XML 74 R54.htm IDEA: XBRL DOCUMENT

13. INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2020

Intangible assets and goodwill [abstract]

Schedule of changes in intangible assets and goodwill

The intangible assets rollforward is set forth below:


	Average rate (1)		12.31.19		Additions		Disposals		Transfers (2)		Exchange rate variation		12.31.20
Cost
Goodwill			2,713,602		-		-		(6,970)		228,945		2,935,577
Trademarks			1,322,262		-		-		-		5,476		1,327,738
Non-compete agreement			99,229		413		(379)		-		7,899		107,162
Outgrowers relationship			14,604		-		(9,276)		-		-		5,328
Patents			6,305		-		(115)		-		15		6,205
Customer relationship			892,758		-		-		-		174,955		1,067,713
Software			523,615		73,423		(45,851)		97,117		8,951		657,255
Intangible in progress			12,151		95,111		-		(61,434)		226		46,054
			5,584,526		168,947		(55,621)		28,713		426,467		6,153,032

Amortization
Non-compete agreement	23.41%		(74,190)		(18,784)		379		-		(4,813)		(97,408)
Outgrowers relationship	12.75%		(12,744)		(1,030)		9,079		-		-		(4,695)
Patents	10.00%		(5,626)		(476)		115		-		(12)		(5,999)
Customer relationship	7.35%		(242,263)		(79,969)		-		-		(52,899)		(375,131)
Software	34.22%		(341,624)		(153,288)		43,718		9,562		(8,065)		(449,697)
			(676,447)		(253,547)		53,291		9,562		(65,789)		(932,930)
			4,908,079		(84,600)		(2,330)		38,275		360,678		5,220,102

(1)	Weighted average annual rate.

(2)	Related to transfer of R$6,970 to assets held for sales.


	Average rate (1)		12.31.18		Initial adoption IFRS 16		Additions		Disposals		Transfers		Exchange rate variation		12.31.19
Cost
Goodwill for future profitability			2,694,967		-		-		-		-		18,635		2,713,602
Trademarks			1,336,162		-		-		-		-		(13,900)		1,322,262
Non-compete agreement			90,012		-		8,105		-		-		1,112		99,229
Outgrowers relationship			15,022		-		-		(418)		-		-		14,604
Patents			6,066		-		-		-		235		4		6,305
Customer relationship			896,039		-		-		-		-		(3,281)		892,758
Software			491,830		61		38,259		(95,275)		87,576		1,164		523,615
Intangible in progress			-		-		47,422		-		(35,294)		23		12,151
			5,530,098		61		93,786		(95,693)		52,517		3,757		5,584,526

Amortization
Non-compete agreement	33.67%		(45,802)		-		(27,811)		-		-		(577)		(74,190)
Outgrowers relationship	13.02%		(11,552)		-		(1,546)		354		-		-		(12,744)
Patents	19.05%		(5,149)		-		(470)		-		-		(7)		(5,626)
Customer relationship	7.31%		(172,450)		-		(67,137)		-		-		(2,676)		(242,263)
Software	23.18%		(275,747)		-		(141,925)		77,027		(10)		(969)		(341,624)
			(510,700)		-		(238,889)		77,381		(10)		(4,229)		(676,447)
			5,019,398		61		(145,103)		(18,312)		52,507		(472)		4,908,079

(1)

Weighted average annual rate.

Schedule of pre tax rates

The discount rate used by Management to prepare discounted cash flows varied from 11.21% p.a. to 13.22% p.a. according to the CGU. The assumptions presented in the table below were also adopted:

		2021		2022		2023		2024		2025
Inflation Brazil		2.84%		3.50%		3.56%		3.55%		3.40%
Inflation - United States		2.59%		2.56%		2.53%		2.51%		2.48%
Exchange rate - BRL / USD		4.89		4.32		4.07		3.95		3.87

Schedule of variations in the EBIT margin and WACC

In addition to the analysis mentioned above, Management prepared a deterministic sensitivity analysis considering the variations in the Earnings Before Interest and Tax (“EBIT”) margin and in the nominal discount rate as presented below:

			Variations
Apreciation (devaluation)	1.0%		0.0%		(1.0%)
BRAZIL CGU
Discount rate	14.22%		13.22%		12.22%
Ebit Margin	13.76%		12.76%		11.76%

INTERNATIONAL CGU´s
Discount rate	12.21%		11.21%		10.21%
Ebit Margin	11.77%		10.77%		9.77%