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LEASES
 12 Months Ended
Dec. 31, 2021
LEASES

 

17.LEASES

The Company is lessee in several lease agreements for forest lands, offices, distribution centers, outgrowers, vehicles, among others. Some contracts have a renewal option for an additional period at the end of the agreement, established by contractual amendments. Automatic renewals or renewals for undetermined periods are not allowed.

The contract clauses mentioned, with respect to renewal, readjustment and purchase option, are contracted according to market practices. In addition, there are no clauses of contingent payments or restrictions on dividends distribution, payments of interest on shareholders’ equity or obtaining debt.

17.1.Right-of-use assets

The right-of-use assets as set forth below are part of the balances of property, plant and equipment and intangible assets (notes 12 and 13).

  Average rate (1)   12.31.20   Additions   Disposals   Transfers   Business combination (note 1.2)   Exchange rate variation   12.31.21
Cost                              
Land                48,661               3,761             (2,503)         90,549                         -          4,926             145,394
Buildings            2,861,916           532,728            (88,723)        (90,549)                  6,252          2,001          3,223,625
Machinery and equipment              112,593             98,353            (98,918)              596                  4,527             261             117,412
Vehicles              344,918             46,707            (29,186)             (596)                     851          7,285             369,979
Software                74,582               5,213                  (64)                  -                         -                 -              79,731
             3,442,670           686,762          (219,394)                  -                11,630        14,473          3,936,141
                               
Depreciation                              
Land 9.03%             (13,526)            (12,030)               1,533        (11,954)                         -            (462)             (36,439)
Buildings 21.29%           (914,816)          (535,838)             59,332         11,954                         -         (4,600)        (1,383,968)
Machinery and equipment 57.13%           (107,316)            (64,228)             98,673             (338)                         -            (176)             (73,385)
Vehicles 28.83%           (101,495)          (102,320)             17,699              338                         -         (4,039)           (189,817)
Software 42.22%             (33,048)            (28,209)                   64                  -                         -                 -             (61,193)
           (1,170,201)          (742,625)           177,301                  -                         -         (9,277)        (1,744,802)
             2,272,469            (55,863)            (42,093)                  -                11,630          5,196          2,191,339
(1)Weighted average annual rate.
  Average rate (1)   12.31.19   Additions   Disposals Transfers     Exchange rate variation   12.31.20
Cost                          
Land               22,790               5,900                (961)       20,751                    181              48,661
Buildings          2,615,883           287,451            (86,557)        (2,487)               47,626          2,861,916
Machinery and equipment             115,173               5,518             (8,289)                -                    191             112,593
Vehicles             207,443           165,699            (54,260)                -               26,036             344,918
Software               55,705             72,766            (35,625)      (18,264)                        -              74,582
           3,016,994           537,334          (185,692)                -               74,034          3,442,670
                           
Depreciation                          
Land 16.32%             (5,086)             (6,861)                  813        (1,799)                  (593)             (13,526)
Buildings 29.11%          (512,836)          (464,159)             85,042        (6,765)              (16,098)           (914,816)
Machinery and equipment 42.48%            (96,958)            (17,865)               7,610                -                  (103)           (107,316)
Vehicles 26.39%            (57,357)            (71,768)             41,024                -              (13,394)           (101,495)
Software 45.21%            (44,815)            (32,422)             35,625         8,564                        -             (33,048)
             (717,052)          (593,075)           170,114                -              (30,188)        (1,170,201)
           2,299,942            (55,741)            (15,578)                -               43,846          2,272,469
(1)Weighted average annual rate.

