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Equity | 12 Months Ended
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Dec. 31, 2021
Equity [abstract] |
Equity | 26. Equity a. Share c apital On December 3 1, 20 2 1 t he subscribed and paid-in capital stock consists of 1,115,107,683 (1,115,005,712 as of December 31, 20 20) common shares with no par value and the issuance of preferred shares and participation certificates is prohibited. Each common share entitles its holder to one vote at Shareholders’ Meetings. As of December 3 1, 20 2 1 there were 50,374,275 common shares outstanding abroad in the form of ADRs (47,413,094 shares as of December 31, 20 20 and 46,518,315 shares as of December 31, 2019). b. Equity instrument granted The Company has a share-based incentive plan, which establishes the general terms and conditions for the concession of common shares issued by the Company held in treasury (see N ote 9.c). c. Treasury s hares The Company acquired its own shares at market prices, without capital reduction, to be held in treasury and to be subsequently disposed of or cancelled. As of December 3 1, 20 2 1, 23,756,393 common shares (24,739,626 as of December 31, 20 20 and 26,780,298 as of December 31, 2019) were held in the Company's treasury, acquired at an average cost of R$ 18.13 (R$ 19.77 as of December 31, 20 20 and R$ 18.12 as of December 31, 201 9). d. Capital r eserve The capital reserve reflects the gain on the transfer of shares at market price used in the Deferred Stock Plan granted to executives of the subsidiaries of the Company, as mentioned in Note 9.c. Because of Extrafarma’s associa tion in 2014 the Company recognized an increase in the capital reserves in the amount of R$ 498,812, due to the difference between the value attributable to share capital and the market value of the Ultrapar shares on the date of issu anc e, deducted by R$ 2,260 related to the incurred costs directly attributable to issuing new shares. Additionally, August 11, 2021, February 24, 2021, August 12, 2020 and on February 19, 2020, and, there was an increase in the reserve in the amount of R$ 448, R$ 1,371, R$ 1,691 and R$ 53,072, respectively, due to the partial exercise of the subscription warrants – indemnification (see note 25). e. Revaluation r eserve The revaluation reserve, recognized prior to the adoption of the international accounting standards (IFRS), reflects the revaluation of assets of subsidiaries and is based on depreciation, write-off, or disposal of the revalued assets of the subsidiaries, as well as the tax effects recognized by these subsidiaries. f. Profit r eserves f.1 Legal r eserve Under Brazilian Corporate Law, the Company is required to allocate 5% of net annual earnings to a legal reserve, until the balance reaches 20% of share capital. As of December 3 1, 2021, the legal reserve totaled R$ 791,083 (R$ 750,010 as of December 31, 2020). This reserve may be used to increase capital or to absorb losses but may not be distributed as dividends. f.2 Investments r eserve In compliance with Article 194 of the Brazilian Corporate Law and Article 54.b) of the Bylaws this reserve is aimed to protect the integrity of the Company’s assets and to supplement its capital stock, in order to allow new investments to be made. As provided in its Bylaws, the Company may allocate up to 50% of the annual net income, after deducting the legal reserve, to the investments reserve, up to the limit of 100% of the share capital. The investments reserve is free of distribution restrictions and totaled R$ 4,073,876 as of December 3 1, 20 2 1 (R$ 3,658,265 as of December 31, 20 20). g. Other comprehensive income g.1 Other reserves
(i) | Gains and losses on the hedging instruments of exchange rate related to firm commitment and highly probable transactions designated as cash flows hedges are recognized in equity as “other reserves”. Gains and losses are reclassified to initial cost of non-financial assets recognized in statements of profit or loss at the moment of paid off of the hedge instrument.
(ii) | The differences between the fair value of financial investments measured at fair value through other comprehensive income and the initial amount of financial investments plus the earned income and the foreign currency exchange variation are recognized in equity as other reserves. Gains and losses are reclassified to statements of profit or loss when the financial investment is settled.
(iii) | Actuarial g ains and losses relating to post-employment benefits, calculated based on a valuation conducted by an independent actuary, are recognized in equity under the title “other reserves”. Actuarial g ains and losses recorded in equity are not reclassified to profit or loss in subsequent periods.
(iv) | The Company also recognizes in this item the effect of changes in the non-controlling interest in subsidiaries that do not result in loss of control. This amount corresponds to the difference between the amount by which the non-controlling interest was adjusted and the fair value of the consideration received or paid and represents a transaction with shareholders.
