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v3.22.1

Commitments and contingencies (Tables) | 12 Months Ended
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Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract] |
Summary of debt covenant ratios | The ratios for the periods mentioned, were as follows:
|  | Fixed Charge Coverage Ratio |  | Leverage Ratio |
March 31, 2021 |  | 0.93 |  | 7.85 |
June 30, 2021 |  | 1.40 |  | 5.50 |
September 30, 2021 |  | 1.65 |  | 4.46 |
December 31, 2021 |  | 1.89 |  | 3.94 |
Schedule of line of credit | The following table presents information related to the standby letters of credit:
| Bank |  | Currency |  | Amount
| Itaú |  | $ |  | 15,000
| Credit Suisse (i) |  | $ |  | 45,000
| JPMorgan (i) |  | $ |  | 20,000
(i) Maintained through its wholly-owned subsidiary ADBV. These letters of credit contain a limited number of customary affirmative and negative covenants, including a maximum indebtedness to EBITDA ratio, as follows:
Bank |  | Ratio |  | Required Maximum Ratio |  | As of December 31, 2021
Itaú |  | Net indebtedness to EBITDA |  | 4.5 |  | 1.35
Credit Suisse (i) |  | Indebtedness to EBITDA |  | 4.0 |  | 1.42
JPMorgan (i) |  | Indebtedness to EBITDA |  | 4.5 |  | 1.42
(i) Maintained through its wholly-owned subsidiary ADBV.
Schedule of provision for contingencies | The breakdown of the provision for contingencies is as follows:
Description |  | Balance at beginning of period |  | Accruals, net |  | Settlements |  | Reclassifications and increase of judicial deposits |  | Translation |  | Balance at end of period
Year ended December 31, 2021: |  |  |  |  |  |  |  |  |  |  |  |
Tax contingencies in Brazil (i) |  | $ | 10,662 |  |  | $ | 7,472 |  |  | $ | — |  |  | $ | (517) |  |  | $ | (975) |  |  | $ | 16,642 |
Labor contingencies in Brazil (ii) |  | 14,514 |  |  | 11,319 |  |  | (12,080) |  |  | 522 |  |  | (1,005) |  |  | 13,270 |
Other (iii) |  | 9,907 |  |  | 3,764 |  |  | (1,708) |  |  | (136) |  |  | (1,061) |  |  | 10,766 |
Subtotal |  | 35,083 |  |  | 22,555 |  |  | (13,788) |  |  | (131) |  |  | (3,041) |  |  | 40,678 |
Judicial deposits (iv) |  | (8,135) |  |  | — |  |  | — |  |  | 1,030 |  |  | 513 |  |  | (6,592) |
Provision for contingencies |  | $ | 26,948 |  |  | $ | 22,555 |  |  | $ | (13,788) |  |  | $ | 899 |  |  | $ | (2,528) |  |  | $ | 34,086 |
Year ended December 31, 2020: |  |  |  |  |  |  |  |  |  |  |  |
Tax contingencies in Brazil (i) |  | $ | 10,595 |  |  | $ | 2,040 |  |  | $ | — |  |  | $ | 435 |  |  | $ | (2,408) |  |  | $ | 10,662 |
Labor contingencies in Brazil (ii) |  | 16,839 |  |  | 12,087 |  |  | (10,499) |  |  | — |  |  | (3,913) |  |  | 14,514 |
Other (iii) |  | 11,404 |  |  | 1,203 |  |  | (1,421) |  |  | — |  |  | (1,279) |  |  | 9,907 |
Subtotal |  | 38,838 |  |  | 15,330 |  |  | (11,920) |  |  | 435 |  |  | (7,600) |  |  | 35,083 |
Judicial deposits (iv) |  | (12,680) |  |  | — |  |  | — |  |  | 1,626 |  |  | 2,919 |  |  | (8,135) |
Provision for contingencies |  | $ | 26,158 |  |  | $ | 15,330 |  |  | $ | (11,920) |  |  | $ | 2,061 |  |  | $ | (4,681) |  |  | $ | 26,948 |
Year ended December 31, 2019: |  |  |  |  |  |  |  |  |  |  |  |
Tax contingencies in Brazil (i) |  | $ | 9,497 |  |  | $ | 1,455 |  |  | $ | — |  |  | $ | — |  |  | $ | (357) |  |  | $ | 10,595 |
Labor contingencies in Brazil (ii) |  | 21,108 |  |  | 12,916 |  |  | (16,068) |  |  | — |  |  | (1,117) |  |  | 16,839 |
Other (iii) |  | 11,462 |  |  | 3,070 |  |  | (1,700) |  |  | — |  |  | (1,428) |  |  | 11,404 |
Subtotal |  | 42,067 |  |  | 17,441 |  |  | (17,768) |  |  | — |  |  | (2,902) |  |  | 38,838 |
Judicial deposits (iv) |  | (13,558) |  |  | — |  |  | — |  |  | 354 |  |  | 524 |  |  | (12,680) |
Provision for contingencies |  | $ | 28,509 |  |  | $ | 17,441 |  |  | $ | (17,768) |  |  | $ | 354 |  |  | $ | (2,378) |  |  | $ | 26,158 |
(i)In 2021, it includes mainly INSS and CIDE. In 2020 and 2019, it includes mainly CIDE. (ii)It primarily relates to dismissals in the normal course of business. (iii)It relates to tax and labor contingencies in other countries and civil contingencies in all the countries. (iv)It primarily relates to judicial deposits the Company was required to make in connection with the proceedings in Brazil.

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- Definition Tabular disclosure of short-term or long-term contractual arrangements with lenders, including letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19(b),22(b)) -URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682 + Details
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