 

 

17.2.Lease liabilities

  WAM (1)   12.31.20   Additions   Payments   Interest paid   Interest accrued   Disposals   Transfers   Business combination (note 1.2)   Exchange rate variation   12.31.21
Land     4.6             37,868           3,761             (6,890)           (9,063)               9,063         (1,160)        82,851                        -          9,863           126,293
Buildings     1.9        2,195,407       532,728          (507,479)       (120,193)           186,165       (92,461)       (82,851)                 8,805       (24,746)        2,095,375
Machinery and equipment     0.9              3,773         98,353           (62,357)           (3,764)               3,764             (35)                 -                 4,998             486             45,218
Vehicles     1.8           256,423         46,707           (99,944)         (17,577)             17,577         (1,680)                 -                    940         (9,752)           192,694
Software     1.5             43,210           5,213           (28,757)           (2,306)               2,306                 -                 -                        -                 -             19,666
           2,536,681       686,762          (705,427)       (152,903)           218,875       (95,336)                 -               14,743       (24,149)        2,479,246
                                           
Current             383,162                                           471,956
Non-current          2,153,519                                        2,007,290
(1)Weighted average maturity in years.
  WAM (1)   12.31.19   Additions   Payments   Interest paid   Interest accrued   Disposals   Transfers   Exchange rate variation   12.31.20
Land     4.7             20,355           5,900             (5,819)           (4,716)               4,716         (1,729)         18,811                     350             37,868
Buildings     3.4        2,227,026       310,204          (425,594)         (99,426)           170,763            (762)       (18,238)                 31,434        2,195,407
Machinery and equipment     1.8             25,687           5,518           (26,776)         (13,285)             13,285            (755)                 8                       91              3,773
Vehicles     2.2           156,975       165,699           (64,674)         (15,231)             15,231       (14,155)            (581)                 13,159           256,423
Software     1.6              1,137         72,767           (30,693)           (3,967)               3,966                  -                  -                         -             43,210
           2,431,180       560,088          (553,556)       (136,625)           207,961       (17,401)                  -                 45,034        2,536,681
                                       
Current             376,628                                       383,162
Non-current          2,054,552                                    2,153,519
(1)Weighted average maturity in years.

 

17.3.Lease liabilities maturity schedule

The maturity schedule of the minimum required future payments is presented below:

  12.31.21
Current          471,956
Non-current        2,007,290
2023          479,323
2024          347,096
2025          262,399
2026          186,268
2027 onwards          732,204
         2,479,246

 

 

17.4.Incremental borrowing rate

The Company uses nominal incremental borrowing rates to measure its lease liabilities. The nominal and real interest rates are presented below:

    12.31.21   12.31.20
Contract Terms   Nominal rate % p.a.   Real rate % p.a.   Nominal rate % p.a.   Real rate % p.a.
1 year   5.34%   0.86%   5.69%   1.05%
2 years   5.24%   1.02%   5.96%   2.61%
3 years   6.83%   2.60%   6.80%   2.53%
4 years   8.49%   4.41%   8.50%   4.56%
5 years   9.69%   4.85%   8.98%   4.40%
6 years   10.61%   5.15%   -   -
7 years   11.18%   10.56%   -   -
8 years   -   -   10.47%   5.71%
9 years   -   -   10.75%   5.97%
10 years   -   -   11.39%   6.64%
12 years   9.85%   5.55%   -   -
13 years   -   -   11.68%   7.38%
14 years   -   -   11.84%   7.13%
16 years   12.44%   6.70%   -   -
17 years   13.12%   6.77%   -   -
18 years   13.01%   6.70%   -   -
20 years   12.95%   7.07%   13.26%   9.00%

 

 

The nominal rates presented above as of December 31, 2021 refer to the incremental borrowing rates used in contracts recognized during the year ended December 31, 2021 and the rates as of December 31, 2020 refer to the rates used in contracts recognized during the year ended December 31, 2020.

 

17.5.Amounts recognized in the statement of income

The amounts directly recognized in the statement of income presented below relate to items exempt of recognition: low-value assets, short-term leases and leases with variable payments.

    12.31.21   12.31.20   12.31.19
Variable payments not included in the lease liabilities            282,732            300,949            222,096
Expenses related to short-term leases            171,733            162,313            226,010
Expenses related to low-value assets                4,681                3,531                4,890
Amounts recognized in the statement of income            459,146            466,793            452,996