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12. INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2020
Disclosure of detailed information about intangible assets [abstract]  
Schedule of intangible assets
                        Consolidated
  Goodwill   Customer relationships   Software   Trademarks
and
patents		   Rights and licenses (*)   Others   Total
Balance at December 31, 2019   3,606,156   246,139    53,859     153,103    3,170,960     1,564    7,231,781
 Cost  3,846,563    585,407   171,152   153,103     3,189,789   1,564     7,947,578
 Accumulated amortization   (131,077)     (339,268)     (117,293)          (18,829)        (606,467)
 Adjustment for accumulated recoverable value   (109,330)                          (109,330)
Balance at December 31, 2019   3,606,156   246,139    53,859     153,103    3,170,960     1,564    7,231,781
Effect of foreign exchange differences     94,998   584    62,429         638    158,649
Acquisitions and expenditures         1,837                 1,837
Transfer of property, plant and equipment         633         4,000         4,633
Amortization (note 26)     (63,096)   (11,248)       (5,611)         (79,955)
Others                       (151)    (151)
Balance at December 31, 2020   3,606,156   278,041    45,665     215,532    3,169,349     2,051    7,316,794
 Cost    3,846,563   823,540     182,059     215,532    3,193,787     2,051    8,263,532
 Accumulated amortization  (131,077)    (545,499)    (136,394)        (24,438)       (837,408)
 Adjustment for accumulated recoverable value  (109,330)                        (109,330)
Balance at December 31, 2020   3,606,156   278,041    45,665     215,532    3,169,349     2,051    7,316,794

 

                          Consolidated
  Goodwill   Customer relationships   Software   Trademarks
and
patents		   Rights and licenses (*)   Others   Total
Balance at 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 at December 31, 2018   3,590,931   288,773     54,972     150,009     3,166,999     1,491    7,253,175
Effect of foreign exchange differences   -     4,711     3   3,092   -    33     7,839
Acquisitions and expenditures   -   $0.00    1,387   -   -    40     1,427
Transfer of property, plant and equipment   -   $0.00    7,808   -   4,088       11,896
Amortization (note 26)   -   (47,345)   (10,657)   -    (127)         (58,129)
Goodwill - acquisition 50% CBSI (note 8.d)  15,225    -   -   -   -       15,225
Consolidated CBSI on November 30, 2019   -    -    346    2   -         348
Balance at December 31, 2019   3,606,156   246,139     53,859     153,103     3,170,960     1,564    7,231,781
 Cost    3,846,563   585,407   171,152     153,103     3,189,789     1,564    7,947,578
 Accumulated amortization  (131,077)    (339,268)    (117,293)   -     (18,829)     -   (606,467)
 Adjustment for accumulated recoverable value  (109,330)    -   -   -   -     -   (109,330)
Balance at December 31, 2019   3,606,156   246,139     53,859     153,103     3,170,960     1,564    7,231,781

 

(*) Composed mainly of mining rights. Amortization is based on production volume.
Schedule of estimated useful lives

The average useful life by nature is as follows (in years):

 

      Consolidated
  12/31/2020   12/31/2019
Software 9   9
Customer relationships 13   13
Schedule of cash generating units

The CGUs with intangible assets in this situation are shown below:

 

                            Consolidated
        Goodwill Trademarks Total
Cash generating of units   Segment   12/31/2020   12/31/2019   12/31/2020   12/31/2019   12/31/2020   12/31/2019
             
Packaging (1)    Steel      158,748     158,748             158,748     158,748
Long steel (2)    Steel      235,595     235,595     215,532   153,103     451,127     388,698
Mining (3)    Mining      3,196,588     3,196,588             3,196,588     3,196,588
Other Steel (4)    Steel     15,225    15,225            15,225    15,225
          3,606,156     3,606,156     215,532   153,103     3,821,688     3,759,259

 

(1) The goodwill of the Packaging cash-generating unit is shown net of impairment loss in the amount of R$109,330, recognized in 2011.

 

(2) The goodwill and trademark that are recorded in line item intangible assets at long steel segment, those transactions are derived from the business combination of Stahlwerk Thuringen GmbH ("SWT") and Gallardo Sections CSN. The assets mentioned are considered to have indefinite useful lives as they are expected to contribute indefinitely to the Company's cash flows.

 

(3) Refers to the goodwill based on expectations for future profitability, resulting from the acquisition of Namisa by CSN Mineração concluded in December 2015, which recoverability is tested annually.

 

(4) On November 29, 2019, CSN acquired the stake held by CKTR Brasil Serviços Ltda., corresponding to 50% of CBSI's shares, and now holds 100% of CBSI's share capital.
Schedule of assumptions for impairment test

The main assumptions used in the calculation of the value in use on December 31, 2020, are as follows:

 

  Packaging Mining Other Steelmaking Flat Steel Logistics
Measurement of recoverable value DCF DCF DCF DCF DCF
Cash Flow Projection Until 2030 + perpetuity Until 2064 Until 2030 + perpetuity Until 2030 + perpetuity by 2027
Gross margin Update of gross margin based on historical data, incorporation of the impacts of business restructuring and market trends. It reflects projection of costs due to the progress of the mining plan as well as startup and project ramp up. Prices and exchange rates projected according to sectoral reports. Update of gross margin based on historical data and market trends. Update gross margin based on historical data and market trends. Estimated based on market study to capture cargo and operating costs according to market trend studies
Update costs Update of costs based on historical data for each product and incorporation of the impacts of business restructuring. Update of costs based on historical data, progress of the mining plan as well as startup and project ramp up Update of costs based on historical data and market trends. Update of costs based on historical data and market trends. Study-based costs and market trends
Perpetuity growth rate No growth. Without perpetuity. No growth. Growth of 1.4% per year in real terms, updated by long-term inflation of 1.7% per year in the Eurozone. Without perpetuity.
Discount Rate For packaging, cash flow was discounted using a discount rate of around 8% per year in real terms. For mining, flat steel and other steel (CBSI), cash flows were discounted using a discount rate between 7% to 9.5% pa in nominal terms. For logistics, cash flow was discounted using a discount rate between 5.87% to 6.40% pa in real terms. The discount rate was based on the weighted average cost of capital (“WACC”) which reflects the specific risk of each segment.

 

(*) refer to the assets of the subsidiary Lusosider, located in Portugal. The discount rate was applied to the discounted cash flow prepared in Euros, the functional currency of this subsidiary. 

(**) refer to the assets of the subsidiary FTL - Ferrovia Transnordestina Logística SA