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11. INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2018

Intangible Assets Tables Abstract

Intangible assets

													Consolidated
	Goodwill		Customer relationships		Software		Trademarks and patents		Rights and licenses (*)		Others		Total
Balance at December 31, 2017	3,590,931		300,875		73,185		134,137		3,172,469		449		7,272,046
Cost	3,834,234		513,068		167,162		134,137		3,185,701		449		7,834,751
Accumulated amortization	(133,973)		(212,193)		(93,977)				(13,232)				(453,375)
Adjustment for accumulated recoverable value	(109,330)												(109,330)
Balance at December 31, 2017	3,590,931		300,875		73,185		134,137		3,172,469		449		7,272,046
Translation adjustment			34,107		148		15,872				58		50,185
Acquisitions and expenditures					1,216						984		2,200
Transfer of property, plant and equipment					(3,807)								(3,807)
Amortization (note 23)			(46,209)		(15,770)				(5,470)				(67,449)
Balance as of December 31, 2018	3,590,931		288,773		54,972		150,009		3,166,999		1,491		7,253,175
Cost	3,831,338		573,614		161,067		150,009		3,185,701		1,491		7,903,220
Accumulated amortization	(131,077)		(284,841)		(106,095)				(18,702)				(540,715)
Adjustment for accumulated recoverable value	(109,330)												(109,330)
Balance as of December 31, 2018	3,590,931		288,773		54,972		150,009		3,166,999		1,491		7,253,175

Estimated useful lives

			Consolidated
	12/31/2018		12/31/2017
Software	7		8
Customer relationships	13		13

Cash generating units

Consolidated

Goodwill

Trademarks

Total

Cash generating unity

Segment

12/31/2018

12/31/2017

12/31/2018

12/31/2017

12/31/2018

12/31/2017

Packaging (1)

Steel

158,748

158,748

158,748

158,748

Long Stel (2)

Steel

235,595

235,595

150,009

134,137

385,604

369,732

Minning (3)

Mining

3,196,588

3,196,588

3,196,588

3,196,588

3,590,931

3,590,931

150,009

134,137

3,740,940

3,725,068

Assumptions for impairment test

	Metal packaging	Flat steel (*)	Logistic (**)	Mining
Measurement of recoverable value	Discounted Cash Flow	Discounted Cash Flow	Discounted Cash Flow	Discounted Cash Flow
Cash flow projection	Until 2028 + perpetuity	Until 2028 + perpetuity	Until 2027	Until 2054
Gross Margin	Gross margin updated based on historical data, impacts of business restructuring and market trends	Gross margin updated based on historical data and market trends.	Estimated based on market studies for cargo captures and operational costs according market trends.	Reflects projection of costs due to the progress of the mining plan as well as startup and ramp up of projects . Price and exchange rate projected according industry reports.
Cost atualization	Cost based on historical data of each product and impacts of business restructuring	Updated costs based on historical data and market trends	Costs based on historical data and market trends	Updated costs based on historical data, progress of mining plan as well as startup and ramp up of projects
Growth Rate	Growth of 1.5% p.a in real terms updated by long term inflation of 4.0% p.a.	Growth of 1.4% p.a in real terms updated by long term inflation of 2.5% p.a. of the Euro zone	Growth of 1.5% p.a in real terms	Without growth in real terms updated only by long term inflation of 4.0% p.a.
Discount rate	For Metal packaging, flat steel and mining, these cash flows were considered using a discount rate after taxes between 5% and 13% p.a. in nominal terms. For the logistics segment, cash flows were discounted using a discount rate between 5.41% and 6.41% p.a. in real terms. The discount rate was based on the weighted average cost of capital ("WACC") that reflects the specific risk of each segment.