Balance and changes in other reserves of the Company are as follows:
| Fair value of cash flow hedging instruments (i) |  |  | Fair value of financial instruments (ii) |  |  | Actuarial (loss) gain of post-employment benefits (iii) |  |  | Non-controlling shareholders interest change (iv) |  |  | Total |
Balance as of December 31, 2018 | (243,336 | ) |  | (273 | ) |  | (17,749 | ) |  | 197,369 |  |  | (63,989 | )
Changes in fair value of financial instruments | (76,479 | ) |  | 478 |  |  | - |  |  | - |  |  | (76,001 | )
IRPJ and CSLL on fair value | 23,683 |  |  | - |  |  | - |  |  | - |  |  | 23,683 |
Actuarial loss of post-employment benefits | - |  |  | - |  |  | (41,794 | ) |  | - |  |  | (41,794 | )
Income and social contribution taxes on actuarial losses | - |  |  | - |  |  | 11,784 |  |  | - |  |  | 11,784 |
Balance as of December 31, 2019 | (296,132 | ) |  | 205 |  |  | (47,759 | ) |  | 197,369 |  |  | (146,317 | )
Changes in fair value of financial instruments | (477,570 | ) |  | 64 |  |  | - |  |  | - |  |  | (477,506 | )
IRPJ and CSLL on fair value | 164,425 |  |  | - |  |  | - |  |  | - |  |  | 164,425 |
Actuarial loss of post-employment benefits | - |  |  | - |  |  | (7,725 | ) |  | - |  |  | (7,725 | )
Income and social contribution taxes on actuarial losses | - |  |  | - |  |  | 2,133 |  |  | - |  |  | 2,133 |
Balance as of December 31, 2020 | (609,277 | ) |  | 269 |  |  | (53,351 | ) |  | 197,369 |  |  | (464,990 | )
Changes in fair value of financial instruments | 12,036 |  |  | (672 | ) |  | - |  |  | - |  |  | 11,364 |
IRPJ and CSLL on fair value | (4,060 | ) |  | - |  |  | - |  |  | - |  |  | (4,060 | )
Actuarial gain of post-employment benefits of subsidiaries, net | - |  |  | - |  |  | 49,550 |  |  | - |  |  | 49,550 |
IRPJ and CSLL on actuarial gains | - |  |  | - |  |  | (14,002 | ) |  | - |  |  | (14,002 | )
Balance as of December 31, 2021 | (601,301 | ) |  | (403 | ) |  | (17,803 | ) |  | 197,369 |  |  | (422,138 | )
g.2 Cumulative t ranslation a djustments The change in exchange rates on assets, liabilities, and income of foreign subsidiaries that have functional currency other than the presentation currency of the Company and an independent management (see Note 2.t.1) and the exchange rate variation on notes i n the foreign market, net of income taxes (see Note 33.h.3) is directly recognized in the equity. This cumulat ive effect is reflected in profit or loss as a gain or loss only in case of disposal or write-off of the investment. Balance and changes in cumulative translation adjustments of the Company are as follows:
| 2021 |  |  | 2020 |  |  | 2019 |
Initial balance | 231,596 |  |  | 102,427 |  |  | 65,857 |
Currency translation adjustment of foreign subsidiaries | 97,113 |  |  | 202,277 |  |  | 46,330 |
Effect of foreign currency exchange rate variation on financial instruments | (36,461 | ) |  | (110,770 | ) |  | (14,788 | )
IRPJ and CSLL on foreign currency exchange rate variation on financial instruments | 12,397 |  |  | 37,662 |  |  | 5,028 |
Final balance | 304,645 |  |  | 231,596 |  |  | 102,427 |
h. Dividends and a llocation of n et i ncome The shareholders of the Company are entitled under the Bylaws to a minimum annual dividend of 50% of adjusted net income, after allocation of 5% to the legal reserve, calculated in accordance with Brazilian Corporate Law. The dividends and interest on equity in excess of the obligation established in the Bylaws are recognized in equity until the Shareholders approve them. The proposed dividends of 2020, as of December 31, 2020 totaled R$ 479,748 (R$ 0.44 – forty-four cents of Brazilian Real per share), were approved by the Board of Directors on February 24, 2021, and were paid from March 12, 2021. On August 11, 2021, the interim dividends were approved in the amount of R$ 218,074 (R$ 0.20 – twenty cents per share), paid on August, 2021.The proposed dividends payable of 2021 as of December 31, 202 1 totaled R$ 185,896 (R$ 0.17 – seventeen cents of Brazilian Real per share), were approved by the Board of Directors on February 22, 202 2, and will be paid from March 11, 202 2 onwards. The management proposal for the allocation of net income for 2021 and for distribution of dividends is as follow:
| 12/31/2021 |
Allocation of net income |  |
Net income for the year attributable to shareholders of Ultrapar | 850,463 |
Legal reserve (5% of the net income) | 42,523 |
Adjusted net income (basis for dividends) | 807,940 |
Minimum mandatory dividends for the year (50% of the adjusted net income) | 403,970 |
Total of distribution | 403,970 |
Interim dividends (R$ 0.20 per share of the Company) | (218,074 | )
Balance of proposed dividends (R$ 0.17 per share) | 185,896 |
Allocation of dividends |  |
Minimum mandatory dividends for the year (50% of the adjusted net income) | 185,896 |
Balance of proposed dividends (R$ 0.17 per share) | 185,896 |
Allocation of net income |  |
Legal reserve (5% of the net income) | 42,523 |
Minimum mandatory dividends for the year (50% of the adjusted net income) | 403,970 |
Statutory reserve | 403,970 |
Total distribution of net income for the year attributable to shareholders of Ultrapar | 850,463 |
Balances and changes in dividends payable are as follows:
Balance as of December 31, 2019 | 16,094 |
Provisions | 710,206 |
Payments | (284,767 | )
Balance as of December 31, 2020 | 442,133 |
Provisions | 478,366 |
Prescribed dividends | (11,816 | )
Payments | (705,753 | )
Reclassification to liabilities of subsidiaries held for sale | (70 | )
Balance as of December 31, 2021 | 202,860 |

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