  |  | - |  |  | 133,599 |
Brands (d) | - | 120,571 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 1,933 |  |  | - |  |  | 122,504 |
Trademark rights (d) | 35 | 114,792 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 114,792 |
Others (e) | 10 | 43,281 |  |  | - |  |  | 1,668 |  |  | - |  |  | (355 | ) |  | - |  |  | 306 |  |  | - |  |  | 44,900 |
|  | 3,105,856 |  |  | (56,114 | ) |  | 151,997 |  |  | - |  |  | (10,098 | ) |  | (3,187 | ) |  | 3,790 |  |  | (281 | ) |  | 3,191,963 |
Accumulated amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Software |  | (537,438 | ) |  | - |  |  | - |  |  | (110,088 | ) |  | 13 |  |  | (611 | ) |  | (998 | ) |  | 261 |  |  | (648,861 | )
Technology |  | (32,613 | ) |  | - |  |  | - |  |  | (3 | ) |  | - |  |  | - |  |  | - |  |  | - |  |  | (32,616 | )
Commercial property rights |  | (23,931 | ) |  | 16,186 |  |  | - |  |  | (848 | ) |  | (669 | ) |  | 2,878 |  |  | - |  |  | - |  |  | (6,384 | )
Distribution rights |  | (106,597 | ) |  | - |  |  | - |  |  | (6,511 | ) |  | 4,176 |  |  | - |  |  | - |  |  | - |  |  | (108,932 | )
Trademark rights |  | (3,182 | ) |  | - |  |  | - |  |  | (2,937 | ) |  | - |  |  | - |  |  | - |  |  | - |  |  | (6,119 | )
Others |  | (32,740 | ) |  | - |  |  | - |  |  | (105 | ) |  | 136 |  |  | - |  |  | (4 | ) |  | - |  |  | (32,713 | )
|  | (736,501 | ) |  | 16,186 |  |  | - |  |  | (120,492 | ) |  | 3,656 |  |  | 2,267 |  |  | (1,002 | ) |  | 261 |  |  | (835,625 | )
Provision for losses and impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill (a) |  | - |  |  | - |  |  | (593,280 | ) |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (593,280 | )
Commercial property rights |  | - |  |  | - |  |  | (465 | ) |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (465 | )
|  | - |  |  | - |  |  | (593,745 | ) |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (593,745 | )
Net amount |  | 2,369,355 |  |  | (39,928 | ) |  | (441,748 | ) |  | (120,492 | ) |  | (6,442 | ) |  | (920 | ) |  | 2,788 |  |  | (20 | ) |  | 1,762,593 |
(i) Refers to amounts transferred to PP&E and right-of-use assets. (*) Refers to the asset write-offs of Oxiteno Andina (s ee Note 3.b.6).
| Weighted average useful life (years) | Balance on 12/31/2017 |  |  | Additions |  |  | Amortization |  |  | Transfer (i) |  |  | Write-offs and disposals |  |  | Effect of foreign currency exchange rate variation |  |  | Balance acquisition TEAS (ii) |  |  | Balance on 12/31/2018 |
Cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill (a) | - | 1,524,291 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 797 |  |  | 1,525,088 |
Software (b) | 5 | 853,079 |  |  | 223,964 |  |  | - |  |  | (1,258 | ) |  | (15,401 | ) |  | 2,053 |  |  | 49 |  |  | 1,062,486 |
Technology (c) | 5 | 32,617 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 32,617 |
Commercial property rights (d) | 10 | 55,069 |  |  | 11,117 |  |  | - |  |  | - |  |  | (2,154 | ) |  | - |  |  | - |  |  | 64,032 |
Distribution rights | 8 | 142,669 |  |  | 690 |  |  | - |  |  | (350 | ) |  | - |  |  | (20 | ) |  | - |  |  | 142,989 |
Brands (e) | - | 113,543 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 7,028 |  |  | - |  |  | 120,571 |
Trademark rights (e) | 39 | 114,792 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 114,792 |
Others (f) | 10 | 40,514 |  |  | 1,822 |  |  | - |  |  | - |  |  | - |  |  | 945 |  |  | - |  |  | 43,281 |
|  | 2,876,574 |  |  | 237,593 |  |  | ‐ |  |  | (1,608 | ) |  | (17,555 | ) |  | 10,006 |  |  | 846 |  |  | 3,105,856 |
Accumulated amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Software |  | (456,799 | ) |  | - |  |  | (79,845 | ) |  | 59 |  |  | 28 |  |  | (832 | ) |  | (49 | ) |  | (537,438 | )
Technology |  | (32,541 | ) |  | - |  |  | (72 | ) |  | - |  |  | - |  |  | - |  |  | - |  |  | (32,613 | )
Commercial property rights |  | (21,292 | ) |  | - |  |  | (4,679 | ) |  | - |  |  | 2,040 |  |  | - |  |  | - |  |  | (23,931 | )
Distribution rights |  | (96,704 | ) |  | - |  |  | (10,018 | ) |  | 125 |  |  | - |  |  | - |  |  | - |  |  | (106,597 | )
Trademark rights |  | - |  |  | - |  |  | (3,182 | ) |  | - |  |  | - |  |  | - |  |  | - |  |  | (3,182 | )
Others |  | (31,196 | ) |  | - |  |  | (1,538 | ) |  | - |  |  | - |  |  | (6 | ) |  | - |  |  | (32,740 | )
|  | (638,532 | ) |  | ‐ |  |  | (99,334 | ) |  | 184 |  |  | 2,068 |  |  | (838 | ) |  | (49 | ) |  | (736,501 | )
Net amount |  | 2,238,042 |  |  | 237,593 |  |  | (99,334 | ) |  | (1,424 | ) |  | (15,487 | ) |  | 9,168 |  |  | 797 |  |  | 2,369,355 |
(i) Refers to amounts transferred to PP&E. (ii) See Note 3.c. The amortization expenses were recognized in the financial statements as shown below:
| 2020 |  | 2019 |  | 2018
Inventories and cost of products and services sold | 9,575 |  | 11,183 |  | 15,044
Selling and marketing | 7,825 |  | 3,872 |  | 8,920
General and administrative | 165,281 |  | 105,437 |  | 75,370
| 182,681 |  | 120,492 |  | 99,334
