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Commitments and contingencies (Tables)

12 Months Ended

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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