a. Goodwill The balance of the goodwill is tested annually for impairment and is represented by the following acquisitions:
| Segment | 12/31/2020 |  |  | 12/31/2019 |
Goodwill on the acquisition of: |  |  |  |  |  |
Extrafarma | Extrafarma | 661,553 |  |  | 661,553 |
Extrafarma – impairment | Extrafarma | (593,280 | ) |  | (593,280 | )
Extrafarma – net | Extrafarma | 68,273 |  |  | 68,273 |
Ipiranga (1) | Ipiranga | 276,724 |  |  | 276,724 |
União Terminais | Ultracargo | 211,089 |  |  | 211,089 |
Texaco | Ipiranga | 177,759 |  |  | 177,759 |
Iconic (CBLSA) | Ipiranga | 69,807 |  |  | 69,807 |
Oxiteno Uruguay | Oxiteno | 44,856 |  |  | 44,856 |
Temmar | Ultracargo | 43,781 |  |  | 43,781 |
DNP | Ipiranga | 24,736 |  |  | 24,736 |
Repsol | Ultragaz | 13,403 |  |  | 13,403 |
TEAS | Ultracargo | 797 |  |  | 797 |
Others | Oxiteno | 583 |  |  | 583 |
|  | 931,808 |  |  | 931,808 |
(1) Including R$ 246,163 at Ultrapar. On December 31, 20 20, the Company tested the balances of goodwill shown in the table above for impairment. The determination of value in use involves assumptions, judgments, and estimates of cash flows, such as growth rates of revenues, costs and expenses, estimates of investments and working capital, and discount rates. The assumptions about growth projections and future cash flows are based on the Company’s business plan of its operating segments, as well as comparable market data, and represent management’s best estimate of the economic conditions that will exist over the economic life of the various CGUs, to which goodwill is related. The main key-assumptions used by the Company to calculate the value in use are described below: Period of evaluation: t he evaluation of the value in use is calculated for a period of five years (exce p t the Extrafarma segment), after which the Company calculate d the perpetuity, considering the possibility of carrying the business on indefinitely. For the Extrafarma segment, a period of ten years was used due to a four-year period to maturity of new stores were considered. Discount and real growth rates: o n December 31, 20 20, t he discount and real growth rates used to extrapolate the projections ranged from 8.5% to 11.0% and from 0% to 1% p.a., respectively, depending on the CGU analyzed. Revenue from sales and services, costs and expenses, and gross margin considers the budget prepared for 202 1 and the long-term strategic plan prepared by management and approved by the Board of Directors. The goodwill impairment tests, and net assets of the Company and its subsidiaries did not result in the recognition of impairment. In the year ended December 31, 2019 recorded an impairment provision in the amount of R$ 593,280 for subsidiary Extrafarma (see Note 2.u). The Company assessed a sensitivity analysis of discount and growth rate of perpetuity, due to their significant impact on cash flows and value in use. An increase of 0.5 percentage points in the discount rate or a decrease of 0.5 percentage points in the growth rate of the perpetuity of the cash flow of each business segment would not result in the recognition of impairment. b. Software I ncludes user licenses and costs for the implementation of the various systems used by the Company and its subsidiaries: integrated management and control, financial management, foreign trade, industrial automation, operational and storage management, accounting information, and other systems. Also include expenses related to software in progress in the amount of R$ 35,718 on December 3 1, 2020 and R$ 56,472 on December 31, 2019. c. Technology The subsidiaries Oxiteno S.A. and Oleoquímica recognize as technology certain rights of use held by them. Such licenses include the production of ethylene oxide, ethylene glycols, ethanolamines, glycol ethers, ethoxylates, solvents, fatty acids from vegetable oils, fatty alcohols, and specialty chemicals, which are products that are supplied to various industries. d. Brands and t rademark rights Brands are represented by the acquisition cost of the ‘am/pm’ brand in Brazil and of the Extrafarma brand, acquired in the business combination, and Chevron and Texaco trademark rights. e. Other intangible s R efer s mainly to the loyalty program “Clube Extrafarma”. f. Decarboni z ation credits The decarbonization credits (“CBIO”) acquired are recorded at acquisition cost and are retired in the year to fulfillment the individual target set by the National Agency of Petroleum, Natural Gas and Biofuels (“ANP”).

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- Definition The entire disclosure for intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 38 -IssueDate 2019-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=38&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IAS38_g118-128_TI -URIDate 2019-03-27 + Details
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- Definition Text block [abstract] + References No definition available. + Details
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